UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q/A



|                                                               |                                                                             
|-------------------------------------------------------------- | ----------------------------------------------------------------------------
|þ                                                              | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
|                                                               | ACT OF 1934                                                                 
|For the quarterly period ended: July 31, 2008                 
|or                                                            
|                                                               |                                                                             
| ̈                                                              | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
|                                                               | ACT OF 1934                                                                 
|For the transition period from: _____________ to _____________

GENERAL METALS CORPORATION

(Exact name of registrant as specified in its charter)

|                             |              |                    
|---------------------------- | ------------ | -------------------
|Delaware                     | 000-30230    | 65-0488983         
|(State or Other Jurisdiction | (Commission  | (I.R.S. Employer   
|of Incorporation)            | File Number) | Identification No.)



615 Sierra Rose Drive, Suite 1, Reno NV , 89511

(Address of Principal Executive Office) (Zip Code)

775.583.4636

(Registrants telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)



|                                                                                                                                                                                                                                                                                                 |   |                                               |   |                           |   |  |  |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | - | --------------------------------------------- | - | ------------------------- | - |  |  |  | 
|Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the registrant was required                                          
|to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                                                                                                                                                                | þ | Yes                                           |  ̈ | No                       
|                                                                                                                                                                                                                                                                                                
|Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act
|                                                                                                                                                                                                                                                                                                 |  
|Large accelerated filer                                                                                                                                                                                                                                                                          |  ̈ |                                               |   | Accelerated filer         |  ̈ | 
|Non-accelerated filer                                                                                                                                                                                                                                                                            |  ̈ | (Do not check if a smaller reporting company) |   | Smaller reporting company | þ | 
|                                                                                                                                                                                                                                                                                                 |  
|Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the. Act)                                                                                                                                                                                          |  ̈ | Yes                                           | þ | No                       
|                                                                                                                                                                                                                                                                                                 |   |                                               |   |                          
|APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                
|Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the                                                                                                                                                 
|distribution of securities under a plan confirmed by a court.                                                                                                                                                                                                                                    |  ̈ | Yes                                           |  ̈ | No                       
|                                                                                                                                                                                                                                                                                                 |  
|APPLICABLE ONLY TO CORPORATE ISSUERS                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                
|Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.                                                                                                                                                                   
|107,454,098 common shares issued and outstanding as of September 8, 2008                                                                                                                                                                                                                        















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Explanatory Note

This Amendment No. 1 on Form 10-Q/A (the Amendment) amends General Metals Corporations Quarterly Report on Form 10-Q for the quarter ended July 31, 2008 (the Form 10-Q), as filed with the Securities and Exchange Commission on September 15, 2008, and is being filed solely to restate the financial statements to correct certain accounting errors identified by the Companys management and as a response to SEC Comment Letters dated March 13, 2008 and November 25, 2008. Based on these error corrections, the Companys management determined restatement of the interim and annual financial statements for the fiscal years ended April 30, 2008 and 2007 and the fiscal quarters ended July 31, 2008, October 31, 2008, and January 31, 2009 was appropriate. Note 3 to the financial information contained herein provides a detailed description of the error corrections that impact the quarters ended July 31, 2008 and 2007 and the inception to July 31, 2008 information. . In addition, certain amounts have been reclassified to conform to the presentation contained in our Form 10-K for the fiscal year April 30, 2009 inclusive of the restated and reclassified amounts for the fiscal year ended April 30, 2008.

Pursuant to Rule 12b-15 promulgated under the Securities Exchange Act of 1934, as amended, we have repeated the entire text of Item 1 of the Form 10-Q in this Amendment. However, there have been no changes to the text of such item other than the change stated in the immediately preceding paragraph.

This Amendment includes new certifications by our Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 as exhibits hereto.

Except as expressly set forth above, this Amendment does not, and does not purport to, amend, update or restate the information in any other item of the Form 10-Q or reflect any events that have occurred after the filing of the original Form 10-Q. Please refer to the Companys Current Reports on Form 8-K and Form 10-K for the period ended April 30, 2009 for such subsequent events or transactions.





2



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PART 1  FINANCIAL INFORMATION

Item 1. Financial Statements.

It is the opinion of management that the interim financial statements for the quarter ended July 31, 2008 include all adjustments necessary in order to ensure that the interim financial statements are not misleading.

General Metals Corporation

(An Exploration Stage Company)

Unaudited Consolidated Balance Sheets

|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------ | ---------- | ------------------------ | - | ---------- | -
|                                                                                                                                                                     |  | July 31,
2008
(Restated) |            | April 30
2008
(Restated) |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|ASSETS                                                                                                                                                               |  |                          |            |                          |   |            |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Current assets                                                                                                                                                       |  |                          |            |                          |   |            |  
|Cash and cash equivalents                                                                                                                                            |  | $                        | 2,096      |                          | $ | 17,600     |  
|Prepaid expenses (restated)                                                                                                                                          |  |                          | 16,157     |                          |   | 15,925     |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Total current assets                                                                                                                                                 |  |                          | 18,253     |                          |   | 33,525     |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Other assets                                                                                                                                                         |  |                          |            |                          |   |            |  
|Mineral property (restated)                                                                                                                                          |  |                          | 864,869    |                          |   | 864,869    |  
|Investment in general copper                                                                                                                                         |  |                          | 17,500     |                          |   | 17,500     |  
|Property and equipment, net                                                                                                                                          |  |                          | 30,557     |                          |   | 32,164     |  
|Other assets (restated)                                                                                                                                              |  |                          | 17,444     |                          |   | 17,444     |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Total other assets                                                                                                                                                   |  |                          | 930,370    |                          |   | 931,977    |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Total assets                                                                                                                                                         |  | $                        | 948,623    |                          | $ | 965,502    |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                 |  |                          |            |                          |   |            |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Current liabilities                                                                                                                                                  |  |                          |            |                          |   |            |  
|Accounts payable                                                                                                                                                     |  |                          | 332,147    |                          |   | 117,686    |  
|Accrued liabilities                                                                                                                                                  |  |                          | 2,688      |                          |   |          |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Total current liabilities                                                                                                                                            |  |                          | 334,835    |                          |   | 117,686    |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Total liabilities                                                                                                                                                    |  |                          | 334,835    |                          |   | 117,686    |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Stockholders' equity                                                                                                                                                 |  |                          |            |                          |   |            |  
|Preferred stock, authorized 50,000,000
shares, par value $0.001, zero issued and outstanding                                                                         |  |                          |           |                          |   |           |  
|Common stock, authorized 220,000,000 shares, par value $0.001,
issued and outstanding on July 31, 2008 and April 30, 2008
is 104,954,098 and 93,901,168 respectively |  |                          | 105,030    |                          |   | 93,902     |  
|Additional paid-in capital (restated)                                                                                                                                |  |                          | 6,047,576  |                          |   | 5,466,530  |  
|Subscriptions (receivable)                                                                                                                                           |  |                          | (52,625    | )                        |   | (5,500     | )
|Accumulated deficit during exploration stage (restated)                                                                                                              |  |                          | (5,486,193 | )                        |   | (4,707,116 | )
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Total stockholders' equity                                                                                                                                           |  |                          | 613,788    |                          |   | 847,816    |  
|                                                                                                                                                                     |  |                          |            |                          |   |            |  
|Total liabilities and stockholders' equity                                                                                                                           |  | $                        | 948,623    |                          | $ | 965,502    |  

The accompanying notes are an integral part of these statements



3



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General Metals Corporation

(An Exploration Stage Company)

Unaudited Consolidated Statements of Operations

|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|------------------------------------------- |  | --------------------------- | ----------- | - | ----------- | - | ---------- | -------------- |  | - | ---------- | -
|                                            |  |                             |             |   |             |   |            | March 15, 2006 | 
|                                            |  |                             |             |   |             |   |            | (Inception)    | 
|                                            |  | Three Months Ended July 31, |             |   | to July 31, |  
|                                            |  | 2008                        |             |   | 2007        |   |            | 2008           | 
|                                            |  | (restated)                  |             |   | (restated)  |   |            | (restated)     | 
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Revenue                                     |  | $                           |           |   |             | $ |          |                |  | $ |          |  
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Operating expenses                          |  |                             |             |   |             |   |            |                |  |   |            |  
|Depreciation and amortization               |  |                             | 1,607       |   |             |   | 1,768      |                |  |   | 12,491     |  
|General and administrative (restated)       |  |                             | 47,012      |   |             |   | 381,095    |                |  |   | 993,891    |  
|Management and consulting (restated)        |  |                             | 255,968     |   |             |   |          |                |  |   | 3,094,242  |  
|Exploration and development (restated)      |  |                             | 437,838     |   |             |   | 34,732     |                |  |   | 1,096,013  |  
|Professional fees                           |  |                             | 36,652      |   |             |   | 5,000      |                |  |   | 290,180    |  
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Total expenses                              |  |                             | 779,077     |   |             |   | 422,595    |                |  |   | 5,486,817  |  
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|(Loss) from operations                      |  |                             | (779,077    | ) |             |   | (422,595   | )              |  |   | (5,486,817 | )
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Other income/ (expenses)                    |  |                             |             |   |             |   |            |                |  |   |            |  
|Interest expense (restated)                 |  |                             |           |   |             |   |          |                |  |   | (1,876     | )
|Easement income                             |  |                             |           |   |             |   |          |                |  |   | 2,500      |  
|Gain on sale of fixed assets                |  |                             |           |   |             |   |          |                |  |   |          |  
|Loss on outstanding warrants (restated)     |  |                             |           |   |             |   |          |                |  |   |          |  
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Net (loss) before income taxes (restated)   |  |                             | (779,077    | ) |             |   | (422,595   | )              |  |   | (5,486,193 | )
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Provision for income taxes                  |  |                             |           |   |             |   |          |                |  |   |          |  
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Net (loss) (restated)                       |  | $                           | (779,077    | ) |             | $ | (422,595   | )              |  | $ | (5,486,193 | )
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Basic & diluted (loss) per share (restated) |  | $                           | (0.01       | ) |             | $ | (0.01      | )              |  |   |            |  
|                                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Weighted average                            |  |                             |             |   |             |   |            |                |  |   |            |  
|Number of shares                            |  |                             | 101,606,686 |   |             |   | 84,158,029 |                |  |   |            |  



The accompanying notes are an integral part of these statements



4



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General Metals Corporation

(An Exploration Stage Company)

Unaudited Statement of Stockholders' Equity

inception March 15, 2006 to July 31, 2008



|                                                          |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |   |  |  |  |  |  |  |  | 
|--------------------------------------------------------- |  | ------------ | ---------- | - | ------ | - | ------ | ------- |  | - | ------------- | - |  | ----------- | -------- | - | ------ | - | ---------- | - | ------ | --------- | ---------- | - |  |  |  |  |  |  |  | 
|                                                          |  |              |            |   |        |   |        |         |  |   | (Deficit)     |   |  |             |         
|                                                          |  |              |            |   |        |   |        |         |  |   | Accumulated   |   |  |             |         
|                                                          |  | Common Stock |            |   |        |   |        | Stock   |  |   | During        |   |  |             |         
|                                                          |  | Issued       |            |   |        |   |        | Paid in |  |   | Subscriptions |   |  | Exploration |          |   | Total  |  
|                                                          |  | Shares       |            |   | Amount |   |        | Capital |  |   | (Receivable)  |   |  | Stage       |          |   | Equity |  
|Balance, April 30, 2005                                   |  |              | 31,354,400 |   |        | $ | 31,354 |         |  | $ | 450,523       |   |  | $           | (127,500 | ) |        | $ | (208,251   | ) |        | $         | 146,126    |  
|                                                          |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |  
|Cash Received for Subscriptions                           |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |  
|Receivable                                                |  |              |            |   |        |   |        |         |  |   |               |   |  |             | 127,500  |   |        |   |            |   |        |           | 127,500    |  
|Common Stock Issued for Cash at $0.25                     |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |  
|In Private Placement                                      |  |              | 44,000     |   |        |   | 44     |         |  |   | 4,956         |   |  |             |          |   |        |   |            |   |        |           | 5,000      |  
|Common Stock Issued for Cash at $0.125                    |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |  
|In Private Placement                                      |  |              | 26,400     |   |        |   | 26     |         |  |   | 2,974         |   |  |             |          |   |        |   |            |   |        |           | 3,000      |  
|Common Stock Issued at $0.001 to                          |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |  
|exercise lease agreement                                  |  |              | 5,500,000  |   |        |   | 5,500  |         |  |   | 530,350       |   |  |             |          |   |        |   |            |   |        |           | 535,850    |  
|Common Stock Issued for Cash at $0.125                    |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |  
|In Private Placement                                      |  |              | 2,782,450  |   |        |   | 2,782  |         |  |   | 313,406       |   |  |             |          |   |        |   |            |   |        |           | 316,188    |  
|Common Stock Issued in Reorganization (restated)          |  |              | 8,436,541  |   |        |   | 8,437  |         |  |   | (787,983      | ) |  |             |          |   |        |   | 208,251    |   |        |           | (571,295   | )
|Common Stock Issued to Convert Debt at0.0185 as Agreed in |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |  
|February 2005 (restated)                                  |  |              | 22,034,546 |   |        |   | 22,035 |         |  |   | 591,998       |   |  |             |          |   |        |   |            |   |        |           | 614,033    |  
|Common Stock Issued as Incentive                          |  |              | 550,000    |   |        |   | 550    |         |  |   | (50           | ) |  |             |          |   |        |   |            |   |        |           | 500        |  
|Common Stock Returned and Cancelled                       |  |              | (550,000   | ) |        |   | (550   | )       |  |   | 50            |   |  |             |          |   |        |   |            |   |        |           | (500       | )
|Common Stock Issued in Exercise of   Warrants at $0.25    |  |              | 702,900    |   |        |   | 703    |         |  |   | 159,047       |   |  |             |          |   |        |   |            |   |        |           | 159,750    |  
|Net (Loss)                                                |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   | (637,068   | ) |        |           | (637,068   | )
|Balance, April 30, 2006 (restated)                        |  |              | 70,881,237 |   |        |   | 70,881 |         |  |   | 1,265,271     |   |  |             |        |   |        |   | (637,068   | ) |        |           | 699,084    |  
|                                                          |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |            |  
|Deposit received on Private Placement                     |  |              |            |   |        |   |        |         |  |   |               |   |  |             | 76,000   |   |        |   |            |   |        |           | 76,000     |  
|Common Stock Issued in Exercise of Warrants at $0.25      |  |              | 110,000    |   |        |   | 110    |         |  |   | 24,890        |   |  |             |          |   |        |   |            |   | 25,000 |          
|Common Stock Issued for Cash at $0.125                    |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |          
|In Private Placement                                      |  |              | 440,000    |   |        |   | 440    |         |  |   | 49,560        |   |  |             | (50,000  | ) |        |   |            |   |        |         |           
|Common Stock Issued for Service at  $0.125 per share      |  |              | 158,400    |   |        |   | 158    |         |  |   | 17,842        |   |  |             |          |   |        |   |            |   |        | 18,000    |           
|Common Stock Issued for Purchase of                       |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|fixed asset at $0.075                                     |  |              | 220,000    |   |        |   | 220    |         |  |   | 14,780        |   |  |             |          |   |        |   |            |   |        | 15,000    |           
|Common Stock Issued for Cash at $0.075                    |  |              | 164,495    |   |        |   | 164    |         |  |   | 11,052        |   |  |             |          |   |        |   |            |   |        | 11,216    |           
|Common Stock Issued for Services at                       |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|$0.075 per share                                          |  |              | 330,000    |   |        |   | 330    |         |  |   | 22,170        |   |  |             |          |   |        |   |            |   |        | 22,500    |           
|Common Stock Issued to Convert Debt                       |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|$0.075 per share                                          |  |              | 513,333    |   |        |   | 513    |         |  |   | 34,487        |   |  |             |          |   |        |   |            |   |        | 35,000    |           
|Common Stock Issued for Cash at $0.075                    |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|In Private Placement                                      |  |              | 3,770,063  |   |        |   | 3,770  |         |  |   | 253,280       |   |  |             | (163,800 | ) |        |   |            |   |        | 93,250    |           
|Common Stock Issued for Cash at $0.075                    |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|For Exploration Rights                                    |  |              | 1,100,000  |   |        |   | 1,100  |         |  |   | 249,828       |   |  |             |          |   |        |   |            |   |        | 250,928   |           
|Common Stock Issued for Cash at $0.075                    |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|For Employee Incentive                                    |  |              | 275,000    |   |        |   | 275    |         |  |   | 18,475        |   |  |             |          |   |        |   |            |   |        | 18,750    |           
|Common Stock Issued for Cash at $0.125                    |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|In Private Placement                                      |  |              | 2,332,000  |   |        |   | 2,332  |         |  |   | 262,668       |   |  |             |          |   |        |   |            |   |        | 265,000   |           
|Common Stock Issued for Cash at $0.125                    |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|In Private Placement                                      |  |              | 363,440    |   |        |   | 363    |         |  |   | 40,937        |   |  |             | (41,300  | ) |        |   |            |   |        | -         |           
|Cash Received for Subscriptions                           |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   |            |   |        |           |           
|Receivable                                                |  |              |            |   |        |   |        |         |  |   |               |   |  |             | 137,800  |   |        |   |            |   |        | 137,800   |           
|Stock-based compensation expense (restated)               |  |              |            |   |        |   |        |         |  |   | 1,447,734     |   |  |             |          |   |        |   |            |   |        | 1,447,734 |           
|Net (Loss) (restated)                                     |  |              |            |   |        |   |        |         |  |   |               |   |  |             |          |   |        |   | (2,087,666 | ) |        |           | (2,087,666 | )
|Balance, April 30, 2007 (restated)                        |  |              | 80,657,967 |   |        |   | 80,656 |         |  |   | 3,712,974     |   |  |             | (41,300  | ) |        |   | (2,724,734 | ) |        |           | 1,027,596  |  





5



---







|                                            |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|------------------------------------------- |  | ------------ | ---------- |  | ------ |  | ------ | ------- |  |  | ------------- |  |  | ----------- | -------- | - | ------ | ---------- | ---------- | - | ------ | ---------- | --------- |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|                                            |  |              |            |  |        |  |        |         |  |  | (Deficit)     |  |  |             |         
|                                            |  |              |            |  |        |  |        |         |  |  | Accumulated   |  |  |             |         
|                                            |  | Common Stock |            |  |        |  |        | Stock   |  |  | During        |  |  |             |         
|                                            |  | Issued       |            |  |        |  |        | Paid in |  |  | Subscriptions |  |  | Exploration |          |   | Total  |           
|                                            |  | Shares       |            |  | Amount |  |        | Capital |  |  | (Receivable)  |  |  | Stage       |          |   | Equity |           
|Balance, April 30, 2007 (restated)          |  |              | 80,657,967 |  |        |  | 80,656 |         |  |  | 3,712,974     |  |  |             | (41,300  | ) |        |            | (2,724,734 | ) |        |            | 1,027,596 | 
|Common Stock issued to convert Debt at      |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|$0.075 per share                            |  |              | 513,333    |  |        |  | 513    |         |  |  | 34,487        |  |  |             |          |   |        |            |            |   |        |            | 35,000    | 
|Common Stock Issued for Cash at $0.125      |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|In Private Placement                        |  |              | 667,040    |  |        |  | 667    |         |  |  | 75,133        |  |  |             |          |   |        |            |            |   |        |            | 75,800    | 
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Share Purchase Warrants at $0.075           |  |              | 2,520,979  |  |        |  | 2,522  |         |  |  | 157,243       |  |  |             |          |   |        |            |            |   |        |            | 159,765   | 
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Share Purchase Warrants at $0.20            |  |              | 654,500    |  |        |  | 655    |         |  |  | 118,345       |  |  |             |          |   |        |            |            |   |        |            | 119,000   | 
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Share Purchase Warrants at $0.125           |  |              | 44,000     |  |        |  | 44     |         |  |  | 4,956         |  |  |             |          |   |        |            |            |   |        |            | 5,000     | 
|Common Stock Issued for purchase of         |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|asset at $0.125                             |  |              | 132,000    |  |        |  | 132    |         |  |  | 14,868        |  |  |             |          |   |        |            |            |   |        |            | 15,000    | 
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Share Purchase Warrants at $0.20            |  |              | 216,000    |  |        |  | 216    |         |  |  | 42,984        |  |  |             |          |   |        |            |            |   |        |            | 43,200    | 
|Common Stock Issued for Cash at $0.125      |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|In Private Placement                        |  |              | 52,470     |  |        |  | 53     |         |  |  | 6,506         |  |  |             |          |   |        |            |            |   |        |            | 6,559     | 
|Cash Received for Subscriptions             |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Receivable                                  |  |              |            |  |        |  |        |         |  |  |               |  |  |             | 50,300   |   |        |            |            |   |        |            | 50,300    | 
|Common Stock Issued for Cash at $0.20       |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|In Private Placement                        |  |              | 2,503,000  |  |        |  | 2,503  |         |  |  | 484,497       |  |  |             | (160,000 | ) |        |            |            |   |        |            | 327,000   | 
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Share Purchase Warrants at $0.07            |  |              | 733,334    |  |        |  | 733    |         |  |  | 49,267        |  |  |             |          |   |        |            |            |   |        |            | 50,000    | 
|Common Stock Issued for Cash at $0.15       |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|In Private Placement                        |  |              | 900,000    |  |        |  | 900    |         |  |  | 134,100       |  |  |             | (35,000  | ) |        |            |            |   |        |            | 100,000   | 
|Cash Received for Subscriptions             |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Receivable                                  |  |              |            |  |        |  |        |         |  |  |               |  |  |             | 151,000  |   |        |            |            |   |        |            | 151,000   | 
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Share Purchase Warrants at $0.068           |  |              | 146,667    |  |        |  | 147    |         |  |  | 9,853         |  |  |             |          |   |        |            |            |   |        |            | 10,000    | 
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Share Purchase Warrants at $0.10            |  |              | 110,000    |  |        |  | 110    |         |  |  | 7,390         |  |  |             |          |   |        |            |            |   |        |            | 7,500     | 
|Common Stock Issued in Exercise of Share    |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Purchase warrants at $0.114                 |  |              | 176,000    |  |        |  | 176    |         |  |  | 19,824        |  |  |             |          |   |        |            |            |   |        |            | 20,000    | 
|Common Stock Issued for services to the     |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|advisory board at $0.15                     |  |              | 2,000,000  |  |        |  | 2,000  |         |  |  | 298,000       |  |  |             |          |   |        |            |            |   |        |            | 300,000   | 
|Common Stock Issued for Cash at $0.15       |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|In Private Placement                        |  |              | 100,000    |  |        |  | 100    |         |  |  | 14,900        |  |  |             |          |   |        |            |            |   |        |            | 15,000    | 
|Common Stock Issued in Exercise of Share    |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Purchase warrants at $0.075                 |  |              | 86,667     |  |        |  | 87     |         |  |  | 8,913         |  |  |             | (9,000   | ) |        |            |            |   |        |            | -         | 
|Common Stock Issued in Exercise of Share    |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|Purchase warrants at $0.114                 |  |              | 2,200      |  |        |  | 2      |         |  |  | 248           |  |  |             |          |   |        |            |            |   |        |            | 250       | 
|Common Stock Issued for Cash at $0.20       |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |            |           | 
|In Private Placement                        |  |              | 590,000    |  |        |  | 590    |         |  |  | 58,410        |  |  |             |          |   |        |            |            |   | 59,000 |           
|Common Shares issued for Cash at $0.15      |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |           
|In Private Placement                        |  |              | 44,299     |  |        |  | 44     |         |  |  | 6,601         |  |  |             |          |   |        |            |            |   | 6,645  |           
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |           
|Share Purchase warrants at $0.068           |  |              | 146,300    |  |        |  | 147    |         |  |  | 9,853         |  |  |             |          |   |        |            |            |   | 10,000 |           
|Common Stock Issued for services            |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |           
|at $0.125                                   |  |              | 100,000    |  |        |  | 100    |         |  |  | 12,400        |  |  |             |          |   |        |            |            |   | 12,500 |           
|Common Stock Issued for Cash at $0.20       |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |           
|In Private Placement                        |  |              | 100,000    |  |        |  | 100    |         |  |  | 9,900         |  |  |             |          |   |        |            |            |   | 10,000 |           
|Common Stock Issued for Cash at $0.05       |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |           
|In Private Placement                        |  |              | 400,000    |  |        |  | 400    |         |  |  | 19,600        |  |  |             |          |   |        |            |            |   | 20,000 |           
|Common Stock Issued in Exercise             |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |           
|of Share Purchase warrants at $0.05         |  |              | 275,000    |  |        |  | 275    |         |  |  | 13,475        |  |  |             |          |   |        |            |            |   | 13,750 |           
|Common Stock Issued in Exercise of          |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |           
|Share Purchase warrants at $0.085           |  |              | 29,412     |  |        |  | 30     |         |  |  | 2,470         |  |  |             |          |   |        |            |            |   | 2,500  |           
|Cash Received for Subscriptions             |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        |            |            |   |        |           
|Receivable                                  |  |              |            |  |        |  |        |         |  |  |               |  |  |             | 38,500   |   |        |            |            |   |        | 38,500     |          
|Stock-based compensation expense (restated) |  |              |            |  |        |  |        |         |  |  | 139,333       |  |  |             |          |   |        |            |            |   |        | 139,333    |          
|Net (Loss) (restated)                       |  |              |            |  |        |  |        |         |  |  |               |  |  |             |          |   |        | (1,982,382 | )          |   |        | (1,982,382 | )        



6



---







| |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 
| |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 



|                                         |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |   |  |  |  |  |  |  |  |  |  |  | 
|---------------------------------------- |  | ------------ | ----------- |  | ------ | - | ------- | ------- |  | - | ------------- |  |  | ----------- | ------- | - | ------ | - | ---------- | - |  | - | -------- | - |  |  |  |  |  |  |  |  |  |  | 
|                                         |  |              |             |  |        |   |         |         |  |   | (Deficit)     |  |  |             |        
|                                         |  |              |             |  |        |   |         |         |  |   | Accumulated   |  |  |             |        
|                                         |  | Common Stock |             |  |        |   |         | Stock   |  |   | During        |  |  |             |        
|                                         |  | Issued       |             |  |        |   |         | Paid in |  |   | Subscriptions |  |  | Exploration |         |   | Total  |  
|                                         |  | Shares       |             |  | Amount |   |         | Capital |  |   | (Receivable)  |  |  | Stage       |         |   | Equity |  
|Balance, April 30, 2008 (restated)       |  |              | 93,901,168  |  |        |   | 93,902  |         |  |   | 5,466,530     |  |  |             | (5,500  | ) |        |   | (4,707,116 | ) |  |   | 847,816  |  
|                                         |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |  
|Common Stock Issued in Exercise of       |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |  
|Share Purchase warrants at $0.085        |  |              | 33,930      |  |        |   | 34      |         |  |   | 2,840         |  |  |             | (625    | ) |        |   |            |   |  |   | 2,249    |  
|Common Stock Issued for Cash at $0.20    |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |  
|In Private Placement                     |  |              | 400,000     |  |        |   | 400     |         |  |   | 44,600        |  |  |             |         |   |        |   |            |   |  |   | 45,000   |  
|Common Stock Issued for Cash at $0.10    |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |  
|In Private Placement                     |  |              | 12,000      |  |        |   | 12      |         |  |   | 1,188         |  |  |             |         |   |        |   |            |   |  |   | 1,200    |  
|Common Stock Issued for Cash at $0.05    |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |  
|In Private Placement                     |  |              | 7,382,000   |  |        |   | 7,382   |         |  |   | 361,718       |  |  |             | (59,000 | ) |        |   |            |   |  |   | 310,100  |  
|Common Stock Issued for services         |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |  
|at $0.10                                 |  |              | 150,000     |  |        |   | 150     |         |  |   | 14,850        |  |  |             |         |   |        |   |            |   |  |   | 15,000   |  
|Common Stock Issued for services         |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |  
|at $0.08                                 |  |              | 50,000      |  |        |   | 50      |         |  |   | 3,950         |  |  |             |         |   |        |   |            |   |  |   | 4,000    |  
|Common Stock Issued for services         |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   |          |  
|at $0.05                                 |  |              | 3,100,000   |  |        |   | 3,100   |         |  |   | 151,900       |  |  |             |         |   |        |   |            |   |  |   | 155,000  |  
|Cash Received for Subscriptions          |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   |            |   |  |   | -        |  
|Receivable                               |  |              |             |  |        |   |         |         |  |   |               |  |  |             | 12,500  |   |        |   |            |   |  |   | 12,500   |  
|Fair value of warrants issued (restated) |  |              |             |  |        |   |         |         |  |   |             |  |  |             |         |   |        |   |            |   |  |   | -        |  
|Net (Loss) (restated)                    |  |              |             |  |        |   |         |         |  |   |               |  |  |             |         |   |        |   | (779,077   | ) |  |   | (779,077 | )
|Balance, July 31, 2008                   |  | $            | 105,029,098 |  |        | $ | 105,030 |         |  | $ | 6,047,576     |  |  | $           | (52,625 | ) |        | $ | (5,486,193 | ) |  | $ | 613,788  |  





7



---





General Metals Corporation

(An Exploration Stage Company)

Unaudited Consolidated Statements of Cash Flows

|                                                          |  |      |          |   |   |                                            |   |   |            |  
|--------------------------------------------------------- |  | ---- | -------- | - | - | ------------------------------------------ | - | - | ---------- | -
|                                                          |  |      |          |   |   | March 15, 2006
(Inception)
to
July 31,
208 |  
|                                                          |  |     
|                                                          |  |     
|Three Months Ended July 31,                              
|2008                                                      |  | 2007
|Operating activities                                      |  |      |          |   |   |                                            |   |   |            |  
|Net loss  (restated)                                      |  | $    | (779,077 | ) | $ | (422,595                                   | ) | $ | (5,486,193 | )
|Adjustments to reconcile net loss                         |  |      |          |   |   |                                            |   |   |            |  
|Loss on outstanding warrants (restated)                   |  |      |        |   |   |                                          |   |   |          |  
|Stock issued for services (restated)                      |  |      | 174,000  |   |   | 50,000                                     |   |   | 951,831    |  
|Stock Issued to Acquire Mineral Property Lease (restated) |  |      |        |   |   |                                          |   |   |          |  
|Stock Issued to Acquire Exploration Rights (restated)     |  |      |        |   |   |                                          |   |   |          |  
|Stock Issued to Acquire Fixed Assets (restated)           |  |      |        |   |   |                                          |   |   |          |  
|Stock Issued in Acquisition and Reorganization (restated) |  |      |        |   |   |                                          |   |   |          |  
|Contributed Capital (restated)                            |  |      |        |   |   |                                            |   |   |          |  
|Depreciation and Amortization                             |  |      | 1,607    |   |   | 1,768                                      |   |   | 12,491     |  
|Stock-based compensation (restated)                       |  |      |        |   |   |                                          |   |   | 1,587,067  |  
|Changes in Operating Assets and Liabilities               |  |      |          |   |   |                                            |   |   |            |  
|(Increase)/Decrease in Accounts Receivable                |  |      |        |   |   | (34,715                                    | ) |   |          |  
|(Increase)/Decrease in Other Receivables                  |  |      |        |   |   | (7,070)                                    |   |   |          |  
|(Increase)/Decrease in Prepaid Expenses                   |  |      | (232     | ) |   |                                            |   |   | (16,157    | )
|Increase/(Decrease) in Accounts Payable                   |  |      | 214,461  |   |   | 36,595                                     |   |   | 332,147    |  
|Increase/(Decrease) in Accrued Liabilities                |  |      | 2,688    |   |   | 4,680                                      |   |   | 2,688      |  
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Net cash used by operating activities                     |  |      | (386,553 | ) |   | (371,337                                   | ) |   | (2,616,126 | )
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Investment activities                                     |  |      |          |   |   |                                            |   |   |            |  
|Acquisition of mineral property (restated)                |  |      |        |   |   |                                          |   |   | (78,091    | )
|Investment in general copper                              |  |      | (1       | ) |   |                                            |   |   | (17,501    | )
|Deposit on reclamation bond (restated)                    |  |      |        |   |   |                                          |   |   | (17,444    | )
|Purchase of Equipment (restated)                          |  |      |          |   |   | (15,366                                    | ) |   | (13,048    | )
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Net Cash Used by Investment Activities                    |  |      | (1       | ) |   | (15,366                                    | ) |   | (126,084   | )
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Financing Activities                                      |  |      |          |   |   |                                            |   |   |            |  
|Proceeds from Loans from Related Parties (restated)       |  |      |        |   |   |                                          |   |   | 63,184     |  
|Repayments of Loans from Related Parties (restated)       |  |      |        |   |   | (23,000                                    | ) |   | (28,184    | )
|Cash Received from Subscriptions Receivable (restated)    |  |      |        |   |   |                                          |   |   |          |  
|Proceeds from the Sale of Stock (restated)                |  |      | 371,050  |   |   | 454,624                                    |   |   | 2,709,306  |  
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Net Cash Provided by Financing Activities                 |  |      | 371,050  |   |   | 431,624                                    |   |   | 2,744,306  |  
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Net Increase / (Decrease) in Cash                         |  |      | (15,504  | ) |   | 44,921                                     |   |   | 2,096      |  
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Cash, Beginning of Period                                 |  |      | 17,600   |   |   | 193,796                                    |   |   |          |  
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Cash, End of Period                                       |  | $    | 2,096    |   | $ | 238,717                                    |   | $ | 2,096      |  
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Supplemental Information:                                 |  |      |          |   |   |                                            |   |   |            |  
|Interest Paid                                             |  | $    |        |   | $ |                                          |   | $ | 1,876      |  
|Income Taxes Paid                                         |  | $    |        |   | $ |                                          |   | $ |          |  
|                                                          |  |      |          |   |   |                                            |   |   |            |  
|Non-cash Activities:                                      |  |      |          |   |   |                                            |   |   |            |  
|Stock Issued to Acquire Mineral Property Lease            |  | $    |        |   | $ |                                          |   | $ | 783,687    |  









8



---





General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))

NOTE 1.

ORGANIZATION AND DESCRIPTION OF BUSINESS

Nature of Business

General Metals Corporation (the Company), previously known as RECOV Energy Corp, previously known as Interactive Multimedia Network, Inc, was organized in the State of New Jersey on March 4, 1994. From March 1994 through March 15, 2006, the Company was unsuccessful in its business plan of developing and marketing consumer products and therefore actively pursued a merger or acquisition candidate.

On January 20, 2006 the Company entered into an agreement, effective March 15, 2006, to acquire all of the issued and outstanding shares and convertible securities of General Gold Corporation (General Gold). Upon the effective date of the acquisition of General Gold, the Company became an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (SFAS) No.7 Accounting and Reporting by Development Stage Enterprises. This transaction resulted in a change of control and is accounted for as a reverse acquisition with General Metals Corporation as the surviving legal entity and General Gold the historical accounting company. The Company operates General Gold as a wholly owned subsidiary.

The Companys principal business is the acquisition, exploration, and development of mineral properties. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable.

Basis of Presentation and Consolidation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP). The Company operates on an April 30 fiscal year end.

The accompanying consolidated financial statements include the accounts of General Metals Corporation and its wholly owned subsidiary, General Gold Corporation. Collectively, they are referred herein as the Company. All inter-company balances and transactions have been eliminated on consolidation.

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. At July 31, 2008 the Company had an accumulated loss of $5,486,193, a cash balance of $2,096, no revenue, and negative cash flows from operations. This raises substantial doubt about the Companys ability to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty.

a) Managements Plan

Management continues to seek funding from its shareholders and other qualified investors to pursue its exploration and development programs. These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of our shares. There is still no assurance that the Company will be able to maintain operations at a level sufficient for an investor to obtain a return on investment. Further, the Company may continue to be unprofitable. The Company needs to raise additional funds in the immediate future in order to proceed with its exploration program.

Condensed Financial Statements

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at July 31, 2008, and for all periods presented herein, have been made.



9



---

General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's April 30, 2009 audited financial statements. The results of operations for the period ended July 31, 2008 are not necessarily indicative of the operating results for the full year.

NOTE 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and short term deposits with original maturities of three months or less when purchased. As of July 31, 2008, the Company had $2,096 in cash equivalents.

Property and Equipment

Property and equipment is stated at cost and depreciated on a straight-line basis over the estimated economic useful lives of the assets, which range from three to seven years.

Loss Per Share

The Company computes net loss per share in accordance with SFAS No. 128, "Earnings per Share". This statement requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss by the weighted average number of shares outstanding during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method using the if-converted method. All periods presented reflect net losses, therefore, all instruments convertible to common shares are considered anti-dilutive.

Financial Instruments

The Companys financial instruments consist of cash; cash in trust, accounts payable and accrued liabilities and amounts due to related parties. The Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of cash, cash in trust, accounts payable and accrued liabilities and amounts due to related parties approximates their carrying values due to the immediate or short term maturity of these financial instruments.

Investments

Management determines the appropriate classification of its investments in equity securities at the time of purchase and re-evaluates such determinations at each reporting date. The Company accounts for its equity security investments as available-for-sale securities in accordance with SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities. The Companys policy is to generally review declines in the investments quoted market value when factors may indicate the decline is an other-than-temporary decline in value. The Company also monitors its investments for events or changes in circumstances that have occurred that may have a significant adverse effect on the fair value of the investment and evaluates qualitative and quantitative factors regarding the severity and duration of the unrealized loss and the Companys ability to hold the investment until a forecasted



10



---

General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



recovery occurs to determine if the decline in value of an investment is other-than-temporary. Declines in fair value below the Companys carrying value deemed to be other-than-temporary are charged to earnings.

Mineral Property Costs

The Company is in the exploration stage and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition, exploration, and development of mining properties. Mineral property acquisition costs are capitalized. Exploration and development costs are expensed as incurred. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs incurred to develop such property, are capitalized. Such costs will be amortized using the units of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.

Long-Lived Assets

In accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the carrying value of long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

Reclamation Liabilities and Asset Retirement Obligations

Minimum standards for site reclamation and closure have been established by various government agencies that affect certain of our operations. The Company calculates our estimates of reclamation liability based on current laws and regulations and the expected undiscounted future cash flows to be incurred in reclaiming, restoring, and closing our operating mine sites. When the Company incurs reclamation liabilities that are not related to asset retirements, the Company recognizes the obligations in accordance with SOP No. 96-1.

In August 2001, the FASB issued SFAS No. 143, Accounting for Asset Retirement Obligations. SFAS No. 143 established a uniform methodology for accounting for estimating reclamation and abandonment costs. The Standard requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred. SFAS No. 143 requires us to record a liability for the present value of our estimated environmental remediation costs and the related asset created with it when a recoverable asset (long-lived asset) can be realized.

Income Taxes

Under SFAS No 109 "Accounting for Income Taxes" the Company is required to recognize deferred tax liabilities and assets using the liability method. Under this method, deferred tax liabilities and assets are determined based on the temporary differences between the financial statements carrying values and tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company calculates a provision for income taxes using the asset and liability method, under which deferred tax assets and liabilities are recognized by identifying the temporary differences arising from the different treatment of items for tax and accounting purposes. In determining the future tax consequences of events that have been recognized in the financial statements or tax returns, judgment and interpretation of statutes is required. Judgments and interpretation of statutes are inherent in this process. Future income tax assets are recorded in the financial statements if realization is considered more likely than not.

The Company has adopted FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. FIN 48 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions.

The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various states. With limited exception, the Company is no longer subject to U.S. federal, state and local tax audits by taxing authorities for years before 2004.



11



---

General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



Stock Issued For Services

The Company bases the value of stock issued for services on the market value of our common stock at the date of issue or our estimate of the fair value of the services received, whichever is more reliably measurable.

Stock Based Compensation

The Company accounts for stock warrant grants in accordance with SFAS No. 123(R), Share-Based Payment. The Company records the cost of employee and non-employee services received in exchange for an award of equity instruments based on the estimated grant-date fair value of the award. That cost is recognized over the period during which an employee or non-employee is required to provide service in exchange for the awardthe requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which the requisite service period is not rendered. The grant-date fair value of equity awards is estimated using a Black-Scholes pricing model.

Comprehensive Income

The Companys comprehensive income is comprised of net income and unrealized gains and losses on marketable securities classified as available-for-sale.

Foreign Currency Translation

The Companys functional currency is United States (U.S.) dollars.

Transactions undertaken in currencies other than the functional currency of the entity are translated using the exchange rate in effect as of the transaction date. Any exchange gains and losses are included in the Statement of Operations.

Recently Issued Accounting Pronouncements

Recent accounting pronouncements that the Company has adopted or will be required to adopt in the future are summarized below.

Accounting for an Instrument (or an Embedded Feature) with a Settlement Amount That is Based on the Stock of an Entitys Consolidated Subsidiary

In November 2008, the FASB issued FSP EITF No. 08-8, Accounting for an Instrument (or an Embedded Feature) with a Settlement Amount That is Based on the Stock of an Entitys Consolidated Subsidiary. EITF No. 08-8 clarifies whether a financial instrument for which the payoff to the counterparty is based, in whole or in part, on the stock of an entitys consolidated subsidiary is indexed to the reporting entitys own stock. EITF No. 08-8 also clarifies whether or not stock should be precluded from qualifying for the scope exception of SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, or from being within the scope of EITF No. 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Companys Own Stock. EITF No. 08-8 is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those fiscal years. The Company is currently assessing the impact of EITF No. 08-8 on its consolidated financial position and results of operations.

Equity Method Investment Accounting Considerations

In November 2008, the FASB issued EITF No. 08-6, Equity Method Investment Accounting Considerations. EITF No. 08-6 clarifies accounting for certain transactions and impairment considerations involving the equity method. Transactions and impairment dealt with are initial measurement, decrease in investment value, and change in level of ownership or degree of influence. EITF No. 08-6 is effective on a prospective basis for fiscal years beginning on or after December 15, 2008. The Company currently does not have investments accounted for under the equity method.



12



---

General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active

In October 2008, the FASB issued FSP SFAS No. 157-3, Determining the Fair Value of a Financial Asset When the Market for That Asset is Not Active. This FSP clarifies the application of SFAS No. 157, Fair Value Measurements, in a market that is not active. The FSP also provides examples for determining the fair value of a financial asset when the market for that financial asset is not active. FSP FAS No. 157-3 was effective upon issuance, including prior periods for which financial statements have not been issued. The impact of adoption was not material to the Companys consolidated financial condition or results of operations.

Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities

In June 2008, the FASB issued FSP EITF No. 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities. The standard addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the two-class method. The standard affects entities that accrue dividends on share-based payment awards during the awards service period when the dividends do not need to be returned if the employees forfeit the award. FSP EITF 03-6-1 is effective for fiscal years beginning after December 15, 2008. The Company does not expect the issuance of FSP EITF 03-6-1 as no dividends are expected to be declared for the foreseeable future.

Determining Whether an Instrument (or an Embedded Feature) Is Indexed to an entity's Own Stock

In June 2008, the FASB ratified EITF No. 07-5, "Determining Whether an Instrument (or an Embedded Feature) Is Indexed to an Entity's Own Stock. EITF 07-5 provides that an entity should use a two step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument's contingent exercise and settlement provisions. It also clarifies on the impact of foreign currency denominated strike prices and market-based employee stock option valuation instruments on the evaluation. EITF 07-5 is effective for fiscal years beginning after December 15, 2008. The Company is currently assessing the impact of EITF 07-5 on its consolidated financial position and results of operations and does not expect the issuance to have an immediate impact since no applicable instruments are currently outstanding.

Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)

In May 2008, the FASB issued FSP APB Opinion No. 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement). The FSP clarifies the accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The FSP requires issuers to account separately for the liability and equity components of certain convertible debt instruments in a manner that reflects the issuer's nonconvertible debt (unsecured debt) borrowing rate when interest cost is recognized. The FSP requires bifurcation of a component of the debt, classification of that component in equity and the accretion of the resulting discount on the debt to be recognized as part of interest expense in our consolidated statement of operations. The FSP requires retrospective application to the terms of instruments as they existed for all periods presented. The FSP is effective for fiscal years beginning after December 15, 2008 and early adoption is not permitted. The Company is currently evaluating the potential impact of FSP APB 14-1 upon its consolidated financial statements and does not expect the issuance to have an immediate impact since no applicable instruments are currently outstanding.

Disclosure about Derivative Instruments and Hedging Activities

In March 2008, the FASB issued SFAS No. 161, Disclosure about Derivative Instruments and Hedging Activities, an amendment of SFAS No. 133. This statement requires that objectives for using derivative instruments be disclosed in terms of underlying risk and accounting designation. The Company is required to adopt SFAS No. 161 on May 1, 2009. The Company is currently evaluating the potential impact of SFAS No. 161 on the Companys consolidated financial statements and does not expect the issuance to have an immediate impact since no applicable instruments are currently outstanding.



13



---

General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



Accounting for and disclosure about Subsequent Events

In May 2009, the FASB issued SFAS No. 165, Subsequent Events (SFAS 165), which provides guidance to establish general standards of accounting for and disclosures of events that occur after balance sheet date but before financial statements are issued or are available to be issued. SFAS 165 is effective for interim or fiscal periods ending after June 15, 2009, and is required to be adopted by the Company beginning in the first quarter of Fiscal 2010. Management is currently evaluating the impact of the adoption of SFAS 165 but does not expect the adoption to have a material impact on the Companys Consolidated Financial Statements.

Delay in Effective Date

In February 2008, the FASB issued FSP SFAS No. 157-2, Effective Date of FASB Statement No. 157. This FSP delays the effective date of SFAS No. 157 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value on a recurring basis (at least annually) to fiscal years beginning after November 15, 2008, and interim periods within those fiscal years. The impact of adoption was not material to the Companys consolidated financial condition or results of operations.

NOTE 3.

RESTATEMENT

Upon receipt of SEC Comment Letters dated March 13, 2008 and November 25, 2008, the Companys management reviewed the accounting for certain transactions previously disclosed in our interim and annual financial statements for the fiscal years ended April 30, 2008 and 2007 and the fiscal quarters ended July 31, 2008, October 31, 2008, and January 31, 2009.

The following provides a detailed description of the restatements related to the correction of the errors contained in the historical information as well as affects by line item. In addition, certain amounts have been reclassified to conform to the presentation contained in our Form 10-K for the fiscal year ended April 30, 2009 inclusive of the restated and reclassified amounts for the fiscal year ended April 30, 2008.

Income Statement

|                               |  |                                  |             |   |             |   |        |             |  |   |             |  
|------------------------------ |  | -------------------------------- | ----------- | - | ----------- | - | ------ | ----------- |  | - | ----------- | -
|                               |  | Three Months Ended July 31, 2008 |            
|                               |  | As reported                      |             |   | Adjustments |   |        | As restated | 
|Other income/ (expenses)       |  |                                  |             |   |             |   |        |             |  |  
|Loss on outstanding warrants   |  | $                                | (18,925     | ) |             | $ | 18,925 | A           |  | $ |           |  
|                               |  |                                  |             |   |             |   |        |             |  |   |           |  
|Net (loss) before income taxes |  |                                  | (798,002    | ) |             |   | 18,925 | A           |  |   | (779,077    | )
|                               |  |                                  |             |   |             |   |        |             |  |   |           |  
|Net (loss)                     |  | $                                | (798,002    | ) |             | $ | 18,925 | A           |  | $ | (779,077    | )
|                               |  |                                  |             |   |             |   |        |             |  |   |           |  
|Basic/diluted (loss) per share |  | $                                | (0.01       | ) |             |   |        |             |  | $ | (0.01       | )
|                               |  |                                  |             |   |             |   |        |             |  |   |           |  
|Weighted average               |  |                                  |             |   |             |   |        |             |  |   |           |  
|number of shares               |  |                                  | 101,606,686 |   |             |   |        |             |  |   | 101,606,686 |  





14



---

General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



(A)

During the period ended July 31, 2008, the Company issued 833,000 warrants to investors. The fair value of all warrants was estimated using a Black-Scholes pricing model and recognized through earnings. Upon subsequent review, management determined the warrants issued to investors should have been treated as a capital transaction with no income statement affects recognized which caused an overstatement of expenses of $18,925.

|                               |  |                                  |            |   |             |   |         |             |  |   |            |  
|------------------------------ |  | -------------------------------- | ---------- | - | ----------- | - | ------- | ----------- |  | - | ---------- | -
|                               |  | Three Months Ended July 31, 2007 |           
|                               |  | As reported                      |            |   | Adjustments |   |         | As restated | 
|Other income/ (expenses)       |  |                                  |            |   |             |   |         |             |  |  
|Loss on outstanding warrants   |  | $                                | (283,261   | ) |             | $ | 283,261 | B           |  | $ |          |  
|                               |  |                                  |            |   |             |   |         |             |  |   |          |  
|Net (loss) before income taxes |  |                                  | (705,856   | ) |             |   | 283,261 | B           |  |   | (422,595   | )
|                               |  |                                  |            |   |             |   |         |             |  |   |          |  
|Net (loss)                     |  | $                                | (705,856   | ) |             | $ | 283,261 | B           |  | $ | (422,595   | )
|                               |  |                                  |            |   |             |   |         |             |  |   |          |  
|Basic/diluted (loss) per share |  | $                                | (0.01      | ) |             |   |         |             |  | $ | (0.01      | )
|                               |  |                                  |            |   |             |   |         |             |  |   |          |  
|Weighted average               |  |                                  |            |   |             |   |         |             |  |   |          |  
|number of shares               |  |                                  | 84,158,029 |   |             |   |         |             |  |   | 84,158,029 |  

(B)

During the period ended July 31, 2007, the Company recorded the cost of 3,508,200 warrants to investors. The fair value of all warrants was estimated using a Black-Scholes pricing model and recognized through earnings. Upon subsequent review, management determined the warrants issued to investors should have been treated as a capital transaction with no income statement affects recognized which caused an overstatement of expenses of $283,261 for the period.

|                               |  |                                                                   |            |   |             |   |            |                                                          |   |   |            |  
|------------------------------ |  | ----------------------------------------------------------------- | ---------- | - | ----------- | - | ---------- | -------------------------------------------------------- | - | - | ---------- | -
|                               |  | Previously
 Reported
March 15,
 2006
(inception) to
July 31,
2008 |            |   | Adjustments |   |            | As restated
March 15,
 2006
(inception) to
July 31,
2008 |  
|Operating expenses             |  |                                                                   |            |   |             |   |            |                                                          |   |  
|General and administrative     |  | $                                                                 | 1,417,143  |   |             | $ | (423,254   |                                                          | C | $ | 993,889    |  
|Management and consulting      |  |                                                                   | 1,322,876  |   |             |   | 1,771,366  |                                                          | D |   | 3,094,242  |  
|Exploration and development    |  |                                                                   | 1,224,940  |   |             |   | (128,927   | )                                                        | E |   | 1,096,013  |  
|Professional fees              |  |                                                                   | 265,496    |   |             |   | 24,684     |                                                          | F |   | 290,180    |  
|                               |  |                                                                   |            |   |             |   |            |                                                          |   |   |            |  
|Total expenses                 |  |                                                                   | 4,242,946  |   |             |   | 1,243,869  |                                                          |   |   | 5,486,815  |  
|                               |  |                                                                   |            |   |             |   |            |                                                          |   |   |            |  
|(Loss) from operations         |  |                                                                   | (4,242,946 | ) |             |   | (1,243,869 | )                                                        |   |   | (5,486,815 | )
|                               |  |                                                                   |            |   |             |   |            |                                                          |   |   |            |  
|Other income/ (expenses)       |  |                                                                   |            |   |             |   |            |                                                          |   |   |          |  
|Interest expense               |  |                                                                   |          |   |             |   | (1,876     | )                                                        | G |   | (1,876     | )
|Gain on forgiveness of debt    |  |                                                                   | 243,452    |   |             |   | (243,452   |                                                          | H |   |          |  
|Loss on outstanding arrants    |  |                                                                   | (592,635   | ) |             |   | 592,635    |                                                          | I |   |          |  
|                               |  |                                                                   |            |   |             |   |            |                                                          |   |   |            |  
|Net (loss) before income taxes |  |                                                                   | (4,589,629 | ) |             |   | (896,564   | )                                                        |   |   | (5,486,193 | )
|                               |  |                                                                   |            |   |             |   |            |                                                          |   |   |            |  
|Net (loss)                     |  |                                                                   | (4,589,629 | ) |             |   | (896,564   | )                                                        |   |   | (5,486,193 | )





15



---

General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



(C)

Amount represents a reclassification from General and administrative to Management and consulting to match current period reporting classifications

(D)

Amount consists of the following adjustments:

The elimination of $208,251 of expenditures related to activities that were prior to the companys mining development activities that commenced with the reverse merger with General Gold Corporation effective March 15, 2006.

On May 8, 2006 the company issued 3,000,000 vested warrants to certain officers and directors for services received. Further, on March 30, 2007 the Company issued 250,000 vested warrants to our current CFO. The fair value of these instruments on the applicable grant dates totalled $1,447,734 that was previously unrecognized.

The inclusion of the reclassification of $139,333 of stock-based compensation as noted in footnote (I) below.

Management also noted the inappropriate expensing of insurance expense upfront versus over the insurance policy period leading to an overstatement of expenses of $15,625.

In addition, we issued a payment of $17,444 to the Nevada Division of Minerals for a deposit on a reclamation bond. This payment was originally expensed as part of exploration costs, but should have been capitalized as a long-term asset.

The remaining $425,619 represents a reclassification for the inception-to-date period ending July 31, 2008 to match current period reporting classifications.

(E)

Amount consists of the following adjustments:

The reduction of expense due to the inappropriate expensing of a $25,000 payment in relation to the acquisition of the Independence mineral property as noted in restatement footnote (K) below.

The reduction of expense due to the inappropriate expense of the deemed value of shares issued for a 100% interest in Mikite Resources as noted in restatement footnote (K) below.

The remaining $28,927 represents a reclassification from Exploration and development to Professional fees ($24,684), Interest ($1,876) and Management and consulting ($2,367) for the period ending July 31, 2008 to match current period reporting classifications

(F)

Amount represents a reclassification to Professional fees from Exploration and development to match current period reporting classifications.

(G)

During the procedures performed, it was noted that to match classification presented for the period ended July 31, 2008, $1,876 of interest expense was required to be reclassified from Exploration and development to match current period reporting classifications.

(H)

During the fiscal year ended April 30, 2006 we entered into several transactions with various shareholders and employees for the extinguishment of certain debts and accounts payable by the issuance of common shares. Upon further review of the transactions, we determined they should have been treated as capital transactions with no affects on our statements of operations. This resulted in an overstatement of net income for the period of $243,452.

(I)

During the year ended April 30, 2008 the Company issued 6,203,299 warrants to investors and to certain members of management and the Board. The fair value of all warrants was estimated using a Black-Scholes pricing model and recognized through earnings. Upon subsequent review, management determined the warrants issued to investors should have been treated as a capital transaction with no income statement affects recognized. This resulted in an overstatement of expenses by $434,377 for the period then ended. Additionally, the warrants issued to management and the Board of Directors totalling $139,333 constituted compensation and has been reclassified to management and consulting expense. All of the warrants issued as compensation were fully vested on the grant date. In addition, there was additional expense recognized during the period ended July 31, 2008 of $18,925 as noted in restatement footnote (A) above.



16



---

General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



Balance Sheet

|                                             |  |                           |            |   |             |   |           |                           |   |   |            |  
|-------------------------------------------- |  | ------------------------- | ---------- | - | ----------- | - | --------- | ------------------------- | - | - | ---------- | -
|                                             |  | As Reported
July 31,
2008 |            |   | Adjustments |   |           | As restated
July 31,
2008 |  
|Current assets                               |  |                           |            |   |             |   |           |                           |   |  
|Prepaid expenses                             |  | $                         | 532        |   |             | $ | 15,625    |                           | J | $ | 16,157     |  
|                                             |  |                           |            |   |             |   |           |                           |   |   |            |  
|Total Current assets                         |  |                           | 2,628      |   |             |   | 15,625    |                           |   |   | 18,253     |  
|                                             |  |                           |            |   |             |   |           |                           |   |   |            |  
|Other assets                                 |  |                           |            |   |             |   |           |                           |   |   |          |  
|Mineral property                             |  |                           | 58,091     |   |             |   | 806,778   |                           | K |   | 864,869    |  
|Other assets                                 |  |                           |            |   |             |   | 17,444    |                           | L |   | 17,444     |  
|                                             |  |                           |            |   |             |   |           |                           |   |   |          |  
|Total other assets                           |  |                           | 106,148    |   |             |   | 806,778   |                           |   |   | 912,926    |  
|                                             |  |                           |            |   |             |   |           |                           |   |   |          |  
|Total assets                                 |  | $                         | 108,776    |   |             | $ | 839,847   |                           |   | $ | 948,623    |  
|                                             |  |                           |            |   |             |   |           |                           |   |   |            |  
|Stockholders' equity                         |  |                           |            |   |             |   |           |                           |   |   |          |  
|                                             |  |                           |            |   |             |   |           |                           |   |   |            |  
|Additional paid-in capital                   |  |                           | 4,311,165  |   |             |   | 1,736,411 |                           | M |   | 6,047,576  |  
|Accumulated deficit during exploration stage |  |                           | (4,589,629 | ) |             |   | (896,564  | )                         | N |   | (5,486,193 | )
|                                             |  |                           |            |   |             |   |           |                           |   |   |            |  
|Total stockholders' equity                   |  |                           | (226,059   | ) |             |   | 839,847   |                           |   |   | 613,788    |  
|                                             |  |                           |            |   |             |   |           |                           |   |   |            |  
|Total liabilities and stockholders' equity   |  | $                         | 108,776    |   |             | $ | 839,847   |                           |   | $ | 948,623    |  

(J)

Capitalization of prepaid expense related to previous expensing of payment on insurance policy as noted in restatement footnote (D) above.

(K)

In conjunction with the review of transactions as identified and noted by the SEC Corporate Finance division, management reviewed the recording of transactions related to the acquisition of the Independence mineral property and the acquisition of a 100% interest in Mikite Resources and the Ghana mining concession rights.

In regards to the Independence mineral property, Management noted consideration in the agreement consisted of three $25,000 cash payments of which two were appropriately capitalized while one $25,000 cash payment was inappropriately expensed at the date of payment and has been adjusted in the above adjustments. In addition, as part of the agreement, we issued 5,000,000 shares to Gold Range, LLC for the lease rights to the Independence mineral property which was recorded at par value ($5,000) at date of acquisition and capitalized at the date of issuance. The fair value of these instruments, based on the issuance of similar instruments for cash on the same date, on the applicable grant dates totalled $535,850, of which $530,850 was previously unrecognized.

In addition, we identified 1 million shares and 1 million warrants that were issued for a 100% interest in Mikite Resources and the Ghana mining concession. These were recorded at a deemed value of $75,000 but were expensed at the date of issuance. The fair value of these instruments on the applicable grant dates, based on quoted market prices for the shares, totalled $250,928 of which $75,000 was previously recognized in earnings and $175,928 was unrecognized.

(L)

Capitalization of the $17,444 payment issued to the Nevada Division of Minerals as deposit on a reclamation bond as noted in footnote (D) above.



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General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



(M)

This reflects the net effect of the adjustments related to equity transactions as noted in the footnotes above at the estimated fair value and their respective impact on additional paid-in capital.

This reflects the net effect of all income statements errors as noted in footnotes (A) through (I).

Cash Flows

Upon further review of our previously issued financial statements we noted certain classification errors and erroneous inclusion of certain non-cash transactions and affects related to the adjustments The adjustments noted in footnotes (A) and (B) above are the only effects for the three months cash flows for the periods ending July 31, 2008 and July 31, 2007 respectively. The impacts reflect on net loss and adjustments to reconcile net loss are immaterial and do not change the major caption reporting of cash flow categories and are thus not presented.

The following provides a brief description of the transactions that were reclassified or removed from our Statement of Cash Flows for the inception to date period through July 31, 2008 included adjustments as identified in our 10-K filed with the SEC for the years ended April 30, 2008 and Inception to April 30, 2008:

(A)

During the year ended April 30, 2008 we acquired fixed assets through the issuance of common stock totalling $30,000 previously reported in operating activities. Additionally, $13,000 of fixed asset purchases included in investing activities was inappropriately included for the year ended April 30, 2008. The corresponding impact of this correction is also included in the restated Inception to July 31, 2008 information.

(B)

During the year ended April 30, 2008 the Company issued $35,000 worth of common stock, in a non-cash transaction, that was previously included in operating activities with a corresponding debt repayment classified as financing activities. The corresponding impact of this correction is also included in the restated Inception to April 30, 2009 information.

(C)

Previously included in the inception to April 30, 2008 operating activities were additional non-cash transactions including $7,000 for mineral property lease acquisitions, $75,000 for exploration rights acquisitions, and an additional $15,000 for fixed asset acquisitions with corresponding amounts included proceeds from stock issuances. The transactions have been removed and are disclosed in the supplemental information only.

(D)

Stock issued as part of the reverse merger transaction that was effective March 15, 2006 was previously included in operating activities with a corresponding off-set included in financing activities for the Inception to April 30, 2008 cash flows totalling $571,295. The Inception to April 30, 2009 cash flow statement reflects the removal of this transaction along with the other reconciling items as noted in the income statement restatements above.

(E)

The overall impacts on the previously issued Statements of Cash flows for the year ended April 30, 2008 and the Inception to April 30, 2008 by activity are as follows:

|                                      |  |                        |            |   |             |   |          |      |                       |   |            |  
|------------------------------------- |  | ---------------------- | ---------- | - | ----------- | - | -------- | ---- | --------------------- | - | ---------- | -
|                                      |  | As Previously Reported |            |   |             |   |          |      | Restated              |  
|                                      |  | (inception) to         |            |   |             |   |          |      | (inception) to        |  
|                                      |  | Period Ended July 31,  |            |   |             |   |          |      | Period Ended July 31, |  
|                                      |  | 2008                   |            |   | Adjustments |   |          | 2008 |                      
|Cash used in operating activities     |  | $                      | (3,076,177 | ) |             | $ | 460,051  |      |                       | $ | (2,616,126 | )
|Cash used in investing activities     |  |                        | (118,640   | ) |             |   | (7,444   | )    |                       |   | (126,084   | )
|Cash provided by financing activities |  |                        | 3,196,913  |   |             |   | (452,607 | )    |                       |   | 2,744,306  |  



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General Metals Corporation

Successor to General Gold Corporation

(An Exploration Stage Company)

Notes to Consolidated Financial Statements

(July 31, 2008 and April 30, 2008 (Audited))



Item 4T.

Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer) to allow for timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Under the supervision and with the participation of our management, including our president (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer), we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as of the end of the period covered by this report. Based on this evaluation, our president (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer) concluded as of the evaluation date that our disclosure controls and procedures were not effective such that the material information required to be included in our Securities and Exchange Commission reports was recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to our company, particularly during the period when this report was being prepared.

Management has identified the following material weaknesses:

Insufficient Resources:We have an inadequate number of personnel with requisite expertise in the key functional areas of finance and accounting.

Inadequate Segregation of Duties: We have an inadequate number of personnel to properly implement control procedures.

Management is committed to improving its internal controls and will (1) continue to use third party specialists to address shortfalls in staffing and to assist the Company with accounting and finance responsibilities, (2) increase the frequency of independent reconciliations of significant accounts which will mitigate the lack of segregation of duties until there are sufficient personnel.

Management, including our president and chief executive officer (who is acting as our principal executive officer) and our chief financial officer (who is acting as our principal financial officer and principle accounting officer), have discussed the material weakness noted above with our independent registered public accounting firm. Due to the nature of this material weakness, there is a more than remote likelihood that misstatements which could be material to the annual or interim financial statements could occur that would not be prevented or detected.



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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                          |  |                                                               
|------------------------- |  | --------------------------------------------------------------
|                          |  | GENERAL METALS CORPORATION                                    
|                          |  | (Registrant)                                                  
|Dated: September 18, 2009 |  | /s/ STEPHEN PARENT                                            
|                          |  | Stephen Parent                                                
|                          |  | Chief Executive Officer and President                         
|                          |  | (Principal Executive Officer)                                 
|Dated: September 18, 2009 |  | /S/ DANIEL J. FORBUSH                                         
|                          |  | Daniel J. Forbush                                             
|                          |  | Chief Financial Officer                                       
|                          |  | (Principal Financial Officer and Principal Accounting Officer)





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