<SEC-DOCUMENT>0001206774-13-001692.txt : 20130501
<SEC-HEADER>0001206774-13-001692.hdr.sgml : 20130501
<ACCEPTANCE-DATETIME>20130501121551
ACCESSION NUMBER:		0001206774-13-001692
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20130501
FILED AS OF DATE:		20130501
DATE AS OF CHANGE:		20130501

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Ballard Power Systems Inc.
		CENTRAL INDEX KEY:			0001453015
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRICAL INDUSTRIAL APPARATUS [3620]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			Z4
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-53543
		FILM NUMBER:		13801571

	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>6-K
<SEQUENCE>1
<FILENAME>ballard_6k.htm
<DESCRIPTION>CURRENT REPORT OF FOREIGN ISSUER
<TEXT>

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<P align=center><B><FONT face="Arial" size=2>UNITED
STATES<BR></FONT></B><B><FONT face="Arial" size=2>SECURITIES AND EXCHANGE
COMMISSION<BR>Washington, D.C. 20549</FONT></B></P>
<P align=center><B><FONT face="Arial" size=5>FORM 6-K</FONT></B></P>
<P align=center><FONT face="Arial" size=2>REPORT OF FOREIGN PRIVATE
ISSUER<BR>PURSUANT TO RULE 13a-16 OR 15d-16<BR>UNDER THE SECURITIES EXCHANGE ACT
OF 1934</FONT></P>
<P align=center><B><FONT face="Arial" size=2>May 1, 2013</FONT></B></P>
<P align=center><FONT face="Arial" size=2>Commission File Number:
</FONT><B><FONT face="Arial" size=2>000-53543</FONT></B></P>
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  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="100%"><B><FONT face="Arial" size=5>Ballard Power Systems Inc.</FONT></B></TD></TR>
  <TR>
    <TD width="100%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" width="100%"><FONT face="Arial" size=2>Canada</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap style="text-align: center" width="100%"><FONT face="Arial" size=2>(Jurisdiction of incorporation or
      organization)</FONT></TD></TR>
  <TR>
    <TD width="100%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="text-align: center" width="100%"><FONT face="Arial" size=2>9000 Glenlyon Parkway</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="text-align: center" width="100%"><FONT face="Arial" size=2>Burnaby, BC</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="text-align: center" width="100%"><FONT face="Arial" size=2>V5J 5J8</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" width="100%"><FONT face="Arial" size=2>Canada</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="text-align: center" width="100%"><FONT face="Arial" size=2>(Address of principal executive
      office)</FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form
40-F: </FONT><FONT face=Wingdings size=2>&#168;</FONT><FONT face="Arial" size=2>
Form 20-F </FONT><FONT face=Wingdings size=2>x</FONT><FONT face="Arial" size=2> Form 40-F</FONT></P>
<P align=justify><FONT face="Arial" size=2>Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(1): </FONT><FONT face=Wingdings size=2>&#168;</FONT></P>
<P align=justify><FONT face="Arial" size=2>Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T
Rule 101(b)(7): </FONT><FONT face=Wingdings size=2>&#168;</FONT></P>
<div style="text-align: justify"><FONT face="Arial" size=2>Indicate by check mark whether the
registrant by furnishing the information contained in this Form is also thereby
furnishing the information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934: </FONT><FONT face=Wingdings size=2>&#168;</FONT></div>

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    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="100%">&nbsp;</TD></TR></TABLE><BR>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Arial" size=2>SIGNATURES</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly
authorized.</FONT></P>
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    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face="Arial" size=2>Ballard Power Systems
      Inc.</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=4>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face="Arial" size=2>Date: May 1, 2013</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>/s/ Tony Guglielmin</FONT></TD>
    <TD noWrap align=left width="47%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>Name:&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face="Arial" size=2>Tony
    Guglielmin</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>Title:</FONT></TD>
    <TD noWrap align=left width="48%" colSpan=2><FONT face="Arial" size=2>Chief Financial
      Officer</FONT></TD></TR></TABLE><BR>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Arial" size=2>EXHIBIT INDEX</FONT></B></P>
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    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=2>Exhibit No.</FONT></B></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=2>Description</FONT></B></TD>
    <TD noWrap align=left width="97%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>99.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="98%" bgColor=#c0c0c0 colSpan=2><FONT face="Arial" size=2>Ballard Power Systems First Quarter 2013 Financial
      Statements</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>99.2</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="98%" colSpan=2><FONT face="Arial" size=2>Ballard Power Systems
      First Quarter 2013 Management's Discussion and
  Analysis</FONT></TD></TR></TABLE><BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit99-1.htm
<DESCRIPTION>BALLARD POWER SYSTEMS FIRST QUARTER 2013 FINANCIAL STATEMENTS
<TEXT>

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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>
  <TR vAlign=bottom>
    <TD noWrap align=left width="25%">&nbsp;</TD>
    <TD noWrap align=left width="60%"><FONT style="FONT-FAMILY: arial" size=2>Condensed Consolidated Interim 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><FONT face=Arial size=2>Three months ended March 31, 2013 and
      2012</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%">
      <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><BR>
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<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>Unaudited
</FONT><I><FONT face="Arial" size=1>(Expressed in thousands of U.S. dollars)
</FONT></I></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="3%" colSpan=3><B><FONT face=Arial size=2>March 31,</FONT></B></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="3%" colSpan=3><FONT face=Arial size=2>December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>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="3%" colSpan=3><B><FONT face=Arial size=2>2013</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=3><FONT face=Arial size=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Assets</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>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Current 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="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="91%"><FONT face=Arial size=2>Cash and cash
      equivalents</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>9</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>23,348</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>9,770</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=2>Short-term investments</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>9</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><B><FONT face=Arial size=2>8,913</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>12,068</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=2>Trade and other
      receivables</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%"><B><FONT face=Arial size=2>21,668</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="1%"><FONT face=Arial size=2>16,374</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=2>Inventories</FONT></TD>
    <TD noWrap align=right width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>10,954</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>11,277</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=2>Prepaid expenses
      and other current assets</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"><B><FONT face=Arial size=2>1,177</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="1%"><FONT face=Arial size=2>1,011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>66,060</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>50,500</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#ffffff><FONT face=Arial size=2>Assets classified as held for sale</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>5</FONT></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="1%" bgColor=#ffffff><B><FONT face=Arial size=2>-</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=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="1%" bgColor=#ffffff><FONT face=Arial size=2>10,798</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="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Total current 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>66,060</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>61,298</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Property, plant and equipment</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>23,145</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>24,316</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=2>Intangible
      assets</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>7</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>3,887</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="1%"><FONT face=Arial size=2>4,194</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=2>Goodwill</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>36,291</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>36,291</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=2>Investments</FONT></TD>
    <TD noWrap align=right width="1%"><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="1%"><B><FONT face=Arial size=2>667</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="1%"><FONT face=Arial size=2>667</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=2>Long-term trade receivables</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>219</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>594</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=2>Other long-term
      assets</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"><B><FONT face=Arial size=2>183</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="1%"><FONT face=Arial size=2>187</FONT></TD>
    <TD style="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=2>Total assets</FONT></TD>
    <TD noWrap align=left width="1%" 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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>130,452</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>127,547</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Liabilities</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>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Current liabilities:</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=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="91%"><FONT face=Arial size=2>Bank operating
      line</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>9</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>4,777</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>9,358</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=2>Trade and other payables</FONT></TD>
    <TD noWrap align=right width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>16,022</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>12,215</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=2>Deferred
      revenue</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%"><B><FONT face=Arial size=2>4,970</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="1%"><FONT face=Arial size=2>3,705</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=2>Provisions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>8,845</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>9,423</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=2>Finance lease
      liability</FONT></TD>
    <TD noWrap align=right width="1%"><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="1%"><B><FONT face=Arial size=2>1,033</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="1%"><FONT face=Arial size=2>1,043</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=2>Convertible debenture</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>12</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>-</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>2,924</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="91%">&nbsp;</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%"><B><FONT face=Arial size=2>35,647</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="1%"><FONT face=Arial size=2>38,668</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=2>Liabilities classified as held for sale</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>5</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>-</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>1,423</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="91%"><FONT face=Arial size=2>Total current
      liabilities</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%"><B><FONT face=Arial size=2>35,647</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="1%"><FONT face=Arial size=2>40,091</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Finance lease liability</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>9</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><B><FONT face=Arial size=2>12,478</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>13,011</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=2>Deferred
      gain</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%"><B><FONT face=Arial size=2>5,078</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="1%"><FONT face=Arial size=2>5,193</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=2>Provisions</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>4,999</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>5,089</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=2>Convertible
      debenture</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>12</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>3,545</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="1%"><FONT face=Arial size=2>-</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=2>Employee future benefits</FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>6,111</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>6,161</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="91%"><FONT face=Arial size=2>Total
      liabilities</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%"><B><FONT face=Arial size=2>67,858</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="1%"><FONT face=Arial size=2>69,545</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Equity:</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=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="91%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Share capital</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>13</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>852,624</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="1%"><FONT face=Arial size=2>845,630</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=2>&nbsp;&nbsp;&nbsp;&nbsp; Treasury shares</FONT></TD>
    <TD noWrap align=right width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(146</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>(313</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="91%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Contributed surplus</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>13</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>295,332</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="1%"><FONT face=Arial size=2>291,184</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=2>&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(1,082,053</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>(1,074,181</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="91%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency reserve</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"><B><FONT face=Arial size=2>246</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="1%"><FONT face=Arial size=2>92</FONT></TD>
    <TD style="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=2>Total equity attributable to equity holders</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>66,003</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>62,412</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=2>&nbsp;&nbsp;&nbsp;&nbsp; Dantherm Power A/S non-controlling
      interests</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>8</FONT></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="1%"><B><FONT face=Arial size=2>(3,409</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>(4,410</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Total equity</FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>62,594</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>58,002</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="91%"><FONT face=Arial size=2>Total
      liabilities and equity</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=Arial size=2>130,452</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>127,547</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>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"><FONT face="Arial" size=1>Approved on behalf of the
      Board:</FONT></TD>
    <TD noWrap align=left width="84%"></TD></TR>
  <TR>
    <TD width="99%" colSpan=2>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"><FONT face="Arial" size=1>&#147;Ed Kilroy&#148;</FONT></TD>
    <TD noWrap align=left width="84%"><FONT face="Arial" size=1>&#147;Ian Bourne&#148;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="15%"><FONT face="Arial" size=1>Director</FONT></TD>
    <TD noWrap align=left width="84%"><FONT face="Arial" size=1>Director</FONT></TD></TR></TABLE><BR>
<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 Profit
or Loss and Other Comprehensive Income<BR></FONT><FONT face="Arial" size=1>Unaudited </FONT><I><FONT face="Arial" size=1>(</FONT></I><I><FONT face="Arial" size=1>Expressed in thousands of U.S. dollars, except per share
amounts and number of shares) </FONT></I></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="91%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="7%" colSpan=7><FONT face=Arial size=2>Three
      months ended March 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%"></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%"><FONT face=Arial size=2>Note</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%"></TD>
    <TD noWrap align=right width="3%" colSpan=3><B><FONT face=Arial size=2>2013</FONT></B></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="3%" colSpan=3><FONT face=Arial size=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="100%" colSpan=10><FONT face=Arial size=1>(restated &#150; note 5)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>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="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="91%"><FONT face=Arial size=2>Product and
      service revenues</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>12,335</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>10,079</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=2>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 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=2>9,397</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>7,966</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="91%"><FONT face=Arial size=2>Gross
      margin</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"><B><FONT face=Arial size=2>2,938</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="1%"><FONT face=Arial size=2>2,113</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Operating expenses:</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>
    <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="91%"><FONT face=Arial size=2>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="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>5,296</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="1%"><FONT face=Arial size=2>5,907</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=2>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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>2,995</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>2,766</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=2>Sales and
      marketing</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"><B><FONT face=Arial size=2>1,936</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="1%"><FONT face=Arial size=2>2,099</FONT></TD>
    <TD style="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=2>Total operating expenses</FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>10,227</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>10,772</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Results from operating activities</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(7,289</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>(8,659</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="91%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Finance income (loss) and other</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>14</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>(679</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>376</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=2>&nbsp;&nbsp;&nbsp;&nbsp; Finance expense</FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(427</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>(414</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="91%"><FONT face=Arial size=2>Net finance
      expense</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%"><B><FONT face=Arial size=2>(1,106</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>(38</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Gain (loss) on sale of property, plant and equipment</FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>25</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(49</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="91%"><B><FONT face=Arial size=2>Net loss from
      continuing operations for period</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="1%"><B><FONT face=Arial size=2>(8,370</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>(8,746</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="91%">&nbsp;</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%"></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%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Net earnings (loss) from discontinued operations for
    period</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>5</FONT></TD>
    <TD noWrap align=right 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><B><FONT face=Arial size=2>(42</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>217</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="91%"><B><FONT face=Arial size=2>Net loss for
      period</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>(8,412</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(8,529</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Other comprehensive income (loss):</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>
    <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="91%"><B><FONT face=Arial size=2>Items that
      may be reclassified subsequently to profit or loss:</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=left width="1%"></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=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Foreign currency translation differences</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>270</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(139</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="91%"><FONT face=Arial size=2>Net gain on
      hedge of forward contracts</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"><B><FONT face=Arial size=2>-</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="1%"><FONT face=Arial size=2>108</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Other comprehensive income (loss) for the period</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>270</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(31</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>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Comprehensive loss for period</FONT></B></TD>
    <TD noWrap align=left width="1%" 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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(8,142</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(8,560</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Net loss attributable to:</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>
    <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="91%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Ballard Power Systems Inc. from continuing
      operations</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>(7,936</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(8,660</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Ballard Power Systems Inc. from
      discontinued operations</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(42</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>217</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=2>&nbsp;&nbsp;&nbsp;&nbsp; Dantherm Power A/S non-controlling
      interests</FONT></TD>
    <TD noWrap align=left width="1%"></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="1%"><B><FONT face=Arial size=2>(434</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>(86</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>Net loss for period</FONT></TD>
    <TD noWrap align=left width="1%" 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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(8,412</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(8,529</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Comprehensive loss attributable to:</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>
    <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="91%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Ballard Power Systems Inc.</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>(7,824</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(8,407</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>&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="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><B><FONT face=Arial size=2>(318</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>(153</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="91%"><FONT face=Arial size=2>Comprehensive
      loss for period</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=Arial size=2>(8,142</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>(8,560</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Basic and diluted loss per share attributable to Ballard Power
      Systems Inc.</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>
    <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="91%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Continuing operations</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>(0.09</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(0.10</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Discontinued operations</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><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>0.00</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>0.00</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=2>&nbsp;&nbsp;&nbsp;&nbsp; Net loss for period</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>(0.09</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(0.10</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Weighted average number of common shares outstanding</FONT></B></TD>
    <TD noWrap align=left width="1%" 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></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>92,233,498</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=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=2>84,566,475</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>See accompanying notes to
consolidated financial statements.</FONT><FONT face="Arial" size=2>
</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>Unaudited
</FONT><I><FONT face="Arial" size=1>(Expressed in thousands of U.S. dollars
except number of shares)</FONT></I></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="67%"></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="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="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="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="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="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="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="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="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="2%"></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="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=right width="1%">&nbsp;</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="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="67%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; text-align: center" noWrap width="22%" colSpan=19><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="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=right width="1%">&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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;</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;&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" 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="4%" colSpan=2><FONT face="Arial" size=1>Non-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></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 noWrap align=left width="67%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=1>Number of</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=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=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Contributed</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Accumulated</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%" 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="4%" colSpan=2><FONT face="Arial" size=1>controlling</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>Total</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="67%"></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>shares</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>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=right width="1%">&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="2%" colSpan=2><FONT face="Arial" size=1>surplus</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>deficit</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="1%">&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" 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="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=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=1>equity</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" bgColor=#c0c0c0><FONT face="Arial" size=1>Balance December
      31, 2012</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>91,801,477</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>845,630</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(313</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;$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>291,184</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>(1,074,181</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=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=1>92</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=1>(4,410</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=1>58,002</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%"><B><FONT face="Arial" size=1>Net
      loss</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right 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="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>-</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="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=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>(7,978</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%"><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=right width="3%"><B><FONT face="Arial" size=1>(434</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%"><STRONG><FONT face=Arial size=1>)</FONT></STRONG></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1></FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>(8,412</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="67%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Additional investment in
      Dantherm</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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></TD>
    <TD noWrap align=right 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></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="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></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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></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 style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>1,319</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="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>1,319</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Power A/S (note 8)</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>
    <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="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>
    <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 style="BORDER-LEFT: #000000 1pt dashed" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%"><B><FONT face="Arial" size=1>Net
      Offering proceeds (note 13)</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>7,275,000</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>6,794</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=left width="1%"></TD>
    <TD noWrap align=right 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=left width="1%"></TD>
    <TD noWrap align=right 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=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 style="BORDER-LEFT: #000000 1pt dashed" 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="1%"><B><FONT face="Arial" size=1>6,794</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Proceeds on issuance of
      convertible</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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></TD>
    <TD noWrap align=right 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></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="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>4,000</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="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></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 style="BORDER-LEFT: #000000 1pt dashed" 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="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>4,000</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      promissory note (note 13)</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>
    <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="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>
    <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 style="BORDER-LEFT: #000000 1pt dashed" 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%"><B><FONT face="Arial" size=1>Purchase of treasury shares</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right 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="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>(2</FONT></B></TD>
    <TD noWrap align=left width="1%"><STRONG><FONT face=Arial size=1>)</FONT></STRONG></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=1></FONT></B></TD>
    <TD noWrap align=right 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=left width="1%"></TD>
    <TD noWrap align=right 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=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 style="BORDER-LEFT: #000000 1pt dashed" 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="1%"><B><FONT face="Arial" size=1>(2</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="67%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>RSUs redeemed (note 13)</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>98,156</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><B><FONT face="Arial" size=1>159</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>169</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="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(624</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></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>106</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="2%" 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=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="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>(190</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="67%"><B><FONT face="Arial" size=1>Options exercised</FONT></B></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>25,000</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>41</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=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face="Arial" size=1>(13</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="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=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 style="BORDER-LEFT: #000000 1pt dashed" 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="1%"><B><FONT face="Arial" size=1>28</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>Share distribution plan</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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></TD>
    <TD noWrap align=right 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></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="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>785</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="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></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 style="BORDER-LEFT: #000000 1pt dashed" 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="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>785</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%"><B><FONT face="Arial" size=1>Other comprehensive income:</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=left width="1%"></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=left width="3%"></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=left width="1%"></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=left width="1%"></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=left width="2%"></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="3%"></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="1%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Foreign currency translation for</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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></TD>
    <TD noWrap align=right 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></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="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></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right 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></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>154</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=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>116</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="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>270</FONT></B></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="67%" bgColor=#c0c0c0><B><FONT face="Arial" size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      foreign operations</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=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>
    <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="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>
    <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>
    <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="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed; 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-RIGHT: #000000 1pt dashed; 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>&nbsp;</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="67%"><B><FONT face="Arial" size=1>Balance, March 31, 2013</FONT></B></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%"><B><FONT face="Arial" size=1>99,199,633</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>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>852,624</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>(146</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><STRONG><FONT face=Arial size=1>)</FONT></STRONG></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;$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>295,332</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>(1,082,053</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=right 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>246</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>&nbsp;
    $</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><B><FONT face="Arial" size=1>(3,409</FONT></B></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><STRONG><FONT face=Arial size=1>)</FONT></STRONG></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=1>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face="Arial" size=1>62,594</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></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="65%"></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="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="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</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%">&nbsp;&nbsp;</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="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</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="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</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="5%"></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%">&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-LEFT: #000000 1pt dashed" noWrap align=right width="2%" 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=right width="1%">&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;</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="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="65%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="26%" colSpan=20><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="2%" 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=right width="1%">&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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></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="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="7%" colSpan=3><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="2%" colSpan=2><FONT face=Arial size=1>Non-</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></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 noWrap align=left width="65%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=1>Number
    of</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=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=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=1>Contributed</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=1>Accumulated</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="7%" colSpan=3><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="2%" colSpan=2><FONT face=Arial size=1>controlling</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=1>Total</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="65%"></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>shares</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>capital</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%" colSpan=2><FONT face=Arial size=1>shares</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=1>surplus</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=1>deficit</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%" colSpan=3><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="2%" colSpan=2><FONT face=Arial size=1>interests</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&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="2%" colSpan=2><FONT face=Arial size=1>equity</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=Arial size=1>Balance December 31, 2011</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>84,550,524</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>837,686</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=1>(515</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>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>289,219</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>(1,031,279</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=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=Arial size=1>209</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>(2,975</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>92,345</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=Arial size=1>Net
    loss</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=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></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="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=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=1>(8,443</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="5%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=1>(86</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="1%"><FONT face=Arial size=1>(8,529</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" 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="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>-</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</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></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=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=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" 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 style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" 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="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="65%"><FONT face=Arial size=1>RSUs
      redeemed</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=1>49,095</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>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>154</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>(355</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="1%"><FONT face=Arial size=1>41</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="5%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><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="1%"><FONT face=Arial size=1>(47</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=1>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" 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="1%" bgColor=#c0c0c0><FONT face=Arial size=1>12,501</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>23</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=1>(8</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></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=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" 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 style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" 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="1%" bgColor=#c0c0c0><FONT face=Arial size=1>15</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%"><FONT face=Arial size=1>Share
      distribution plan</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=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="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="1%"><FONT face=Arial size=1>850</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>-</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="5%"><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><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="1%"><FONT face=Arial size=1>850</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#c0c0c0><FONT face=Arial size=1>Other comprehensive income (loss):</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=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="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="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>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="65%" bgColor=#ffffff><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation
      for foreign</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>-</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="1%" bgColor=#ffffff><FONT face=Arial size=1>-</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=1>-</FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#ffffff><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" 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="1%" bgColor=#ffffff><FONT face=Arial size=1>-</FONT></TD>
    <TD noWrap align=left width="1%" 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="5%" bgColor=#ffffff><FONT face=Arial size=1>(72</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></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>(67</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>)</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="1%" bgColor=#ffffff><FONT face=Arial size=1>(139</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="65%" bgColor=#ffffff><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      operations</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" 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=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></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="65%" bgColor=#c0c0c0><FONT face=Arial size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on hedge of forward
      contracts</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>-</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>-</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=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=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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=Arial size=1>108</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-LEFT: #000000 1pt dashed; 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-RIGHT: #000000 1pt dashed; 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>108</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="65%" bgColor=#ffffff><FONT face=Arial size=1>Balance, March 31, 2012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>84,612,120</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right 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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>837,822</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT face=Arial size=1>(363</FONT></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=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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>289,706</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>(1,039,681</FONT></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="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="5%" bgColor=#ffffff><FONT face=Arial size=1>245</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=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-LEFT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>&nbsp; $</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>(3,128</FONT></TD>
    <TD style="BORDER-RIGHT: #000000 1pt dashed; BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=1>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=1>84,601</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=2>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>
<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></FONT><FONT face="Arial" size=1>Unaudited </FONT><I><FONT face="Arial" size=1>(Expressed in thousands of U.S. dollars)</FONT></I><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="81%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="17%" colSpan=7><FONT face=Arial size=2>Three
      months ended March 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="81%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>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="8%" colSpan=3><B><FONT face=Arial size=2>2013</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="8%" colSpan=3><FONT face=Arial size=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Cash provided by (used for):</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="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><B><FONT face=Arial size=2>Operating
      activities:</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=left width="6%">&nbsp;</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=left width="6%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Net loss for the period</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><B><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(8,412</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=Arial size=2>(8,529</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="81%"><FONT face=Arial size=2>Adjustments
      for:</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=left width="6%">&nbsp;</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=left width="6%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compensatory shares</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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>915</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>955</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee future
    benefits</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="6%"><B><FONT face=Arial size=2>(50</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=Arial size=2>(60</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>&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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>1,275</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>1,594</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (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=left width="1%"></TD>
    <TD noWrap align=right width="6%"><B><FONT face=Arial size=2>(25</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=Arial size=2>50</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment loss on property,
      plant and equipment</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>50</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="6%" 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="81%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized gain on forward
      contracts</FONT></TD>
    <TD noWrap align=left width="1%"></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="6%"><B><FONT face=Arial size=2>-</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="6%"><FONT face=Arial size=2>(458</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(6,247</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>(6,448</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="81%" bgColor=#ffffff><FONT face=Arial size=2>Changes in non-cash working capital:</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="6%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="6%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Trade and other receivables</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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(5,030</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>(2,742</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="81%" bgColor=#ffffff><FONT face=Arial size=2>Inventories</FONT></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#ffffff><B><FONT face=Arial size=2>304</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#ffffff><FONT face=Arial size=2>(2,069</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="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Prepaid expenses and other current 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(162</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>(125</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="81%" bgColor=#ffffff><FONT face=Arial size=2>Net assets / liabilities classified as held for sale</FONT></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#ffffff><B><FONT face=Arial size=2>281</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#ffffff><FONT face=Arial size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Trade and other payables</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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>2,782</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>(3,299</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="81%" bgColor=#ffffff><FONT face=Arial size=2>Deferred revenue</FONT></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#ffffff><B><FONT face=Arial size=2>1,268</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#ffffff><FONT face=Arial size=2>(962</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="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Warranty provision</FONT></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(194</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>580</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="81%" bgColor=#ffffff>&nbsp; </TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#ffffff><B><FONT face=Arial size=2>(751</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=Arial size=2>)</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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#ffffff><FONT face=Arial size=2>(8,617</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Cash used by operating activities</FONT></TD>
    <TD noWrap align=left width="1%" 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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(6,998</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>(15,065</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>
    <TD width="100%" colSpan=10>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Investing activities:</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="6%" 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="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Net decrease in short-term investments</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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>3,155</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>11,278</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=Arial size=2>Additions to
      property, plant and equipment</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="6%"><B><FONT face=Arial size=2>(29</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=Arial size=2>(135</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>100</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>369</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=Arial size=2>Net proceeds
      from disposition of Material Products division</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>5</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><B><FONT face=Arial size=2>9,044</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="6%"><FONT face=Arial size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Net investments in associated companies</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>18</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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>-</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=Arial size=2>(44</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="81%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></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="6%"><B><FONT face=Arial size=2>12,270</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="6%"><FONT face=Arial size=2>11,468</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Financing activities:</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="6%" 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="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=Arial size=2>Purchase of
      treasury shares</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="6%"><B><FONT face=Arial size=2>(2</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=Arial size=2>(2</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Payment of finance lease liabilities</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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(251</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>(245</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="81%"><FONT face=Arial size=2>Net proceeds
      from bank operating line</FONT></TD>
    <TD noWrap align=right width="1%"><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="6%"><B><FONT face=Arial size=2>(4,386</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><FONT face=Arial size=2>4,890</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Net proceeds on issuance of share capital</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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>28</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>16</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=Arial size=2>Net Offering
      proceeds</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>13</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><B><FONT face=Arial size=2>6,794</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="6%"><FONT face=Arial size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Proceeds on issuance of share capital from Dantherm Power
    A/S</FONT></TD>
    <TD noWrap align=right width="1%" 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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>1,360</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="6%" 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="81%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; non-controlling
      interests</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=left width="6%" 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="6%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=Arial size=2>Proceeds on
      issuance of convertible promissory note</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>13</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="6%"><B><FONT face=Arial size=2>4,000</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="6%"><FONT face=Arial size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>Proceeds on issuance of convertible debenture from</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>12</FONT></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: 6%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><B><FONT face=Arial size=2>640</FONT></B></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: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 6%; background-color: #c0c0c0; border-bottom: Black 1pt solid"><FONT face=Arial size=2>403</FONT></TD>
    <TD NOWRAP STYLE="text-align: left; width: 1%; background-color: #c0c0c0; border-bottom: Black 1pt solid"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dantherm Power A/S
      non-controlling interests</FONT></TD>
    <TD noWrap align=left width="1%"></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="6%"><B><FONT face=Arial size=2>8,183</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="6%"><FONT face=Arial size=2>5,062</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=Arial size=2>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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>123</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>150</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="100%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Increase (decrease) in cash and cash equivalents</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="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>13,578</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="6%" bgColor=#c0c0c0><FONT face=Arial size=2>1,615</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><B><FONT face=Arial size=2>Cash and cash
      equivalents, beginning of period</FONT></B></TD>
    <TD noWrap align=left width="1%"></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="6%"><B><FONT face=Arial size=2>9,770</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="6%"><FONT face=Arial size=2>20,316</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Cash and cash equivalents, end of period</FONT></B></TD>
    <TD noWrap align=left width="1%" 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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><B><FONT face=Arial size=2>23,348</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="6%" bgColor=#c0c0c0><FONT face=Arial size=2>21,931</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>Supplemental disclosure of cash
flow information (note 16).<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER SYSTEMS
      INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="Arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><STRONG><FONT face=Arial size=2>1.</FONT></STRONG></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Reporting entity:
      </FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P 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></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P 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 condensed
      consolidated interim financial statements of the Corporation as at and for
      the three months ended March 31, 2012 comprise the Corporation and its
      subsidiaries. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><STRONG><FONT face=Arial size=2>2.</FONT></STRONG></TD>
    <TD width="100%"><STRONG><FONT face=Arial size=2>Basis of
      preparation:</FONT></STRONG></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(a)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Statement of compliance:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD WIDTH="100%" STYLE="text-align: justify"><FONT face="Arial" size=2>These condensed consolidated interim financial
      statements of the Corporation have been prepared in accordance with
      International Accounting Standard (&#147;IAS&#148;) 34 </FONT><I><FONT face="Arial" size=2>Interim Financial Reporting </FONT></I><FONT face="Arial" size=2>as issued by the International Accounting Standards
      Board (&#147;IASB&#148;), on a basis consistent with those followed in the most
      recent annual consolidated financial statements, except as described in
      note 3 below. As described in note 3, the Corporation has adopted new IFRS
      standards effective January 1, 2013. The condensed consolidated interim
      financial statements do not include all of the information required for
      full annual financial statements.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>The condensed consolidated interim financial
      statements were authorized for issue by the Audit Committee of the Board
      of Directors on April 29, 2013.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(b) </FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Basis of measurement:
      </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>The condensed consolidated
      interim financial statements have been prepared on the historical cost
      basis except for the following material items in the statement of
      financial position: </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <UL><LI>
        <P align=justify><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>Financial instruments classified as fair value
        through profit or loss and available-for-sale are measured at fair
        value;</FONT></P>
        </LI><LI>
        <P align=justify><FONT face="Arial" size=2>Derivative financial
        instruments are measured at fair value; and</FONT></P>
        </LI><LI>
        <P align=justify><FONT face="Arial" size=2>Employee future benefits
        liability is recognized as the net total of the present value of the
        defined benefit obligation, less the fair value of plan assets.
        </FONT></P></LI></UL></TD></TR></TABLE>
<P align=right><FONT face="Arial" size=1>6 </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 face="Arial" size=2><STRONG>BALLARD POWER SYSTEMS
      INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="Arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><STRONG><FONT face=Arial size=2>2.
      </FONT></STRONG></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Basis of preparation
      (cont&#146;d):</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(c)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Functional and presentation
      currency:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Arial" size=2>These condensed consolidated
      interim financial statements are presented in U.S. dollars, which is the
      Corporation&#146;s functional currency.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(d)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Use of
  estimates:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>The preparation of the
      condensed consolidated interim financial statements in conformity with
      International Financial Reporting Standards (&#147;IFRS&#148;) requires the
      Corporation&#146;s management to make estimates and assumptions that affect the
      application of accounting policies and the reported amounts of assets,
      liabilities, income and expenses. Actual results may differ from these
      estimates.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><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></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>Significant areas having
      estimation uncertainty include revenue recognition, asset impairment,
      warranty provision, inventory provision, employee future benefits, and
      income taxes. These estimates and judgments are discussed further in note
      4.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(e)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Going concern:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>These condensed consolidated
      interim financial statements have been prepared assuming the Corporation
      will continue as a going concern. The Corporation is required to assess
      its ability to continue as a going concern or whether substantial doubt
      exists as to the Corporation&#146;s ability to continue as going concern into
      the foreseeable future. While the Corporation believes that it has
      adequate liquidity in cash and working capital to finance its operations,
      there are material risks and uncertainties that cause substantial doubt as
      to the Corporation&#146;s ability to continue as a going concern. The
      Corporation&#146;s ability to continue as a going concern and realize its
      assets and discharge its liabilities and commitments in the normal course
      of business is dependent upon the Corporation having adequate liquidity
      and achieving profitable operations that are sustainable. There are
      various risks and uncertainties affecting the Corporation including, but
      not limited to, the market acceptance and rate of commercialization of the
      Corporation&#146;s products, the ability of the Corporation to successfully
      execute its business plan, and general global economic conditions, certain
      of which are beyond the Corporation&#146;s control.</FONT></TD></TR></TABLE>
<P align=right><FONT face="Arial" size=1>7</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 face="Arial" size=2><STRONG>BALLARD POWER SYSTEMS
      INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="Arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><STRONG><FONT face=Arial size=2>2.</FONT></STRONG></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><B><FONT face=Arial size=2>Basis of preparation (cont&#146;d):
      </FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(e)</FONT></TD>
    <TD width="100%" colSpan=2><FONT face=Arial size=2>Going concern
      (cont&#146;d):</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2><FONT face=Arial size=2>The Corporation&#146;s
      strategy to mitigate these risks and uncertainties is to execute a
      business plan aimed at continued focus on revenue growth, improving
      overall gross margins, and managing operating expenses and working capital
      requirements. Failure to implement this plan could have a material adverse
      effect on the Corporation&#146;s financial condition and or results of
      operations. These condensed consolidated interim financial statements do
      not include any adjustments or disclosures that would be required if
      assets are not realized and liabilities and commitments are not settled in
      the normal course of operations.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD><STRONG><FONT face=Arial size=2>3. </FONT></STRONG></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><B><FONT face=Arial size=2>Changes in accounting
      policies: </FONT></B></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=Arial size=2>The accompanying financial
      information reflects the same accounting policies and methods of
      application as the Corporation&#146;s consolidated financial statements for the
      year ended December 31, 2012, with the exception of the following new
      accounting standards that were issued by the IASB and adopted by the
      Corporation, effective January 1, 2013. Certain comparative figures have
      been reclassified to conform with the basis of presentation adopted in the
      current period.</FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(a)</FONT></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=Arial size=2>IFRS 10 &#150; </FONT><I><FONT face=Arial size=2>Consolidated Financial Statements: </FONT></I></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=Arial size=2>IFRS 10 </FONT><I><FONT face=Arial size=2>Consolidated Financial Statements</FONT></I><FONT face=Arial size=2> replaces SIC-12 </FONT><I><FONT face=Arial size=2>Consolidation &#150; Special Purpose Entities</FONT></I><FONT face=Arial size=2>, and certain parts of IAS 27 </FONT><I><FONT face=Arial size=2>Consolidated and Separate Financial Statements</FONT></I><FONT face=Arial size=2>. IFRS 10 uses control as the single basis for
      consolidation, irrespective of the nature of the investee, employing the
      following factors to identify control: </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="1%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;</FONT></TD>
    <TD width="99%"><FONT face=Arial size=2>power over the
      investee;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="99%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="1%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)</FONT></TD>
    <TD width="99%"><FONT face=Arial size=2>exposure or rights
      to variable returns from involvement with the investee;</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD width="1%"></TD>
    <TD width="99%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="1%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)</FONT></TD>
    <TD width="99%"><FONT face=Arial size=2>the ability to use
      power over the investee to affect the amount of the investor&#146;s
      returns.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD width="1%"></TD>
    <TD width="99%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=Arial size=2>The adoption of IFRS 10 does not
      change the Corporation&#146;s conclusions around control of its investees, and
      therefore no adjustments to previous accounting for investees are required
      in the consolidated financial statements. </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(b)</FONT></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=Arial size=2>IFRS 11 &#150; </FONT><I><FONT face=Arial size=2>Joint Arrangements:</FONT></I><FONT face=Arial size=2>
      </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=Arial size=2>IFRS 11 </FONT><I><FONT face=Arial size=2>Joint Arrangements</FONT></I><FONT face=Arial size=2>
      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>. IFRS 11 requires that
      joint ventures be accounted for using the equity method of accounting and
      eliminates the need for proportionate consolidation.</FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2>
      <P align=justify><FONT face=Arial size=2>The Corporation is not impacted
      by the adoption of IFRS 11, and no adjustments to the consolidated
      financial statements are required.
</FONT></P></TD></TR></TABLE>
<P align=right><FONT face="Arial" size=1>8 </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 face="Arial" size=2><STRONG>BALLARD POWER SYSTEMS
      INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="Arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><STRONG><FONT face=Arial size=2>3.
      </FONT></STRONG></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Changes in accounting
      policies (cont&#146;d): </FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(c)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>IFRS 13 &#150; </FONT><I><FONT face="Arial" size=2>Fair Value Measurements:</FONT></I></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>IFRS 13 </FONT><I><FONT face="Arial" size=2>Fair Value Measurement </FONT></I><FONT face="Arial" size=2>establishes a single framework for fair value
      measurement of financial and non-financial items. IFRS 13 defines fair
      value as 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 requires disclosure of certain
      information on fair value measurements.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>In accordance with IFRS 13,
      the Corporation has included additional fair value disclosures in its
      condensed consolidated interim financial statements.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(d)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Amendments to IAS 19 &#150;
      </FONT><I><FONT face="Arial" size=2>Employee Benefits:</FONT></I></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>The amendments to IAS 19
      significantly change the recognition and measurement of defined benefit
      pension expense and termination benefits, and enhance the disclosures for
      all employee benefits. Actuarial gains and losses are renamed
      &#147;remeasurements&#148; and are recognized immediately in other comprehensive
      income (&#147;OCI&#148;).</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>Remeasurements recognized in
      OCI are not 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 is computed based on the application of the
      discount rate to the net defined benefit asset or liability. The
      amendments to IAS 19 also impacts the presentation of pension expense as
      benefit cost is 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></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>The Corporation&#146;s previous
      accounting policy for employee benefits relating to the presentation of
      pension expense and the immediate recognition of actuarial gains and
      losses in OCI was predominantly consistent with the requirements in the
      new standard, and accordingly the Corporation does not expect any material
      adjustments to the consolidated financial statements as a result of the
      adoption of the new standard.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(e)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Amendments to IAS 1 &#150;
      </FONT><I><FONT face="Arial" size=2>Presentation of Financial
      Statements:</FONT></I></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>The amendments to IAS 1
      </FONT><I><FONT face="Arial" size=2>Presentation of Financial
      Statements </FONT></I><FONT face="Arial" size=2>require items of other
      comprehensive income and the corresponding tax expense to be grouped based
      on whether they will or will not be classified to the statement of
      earnings in the future.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>In accordance with the
      amendments to IAS 1, the Corporation has modified its statement of profit
      or loss and other comprehensive income.</FONT></TD></TR></TABLE>
<P align=right><FONT face="Arial" size=1>9 </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 face="Arial" size=2><STRONG>BALLARD POWER SYSTEMS
      INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="Arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD><STRONG><FONT face=Arial size=2>4.</FONT></STRONG></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Critical judgments in
      applying accounting policies and key sources of estimation uncertainty:
      </FONT></B></P></TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>The preparation of the
      condensed consolidated interim financial statements in conformity with
      IFRS requires the Corporation&#146;s management to make estimates and
      assumptions that affect the application of accounting policies and the
      reported amounts of assets, liabilities, income and expenses. Actual
      results may differ from these estimates.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><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></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><I><FONT face="Arial" size=2>Critical judgments in
      applying accounting policies:</FONT></I></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>Critical judgments that
      management has made in the process of applying the Corporation&#146;s
      accounting policies and that have the most significant effect on the
      amounts recognized in the consolidated financial statements is limited to
      management&#146;s assessment of the Corporation&#146;s ability to continue as a
      going concern (note 2(e)).</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>The Corporation&#146;s
      significant accounting policies are detailed in note 3 of the
      Corporation&#146;s consolidated financial statements for the year ended
      December 31, 2012, with the exception of the new accounting standards
      adopted by the Corporation effective January 1, 2013, detailed in note 3
      of these condensed consolidated interim financial statements.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><I><FONT face="Arial" size=2>Key sources of estimation
      uncertainty:</FONT></I></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>The following are key
      assumptions concerning the future and other key sources of estimation
      uncertainty that have significant risk of resulting in a material
      adjustment to the reported amount of assets, liabilities, income and
      expenses within the next fiscal year.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(a)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Revenue
    recognition:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><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></TD></TR></TABLE>
<P align=right><FONT face="Arial" size=1>10</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<!-- B -->
<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 face="Arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>4.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Critical judgments in
      applying accounting policies and key sources of estimation uncertainty
      (cont&#146;d):</FONT></B></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(b)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Asset
  impairment:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><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.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>The Corporation&#146;s most
      significant estimates and assumptions involve values associated with
      goodwill and intangible assets. These estimates and assumptions include
      those with respect to future cash inflows and outflows, discount rates,
      asset lives, and the determination of cash generating units. At least
      annually, the carrying value of goodwill and intangible assets 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. This review involves significant estimation
      uncertainty, which could affect the Corporation&#146;s future results if the
      current estimates of future performance and fair values
    change.</FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(c)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Warranty provision:
      </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <P 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></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(d)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Inventory provision:
      </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <P 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></TD></TR></TABLE>
<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER SYSTEMS
      INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>4.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Critical judgments in
      applying accounting policies and key sources of estimation uncertainty
      (cont&#146;d):</FONT></B></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(e)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Employee future
      benefits:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><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.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>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></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(f)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Income taxes:
  </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <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. Management reviews the deferred income tax assets at each reporting
      period and records adjustments to the extent that it is no longer probable
      that the related tax benefit will be realized. </FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD><STRONG><FONT face=Arial size=2>5.</FONT></STRONG></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Discontinued operations &#150;
      Disposition of Material Products division: </FONT></B></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>On January 31, 2013, the
      Corporation completed an agreement to sell substantially all of the assets
      of its Material Products division for gross cash proceeds of $10,500,000
      (on the delivery of net working capital of $3,700,000) and additional
      potential proceeds of up to $1,500,000. The additional proceeds of up to
      $1,500,000 are payable in 2014 and 2015, through a GDL product credit, if
      the former Material Products division attains certain financial results in
      2013. As the additional potential proceeds are contingent in nature, they
      are not recorded in the consolidated financial statements until actually
      realized. Excluding any potential contingent gain from the additional
      proceeds, net proceeds from the sale were approximately $9,044,000 after
      deducting for working capital adjustments, broker commissions and
      expenses, and legal and other expenses. The Material Products division has
      been classified and accounted for as discontinued
  operations.</FONT></P></TD></TR></TABLE>
<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top align=left width="1%"><STRONG><FONT face=Arial size=2>5.</FONT></STRONG></TD>
    <TD vAlign=top align=left width="99%">
      <P align=justify><B><FONT face="Arial" size=2>Discontinued operations &#150;
      Disposition of Material Products division (cont&#146;d): </FONT></B></P></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top align=left width="99%"><FONT face="Arial" size=2>&nbsp;</FONT></TD></TR>
  <TR>
    <TD vAlign=top align=left width="1%"></TD>
    <TD vAlign=top align=left width="99%">
      <P align=justify><FONT face="Arial" size=2>In 2012, impairment losses
      of $1,815,000 and $500,000 relating to goodwill and property, plant and
      equipment, respectively, were recognized based on a fair value less costs
      to sell assessment, which compared the segment&#146;s carrying value as of
      December 31, 2012 to the actual net proceeds received on disposition on
      January 31, 2013. During the three months ended March 31, 2013, an
      additional $50,000 of impairment losses was recognized against property,
      plant and equipment, which is included in the net loss from discontinued
      operations. </FONT></P></TD></TR></TABLE><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="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <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="3%" colSpan=2><FONT face="Arial" size=2>January
    31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=2>2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=2>Proceeds from disposition</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>10,500</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=2>Disposition costs</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=2>(1,456</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=2>Net disposed
      assets</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>(9,094</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="95%"><FONT face="Arial" size=2>Impairment loss on property,
      plant and equipment</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%"><FONT face="Arial" size=2>(50</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="99%"><FONT face="Arial" size=2>The following is a preliminary
      analysis of the disposed assets and
liabilities:</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 noWrap align=left width="1%"></TD>
    <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="3%" colSpan=2><FONT face="Arial" size=2>January
    31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=2>2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=2>Trade and other receivables</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>1,810</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=2>Inventories</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=2>2,692</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=2>Prepaid expenses and other current assets</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>39</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=2>Property, plant and equipment</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=2>5,739</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=2>Trade and
      other payables</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="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>(1,186</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="95%"><FONT face="Arial" size=2>Net disposed
assets</FONT></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="2%"><FONT face="Arial" size=2>9,094</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><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="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="99%"><FONT face="Arial" size=2>Net earnings (loss) from
      discontinued operations is comprised of the
following:</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 noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="93%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="5%" colSpan=5><FONT face="Arial" size=2>Three months ended
      March 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=2>2013</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=2>2012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>Product and service revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>867</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>3,466</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=2>Cost of product and service
      revenues</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=2>610</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=2>2,558</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>Gross
      margin</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=2>257</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=2>908</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR>
    <TD width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>Total operating expenses</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(240</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="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(654</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="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=2>Impairment 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=right width="1%"><FONT face="Arial" size=2>(50</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="1%"><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="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>Earnings (loss) before income taxes</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(33</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="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>254</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=2>Income tax expense</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=2>(9</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="1%"><FONT face="Arial" size=2>(37</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>Net earnings
      (loss) from discontinued operations</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(42</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>217</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<TABLE style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD align=left width="99%"><P align=justify><FONT face="Arial" size=2>The 2012 comparative figures
      in the consolidated statement of profit or loss and other comprehensive
      income have been reclassified in accordance with the classification and
      accounting of the Material Products division as discontinued operations.
      </FONT></P></TD></TR></TABLE>
<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>5.</FONT></B></TD>
    <TD width="100%"><P align=justify><FONT face="Arial" size=2><B>Discontinued operations &#150; Disposition of Material
      Products division (cont&#146;d): </B></font></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Net cash flows from
      discontinued operations is as follows: </FONT></P></TD></TR></TABLE><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="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="93%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="5%" colSpan=5><FONT face="Arial" size=2>Three months ended
      March 31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=2>2013</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=2>2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>Cash provided by operating activities</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>290</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>306</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=2>Cash used in investing activities</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><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="1%"><FONT face="Arial" size=2>(33</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>Cash
      provided (used in) financing activities</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=2>-</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=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="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%"><FONT face="Arial" size=2>Cash and cash equivalents
      provided by discontinued operations</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>290</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>273</FONT></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><B><FONT face="Arial" size=2>6.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Inventories:</FONT></B></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Arial" size=2>During the three months ended March 31, 2013, the
      write-down of inventories to net realizable value amounted to $124,000
      (2012 - $86,000). There were no reversals of previously recorded
      write-downs during the three months ended March 31, 2013 and 2012.
      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></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>7.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Intangible assets:</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>Amortization and impairment losses of fuel cell
      technology and development costs are allocated to research and product
      development expense. For the three months ended March 31, 2013,
      amortization of $307,000 (2012 - $175,000) was recorded. There were no
      impairment losses recorded during the three months ended March 31, 2013
      and 2012.</FONT></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD><STRONG><FONT face=Arial size=2>8. </FONT></STRONG></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Investment in Dantherm
      Power A/S</FONT></B></P></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>On March 31, 2013, Beijing
      Azure Hydrogen Energy Science and Technology Corporation (&#147;Azure&#148;)
      acquired a 10% ownership interest in the Corporation&#146;s subsidiary,
      Dantherm Power A/S (&#147;Dantherm Power&#148;), in which Dantherm Power received
      proceeds of $1,360,000 in exchange for the issuance of Dantherm Power
      share capital. Following the transaction, the Corporation&#146;s interest in
      Dantherm Power was reduced from 57% to 52%. The remaining 38% interest is
      held by Dantherm A/S. The Corporation continues to consolidate the results
      of Dantherm Power, as control was obtained upon its acquisition on January
      18, 2010.</FONT></P></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>In addition to the
      $1,360,000 investment, Dantherm Power received an additional $640,000 from
      Azure in exchange for convertible debentures (note 12) with terms
      consistent with those previously issued to the non-controlling partner,
      Dantherm A/S. </FONT></P></TD></TR></TABLE>
<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER SYSTEMS
      INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>9.</FONT></B></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Bank
      facilities:</FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>The Corporation has a demand
      revolving facility (&#147;Bank Operating Line&#148;) in which an operating line of
      credit of up to CDN $10,000,000 is 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 the three months ended March 31, 2013, the Corporation
      was advanced $56,000 (2012 &#150; $5,102,000)</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>under the bank operating
      line of which $4,442,000 (2012 &#150; $212,000) was repaid during the period.
      At March 31, 2013, $4,777,000 (December 31, 2012 &#150; $9,358,000) was
      outstanding on the Bank Operating Line. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P 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.
      Interest is charged on outstanding amounts at the bank&#146;s prime rate per
      annum and is repayable on demand by the bank. At March 31, 2013,
      $2,335,000 was outstanding on the Leasing Facility which is included in
      the finance lease liability. The remaining $11,176,000 finance lease
      liability relates to the lease of the Corporation&#146;s head office building.
      </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P 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></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><STRONG><FONT face=Arial size=2>10.</FONT></STRONG></TD>
    <TD width="100%"><STRONG><FONT face=Arial size=2>Trade and
      other payables:</FONT></STRONG></TD></TR></TABLE><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="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="91%"></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="2%" colSpan=2><FONT face="Arial" size=2>March
31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD nowrap style="BORDER-TOP: #000000 1.5pt solid" align=right width="4%" colSpan=2><FONT face="Arial" size=2>December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"></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="1%"><FONT face="Arial" size=2>2013</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>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face="Arial" size=2>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=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>6,971</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>5,256</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="91%"><FONT face="Arial" size=2>Compensation payable</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=2>3,245</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>2,046</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="91%" bgColor=#c0c0c0><FONT face="Arial" size=2>Other liabilities</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=2>5,604</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>4,669</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"><FONT face="Arial" size=2>Taxes 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=2>202</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>244</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="91%" 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=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>16,022</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>12,215</FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>11.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Provisions:</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR></TABLE>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="92%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=2>March
31,</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" align=right width="1%"></TD>
    <TD nowrap style="BORDER-TOP: #000000 1.5pt solid" align=right width="3%" colSpan=2><FONT face="Arial" size=2>December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="92%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face="Arial" size=2>2013</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=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=2>Restructuring charges</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>541</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>922</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%"><FONT face="Arial" size=2>Warranty</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>8,304</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="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>8,501</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=2>Current</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>8,845</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>9,423</FONT></TD></TR>
  <TR>
    <TD width="1%" bgColor=#ffffff></TD>
    <TD width="99%" colSpan=6>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=2>Decommissioning liabilities</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>4,999</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>5,089</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%"><FONT face="Arial" size=2>Non-current</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>4,999</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>5,089</FONT></TD></TR></TABLE><BR>
<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER SYSTEMS
      INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>12.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Convertible debenture</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>The convertible debenture
      relates to financing to Dantherm Power by the non-controlling partners and
      is redeemable at the option of Dantherm Power subject to approval by all
      convertible debenture holders on or after January 1, 2013 including
      interest which is accrued at 12%. Prior to the maturity date, the
      convertible debenture holders may elect to convert all or part of the
      debenture into shares of Dantherm Power. During the quarter, an extension
      of the maturity date from December 31, 2013 to December 31, 2014 was
      approved by the subscribers in accordance with the terms of the
      convertible debenture. The convertible debentures were issued with a
      conversion price of either DKK 3.40 or DKK 0.14. This conversion feature
      was determined to have a nominal value. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>During the three months
      ended March 31, 2013, an additional $640,000 of convertible debt financing
      was advanced to Dantherm Power by Azure, a new non-controlling partner
      (note 8). The issued convertible debenture notes totaling approximately
      DKK 3,733,000 were comprised of a note for DKK 2,400,000 with a conversion
      price of DKK 3.40 and a note for DKK 1,333,000 with a conversion price of
      DKK 0.14 and have a maturity date of March 31, 2014. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>At March 31, 2013, the
      convertible debt outstanding was $3,545,000, which includes $492,000 of
      interest payable.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><STRONG><FONT face=Arial size=2>13.</FONT></STRONG></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Equity:
  </FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(a)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Share capital:
  </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>On March 26, 2013, the
      Corporation closed an underwritten offering (&#147;Offering&#148;) of 7,275,000 for
      gross Offering proceeds of approximately $8,003,000. Each unit in the
      Offering is comprised of one common share priced at $1.10 and one warrant
      to purchase one common share priced at $1.50. The common shares and
      warrants are immediately separable and issued separately, and no units
      will be issued or certificated. The warrants are certificated, exercisable
      immediately upon issuance, and have a 5 year term. As the shares and
      warrants are both classified as equity instruments, the common shares and
      warrants have been accounted for as a single equity instrument.
    </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Net proceeds from the
      Offering is approximately $6,794,000 after deducting for underwriting
      discounts, commissions, and other offering expenses, as follows:
      </FONT></P></TD></TR></TABLE><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="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="96%" bgColor=#c0c0c0><FONT face="Arial" size=2>Gross
      Offering proceeds (7,275,000 shares at $1.10 per share)</FONT></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&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=2>8,003</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="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="96%"><FONT face="Arial" size=2>Less: Underwriting expenses</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>(642</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="96%" bgColor=#c0c0c0><FONT face="Arial" size=2>Less: Other
      financing expenses</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=2>(567</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="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="96%"><FONT face="Arial" size=2>Net Offering
    proceeds</FONT></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="1%"><FONT face="Arial" size=2>6,794</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR></TABLE><BR>
<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>13.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Equity
      (cont&#146;d):</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(a)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Share capital (cont&#146;d):
      </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>The Corporation has granted
      the underwriter a 30 day option to purchase up to an additional, 1,091,250
      units on the same terms and conditions, solely to cover over-allotments,
      if any. As of April 29, 2013, the over-allotment option has not been
      exercised. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>At March 31, 2013,
      99,199,633 common shares and 7,275,000 warrants are issued and
      outstanding. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(b)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Convertible promissory note:
      </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>On March 28, 2013, the
      Corporation completed an agreement with Anglo American Platinum Limited
      (&#147;Anglo&#148;), under which Anglo invested $4,000,000 in the Corporation
      through its Platinum Group Metals Development Fund, to support continued
      commercial advancement of the Corporation&#146;s fuel cell products in target
      market applications. The investment takes the form of a 5 year
      non-interest bearing convertible promissory note (&#147;Note&#148;). The Note may be
      repaid in the form of the Corporation&#146;s common shares at Anglo&#146;s option on
      or before the loan maturity date of April 1, 2018. Anglo does not have a
      right to demand settlement of the Note in cash. Any common shares issued
      on conversion or repayment will be priced at a 20% discount to the market
      price of the shares on the closing date of the transaction, which equates
      to approximately $0.84 per share, or 4,761,904 common shares. On the
      maturity date, the Corporation may elect, at its sole and entire
      discretion, to repay the Note in cash, however, the Corporation intends to
      settle the Note by issuing the Corporation&#146;s common shares based on the
      $0.84 per share conversion price. As the convertible price and share
      settlement amount are fixed, and the Corporation has no intention to
      settle the Note in cash, the $4,000,000 proceeds and conversion right has
      been accounted for as a single equity instrument and recorded in
      contributed surplus. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(c)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Share options:
  </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>As at March 31, 2013 and
      2012, options to purchase 7,439,471 and 8,167,184 common shares,
      respectively, were outstanding. During the three months ended March 31,
      2013, compensation expense of $255,000 (2012 - $436,000) was recorded in
      net income based on the grant date fair value of the awards recognized
      over the vesting period.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>During the three months
      ended March 31, 2013, options to purchase 1,081,250 (2012 &#150; 797,504)
      common shares were granted with a weighted average fair value of $0.63
      (2012 &#150; $0.89). The granted options vest annually over three
      years.</FONT></P></TD></TR></TABLE>
<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>13.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Equity
      (cont&#146;d):</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=Arial size=2>(c)</FONT></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>Share options (cont&#146;d):
      </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>The fair values of the
      options granted during the period were determined using the Black-Scholes
      valuation model under the following weighted average assumptions:
      </FONT></P></TD></TR></TABLE><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="1%"></TD>
    <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="3%" colSpan=3><FONT face="Arial" size=2>Three months
      ended March 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="95%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=2>Expected life</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>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=2>5 years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%"><FONT face="Arial" size=2>Expected dividends</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>Nil</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>Nil</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="95%" bgColor=#c0c0c0><FONT face="Arial" size=2>Expected volatility</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>63%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2><FONT face="Arial" size=2></FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>62%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="95%"><FONT face="Arial" size=2>Risk-free interest
      rate</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>1%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2><FONT face="Arial" size=2></FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>2%</FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(d)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Deferred share units:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face="Arial" size=2>As at March 31, 2013 and 2012, 523,061 and 290,797
      deferred share units (&#147;DSUs&#148;), respectively, were outstanding. During the
      three months ended March 31, 2013 and 2012, 72,816 and nil DSUs were
      issued, respectively. During the three months ended March 31, 2013,
      $204,000 (2012 &#150; $103,000) of compensation expense was recorded in net
      income, of which $74,000 (2012 &#150; $nil) relates to DSUs granted during the
      period. The remaining $130,000 (2012 &#150; $103,000) relates to compensation
      expense expected to be earned for DSUs not yet issued.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(e)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Restricted share units:</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>As at March 31, 2013 and 2012, 3,257,688 and
      2,548,217 restricted share units (&#147;RSUs&#148;), respectively, were outstanding.
      During the three months ended March 31, 2013, 1,327,266 (2012 &#150; 1,167,847)
      RSUs were issued and compensation expense of $457,000 (2012 &#150; $414,000)
      was recorded in net income. Each RSU is convertible into one common share.
      The RSU&#146;s vest after a specific number of years from date of issuance and,
      under certain circumstances, are contingent on achieving specific
      performance criteria.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%"><FONT face="Arial" size=2>During the three months ended March 31, 2013,
      174,700 (2012 &#150; 90,887) RSUs vested under the market purchase RSU plan and
      98,543 (2012 &#150; 91,465) common shares were issued from the trust. The
      Corporation did not repurchase any common shares during the three months
      ended March 31, 2013 and 2012. As at March 31, 2013, the Corporation held
      85,086 shares as treasury shares.</FONT></TD></TR></TABLE>
<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>
<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 face="Arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>14.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Finance income (loss) and
      other:</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR></TABLE>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="92%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="7%" colSpan=5><FONT face="Arial" size=2>Three months ended March
      31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face="Arial" size=2>2013</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=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=2>Investment income</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>31</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>70</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="92%"><FONT face="Arial" size=2>Settlement
      of TPC funding obligation</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face="Arial" size=2>(1,197</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>)&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="92%" bgColor=#c0c0c0><FONT face="Arial" size=2>Foreign exchange
    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=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>487</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=2>306</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="92%"><FONT face="Arial" size=2>Finance income (loss) and other</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>(679</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>376</FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2></FONT></B></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>On January 15, 2013, the
      Corporation reached an agreement with Technology Partnerships Canada
      (&#147;TPC&#148;) to terminate all existing and future potential royalties payable
      in respect of future sales of fuel cell based stationary power products
      under the Utilities Development Program (Phase 2) in exchange for a final
      repayment to TPC of CDN $1,930,000, payable in four quarterly installments
      in 2013. Under the terms of the Utilities Development Program (Phase 2)
      with TPC, total royalties were payable annually at 4% of revenue of such
      products and limited to a total maximum repayment of CDN $38,329,000. On
      settlement with TPC, the Corporation recorded a charge of $1,197,000 (CDN
      $1,209,000) to finance income (loss) and other, representing the excess of
      the settlement amount of CDN $1,930,000 over royalty amounts previously
      accrued as of the date of settlement of CDN $721,000.</FONT><B><FONT face="Arial" size=2> </FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><STRONG><FONT face=Arial size=2>15.</FONT></STRONG></TD>
    <TD width="100%">
      <P align=justify><B><FONT face="Arial" size=2>Related party
      transactions: </FONT></B></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P 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 and the Corporation&#146;s key
      management personnel. 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></TD></TR></TABLE><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="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="90%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="3%" colSpan=2><FONT face=Arial size=2>March 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=2>December 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=Arial size=2>Balances with related
    parties:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=Arial size=2>2013</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=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Trade payables</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=2>56</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=2>100</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="90%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Interest payable</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="2%"><FONT face=Arial size=2>492</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=2>417</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      Convertible debenture payable</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=2>3,053</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=2>2,507</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="90%">&nbsp;</TD>
    <TD noWrap align=right width="8%" colSpan=5></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="90%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="8%" colSpan=5><FONT face=Arial size=2>Three months ended March
31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=Arial size=2>Transactions during the period with
      related parties:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=Arial size=2>2013</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=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Purchases</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap align=right width="2%" bgColor=#c0c0c0>
      <P align=right><FONT face=Arial size=2>41</FONT></P></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=2>45</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Finance
      expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap align=right width="2%">
      <P align=right><FONT face=Arial size=2>88</FONT></P></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face=Arial size=2>54</FONT></TD></TR>
  <TR>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="90%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR>
    <TD noWrap align=left width="1%" bgColor=#ffffff><STRONG><FONT face=Arial size=2>16.</FONT></STRONG></TD>
    <TD noWrap align=left width="90%"><STRONG><FONT face=Arial size=2>Supplemental disclosure of cash flow
information:</FONT></STRONG></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="90%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap width="2%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="3%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="90%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="8%" colSpan=5><FONT face=Arial size=2>Three months ended March
31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="90%"><FONT face=Arial size=2>Non-cash financing and investing
      activities:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" colSpan=2><FONT face=Arial size=2>2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" colSpan=2><FONT face=Arial size=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      Compensatory shares</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$&nbsp;&nbsp;&nbsp;&nbsp;
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=Arial size=2>159</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$&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=2>113</FONT></TD></TR></TABLE><BR>

<P align=right><FONT face="Arial" size=1>19</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 face="Arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>17.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Operating
      segments:</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>As a result of the
      disposition of the Material Products division (note 5), the former
      Material Products segment has been classified as discontinued operations
      and therefore has been removed from the continuing operating results. The
      Corporation now operates in a single segment, Fuel Cell Products, for
      which consolidated results are broken down as follows:</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">&nbsp;</TD></TR></TABLE>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="93%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=right width="6%" colSpan=6><FONT face="Arial" size=2>Three months ended
      March 31,</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face="Arial" size=2>2013</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="2%" colSpan=2><FONT face="Arial" size=2>2012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Total revenues:</B></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=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="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%"><FONT face="Arial" size=2>Fuel Cell Products</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>12,335</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>10,079</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Segment income (loss) for the period
      </B><B><SUP>(1)</SUP></B><B>:</B></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=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="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=2>Fuel Cell Products</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>1,415</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>602</FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Corporate amounts:</B></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="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>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp; Research and product development</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>(3,773</FONT></TD>
    <TD noWrap align=left width="1%"><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="1%"><FONT face="Arial" size=2>(4,396</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp; General and
      administrative</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(2,995</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(2,766</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="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp; Sales and marketing</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>(1,936</FONT></TD>
    <TD noWrap align=left width="1%"><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="1%"><FONT face="Arial" size=2>(2,099</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2>Net finance expense</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(1,106</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(38</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="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="93%"><FONT face="Arial" size=2>Gain (loss) on sale of
      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=right width="1%"><FONT face="Arial" size=2>25</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="1%"><FONT face="Arial" size=2>(49</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="93%" bgColor=#c0c0c0><FONT face="Arial" size=2><B>Loss
      before income tax and discontinued operations</B></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(8,370</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>(8,746</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD vAlign=top noWrap><FONT face="Arial" size=1><SUP>(1)&nbsp;
      </SUP></FONT></TD>
    <TD width="100%"><FONT face="Arial" size=1>Research and product
      development costs directly related to segments are included in segment
      income (loss) for the period.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap></TD>
    <TD width="100%"></TD></TR>
  <TR>
    <TD><STRONG><FONT face=Arial size=2>18.</FONT></STRONG></TD>
    <TD colSpan=2>
      <P align=justify><B><FONT face="Arial" size=2>Financial instruments:
      </FONT></B></P></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD><FONT face=Arial size=2>(a)</FONT></TD>
    <TD colSpan=2>
      <P align=justify><FONT face="Arial" size=2>Fair value:
</FONT></P></TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD colSpan=2>
      <P align=justify><FONT face="Arial" size=2>The Corporation&#146;s financial
      instruments consist of cash and cash equivalents, short-term investments,
      trade and other receivables, investments, trade and other payables, and
      finance lease liability. The fair values of cash and cash equivalents,
      trade and other receivables, and trade and other payables approximate
      carrying value because of the short-term nature of these instruments. The
      Corporation&#146;s investments (note 18(c)) 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 finance lease liability are not considered to be materially
      different from market rates, thus the carrying value of the finance lease
      liability approximates fair value. The carrying value of short-term
      investments equal their fair value as they are classified as held for
      trading. </FONT></P></TD></TR></TABLE>
<P align=right><FONT face="Arial" size=1>20</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 face="Arial" size=2><STRONG>BALLARD POWER
      SYSTEMS INC.<BR></STRONG>Notes to Condensed Consolidated Interim Financial
      Statements<BR><FONT size=1 face="arial">Three months ended March 31, 2013 and
      2012<BR>Unaudited<BR>(Tabular amounts expressed in thousands of U.S.
      dollars, except number of
shares)<BR>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><B><FONT face="Arial" size=2>18.</FONT></B></TD>
    <TD width="100%"><B><FONT face="Arial" size=2>Financial instruments:</FONT></B></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%">&nbsp;</TD></TR></TABLE>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(a)</FONT></TD>
    <TD width="100%" colSpan=2><FONT face="Arial" size=2>Fair value
    (cont&#146;d):</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%" colSpan=2><FONT face="Arial" size=2>Fair value measurements
      recognized in the statement of financial position must be categorized in
      accordance with the following levels:</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(i)</FONT></TD>
    <TD width="100%"><FONT face="Arial" size=2>Level 1: Quoted prices (unadjusted) in active
      markets for identical assets or liabilities;</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(ii)</FONT></TD>
    <TD width="100%"><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 colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(iii)&nbsp; </FONT></TD>
    <TD width="100%"><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>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2><FONT face="Arial" size=2>The Corporation categorized
      the fair value measurement of its short-term investments in Level 1 as
      they are primarily derived directly from reference to quoted (unadjusted)
      prices in active markets.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(b)</FONT></TD>
    <TD width="100%" colSpan=2><FONT face="Arial" size=2>Carrying value:</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2><FONT face="Arial" size=2>As of March 31, 2013, the
      carrying values of the Corporation&#146;s financial instruments approximate
      their fair values. For the Corporation&#146;s non-financial assets and
      liabilities measured at fair value on a non-recurring basis, no fair value
      measurements were made as at March 31, 2013.</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face="Arial" size=2>(c)</FONT></TD>
    <TD width="100%" colSpan=2><FONT face="Arial" size=2>Investments:</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD></TD>
    <TD width="100%" colSpan=2><FONT face="Arial" size=2>Investments are comprised of
      the following:</FONT></TD></TR>
  <TR>
    <TD colSpan=3>&nbsp;</TD></TR></TABLE>
<TABLE style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <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=3><FONT face="Arial" size=2>March 31,
      2013</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%" colSpan=3><FONT face="Arial" size=2>December 31,
      2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="89%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face="Arial" size=2>Percentage</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT face="Arial" size=2>Percentage</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <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><FONT face="Arial" size=2>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="2%"><FONT face="Arial" size=2>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="2%" colSpan=2><FONT face="Arial" size=2>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="1%"><FONT face="Arial" size=2>ownership</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face="Arial" size=2>Chrysalix Energy Limited Partnership</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>659</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face="Arial" size=2>15.0%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Arial" size=2></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>659</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>15.0%</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><FONT face="Arial" size=2>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=right width="1%"><FONT face="Arial" size=2>8</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="2%"></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=2>8</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="89%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>667</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face="Arial" size=2>667</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%"></TD></TR></TABLE><BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap></TD>
    <TD width="100%">
      <P align=justify><FONT face="Arial" size=2>The Corporation&#146;s 15%
      ownership share in Chrysalix Energy Limited Partnership (&#147;Chrysalix&#148;) is
      accounted for as an available-for-sale financial asset and recorded at
      fair value. During the three months ended March 31, 2013, the Corporation
      made additional capital contributions of $nil (2012 - $44,000) in
      Chrysalix. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="100%">&nbsp;</TD></TR></TABLE>
<DIV style="TEXT-ALIGN: right"><FONT face="Arial" size=1>21</FONT></DIV><BR>
<HR align=center width="100%" noShade SIZE=2>
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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>exhibit99-2.htm
<DESCRIPTION>BALLARD POWER SYSTEMS FIRST QUARTER 2013 MANAGEMENT'S DISCUSSION AND ANALYSIS
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
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<BODY bgcolor=#ffffff>
<BR>
<P align=right><IMG src="ballard_6k1x1x1.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 April 29, 2013
and should be read in conjunction with the unaudited condensed interim
consolidated financial statements and accompanying notes for the three months
ended March 31, 2013 and with the audited consolidated financial statements and
accompanying notes for the year ended December 31, 2012. 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. Our focus is on leveraging the inherent reliability
and durability derived from our legacy automotive technology into non-automotive
markets where demand is near term and on our core competencies of PEM fuel cell
design, development, manufacture, sales and service. </FONT></P>
<P align=justify><FONT face="Arial" size=2>Our business strategy is to
establish a sharp focus on key growth opportunities with near-term commercial
prospects in our core fuel cell markets, enhanced by our engineering services
operating unit to leverage our expertise in fuel cell design, prototyping,
manufacturing and servicing. To support our business strategy and our capability
to execute on our clean energy growth priorities, we have also focused our
efforts on bolstering our cash reserves in addition to continued efforts on both
product cost reduction and managing our operating expense base including overall
expense reductions, the pursuit of government funding for our research and
product development efforts, and the redirection of engineering resources to
revenue generating engineering service projects.</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. We also utilize a contract manufacturing facility in
Tijuana, Mexico, have research and development facilities in Oregon and
Maryland, U.S.A., and have a sales, manufacturing, and research and development
facility in Hobro, Denmark.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 1 of 24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><B><FONT face="Arial" size=2>RECENT DEVELOPMENTS
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>On March 6, 2013, we announced an
agreement with Volkswagen Group (&#147;Volkswagen&#148;) for a major Engineering Services
contract to advance development of fuel cells for use in powering demonstration
cars in Volkswagen&#146;s fuel cell automotive research program. The contract term is
4 years, with an option for a 2 year extension. The expected contract value is
in the range of approximately $60 - $100 million Canadian. </FONT></P>
<P align=justify><FONT face="Arial" size=2>On March 26, 2013, we closed on an
underwritten offering (&#147;Offering&#148;) of 7.275 million units for gross offering
proceeds of $8.0 million. Each unit in the Offering is comprised of one common
share priced at $1.10 and one warrant to purchase one common share priced at
$1.50. The common shares and warrants are immediately separable and were issued
separately, and no units will be issued or certificated. The warrants are
certificated, exercisable immediately upon issuance, and have a 5-year term.
There is no established public trading market for the warrants and we do not
expect a market to develop. Net proceeds from the Offering were approximately
$6.8 million after deducting for underwriting discounts, commissions and other
offering expenses, legal and accounting fees, and previously incurred costs
related to the initial 2012 base shelf prospectus.</FONT></P>
<P align=justify><FONT face="Arial" size=2>On March 28, 2013, we completed an
agreement with Anglo American Platinum Limited (&#147;Anglo&#148;) under which Anglo
invested $4.0 million in Ballard through its PGM Development Fund. The
investment was in the form of a $4.0 million, 5-year, non-interest bearing
convertible promissory note (&#147;Note&#148;) issued by Ballard. The Note may be repaid
in the form of Ballard common shares with Anglo having the option of repayment
in common shares on or before the loan maturity date of April 1, 2018. Any
Ballard common shares issued on conversion or repayment would be at a fixed
price of $0.84 per share (or 4.76 million Ballard common shares to settle the
entire $4.0 million Note) which was set at a 20% discount to the market price of
the Ballard common shares on the closing date of the transaction. The entire
$4.0 million Note has been classified as an equity instrument and is recorded in
Contributed Surplus. </FONT></P>
<P align=justify><FONT face="Arial" size=2>On March 31, 2013, our subsidiary
Dantherm Power completed an agreement whereby Beijing Azure Hydrogen Energy
Science and Technology Corporation (&#147;Azure&#148;) acquired a 10% ownership position
in Dantherm Power for proceeds of $2.0 million to Dantherm Power. The $2.0
million investment consisted of the issuance of Dantherm Power share capital of
$1.4 million and Dantherm Power convertible debentures of $0.6 million.
Following the transaction, Ballard holds a 52% ownership interest in Dantherm
Power and holds 52% of Dantherm Power&#146;s outstanding convertible debentures. This
compares to an overall ownership position (share capital and convertible
debentures) in Dantherm Power by Dantherm A/S of 38% and by Azure of 10%. The
convertible debentures issued to Azure are on the same terms and conditions as
those previously issued and outstanding to Dantherm A/S. </FONT></P>

<P align=right><FONT face="Arial" size=1>Page 2 of 24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>On January 31, 2013, we completed
an agreement to sell substantially all of the assets in our Lowell,
Massachusetts based Material Products division for gross cash proceeds of $10.5
million (on the delivery of net working capital of $3.7 million) and additional
potential proceeds of up to $1.5 million. The additional proceeds of up to $1.5
million are payable in 2014 and 2015 through a product credit for fuel cell gas
diffusion layers (&#147;GDLs&#148;) if the former Material Products division
attains certain financial results in 2013. As the additional potential proceeds
are contingent in nature, they are not recorded in our financial statements
until actually realized. Excluding any potential contingent gain from the
additional proceeds, net proceeds from the sale were approximately $9.0 million
after deducting for working capital adjustments, broker commissions and
expenses, and legal and other expenses. The Material Products segment was
classified as a discontinued operation in our 2012 year end consolidated
financial statements and in our first quarter of 2013 interim consolidated
financial statements.</FONT></P>
<P align=justify><FONT face="Arial" size=2>On January 15, 2013, we reached an
agreement with Technology Partnerships Canada (&#147;TPC&#148;) to terminate all existing
and future potential royalties payable in respect of future sales of fuel cell
based stationary power products under the Utilities Development Program (Phase
2) in exchange for a final repayment to TPC of $1.9 million Canadian. Under the
terms of the Utilities Development Program (Phase 2) with TPC, total royalties
were payable annually at 4% of revenue of such products and limited to a total
maximum repayment of $38.3 million Canadian. On settlement with TPC on January
15, 2013, we recorded a charge of ($1.2) million to Finance income (loss)
representing the excess of the settlement amount of $1.9 million over royalty
amounts accrued as of the date of settlement of $0.7 million. The $1.9 million
settlement is payable in four quarterly installments in 2013. </FONT></P>
<P align=justify><FONT face="Arial" size=2>On August 1, 2012, we completed an
agreement to acquire key assets and product lines from IdaTech LLC (&#147;Idatech&#148;),
a customer of Ballard for the past several years. In exchange for $7.5 million
of Ballard common shares issued from treasury (7.1 million Ballard shares valued
at $1.05 per share based on our share price as of the acquisition date), we
acquired Idatech&#146;s key assets including fuel cell systems inventory, prepaid
rights to inventory, product lines for backup power applications, distributor
and customer relationships, a license to intellectual property, the right to
assume control of a contract manufacturing facility in Tijuana, Mexico, and
certain property, plant and equipment. Acquired fuel cell systems inventory,
prepaid rights to inventory, product lines and intellectual property consist of
both direct hydrogen units as well as methanol fuelled units and are designed
for deployment as emergency backup power in the networks of wireless telecom
service providers. The methanol systems incorporate a fuel reformer to extract
hydrogen from a mixture of methanol and water which is then used as feedstock
for the fuel cells.</FONT></P>
<P align=justify><FONT face="Arial" size=2>In July 2012, we completed a 7%
workforce reduction and an overall curtailment of discretionary spending
designed to have a minimal impact on key product development initiatives and our
manufacturing capabilities. Total restructuring and related costs of $1.6
million has been recorded in general and administration expense in our third
quarter of 2012 financial results.</FONT></P>
<P align=justify><FONT face="Arial" size=2>In June 2011, we obtained an $7.0
million Canadian (revised to $7.3 million Canadian in December 2012) award
agreement from Sustainable Development Technology Canada (&#147;SDTC&#148;) for the period
from 2011 to 2013 (extended to 2014) 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 (revised to $6.9 million Canadian in June 2012) award
agreement from SDTC announced in 2010 for the period from 2010 to 2012 (extended
to November 2013) 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=right><FONT face="Arial" size=1>Page 3 of 24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><B><FONT face="Arial" size=2>OPERATING SEGMENTS
</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>We currently report our results in
the single operating segment of Fuel Cell Products. Our Fuel Cell Products
segment consists of the sale and service of fuel cell products for our
&#147;commercial stage&#148; markets of Telecom Backup Power and Material Handling and for
our &#147;development stage&#148; markets of Bus and Distributed Generation, as well as
Engineering Services for a variety of fuel cell applications. </FONT></P>
<P align=justify><FONT face="Arial" size=2>As a result of the disposition of
our Materials Products segment on January 31, 2013, the former Material Products
segment has been classified as a discontinued operation in our first quarter of
2013 consolidated financial statements. As such, the operating results of the
former Material Products segment for the first quarter of 2013 and 2012,
respectively, have been removed from continuing operating results and are
instead presented separately in the statement of comprehensive income as income
from discontinued operations. The former Materials Product segment comprised
carbon fiber products primarily for automotive transmissions and GDL&#146;s for fuel
cells.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>RESULTS OF OPERATIONS (from
continuing operations) &#150; First Quarter of 2013 </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 vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt 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; 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="14%" colSpan=14>&nbsp; <FONT face=Arial size=2>Three months
      ended March 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><B><FONT face=Arial size=2>Fuel Cell Products</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="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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="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=2>$ Change</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="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Telecom Backup Power</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>6,397</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>1,175</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=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>5,222</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>444%</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="85%"><FONT face=Arial size=2>Material
      Handling</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>887</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="1%"><B><FONT face=Arial size=2>1,218</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="1%"><FONT face=Arial size=2>(331</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(27%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Engineering Services</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><B><FONT face=Arial size=2>2,612</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>3,360</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(748</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(22%</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="85%"><FONT face=Arial size=2>Other (Bus
      and</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=left width="1%"></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=left width="1%"></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=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#ffffff><FONT face=Arial size=2>Distributed Generation)</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="1%" bgColor=#ffffff><B><FONT face=Arial size=2>2,439</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=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="1%" bgColor=#ffffff><B><FONT face=Arial size=2>4,325</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=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="1%" bgColor=#ffffff><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(1,886</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=2>)</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="1%" bgColor=#ffffff><FONT face=Arial size=2>(44%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,335</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="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,079</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>2,256</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>22%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#ffffff><FONT face=Arial size=2>Cost of goods sold</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="1%" bgColor=#ffffff><B><FONT face=Arial size=2>9,397</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=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="1%" bgColor=#ffffff><B><FONT face=Arial size=2>7,966</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=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="1%" bgColor=#ffffff><FONT face=Arial size=2>1,431</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=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>18%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Gross Margin</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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>2,938</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=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>2,113</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>825</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></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>39%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#ffffff><FONT face=Arial size=2>Gross Margin %</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="1%" bgColor=#ffffff><B><FONT face=Arial size=2>24%</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=Arial size=2></FONT></B></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="1%" bgColor=#ffffff><B><FONT face=Arial size=2>21%</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=Arial size=2></FONT></B></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="1%" bgColor=#ffffff><FONT face=Arial size=2>n/a</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=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>3 pts </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></TABLE>
<P align=justify><FONT face="Arial" size=2>Fuel Cell Products Revenues of
$12.3 million for the first quarter of 2013 increased 22%, or $2.3 million,
compared to the first quarter of 2012, as significantly higher Telecom Backup
Power revenues more than offset declines in Bus, Engineering Services and
Material Handling revenues. </FONT></P>
<P align=justify><FONT face="Arial" size=2>Telecom Backup Power revenues of
$6.4 million increased $5.2 million, or 444%, as a result of new shipments (287
units in the first quarter of 2013 as compared to 28 units in the first quarter
of 2012) of hydrogen-based and methanol-based backup power systems enabled by
our August 2012 acquisition of Idatech&#146;s key assets combined with relatively
stable shipments of hydrogen-based backup power stacks. Material Handling
revenues of $0.9 million declined ($0.3) million, or (27%), as a result of lower
shipments in support of Plug Power Inc.&#146;s GenDrive&#153; systems. Engineering
Services revenues of $2.6 million declined ($0.7) million, or (22%), as services
performed in 2013 on the new Volkswagen program commenced late in the quarter
and as a result were lower than amounts performed in the first quarter of 2012
on the previously Anglo American Platinum Limited project and certain other
automotive contracts. Other (development stage) revenues of $2.4 million
declined ($1.9) million, or (44%), primarily as a result of lower Bus revenues
as shipments of our heavy-duty fuel cell bus modules to Van Hool NV and
CTTransit in 2013 were lower than shipments in 2012 to Van Hool NV.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 4 of 24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>Fuel Cell Products gross margins
increased to $2.9 million, or 24% of revenues, for the first quarter of 2013,
compared to $2.1 million, or 21% of revenues, for the first quarter of 2012. The
overall increase and improvement in gross margin was driven primarily by the
significant increase in Telecom Backup Power sales of hydrogen-based and
methanol-based backup power systems, and by our ongoing product cost reduction
efforts across all of our platforms.</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="100%" colSpan=16><B><I><FONT face=Arial size=2>Cash Operating Costs</FONT></I></B></TD></TR>
  <TR>
    <TD align=left width="100%" colSpan=16>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid; BORDER-BOTTOM: #000000 1pt 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; 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="14%" colSpan=14><FONT face=Arial size=2>Three months ended
      March 31,</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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="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=2>$ Change</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="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Research and Product</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=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>
    <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="85%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development (operating
cost)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>4,569</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>5,208</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=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(639</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(12%</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="85%"><FONT face=Arial size=2>General and
      Administrative</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=left width="1%"></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=left width="1%"></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=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%"><FONT face=Arial size=2>(operating
      cost)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>2,636</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="1%"><FONT face=Arial size=2>2,693</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=2>(57</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(2%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Sales and Marketing
    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=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>1,936</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>2,099</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=2>(163</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</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=2>(8%</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="85%"><B><FONT face=Arial size=2>Operating
      costs</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>9,141</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="1%"><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>10,000</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=2>(859</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(9%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Less: Stock-based compensation</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=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>
    <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 style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>(expense) recovery</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><B><FONT face=Arial size=2>(915</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(843</FONT></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=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=2>(72</FONT></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="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(9%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%"><B><FONT face=Arial size=2>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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,226</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=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>9,157</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>(931</FONT></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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(10%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR style="LINE-HEIGHT: normal" vAlign=bottom>
    <TD align=left width="100%" colSpan=16>
      <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, acquisition costs
      and financing charges.</FONT></P></TD></TR></TABLE>
<P align=justify><FONT face="Arial" size=2>Cash Operating Costs (see
Supplemental Non-GAAP Measures) for the first quarter of 2013 were $8.2 million,
a decline of ($0.9) million, or (10%), compared to the first quarter of 2012.
The 10% reduction in the first quarter of 2013 was driven by lower operating
costs across the business as a result of our continued cost reduction efforts
including a 7% workforce reduction initiated in July 2012, and by lower research
and product development expense due to the redirection of engineering resources
to revenue generating engineering service projects. Labour and material costs
incurred on revenue producing engineering services projects are reallocated from
research and product development expenses to cost of goods sold.</FONT></P>
<P align=justify><FONT face="Arial" size=2>As the Canadian dollar relative to
the U.S. dollar was relatively consistent for the first quarter of 2013 compared
to the first quarter of 2012, foreign exchange impacts on our Canadian operating
cost base were relatively insignificant. A 1% increase in the Canadian dollar,
relative to the U.S. dollar, negatively impacts annual Cash Operating Costs and
Adjusted EBITDA by approximately $0.3 million to $0.4 million. </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="86%"><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%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap width="12%" colSpan=12><FONT face=Arial size=2>Three months ended March
      31,</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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="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=2>$ </FONT><FONT face=Arial size=2>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=2>% Change</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Adjusted EBITDA</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap 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=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,648</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(6,370</FONT></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=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="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>1,722</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=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>27%</FONT></TD></TR>
  <TR style="LINE-HEIGHT: normal" vAlign=bottom>
    <TD style="TEXT-ALIGN: justify" align=left width="99%" colSpan=14><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></TD></TR></TABLE><BR>
<P align=justify><FONT face="Arial" size=2>Adjusted EBITDA (see Supplemental
Non-GAAP Measures) for the first quarter of 2013 was ($4.6) million, an
improvement of $1.7 million, or 27%, compared to the first quarter of
2012.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The $1.7 million reduction in
Adjusted EBITDA loss in the first quarter of 2013 was driven by gross margin
improvements of $0.8 million as margins improved on a percentage of revenue
basis from 21% to 24% primarily as a result of the significant increase in
Telecom Backup Power sales of hydrogen-based and methanol-based backup power
systems supported by our ongoing product cost reduction efforts across all of
our platforms.</FONT></P>
<P STYLE="text-align: right"><FONT face="Arial" size=1>Page 5 of 24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></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="86%"><B><I><FONT face=Arial size=2>Net loss
      attributable to Ballard</FONT></I></B></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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=left width="1%"></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=left width="1%"></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=left width="1%"></TD></TR>
  <TR>
    <TD width="99%" colSpan=14>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="86%"><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="12%" colSpan=12><FONT face=Arial size=2>Three</FONT> <FONT face=Arial size=2>months ended March 31,</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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="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=2>$ 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=2>% Change</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Net loss attributable to
      Ballard from<BR>continuing operations</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=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7,936</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(8,660</FONT></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=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="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>724</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=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>8%</FONT></TD></TR></TABLE>
<P align=justify><FONT face="Arial" size=2>Net loss attributable to Ballard
from continuing operations for the first quarter of 2013 was ($7.9) million, or
($0.9) per share, compared to a net loss of ($8.7) million, or ($0.10) per
share, in the first quarter of 2012. The $0.7 million reduction in net loss for
the first quarter of 2013 was driven by the improvement in Adjusted EBITDA of
$1.7 million, partially offset by a ($1.2) million charge to Finance income
(loss) as a result of the settlement of the TPC obligation. On settlement with
TPC on January 15, 2013, we recorded a charge of ($1.2) million to Finance
income (loss) representing the excess of the settlement amount of $1.9 million
over royalty amounts accrued as of the date of settlement of $0.7
million.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Excluding the impact of the TPC
settlement charge of ($1.2) million, Normalized Net Loss (see Supplemental
Non-GAAP Measures) in the first quarter of 2013 would have improved $1.9
million, or 22%, as compared to the first quarter of 2012.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Net loss attributable to Ballard
from continuing operations excludes the net loss attributed to the
non-controlling interests in the losses of Dantherm Power. During the first
quarter of 2013, we held a 57% equity interest in Dantherm Power as compared to
a 52% equity interest held in the first quarter of 2012. As a result of the
Azure investment in Dantherm Power on March 31, 2013, we now hold a 52% equity
interest in Dantherm Power as compared to the non-controlling 38% equity
interest held by Dantherm Power A/S and the non-controlling 10% equity interest
held by Azure. Net loss attributed to non-controlling</FONT><B><I><FONT face="Arial" size=2> </FONT></I></B><FONT face="Arial" size=2>interests
for the first quarter of 2013 was ($0.4) million, as compared to ($0.1) million
for the first quarter of 2012.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Net loss attributable to Ballard
from continuing operations also exclude the net income (loss) from discontinued
operations of ($0.1) million for the first quarter of 2013 and $0.2 million for
the first quarter of 2012. </FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Cash used in 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="86%"><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%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap width="12%" colSpan=12><FONT face=Arial size=2>Three </FONT><FONT face=Arial size=2>months ended March 31,</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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="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=2>$ 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=2>&nbsp;% Change</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Cash (used in) provided by
      operating<BR>activities</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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,998</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(15,065</FONT></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=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="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>8,067</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=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>54%</FONT></TD></TR></TABLE>
<P align=justify><FONT face="Arial" size=2>Cash used by operating activities
in the first quarter of 2013 was ($7.0) million, consisting of cash operating
losses of ($6.2) million and net working capital outflows of ($0.8) million.
Cash used in operating activities in the first quarter of 2012 was ($15.1)
million, consisting of cash operating losses of ($6.4) million and net working
capital outflows of ($8.6) million. The $8.1 million reduction in cash used by
operating activities in the first quarter of 2013, as compared to the first
quarter of 2012, was driven primarily by a reduction of $7.9 million in working
capital requirements.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The total change in working
capital of ($0.8) million in the first quarter of 2013 was driven by higher
accounts receivable of ($5.0) million primarily as a result of the timing of
Telecom Backup Power revenues and the related customer collections, partially
offset by higher accounts payable and accrued liabilities of $2.8 million due
primarily to the accrual of the TPC settlement, and by higher deferred revenue
of $1.3 million as we received Engineering Services receipts in
advance of incurring the related contract work. This compares to a total change
in working capital of ($8.6) million in the first quarter of 2012 which was
driven by higher accounts receivable of ($2.7) million as a result of the timing
of revenues and the related customer collections which were skewed towards the
last half of the year, increased inventory levels of ($2.1) million, and by
lower accounts payable of ($3.3) million as a result of increased supplier
payments made for higher fourth quarter of 2011 inventory purchases.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 6 of 24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><B><FONT face="Arial" size=2>RESULTS OF DISCONTINUED
OPERATIONS &#150; First Quarter of 2013 </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; BORDER-BOTTOM: #000000 1pt 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; 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="14%" colSpan=14><FONT face=Arial size=2>Three months ended March
      31,</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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="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=2>$ Change</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="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>%
      Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>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=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>867</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>3,466</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=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(2,599</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(75%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=Arial size=2>Cost of goods sold</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%"><B><FONT face=Arial size=2>610</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="1%"><FONT face=Arial size=2>2,558</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="1%"><FONT face=Arial size=2>(1,948</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=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>(76%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross margin</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><B><FONT face=Arial size=2>257</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>908</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(651</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(72%</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="85%"><FONT face=Arial size=2>Operating expenses</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(240</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>(654</FONT></TD>
    <TD noWrap align=left width="1%"><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="1%"><FONT face=Arial size=2>414</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>63%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Impairment charge
      on</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=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>
    <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="85%" bgColor=#c0c0c0><FONT face=Arial size=2>property, plant
      and</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></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2></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></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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></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=2>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="1%" bgColor=#c0c0c0><STRONG><FONT face=Arial size=2>(50</FONT></STRONG></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><STRONG><FONT face=Arial size=2>)</FONT></STRONG></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=2>-</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(50</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="1%" bgColor=#c0c0c0><FONT size=2><FONT face=Arial><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(100%</FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=Arial size=2>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="1%"><B><FONT face=Arial size=2>(9</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>(37</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=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>28</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>76%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Net earnings
      (loss)</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>
    <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>
    <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="85%" bgColor=#c0c0c0><B><FONT face=Arial size=2>from discontinued<BR>operations</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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(42</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>217</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(259</FONT></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="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(119%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR></TABLE>
<P align=justify><FONT face="Arial" size=2>Revenues from the discontinued
Material Products segment in the first quarter of 2013 of $0.9 million declined
(75%), or ($2.6) million, as a result of the timing of disposition which was
completed on January 31, 2013.<BR></FONT><FONT face="Arial" size=2>Impairment
charges in the first quarter of 2013 were determined based on a fair value less
costs to sell assessment which compared the segment&#146;s carrying value at January
31, 2013 to the actual net proceeds received on disposition on January 31, 2013.
As a result of this assessment, we recorded a ($0.1) million write-down of
property, plant and equipment in the first quarter of 2013. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>OPERATING EXPENSES AND OTHER
ITEMS FROM CONTINUING OPERATIONS </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="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" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap width="14%" colSpan=14><FONT face=Arial size=2>Three months ended March
      31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><B><FONT face=Arial size=2>Research and product
      development</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="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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="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=2>$ Change</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="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Research and product development 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=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,296</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>5,907</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=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(611</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(10%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=Arial size=2>Less: depreciation and amortization
      expense</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><B><FONT face=Arial size=2>(727</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>(699</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>(28</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="1%"><FONT face=Arial size=2>(4%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Research and product development
      (operating<BR>cost)</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><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>4,569</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>5,208</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(639</FONT></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=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=2>(12%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR></TABLE>
<P align=justify><B><I><FONT face="Arial" size=2>Research and product
development</FONT></I></B><FONT face="Arial" size=2> expenses for the three
months ended March 31, 2013 were $5.3 million, a decrease of ($0.6) million, or
10%, compared to the corresponding period of 2012. Excluding depreciation and
amortization expense of ($0.7) in each of the periods, research and product
development expense declined ($0.6) million, or 12%, compared to the first
quarter of 2012. The 12% reduction in 2013 was primarily as a result of the
redirection of engineering labour resources to revenue generating engineering
service projects, by the receipt of government funding for certain of our
research and product development efforts, and by lower operating costs across
the business due to our continued cost reduction efforts including a 7%
workforce reduction initiated in July 2012.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Government research funding is
reflected as a cost offset to research and product development expenses, whereas
labour and material costs incurred on revenue producing engineering services projects are
reallocated from research and product development expenses to cost of goods
sold.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 7 of 24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></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="84%"><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%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap width="15%" colSpan=15><FONT face=Arial size=2>Three months ended March
      31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="84%"><B><FONT face=Arial size=2>General and
      administrative</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="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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="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=2>$ Change</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="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=2>% </FONT><FONT face=Arial size=2>Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=Arial size=2>General and administrative 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=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,995</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>2,766</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=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>229</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>8%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=Arial size=2>Less:
      Depreciation and amortization expense</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>(47</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(73</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>26</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=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(36%</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=Arial size=2>Less: Restructuring charges</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(219</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>-</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=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(219</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>n/a</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"><FONT face=Arial size=2>Less:
      Acquisition and integration costs</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>(93</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>-</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(93</FONT></TD>
    <TD noWrap align=left width="1%"><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="1%"><FONT face=Arial size=2>n/a</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=2>Less: Financing charges</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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>-</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>-</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><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%"><FONT face=Arial size=2>General and administrative (operating
      cost)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><B><FONT face=Arial size=2>2,636</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=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>2,693</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>(57</FONT></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=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="1%"><FONT face=Arial size=2>(2%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR></TABLE>
<P align=justify><B><I><FONT face="Arial" size=2>General and
administrative</FONT></I></B><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>expenses for the three months ended March 31, 2013 were
$3.0 million, an increase of $0.2 million, or 8%, compared to the corresponding
period of 2012. Excluding restructuring charges of ($0.2) million and
acquisition and integration costs related to the Idatech Tijuana manufacturing
facility of ($0.1) million, general and administrative expense was $2.6 million,
a decline of ($0.1) million, or (2%), compared to the first quarter of 2012. The
2% reduction in 2013 was primarily as result of our continued cost reduction
efforts including a 7% workforce reduction initiated in July 2012, partially
offset by higher one-time legal expenses (approximately $0.3 million) incurred
in the first quarter of 2013 related to the Volkswagen contract and the TPC
settlement.</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="86%"><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%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap width="12%" colSpan=12><FONT face=Arial size=2>Three</FONT> <FONT face=Arial size=2>months ended March 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><B><FONT face=Arial size=2>Sales and marketing</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="2%" colSpan=2><B><FONT face=Arial size=2>2013</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=2>2012</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=2>$ 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%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="86%" bgColor=#c0c0c0><FONT face=Arial size=2>Sales and marketing
    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><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,936</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>2,099</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(163</FONT></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=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=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(8%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR></TABLE>
<P align=justify><B><FONT face="Arial" size=2>Sales and
marketing</FONT></B><B><I><FONT face="Arial" size=2> </FONT></I></B><FONT face="Arial" size=2>expenses for the three months ended March 31, 2013 were
$1.9 million, a decrease of ($0.2) million, or 8% compared to the corresponding
period of 2011. The 8% reduction in 2013 was primarily as a result of our
continued cost reduction efforts across the business which included a 7%
workforce reduction initiated in July 2012, partially offset by increased
investment in sales and marketing capacity in the Telecom Backup Power market
due to our acquisition of the Idatech assets in August 2012. </FONT></P>
<P align=justify><B><I><FONT face="Arial" size=2>Finance income (loss) and
other</FONT></I></B><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>for the three months March 31, 2013 was ($0.7) million
compared to $0.4 million for the corresponding period of 2011. The following
tables provide 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="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" noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap width="13%" colSpan=13><FONT face=Arial size=2>Three months </FONT><FONT face=Arial size=2>ended March 31,</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><B><FONT face=Arial size=2>2013</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="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=2>2012</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=2>$ Change</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="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>% Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="85%" bgColor=#c0c0c0><FONT face=Arial size=2>Employee future benefit plan 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=2>$</FONT></B></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>-</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right 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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" 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="85%"><FONT face=Arial size=2>Settlement of
      TPC funding obligation</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,197</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>)</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=2>-</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=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(1,197</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>n/a</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=2>Investment and other income</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><B><FONT face=Arial size=2>31</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="1%" bgColor=#c0c0c0><FONT face=Arial size=2>70</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=2>(39</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(56%</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="85%"><FONT face=Arial size=2>Foreign exchange gain (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%"><B><FONT face=Arial size=2>487</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="1%"><FONT face=Arial size=2>306</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=2>181</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT face=Arial size=2>59%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face=Arial size=2></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="85%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Finance income (loss) and
      other</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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(679</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</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=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>376</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(1,055</FONT></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="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</STRONG>(281%</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR></TABLE>
<P align=justify><FONT face="Arial" size=2>Employee future benefit plan
expense for the three months ended March 31, 2013 and 2012 were nominal.
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=right><FONT face="Arial" size=1>Page 8 of 24 </FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>Settlement expense related to the
TPC funding obligation of ($1.2) million recorded in the three months ended March 31, 2013
represents the excess of the settlement amount of $1.9 million over royalty
amounts accrued as of the date of settlement of $0.7 million. On January 15,
2013, we reached an agreement with Technology Partnerships Canada (&#147;TPC&#148;) to
terminate all existing and future potential royalties payable in respect of
future sales of fuel cell based stationary power products under the Utilities
Development Program (Phase 2) in exchange for a final repayment to TPC of $1.9
million Canadian.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Foreign exchange gains and losses
are attributable primarily 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. Foreign exchange gains and losses are also impacted by
the conversion of Dantherm Power&#146;s assets and liabilities from the Danish Kroner
to the U.S. dollar at exchange rates in effect at each reporting date.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>Investment and other income for
the three months ended March 31, 2013 and 2012 were nominal and were earned
primarily on our cash, cash equivalents 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 ended
March 31, 2013 and 2012 was ($0.4) million and 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>Net loss attributed to
non-controlling interests</FONT></I></B><FONT face="Arial" size=2> for the
three months ended March 31, 2013 was ($0.4) million compared to ($0.1) million
for the corresponding period of 2012. Amounts primarily represent the
non-controlling interest of Dantherm A/S in the losses of Dantherm Power as a
result of their 43% total equity interest in the first quarter of 2013 and their
48% total equity interest in the first quarter of 2012. The decline in
performance at Dantherm Power in the first quarter of 2013 as compared to the
first quarter of 2012 is primarily a result of a decline in higher margin
engineering services revenues in 2013.</FONT></P>
<P align=justify><B><FONT face="Arial" size=2>SUMMARY OF QUARTERLY RESULTS
FROM CONTINUING OPERATIONS </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>The following table provides
summary financial data for our last eight quarters from continuing operations:
</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; WIDTH: 84%; TEXT-ALIGN: left" vAlign=top width="84%"><I><FONT face=Arial size=1>(Expressed in thousands
      of U.S. dollars, except per share amounts<BR>and weighted average shares
      outstanding which are expressed in<BR>thousands)</FONT></I></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid" vAlign=top noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" vAlign=top noWrap width="15%" colSpan=15><FONT face=Arial size=2>Quarter
    ended,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>Mar
      31,</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>Dec
      31,</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>Sep
      30,</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>Jun
      30,</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%">&nbsp;</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>2013</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>2012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>2012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>2012</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=Arial size=2>Revenues from continuing operations</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,335</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>16,476</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=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>10,311</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>6,824</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=2>Net income
      (loss) attributable to Ballard from<BR>continuing operations</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(7,936</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16,809</FONT></TD>
    <TD noWrap align=left width="1%"><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>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(9,185</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(7,416</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=Arial size=2>Net income (loss) per share attributable to<BR>Ballard from
      continuing operations, basic and<BR>diluted</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(0.09</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(0.18</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=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(0.10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(0.09</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%" bgColor=#ffffff><FONT face=Arial size=2>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="1%" bgColor=#ffffff><FONT face=Arial size=2>92,233</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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>91,801</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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>89,269</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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>84,621</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR>
    <TD width="100%" colSpan=17>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>Mar
      31,</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>Dec
      31,</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>Sep
      30,</FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>Jun
      30,</FONT></TD>
    <TD style="TEXT-ALIGN: center" noWrap width="1%">&nbsp;</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%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>2012</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>2011</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>2011</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="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" colSpan=2><FONT face=Arial size=2>2011</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center" noWrap width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=Arial size=2>Revenues</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>10,079</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>16,973</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=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,071</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>13,595</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=2>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=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(8,660</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(7,969</FONT></TD>
    <TD noWrap align=left width="1%"><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>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>(8,337</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10,109</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" bgColor=#c0c0c0><FONT face=Arial size=2>Net income (loss) per share attributable to<BR>Ballard from
      continuing operations, basic and<BR>diluted</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(0.10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(0.09</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=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(0.10</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>(0.12</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="84%" bgColor=#ffffff><FONT face=Arial size=2>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="1%" bgColor=#ffffff><FONT face=Arial size=2>84,566</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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT face=Arial size=2>84,456</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#ffffff></TD></TR></TABLE>
<P align=right><FONT face="Arial" size=1>Page 9 of 24 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<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 from continuing operations.
Variations in our net loss for the above periods were affected primarily by the
following factors:</FONT></P>
<UL style="MARGIN-LEFT: 16px"><LI>
  <P align=justify><FONT face=Arial size=2><B>Revenues</B>: Variations in fuel
  cell revenues reflect the demand and timing of our customers&#146; fuel cell
  vehicle, bus and fuel cell product deployments as well as the demand and
  timing of their engineering services projects. Variations in fuel cell
  revenues also reflect the timing of work performed and the achievements of
  milestones under long-term fixed price contracts. Revenues were positively
  impacted in the first quarter of 2013 by $5.9 million and positively impacted
  in the third and fourth quarters of 2012 by $2.1 million and $3.0 million,
  respectively, as a result of our acquisition of Idatech&#146;s key assets and
  product lines as of August 1, 2012. Revenues were positively impacted in 2011
  by a manufacturing supply agreement with Daimler and a Daimler subsidiary
  which was completed in October 2011. Contract Automotive revenues of $9.3
  million (Q1-11: $2.9 million, Q2-11: $4.6 million, Q3-11: $1.8 million, and
  Q4-11: $0.1 million) and Fuel Cell Products revenues of $8.7 million (Q1-11:
  $2.4 million, Q2-11: $3.3 million, Q3-11: $2.6 million, Q4-11: $0.4 million)
  in 2011 were derived from this contract manufacturing agreement.</FONT></P>
  </LI><LI>
  <P align=justify><B><FONT face="Arial" size=2>Operating
  expenditures</FONT></B><FONT face="Arial" size=2>: Operating expenses were
  negatively impacted by restructuring charges of ($1.6) million in the third
  quarter of 2012 as a result of a 7% workforce reduction, and restructuring
  charges of ($0.4) million in the third quarter of 2011 due to a corporate
  leadership restructuring. Restructuring charges are recognized in general and
  administrative expense. </FONT></p><P 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>
  </LI><LI>
  <P align=justify><B><FONT face="Arial" size=2>Finance income
  (loss):</FONT></B><FONT face="Arial" size=2> The net loss for the first
  quarter of 2013 was negatively impacted by a charge of $1.2 million related to
  the settlement of a TPC funding obligation.</FONT></P>
  </LI><LI>
  <P align=justify><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 2012 and the fourth quarter of 2011 was negatively
  impacted by an impairment charge of ($0.6) million and ($1.7) million,
  respectively, related to the write-down of manufacturing equipment never put
  into use.</FONT></P>
  </LI><LI>
  <P align=justify><B><FONT face="Arial" size=2>Impairment loss on
  goodwill</FONT></B><FONT face="Arial" size=2>: The net loss for the fourth
  quarter of 2012 was negatively impacted by an impairment charge of ($10.0)
  million related to a write-down of goodwill in our Fuel Cell Products segment.
  </FONT></P></LI></UL>
<P align=justify><B><FONT face="Arial" size=2>CASH FLOWS<BR></FONT></B><FONT face="Arial" size=2>Cash, cash equivalents and short-term investments were
$32.3 million (or $27.5 million net of Operating Facility draws of $4.8 million)
at March 31, 2013, compared to $21.8 million (or $12.5 million net of Operating
Facility draws of $9.4 million) at December 31, 2012. The increase in cash, cash
equivalents and short-term investments of $10.5 million in 2013 was driven by
net proceeds on sale of the Material Products segment of $9.0 million, Offering
net proceeds of $6.8 million, Anglo Note financing of $4.0 million and the Azure
investment in Dantherm Power of $2.0 million. These inflows were partially
offset by a net loss (excluding non-cash items) of ($6.2) million, by net
working capital requirements of ($0.8) million, and by repayments against the
Operating Facility of ($4.4) million.</FONT></P>

<P align=right><FONT face="Arial" size=1>Page 10 of 24 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>For the three months ended March
31, 2013, cash used by operating activities was ($7.0) million, consisting of
cash operating losses of ($6.2) million and net working capital outflows of ($0.8) million. For
the three months ended March 31, 2012, cash used by operating activities was
($15.1) million, consisting of cash operating losses of ($6.4) million and net
working capital outflows of ($8.6) million. The $8.1 million reduction in cash
used by operating activities in the first quarter of 2013, as compared to the
first quarter of 2012, was driven by reduced working capital requirements of
$7.9 million. In the first quarter of 2013, net working capital cash outflows of
($0.8) million were driven by higher accounts receivable of ($5.0) million
primarily as a result of the timing of Telecom Backup Power revenues and the
related customer collections, partially offset by higher accounts payable and
accrued liabilities of $2.8 million due primarily to the accrual of the TPC
settlement, and by higher deferred revenue of $1.3 million as we received
Engineering Services receipts in advance of incurring the related contract work.
Working capital outflows of ($8.6) million in the first quarter of 2012 were
driven by higher accounts receivable of ($2.7) million as a result of the timing
of revenues and the related customer collections which were skewed towards the
last half of the year, increased inventory levels of ($2.1) million to support
expected higher product shipments in the remainder of the year, and by lower
accounts payable of ($3.3) million as a result of increased supplier payments
made for higher fourth quarter of 2011 inventory purchases.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Investing activities resulted in
cash inflows of $12.3 million for the three months ended March 31, 2013,
compared to cash inflows of $11.5 million for the corresponding period of 2012.
Changes in short-term investments resulted in cash inflows of $3.2 million for
the first quarter of 2013, compared to cash inflows of $11.3 million for the
first quarter of 2012. 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. Other Investing activities in the
first quarter of 2013 include net proceeds of $9.0 million from the disposition
of the former Material Products segment. Other investing activities in the first
quarter of 2012 consist primarily of proceeds on sale of $0.4 million for
previously impaired manufacturing equipment, less capital expenditures of ($0.1)
million.</font></p><P align=justify><FONT face="Arial" size=2>Financing activities resulted in cash inflows of $8.2 million for the
three months ended March 31, 2013, compared to cash inflows of $5.1 million for
the corresponding period of 2012. Financing activities in 2013 include net
Offering proceeds of $6.8 million, Anglo Note financing of $4.0 million, and
proceeds related to the Azure investment in Dantherm Power of $2.0 million.
These financing cash inflows in 2013 were partially offset by partial repayments
of ($4.4) million against our Operating Facility which is used to assist with
the financing of our working capital requirements. Financing activities in 2012
primarily represent advances, net of repayments, of $4.9 million on our
Operating Facility. Financing activities in 2012 also include proceeds on
convertible debenture financing from the Dantherm Power non-controlling
interests to Dantherm Power of $0.4 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 March 31, 2013, we had total
Liquidity of $27.5 million. We measure Liquidity as our net cash position,
consisting of the sum of our cash, cash equivalents and short-term investments
of $32.3 million, net of amounts drawn on our $10 million Canadian demand
revolving facility (&#147;Operating Facility&#148;) of $4.8 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></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 March
31, 2013, $2.3 million was outstanding
on the Leasing Facility.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 11 of 24 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>Our Liquidity objective is to
maintain cash balances sufficient to fund at least six quarters of forecasted
cash used by operating activities at all times. Our strategy to attain this
objective is to continue our drive to attain profitable operations that are
sustainable by executing a business plan aimed at continued focus on Fuel Cell
Products revenue growth, improving overall gross margins, minimizing Cash
Operating Costs, managing working capital requirements, and securing additional
financing to fund our operations as needed until we do achieve profitable
operations that are sustainable. As a result of our recent actions to bolster
our cash balances including the disposition of the Material Products division,
the equity Offering, and the issuance of the Anglo Note, we believe that we have
adequate liquidity in cash and working capital to meet this Liquidity objective
and to finance our operations. However, failure to achieve or maintain this
Liquidity objective will have a material adverse effect on our financial
condition and results of operations including our ability to continue as a going
concern. There are also various risks and uncertainties affecting our ability to
achieve this Liquidity objective including, but not limited to, the market
acceptance and rate of commercialization of our products, the ability to
successfully execute our business plan, and general global economic conditions,
certain of which are beyond our control. While we continue to make significant
investments in product development and market development activities necessary
to commercialize our products, and make increased investments in working capital
as we grow our business, our actual liquidity requirements will also vary and
will be impacted by 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 operating expense and 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>In addition to our existing cash
balances, there are currently 7.275 million warrants outstanding (expire March
27, 2018) that enable each warrant holder to purchase one additional common
share at a fixed price of $1.50 per share. In the event that any of these
warrants are ultimately exercised, our liquidity position would be augmented. We
may also choose to pursue additional liquidity through the issuance of debt or
equity in private or public market financings. To enable such an action, we
maintain a short form base shelf prospectus (&#147;Prospectus&#148;) filed in April 2012
in each of the provinces and territories of Canada, except Quebec, and a
corresponding shelf registration statement on Form F-10 (&#147;Registration
Statement&#148;) with the United States Securities and Exchange Commission. These
filings enable offerings of equity securities during the effective period of the
Prospectus and Registration Statements. However, no assurance can be given that
any such additional liquidity will be available or that, if available, it can be
obtained on terms favorable to the Company. </FONT></P>
<P align=justify><B><FONT face="Arial" size=2>2013 BUSINESS
OUTLOOK</FONT></B></P>
<P align=justify><FONT face="Arial" size=2>On a continuing operations basis,
we continue to expect: </FONT></P>
<UL><LI>
  <P align=justify><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>Revenue growth in 2013 in excess of 30% over 2012 (or at least $56.8
  million from $43.7 million in 2012); </FONT><I><FONT face="Arial" size=2>and</FONT></I></P>
  </LI><LI>
  <P align=justify><FONT face="Arial" size=2>Adjusted EBITDA improvement in
  2013 in excess of 50% from 2012 (or lower than ($11.1) million from ($22.1)
  million in 2012). </FONT><I><FONT face="Arial" size=2></FONT></I></P></LI></UL>

<P align=right><FONT face="Arial" size=1>Page 12 of 24 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<!-- B -->
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0></P>
<P align=justify><FONT face="Arial" size=2>Consistent with the past couple of
years, we expect a majority of our 2013 revenue to be realized in the second half of the
year. Our business revenue outlook for 2013 is based on our internal revenue
forecast which reflects an assessment of overall business conditions and takes
into account actual sales in the first quarter of 2013, sales orders received
for units and services to be delivered in 2013, and an estimate with respect to
the generation of new sales in each of our markets. Our 2013 business revenue
outlook is also supported by our 12-month order book of $44.3 million at March
31, 2013 ($36.8 million at December 31, 2012). The primary risk factors that
could cause us to miss our revenue guidance for 2013 are potential disruptions
in the Material Handling market as a result of our reliance on a single customer
in this market, and delays from forecast in terms of closing and shipping
expected sales orders primarily in our Telecom Backup Power and Engineering
Services markets.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The key drivers for the expected
improvement in Adjusted EBITDA for 2013 are expected increases in gross margins
driven primarily by the above noted overall increase in expected revenues,
supported by continued operating expense optimization and a resulting reduction
in Cash Operating Costs to the mid-$20 million range from $30.3 million in 2012.
Consistent with the expectation that a majority of our 2013 revenue will fall in
the last half of the year, Adjusted EBITDA is expected to be materially improved
in the last half of 2013, as compared to the first half of 2013.</FONT></P>
<P align=justify><FONT face="Arial" size=2>Our Adjusted EBITDA outlook for
2013 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
2013 is lower than expected gross margins due to (i) lower revenues from
forecast due to potential disruptions in the Material Handling market as a
result of our reliance on a single customer in this market, or unexpected delays
in terms of closing and shipping expected sales orders primarily in our Telecom
Backup Power and Engineering Services markets; (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 cost overruns or by lower than anticipated engineering services
contracts or government cost recoveries; or (ii) negative foreign exchange
impacts due to 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 $0.3 million to $0.4
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 2013 to be materially higher in the first
and second quarters of 2013, as compared to the third and fourth quarters of
2013. Cash used in operating activities in the first two quarters of 2013 is
expected to be negatively impacted by the buildup of inventory to support higher
product shipments in the third and fourth quarters, 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>Our cash flow from operations
outlook for 2013 is based on our internal net cash forecast and takes into
account our actual results for the first quarter of 2013 and our forecasted net
cash requirements for the balance of the year as a result of the above noted
Adjusted EBITDA forecast and our expectations for working capital requirements,
capital expenditures, and other investing, and financing activities for the
year. The primary risk factors that could cause us to miss our cash flow from
operations expectations for 2013 are lower than expected Adjusted EBITDA
performance as a result of the occurrence of any or all of the above noted risk
factors, and increased working capital requirements primarily as a result of (i)
higher than anticipated accounts receivable due to delays in the timing of
revenues and the related customer collections, (ii) unexpected changes in the
timing and amount of expected government grants and the related contract
payments; (iii) unexpected changes in the timing and mix of supplier purchases
and payments; and (iv) increased inventory levels due to unexpected changes in
the timing and mix of expected product shipments.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 13 of 24 </FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.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. At March 31,
2013, we did not have any outstanding foreign exchange currency contracts or
outstanding platinum forward purchase contracts.</FONT></P>
<P align=justify><FONT face="Arial" size=2>At March 31, 2013, 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>At March 31, 2013 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=2>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;&nbsp; </TD>
    <TD noWrap align=right width="4%" colSpan=2><B><FONT face="Arial" size=2>Total</FONT></B></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=2>Less
    than</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=2>1-3
    years</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=2>3-5
    years</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=2>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=2>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%"></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=2>years</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=2>Operating
      leases</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>$</FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>20,508</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>2,468</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>5,272</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>5,384</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face="Arial" size=2>7,384</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face="Arial" size=2>Capital leases</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><B><FONT face="Arial" size=2>19,542</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=2>1,884</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=2>3,933</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=2>3,165</FONT></TD>
    <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>10,560</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="74%" bgColor=#c0c0c0><FONT face="Arial" size=2>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=2>6,234</FONT></B></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=2>-</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>
    <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>&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=2>6,234</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="74%"><FONT face="Arial" size=2>Total contractual obligations</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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <STRONG>46,284</STRONG></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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,352</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,205</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>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,549</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
24,178</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 of $0.3 million
related primarily to purchases of capital assets at March 31, 2013. Capital
expenditures pertain to our regular operations and are expected to be funded
through cash on hand. </FONT></P>
<P align=justify><FONT face="Arial" size=2>Prior to January 15, 2013, we also
had previous funding obligations that were repayable through potential royalties
in respect of sales of certain fuel cell-based stationary power products under a
development program with the Canadian government agency, Technology Partnerships
Canada (&#147;TPC&#148;). Under the terms of the Utilities Development Program (Phase 2)
with TPC, total royalties were payable annually at 4% of revenue of such
products and limited to a total maximum repayment of $38.3 million Canadian. As
at January 15, 2013, a cumulative total of $5.3 million Canadian in royalty
repayments has been made to TPC for Phase 2. On January 15, 2013, we reached an
agreement with TPC to terminate the Company&#146;s obligation for all existing and
future potential royalties payable in respect of future sales of fuel cell based
stationary power products under the Utilities Development Program (Phase 2) in
exchange for a final repayment to TPC of $1.9 million Canadian.</FONT></P>
<P align=justify><FONT face="Arial" size=2>As at March 31, 2013, there were
no other significant changes in our contractual obligations and commercial
commitments from those reported in our Management&#146;s Discussion and Analysis for
the year ended December 31, 2012.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 14 of 24 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0> </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="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" noWrap align=left width="1%"></TD>
    <TD style="BORDER-TOP: #000000 1.5pt solid; TEXT-ALIGN: center" noWrap width="9%" colSpan=5><FONT face=Arial size=2>Three Months Ended March
      31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face=Arial size=2>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=2>2013</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=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=Arial size=2>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=2>$</FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=2>-</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=2>-</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=Arial size=2>Purchases</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=2>41</FONT></B></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=2>45</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=2>Finance expense on convertible
      debenture payable</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><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=2>88</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=2>54</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp;&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" noWrap align=left width="1%"></TD>
    <TD NOWRAP WIDTH="9%" COLSPAN="5" STYLE="border-top: #000000 1.5pt solid; text-align: right"><FONT face=Arial size=2>As at March 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="89%"><B><FONT face=Arial size=2>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=2>2013</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=2>2012</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=Arial size=2>Trade accounts payable</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=2>56</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=2>214</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=Arial size=2>Interest
      payable</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="3%"><B><FONT face=Arial size=2>492</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="3%"><FONT face=Arial size=2>199</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=2>Convertible debenture
      payable</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><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,053</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>2,051</FONT></TD></TR></TABLE>&nbsp;&nbsp; <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 1.5pt solid" noWrap align=left width="94%"><B><FONT face="Arial" size=2>OUTSTANDING SHARE DATA</FONT></B></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="4%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>As at April 29, 2013</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD NOWRAP STYLE="text-align: left; width: 94%"><FONT face="Arial" size=2>Common share outstanding</FONT></TD>
    <TD NOWRAP STYLE="text-align: right; width: 1%"></TD>
    <TD NOWRAP STYLE="text-align: right; width: 4%"><FONT face="Arial" size=2>99,199,633</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="94%" bgColor=#c0c0c0><FONT face="Arial" size=2>Options outstanding</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="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>7,437,971</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>CRITICAL ACCOUNTING POLICIES
AND KEY SOURCES OF ESTIMATION UNCERTAINTY </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>Our consolidated financial
statements are prepared in accordance with IFRS, which require us to make
estimates and assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities, income and expenses. Actual result
may differ from those estimates. 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 align=justify><B><I><FONT face="Arial" size=2>Critical Judgments in
Applying Accounting Policies: </FONT></I></B></P>
<P align=justify><FONT face="Arial" size=2>Critical judgments that we have
made in the process of applying our accounting policies and that have the most
significant effect on the amounts recognized in the consolidated financial
statements is limited to our assessment of the Corporation&#146;s ability to continue
as a going concern (See Note 2 (e) to our condensed consolidated interim
financial statements). </FONT></P>
<P align=justify><FONT face="Arial" size=2>Our significant accounting
policies are detailed in note 3 to our annual consolidated financial statements
for the year ended December 31, 2012, with the exception of the new accounting
standards adopted by the Corporation effective January 1, 2013 which are
detailed in Note 3 to the condensed consolidated interim financial
statements.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 15 of 24 </FONT></P>
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<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0> </P>
<P align=justify><B><I><FONT face="Arial" size=2>Key Sources of Estimation
Uncertainty: </FONT></I></B></P>
<P align=justify><FONT face="Arial" size=2>The following are key assumptions
concerning the future and other key sources of estimation uncertainty that have
a significant risk of resulting in a material adjustment to the reported amount
of assets, liabilities, income and expenses within the next financial
year.</FONT></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 and 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.
  <BR>&nbsp;</FONT>
  </LI><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 estimation 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=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 align=right><FONT face="Arial" size=1>Page 16 of 24 </FONT></P>
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<P align=justify><FONT face="Arial" size=2>During the three months ended
March 31, 2013 and 2012, there were no material adjustments to revenues relating
to revenue recognized in a prior period.</FONT></P>
<P 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 at least 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=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. Based on the impairment test
performed as at December 31, 2012 and our assessment of current events and
circumstances, we have concluded that no goodwill impairment test was required
for the three months ended March 31, 2013.</FONT></P>
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<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 ended March 31, 2013, we recorded
provisions to accrued warranty liabilities of $0.5</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>million for new
product sales, compared to $0.8 million for the three months ended March 31,
2012.</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
ended March 31, 2013 were adjusted downwards by a net amount of $0.3 million,
compared to a net adjustment downwards of $0.2 million for the three months
ended March 31, 2012. The adjustments to reduce accrued warranty liabilities
were primarily due to contractual expirations, changes 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 ended March 31, 2013, inventory provisions of
$0.1</FONT><B><FONT face="Arial" size=2> </FONT></B><FONT face="Arial" size=2>million were recorded as a charge to cost of product and service
revenues, compared to $0.1 million for the three months and year ended March 31,
2012.</FONT></P>
<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.</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=right><FONT face="Arial" size=1>Page 18 of 24 </FONT></P>
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<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 March
31, 2013 and 2012, 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>NEW AND FUTURE IFRS ACCOUNTING
POLICIES</FONT></B></P>
<P align=justify><B><U><FONT face="Arial" size=2>Recently Adopted Accounting
Policy Changes:</FONT></U></B><B><FONT face="Arial" size=2> </FONT></B></P>
<P align=justify><FONT face="Arial" size=2>As required by IFRS, we adopted
the following accounting standard changes effective January 1, 2013.</FONT></P>
<P align=justify><FONT face="Arial" size=2>IFRS 10 &#150; CONSOLIDATED FINANCIAL
STATEMENTS </FONT></P>
<P align=justify><FONT face="Arial" size=2>In May 2011, the IASB published
IFRS 10 &#147;Consolidated Financial Statements&#148; which is a replacement of SIC-12
&#147;Consolidation &#150; Special Purpose Entities&#148;, and certain parts of IAS 27
&#147;Consolidated and Separate Financial Statements&#148;. IFRS 10 uses control as the
single basis for consolidation, irrespective of the nature of the investee,
employing the following factors to identify control:</FONT></P>
<P align=justify><FONT face="Arial" size=2>a) Power over the
investee;</FONT></P>
<P align=justify><FONT face="Arial" size=2>b) Exposure or rights to variable
returns from involvement with the investee; </FONT></P>
<P align=justify><FONT face="Arial" size=2>c) The ability to use power over
the investee to affect the amount of the investor&#146;s returns.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The adoption of IFRS 10 did not
change our conclusions around control of our investees, and therefore no
adjustment to previous accounting for investees was required in the consolidated
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>In May 2011, the IASB published
IFRS 11 &#147;Joint Arrangements&#148; which supersedes IAS 31 &#147;Interests in Joint
Ventures&#148; and SIC-13 &#147;Jointly Controlled Entities &#150; Non-Monetary Contributions
by Venturers&#148;. IFRS 11 requires that joint ventures be accounted for using the
equity method of accounting and eliminates the need for proportionate
consolidation.</FONT></P>
<P align=justify><FONT face="Arial" size=2>We were not impacted by the adoption of IFRS 11. </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>In May 2011, the IASB published
IFRS 12 &#147;Disclosure of Interests in Other Entities&#148; which requires that an
entity disclose information on the nature of and risks associated with its
interests in other entities (i.e. subsidiaries, joint arrangements, associates
or unconsolidated structured entities) and the effects of those interests on its
financial statements.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The adoption of IFRS 12 did not
have a material impact on our consolidated financial statements.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 19 of 24 </FONT></P>
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<P align=justify><FONT face="Arial" size=2>IFRS 13 &#150; FAIR VALUE
MEASUREMENT</FONT></P>
<P align=justify><FONT face="Arial" size=2>In May 2011, the IASB published
IFRS 13 &#147;Fair Value Measurement&#148; to establish a single framework for fair value
measurement of financial and non-financial items. IFRS 13 defines fair value as
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 requires disclosure of certain information on fair
value measurements.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The adoption of IFRS 13 did not
have a material impact on our consolidated financial statements. In accordance
with IFRS 13, we have included additional fair value disclosures in our
condensed consolidated interim financial statements for the first quarter of
2013.</FONT></P>
<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>In June 2011, the IASB issued
amendments to IAS 19 &#147;Employee Benefits&#148;. Changes in defined benefit obligations
and plan assets are to be recognized in other comprehensive income when they
occur, thus eliminating the corridor approach and accelerating recognition of
past service cost. Net interest is to be recognized in net earnings and
calculated using the discount rate by reference to market yields at the end of
the reporting period on high quality corporate bonds. The actual return on plan
assets minus net interest is to be recognized in other comprehensive
income.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The adoption of IFRS 19 is not
expected to have a material impact on our financial statements as our accounting
policy for employee benefits for the presentation of pension expense and the
immediate recognition of actuarial gains and losses in other comprehensive
income is consistent with the requirements of the amended IAS 19 standard.
However, additional disclosures will now be required in relation to the revised
standard for the year ended December 31, 2013. Furthermore, the computation of
annual expense will now be based on the application of the discount rate used
for the calculation of the defined benefit obligation to the expected return on
plan assets, the impact of which is not expected to be material.</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>In June 2011, the IASB issued
amendments to IAS 1 &#147;Presentation of Financial Statements&#148;. Items of other
comprehensive income and the corresponding tax expense are required to be
grouped into those that will and will not subsequently be reclassified through
net earnings.</FONT></P>
<P align=justify><FONT face="Arial" size=2>The adoption of the amendments to
IAS 1 did not have a material impact on our financial statements. In accordance
with the amendments to IAS 1, we have modified our statement of profit or loss
and other comprehensive income in our condensed consolidated interim financial
statements for the first quarter of 2013. </FONT></P>
<P align=justify><B><U><FONT face="Arial" size=2>Future Accounting Policy
Changes:</FONT></U></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.
We do not expect to adopt any of these standards before their effective
dates.</FONT></P>
<P align=right><FONT face="Arial" size=1>Page 20 of 24 </FONT></P>
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<P align=justify><FONT face="Arial" size=2>IFRS 9 &#150; FINANCIAL INSTRUMENTS
</FONT></P>
<P align=justify><FONT face="Arial" size=2>In November 2009, the
International Accounting Standards Board (&#147;IASB&#148;) published IFRS 9 &#147;Financial
Instruments&#148;. This new standard simplifies the classification and measurement of
financial assets set out in IAS 39 &#147;Financial Instruments: Recognition and
Measurement&#148;. Financial assets are to be measured at amortized cost or fair
value. They are to be measured at amortized cost if the two following conditions
are met:</FONT></P>
<P align=justify><FONT face="Arial" size=2>a) The assets are held within a
business model whose objective is to collect contractual cash flows;
and</FONT></P>
<P align=justify><FONT face="Arial" size=2>b) The contractual cash flows are
solely payments of principal and interest on the outstanding principal.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>All other financial assets are to
be measured at fair value through net earnings. The entity may, if certain
conditions are met, elect to use the fair value option instead of measurement at
amortized cost. As well, the entity may choose upon initial recognition to
measure non-trading equity investments at fair value through comprehensive
income. Such a choice is irrevocable. </FONT></P>
<P align=justify><FONT face="Arial" size=2>In October 2010, the IASB issued
revisions to IFRS 9, adding the requirements for classification and measurement
of financial liabilities contained in IAS 39 and further points. For financial
liabilities measured at fair value through net earnings using the fair value
option, the amount of change in a liability&#146;s fair value attributable to changes
in its credit risk is recognized directly in other comprehensive income.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>In December 2011, the IASB
deferred the mandatory effective date of IFRS 9 to fiscal years beginning on or
after January 1, 2015. Early adoption is permitted under certain conditions. An
entity is not required to restate comparative financial periods for its
first-time application of IFRS 9, but must comply with the new disclosure
requirements. </FONT></P>
<P align=justify><FONT face="Arial" size=2>We intend to adopt IFRS 9 in our
financial statements for the annual period beginning on January 1, 2015. The
extent of the impact of adoption of IFRS 9 has not yet been determined.
</FONT></P>
<P align=justify><FONT face="Arial" size=2>AMENDMENTS TO OTHER IFRS
STANDARDS</FONT></P>
<P align=justify><FONT face="Arial" size=2>In addition, there have been
amendments to IAS 32 </FONT><I><FONT face="Arial" size=2>Financial
Instruments: Presentation</FONT></I><FONT face="Arial" size=2>. IAS 32
addresses inconsistencies when applying the offsetting requirements, and is
effective for annual periods beginning on or after January 1, 2014. We do not
expect these amendments to have a material impact on our financial statements.
</FONT></P>
<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=right><FONT face="Arial" size=1>Page 21 of 24 </FONT></P>
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<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, acquisition costs and financing charges. The following table shows a reconciliation
of operating expenses to Cash Operating Costs from continuing operations for the
three months ended March 31, 2013 and 2012: </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)</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" width="20%" colSpan=11><FONT face="Arial" size=2>Three months ended March 31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="79%"><B><FONT face="Arial" size=2>Cash Operating Costs</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="5%" colSpan=2><B><FONT face="Arial" size=2>2013</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="5%" colSpan=2><FONT face="Arial" size=2>2012</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="5%" colSpan=2><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>$ Change</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=2>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=2>$</FONT></B></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>10,227</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>10,772</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=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>(545</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="79%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;
      Stock-based compensation expense</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><B><FONT face="Arial" size=2>(915</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face="Arial" size=2>(843</FONT></TD>
    <TD noWrap align=left width="1%"><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="4%"><FONT face="Arial" size=2>(72</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp; Acquisition and integration
      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="4%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>(93</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>)</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="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>-</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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>(93</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="79%"><FONT face="Arial" size=2>&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="4%"><B><FONT face="Arial" size=2>(219</FONT></B></TD>
    <TD noWrap align=left width="1%"><B><FONT face="Arial" size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face="Arial" size=2>(219</FONT></TD>
    <TD noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp; Financing charges</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="4%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>-</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=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>-</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="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>-</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="79%"><FONT face="Arial" size=2>&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="4%"><B><FONT face="Arial" size=2>(774</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=2>)</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="4%"><FONT face="Arial" size=2>(772</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=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face="Arial" size=2>(2</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>Cash Operating
      Costs</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=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,226</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=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>9,157</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>(931</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>EBITDA and 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 expense, income taxes,
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. </FONT></P>
<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 from continuing operations for the three months ended March 31, 2013 and
2012: </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)</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" width="20%" colSpan=11><FONT face=Arial size=2>Three months ended March
  31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="79%"><B><FONT face=Arial size=2>EBITDA and Adjusted
      EBITDA</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="5%" colSpan=2><B><FONT face=Arial size=2>2013</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="5%" colSpan=2><FONT face=Arial size=2>2012</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="5%" colSpan=2><FONT face=Arial size=2></FONT><FONT face=Arial size=2>$
      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="79%" bgColor=#c0c0c0><FONT face=Arial size=2>Net loss from continuing operations</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="4%" 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="4%" 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="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=2>attributable to Ballard</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(7,936</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=2>(8,660</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=2>724</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff><FONT face=Arial size=2>Depreciation and amortization</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="4%" bgColor=#ffffff><B><FONT face=Arial size=2>1,199</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="4%" bgColor=#ffffff><FONT face=Arial size=2>1,360</FONT></TD>
    <TD noWrap align=left width="1%" 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="4%" bgColor=#ffffff><FONT face=Arial size=2>(161</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="79%" bgColor=#c0c0c0><FONT face=Arial size=2>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="4%" bgColor=#c0c0c0><B><FONT face=Arial size=2>427</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="4%" bgColor=#c0c0c0><FONT face=Arial size=2>414</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="4%" bgColor=#c0c0c0><FONT face=Arial size=2>13</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="79%" bgColor=#ffffff><FONT face=Arial size=2>Income taxes</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>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><B><FONT face=Arial size=2>-</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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=Arial size=2>-</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>&nbsp;</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><FONT face=Arial size=2>-</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="79%" bgColor=#c0c0c0><FONT face=Arial size=2>EBITDA attributable to Ballard</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=Arial size=2>(6,310</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=2>(6,886</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=2>576</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense</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="4%" bgColor=#ffffff><B><FONT face=Arial size=2>915</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff><FONT face=Arial size=2>843</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></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="4%" bgColor=#ffffff><FONT face=Arial size=2>72</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Acquisition and integration
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="4%" bgColor=#c0c0c0><B><FONT face=Arial size=2>93</FONT></B></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="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=2>-</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="4%" bgColor=#c0c0c0><FONT face=Arial size=2>93</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#ffffff><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Finance and other (income) loss</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="4%" bgColor=#ffffff><B><FONT face=Arial size=2>679</FONT></B></TD>
    <TD noWrap align=left width="1%" 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="4%" bgColor=#ffffff><FONT face=Arial size=2>(376</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=2>)</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="4%" bgColor=#ffffff><FONT face=Arial size=2>1,055</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="79%" bgColor=#c0c0c0><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Impairment of goodwill</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="4%" bgColor=#c0c0c0><B><FONT face=Arial size=2>-</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="4%" bgColor=#c0c0c0><FONT face=Arial size=2>-</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="4%" 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="79%" bgColor=#ffffff><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) on sale and impairment
      of</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="4%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="4%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="4%" bgColor=#ffffff></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="79%" bgColor=#ffffff><FONT face=Arial size=2>property, plant and
      equipment</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="4%" bgColor=#ffffff><B><FONT face=Arial size=2>(25</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><B><FONT face=Arial size=2>)</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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=Arial size=2>49</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=left width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#ffffff><FONT face=Arial size=2>(74</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#ffffff><FONT face=Arial size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="79%" bgColor=#c0c0c0><B><FONT face=Arial size=2>Adjusted EBITDA</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=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face=Arial size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (4,648</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face=Arial size=2>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=Arial size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG>(6,370</FONT></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="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="4%" bgColor=#c0c0c0><FONT face=Arial size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </STRONG>1,722</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%" bgColor=#c0c0c0></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 results from continuing operations for one-time transactional gains and
losses and impairment losses. Normalized Net Loss differs from the most
comparable GAAP measure, net loss attributable to Ballard from continuing
operations, 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 22 of 24 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0> </P>

<P align=justify><FONT face="Arial" size=2>The following table shows a
reconciliation of net loss attributable to Ballard from continuing operations to
Normalized Net Loss for the three months ended March 31, 2013 and 2012.
</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="80%"><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" width="19%" colSpan=10><FONT face="Arial" size=2>Three months ended March
  31,</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="80%"><B><FONT face="Arial" size=2>Normalized Net Loss</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="5%" colSpan=2><B><FONT face="Arial" size=2>2013</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="5%" colSpan=2><FONT face="Arial" size=2>2012</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="5%" colSpan=2><FONT face="Arial" size=2></FONT><FONT face="Arial" size=2>$ Change</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#c0c0c0><FONT face="Arial" size=2>Net loss
      attributable to Ballard from</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="4%" 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="4%" 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="4%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="80%" bgColor=#c0c0c0><FONT face="Arial" size=2>continuing
      operations</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>$</FONT></B></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>(7,936</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>)</FONT></B></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>(8,660</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2>724</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="80%"><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp; Settlement of TPC funding
      obligation</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><B><FONT face="Arial" size=2>1,197</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face="Arial" size=2>-</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face="Arial" size=2>1,197</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="80%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>Normalized Net
      Loss</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6,739</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><B><FONT face="Arial" size=2>)</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><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>(8,660</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>)</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face="Arial" size=2><STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </STRONG>1,921</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="80%"><B><FONT face="Arial" size=2>Normalized Net Loss per share</FONT></B></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%"><B><FONT face="Arial" size=2>$</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%"><B><FONT face="Arial" size=2>(0.07</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><B><FONT face="Arial" size=2>)</FONT></B></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="1%"><FONT face="Arial" size=2>$</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=right width="4%"><FONT face="Arial" size=2>(0.10</FONT></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="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="4%"><FONT face="Arial" size=2>0.03</FONT></TD></TR></TABLE><BR>
<P align=justify><B><FONT face="Arial" size=2>DISCLOSURE CONTROLS AND
PROCEDURES AND INTERNAL CONTROLS OVER FINANCIAL REPORTING</FONT></B></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 and the Chief Financial Officer, on a timely basis so that
appropriate decisions can be made regarding public disclosures. We have also
designed internal controls over financial reporting to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with IFRS. During
the three months ended March 31, 2013, there were no material changes in
internal control over financial reporting that have materially affected, or are
reasonably likely to materially affect, our 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 in our Annual Information Form which remain substantively unchanged.
The risks and uncertainties described 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, 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></P>
<P align=right><FONT face="Arial" size=1>Page 23 of 24 </FONT></P>
<P></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=right><IMG src="ballard_6k1x1x1.jpg" border=0> </P>


<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, liquidity, sources of capital and our 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>
<P align=right><FONT face="Arial" size=1>Page 24 of 24 </FONT></P>
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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
