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<SEC-DOCUMENT>0000912282-08-000871.txt : 20080604
<SEC-HEADER>0000912282-08-000871.hdr.sgml : 20080604
<ACCEPTANCE-DATETIME>20080604151805
ACCESSION NUMBER:		0000912282-08-000871
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080603
FILED AS OF DATE:		20080604
DATE AS OF CHANGE:		20080604

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ONCOLYTICS BIOTECH INC
		CENTRAL INDEX KEY:			0001129928
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31062
		FILM NUMBER:		08880367

	BUSINESS ADDRESS:	
		STREET 1:		1167 KENSINGTON CRES NW SUITE 210
		STREET 2:		CALGARY ALBERTA CANADA T2N 1X7
		CITY:			ALBERTA CANADA
		STATE:			A0
		ZIP:			00000
		BUSINESS PHONE:		4036707380

	MAIL ADDRESS:	
		STREET 1:		210 - 1167 KENSINGTON CRES NW
		CITY:			CALGARY
		STATE:			A0
		ZIP:			T2N 1X7
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>oncolytics6k_060308.htm
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-FAMILY: 'Times New Roman'" bgcolor="#ffffff">
        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="3">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Washington, D.C. 20549</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="5">Form 6-K</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Report of Foreign Private Issuer</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Pursuant to Rule 13a-16 or 15d-16</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">of the Securities Exchange Act of 1934</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">For the month of</font> <strong><font size="2">June 2008</font></strong></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">Commission File Number 000-31062</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="5">Oncolytics Biotech Inc.</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">&nbsp;_________________________________________<br>
        </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><i><font size="2">(Translation of registrant&rsquo;s name into English)</font></i></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Suite 210, 1167 Kensington Crescent NW</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Calgary, Alberta, Canada T2N 1X7</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">&nbsp;&nbsp;_________________________________________<br>
        </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><i><font size="2">(Address of principal executive offices)</font></i></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font size="2">Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.</font></b></p>

        <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="214">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="9">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="214">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="214">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">Form 20-F&nbsp;&nbsp;&nbsp;&nbsp;<img src="ballotx.jpg"></font></p>
                </td>

                <td width="9">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td valign="top" width="214">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">Form 40-F&nbsp;&nbsp;&nbsp;&nbsp; <img src="ballot.jpg"></font></p>
                </td>
            </tr>
        </table>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2"><b>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):</b>&nbsp;&nbsp;&nbsp; <img src="ballot.jpg"></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2"><b>Note:</b> Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2"><b>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):</b> &nbsp;&nbsp;&nbsp;<img src="ballot.jpg"></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2"><b>Note:</b> Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant&rsquo;s &ldquo;home country&rdquo;), or under the rules of the home
        country exchange on which the registrant&rsquo;s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant&rsquo;s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font size="2">Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.</font></b></p>

        <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="214">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="9">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="214">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="214">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">Yes &nbsp;&nbsp;&nbsp;<img src="ballot.jpg"></font></p>
                </td>

                <td width="9">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td valign="top" width="214">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">No &nbsp;&nbsp;&nbsp; <img src="ballotx.jpg"></font></p>
                </td>
            </tr>
        </table>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">If &ldquo;Yes&rdquo; is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82 -</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- MARKER FORMAT-SHEET="Page Rule Double" FSL="Default" -->
        <hr align="left" width="100%" noshade size="4">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><b><font size="2">EXHIBIT INDEX</font></b></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">99.1&nbsp;&nbsp;&nbsp;&nbsp;US GAAP Reconciliation Note for First Quarter 2008</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- MARKER FORMAT-SHEET="Page Rule Double" FSL="Default" -->
        <hr align="left" width="100%" noshade size="4">
        <font size="2"><br>
        </font>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">SIGNATURES</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font 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>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="633" border="0">
            <tr>
                <td width="311">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="6">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="34">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="280">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="311">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="6">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td valign="top" colspan="3">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2"><b>Oncolytics Biotech Inc.</b><br>
                    (Registrant)</font></p>
                </td>
            </tr>

            <tr>
                <td width="311">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="6">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="34">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="280">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="311">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="6">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td valign="top" width="34">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td valign="top" width="280">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td width="311">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="6">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="34">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td width="280">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="311">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Date: &nbsp;&nbsp;June 4, 2008</font></p>
                </td>

                <td width="6">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td valign="top" width="34">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">By:</font></p>
                </td>

                <td width="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                </td>

                <td valign="top" width="280">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2"><u>/s/ Doug&nbsp;</u> <u>Ball&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Doug Ball</font></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2">Chief Financial Officer</font></p>
                </td>
            </tr>
        </table>

        <p>&nbsp;</p>

        <p>&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- *************************************************************************** --><!-- MARKER PAGE="sheet: 20; page: 20" -->
        <hr color="gray" noshade size="5">
    </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>ballot.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 ballot.jpg
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`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>3
<FILENAME>ballotx.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 ballotx.jpg
M_]C_X``02D9)1@`!`0$!+`$L``#_VP!#``@&!@<&!0@'!P<)"0@*#!0-#`L+
M#!D2$P\4'1H?'AT:'!P@)"XG("(L(QP<*#<I+#`Q-#0T'R<Y/3@R/"XS-#+_
MVP!#`0D)"0P+#!@-#1@R(1PA,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C(R
M,C(R,C(R,C(R,C(R,C(R,C(R,C(R,C+_P``1"``,``L#`2(``A$!`Q$!_\0`
M'P```04!`0$!`0$```````````$"`P0%!@<("0H+_\0`M1```@$#`P($`P4%
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M=G=X>7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
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M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"
M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF
M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$
MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4
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MQOJ>F+JEW'"MQ%%"MO/;1QVJE+7,EP9+>1HXBT[8DR<D;=HQFO2_"=]<:GX-
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J%0$K'(JYVJHSCL*U+"QM],TZVL+./R[6UB2&%-Q.U%`"C)Y.`!UH`__9
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>ex_1.htm
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-FAMILY: 'Times New Roman'" bgcolor="#ffffff">
        <div title="EE+ Page Header">
            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="right"><b><font size="3">EXHIBIT 99.1</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="right">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">Oncolytics Biotech Inc.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">NOTE TO CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif"><font size="2">March 31, 2008 <i>(unaudited)</i></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="480" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 12pt" valign="top" nowrap width="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">9.</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 12pt" valign="top" nowrap width="432">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">Reconciliation of Canadian GAAP to US GAAP</font></b></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">The consolidated financial statements of the Company are prepared in accordance with Canadian GAAP, which, in most respects, conforms to US GAAP. In preparing these interim statements the Company has included all adjustments which it believes are necessary for fair presentation and are all normal and recurring in nature. Significant differences between Canadian and US
        GAAP are as follows:</font></p>

        <p style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="552" border="0">
                <tr style="HEIGHT: 0.75in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.75in" valign="bottom" width="186">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.75in" valign="bottom" width="48">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.75in" valign="bottom" width="102" rowspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif"><font size="2"><b>Three Month Period Ending March 31, 2008</b><br>
                        $</font></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.75in" valign="bottom" width="102" rowspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif"><font size="2"><b>Three Month Period Ending March 31, 2007</b><br>
                        $</font></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.75in" valign="bottom" width="114" rowspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">Cumulative from inception on April 2, 1998 to March 31, 2008</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">$</font></b></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 22.5pt; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 22.5pt" valign="bottom" width="186">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 22.5pt" valign="bottom" width="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><br>
                        <b><font face="Times New Roman, Times, serif" size="2">Notes</font></b></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="186">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 9.55pt; TEXT-INDENT: -9.55pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Net loss for the period- Canadian GAAP</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="48">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(2)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font face="Times New Roman, Times, serif" size="2">3,324,241</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font face="Times New Roman, Times, serif" size="2">4,113,231</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="114">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">83,846,498</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="186">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 9.55pt; TEXT-INDENT: -9.55pt; TEXT-ALIGN: left">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 9.55pt; TEXT-INDENT: -9.55pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Amortization of intellectual property</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(1)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font face="Times New Roman, Times, serif" size="2">(90,375)</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font face="Times New Roman, Times, serif" size="2">(90,375)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="114">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(3,163,125)</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="186">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 9.55pt; TEXT-INDENT: -9.55pt; TEXT-ALIGN: left">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 9.55pt; TEXT-INDENT: -9.55pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Future income tax recovery</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(1)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font face="Times New Roman, Times, serif" size="2">&mdash;</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font face="Times New Roman, Times, serif" size="2">&mdash;</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="114">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">1,115,000</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="186">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 9.55pt; TEXT-INDENT: -9.55pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Net and comprehensive loss for the period - US GAAP</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="48">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font face="Times New Roman, Times, serif" size="2">3,233,866</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="right"><font face="Times New Roman, Times, serif" size="2">4,022,856</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="114">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">81,798,373</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 3.95pt; BORDER-TOP: black 2.25pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt solid" valign="bottom" width="186">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 9.55pt; TEXT-INDENT: -9pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Basic and diluted loss per common share - US GAAP</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 3.95pt; BORDER-TOP: black 2.25pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt solid" valign="bottom" width="48">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 3.95pt; BORDER-TOP: black 2.25pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt solid" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 33pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">(0.08)</font></b></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 3.95pt; BORDER-TOP: black 2.25pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt solid" valign="bottom" width="102">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(0.11)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 3.95pt; BORDER-TOP: black 2.25pt solid; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2.25pt solid" valign="top" width="114">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 27.75pt; TEXT-ALIGN: left">&nbsp;</p>

                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 31.5pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">&mdash;</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">There are no differences between Canadian GAAP and US GAAP in amounts reported as cash flows from (used in) operating, financing and investing activities.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr align="center" width="100%" noshade size="2">
        </div>

        <div title="EE+ Page Header">
            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">Oncolytics Biotech Inc.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">NOTE TO CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif"><font size="2">March 31, 2008 <i>(unaudited)</i></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">Balance sheet items in accordance with US GAAP are as follows:</font></p>

        <div align="left">
            <table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="540" border="0">
                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="186">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="60">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">March 31, 2008</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">December 31, 2007</font></b></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="186">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><br>
                        <b><font face="Times New Roman, Times, serif" size="2">Notes</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">Canadian GAAP</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif"><font size="2"><b>US</b><br>
                        <b>GAAP</b></font></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">Canadian GAAP</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif"><font size="2"><b>US</b><br>
                        <b>GAAP</b></font></font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="186">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Intellectual property</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="60">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(1)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="78">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 5.25pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">5,006,297</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 5.25pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">4,554,422</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 6.75pt" align="right"><font face="Times New Roman, Times, serif" size="2">5,026,540</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 6.75pt" align="right"><font face="Times New Roman, Times, serif" size="2">4,484,290</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="186">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Future income taxes</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(1)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">&mdash;</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">&mdash;</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0.5in" align="right"><font face="Times New Roman, Times, serif" size="2">&mdash;</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p align="right"><font face="Times New Roman, Times, serif" size="2">&mdash;</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="186">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Contributed surplus</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(1)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">10,396,555</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 5.25pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">7,896,555</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 1.5pt" align="right"><font face="Times New Roman, Times, serif" size="2">10,376,962</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 6.75pt" align="right"><font face="Times New Roman, Times, serif" size="2">7,876,962</font></p>
                    </td>
                </tr>

                <tr style="page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="186">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif" size="2">Deficit</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="60">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font face="Times New Roman, Times, serif" size="2">(1)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">83,846,498</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">81,798,373</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 1.5pt" align="right"><font face="Times New Roman, Times, serif" size="2">80,522,257</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 1.5pt" align="right"><font face="Times New Roman, Times, serif" size="2">78,564,507</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 12pt" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">1.</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 12pt" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font face="Times New Roman, Times, serif" size="2">&ldquo;Push-Down&rdquo; Accounting and In Process Research and Development</font></b></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.25in; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">Intellectual property of $2,500,000 recorded as a consequence of SYNSORB&rsquo;s acquisition of the Company&rsquo;s shares comprises intangible assets related to research and development activities. Under US GAAP, this would not be capitalized on acquisition.</font></p>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.25in; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">As a result of removing the $2,500,000 from intellectual property in 1999 for US GAAP purposes, the amortization of the intellectual property, the future income tax recovery, future income tax liability and contributed surplus amounts recorded for Canadian GAAP purposes have been reversed.</font></p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 12pt" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">2.</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 12pt" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font face="Times New Roman, Times, serif" size="2">Presentation of Stock Based Compensation Expense</font></b></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.25in; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">Under U.S. GAAP, stock based compensation expense is to be presented within the appropriate category of expenses on the statement of loss. As a result, stock based compensation on the statement of loss would be reduced by $19,593 for the three month period ending March 31, 2008 (March 31, 2007 &ndash; $21,396) and research and development and
        operating expenses would increase by $19,593 and $nil, respectively (2007 &ndash; $21,396 and $nil, respectively). Cumulative from inception stock based compensation would be reduced by $4,724,398 and cumulative from inception research and development and operating expenses would increase by $2,690,678 and $2,033,720, respectively. There is no impact on the Company&rsquo;s net loss.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font face="Times New Roman, Times, serif" size="2">Contingencies</font></b></p>

        <p style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">During 1999, the Company entered into an agreement that assumed certain obligations (the &ldquo;Assumption Agreement&rdquo;) in connection with a Share Purchase Agreement (the &ldquo;Agreement&rdquo;) between SYNSORB and the former shareholders of the Company to make milestone payments and royalty payments.</font></p>

        <p style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">As of March 31, 2008, a milestone payment for $1.0 million will be due within 90 days of the first receipt from an Appropriate Regulatory Authority, for marketing approval to sell REOLYSIN<sup>&reg;</sup> to the public or the approval of a new drug application for REOLYSIN<sup>&reg;</sup>.</font></p>

        <p style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">This milestone payment, when payable, will be accounted for as research and development expense and will not be deductible for tax purposes.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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        <div title="EE+ Page Header">
            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">Oncolytics Biotech Inc.</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font face="Times New Roman, Times, serif" size="2">NOTE TO CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font face="Times New Roman, Times, serif"><font size="2">March 31, 2008 <i>(unaudited)</i></font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">In addition to the milestone payment, payments may become due and payable in accordance with the Agreement upon realization of sales of REOLYSIN<sup>&reg;</sup>. In 2003, the Company completed amendments and revisions to the contingent obligations to its five founding shareholders with respect to these other contingent payments. The amendments and revisions reduced
        the amount and clarified the determination of potential obligations of the Company to these shareholders arising from the Agreement and Assumption Agreement entered into in 1999. Also, on September 23, 2004, the Company reached an agreement that further reduced its contingent payments to its founding shareholders through the cancellation of a portion of these contingent payments from one of its non-management founding shareholders. The consideration paid by the Company consisted of
        $250,000 cash and 21,459 common shares valued at $150,000 and has been recorded as research and development expense. The value of the common shares was based on the closing market price on September 23, 2004.</font></p>

        <p style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font face="Times New Roman, Times, serif" size="2">As a result of the amendments and the cancellation agreement, if the Company receives royalty payments or other payments as a result of entering into partnerships or other arrangements for the development of the reovirus technology, the Company is obligated to pay to the founding shareholders 11.75% (formerly in 2003 &ndash; 14.25% and 2002 &ndash; 20%) of the royalty
        payments and other payments received. Alternatively, if the Company develops the reovirus treatment to the point where it may be marketed at a commercial level, the payments referred to in the foregoing sentence will be amended to a royalty payment of 2.35% (formerly in 2003 &ndash; 2.85% and 2002 &ndash; 4%) of Net Sales received by the Company for such products.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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