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<SEC-DOCUMENT>0000912282-09-001110.txt : 20090806
<SEC-HEADER>0000912282-09-001110.hdr.sgml : 20090806
<ACCEPTANCE-DATETIME>20090806142419
ACCESSION NUMBER:		0000912282-09-001110
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090805
FILED AS OF DATE:		20090806
DATE AS OF CHANGE:		20090806

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:		09991147

	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_080509.htm
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body>
        <div style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid">
        </div>

        <div style="MARGIN-TOP: 12pt; FONT-SIZE: 14pt" align="center">
            <b>SECURITIES AND EXCHANGE COMMISSION</b>
        </div>

        <div style="FONT-SIZE: 12pt" align="center">
            <b>Washington, D.C. 20549</b>
        </div>

        <div style="MARGIN-TOP: 12pt; FONT-SIZE: 18pt" align="center">
            <b>Form&nbsp;6-K</b>
        </div>

        <div style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt" align="center">
            <b>Report of Foreign Private Issuer</b>
        </div>

        <div style="MARGIN-TOP: 12pt; FONT-SIZE: 12pt" align="center">
            <b>Pursuant to Rule&nbsp;13a-16 or 15d-16<br>
            of the Securities Exchange Act of 1934</b>
        </div>

        <div style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align="center">
            <b>For the month of&nbsp;August&nbsp;2009</b>
        </div>

        <div style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align="center">
            <b>Commission File Number: 000-31062</b>
        </div>

        <div style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align="center">
        </div>

        <div style="MARGIN-TOP: 12pt; FONT-SIZE: 24pt" align="center">
            <b><font style="BORDER-BOTTOM: #000000 1px solid">Oncolytics Biotech Inc.</font></b>
        </div>

        <div style="FONT-SIZE: 10pt" align="center">
            <i>(Translation of registrant&rsquo;s name into English)</i>
        </div>

        <div style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align="center">
            <b>Suite&nbsp;210, 1167 Kensington Crescent NW<br>
            Calgary, Alberta, Canada T2N 1X7</b>
        </div>

        <div style="FONT-SIZE: 10pt" align="center">
            <div style="MARGIN-TOP: 1px">
                <font style="BORDER-TOP: #000000 1px solid"><i>(Address of principal executive offices)</i></font>
            </div>
        </div>

        <div style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align="left">
            Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
        </div>

        <div align="center">
            <table style="FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">
                <!-- Begin Table Head -->

                <tr valign="bottom">
                    <td width="30%">&nbsp;</td>

                    <td width="5%">&nbsp;</td>

                    <td width="30%">&nbsp;</td>

                    <td width="5%">&nbsp;</td>

                    <td width="30%">&nbsp;</td>
                </tr>
                <!-- End Table Head --><!-- Begin Table Body -->

                <tr valign="bottom">
                    <td valign="top" align="center">&nbsp;</td>

                    <td>&nbsp;</td>

                    <td valign="top" align="center">Form&nbsp;20-F <font face="Wingdings">x</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form&nbsp;40-F <font face="Wingdings">o</font> </td>

                    <td>&nbsp;</td>

                    <td valign="top" align="center">&nbsp;</td>
                </tr>
                <!-- End Table Body -->
            </table>
        </div>

        <div style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align="left">
            Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(1): <font face="Wingdings">o</font>
        </div>

        <div style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align="left">
            <b>Note:</b> Regulation&nbsp;S-T Rule&nbsp;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.
        </div>

        <div style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align="left">
            Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation&nbsp;S-T Rule&nbsp;101(b)(7): <font face="Wingdings">o</font>
        </div>

        <div style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align="left">
            <b>Note:</b> Regulation&nbsp;S-T Rule&nbsp;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.
        </div>

        <div style="MARGIN-TOP: 10pt; FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid">
        </div>

        <div style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 2pt solid">
        </div>

        <p style="FONT-SIZE: 10pt" align="center"><!-- Folio -->&nbsp;<!-- /Folio --></p>
        <!-- PAGEBREAK -->

        <p></p>

        <div style="FONT-FAMILY: 'Times New Roman',Times,serif">
            <!-- link1 "SIGNATURES" -->

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

            <div style="MARGIN-TOP: 18pt; FONT-SIZE: 10pt" align="center">
                <b>SIGNATURES</b>
            </div>

            <div style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align="left">
                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.
            </div>

            <table style="FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td width="48%">&nbsp;</td>

                    <td width="1%">&nbsp;</td>

                    <td width="1%">&nbsp;</td>

                    <td width="35%">&nbsp;</td>

                    <td width="15%">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="top" align="left">&nbsp;</td>

                    <td align="left" colspan="3"><b>Oncolytics Biotech Inc.</b><br>
                    (Registrant)<br>
                    &nbsp;</td>

                    <td>&nbsp;</td>
                </tr>

                <tr>
                    <td align="left">Date: August 6, 2009&nbsp;</td>

                    <td valign="top">By:&nbsp;&nbsp;</td>

                    <td style="BORDER-BOTTOM: #000000 1px solid" align="left" colspan="2">/s/ Doug Ball &nbsp;</td>

                    <td>&nbsp;</td>
                </tr>

                <tr>
                    <td align="left">&nbsp;</td>

                    <td>&nbsp;</td>

                    <td align="left" colspan="2">Doug Ball&nbsp;</td>

                    <td>&nbsp;</td>
                </tr>

                <tr>
                    <td align="left">&nbsp;</td>

                    <td>&nbsp;</td>

                    <td align="left" colspan="2">Chief Financial Officer&nbsp;</td>

                    <td>&nbsp;</td>
                </tr>
            </table>

            <p style="FONT-SIZE: 10pt" align="center"><!-- Folio -->&nbsp;<!-- /Folio --></p>
        </div>
        <!-- PAGEBREAK -->

        <p></p>
        <hr noshade>

        <p></p>

        <h5 style="PAGE-BREAK-BEFORE: always" align="left">&nbsp;</h5>

        <p></p>

        <table style="FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="48%">&nbsp;</td>

                <td width="1%">&nbsp;</td>

                <td width="1%">&nbsp;</td>

                <td width="35%">&nbsp;</td>

                <td width="15%">&nbsp;</td>
            </tr>
        </table>
        <!-- link1 "EXHIBIT INDEX" -->

        <div style="MARGIN-TOP: 18pt; FONT-SIZE: 10pt" align="center">
            <b>EXHIBIT INDEX</b>
        </div>

        <div align="center">
            <table style="FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%" border="0">
                <!-- Begin Table Head -->

                <tr valign="bottom">
                    <td width="3%">&nbsp;</td>

                    <td width="3%">&nbsp;</td>

                    <td width="94%">&nbsp;</td>
                </tr>

                <tr style="FONT-SIZE: 8pt" valign="bottom">
                    <td nowrap align="left"><b>Number</b></td>

                    <td>&nbsp;</td>

                    <td nowrap align="left"><b>Description</b></td>
                </tr>

                <tr style="FONT-SIZE: 6pt">
                    <td>&nbsp;</td>

                    <td>&nbsp;</td>

                    <td>
                    </td>
                </tr>
                <!-- End Table Head --><!-- Begin Table Body -->

                <tr valign="bottom">
                    <td valign="top">
                        <div style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">
                            99.1
                        </div>
                    </td>

                    <td>&nbsp;</td>

                    <td valign="top" align="left">Amended Second Quarter US GAAP Note No. 9</td>
                </tr>
            </table>
        </div>
        <br>

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

        <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
            <hr width="100%" noshade>
        </div>
        <!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->

        <p align="center"><font face="Times New Roman, Times, Serif" size="2"><b>EXPLANATORY NOTE</b> </font></p>
        <!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->

        <p><font face="Times New Roman, Times, Serif" size="2">The following Amended Reconciliation of Canadian GAAP to US GAAP is being furnished to correct the basic and diluted loss per common share for the three-month period ended June 30, 2008, as reported in the Report of Foreign Issuer on Form 6-K as furnished to the Commission on July 31, 2009. There have been no other changes on the previously furnished reconciliation. </font></p>
        <br>
        <br>

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

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

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="right"><strong><font size="2">EXHIBIT 99.1</font></strong></p>

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

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

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

        <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 size="3">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 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 size="2">June 30, 2009 </font><i><font size="2">(unaudited)</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"></p>
        </div>

        <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 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 size="2"><b><font size="2">RECONCILIATION OF CANADIAN GAAP TO US GAAP</font></b></font></b></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font 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="660" 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="top" width="84" rowspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Three<br>
                        Month<br>
                        Period<br>
                        Ending June 30, 2009</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">$</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="top" width="84" rowspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Three<br>
                        Month<br>
                        Period Ending June 30, 2008</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font size="2">$</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.75in" valign="bottom" width="86">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Six Month Period Ending June 30, 2009</font></b></p>

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

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.75in" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Six Month Period Ending<br>
                        June 30, 2008</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">$</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; HEIGHT: 0.75in" valign="top" width="96" rowspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">Cumulative from inception on April 2, 1998 to June 30, 2009</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font 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 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; HEIGHT: 22.5pt" valign="top" width="86">
                        <p style="MARGIN-TOP: 0pt; 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; HEIGHT: 22.5pt" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">&nbsp;</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 size="2">Net loss - 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 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="84">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">4,334,757</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">5,254,530</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="86">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">8,292,403</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">8,648,903</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">110,849,154</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"><font 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 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="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font 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="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font 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="86">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">(180,750)</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(180,750)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 3.95pt; PADDING-LEFT: 3.95pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(3,615,000)</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 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 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="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font 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="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font 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="86">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font 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="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font 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="96">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 5.65pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font 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 size="2">Net and comprehensive loss - 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="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">4,244,382</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="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">5,164,155</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="86">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 2.85pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">8,111,653</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="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">8,468,153</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="96">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">108,349,154</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 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="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">(0.09)</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="84">
                        <p style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(0.13)</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="86">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><b><font size="2">(0.18)</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="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">(0.21)</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="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">&mdash;</font></p>
                    </td>
                </tr>
            </table>
        </div>

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

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font 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: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font 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="546" 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="48">
                        <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: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">June 30, 2009</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">$</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: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">December 31, 2008</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">$</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="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" valign="top" width="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><br>
                        <b><font 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="bottom" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font 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="bottom" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">US</font></b><br>
                        <b><font size="2">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="bottom" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font 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="bottom" width="78">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><b><font size="2">US</font></b><br>
                        <b><font size="2">GAAP</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="top" width="186">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font 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="48">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font 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: 0pt; TEXT-ALIGN: right"><font 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="78">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font 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="78">
                        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font size="2">180,750</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: 0pt; TEXT-ALIGN: right"><font 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 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="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font 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: right"><b><font size="2">13,369,982</font></b></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: right"><b><font size="2">10,869,982</font></b></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: right"><font size="2">13,349,801</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: right"><font size="2">10,849,801</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 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="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font 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: right"><b><font size="2">110,849,154</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: right"><b><font size="2">108,349,154</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: right"><font size="2">102,556,751</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: right"><font size="2">100,237,501</font></p>
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        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.25in; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="3">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 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 size="2">June 30, 2009 </font><i><font size="2">(unaudited)</font></i></p>

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

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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">1.</font></b></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">&ldquo;Push-Down&rdquo; Accounting and In Process Research and Development</font></b></p>
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        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.25in; TEXT-ALIGN: justify"><font 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 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>

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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">2.</font></b></p>
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                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">Presentation of Stock Based Compensation Expense</font></b></p>
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        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.25in; TEXT-ALIGN: justify"><font 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 $8,544 and $20,181 for the three and six month periods ending June 30, 2009, respectively (June 30, 2008 &ndash; $18,023 and $37,616, respectively) with a
        corresponding increase in research and development expenses. Cumulative from inception stock based compensation would be reduced by $4,789,025 and cumulative from inception research and development and operating expenses would increase by $2,755,305 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 size="2">Contingencies</font></b></p>

        <p style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font 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 size="2">As of September 30, 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 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: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font 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 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 </font></p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="3">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 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 size="2">June 30, 2009 </font><i><font size="2">(unaudited)</font></i></p>

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        <p style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">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: 10pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">We have evaluated subsequent events through to July 28, 2009, which represents the date the financial statements were issued. We have not evaluated any subsequent events after that date.</font></p>

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