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statements include the accounts of the Company and its wholly-owned subsidiary, MetasStat BioMedical, Inc., a Delaware corporation.
All significant intercompany balances and transactions have been eliminated in consolidation.&amp;#160; These&amp;#160;interim financial
statements have been prepared in conformity with generally accepted accounting principles (&amp;#147;GAAP&amp;#148;) in the United States
consistent with those applied in, and should be read in conjunction with, the Company&amp;#146;s audited consolidated financial statements
and related footnotes for the year ended February 28, 2013 included in the Company&amp;#146;s Annual Report on Form 10-K as filed
with the United States Securities and Exchange Commission (&amp;#147;SEC&amp;#148;) on May 28, 2013. These financial statements reflect
all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair
presentation of the Company&amp;#146;s financial position as of May 31, 2013 and its results of operations and cash flows for the
interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year. These
interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements
and allowed by the relevant SEC rules and regulations; however, the Company believes that its disclosures are adequate to ensure
that the information presented is not misleading. Certain amounts in prior periods have been reclassified to conform to current
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on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal
course of business. As of May 31, 2013, the Company has an accumulated deficit of $6,681,563. The continuation of the Company as
a going concern is dependent upon continued financial support from its shareholders, the ability of the Company to obtain necessary
equity and/or debt financing to continue operations, and the attainment of profitable operations. These factors raise substantial
doubt regarding the Company&amp;#146;s ability to continue as a going concern. These financial statements do not include any adjustments
to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting.  The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.</ElementDefenition><ElementReferences>Reference 1: http://www.xbrl.org/2003/role/presentationRef

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&lt;p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;These financial statements have been prepared
on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal
course of business. As of May 31, 2013, the Company has an accumulated deficit of $8,184,422. The continuation of the Company as
a going concern is dependent upon continued financial support from its shareholders, the ability of the Company to obtain necessary
equity and/or debt financing to continue operations, and the attainment of profitable operations. These factors raise substantial
doubt regarding the Company&amp;#146;s ability to continue as a going concern. The Company cannot make any assurances that additional
financings will be completed on a timely basis, on acceptable terms or at all. If the Company is unable to complete a debt or equity
offering, or otherwise obtain sufficient financing when and if needed, it would negatively impact it&amp;#146;s business and operations,
which could cause the price of its common stock to decline. It could also lead to the reduction or suspension of the Company&amp;#146;s
operations and ultimately force the Company to go out of business. These financial statements do not include any adjustments to
the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern.&lt;/p&gt;



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