Medicure Inc.
(a Development State Enterprise)
Item - 18 Reconciliation with United States Generally Accepted Accounting Principles
Years Ended May 31, 2005 and 2004
Nine months ended February 28, 2006 and 2005 (Unaudited)
(expressed in Canadan dollars)

          Medicure Inc. (the “Company”) follows generally accepted accounting principles in Canada (“Canadian GAAP”) in the preparation of its consolidated financial statements, which principles are different in some respects from those applicable in the United States (“U.S.GAAP”) and from practices prescribed by the United States Securities and Exchange Commission. The Company has prepared a reconciliation of the significant measurement differences between Canadian GAAP and U.S. GAAP in accordance with Item 17 of Form 20-F, which, for the years ended May 31, 2005 and 2004 is included in the Company’s 2005 consolidated financial statements in its Annual Report on Form 20-F and for the nine months ended February 28, 2006 and 2005 is included in the Company’s fiscal 2006 third quarter consolidated financial statements included in its periodic report on Form 6-K. For purposes of this registration statement on Form F-10, the Company is also required to reconcile additional significant disclosure differences in accordance with Item 18 of Form 20-F. The additional significant disclosure differences between Canadian GAAP and U.S. GAAP are set out below.

The financial information set out below as at February 28, 2006 and for the nine months ended February 28, 2006 and 2005 is unaudited; however, such information reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods presented.

(a) Accounts Payable and Accrued Liabilities:

As at:		February 28,		May 31,		May 31,
		2006		2005		2004
		(Unaudited)
Trade and other accounts payable and accrued liabilities	$	583,425	$	275,624	$	160,260
Accounts payable related to research and development		1,420,534		2,457,130		657,316
	$	2,003,959	$	2,732,754	$	817,576

(b) Accounts Receivable

As at		February 28,		May 31,		May 31,
		2006		2005		2004
		(Unaudited)
Interest receivable	$	35,606	$	97,917	$	234,009
SR&ED refundable tax credit receivable		440,025		341,887		–
GST receivable		34,433		28,389		16,924
Other		–		1,557		27,164
	$	510,064	$	469,750	$	278,097

(c) Contributed Surplus:

Period ended		February 28,		May 31,		May 31,		May 31,
		2006		2005		2004		2003
		(Unaudited)
Balance, beginning of period	$	996,301	$	491,423	$	105,375	$	–
Stock-based compensation on options granted in the
period		505,068		504,878		368,048		105,375
Agent’s stock-based compensation		42,759		–		–		–
Balance, end of period	$	1,544,128	$	996,301	$	491,423	$	105,375

(d) Foreign Exchange Gain (Loss)

Period ended		February 28,			February 28,		May 31,		May 31,		May 31,
		2006			2005		2005		2004		2003
		(Unaudited)			(Unaudited)
Foreign exchange gain (loss)	$	(83,453	)	$	11,079	$	64,413	$	–	$	–

(e) Stock-based Compensation:

Period ended		February 28,		February 28,		May 31,		May 31,		May 31,
		2006		2005		2005		2004		2003
		(Unaudited)		(Unaudited)
Stock-based compensation
expense recorded to:
Research and development	$	111,166	$	84,540	$	132,174	$	156,642	$	–
General and administrative		393,902		250,744		372,704		229,406		105,375
	$	505,068	$	335,284	$	504,878	$	386,048	$	105,375

(f)	Earnings per share
	The following securities could potentially dilute basic earnings per share but have been excluded from its calculation since their effect would be anti-dilutive:

	February 28,	February 28,	May 31,	May 31,	May 31,
	2006	2005	2005	2004	2003
	(Unaudited)	(Unaudited)
Options:
As at end of period	3,091,333	2,347,033	2,372,333	2,307,033	2,137,033
Warrants:
As at end of period	2,706,860	502,403	502,403	502,403	18,446,537
Total:
As at end of period	5,798,193	2,849,436	2,874,736	2,809,436	20,583,570

(g) Shareholders’ equity from inception until May 31, 2002:

CAPITAL STOCK
COMMON SHARES	Number of
	Shares			Amount
Share capital of Medicure since inception on September 15, 1997	9,500,000		$	100
Shares deemed to be issued pursuant to reverse takeover
accounting principles	6,908,200			1,482,384
Private placements for cash, on January 27, 2000 at $0.72 per share	694,444			500,000
Private placement for cash, on April 7, 2000, at $2.00 per share	1,000,000			2,000,000
Exercise of options for cash	224,000			44,800
Exercise of warrants for cash	345,698			175,913
Balance at May 31, 2000	18,672,342			4,203,197
Private placement for cash on May 31, 2001, at $1.00 per share,
net of share issue costs of $153,247	2,600,000			2,446,753
Exercise of options for cash	21,667			16,250
Exercise of warrants for cash	423,632			402,857
Balance at May 31, 2001	21,717,641			7,069,057
Private placement for cash on June 14, 2001, at $1.00 per share,
net of share issue costs of $153,247	200,000			200,000
Exercise of options for cash	8,333			6,250
Shares returned to treasury	(221,725	)		–
Public offering for cash on December 31, 2001 and January 31,
2002 at $0.65 per share, net of share issue costs of $1,195,998	15,384,615			8,804,002
Balance at May 31, 2002	37,088,864			16,079,309
CLASS A COMMON SHARES
Public offering for cash on February 28, 2000 at $1.25
per share, net of share issue costs of $220,373	1,280,000			1,379,627
Total capital stock at May 31, 2002	38,368,864		$	17,458,936

CONTRIBUTED SURPLUS

     No transactions to May 31, 2002

DEFICIT
Loss for the period from inception on September 15, 1997
to August 31, 1998, being deficit at August 31, 1998	$	240,366
Loss for the year ended August 31, 1999		252,752
Deficit at August 31, 1999		493,118
Loss for the period from September 1, 1999 to May 31, 2000		871,593
Deficit at May 31, 2000		1,364,711
Loss for the year ended May 31, 2001		3,232,010
Deficit at May 31, 2001		4,596,721
Loss for the year ended May 31, 2002		3,875,087
Deficit at May 31, 2002	$	8,471,808