Financial Statements

Auditor's Report

To the Shareholders of GLG Life Tech Corporation:

We have audited the consolidated balance sheet of GLG Life Tech Corporation as at December 31, 2007 and 2006 and the consolidated statements of income and comprehensive income, retained earnings and cash fl ow for the year then ended. These consolidated fi nancial statements are the responsibility of the management. Our responsibility to express an opinion on these consolidated fi nancial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the consolidated fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the consolidated fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall consolidated fi nancial statement presentation.

In our opinion, these consolidated fi nancial statements present fairly, in all material respects, the fi nancial position of the corporation as at December 31, 2007 and 2006 and the results of their operations and cash fl ows for the year then ended in accordance with Canadian generally accepted accounting principles.

CERTIFIED GENERAL ACCOUNTANTS

Calgary, Alberta, Canada

March 1, 2008