Financial Statements of

LABRADOR TECHNOLOGIES INC.

Six months ended April 30, 2009 and 2008

Unaudited Interim Financial Statements

In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the
Corporation discloses that its auditors, KPMG LLP, have not reviewed the unaudited financial statements for
the sic month period ended April 30, 2009.

Notice to the Reader of the Interim Financial Statements

The interim financial statements of Labrador Technologies Inc., consisting of the interim balance sheet, the
interim statement of operations and deficit, and the interim statement of cash flows for the six month period
ended April 30, 2009 are the responsibility of the Corporation’s management.

The interim financial statements have been prepared by management and include the appropriate accounting
principles, judgments and estimates necessary to prepare these interim financial statements in accordance
with Canadian generally accepted accounting principles. In addition, these interim financial statements have
been reviewed and have been approved by the Corporation’s Audit Committee and Board of Directors.

H. Ronald Sterne Jeffrey Howe

President & Chief Executive Officer Chief Financial Officer
Labrador Technologies Inc. Labrador Technologies Inc.

June 29, 2009

LABRADOR TECHNOLOGIES INC.
Balance Sheets
(Unaudited)

April 30 October 31
2009 2008

Assets

Current assets:
Cash and cash equivalents $ 10,846 $ 107,239
Accounts receivable 11,394 9,786
Prepaid expenses 11,162 16,904

33,402 133,929

Property and equipment 44,046 34,400

$ 77,448 $ 168,329

Liabilities and Shareholders’ Equity

Current liabilities:
Accounts payable and accrued liabilities $ 400,008 $ 113,558
Loans payable (note 7) 87,500 -
Deferred revenue 2,083 -

489,591 113,558

Shareholders' equity:
Common shares (note 3) 8,134,566 7,827,902
Share purchase warrants (note 3) 135,466 135,466
Contributed surplus (note 3) 649,648 564,517
Deficit (9,331,823) (8,473,114)

(412,143) 54,771

Going concern (note 1)

Subsequent events (note 6)

$ 77,448 $ 168,329

See accompanying notes to financial statements.

On behalf of the Board:

H. Ronald Sterne George Wilson

Director Director
LABRADOR TECHNOLOGIES INC.
Statements of Operations and Deficit
(Unaudited)

Three months ended Six months ended

April 30 April 30 April 30 April 30
2009 2008 2009 2008
Income:
Licence fees $ 2,500 — 4,375 —

Expenses:
General and administrative 131,560 103,742 246,904 185,892
Computer and related costs 175,923 86,041 355,403 165,853
Sales and marketing 88,577 66,722 168,634 127,323
Stock-based compensation (note 3) 82,113 4,009 85,131 5,703
Amorization 3,510 4,268 7,020 6,401
Interest income — — (8) (259)

481,683 264,782 863,084 490,913

Net loss (479,183) (264,782) (858,709) (490,913)

Deficit, at beginning of period (8,852,640) (7,563,014) (8,473,114) (7,336,883)

Deficit, at end of period (9,331,823) (7,827,796) (9,331,823) (7,827,796)

Net loss per share:

Basic and diluted $ (0.02) (0.01) (0.03) (0.02)

See accompanying notes to financial statements.

LABRADOR TECHNOLOGIES INC.
Statements of Cash Flows
(Unaudited)

Three months ended Six months ended

April 30 April 30 April 30 April 30
2009 2008 2009 2008

Cash provided by (used in):

Operating activities:
Net loss $ (479,183) $ (264,782) $ (858,709) $ (490,913)
Items not involving cash:
Stock-based compensation 82,113 4,009 85,131 5,703
Amortization 3,510 4,268 7,020 6,401
Shares for services performed 3,264 6,610 6,664 12,824

(390,296) (249,895) (759,894) (465,985)

Changes in non-cash working capital (note 4) 205,897 (54,835) 292,667 (35,328)
(184,399) (304,730) (467,227) (501,313)

Investing activities:
Property and equipment purchases (1,627) (1,019) (16,666) (1,019)

Financing activities:
Loans advanced from Directors (note 7) 87,500 — 87,500 —
Proceeds from sale of shares and warrants 100,000 750,000 300,000 850,000
(note 1)

187,500 750,000 387,500 850,000

Net increase (decrease) in cash and
cash equivalents 1,474 444,251 (96,393) 347,668

Cash and cash equivalents, beginning of period 9,372 67,184 107,239 163,767

Cash and cash equivalents, end of period $ 10,846 $ 511,435 $ 10,846 $ 511,435

Cash and cash equivalents consist of:

Cash 10,846 61,435 10,846 61,435
Short-term deposits — 450,000 — 450,000

$ 10,846 $ 511,435 $ 10,846 $ 511,435

See accompanying notes to financial statements.

LABRADOR TECHNOLOGIES INC.
Notes to Financial Statements
(Unaudited)

Six months ended April 30, 2009 and 2008

Labrador Technologies Inc. (the "Corporation") is engaged in the research and development, and
marketing of data retrieval technology for customers.

1. Going concern:

These financial statements have been prepared on the basis of accounting principles applicable to a
going concern, which assume that the Corporation will continue in operation for the foreseeable future
and will be able to realize its assets and discharge its obligations in the normal course of operations.

Over the course of the past few years, and since the Corporation’s non-compete with Qbyte Services
(now owned by P2 Energy Solutions) expired on September 30, 2005, the Company has been raising
capital in order to fund the development of its Web-based oil and gas data retrieval software, eTriever.
The Corporation has been successful at raising over $3.0 million from the period August 1, 2005 through
June 29, 2009, including $1.0 million in fiscal 2008 and $0.3 million to date in fiscal 2009. The
Corporation’s fundraising efforts, however, have been hampered a great deal by the recent global
economic crisis and, as at June 29, 2009, the Corporation had cash of $10,122, no long term debt and a
working capital deficiency of $0.6 million.

The Corporation’s ability to maintain its current level of operations is dependent upon its ability to
generate sufficient cash to fund its strategic business plan. To date, the Corporation has had minimal
revenue and is now, in the short term, entirely dependent on the raising of sufficient capital to discharge
its obligations, including the working capital deficiency of $0.6 million as at June 29, 2009. At April 30
2009, the Corporation had cash of $10,846, no long term debt and a working capital deficiency of
$456,189. During the first six months of fiscal 2009, the Corporation incurred a net loss of $858,709
(2008 - $490,913). During 2008, the Corporation incurred a net loss of $1,136,231 (2007 - $1,262,639)
and utilized funds in operations totaling $1,047,216 (2007 – $955,123). As at April 30, 2009, the
Corporation had received $300,000 in proceeds related to a private placement (note 6).

On June 9, 2009, the Corporation announced a non-brokered private placement for up to 40,000,000
units at a price of $0.05 per unit, for gross proceeds of $2,000,000. Each unit consists of one common
share and one-half common share purchase warrant with each warrant exercisable at a price of $0.10
per common share for a period of 2 years following the closing date. The private placement is subject to
the approval of the TSX Venture Exchange Inc. and the receipt of all necessary regulatory approvals.
The completion of the private placement is also subject to additional conditions precedent, including
satisfactory completion by the prospective investor of a due diligence review of Labrador, entering into a
formal share purchase agreement and three of the current five current board members of Labrador
resigning and being replaced by three nominees of the prospective investor. It is possible that these
conditions will not be met, and accordingly, there is no guarantee that this private placement will be
completed.

While management and the Board of Directors are considering all possible options in order to have
sufficient cash to discharge its obligations in the normal course of operations for the foreseeable future,
future operations are entirely dependent upon the raising of sufficient capital in the short-term. In
addition, future operations in the longer term will be dependent on the development and marketing of the
 Corporation’s Web-based data retrieval technology and the corresponding generation of future cash
flows, and the raising of capital, as required.
In the circumstances, management believes the going concern assumption is still appropriate for these
financial statements but is contingent upon successful completion of the current private placement and
the raising of capital in the future, as required. This assumption will be reviewed on an ongoing basis by
management and the Board of Directors. If the going concern assumption were not appropriate for these
financial statements, adjustments would be necessary to the carrying value of assets and liabilities,
reported revenues and expenses and the balance sheet classifications used.

2. Significant accounting policies:

The financial statements of the Corporation have been prepared by management in accordance with
Canadian generally accepted accounting principles. In the preparation of these financial statements,
management has made estimates and assumptions that affect the recorded amounts of certain of the
Corporation’s assets, liabilities, revenues and expenses and the disclosure of contingent assets and
liabilities. Significant areas requiring the use of management estimates include valuation of stock based
compensation and share purchase warrants. Actual results could differ from the estimates made.

The unaudited interim financial statements do not include all of the disclosure normally provided in
annual financial statements and accordingly, they should be read in conjunction with the audited financial
statements, including the notes thereto, as at and for the year ended October 31, 2008. The unaudited
interim financial statements follow the same significant accounting policies and methods of application as
the most recent audited financial statements of the Corporation as at and for the year ended October 31,
2008.
3. Share capital:

(a) Authorized:

Unlimited preferred shares, none of which were issued at January 31, 2009, Series A and Series B;
and Unlimited common shares.

(b) Common shares issued:

Six months ended Year ended

April 30, 2009 October 31, 2008
Number of Number of
Common shares shares Amount shares Amount

Balance, beginning of period 25,215,010 $ 7,827,902 20,808,872 $ 6,840,197

Sale of units — — 4,000,000 958,170
Shares for services performed 51,794 6,664 114,138 22,035
Exercise of options — — 40,000 4,800
Finder fees shares issued — — 252,000 63,000
Share issue costs — — — (63,000)
Transfer from contributed surplus
on exercise of stock options — — — 2,700
Balance 25,266,804 7,834,566 25,215,010 7,827,902
Subscriptions received
(see below) 3,000,000 300,000 — —

Balance, end of period 28,266,804 $ 8,134,566 25,215,010 $ 7,827,902

On February 17, 2009, the Corporation announced the terms of a private placement for between 100,000
and 20,000,000 units at a price of $0.10 per unit which closed on May 12, 2009. Each unit consists of
one common share and one-half share purchase warrant. Each whole share purchase warrant entitles
the holder to purchase one common share of the Corporation at $0.20 per share and expires one year
from the closing date of the private placement. As at April 30, 2009, the Corporation had received signed
subscription agreements for 3,000,000 units and had received $300,000 in proceeds.

(c) Share purchase warrants issued:

Six months ended Year ended

April 30, 2009 October 31, 2008
Number of Number of
Warrants warrants Amount warrants Amount

Balance, beginning of period 2,803,555 $ 135,466 803,555 $ 93,636

Sale of units — — 2,000,000 41,830
Exercise of warrants — — — —
Expired warrants — — — —
Balance, end of period 2,803,555 $ 135,466 2,803,555 $ 135,466

(d) Stock option plan:

The Corporation has a stock option plan for its directors, officers, consultants and employees.
Details of the stock options outstanding and exercisable under this plan were as follows:

Weighted average
Number Exercise price exercise price

Outstanding at October 31, 2008 1,275,000 $ 0.35 – 0.50 $ 0.44

Granted 2,250,000 $ 0.10 – 0.25 0.12
Cancelled (250,000) 0.50 0.50
Outstanding at April 30, 2009 3,275,000 $ 0.10 – 0.50 $ 0.24

Weighted
average
Number remaining
of contractual
Exercise price Options life (months)

$ 0.43 765,000 3
0.50 160,000 21
0.35 100,000 23
0.25 250,000 34
0.10 2,000,000 35
Stock options outstanding at April 30, 2009 3,275,000 26
Exercisable at April 30, 2009 1,445,000 16
 (e) Stock-based compensation:

During the six month period ended April 30, 2009, 2,250,000 stock options (2008 – 260,000) were
granted to employees, officers, consultants and directors of the Corporation. The fair value of stock
options granted was estimated using the Black-Scholes option-pricing model with the following
assumptions:

Issued in the Issued in the

period ended year ended
Apr 30 Oct 31
2009 2008

Dividend yield 0% 0%
Expected volatility 90% 90%
Risk free rate of return 5% 5%
Expected option life 3 years 3 years
Weighted average option value $ 0.44 $ 0.44

(f) Contributed surplus:

Apr 30, 2009 Oct 31, 2008

Beginning of period $ 564,517 $ 554,083

Stock-based compensation 85,131 13,134
Expired warrants — —
Exercise of options — (2,700)
End of period $ 649,648 $ 564,517

(g) Per share amounts:

The weighted average number of common shares outstanding during the six month period ended
April 30, 2009 was 25,237,566 (2008 – 21,003,669).
There was no dilutive effect of options and warrants for the three month periods ended April 30, 2009
and 2008.
4. Supplemental cash flow disclosure:

Changes in non-cash working capital are as follows:

3 months ended 6 months ended

April 30 April 30
2009 2009

Accounts receivable and prepaid expenses $ 465 $ 4,134

Accounts payable and accrued liabilities 207,932 286,450
Deferred revenue (2,500) 2,083
$ 205,897 $ 292,667
5. Fair values:

As at April 30, 2009, the fair values of the Corporation’s monetary assets and liabilities approximated
their carrying values due to the short term maturity of these items.
6. Subsequent events:

On June 9, 2009, the Corporation announced a non-brokered private placement for up to 40,000,000
units at a price of $0.05 per unit, for gross proceeds of $2,000,000. Each unit consists of one common
share and one-half common share purchase warrant with each warrant exercisable at a price of $0.10
per common share for a period of 2 years following the closing date. The private placement is subject to
the approval of the TSX Venture Exchange Inc. and the receipt of all necessary regulatory approvals.
The completion of the private placement is also subject to additional conditions precedent, including
satisfactory completion by the prospective investor of a due diligence review of Labrador, entering into a
formal share purchase agreement and three of the current five current board members of Labrador
resigning and being replaced by three nominees of the prospective investor. It is possible that these
conditions will not be met, and accordingly, there is no guarantee that this private placement will be
completed.
7. Loans payable:

On March 10, 2009, a director of the Corporation loaned the Corporation $62,500 bearing interest at 12%
per annum and collateralized by a general security agreement. The loan is repayable on October 10,
2009. In addition, on April 14, 2009, another director of the Corporation loaned the Corporation $25,000
bearing interest at 12% per annum. This loan is unsecured and is repayable on demand.
Corporate Information

For further information on Labrador Technologies Inc., please visit our website at
www.labradortechnologies.com.

Head Office
Labrador Technologies Inc.
350, 229 – 11th Avenue S.E.
Calgary, Alberta, Canada T2G 0Y1

Board of Directors
H. Ronald Sterne, Calgary, Alberta
George A. Wilson*, Q.C., Toronto, Ontario
K. Garry Cook*, Calgary, Alberta
Jeff Howe, Toronto, Ontario
Trevor Skinner*, Calgary, Alberta

*
- members of the Audit Committee

Executives and Officers

H. Ronald Sterne, President & Chief Executive Officer
Jeffrey Howe, Chief Financial Officer

Auditors
KMPG LLP
Chartered Accountants
2700, 205 – 5th Avenue S.W.
Calgary, Alberta, Canada T2P 4B9

Transfer Agent
Computershare Trust Company of Canada
Sixth Floor
530 – 8th Avenue S.W.
Calgary, Alberta, Canada T2P 3S8

Solicitors
Burstall Winger LLP
Barristers & Solicitors
Suite 3100 Home Oil Tower
324 – 8h Avenue S.W.
Calgary, Alberta, Canada T2P 2Z2

Stock Exchange
The TSX Venture Exchange
Trading Symbol: LTX