----

----

| Nevada                                                         |   | 66-0349372                        |
|----------------------------------------------------------------|--------|-----------------------------------|
| (State of other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |

| 2000 Webber Street, Sarasota, Florida    |   | 34239      |
|------------------------------------------|--------|------------|
| (Address of principal executive offices) |   | (Zip Code) |

| Large accelerated filer |  o | Accelerated filer         |  o      |
|-------------------------|---------|---------------------------|--------------|
| Non-accelerated filer   |  o | Smaller reporting company |  þ |

----

----

----

|  ● | Part I, Item 1A - Risk Factors                                                                                            |
|---------------|---------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                      |
|  ● | Part II, Item 6 - Selected Financial Data                                                                                 |
|          |                                                                                                                      |
|  ● | Part II, Item 5 - Market for Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities |
|          |                                                                                                                      |
|  ● | Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations             |
|          |                                                                                                                      |
|  ● | Part II, Item 8 - Financial Statements and Supplementary Data                                                             |
|          |                                                                                                                      |
|  ● | Part II, Item 9A - Disclosure Controls and Procedures                                                                     |
|          |                                                                                                                      |
|  ● | Part III, Item 10 - Directors, Executive Officers and Corporate Governance                                                |
|          |                                                                                                                      |
|  ● | Part III, Item 11 - Executive Compensation                                                                                |
|          |                                                                                                                      |
|  ● | Part III, Item 12 - Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters        |
|          |                                                                                                                      |
|  ● | Part III, Item 13 - Certain Relationships and Related Transactions, and Director Independence                             |
|          |                                                                                                                      |
|  ● | Part IV, Item 15 - Exhibits and Financial Statement Schedules                                                             |
|          |                                                                                                                      |
|  ● | Signatures                                                                                                                |

----

|          | PART I                                                                                                             |   |   |   |
|---------------|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|          |                                                                                                               |   |   |   |
| Item 1.       | Business                                                                                                           |   |   | 5      |   |
| Item 1A. | Risk Factors                                                                                                       |   |   | 7      |   |
| Item 1B. | Unresolved Staff Comments                                                                                          |   |   | 13     |   |
| Item 2.       | Properties                                                                                                         |   |   | 17     |   |
| Item 3.       | Legal Proceedings                                                                                                  |   |   | 17     |   |
|          |                                                                                                               |   |   |   |   |
|          | PART II                                                                                                            |   |   |   |   |
|          |                                                                                                               |   |   |   |   |
| Item 5.       | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   |   | 18     |   |
| Item 6.       | Selected Financial Data                                                                                            |   |   | 19     |   |
| Item 7.       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        |   |   | 19     |   |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                                                         |   |   | 25     |   |
| Item 8.       | Financial Statements and Supplementary Data                                                                        |   |   |   |   |
| Item 9.       | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               |   |   | 26     |   |
| Item 9A. | Controls and Procedures                                                                                            |   |   | 26     |   |
| Item 9B. | Other Information                                                                                                  |   |   | 26     |   |
|          |                                                                                                               |   |   |   |   |
|          | PART III                                                                                                           |   |   |   |   |
|          |                                                                                                               |   |   |   |   |
| Item 10.      | Directors, Executive Officers and Corporate Governance                                                             |   |   | 27     |   |
| Item 11.      | Executive Compensation                                                                                             |   |   | 29     |   |
| Item 12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     |   |   | 30     |   |
| Item 13.      | Certain Relationships and Related Transactions, and Director Independence                                          |   |   | 31     |   |
| Item 14.      | Principal Accountant Fees and Services                                                                             |   |   | 31     |   |
|          |                                                                                                               |   |   |   |   |
|          | PART IV                                                                                                       |   |   |   |   |
|          |                                                                                                               |   |   |   |   |
| Item 15. | Exhibits and Financial Statement Schedules                                                                         |   |   | 32     |   |

----

| ● | risks associated with our international operations; |
|---------|-----------------------------------------------------|

| ● | significant movements in foreign currency exchange rates; |
|---------|-----------------------------------------------------------|

| ● | changes in the general economy, including the current global economic downturn, as well as the cyclical nature of global alternative energy markets; |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | availability and cost of raw materials, parts and components that may be used in our products; |
|---------|------------------------------------------------------------------------------------------------|

| ● | the competitive environment in our industry; |
|---------|----------------------------------------------|

| ● | our ability to identify, finance, acquire and successfully integrate attractive installation targets; |
|---------|-------------------------------------------------------------------------------------------------------|

| ● | our ability to manage and grow our business and the execution of our business and growth strategies; |
|---------|------------------------------------------------------------------------------------------------------|

| ● | loss of key management; |
|---------|-------------------------|

| ● | our ability and the ability of our strategic partners to access required capital at a reasonable cost; |
|---------|--------------------------------------------------------------------------------------------------------|

| ● | our ability to expand our business in our targeted markets; |
|---------|-------------------------------------------------------------|

| ● | our financial performance; |
|---------|----------------------------|

| ● | our ability to identify, address and remediate any material weaknesses in our internal control over financial reporting; and |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| ● | others risks and factors, listed in Item 1A. Risk Factors in Part I of this Form 10-K/A. |
|---------|------------------------------------------------------------------------------------------|

----

----

----

| ·   | manufacture products in a manner that will enable it to be profitable; |
|--------------------|------------------------------------------------------------------------|

| ·   | establish many of the business functions necessary to operate, including sales, marketing, manufacturing, administrative and financial functions; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | establish appropriate financial controls; |
|--------------------|-------------------------------------------|

| ·   | respond effectively to competitive pressures; or |
|--------------------|--------------------------------------------------|

| ·   | raise the capital necessary to implement its business plan. |
|--------------------|-------------------------------------------------------------|

----

| ·   | the revenues generated by products that it manufactures; |
|--------------------|----------------------------------------------------------|

| ·   | the costs required to develop its manufacturing processes; |
|--------------------|------------------------------------------------------------|

| ·   | the expenses it incurs in manufacturing and placing its products; |
|--------------------|-------------------------------------------------------------------|

| ·   | the costs associated with any expansion of its business; |
|--------------------|----------------------------------------------------------|

| ·   | the costs associated with capital expenditures; and |
|--------------------|-----------------------------------------------------|

| ·   | the number and timing of any acquisitions or other strategic transactions. |
|--------------------|----------------------------------------------------------------------------|

----

| ·   | the issuance of new equity securities pursuant to its recent issuance of shares for a technology license, or a future offering; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes in interest rates; |
|--------------------|----------------------------|

| ·   | competitive developments, including announcements by competitors of new products or services or significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | variations in quarterly operating results; |
|--------------------|--------------------------------------------|

| ·   | changes in financial estimates by securities analysts; |
|--------------------|--------------------------------------------------------|

| ·   | the depth and liquidity of the market for the Company's common stock; |
|--------------------|-----------------------------------------------------------------------|

| ·   | investor perceptions of the Company and the alternative energy industry generally; and |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | general economic and other national conditions. |
|--------------------|-------------------------------------------------|

----

----

| ·   | our possible inability to achieve the output and efficiency levels for our supplemental wind energy generation systems that we have projected; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | shutdown due to a breakdown or failure of equipment or processes, violation of permit requirements (whether through operations or change in law), operator error or catastrophic events such as fires, explosions, floods or other similar occurrences affecting us, our supplemental wind energy generation systems or third parties upon which our business may depend. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | equipment problems or other problems which affect the ability of our supplemental wind energy generation systems to operate; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | implementation of additional or more stringent environmental compliance measures; or |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | the market introduction of new and competing products which may be more efficient and cost effective than our supplemental wind energy generation systems. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                    |   | Original Presentation |      |   | Restatement Adjustment |   |       | Restated Amount |   |
|-------------------------------------------------------------------------|--------|----------------------------|-----------|--------|------------------------|--------|------------|-----------------|--------|
| Balance Sheet:                                                          |   |                       |      |   |                   |   |       |            |   |
|    License of SWEG technology – asset value   |   |                       | 1,855,605 |   |                   |   | (1,855,505 | )               |   |   | 100 |   |
|    License amortization                             |   |                       | 129,638   |   |                   |   | (129,638   | )               |   |   | - |   |
|    License of SWEG technology – net of amortization     |   |                       | 1,725,967 |   |                   |   | (1,725,867 | )               |   |   | 100 |   |
| Total Assets                                                            |   |                       | 1,762,697 |   |                   |   | (1,725,867 | )               |   |   | 36,830 |   |
| Additional Paid In Capital                                              |   |                       | 2,185,801 |   |                   |   | (1,855,505 | )               |   |   | 330,296 |   |
| Total Stockholders’ Equity (Deficit)                         |   |                       | 1,489,816 |   |                   |   | (1,725,867 | )               |   |   | (236,051 | ) |
|                                                                    |   |                       |      |   |                   |   |       |            |   |   |   |   |
| Statement of Operations:                                                |   |                       |      |   |                   |   |       |            |   |   |   |   |
|                                                                    |   |                       |      |   |                   |   |       |            |   |   |   |   |
| Amortization                                                       |   |                       | 129,638   |   |                   |   | (129,638   | )               |   |   | - |   |
| Net Loss and Comprehensive Loss                                         |   |                       | (210,769  | )      |                   |   | 129,638    |            |   |   | (81,131 | ) |
| Net Loss per share, basic and diluted                              |   |                       | (0.00     | )      |                   |   | (0.00      | )               |   |   | (0.00 | ) |
|                                                                    |   |                       |      |   |                   |   |       |            |   |   |   |   |
| Changes in Stockholders’ Equity (Deficiency):                     |   |                       |      |   |                   |   |       |            |   |   |   |   |
| Purchase of SWEG license for shares                                     |   |                       | 1,756,805 |   |                   |   | (1,855,505 | )               |   |   | (98,700 | ) |
| Net loss for the period                                                 |   |                       | (210,769  | )      |                   |   | 129,638    |            |   |   | (81,131 | ) |
| Total stockholders’ equity (deficit)                              |   |                       | 1,489,816 |   |                   |   | (1,725,867 | )               |   |   | (236,051 | ) |

----

|                                                       |   | As at December 31, 2009 |      |   | As at September 30, 2009 |   |      | As at June 30, 2009 |   |   | As at March 31, 2009 |   |
|------------------------------------------------------------|--------|------------------------------|-----------|--------|-------------------------------|--------|-----------|-------------------------------|--------|--------|--------------------------------|--------|
| Balance Sheets prior to Restatement                        |   |                         |      |   |                          |   |      |                          |   |   |                           |   |
|                                                       |   | $                            |      |   |                          | $      |      |                          |   | $      |                           |   |   | $ |   |   |
|  ASSETS                                               |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  CURRENT ASSETS                                       |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  Cash                                                 |   |                         | 36,730    |   |                          |   | 40,546    |                          |   |   | 49,396                         |   |   |   | 65,314 |   |
|                                                       |   |                         | 36,730    |   |                          |   | 40,546    |                          |   |   | 49,396                         |   |   |   | 65,314 |   |
|                                                       |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  License for SWEG technology                          |   |                         | 1,725,967 |   |                          |   | 1,778,288 |                          |   |   | 1,824,678                      |   |   |   | - |   |
|                                                       |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|                                                       |   |                         | 1,762,697 |   |                          |   | 1,818,834 |                          |   |   | 1,874,074                      |   |   |   | 65,314 |   |
|                                                       |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  LIABILITIES                                          |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  CURRENT LIABILITIES                                  |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  Accounts payable and accrued liabilities (Note 5)    |   |                         | 14,568    |   |                          |   | 5,000     |                          |   |   | 9,200                          |   |   |   | 4,224 |   |
|  Payable to Boreas Research for SWEG license (Note 9) |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  Loans from stockholders (Note 7 ( c ) and Note 6)    |   |                         | 258,313   |   |                          |   | 258,313   |                          |   |   | 258,313                        |   |   |   | 258,313 |   |
|                                                       |   |                         | 272,881   |   |                          |   | 263,313   |                          |   |   | 267,513                        |   |   |   | 262,537 |   |
|                                                       |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  STOCKHOLDERS’ EQUITY                           |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|                                                       |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|  Capital Stock (Note 7)                               |   |                         | 99,665    |   |                          |   | 99,665    |                          |   |   | 99,665                         |   |   |   | 765 |   |
|  Additional paid-in Capital                           |   |                         | 2,185,801 |   |                          |   | 2,185,801 |                          |   |   | 2,185,801                      |   |   |   | 397,096 |   |
|  Deficit, accumulated during the development stage    |   |                         | (795,650  | )      |                          |   | (729,945  | )                             |   |   | (678,905                       | )      |   |   | (595,084 | ) |
|  Total FNEC Shareholders' Equity                      |   |                         | 1,489,816 |   |                          |   | 1,555,521 |                          |   |   | 1,606,561                      |   |   |   | (197,223 | ) |
|  Non-controlling interest                             |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|                                                       |   |                         | 1,489,816 |   |                          |   | 1,555,521 |                          |   |   | 1,606,561                      |   |   |   | (197,223 | ) |
|                                                       |   |                         |      |   |                          |   |      |                          |   |   |                           |   |   |   |   |   |
|                                                       |   |                         | 1,762,697 |   |                          |   | 1,818,834 |                          |   |   | 1,874,074                      |   |   |   | 65,314 |   |

|                                                       |   | As at December 31, 2009 |     |   | As at September 30, 2009 |   |     | As at June 30, 2009 |   |   | As at March 31, 2009 |   |
|------------------------------------------------------------|--------|------------------------------|----------|--------|-------------------------------|--------|----------|-------------------------------|--------|--------|--------------------------------|--------|
| Balance Sheets after Restatement                           |   |                         |     |   |                          |   |     |                          |   |   |                           |   |
|                                                       |   | $                            |     |   |                          | $      |     |                          |   | $      |                           |   |   | $ |   |   |
|  ASSETS                                               |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|  CURRENT ASSETS                                       |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|  Cash                                                 |   |                         | 36,730   |   |                          |   | 40,546   |                          |   |   | 49,396                         |   |   |   | 65,314 |   |
|                                                       |   |                         | 36,730   |   |                          |   | 40,546   |                          |   |   | 49,396                         |   |   |   | 65,314 |   |
|                                                       |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|  License for SWEG technology                          |   |                         | 100      |   |                          |   | 100      |                          |   |   | 100                            |   |   |   | - |   |
|                                                       |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|                                                       |   |                         | 36,830   |   |                          |   | 40,646   |                          |   |   | 49,496                         |   |   |   | 65,314 |   |
|                                                       |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|  LIABILITIES                                          |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|  CURRENT LIABILITIES                                  |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|  Accounts payable and accrued liabilities (Note 5)    |   |                         | 14,568   |   |                          |   | 5,000    |                          |   |   | 9,201                          |   |   |   | 4,224 |   |
|  Payable to Boreas Research for SWEG license (Note 9) |   |                         | -        |   |                          |   | -        |                          |   |   | -                              |   |   |   | - |   |
|  Loans from stockholders (Note 7 ( c ) and Note 6)    |   |                         | 258,313  |   |                          |   | 258,313  |                          |   |   | 258,313                        |   |   |   | 258,313 |   |
|                                                       |   |                         | 272,881  |   |                          |   | 263,313  |                          |   |   | 267,514                        |   |   |   | 262,537 |   |
|                                                       |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|  STOCKHOLDERS’ EQUITY                           |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|                                                       |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|  Capital Stock (Note 7)                               |   |                         | 99,665   |   |                          |   | 99,665   |                          |   |   | 99,665                         |   |   |   | 765 |   |
|  Additional paid-in Capital                           |   |                         | 330,296  |   |                          |   | 330,296  |                          |   |   | 330,296                        |   |   |   | 397,096 |   |
|  Deficit, accumulated during the development stage    |   |                         | (666,012 | )      |                          |   | (652,628 | )                             |   |   | (647,979                       | )      |   |   | (595,084 | ) |
|  Total FNEC Shareholders' Equity                      |   |                         | (236,051 | )      |                          |   | (222,667 | )                             |   |   | (218,018                       | )      |   |   | (197,223 | ) |
|  Non-controlling interest                             |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|                                                       |   |                         | (236,051 | )      |                          |   | (222,667 | )                             |   |   | (218,018                       | )      |   |   | (197,223 | ) |
|                                                       |   |                         |     |   |                          |   |     |                          |   |   |                           |   |   |   |   |   |
|                                                       |   |                         | 36,830   |   |                          |   | 40,646   |                          |   |   | 49,496                         |   |   |   | 65,314 |   |

----

|                                                        |   | Year Ended December 31, 2009 |       |   | 3-month period December 31, 2009 |   |       | 3-month period September 30, 2009 |   |   | 3-month period June 30, 2009 |   |   | 3-month period March 31 2009 |       |
|-------------------------------------------------------------|--------|----------------------------------------|------------|--------|--------------------------------------------|--------|------------|----------------------------------------|--------|--------|--------------------------------------------------|--------|--------|---------------------------------------------|------------|
|                                                        |   |                                   |       |   |                                       |   |       |                                   |   |   |                                             |   |   |                                        |       |
| Income Statements prior to Restatement                      |   |                                   |       |   |                                       |   |       |                                   |   |   |                                             |   |   |                                        |       |
|                                                        |   | $                                      |       |   |                                       | $      |       |                                   |   | $      |                                             |   |   | $                                           |       |   |   | $ |   |   |
| Interest Income                                             |   |                                   | (5         | )      |                                       |   | 69         |                                   |   |   | (10                                              | )      |   |                                        | (30        | ) |   |   | (34 | ) |
|  Forgiveness of accounts payable and loans             |   |                                   | -          |   |                                       |   | -          |                                   |   |   |                                             |   |   |                                        |       |   |   |   |   |   |
|  General and Administrative expenses                   |   |                                   | 81,136     |   |                                       |   | 13,315     |                                   |   |   | 4,659                                            |   |   |                                        | 52,925     |   |   |   | 10,237 |   |
|  Loss on Foreign Exchange                              |   |                                   | -          |   |                                       |   | -          |                                   |   |   | -                                                |   |   |                                        |       |   |   |   |   |   |
|  Amortization                                          |   |                                   | 129,638    |   |                                       |   | 52,321     |                                   |   |   | 46,390                                           |   |   |                                        | 30,927     |   |   |   | - |   |
|  Project development costs (Note 10)                   |   |                                   | -          |   |                                       |   |       |                                   |   |   |                                             |   |   |                                        |       |   |   |   |   |   |
|  Interest Expense                                      |   |                                   | -          |   |                                       |   |       |                                   |   |   |                                             |   |   |                                        |       |   |   |   | - |   |
|                                                        |   |                                   | (210,769   | )      |                                       |   | (65,705    | )                                      |   |   | (51,039                                          | )      |   |                                        | (83,822    | ) |   |   | (10,203 | ) |
| Net loss attributable to non-controlling interest           |   |                                   | -          |   |                                       |   | -          |                                   |   |   | -                                                |   |   |                                        | -          |   |   |   |   |   |
| Net loss attributable to FNEC Shareholders                  |   |                                   | (210,769   | )      |                                       |   | (65,705    | )                                      |   |   | (51,039                                          | )      |   |                                        | (83,822    | ) |   |   | (10,203 | ) |
|                                                        |   |                                   |       |   |                                       |   |       |                                   |   |   |                                             |   |   |                                        |       |   |   |   |   |   |
| Net loss per share, basic and diluted                       |   | $                                      | (0.00      | )      |                                       | $      | (0.00      | )                                      |   | $      | (0.00                                            | )      |   | $                                           | (0.00      | ) |   | $ | (0.01 | ) |
| Weighted average common shares outstanding                  |   |                                   | 60,645,228 |   |                                       |   | 60,645,228 |                                   |   |   | 99,665,228                                       |   |   |                                        | 40,969,624 |   |   |   | 765,228 |   |
|                                                        |   |                                   |       |   |                                       |   |       |                                   |   |   |                                             |   |   |                                        |       |   |   |   |   |   |
| Net Loss                                                    |   |                                   | (210,769   | )      |                                       |   | (65,705    | )                                      |   |   | (51,039                                          | )      |   |                                        | (83,822    | ) |   |   | (10,203 | ) |
| Other Comprehensive Loss                                    |   |                                   | -          |   |                                       |   |       |                                   |   |   | -                                                |   |   |                                        | -          |   |   |   |   |   |
| Comprehensive Loss                                          |   |                                   | (210,769   | )      |                                       |   | (65,705    | )                                      |   |   | (51,039                                          | )      |   |                                        | (83,822    | ) |   |   | (10,203 | ) |
| Comprehensive Loss attributable to non-controlling interest |   |                                   | -          |   |                                       |   |       |                                   |   |   | -                                                |   |   |                                        | -          |   |   |   |   |   |
| Comprehensive Loss attributable to FNEC Shareholders        |   |                                   | (210,769   | )      |                                       |   | (65,705    | )                                      |   |   | (51,039                                          | )      |   |                                        | (83,822    | ) |   |   | (10,203 | ) |

|                                                        |   | Year Ended December 31, 2009 |       |   | 3-month period December 31, 2009 |   |       | 3-month period September 30, 2009 |   |   | 3-month period June 30, 2009 |   |   | 3-month period March 31, 2009 |       |
|-------------------------------------------------------------|--------|----------------------------------------|------------|--------|--------------------------------------------|--------|------------|----------------------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------------------|------------|
|                                                        |   |                                   |       |   |                                       |   |       |                                   |   |   |                                             |   |   |                                         |       |
| Income Statements after restatement                         |   |                                   |       |   |                                       |   |       |                                   |   |   |                                             |   |   |                                         |       |
|                                                        |   | $                                      |       |   |                                       | $      |       |                                   |   | $      |                                             |   |   | $                                            |       |   |   | $ |   |   |
| Interest Income                                             |   |                                   | (5         | )      |                                       |   | 69         |                                   |   |   | (10                                              | )      |   |                                         | (30        | ) |   |   | (34 | ) |
|  Forgiveness of accounts payable and loans             |   |                                   | -          |   |                                       |   | -          |                                   |   |   | -                                                |   |   |                                         | -          |   |   |   | - |   |
|  General and Administrative expenses                   |   |                                   | 81,136     |   |                                       |   | 13,315     |                                   |   |   | 4,659                                            |   |   |                                         | 52,925     |   |   |   | 10,237 |   |
|  Loss on Foreign Exchange                              |   |                                   | -          |   |                                       |   | -          |                                   |   |   | -                                                |   |   |                                         | -          |   |   |   | - |   |
|  Amortization                                          |   |                                   | -          |   |                                       |   |       |                                   |   |   |                                             |   |   |                                         |       |   |   |   | - |   |
|  Project development costs (Note 10)                   |   |                                   | -          |   |                                       |   | -          |                                   |   |   | -                                                |   |   |                                         | -          |   |   |   | - |   |
|  Interest Expense                                      |   |                                   | -          |   |                                       |   | -          |                                   |   |   | -                                                |   |   |                                         | -          |   |   |   | - |   |
|                                                        |   |                                   | (81,131    | )      |                                       |   | (13,384    | )                                      |   |   | (4,649                                           | )      |   |                                         | (52,895    | ) |   |   | (10,203 | ) |
| Net loss attributable to non-controlling interest           |   |                                   | -          |   |                                       |   | -          |                                   |   |   | -                                                |   |   |                                         | -          |   |   |   |   |   |
| Net loss attributable to FNEC Shareholders                  |   |                                   | (81,131    | )      |                                       |   | (13,384    | )                                      |   |   | (4,649                                           | )      |   |                                         | (52,895    | ) |   |   | (10,203 | ) |
|                                                        |   |                                   |       |   |                                       |   |       |                                   |   |   |                                             |   |   |                                         |       |   |   |   |   |   |
| Net loss per share, basic and diluted                       |   | $                                      | (0.00      | )      |                                       | $      | (0.00      | )                                      |   | $      | (0.00                                            | )      |   | $                                            | (0.00      | ) |   | $ | (0.01 | ) |
| Weighted average common shares outstanding                  |   |                                   | 60,645,228 |   |                                       |   | 60,645,228 |                                   |   |   | 99,665,228                                       |   |   |                                         | 40,969,624 |   |   |   | 765,228 |   |
|                                                        |   |                                   |       |   |                                       |   |       |                                   |   |   |                                             |   |   |                                         |       |   |   |   |   |   |
| Net Loss                                                    |   |                                   | (81,131    | )      |                                       |   | (13,384    | )                                      |   |   | (4,649                                           | )      |   |                                         | (52,895    | ) |   |   | (10,203 | ) |
| Other Comprehensive Loss                                    |   |                                   | -          |   |                                       |   |       |                                   |   |   | -                                                |   |   |                                         | -          |   |   |   |   |   |
| Comprehensive Loss                                          |   |                                   | (81,131    | )      |                                       |   | (13,384    | )                                      |   |   | (4,649                                           | )      |   |                                         | (52,895    | ) |   |   | (10,203 | ) |
| Comprehensive Loss attributable to non-controlling interest |   |                                   | -          |   |                                       |   |       |                                   |   |   | -                                                |   |   |                                         | -          |   |   |   |   |   |
| Comprehensive Loss attributable to FNEC Shareholders        |   |                                   | (81,131    | )      |                                       |   | (13,384    | )                                      |   |   | (4,649                                           | )      |   |                                         | (52,895    | ) |   |   | (10,203 | ) |

----

| Before Restatement                                  |   | Year Ended December 31, 2009 |     |   | 3-month period December 31, 2009 |   |    | 3-month period September 30, 2009 |   |   | 3-month period June 30, 2009 |   |   | 3-month period March 31, 2009 |    |
|-----------------------------------------------------|--------|----------------------------------------|----------|--------|--------------------------------------------|--------|---------|----------------------------------------|--------|--------|---------------------------------------------|--------|--------|----------------------------------------------|---------|
| CASH FLOWS FROM OPERATING ACTIVITIES                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |
|                                                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |
| Net loss                                            |   |                                   | (210,769 | )      |                                       |   | (65,705 | )                                      |   |   | (51,040                                     | )      |   |                                         | (83,821 | ) |   |   | (10,203 | ) |
| Adjustments for items not affecting cash            |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Amortization                                        |   |                                   | 129,638  |   |                                       |   | 52,321  |                                   |   |   | 46,390                                      |   |   |                                         | 30,927  |   |   |   | - |   |
| Shares issued for services rendered                 |   |                                   | 32,000   |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | 32,000  |   |   |   | - |   |
| Forgiveness of accounts payable and loans           |   |                                   | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Increase (decrease) in accounts payable             |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
|     and accrued liabilities     |   |                                   | 739      |   |                                       |   | 9,568   |                                   |   |   | (4,200                                      | )      |   |                                         | 4,976   |   |   |   | (9,605 | ) |
|                                                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Net cash used in operating activities               |   |                                   | (48,392  | )      |                                       |   | (3,816  | )                                      |   |   | (8,850                                      | )      |   |                                         | (15,918 | ) |   |   | (19,808 | ) |
|                                                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
|                                                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Loans from Shareholders                             |   |                                   | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Proceeds from sale of capital stock                 |   |                                   | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Payment on the Note Payable to Boreas               |   |                                   | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Proceeds of sale of minority interest in subsidiary |   |                                   | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
|                                                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Net cash provided by financing activities           |   |                                   | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
|                                                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                     |   |                                   | (48,392  | )      |                                       |   | (3,816  | )                                      |   |   | (8,850                                      | )      |   |                                         | (15,918 | ) |   |   | (19,808 | ) |
|                                                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Cash, beginning of period                           |   |                                   | 85,122   |   |                                       |   | 40,546  |                                   |   |   | 49,396                                      |   |   |                                         | 65,314  |   |   |   | 85,122 |   |
|                                                |   |                                   |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| CASH, END OF PERIOD                                 |   |                                   | 36,730   |   |                                       |   | 36,730  |                                   |   |   | 40,546                                      |   |   |                                         | 49,396  |   |   |   | 65,314 |   |

| After Restatement                    |                                                | Year Ended December 31, 2009 |    |   | 3-month period December 31, 2009 |   |    | 3-month period September 30, 2009 |   |   | 3-month period June 30, 2009 |    |   | 3-month period March 31, 2009 |    |
|--------------------------------------|-----------------------------------------------------|----------------------------------------|---------|--------|--------------------------------------------|--------|---------|----------------------------------------|--------|--------|---------------------------------------------|---------|--------|----------------------------------------------|---------|
| CASH FLOWS FROM OPERATING ACTIVITIES |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |
|                                 |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |
|                                 | Net loss                                            |                                   |    | -      |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | - |   |   |   | - |   |
|                                 | Adjustments for items not affecting cash            |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
|                                 | Amortization                                        |                                   |    | -      |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | - |   |   |   | - |   |
|                                 | Shares issued for services rendered                 |                                   |    | 32,000 |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | 32,000 |   |   |   | - |   |
|                                 | Forgiveness of accounts payable and loans           |                                   |    | -      |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | - |   |   |   | - |   |
|                                 | Increase (decrease) in accounts payable             |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
|                                 |     and accrued liabilities     |                                   |    | 739    |                                       |   |    | 9,568                                  |   |   |                                        | (4,201  | )      |                                         |    | 4,977 |   |   |   | (9,605 | ) |
|                                 |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
|                                 | Net cash used in operating activities               |                                   |    | 32,739 |                                       |   |    | 9,568                                  |   |   |                                        | (4,201  | )      |                                         |    | 36,977 |   |   |   | (9,605 | ) |
|                                 |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |
|                                 |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
|                                 | Loans from Shareholders                             |                                   |    | -      |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | - |   |   |   | - |   |
|                                 | Proceeds from sale of capital stock                 |                                   |    | -      |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | - |   |   |   | - |   |
|                                 | Purchase of Indian License from Boreas into Pavana  |                                   |    | -      |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | - |   |   |   | - |   |
|                                 | Proceeds of sale of minority interest in subsidiary |                                   |    | -      |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | - |   |   |   | - |   |
|                                 |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
|                                 | Net cash provided by financing activities           |                                   |    | -      |                                       |   |    | -                                      |   |   |                                        | -       |   |                                         |    | - |   |   |   | - |   |
|                                 |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH      |                                                |                                   | 32,739  |   |                                       |   | 9,568   |                                   |   |   | (4,201                                      | )       |   |                                         | 36,977  |   |   |   | (9,605 | ) |
|                                 |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
|                                 | Cash, beginning of period                           |                                   |    | 85,122 |                                       |   |    | 108,293                                |   |   |                                        | 112,494 |   |                                         |    | 75,517 |   |   |   | 85,122 |   |
|                                 |                                                |                                   |    |   |                                       |   |    |                                   |   |   |                                        |    |   |                                         |    |   |   |   |   |   |   |
| CASH, END OF PERIOD                  |                                                |                                   | 117,861 |   |                                       |   | 117,861 |                                   |   |   | 108,293                                     |    |   |                                         | 112,494 |   |   |   | 75,517 |   |

----

| Before Restatement                                  |   | Year Ended December 31, 2009 |     |   | 3-month period December 31, 2009 |   |    | 3-month period September 30, 2009 |   |   | 3-month period June 30, 2009 |   |   | 3-month period March 31, 2009 |    |
|-----------------------------------------------------|--------|-----------------------------------|----------|--------|--------------------------------------------|--------|---------|----------------------------------------|--------|--------|---------------------------------------------|--------|--------|----------------------------------------------|---------|
| CASH FLOWS FROM OPERATING ACTIVITIES                |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |
|                                                |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |
| Net loss                                            |   |                              | (210,769 | )      |                                       |   | (65,705 | )                                      |   |   | (51,040                                     | )      |   |                                         | (83,821 | ) |   |   | (10,203 | ) |
| Adjustments for items not affecting cash            |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Amortization                                        |   |                              | 129,638  |   |                                       |   | 52,321  |                                   |   |   | 46,390                                      |   |   |                                         | 30,927  |   |   |   | - |   |
| Shares issued for services rendered                 |   |                              | 32,000   |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | 32,000  |   |   |   | - |   |
| Forgiveness of accounts payable and loans           |   |                              | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Increase (decrease) in accounts payable             |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
|     and accrued liabilities     |   |                              | 739      |   |                                       |   | 9,568   |                                   |   |   | (4,200                                      | )      |   |                                         | 4,976   |   |   |   | (9,605 | ) |
|                                                |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Net cash used in operating activities               |   |                              | (48,392  | )      |                                       |   | (3,816  | )                                      |   |   | (8,850                                      | )      |   |                                         | (15,918 | ) |   |   | (19,808 | ) |
|                                                |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Loans from Shareholders                             |   |                              | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Proceeds from sale of capital stock                 |   |                              | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Payment on the Note Payable to Boreas               |   |                              | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Proceeds of sale of minority interest in subsidiary |   |                              | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Net cash provided by financing activities           |   |                              | -        |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
|                                                |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                     |   |                              | (48,392  | )      |                                       |   | (3,816  | )                                      |   |   | (8,850                                      | )      |   |                                         | (15,918 | ) |   |   | (19,808 | ) |
| Cash, beginning of period                           |   |                              | 85,122   |   |                                       |   | 40,546  |                                   |   |   | 49,396                                      |   |   |                                         | 65,314  |   |   |   | 85,122 |   |
|                                                |   |                              |     |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| CASH, END OF PERIOD                                 |   |                              | 36,730   |   |                                       |   | 36,730  |                                   |   |   | 40,546                                      |   |   |                                         | 49,396  |   |   |   | 65,314 |   |

| After Restatement                                   |   | Year Ended December 31, 2009 |    |   | 3-month period December 31, 2009 |   |    | 3-month period September 30, 2009 |   |   | 3-month period June 30, 2009 |   |   | 3-month period March 31, 2009 |    |
|-----------------------------------------------------|--------|-----------------------------------|---------|--------|--------------------------------------------|--------|---------|----------------------------------------|--------|--------|---------------------------------------------|--------|--------|----------------------------------------------|---------|
| CASH FLOWS FROM OPERATING ACTIVITIES                |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |
|                                                |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |
| Net loss                                            |   |                              | (81,131 | )      |                                       |   | (13,384 | )                                      |   |   | (4,649                                      | )      |   |                                         | (52,895 | ) |   |   | (10,203 | ) |
| Adjustments for items not affecting cash            |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Amortization                                        |   |                              | -       |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Shares issued for services rendered                 |   |                              | 32,000  |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | 32,000  |   |   |   | - |   |
| Forgiveness of accounts payable and loans           |   |                              | -       |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Increase (decrease) in accounts payable             |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
|     and accrued liabilities     |   |                              | 739     |   |                                       |   | 9,568   |                                   |   |   | (4,201                                      | )      |   |                                         | 4,977   |   |   |   | (9,605 | ) |
| Net cash used in operating activities               |   |                              | (48,392 | )      |                                       |   | (3,816  | )                                      |   |   | (8,850                                      | )      |   |                                         | (15,918 | ) |   |   | (19,808 | ) |
|                                                |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Loans from Shareholders                             |   |                              | -       |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Proceeds from sale of capital stock                 |   |                              | -       |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Purchase of Indian License from Boreas into Pavana  |   |                              | -       |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
| Proceeds of sale of minority interest in subsidiary |   |                              | -       |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
|                                                |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| Net cash provided by financing activities           |   |                              | -       |   |                                       |   | -       |                                   |   |   | -                                           |   |   |                                         | -       |   |   |   | - |   |
|                                                |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                     |   |                              | (48,392 | )      |                                       |   | (3,816  | )                                      |   |   | (8,850                                      | )      |   |                                         | (15,918 | ) |   |   | (19,808 | ) |
| Cash, beginning of period                           |   |                              | 85,122  |   |                                       |   | 40,546  |                                   |   |   | 49,396                                      |   |   |                                         | 65,314  |   |   |   | 85,122 |   |
|                                                |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |
| CASH, END OF PERIOD                                 |   |                              | 36,730  |   |                                       |   | 36,730  |                                   |   |   | 40,546                                      |   |   |                                         | 49,396  |   |   |   | 65,314 |   |
|                                                |   |                              |    |   |                                       |   |    |                                   |   |   |                                        |   |   |                                         |    |   |   |   |   |   |

----

| Year ended December 31, 2009 (1)       |   | High   |   |   | Low    |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| 1st quarter, ended March 31, 2009*     |   | $      | 1.55   |   |   | $      | 0.30 |   |
| 2nd quarter, ended June 30, 2009       |   | $      | 1.02   |   |   | $      | 0.31 |   |
| 3rd quarter, ended September 30, 2009  |   | $      | 3.00   |   |   | $      | 1.01 |   |
| 4th quarter, ended December 31, 2009   |   | $      | 1.10   |   |   | $      | 0.32 |   |
| Year ended December 31, 2008 (1)       |   |   |   |   |   |   |   |   |
| 1st quarter, ended March 31, 2008*     |   | $      | 4.50   |   |   | $      | 1.50 |   |
| 2nd quarter, ended June 30, 2008*      |   | $      | 9.90   |   |   | $      | 0.40 |   |
| 3rd quarter, ended September 30, 2008* |   | $      | 5.00   |   |   | $      | 0.50 |   |
| 4th quarter, ended December 31, 2008   |   | $      | 2.00   |   |   | $      | 0.31 |   |

----

| Plan category                                              | Number ofsecurities to beissued uponexercise ofoutstandingoptions, warrantsand rights(a) | Weighted-averageexercise price ofoutstandingoptions, warrantsand rights(b) | Number ofsecuritiesremaining availablefor future issuanceunder equitycompensatonplans [excludingsecurities reflectedin column (a)] (c) |
|------------------------------------------------------------|------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensation plans approved by security holders     | None                                                                                     | N/A                                                                        | None                                                                                                                                   |
| Equity compensation plans not approved by security holders | None                                                                                     | N/A                                                                        | 2,170,000 Common Shares                                                                                                                |
| Total                                                      | None                                                                                     | N/A                                                                        | 2,170,000 Common Shares                                                                                                                |

----

----

| *   | Product Research and Development, primarily related to refining wind turbine assembly system designs, and establishing a supply chain and production. We estimate product development related expenses for the next twelve months will be approximately $975,000. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *   | Marketing, including efforts to present our products to potential end users, direct marketing and attendance at trade shows as discussed above.  We estimate initial marketing expenses for the next twelve months will be approximately $300,000. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *   | Research and Development costs consist of developing and testing our company website. We estimate that research and development costs for the next twelve months will be approximately $2,000. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *   | Office, assembly and warehouse space, to accommodate our development and production plans as discussed above.  We estimate that our facilities cost and utilities for the next twelve month will be approximately $100,000. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *   | General working capital, materials, inventory, labor and consulting costs of approximately $1,750,000. |
|---------------|--------------------------------------------------------------------------------------------------------|

----

----

----

----

----

| -      | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;                                                                                                                                                                      |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                  |
| -      | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|   |                                                                                                                                                                                                                                                                                                                  |
| -      | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our consolidated financial statements.                                                                                                       |

----

----

| i. | Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity; |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii. | Engaging in any type of business practice; or |
|-----|-----------------------------------------------|

| iii. | Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws; |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   i. | Any Federal or State securities or commodities law or regulation; or |
|----------------|----------------------------------------------------------------------|

|   ii. | Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   iii. | Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity. |
|------------------|-------------------------------------------------------------------------------------------------------|

----

| Name and principal position           | Year   | Salary | Bonus  | Stock awards | Option awards | Nonequity incentive plan compensation | Nonqualified deferred compensation earnings | All other compensation | Total   |
|---------------------------------------|--------|--------|--------|--------------|---------------|---------------------------------------|---------------------------------------------|------------------------|---------|
|                                  |   | ($)    | ($)    | ($)          | ($)           | ($)                                   | ($)                                         | ($)                    | ($)     |
| Doug Lindeblom, President CEO         | 2009   | $0     | $0     | $0           | $0            | $0                                    | $0                                          | $0                     | $0      |
|                                  |   |   |   |         |          |                                  |                                        |                   |
| Peter Wanner, Chief Financial Officer | 2009   | $0     | $0     | $32,000 (1)  | $0            | $0                                    | $0                                          | $0                     | $32,000 |
| 2008                                  | $0     | $0     | $0     | $0           | $0            | $0                                    | $0                                          | $0                     |
| Gianni Caputo, Vice President         | 2009   | $0     | $0     | $0           | $0            | $0                                    | $0                                          | $0                     | $0      |
|                                  |   |   |   |         |          |                                  |                                        |                   |

| (1)  | Stock award to Peter Wanner consists of a one-time grant of 100,000 restricted common shares approved by the Board of Directors of the Registrant,with Mr. Wanner abstaining from the discussion and voting.  The shares were not issued pursuant to any stock plan maintained by the Registrant, and are valued based on the closing price of the Registrant's common shares on the date of issuance. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Title of Class | Name and Address of Beneficial Owner                                      |  Amount and Nature of Beneficial Ownership(1) |  Percent of Class |   |
|----------------|---------------------------------------------------------------------------|----------------------------------------------------|------------------------|--------|
| Common         | Lubi Investments, Inc.(2) 1551 Second Street Sarasota, Florida 34236 |                                               | 85,462,000             |   | 85.84 | % |
| Common         | Doug Lindeblom 1551 Second Street Sarasota FL 34236             |                                               | 296,400                |   | 0.03 | % |
| Common         | Gianni Caputo 1551 Second Street Sarasota FL 34236              |                                               | 296,400                |   | 0.03 | % |
| Common         | Peter Wanner 44 Greystone Crescent Georgetown ONT L7G 1G9 Canada          |                                               | 165,000                |   | 0.17 | % |
| Common         | Directors and officers as a group                                         |                                               | 757,800                |   | 0.76 | % |

| (1) | None of these security holders has the right to acquire any amount of shares within sixty days from options,warrants, rights, conversionprivilege, or similar obligations. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting orinvestment power with respect to securities. Shares of our common stock which may be acquired upon exercise of stock options or warrants which are currently exercisable or which become exercisable within 60 days after the date indicated in the table are deemed beneficially ownedby the optionees.  Subject to any applicable community property laws, the persons or entities named in the table above have sole voting andinvestment power with respect to all shares indicated as beneficially owned by them. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Lubi Investments Inc. was incorporated and is beneficially owned and controlled by Mr. Frank Cavicchia, of the same address. |
|-----|------------------------------------------------------------------------------------------------------------------------------|

----

----

| (a)   | The following documents are filed as part of this report: |
|-----------------|-----------------------------------------------------------|

| (b)   | Exhibits included or incorporated by reference herein are set forth in the following Exhibit Index.  Exhibits referred to as "Previously Filed" are incorporated herein by reference. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Exhibit No. |   | Document                            |   | Location         |
|-------------|--------|-------------------------------------|--------|------------------|
| 3.1         |   | Articles of Incorporation           |   | Previously Filed |
| 3.2         |   | Bylaws                              |   | Previously Filed |
| 4.1         |   | S-8 Registration Filed 02/25/2005   |   | Previously Filed |
| 4.2         |   | S-8 Registration Filed 04/11/2005   |   | Previously Filed |
| 19          |   | DEF 14-C Information Statement      |   | Previously Filed |
| 21          |   | Subsidiaries of the Registrant      |   | Included         |
| 23.1        |   | Consent - Ind. Reg. Pub. Accountant |   | Included         |
| 31.1        |   | Sect. 302 Certification             |   | Included         |
| 31.2        |   | Sect. 302 Certification             |   | Included         |
| 32.1        |   | Sect. 906 Certification             |   | Included         |
| 32.2        |   | Sect. 906 Certification             |   | Included         |

----

|                 | Registrant:  FIRST NATIONAL ENERGY CORPORATION |                    |
|----------------------|----------------------------------------------------------|-------------------------|
|                 |                                                     |                    |   |
| Date: April 20, 2011 | By:                                                      | /s/ Gregory Sheller     |   |
|                 |                                                     | Gregory Sheller         |   |
|                 |                                                     | Chief Executive Officer |   |

| Date: April 20, 2011 | By:    | /s/ Gregory Sheller                    |   |
|----------------------|--------|----------------------------------------|--------|
|                 |   | Gregory ShellerChief Executive Officer |   |

| Date: April 20, 2011 | By:    | /s/ Peter Wanner                    |   |
|----------------------|--------|-------------------------------------|--------|
|                 |   | Peter WannerChief Financial Officer |   |

----

----

----

| Report of Independent Registered Public Accounting Firm                                                                                                                                      |   |   | F-2         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|
|                                                                                                                                                                                         |   |   |        |   |
| Independent accountant’s report                                                                                                                                                        |   |   | F-3         |   |
|                                                                                                                                                                                         |   |   |        |   |
| Consolidated Balance Sheets as at December 31, 2009 (restated) and December 31, 2008                                                                                                         |   |   | F-4         |   |
|                                                                                                                                                                                         |   |   |        |   |
| Consolidated Statements of Operations and comprehensive loss for the years ended December 31, 2009 (restated) and December 31, 2008 and for the cumulative period (restated) since inception |   |   | F-5         |   |
|                                                                                                                                                                                         |   |   |        |   |
| Consolidated Statements of Cash Flows for the years ended December 31, 2009 (restated) and December 31, 2008 and for the cumulative period (restated) since inception                        |   |   | F-6         |   |
|                                                                                                                                                                                         |   |   |        |   |
| Consolidated Statements of Changes in Stockholders’ Equity (Deficiency) for the period since inception                                                                                 |   |   | F-7/F-9     |   |
|                                                                                                                                                                                         |   |   |        |   |
| Notes to Consolidated Financial Statements                                                                                                                                                   |   |   | F-10 / F-20 |   |

----

|   |   1167 Caledonia Road  Toronto, Ontario M6A 2X1  Tel: 416 785 5353  Fax: 416 785 5663 |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

----

|      Toronto, Ontario, Canada                     |  Chartered Accountants       |
|---------------------------------------------------------------------------------|-----------------------------------|
|      April 12, 2010, except for notes 1(c), 4, 7,      |  Licensed Public Accountants |
|        8 and 13 which are as of May 11, 2011 |                              |

|          | Initialed asread |
|---------------|------------------|
|     |             |   |

----

|                                          |                                                    |   | 2009       |     |   | 2008   |   |
|-----------------------------------------------|---------------------------------------------------------|--------|------------|----------|--------|--------|--------|
|                                          |                                                    |   | (restated) |     |   |   |   |
|                                          |                                                    |   |       | $        |   |   |   | $ |   |
|  ASSETS                                  |                                                    |   |       |     |   |   |   |   |   |
|                                          |  CURRENT ASSETS                                    |   |       |     |   |   |   |   |   |
|                                          |  Cash                                              |   |       | 36,730   |   |   |   | 85,122 |   |
|                                          |                                                    |   |       | 36,730   |   |   |   | 85,122 |   |
|                                          |                                                    |   |       |     |   |   |   |   |   |
|                                          |  License for SWEG technology (Note 4)              |   |       | 100      |   |   |   | - |   |
|                                          |                                                    |   |       |     |   |   |   |   |   |
|                                          |                                                    |   |       | 36,830   |   |   |   | 85,122 |   |
|                                          |                                                    |   |       |     |   |   |   |   |   |
|                                          |                                                    |   |       |     |   |   |   |   |   |
|  LIABILITIES                             |                                                    |   |       |     |   |   |   |   |   |
|                                          |  CURRENT LIABILITIES                               |   |       |     |   |   |   |   |   |
|                                          |  Accounts payable and accrued liabilities (Note 5) |   |       | 14,568   |   |   |   | 13,829 |   |
|                                          |  Loans from shareholders (Note 6)                  |   |       | 258,313  |   |   |   | 258,313 |   |
|                                          |                                                    |   |       | 272,881  |   |   |   | 272,142 |   |
|                                          |                                                    |   |       |     |   |   |   |   |   |
|  Going Concern (Note 2)                  |                                                    |   |       |     |   |   |   |   |
|                                          |                                                    |   |       |     |   |   |   |   |   |
|  STOCKHOLDERS’ EQUITY (DEFICIENCY) |                                                    |   |       |     |   |   |   |   |
|                                          |                                                    |   |       |     |   |   |   |   |   |
|                                          |  Capital stock (Note 7)                            |   |       | 99,665   |   |   |   | 76,524 |   |
|                                          |  Additional paid-in-capital                        |   |       | 330,296  |   |   |   | 321,337 |   |
|                                          |  Deficit, Accumulated during the devlopment stage  |   |       | (666,012 | )      |   |   | (584,881 | ) |
|                                          |                                                    |   |       | (236,051 | )      |   |   | (187,020 | ) |
|                                          |                                                    |   |       | 36,830   |   |   |   | 85,122 |   |

----

|                                                 |   | Cumulative |     |       |       |   |    |    |   |
|------------------------------------------------------|--------|------------|----------|------------|------------|--------|---------|---------|--------|
|                                                 |   | Since      |     |       |       |   |    |    |   |
|                                                 |   | Inception  |     |       | 2009       |   |    | 2008    |   |
|                                                 |   | (restated) |     |       | (restated) |   |    |    |   |
|                                                 |   |       | $        |       |       |   | $  |    |   |   | $ |   |
| OPERATING EXPENSES                                   |   |       |     |       |       |   |    |    |   |   |   |   |
|                                                 |   |       |     |       |       |   |    |    |   |   |   |   |
| Interest Income                                      |   |       | (6,904   | )          |       |   | (5      | )       |   |   | (1,999 | ) |
|                                                 |   |       |     |       |       |   |    |    |   |   |   |   |
|  Forgiveness of accounts payable and loans      |   |       | (47,394  | )          |       |   |    |    |   |   |   |   |
|  General and administrative expenses            |   |       | 443,647  |       |       |   | 81,136  |    |   |   | 35,027 |   |
|  Loss on Foreign Exchange                       |   |       | 580      |       |       |   | -       |    |   |   | 291 |   |
|  Amortization                                   |   |       | -        |       |       |   | -       |    |   |   | - |   |
|  Project development costs (Note 9)             |   |       | 272,857  |       |       |   | -       |    |   |   | 45,326 |   |
|  Interest Expense                               |   |       | 3,226    |       |       |   | -       |    |   |   | - |   |
|                                                 |   |       | 666,012  |       |       |   | 81,131  |    |   |   | 78,645 |   |
|                                                 |   |       |     |       |       |   |    |    |   |   |   |   |
|                                                 |   |       |     |       |       |   |    |    |   |   |   |   |
| NET LOSS AND COMPREHENSIVE LOSS                      |   |       | (666,012 | )          |       |   | (81,131 | )       |   |   | (78,645 | ) |
|                                                 |   |       |     |       |       |   |    |    |   |   |   |   |
| Net loss per share, basic and diluted                |   |       |     |       |       | $      | (0.00   | )       |   | $ | (0.10 | ) |
|                                                 |   |       |     |       |       |   |    |    |   |   |   |   |
| Weighted average common shares outstanding (Note 11) |   |       |     | 60,645,228 |       |   |    | 764,356 |   |

----

|                                                                 |   | Cumulative |         |   |       |   |      |   |   |
|----------------------------------------------------------------------|--------|------------|--------------|--------|------------|--------|-----------|--------|--------|
|                                                                 |   | Since      |         |   |       |   |      |   |   |
|                                                                 |   | Inception  |         |   | 2009       |   |      | 2008   |   |
|                                                                 |   | (restated) |         |   | (restated) |   |      |   |   |
|                                                                 |   |       | $            |   |       |   | $         |   |   |   | $ |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  Net loss                                                       |   |       | (666,012     | )      |       |   | (81,131   | )      |   |   | (78,645 | ) |
|  Adjustments for items not affecting cash                       |   |       |         |   |       |   |      |   |   |   |   |   |
|  Amortization                                                   |   |       | -            |   |       |   | -         |   |   |   |   |   |
|  Shares issued for services rendered                            |   |       | 332,390      |   |       |   | 32,000    |   |   |   | 500 |   |
|  Forgiveness of accounts payable and loans                      |   |       | (47,394      | )      |       |   |      |   |   |   |   |   |
|  Increase in accounts payable and accrued liabilities      |   |       | 18,567  |   |       |   | 739  |   |   |   | 4,954  |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  Net cash used in operating activities                          |   |       | (362,449     | )      |       |   | (48,392   | )      |   |   | (73,191 | ) |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  CASH FLOWS FROM FINANCING ACTIVITIES                           |   |       |         |   |       |   |      |   |   |   |   |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  Loans from Shareholders                                        |   |       | 301,708      |   |       |   | -         |   |   |   |   |   |
|  Proceeds from sale of capital stock                            |   |       | 97,471       |   |       |   |      |   |   |   |   |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  Net cash provided by financing activities                      |   |       | 399,179      |   |       |   | -         |   |   |   | - |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  NET INCREASE (DECREASE) IN CASH                                |   |       | 36,730       |   |       |   | (48,392   | )      |   |   | (73,191 | ) |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  Cash, beginning of period                                      |   |       | -            |   |       |   | 85,122    |   |   |   | 158,313 |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  CASH, END OF PERIOD                                            |   |       | 36,730       |   |       |   | 36,730    |   |   |   | 85,122 |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  INCOME TAXES PAID                                              |   |       | -            |   |       |   | -         |   |   |   | - |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  INTEREST PAID                                                  |   |       | 3,226        |   |       |   | -         |   |   |   | - |   |
|                                                                 |   |       |         |   |       |   |      |   |   |   |   |   |
|  NON-CASH TRANSACTIONS - PURCHASE OF SWEG TECHNOLOGY FOR SHARES |   |       | 1,855,605    |   |       |   | 1,855,605 |   |   |   |   |   |

----

|                                                  |   | Common stock - dollar amount at par value |   |   | Common stock - number of shares |   |      | Common stock subscribed |   |   | Additional paid-in capital |   |   | Deficit accumulated during the development stage |   |   | Total stockholders' equity (deficit) of the Company |   |
|-------------------------------------------------------|--------|-------------------------------------------|--------|--------|---------------------------------|--------|-----------|-------------------------|--------|--------|----------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                                                  |   |                                      |   |   |                            | $      |      |                    |   | $      |                       |   |   | $                                                |   |   |                                                     | $      |   |   |   | $ |   |
|                                                  |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   |   |   |   |   |   |
|  Balance at November 16, 2000                    |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   |   |   |   |   |   |
|  Issuance of common stock for cash               |   |                                      | 100    |   |                            |   | 100,000   |                    |   |   |                       |   |   |                                             | 900    |   |                                                     |   |   |   |   |   | 1,000 |   |
|  Net Loss for the Period                         |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   | (968 | ) |   |   | (968 | ) |
|                                                  |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   |   |   |   |   |   |   |
|  Balance as of December 31, 2000                 |   |                                      | 100    |   |                            |   | 100,000   |                    |   |   | -                          |   |   |                                             | 900    |   |                                                     |   | (968 | ) |   |   | 32 |   |
|                                                  |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   |   |   |   |   |   |   |
|  Issuance of stock for cash                      |   |                                      | 400    |   |                            |   | 400,000   |                    |   |   |                       |   |   |                                             | 3,600  |   |                                                     |   |   |   |   |   | 4,000 |   |
|  Issuance of stock for cash                      |   |                                      | 700    |   |                            |   | 700,000   |                    |   |   |                       |   |   |                                             | 6,300  |   |                                                     |   |   |   |   |   | 7,000 |   |
|  Issuance of stock for cash                      |   |                                      | 850    |   |                            |   | 850,000   |                    |   |   |                       |   |   |                                             | 7,650  |   |                                                     |   |   |   |   |   | 8,500 |   |
|  Currency Translation                            |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             | 100    |   |                                                     |   |   |   |   |   | 100 |   |
|  Net Loss for the Year                           |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   | (23,954 | ) |   |   | (23,954 | ) |
|                                                  |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   |   |   |   |   |   |   |
|  Balance as of December 31, 2001                 |   |                                      | 2,050  |   |                            |   | 2,050,000 |                    |   |   | -                          |   |   |                                             | 18,550 |   |                                                     |   | (24,922 | ) |   |   | (4,322 | ) |
|                                                  |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   |   |   |   |   |   |   |
|  Expiration of recission offer for sale of stock |   |                                      | 64     |   |                            |   | 63,536    |                    |   |   |                       |   |   |                                             | 6,290  |   |                                                     |   |   |   |   |   | 6,354 |   |
|  Net Loss for the Year                           |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   | (26,047 | ) |   |   | (26,047 | ) |
|                                                  |   |                                      |   |   |                            |   |      |                    |   |   |                       |   |   |                                             |   |   |                                                     |   |   |   |   |   |   |   |
|  Balance as of December 31, 2002                 |   |                                      | 2,114  |   |                            |   | 2,113,536 |                    |   |   | -                          |   |   |                                             | 24,840 |   |                                                     |   | (50,969 | ) |   |   | (24,015 | ) |

----

|                                      |   | Common stock - dollar amount at par value |   |   | Common stock - number of shares |   |       | Common stock subscribed |   |   | Additional paid-in capital |   |   |  Deficit accumulated during the development stage |    |   | Total stockholders' deficit of the Company |   |
|-------------------------------------------|--------|-------------------------------------------|--------|--------|---------------------------------|--------|------------|-------------------------|--------|--------|----------------------------|--------|--------|--------------------------------------------------------|---------|--------|-------------------------------------------------|--------|
|                                      |   |                                      |   |   |                            | $      |       |                    |   | $      |                       |   |   | $                                                      |    |   |                                            | $      |   |   |   | $ |   |
|                                      |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   |   |   |   |   |   |
|  Stock split 5:1                     |   |                                      | 8,454  |   |                            |   | 8,454,144  |                    |   |   |                       |   |   |                                                   | (8,454  | )      |                                            |   |   |   |   |   | - |   |
|  Shares issued for services rendered |   |                                      | 200    |   |                            |   | 200,000    |                    |   |   |                       |   |   |                                                   | 79,800  |   |                                            |   |   |   |   |   | 80,000 |   |
|  Net Loss for the Year               |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   | (107,245 | ) |   |   | (107,245 | ) |
|                                      |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   |   |   |   |   |   |   |
|  Balance as of December 31, 2003     |   |                                      | 10,768 |   |                            |   | 10,767,680 |                    |   |   | -                          |   |   |                                                   | 96,186  |   |                                            |   | (158,214 | ) |   |   | (51,260 | ) |
|                                      |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   |   |   |   |   |   |   |
|  Stock split 7:1                     |   |                                      | 64,606 |   |                            |   | 64,606,080 |                    |   |   |                       |   |   |                                                   | (64,606 | )      |                                            |   |   |   |   |   | - |   |
|  Shares issued for services rendered |   |                                      | 30     |   |                            |   | 30,000     |                    |   |   |                       |   |   |                                                   | 15,870  |   |                                            |   |   |   |   |   | 15,900 |   |
|  Shares subscribed                   |   |                                      |   |   |                            |   |       |                    |   |   | 146                        |   |   |                                                   | 70,371  |   |                                            |   |   |   |   |   | 70,517 |   |
|  Shares issued for services rendered |   |                                      | 44     |   |                            |   | 43,000     |                    |   |   |                       |   |   |                                                   | 9,956   |   |                                            |   |   |   |   |   | 10,000 |   |
|  Net Loss for the Year               |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   | (75,414 | ) |   |   | (75,414 | ) |
|                                      |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   |   |   |   |   |   |   |
|  Balance as of December 31, 2004     |   |                                      | 75,448 |   |                            |   | 75,446,760 |                    |   |   | 146                        |   |   |                                                   | 127,777 |   |                                            |   | (233,628 | ) |   |   | (30,257 | ) |
|                                      |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   |   |   |   |   |   |   |
|  Shares issued for services rendered |   |                                      | 830    |   |                            |   | 830,000    |                    |   |   |                       |   |   |                                                   | 193,160 |   |                                            |   |   |   |   |   | 193,990 |   |
|  Net Loss for the Year               |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   | (208,886 | ) |   |   | (208,886 | ) |
|                                      |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   |   |   |   |   |   |   |
|  Balance as of December 31, 2005     |   |                                      | 76,278 |   |                            |   | 76,276,760 |                    |   |   | 146                        |   |   |                                                   | 320,937 |   |                                            |   | (442,514 | ) |   |   | (45,153 | ) |
|                                      |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   |   |   |   |   |   |   |
|  Net Loss for the Year               |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   | (32,962 | ) |   |   | (32,962 | ) |
|                                      |   |                                      |   |   |                            |   |       |                    |   |   |                       |   |   |                                                   |    |   |                                            |   |   |   |   |   |   |   |
|  Balance as of December 31, 2006     |   |                                      | 76,278 |   |                            |   | 76,276,760 |                    |   |   | 146                        |   |   |                                                   | 320,937 |   |                                            |   | (475,476 | ) |   |   | (78,115 | ) |

----

|                                             |   |  Common stock - dollar amount at par value |    |   | Common stock - number of shares |   |        | Common stock subscribed |   |   | Additional paid-in capital |   |   |  Deficit accumulated during the development stage |    |   | Total stockholders' deficit of the Company |    |
|--------------------------------------------------|--------|-------------------------------------------------|---------|--------|---------------------------------|--------|-------------|-------------------------|--------|--------|----------------------------|--------|--------|--------------------------------------------------------|---------|--------|-------------------------------------------------|---------|
|                                             |   |                                            |    |   |                            | $      |        |                    |   | $      |                       |   |   | $                                                      |    |   |                                            | $       |   |   |   | $ |   |
|                                             |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    |   |   |   |   |   |
|  Net Loss for the Year                      |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            | (30,760 | ) |   |   | (30,760 | ) |
|  Issue shares bought under subscription     |   |                                            | 146     |   |                            |   | 146,000     |                    |   |   | (146                       | )      |   |                                                   |    |   |                                            |    |   |   |   |   | - |   |
|                                             |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    |   |   |   |   |   |   |
|  Balance as of December 31, 2007            |   |                                            | 76,424  |   |                            |   | 76,422,760  |                    |   |   | -                          |   |   |                                                   | 320,937 |   |                                            |    | (506,236 | ) |   |   | (108,875 | ) |
|                                             |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    |   |   |   |   |   |   |
|                                             |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    |   |   |   |   |   |   |
|  Shares issued for services rendered        |   |                                            | 100     |   |                            |   | 100,000     |                    |   |   |                       |   |   |                                                   | 400     |   |                                            |    |   |   |   |   | 500 |   |
|  Net Loss for the period                    |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    | (78,645 | ) |   |   | (78,645 | ) |
|                                             |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    |   |   |   |   |   |   |
|  Balance as of December 31, 2008            |   |                                            | 76,524  |   |                            |   | 76,522,760  |                    |   |   | -                          |   |   |                                                   | 321,337 |   |                                            |    | (584,881 | ) |   |   | (187,020 | ) |
|                                             |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    |   |   |   |   |   |   |
|  Reverse Stock split 1:100                  |   |                                            | (75,759 | )      |                            |   | (75,757,532 | )                       |   |   |                       |   |   |                                                   | 75,759  |   |                                            |    |   |   |   |   | - |   |
|  Shares issued for services rendered        |   |                                            | 100     |   |                            |   | 100,000     |                    |   |   |                       |   |   |                                                   | 31,900  |   |                                            |    |   |   |   |   | 32,000 |   |
|  Purchase of SWEG license for shares        |   |                                            | 98,800  |   |                            |   | 98,800,000  |                    |   |   |                       |   |   |                                                   | (98,700 | )      |                                            |    |   |   |   |   | 100 |   |
|  Net Loss for the Period                    |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    | (81,131 | ) |   |   | (81,131 | ) |
|                                             |   |                                            |    |   |                            |   |        |                    |   |   |                       |   |   |                                                   |    |   |                                            |    |   |   |   |   |   |   |
|  Balance as of December 31, 2009 - restated |   |                                            | 99,665  |   |                            |   | 99,665,228  |                    |   |   | -                          |   |   |                                                   | 330,296 |   |                                            |    | (666,012 | ) |   |   | (236,051 | ) |

----

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|                                             |   | Original Presentation |      |   | Restatement Adjustment |   |       | Restated Amount |   |
|--------------------------------------------------|--------|-----------------------|-----------|--------|------------------------|--------|------------|----------------------|--------|
| Balance Sheet                                    |   |                  |      |   |                   |   |       |                 |   |
| License of SWEG technology - asset value         |   |                  | 1,855,605 |   |                   |   | (1,855,505 | )                    |   |   | 100 |   |
| License amortization                             |   |                  | 129,638   |   |                   |   | (129,638   | )                    |   |   | - |   |
| License of SWEG Technology - net of amortization |   |                  | 1,725,967 |   |                   |   | (1,725,867 | )                    |   |   | 100 |   |
| Total Assets                                     |   |                  | 1,762,697 |   |                   |   | (1,725,867 | )                    |   |   | 36,830 |   |
| Additional Paid-in Capital                       |   |                  | 2,185,801 |   |                   |   | (1,855,505 | )                    |   |   | 330,296 |   |
| Total Stockholders' Euqity (Deficit)             |   |                  | 1,489,816 |   |                   |   | (1,725,867 | )                    |   |   | (236,051 | ) |
|                                             |   |                  |      |   |                   |   |       |                 |   |   |   |   |
| Statement of Operations                          |   |                  |      |   |                   |   |       |                 |   |   |   |   |
| Amortization                                     |   |                  | 129,638   |   |                   |   | (129,638   | )                    |   |   | - |   |
| Net Loss and Comprehensive Loss                  |   |                  | (210,769  | )      |                   |   | 129,638    |                 |   |   | (81,131 | ) |
| Net Loss per share, basic and diluted            |   |                  | (0.00     | )      |                   |   | (0.00      | )                    |   |   | (0.00 | ) |
|                                             |   |                  |      |   |                   |   |       |                 |   |   |   |   |
| Changes in Stockholders Equity (Deficit)         |   |                  |      |   |                   |   |       |                 |   |   |   |   |
| Purchase of SWEG license for shares              |   |                  | 1,756,805 |   |                   |   | (1,855,505 | )                    |   |   | (98,700 | ) |
| Net loss for the period                          |   |                  | (210,769  | )      |                   |   | 129,638    |                 |   |   | (81,131 | ) |
| Total Stockholders' equity (deficit)             |   |                  | 1,489,816 |   |                   |   | (1,725,867 | )                    |   |   | (236,051 | ) |

----

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|                        |   | 2009            |   |   | 2008                                |   |
|-----------------------------|--------|-----------------|--------|--------|-------------------------------------|--------|
|                        |   | Cost (restated) |   |   | Accumulated Amortization (restated) |   |   | Net Book Value (restated) |   |   | Net Book Value |   |
|                        |   |            |   |   |                                |   |   |   |   |   |   |   |
| Technology License (Note 1) |   | $               | 100    |   |                                | $      | - |   |   | $ | 100 |   |   | $ | - |   |

|                      |   | 2009 |   |   | 2008   |   |
|---------------------------|--------|------|--------|--------|--------|--------|
| Trade Payables            |   | $    | -      |   |   | $      | 829 |   |
| Accrued Professional Fees |   | $    | 14,568 |   |   | $      | 13,000 |   |
|                      |   | $    | 14,568 |   |   | $      | 13,829 |   |

----

| -   | Issued 100,000 shares for officer fees. This was valued at $32,000 and is included in General and administrative expenses. |
|---------------|----------------------------------------------------------------------------------------------------------------------------|

| -   | Issued 98,800,000 shares valued at $.001 par value per share for the purchase of the North American territorial license to the SWEG technology (See Note 1(b)). |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Issued 1,000 shares (100,000 shares prior to the reverse stock split effective February 10, 2009) valued at $500 in exchange for legal services provided to the Company. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | 2009       |     |   | 2008   |   |
|----------------------------------------------------|--------|------------|----------|--------|--------|--------|
|                                               |   | (restated) |     |   |   |   |
| Operating Losses Available to offset future taxes  |   | $          | 243,587  |   |   | $      | 190,070 |   |
| Tax basis of license in excess of accounting basis |   |       | 602,831  |   |   |   | - |   |
| Valuation Allowance                                |   |       | (846,418 | )      |   |   | (190,070 | ) |
| Net Deferred Assets                                |   | $          | -        |   |   | $      | - |   |

|                                        |   | 2009       |    |   | 2008   |   |
|---------------------------------------------|--------|------------|---------|--------|--------|--------|
|                                        |   | (restated) |    |   |   |   |
|  Amounts calculated at statutory rates |   | $          | (27,585 | )      |   | $      | (25,560 | ) |
|  Permanent differences                 |   |       | 10,880  |   |   |   |   |   |
|                                        |   |       | (16,705 | )      |   |   | (25,560 | ) |
| Change in valuation allowances              |   | $          | 16,705  |   |   | $      | 25,560 |   |
|                                        |   | $          | -       |   |   | $      | - |   |

----

| 2029  |   | $ | 131,602 |   |
|-------|--------|---|---------|--------|
| 2028  |   | $ | 78,645  |   |
| 2027  |   | $ | 30,760  |   |
| 2026  |   | $ | 32,912  |   |
| 2025  |   | $ | 208,887 |   |
| 2024  |   | $ | 233,627 |   |
| Total |   | $ | 716,433 |   |

----