----

| Nevada                                                         | 98-0373867                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |

|   |  Large accelerated filer | o                                                                             |  Accelerated filer         | o |
|--------|-------------------------------|-------------------------------------------------------------------------------|---------------------------------|---|
|   |  Non- accelerated filer  | o     (Do not check if a smaller reporting company)  |  Smaller reporting company | x |

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Table of Contents

B

| Part I – FINANCIAL INFORMATION | 3                                                                |
|--------------------------------------|------------------------------------------------------------------|
|                                 |                                                             |   |
| Item 1.                              | Financial Statements:                                            | 3 |
|                                 |                                                             |   |
|                                 | Balance Sheets                                                   | 4 |
|                                 |                                                             |   |
|                                 | Statements of Operations                                         | 5 |
|                                 |                                                             |   |
|                                 | Statements of Cash Flows                                         | 6 |
|                                 |                                                             |   |
|                                 | Notes to Financial Statements                                    | 7 |
|                                 |                                                             |   |
| Item 2.                              | Management’s Discussion and Analysis or Plan of Operations | 12 |
|                                 |                                                             |   |
| Item 3.                              | Quantitative and Qualitative Disclosure About Market Risk        | 16 |
|                                 |                                                             |   |
| Item 4T.                             | Controls and Procedures                                          | 17 |
|                                 |                                                             |   |
| Part II – OTHER INFORMATION    | 20                                                               |
|                                 |                                                             |   |
| Item 1.                              | Legal Proceedings                                                | 20 |
|                                 |                                                             |   |
| Item 1A.                             | Risk Factors                                                     | 20 |
|                                 |                                                             |   |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds      | 20 |
|                                 |                                                             |   |
| Item 3.                              | Defaults Upon Senior Securities                                  | 20 |
|                                 |                                                             |   |
| Item 4.                              | Submission of Matters to Vote a of Security Holders              | 20 |
|                                 |                                                             |   |
| Item 5.                              | Other Information                                                | 20 |
|                                 |                                                             |   |
| Item 6.                              | Exhibits                                                         | 21 |
|                                 |                                                             |   |
| SIGNATURES                           | 21                                                               |

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Table of Contents

FINA

cial

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Table of Contents

L

|                                                               |   | APRIL 30, |       |   | JULY 31, |   |
|--------------------------------------------------------------------|--------|-----------|------------|--------|----------|--------|
|                                                               |   | 2010      |       |   | 2009     |   |
| ASSETS                                                             |   |      |       |   |     |   |
|                                                               |   |      |       |   |     |   |
| Current                                                            |   |      |       |   |     |   |
| Cash                                                               |   | $         | 72,692     |   |     | $      | 1,193 |   |
| Deposit (Note 4)                                                   |   |      | 20,000     |   |     |   | - |   |
|                                                               |   |      |       |   |     |   |   |   |
|                                                               |   | $         | 92,692     |   |     | $      | 1,193 |   |
|                                                               |   |      |       |   |     |   |   |   |
| LIABILITIES                                                        |   |      |       |   |     |   |   |   |
|                                                               |   |      |       |   |     |   |   |   |
| Current                                                            |   |      |       |   |     |   |   |   |
| Accounts payable and accrued liabilities                           |   | $         | 27,620     |   |     | $      | 4,314 |   |
| Advances payable (Note 5)                                          |   |      | 172,690    |   |     |   | 182,356 |   |
| Due to related parties (Note 6)                                    |   |      | 143,975    |   |     |   | 689 |   |
| Notes payable (Note 7)                                             |   |      | 29,280     |   |     |   | 26,722 |   |
|                                                               |   |      | 373,565    |   |     |   | 214,081 |   |
|                                                               |   |      |       |   |     |   |   |   |
| STOCKHOLDERS’ DEFICIT                                        |   |      |       |   |     |   |   |   |
|                                                               |   |      |       |   |     |   |   |   |
| Capital stock (Note 8)                                             |   |      |       |   |     |   |   |   |
| Authorized:                                                        |   |      |       |   |     |   |   |   |
| 200,000,000 common shares with a par value of $0.001 per share     |   |      |       |   |     |   |   |   |
| Issued and outstanding:                                            |   |      |       |   |     |   |   |   |
| 31,060,650 common shares (July 31, 2009: 31,060,650 common shares) |   |      | 31,060     |   |     |   | 31,060 |   |
| Additional paid-in capital                                         |   |      | 952,142    |   |     |   | 952,142 |   |
| Deficit accumulated during the exploration stage                   |   |      | (1,256,578 | )      |     |   | (1,190,833 | ) |
| Accumulated other comprehensive loss                               |   |      | (7,497     | )      |     |   | (5,257 | ) |
|                                                               |   |      | (280,873   | )      |     |   | (212,888 | ) |
|                                                               |   |      |       |   |     |   |   |   |
|                                                               |   | $         | 92,692     |   |     | $      | 1,193 |   |

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Table of Contents

A

|                                                                           |   |               |       |   |              |   |       |      |   |   |                     |   |   | CUMULATIVE RESULTS OF OPERATIONS FROM APRIL 9, 1999 (INCEPTION) |                     |
|--------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|------------|-----------|--------|--------|--------------------------|--------|--------|-----------------------------------------------------------------|--------------------------|
|                                                                           |   | THREE MONTHS ENDED |       |   | NINE MONTHS ENDED |   |       | TO        |   |
|                                                                           |   | APRIL 30,          |       |   | APRIL 30,         |   |       | APRIL 30, |   |   | APRIL 30,                |   |   | APRIL 30,                                                       |                     |
|                                                                           |   | 2010               |       |   | 2009              |   |       | 2010      |   |   | 2009                     |   |   | 2010                                                            |                     |
| Expenses                                                                       |   |               |       |   |              |   |       |      |   |   |                     |   |   |                                                            |                     |
| Consulting fees                                                                |   | $                  | -          |   |              | $      | -          |      |   | $      | -                        |   |   | $                                                               | -                        |   |   | $ | 27,780 |   |
| Filing fees                                                                    |   |               | 2,776      |   |              |   | 1,297      |      |   |   | 5,485                    |   |   |                                                            | 4,425                    |   |   |   | 44,399 |   |
| Foreign exchange loss                                                          |   |               | 2,644      |   |              |   | 157        |      |   |   | 2,846                    |   |   |                                                            | 426                      |   |   |   | 16,670 |   |
| General and administrative                                                     |   |               | 6,872      |   |              |   | 298        |      |   |   | 7,251                    |   |   |                                                            | 618                      |   |   |   | 28,504 |   |
| Interest expense                                                               |   |               | 104        |   |              |   | 87         |      |   |   | 318                      |   |   |                                                            | 374                      |   |   |   | 16,180 |   |
| Investor relations                                                             |   |               | -          |   |              |   |       |      |   |   | -                        |   |   |                                                            | 65                       |   |   |   | 17,989 |   |
| Professional fees                                                              |   |               | 27,380     |   |              |   | 4,511      |      |   |   | 48,740                   |   |   |                                                            | 20,631                   |   |   |   | 188,626 |   |
| Stock-based compensation                                                       |   |               | -          |   |              |   | -          |      |   |   | -                        |   |   |                                                            | 39,700                   |   |   |   | 750,000 |   |
| Resource property expenditures                                                 |   |               | -          |   |              |   | -          |      |   |   | 1,105                    |   |   |                                                            | -                        |   |   |   | 150,114 |   |
| Property examination costs                                                     |   |               |       |   |              |   | 1,635      |      |   |   | -                        |   |   |                                                            | 1,635                    |   |   |   | 15,375 |   |
| Travel and entertainment                                                       |   |               | -          |   |              |   | -          |      |   |   | -                        |   |   |                                                            | -                        |   |   |   | 941 |   |
|                                                                           |   |               |       |   |              |   |       |      |   |   |                     |   |   |                                                            |                     |   |   |   |   |   |
| Net Loss                                                                       |   | $                  | (39,776    | )      |              | $      | (7,985     | )         |   | $      | (65,745                  | )      |   | $                                                               | (67,874                  | ) |   | $ | (1,256,578 | ) |
|                                                                           |   |               |       |   |              |   |       |      |   |   |                     |   |   |                                                            |                     |   |   |   |   |   |
| Basic and Diluted Net Loss Per Common Share                                    |   | $                  | -          |   |              | $      | -          |      |   | $      | -                        |   |   | $                                                               | -                        |   |   |   |   |   |
|                                                                           |   |               |       |   |              |   |       |      |   |   |                     |   |   |                                                            |                     |   |   |   |   |   |
| Weighted Average Number of Common Shares Outstanding – Basic and Diluted |   |               | 31,060,650 |   |              |   | 30,387,516 |      |   |   |     31,060,650 |   |   |                                                            |     29,336,046 |   |   |   |   |   |

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Table of Contents

L

|                                                                                              |   |              |    |   | CUMULATIVE RESULTS OF OPERATIONS FROM APRIL 9, 1999 (INCEPTION) |   |
|---------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-----------------------------------------------------------------|--------|
|                                                                                              |   | NINE MONTHS ENDED |    |   | TO                                                              |   |
|                                                                                              |   | APRIL 30,         |    |   | APRIL 30,                                                       |   |
|                                                                                              |   | 2010              |    |   | 2009                                                            |   |   | 2010 |   |
| Cash Flows from Operating Activities                                                              |   |              |    |   |                                                            |   |   |   |   |
| Net loss                                                                                          |   | $                 | (65,745 | )      |                                                            | $      | (67,874 | ) |   | $ | (1,256,578 | ) |
|                                                                                              |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities:                       |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Realized foreign exchange losses on settlement of notes payable                                   |   |              | -       |   |                                                            |   | - |   |   |   | 12,523 |   |
| Stock-based compensation                                                                          |   |              | -       |   |                                                            |   | 39,700 |   |   |   | 750,000 |   |
| Accrued interest                                                                                  |   |              | 318     |   |                                                            |   | 375 |   |   |   | 18,168 |   |
| Changes in operating assets and liabilities:                                                      |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Prepaid expenses                                                                                  |   |              | -       |   |                                                            |   | (131 | ) |   |   | - |   |
| Deposit                                                                                           |   |              | (20,000 | )      |                                                            |   | - |   |   |   | (20,000 | ) |
| Accounts payable and accrued liabilities                                                          |   |              | 23,306  |   |                                                            |   | (1,378 | ) |   |   | 27,620 |   |
| Net cash used in operating activities                                                             |   |              | (62,121 | )      |                                                            |   | (29,308 | ) |   |   | (468,267 | ) |
|                                                                                              |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                                              |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Proceeds from issuance of common stock                                                            |   |              | -       |   |                                                            |   | 40,396 |   |   |   | 130,629 |   |
| Proceeds from notes payable                                                                       |   |              | -       |   |                                                            |   | - |   |   |   | 93,665 |   |
| Advances payable                                                                                  |   |              | (9,666  | )      |                                                            |   | 8,542 |   |   |   | 172,690 |   |
| Advances and loans from related parties                                                           |   |              | 143,286 |   |                                                            |   | - |   |   |   | 143,975 |   |
| Net cash provided by financing activities                                                         |   |              | 133,620 |   |                                                            |   | 48,938 |   |   |   | 540,959 |   |
|                                                                                              |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Net Increase in Cash                                                                              |   |              | 71,499  |   |                                                            |   | 19,630 |   |   |   | 72,692 |   |
|                                                                                              |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Cash, Beginning                                                                                   |   |              | 1,193   |   |                                                            |   | (38 | ) |   |   | - |   |
|                                                                                              |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Cash, Ending                                                                                      |   | $                 | 72,692  |   |                                                            | $      | 19,592 |   |   | $ | 72,692 |   |
|                                                                                              |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Supplemental Disclosures of Cash Flow Information and Non-Cash Investing and Financing Activities |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Interest paid                                                                                     |   | $                 | -       |   |                                                            | $      | - |   |   | $ | - |   |
| Income taxes paid                                                                                 |   | $                 | -       |   |                                                            | $      | - |   |   | $ | - |   |
|                                                                                              |   |              |    |   |                                                            |   |   |   |   |   |   |   |
| Common shares issued on settlement of notes payable and accrued interest                          |   | $                 | -       |   |                                                            | $      | - |   |   | $ | 102,573 |   |

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Table of Contents

| 1. | NATURE OF CONTINUED OPERATIONS AND BASIS OF PRESENTATION |
|----|----------------------------------------------------------|

| 2. | RECENT ACCOUNTING PRONOUNCEMENTS |
|----|----------------------------------|

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Table of Contents

| 2. | RECENT ACCOUNTING PRONOUNCEMENTS (Continued) |
|----|----------------------------------------------|

| 3. | RESOURCE PROPERTIES |
|----|---------------------|

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Table of Contents

| 3. | RESOURCE PROPERTIES (Continued) |
|----|---------------------------------|

|                                                             |   |          |      |   | Common      |   |
|------------------------------------------------------------------|--------|---------------|-----------|--------|-------------|--------|
|                                                             |   | Cash          |      |   | Stock to be |   |
|                                                             |   | Consideration |      |   | Issued      |   |
| Phase I – Conditional upon receipt of Mining and           |   |          |      |   |        |   |
| Prospecting Licenses                                             |   |          |      |   |        |   |
| Within 30 days of receiving the Mining and Prospecting Licenses  |   | $             | 60,000    |   |        |   | - |   |
| Within 60 days of receiving the Mining and Prospecting Licenses  |   |          | 80,000    |   |        |   | - |   |
| Within 90 days of receiving the Mining and Prospecting Licenses  |   |          | 80,000    |   |        |   | - |   |
| Within 120 days of receiving the Mining and Prospecting Licenses |   |          | 80,000    |   |        |   | - |   |
| Within 150 days of receiving the Mining and Prospecting Licenses |   |          | 80,000    |   |        |   | - |   |
|                                                             |   |          | 380,000   |   |        |   | - |   |
| Phase II – Within 90 days of completion of Phase I         |   |          |      |   |        |   |   |   |
| including geological work to be done by Canafra                  |   |          | 380,000   |   |        |   | 2,000,000 |   |
|                                                             |   |          |      |   |        |   |   |   |
| Phase III – Within 90 days of completion of Phase II or    |   |          |      |   |        |   |   |   |
| within a mutually agreed timeframe, including                    |   |          |      |   |        |   |   |   |
| further geological work done by Canafra                          |   |          | 340,000   |   |        |   | 2,000,000 |   |
|                                                             |   |          |      |   |        |   |   |   |
|                                                             |   | $             | 1,100,000 |   |        |   | 4,000,000 |   |

| 4. | PROPOSED AQUISITION AND SALE AGREEMENTS |
|----|-----------------------------------------|

|   | a) | Acquisition of Elk Hills Heavy Oil, LLC and Four Bear Heavy Oil, LLC |
|--------|----|----------------------------------------------------------------------|

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Table of Contents

| 4. | PROPOSED AQUISITION AND SALE AGREEMENTS (Continued) |
|----|-----------------------------------------------------|

|   | b) | Sale of 50% interest in EHHO to Elk Hills Petroleum Canada Ltd. |
|--------|----|-----------------------------------------------------------------|

|   | (i) | A payment of $1,250,000 is due on or before June 30, 2010. |
|--------|-----|------------------------------------------------------------|

|   | (ii) | A payment of $1,750,000 is due within thirty days after EHPC has received a copy of a third party prepared report on drill cores obtained from the EHHO leases and the reservoir study conducted on the EHHO leases. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | ADVANCES PAYABLE |
|----|------------------|

| 6. | DUE TO RELATED PARTIES |
|----|------------------------|

|                                                                                                                                              |   | APRIL 30, |    |   | JULY 31,  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|-----------|--------|
|                                                                                                                                              |   | 2010      |    |   | 2009      |   |
|                                                                                                                                              |   |      |    |   | (Note 10) |   |
| i)  Loan Payable                                                                                                                             |   |      |    |   |      |   |
|                                                                                                                                              |   |      |    |   |      |   |
| Loan from a company related by virtue of a common director.  The amount is unsecured, bears no interest and falls due on June 30, 2010. |   | $         | 100,000 |   |      | $      | - |   |
|                                                                                                                                              |   |      |    |   |      |   |   |   |
| ii)  Due to Directors                                                                                                                        |   |      |    |   |      |   |   |   |
|                                                                                                                                              |   |      |    |   |      |   |   |   |
| Advances received from two directors.  The advances are unsecured, non-interest bearing and have no specific terms of repayment         |   |      |    |   |      |   |   |   |
| Amounts payable for reimbursement of corporate expenses                                                                                           |   |      | 43,975  |   |      |   | 689 |   |
|                                                                                                                                              |   | $         | 143,975 |   |      | $      | 689 |   |

| 7. | NOTES PAYABLE |
|----|---------------|

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Table of Contents

| 7. | NOTES PAYABLE (Continued) |
|----|---------------------------|

| 8. | CAPITAL STOCK |
|----|---------------|

| 9. | SUBSEQUENT EVENT |
|----|------------------|

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nag

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Table of Contents

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Table of Contents

|                                                                                                                                              |   | APRIL 30, |         |   | JULY 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------------|--------|----------|--------|
|                                                                                                                                              |   | 2010      |         |   | 2009     |   |
|                                                                                                                                              |   |      |         |   |     |   |
| i)  Loan Payable                                                                                                                             |   |      |         |   |     |   |
|                                                                                                                                              |   |      |         |   |     |   |
| Loan from a company related by virtue of a common director.  The amount is unsecured, bears no interest and falls due on June 30, 2010. |   | $         | 100,000      |   |     | $      | - |   |
|                                                                                                                                              |   |      |         |   |     |   |   |   |
| ii)  Due to Directors                                                                                                                        |   |      |         |   |     |   |   |   |
|                                                                                                                                              |   |      |         |   |     |   |   |   |
| Advances received from two directors.  The advances are unsecured, non-interest bearing and have no specific terms of repayment         |   |      |    |   |     |   |   |   |
| Amounts payable for reimbursement of corporate expenses                                                                                           |   |      | 43,975       |   |     |   | 689 |   |
|                                                                                                                                              |   | $         | 143,975      |   |     | $      | 689 |   |

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Table of Contents

|                                                          |   |          |      |   | Common      |   |
|---------------------------------------------------------------|--------|---------------|-----------|--------|-------------|--------|
|                                                          |   | Cash          |      |   | Stock to be |   |
|                                                          |   | Consideration |      |   | Issued      |   |
| Phase I – Conditional upon receipt of Mining and        |   |          |      |   |        |   |
| Prospecting Licenses                                          |   |          |      |   |        |   |
| Within 30 days of execution of agreement                      |   | $             | 60,000    |   |        |   | - |   |
| Within 60 days of execution of agreement                      |   |          | 80,000    |   |        |   | - |   |
| Within 90 days of execution of agreement                      |   |          | 80,000    |   |        |   | - |   |
| Within 120 days of execution of agreement                     |   |          | 80,000    |   |        |   | - |   |
| Within 150 days of execution of agreement                     |   |          | 80,000    |   |        |   | - |   |
|                                                          |   |          | 380,000   |   |        |   | - |   |
| Phase II – Within 90 days of completion of Phase I      |   |          |      |   |        |   |   |   |
| including geological work to be done by Canafra               |   |          | 380,000   |   |        |   | 2,000,000 |   |
|                                                          |   |          |      |   |        |   |   |   |
| Phase III – Within 90 days of completion of Phase II or |   |          |      |   |        |   |   |   |
| within a mutually agreed timeframe, including                 |   |          |      |   |        |   |   |   |
| further geological work done by Canafra                       |   |          | 340,000   |   |        |   | 2,000,000 |   |
|                                                          |   |          |      |   |        |   |   |   |
|                                                          |   | $             | 1,100,000 |   |        |   | 4,000,000 |   |

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Table of Contents

|   | a) | Acquisition of Elk Hills Heavy Oil, LLC and Four Bear Heavy Oil, LLC |
|--------|----|----------------------------------------------------------------------|

|   | b) | Sale of 50% interest in EHHO to Elk Hills Petroleum Canada Ltd. |
|--------|----|-----------------------------------------------------------------|

| (i)     | A payment of $1,250,000 is due on or before June 30, 2010. |
|------------------------|------------------------------------------------------------|

| (ii)     | A payment of $1,750,000 is due within thirty days after EHPC has received a copy of a third party prepared report on drill cores obtained from the EHHO leases and the reservoir study conducted on the EHHO leases. |
|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ativ

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Controls and 

| ● | Retain outside counsel, accountants or others to advise the committee or assist in the conduct of an investigation |
|---------|--------------------------------------------------------------------------------------------------------------------|

| ● | Seek any information it requires from employees –all of whom are directed to cooperate with the committee’s requests –or external parties |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Meet with company officers, external auditors or outside counsel, as necessary |
|---------|--------------------------------------------------------------------------------|

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| ● | Review significant accounting and reporting issues, including complex or unusual transactions and highly judgmental areas, and recent professional and regulatory pronouncements, and understand their impact on the financial statements |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Review with management and the external auditors the results of the audit, including any difficulties encountered |
|---------|-------------------------------------------------------------------------------------------------------------------|

| ● | Review the annual financial statements, and consider whether they are complete, consistent with information known to committee members, and reflect appropriate accounting principles |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Review other sections of the annual report and related regulatory filings before release and consider the accuracy and completeness of the information |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Review with management and the external auditors all matters required to be communicated to the committee under generally accepted auditing standards |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Understand how management develops interim financial information, and the nature and extent of internal and external auditor involvement |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Review interim financial reports with management and the external auditors, before filing with regulators, and consider whether they are complete and consistent with the information known to committee members |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Consider the effectiveness of the company’s internal control over annual and interim financial reporting, including information technology security and control |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Understand the scope of internal and external auditors’ review of internal control over financial reporting, and obtain reports on significant findings and recommendations, together with management’s responses |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Determine annually whether the company should establish an internal audit function. |
|---------|-------------------------------------------------------------------------------------|

| ● | Currently the company does not have an internal audit function. |
|---------|-----------------------------------------------------------------|

| ● | Review the external auditors’ proposed audit scope and approach, including coordination of audit effort with internal audit |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|

| ● | Review the performance of the external auditors, and exercise final approval on the appointment or discharge of the auditors |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| ● | Review and confirm the independence of the external auditors by obtaining statements from the auditors on relationships between the auditors and the company, including non-audit services, and discussing the relationship with the auditors |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | On a regular basis, meet separately with the external auditors to discuss any matters that the committee or auditors believe should be discussed privately |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ● | Review the effectiveness of the system for monitoring compliance with laws and   regulations and the results of management’s investigation and follow-up (including disciplinary action) of any instances of noncompliance |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Review the findings of any examinations by regulatory agencies, and any auditor observations |
|---------|----------------------------------------------------------------------------------------------|

| ● | Review the process for communicating the code of conduct to company personnel, and for monitoring compliance therewith |
|---------|------------------------------------------------------------------------------------------------------------------------|

| ● | Obtain regular updates from management and company legal counsel regarding compliance matters |
|---------|-----------------------------------------------------------------------------------------------|

| ● | Regularly report to the board of directors about committee activities, issues and related recommendations |
|---------|-----------------------------------------------------------------------------------------------------------|

| ● | Provide an open avenue of communication between internal audit, if any, the external auditors and the board of directors |
|---------|--------------------------------------------------------------------------------------------------------------------------|

| ● | Review any other reports the company issues that relate to committee responsibilities |
|---------|---------------------------------------------------------------------------------------|

| ● | Perform other activities related to this charge as requested by the board of directors |
|---------|----------------------------------------------------------------------------------------|

| ● | Institute and oversee special investigations as needed |
|---------|--------------------------------------------------------|

| ● | Confirm annually that all responsibilities outlined in this charter have been carried out |
|---------|-------------------------------------------------------------------------------------------|

| ● | Evaluate the committee’s and individual members’ performance on a regular basis |
|---------|---------------------------------------------------------------------------------------------|

| ● | This Audit Committee Charter is effective as of June 1, 2010. |
|---------|---------------------------------------------------------------|

| ● | Review and assess the adequacy of the committee charter annually, requesting board approval for proposed changes |
|---------|------------------------------------------------------------------------------------------------------------------|

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|   | 31.1 | Certification of Ray Jefferd, Chief Executive Officer of Stellar Resources Ltd. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Luigi Rispoli, Chief Financial Officer of Stellar Resources Ltd. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Ray Jefferd, Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Luigi Rispoli, Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

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|   | By:                                   | /s/ Ray Jefferd |   |
|--------|---------------------------------------|----------------------|--------|
|   | Ray Jefferd                           |                 |
|   | President and Chief Executive Officer |                 |
|   |                                  |                 |   |
|   |                                  |                 |   |
|   | By:                                   | /s/ Luigi Rispoli    |   |
|   | Luigi Rispoli                         |                 |
|   | Director and Chief Financial Officer  |                 |

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