Penola Inc. (the Company) was incorporated
in the State of Nevada on May 7, 2010, and its year-end is February 28. The Company is an exploration stage company and is currently
seeking new business opportunities.
These financial statements have been prepared on a going
concern basis. The Company has incurred losses since inception resulting in an accumulated deficit of $37,674 at February 29, 2012
and further losses are anticipated in the development of its business raising substantial doubt about the Companys ability
to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of the Company to generate
profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities
arising from normal business operations when they come due. Management has plans to seek additional capital through a private placement
of its common stock or further director loans as needed. These financial statements do not include any adjustments relating to
the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary
in the event the Company cannot continue.