UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549
                                   FORM 10-KSB
                                   (Mark One)

       (X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                       EXCHANGE ACT OF 1934(FEE REQUIRED)

                   For the fiscal year ended December 31, 2002
                                       OR
       ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                     EXCHANGE ACT OF 1934(NO FEE REQUIRED)

                    For the transition period from N/A to N/A

                         Commission file number 0-15078


                       NOVA NATURAL RESOURCES CORPORATION
        (Exact name of small business issuer as specified in its charter)


                Colorado                                84-1227328
       (State or other jurisdiction                  (I.R.S. Employer
              of incorporation)                     Identification No.)


                                 2951 Simms St.
                               Hollywood, Fl 33020
                    (Address of principal executive offices)


                                  (720)524-1363
                           (Issuer's telephone number)

              Securities registered under Section 12(b) of the Act:

                                     -NONE-

              Securities registered under Section 12(g) of the Act:

                          Common Stock, $.10 Par Value
                          ----------------------------
                                (Title of Class)

<PAGE>


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No

Check if disclosure of delinquent filers in response to Item 405 of Regulation
S-B is not contained in this form, and no disclosure will be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB. [X]

Issuer's revenues for its most recent fiscal year totaled: $416,286
Documents Incorporated by Reference:  None
Transitional Small Business Disclosure Format   Yes___ No  X
As of December 31 2002, the Registrant had outstanding no shares of
Convertible Preferred Stock, $1.00 par value, and 279,551,551 shares of Common
Stock, $.10 par value, its only classes of voting stock.

PART I

Forward-looking Information

     This Form 10-KSB contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. For this
purpose any statements contained in this Form 10-KSB that are not statements of
historical fact may be deemed to be forward-looking statements. Without limiting
the foregoing, words such as "may", "will", "expect", "believe", "anticipate",
"estimate", or "continue" or comparable terminology are intended to identify
forward-looking statements. These statements by their nature involve substantial
risks and uncertainties and actual results may differ materially depending on a
variety of factors, many of which are not within the Company's control. See also
"Management's Discussion and Analysis of Plan of Operation."


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ITEM 1.  DESCRIPTION OF BUSINESS

GENERAL DEVELOPMENT OF BUSINESS

Nova Natural Resources Corporation (the "Registrant", "Company" or "Nova") was
incorporated under Colorado Law on April 1, 1993 and is the surviving company in
a merger, effective February 1, 1995, of the Company and Nova Natural Resources
Corporation, a Delaware corporation. The merger was effected to change the
Company's domicile from Delaware to Colorado and caused no change in the
Company's capitalization. The Delaware Corporation was the successor to Nova
Petroleum Corporation and Power Resources Corporation, which merged in 1986.
Prior to that merger, Nova Petroleum Corporation and Power Resources Corporation
operated since 1979 and 1972, respectively.

SIGNIFICANT CHANGE IN THE COMPANY'S BUSINESS

On February 27, 2001, the Company closed a transaction pursuant to the terms of
an Asset Purchase Agreement dated February 9, 2001 (the "Agreement") with TORITA
DONGHAO LLC ("Torita Delaware"), a Delaware Corporation, by which Torita
Delaware acquired control of the Company.

Torita Delaware manufactures, markets, and sells electronic equipment, including
computer hardware, computer monitors, television sets, internet access devices
for use with TV sets, digital video devices (DVD's) and related equipment.
Torita Delaware's products are marketed in Southeast Asia. Its production
facilities occupy 128,000 square feet in Zhuhai City in the People's Republic of
China ("PRC") and include six manufacturing lines with an annual production
capacity of approximately 1 million PC's, 1 million DVD devices and 200,000 TV
sets. Torita Delaware owns 50% of the former cosmetics arm of Torita Group,
though this business line has not played a significant role in the Company's
operations. The Company wrote off its equity investment of $15,107 in the
cosmetics company in the fourth quarter of the fiscal year, since it is
uncertain whether this investment will be recoverable.

Torita Delaware was formed by the spin-off of the electronics and the cosmetics
divisions of the Torita Group of the PRC. Torita Group ("Torita"), a large,
diversified company with over ten years of operating history in China, was
composed of several divisions with diverse business interests. During calendar
year 2001, Torita went into receivership due to its large portfolio of
non-performing real estate assets. These assets are in the process of
disposition, a process expected to take several years to accomplish. Although
Torita Delaware and Torita are completely separate companies, this event caused
an indirect effect on the Company's ability to do business.

Historically, the Company's electronics manufacturing operations utilized
Torita's credit facilities as its major source of working capital. When the
Company became independent of Torita, it no longer had access to that capital,
but the relationship was retained with Torita's lenders, including the
maintenance of a $7 million line of credit with a local bank. . When Torita
subsequently went into receivership, even though the Company was no longer
affiliated with Torita, this line of credit was withdrawn. In addition, Torita's
bankruptcy filing caused many of the Company's existing suppliers to cut off
their credit terms with the Company, due to the past close association of the
two companies. These events made it much more difficult for the Company to
obtain credit in China.


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BUSINESS DEVELOPMENT

Operations

Toward the close of 1999, in view of the Company's inability to attract industry
partners to fund and operate the Company's principal assets, the general
economic conditions at that time of the industries in which the Company
operated, and management's determination that the Company could not operate
profitably because of a lack of capital from operations and other sources,
management concluded that the Company would be more valuable, and the interests
of its shareholders would be better served by the sale, reassignment, and
abandonment of the Company's assets and marketing of the Company as a "shell".
In this fashion, management believed that it could obtain for the Company's
shareholders a minority interest in a company with more substantial assets,
operations and prospects. In exchange, such a merger partner would become a
public company, obtain liquidity for its shares, and gain more ready access to
capital markets. The transaction with Torita Delaware was the result of this
strategy decision.

CHANGE IN CONTROL

     Effective at Closing of the Torita Delaware transaction, all of Nova's
officers and directors, except Brian B. Spillane, resigned, as contemplated by
the Agreement. Edward T. S. Chan, CEO of Torita Delaware, thereupon was named
President, Treasurer and a Director of the Company. Mr. Spillane resigned as
President, but remains a Director of the Company, and was appointed its
Secretary. Mr. Spillane continued his affiliation with the Company and continued
to maintain the Company's corporate office in Denver, Colorado at the request of
Torita Delaware. This request was not a requirement for approval of the
transaction by the Company's former Board of Directors. In September 2001, Han
Zhende and Chris Tse, both based in China, were appointed Directors of the
Company. Mr. Han is the Company's Chief Operating Officer, and is in charge of
the Company's electronics manufacturing operations in Zhuhai City, the People's
Republic of China. Mr. Tse resigned as Vice President and a Director of the
Company in November.

     Upon effectuation of the Agreement, Torita Electronic (Hong Kong) Ltd. held
138,612,287 shares of the Registrant's $0.10 par value common stock, 59.5% of
the total common shares issued and outstanding, and therefore became the new
controlling shareholder of the Company. Affiliates of Torita Delaware controlled
an additional 32% of the then-issued and outstanding shares. The consideration
used to obtain such control was the acquisition by the Company of 100% of the
business and operating assets of Torita Delaware.

                                                                               4
<PAGE>

     Warrants representing 1.5% of the total issued and outstanding common stock
of the Company after the transaction were issued to former Nova management as
part of the transaction. The warrants have dilution protection and are subject
to an agreement which, under certain circumstances, would result in registration
of the shares underlying the warrants.

     The Company acquired 100% of the business and operating assets of Torita
Delaware in exchange for 213,249,672 of its $0.10 par value common shares.

     All of Nova's outstanding convertible preferred stock was converted into
common stock at the Closing. The previous Nova shareholders hold 16,838,567
shares, the majority of which were subject to a Stock Transfer Restriction
Agreement with a 12-month term limiting the number of shares which could be sold
in any one month. This Agreement has expired. No shares subject to the Agreement
were sold during the year it was in effect. The Company now has a total of
270,832,724 common shares outstanding.

     Torita Delaware manufactures, markets, and sells electronic equipment,
including computer hardware, computer monitors, television sets, internet access
devices for use with TV sets, digital video devices (DVD's) and related
equipment. Torita Delaware's products are marketed in China, Southeast Asia and
the Middle East. Currently the operation has idled the electronic assets pending
additional working capital and is reviewing other opportunities for the company.

Significant Developments during Fiscal 2002

      Cash constraints and a lack of outside funding resulted in significant
deterioration of the electronic business; sales dropped from FY 2001 of
4,817,604 to 416,286 for 2002. The company had to idle the manufacturing
operations at the end of 2002 as a result of this working capital shortfall.

Common Stock

As of December 31, 2001 11,653,000 option shares were outstanding under the
Company's employee stock option plan. On June 10, 2002 Mr. Chan exercised
4,661,200 shares at .005 per share for a total of $23,306. Mr. Spillane
exercised 2,330,600 shares at .005 per share for a total or $11,653. As a result
o this issuance the remaining option shares outstanding under the Company's
employee stock option plan at December 31, 2002 is 4,661,200.

On May 31, 2002 the company issued the remaining balance of 1,727,027 from an
S-8 filing that was effective September 14, 2001. The filing was for 2,500,000
shares of which 636,364 shares were issued to Mr. Chan in lieu of salary and
136,609 shares were issued for legal services in October 2001. The balance of
1,727,027 was issued on May 31, 2002 as follows: Mr. Chan, 227,000 for a value
of $908, Mr Spillane, 1,200,000 for a value of $4,800, and Mr. Stubbs 300,027
for a value of $1,200.

                                                                               5
<PAGE>

    Currently there are 279,551,551 common shares outstanding. There are no
shares of the Company's convertible preferred stock outstanding. Holders of
Common Stock are entitled to cast one vote for each share held of record on all
matters submitted to a vote of shareholders and are not entitled to cumulate
votes for the election of directors. Holders of Common Stock do not have
preemptive rights to subscribe for additional shares of Common Stock issued by
the Company.


     Holders of Common Stock are entitled to receive dividends as may be
declared by the Company's Board of Directors out of funds legally available for
that purpose, subject to the rights of the holders of the Company's Preferred
Stock. But currently No Preferred Stock has been issued. Holders of the Common
Stock and Preferred Stock have equal rights to all dividends declared and paid
by the Company. In the event of liquidation, holders of Common Stock are
entitled to share, pro rata, in any distribution of the Company's assets
remaining after payment of liabilities, subject to the preferences and rights of
the holders of Preferred Stock. The Company has not paid and has no current plan
to pay dividends.


Electronics Manufacturing Operations

     As previously discussed, the Company's ability to obtain credit to support
its manufacturing operations was substantially impaired during the 2001 and
continued in 2002 fiscal year. This resulted in the loss of a substantial amount
of potential manufacturing production, primarily orders for export. The Company
actually had the orders, but was unable to procure financing for the raw
materials needed to fulfill those orders. In fiscal 2001, export sales made up
most of the Company's $4.8 million in sales revenues. Sales significantly
declined to $416,286 in fiscal 2002 as a result of the working capital
shortfall.


Environmental Regulations

     Inherent in all manufacturing operations is the obligation to comply with
environmental, reclamation, and other applicable laws and regulations. The
Company has obtained those environmental permits, licenses or approvals required
for its operations. Management is not aware of any violations of environmental
permits, licenses or approvals issued with respect to the Company's previous or
its current operations. In the past, Nova has been involved in extensive
hearings regarding the environmental impact of its Minnesota kaolin mine and
voluntarily took steps to mitigate any environmental impact. While the Company
believes it is currently in compliance with all such laws and regulations and is
not aware of any current violations, the applicability and impact of, and the
Company's obligations under such provisions cannot always be determined with
certainty. However, the Company's liability could continue after relinquishment
of its interest in its properties, even in the absence of operations. As such,
although the Company does not believe it has any liability in this regard, the
Company cannot fully determine the extent of its liability or potential
liability in connection with these matters.

                                                                               6
<PAGE>

     The Company is not currently subject to any pending administrative or
judicial enforcement proceedings arising under environmental laws or
regulations. Environmental laws and regulations may be adopted in the future
which may have an impact upon the Company's operations.

Employees

     At December 31, 2002, Nova had only two employees in North America -- its
President, CEO and Treasurer, resident in Toronto, Canada, and it's Secretary,
who maintains the Corporate Office in Denver, Colorado. The bulk of the
Company's employees are located in the People's Republic of China, where the
Company's manufacturing and marketing operations are located. The Company's
employment in the PRC varies throughout the year with the amount of business it
obtains, and the timing of the delivery of manufactured products. Maximum
employment during the past two years has been approximately 400 workers, but
this year employment declined to less than half that number at certain times of
the year. The Company presently has a considerable overcapacity and has idled it
manufacturing capacity.


ITEM 2.  DESCRIPTION OF PROPERTIES

CAPITAL ASSETS

     The Company's capital assets are all located in the PRC, and consist of
factory machinery, electronic manufacturing and testing equipment, installation
and assembly equipment, packing equipment and microcomputers, factory computer
and audio equipment, a central computer system, and various small office
machines and office equipment. The book value of these assets at December 31,
2002 was $2,366,126 and although the operation was idled, the company elected to
retain this value since it reflected a reasonable fair asset value.



OFFICE LEASE AND EQUIPMENT

     The Company leases its manufacturing and office space in Zhuhai City, PRC
on a month-to-month basis. Due to the large amount of vacant space readily
available in Zhuhai City at reasonable cost, the Company prefers, at this time,
not to sign a long-term lease on its manufacturing and office space. The Company
does not believe that this situation will change over the next several years,
and prefers the flexibility this arrangement provides.


INVENTORIES

     The Company had inventories consisting of raw materials, work in progress
and finished goods at December 31, 2002 amounting to approximately $74,000. A
physical inventory was undertaken but not observed by the Company's auditor at
year-end. The Company does not expect any substantial restatement of its
year-end inventory. Management believes that this inventory is stated at cost
even though the operations have been idled.


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<PAGE>

ITEM 3.  LEGAL PROCEEDINGS

     The Company knows of no legal proceedings contemplated or threatened
against it.


PART II

ITEM 5.   MARKET FOR COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS

The Company's Common Stock is quoted on the OTC Bulletin Board under the symbol
"NVNU" at 12/31/2002 and is currently a pink sheet listing "NVNJ". The number of
record holders of the Company's Common Stock as of December 31, 2002 was
approximately 5000.

     As of December 31, 2001 4,661,200 option shares were outstanding under the
Company's employee stock option plan.

     The Company has not paid any dividends on its Common Stock and does not
expect to do so in the foreseeable future. The Company intends to employ its
cash flow and earnings, if any, for working capital needs.

ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION

Forward-Looking Statements

     Management's discussion of anticipated future operations contains
predictions and projections which may constitute forward looking statements. The
Private Securities Litigation Reform Act of 1995, including provisions contained
in Section 21E of the Securities Exchange Act of 1934, provides a safe harbor
for forward-looking statements. In order to comply with the terms of the safe
harbor, the Company notes that a variety of factors could cause the Company's
actual results and experience to differ materially from the anticipated results
or other expectations expressed in the Company's forward-looking statements. The
risks and uncertainties that may affect the operations, performance, development
and results of the Company's business include, but are not limited to, the
following:


                                                                               8
<PAGE>

  (a) Present and anticipated sources of funds may be insufficient to meet the
Company's working capital needs. In prior years, the Company's manufacturing
operations were able to utilize the credit of a much larger parent company to
finance its working capital needs. Since these operations are no longer
associated with that parent company, the credit facilities of the parent are no
longer available, and it has been much more difficult and not always possible
for the Company's manufacturing operations to secure adequate financing to
support the level of sales the Company is capable of attaining. And the
operations have been idled at year end as a result.

   (b) The Company may not be able to attain the level of sales of its products
it has been able to achieve in the past. Sales of electronic products which are
manufactured by the Company -- Television sets, DVD equipment, Computers and
Computer Monitors -- all are subject to fluctuations in both demand and in price
dependent on the strength of the economies into which these products are sold.
Forecasting the strength of these markets and the Company's ability to maintain
or increase market share is difficult at best. Electronic technology changes
rapidly, and the manufacture and sale of these products is very competitive. The
Company competes with many companies, most of which are considerably larger. The
Company also manufactures products on an OEM basis for several large electronics
manufacturers, and the level of such sales is dependent on the ability of those
companies to market their brand-name products, an ability over which the Company
has no control. The company may not be able to restart its operations and even
if operating capital is obtained the company may not be able to regain its
customers.



Liquidity and Capital Resources

     The Company has continued to experience a cash flow shortage, which became
particularly acute during fiscal 2002 due to the bankruptcy filing of its former
parent company -- Torita Group -- which made it difficult for the Company to
obtain credit to support its manufacturing operations and to seek new sources of
funding. A loss of $ 72,992 resulted from operation during 2002.

     Due to the inability of operating cash flows to cover expenses, the Company
had only $54,641 in cash at year end. As the result of these events, at December
31, 2002, the Company had an Accumulated Deficit of $5,545,479 compared to an
Accumulated deficit at December 31, 2001 of $ 3,140,957

     The Company's working capital was negative ($ 338,690) as of December 31,
2002, compared to working capital of $ 1,075,560 as of December 31, 2001. The
reduction in working capital was primarily attributable to a reduction in
accounts receivable of $929,487 or 76%, and a reduction in inventories of
$321,356, or 81%. These reductions were accompanied by an increase in Accounts
Payable and Accruals of $166,373 or 31%. The increase is largely attributable to
the Company's reduced sales and tight cash position, which forced the Company to
stretch out its payment schedule.


                                                                               9
<PAGE>


     Total assets decreased to $2,786,233 as of December 31, 2002, from
$5,024,382 as of December 31, 2001. The decrease in total assets was
attributable primarily to a decrease of accounts receivable.

   The increase in liabilities from $537,783 in 2001 to $704,156 in 2002 was due
to the increase in the Company's Accounts Payable and Accrued expenses as a
result of factors already discussed.

    The Company has insufficient liquidity and has temporarily shut down the
operations in China.


Results of Operations

12 Months Ended 12/31/02

     The Company realized a net loss of $2,404,522 for the year ended December
31, 2002, compared to a net loss in the 2001 fiscal period of $6,119,313.

Revenues

     The Company's manufacturing revenues declined $4,401,318 or 91% to $416,286
in fiscal 2002 compared to $4,817,604 in fiscal 2001 primarily of inadequate
working capital.


     Cost of sales for the year ended December 31, 2001 decreased $3,509,684 or
91% to $338,856 from $3,848,540 in fiscal 2001, resulting in a gross margin of
$77,430 in the 2001 period, a decrease of $896,634 or 92 % compared to a gross
margin of $969,064 in the 2001 fiscal period. However, gross margin as a percent
of manufacturing revenue decreased to 18.6% from 20% in the comparable period.
The decrease in margin was a result from a change in the sales mix from export
to local sales.


Expenses

     Administrative expenses increased $1,363,562 or 160% to $2,214,701 for the
year ended December 31, 2002 compared to the same period in 2001. This increase
was the product of several factors. As sales fell, wages and salaries did not
decrease commensurably. The Company elected to keep its key managers, who could
not easily be replaced with people of equivalent experience and skill.

     Financial and selling expenses decreased $ 247,288 or .005% to $2,076 in
fiscal 2002, compared to $ 249,364 in the previous fiscal year. When sales
decreased, wages and salaries were reduced, traveling expenses were trimmed, and
delivery charges, customs charges and bonuses declined, reflecting the lower
level of sales in general and export sales in particular.


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<PAGE>

Material Events during the 2002 annual reporting period:

On July 31, 2002, pursuant to an Agreement entered into on June 27, 2002, Torita
Electronic Hong Kong Ltd. Reported the closing of a sale in a controlling block
of $0.10 par value common shares (138,612,287 shares or 49.58%) of Nova Natural
Resources Corporation to I-Legend Holdings Ltd ("I-Legend BVI") in exchange for
a combined 5% stake in I-Legend.com Ltd. and SoftTel Technologies Incorporated,
two associated companies owned by Mr. Paul Tong of Toronto, Ontario, Canada, the
principal of I-Legend BVI.



I-Legend.com Ltd. is the exclusive North America distributor for Legend
Computers Ltd., of the People's Republic of China. Legend Computers Ltd. is the
top computer manufacturer and marketer in China, representing more than 30% of
overall computer sales in the Chinese market. I-Legend.com Ltd. is also one of
six exclusive distributors of Microsoft Corporation's products in Canada.

Softtel Technologies Inc. is a designer, manufacturer and service provider of
computing solutions for the application server market. It holds marketing and
distribution rights for certain patented and patent pending technologies,
several of which will be joint venturing with Nova.

The agreement provided for three new members to serve on Nova's board of
directors: Mr. Paul Tong, Mr. Paul Cranmer, and Mr. Michael Lyons. Mr. Tong is
the principal and founder of I-Legend.com Ltd., Softtel Technologies Inc., and
I-Legend Holdings Ltd. He has more than 15 years of information technology
("IT") R&D, marketing and distribution experience. Mr. Lyons served as director
of sales for a major telecommunications company for over 3 years and has more
than 10 years of sales experience in IT and telecommunications. Mr. Cranmer has
more than 5 years of marketing experience in telecommunications and IT
solutions. All three are executives of I-Legend.com Ltd. and Softtel
Technologies Inc. Mr. Tong was to become the chairman of Nova's board and the
company's chief executive officer.

The Agreement provided that I-Legend Holdings Ltd. would inject sufficient
cash flow into the company to advance corporate objectives.

The agreement FURTHER provides that under new management, a general
shareholders meeting will be held to obtain shareholders approval to increase
share capital, reverse split the shares, change the name of the company from
Nova Natural Resources Corporation to I-Legend Corporation, and elect Directors.

This agreement was never consummated, the Torita shares were never transferred,
the board of directors of Nova never acted nor was a general shareholder meeting
ever held. The company books of record do not reflect any action on the part of
the company to act on any of these provisions other that the 8K issued by its
past president, Edward Chan.

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<PAGE>

The operations of the company in China were idled at year end as a result of
lack of adequate working capital and a significant slow down in the overall
business.


Material subsequent events that have occurred after the close of the 2002 audit.
--------------------------------------------------------------------------------


On March 16, 2003, pursuant to unanimous approval of the board of directors of
Nova, the Company authorized its president to secure a convertible note from
Henan Zhenyuen (Group) Co., LTD, and to appoint three new Directors. The company
appointed Ms. Li Wang, Mr. Yanbo Yin both Chinese Nationals and reappointed Mr.
Chris Tse. Mr. Tse was also appointed the President and CEO of the company upon
the resignation of its former President Mr. Edward Chan. Mr. Chan also resigned
as a Director of the company. Additionally, Mr. Han Zhende of the Torita group
resigned as a Director. The note from Zhenyuen (Group) was never secured. The
company secured funding from a company called Good Creative Limited a BVI. This
information was communicated in an 8K filing and press release by the current
management.


On June 30, 2003 pursuant to majority shareholder consent and affirmed by
199,873,886 votes constituting 71.5% of the 279,551,551 shares issued and
outstanding as of June 28th 2003, the majority shareholders voted and approved
the appointment of Mr. Chris Tse as the Company President and Chief Executive
officer and the appointment to the Board of Directors. Mr. Edward Chan was
terminated as the President and Chief Executive Officer and removed from the
board of directors. This action was in response to the failure of Mr. Chan to
place into writing his verbal resignation as the President and from the Board of
Directors. This information was communicated in an 8K filing and press release
by the current management.


On 13 August 2003 the shareholders of Nova Natural Resources Corp., by majority
consent authorized the Board of Directors to institute a 1 for 3000 reverse
stock split with no fractional shares to be issued. Nova, a Colorado Corporation
required two thirds majority for such action. The majority consent was approved
by two hundred two million one hundred sixth four thousand (202,164,000) votes
and constituted an approval in excess of the two thirds required. The board
approved the reverse and set the effective date for August 22, 2003. Further,
the shareholders authorized the Board of Directors to increase the common stock
authorized and issued to 50,000,000 shares following the implementation of the
reverse. The majority shareholder consent also gave the Board the authorization
to negotiate the terms and conditions to sale the assets back to Torita.
This information was communicated in an 8K filing and press release by the
current management.


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<PAGE>

On 11 November 2003 Nova entered into an agreement to divest of the core
business, the electronic assets the company had idled at 2002 year end. The
electronic business unit declined shortly after acquisition due to a slow down
in demand for existing products and a lack of immediate working capital required
for new product introduction. Revenue decreased significantly from 2001 of
$4.8MM to 2002 of $.4MM whereby the company was unable to continue operations.
Previous management was unsuccessful in efforts to raise the necessary working
capital in the time frame in which the business unit had opportunities for its
product. The decrease in demand, consumption of saleable inventory and lack of
working capital resulted in discontinuing the operations at year end 2002. The
business had remained idle while the new management team and board of directors
accessed the market conditions for the company products and production
capabilities. The current board of directors had determined that restarting the
operations created significant risk for its shareholders and determined that
raising funds with equity would be difficult if not impossible. Therefore, the
Directors approached the original owners and reached an agreement for the return
of assets in turn for the return of the Torita Electronic (Hong Kong) Ltd.,
common stock in the amount of 138,612,287 shares. This was the control block
originally issued for the assets but did not include stock issued for services
in connection with facilitation of the deal and payment for services. The
divesture agreement was entered into with Han Zhende, President of Torita
Electronic (Hong Kong) Company Ltd., and provided for the return of the assets
acquired from the original agreement, dated Feb 09 2001 between Torita Donghao,
LLC and Nova Natural Resource Corporation. The agreement provided for the return
of assets, assumption of all liabilities associated with the Chinese operation
in turn for the return to Nova the 138,612,287 shares of common stock originally
issued to Torita Electronic (Hong Kong) Ltd. This information was communicated
in an 8K filing and press release by the current management.



On 17 Jun 2004 Nova entered into an agreement to purchase the assets of two Gas
Stations located in Anyang City, Henan Province, China from Great Frame
International Enterprise Limited, a Hong Kong Company. The stations were
equipped with LPG refilling equipment. The stations along with a recently
acquired LPG conversion technology would allow Nova to continue the conversion
of additional vehicles within the Anyang market and expand into other markets
within the region. The stations had the capacity to generate in excess of two
million dollars in combined fuel alternatives, but the primary focus was to
convert and service LPG vehicles. This was due to higher gross margins and the
positive environmental impact. Nova intended to issue 600,000 shares of common
stock at an agreed price of $2.00 per share, for a total purchase price of
$1,200,000. The majority owner and President/Director of Great Frame
International Enterprise Limited was Wang Li; Ms Li was also a director of Nova.
Upon the completion of the proposed agreement Wang Li would have become the
largest shareholder of NOVA with approximately 45% of the issued and outstanding
shares.

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<PAGE>

This acquisition was designed to prove the LPG conversion technology was a
benefit for both Nova and the Chinese market. The average cost to convert a taxi
from gas to LPG was approximately $420 and the conversion cost for a bus was
approximately 25% higher. It was estimated that the average taxi would drive
450KM per day with a monthly fuel saving of $73.00, creating a pay back for the
driver in six months. The pay back for a bus was approximately one and a half
years, but combined with the positive environmental results the local
governments were eager to convert. The company expected the primary growth
revenue generator would be the refilling of the LPG vehicles; the current gross
margin was significantly higher than that of the non converted petrol vehicles.
Given the increasing vehicles entering the Chinese market and vast number of
vehicles that could benefit from the conversion the company worked for over one
year to try and bring this deal to a successful close. The company engaged
several outside parties in both the US and China to develop a successful
structure for the transaction whereby Nova would have full rights privileges and
true ownership of the assets identified in the deal. Although representatives of
Nova visited the sites of these assets, the deal was complicated by a transfer
of the state assets to the Hong Kong Company. This transfer could not be assured
was acceptable under Chinese Law, making the deal risky on the representations
made by Great Frame International and since Wang Li was a director of both
companies Nova consulted with additional resources. The company evaluated
several alternatives in restructuring the deal, but in meeting with Chinese
Accountants and Legal Advisors, it was determined that the transaction could not
be structured in a manner initially negotiated. This information was
communicated in an 8K filing and press release by the current management.


On 1 July 2005 Nova rescinded the agreement entered into on June 17, 2004 to
purchase the assets of two Gas Stations located in Anyang City, Henan Province,
China. The agreement previously entered into with Great Frame International
Enterprise Limited, a Hong Kong Company, provided that Great Frame would provide
written evidence that the agreement was in compliance with Chinese Laws and
procedures and that the assets described in the agreement were not encumbered in
any manner. Failing to comply with this requirement the company cancelled the
agreement. Additionally, Mr. Chris Tse President & CEO and Chairman of the
Board, accepted the resignation of Wang Li and Yin Yanbo as directors of the
company and decided to serve as sole officer and director of the company until
such time as qualified replacements could be selected. This information was
communicated in the form of an 8K filing by the current management.



                                                                              14
<PAGE>

                       NOVA NATURAL RESOURCES CORPORATION

                              FINANCIAL STATEMENTS

                                       AND

                                AUDITOR'S REPORT

                                DECEMBER 31, 2002



                                                                              15
<PAGE>
                                TABLE OF CONTENTS




TABLE OF CONTENTS............................................................16

AUDITOR'S REPORT.............................................................17

BALANCE SHEETS...............................................................18

STATEMENTS OF OPERATIONS AND ACCUMULATED SURPLUS.............................19

STATEMENTS OF STOCKHOLDERS' EQUITY...........................................21

STATEMENTS OF CASH FLOW......................................................22

NOTES TO THE FINANCIAL STATEMENTS............................................23

NOTES TO THE FINANCIAL STATEMENTS............................................24

NOTES TO THE FINANCIAL STATEMENTS............................................26


                                                                              16
<PAGE>

                                AUDITOR'S REPORT

To the Shareholders of
Nova Natural Resources Corporation

I have audited the accompanying balance sheets of Nova Natural Resources
Corporation as at December 31, 2002 and the related statements of operations,
stockholders' equity and cash flows for the years then ended. These statements
are the responsibility of the corporation's management. My responsibility is to
express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards in
the United States. Those standards require that I plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of
material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.

I was unable to attend the physical counting of inventories at the beginning and
at the end of the year nor satisfy myself concerning those inventory quantities
by alternative means. Since opening and ending inventories enter into the
determination of the results of operations and cash flows, I was unable to
determine whether adjustments to cost of sales, net income for the year,
accumulated surplus (deficit) and cash provided from operations might be
necessary.

In my opinion, except for the effect of adjustments, if any, had I been able to
examine the opening and ending inventory quantities, as described in the
preceding paragraph, the financial statements referred to above present fairly
in all material respects, the financial position of the corporation for the year
ended December 31, 2002 and the results of its operations and its cash flows for
the years then ended in accordance with generally accepted accounting principles
in the United States.

Chartered Accountant
Markham, Ontario, Canada
October 9, 2005

                                                                              17
<PAGE>

<TABLE>
<CAPTION>


                       NOVA NATURAL RESOURCES CORPORATION

                                 BALANCE SHEETS
                             AS AT DECEMBER 31, 2002
--------------------------------------------------------------------------------


                                  ASSETS                                              12/31/02           12/31/01
                                                                                      --------           --------
<S>                                                                                 <C>                <C>
Current
Bank                                                                                $   54,641         $   12,635
Accounts Receivable                                                                    288,919          1,218,406
Inventories - Note 2 and 3                                                              73,584            394,940
Prepaid Expenses and Deposits                                                            2,963                  0
                                                                            --------------------------------------
                                                                                       420,107          1,625,981
Long Term

Receivable from Affiliated Parties - Note 8                                                  0            654,430
Capital Assets - Note 2 and 4                                                        2,366,126          2,743,971
                                                                            --------------------------------------
                                                                                     2,366,126          3,398,401

                                                                                     2,786,233          5,024,382
                                                                            ======================================
                               LIABILITIES

Current
Accounts Payable and Accruals                                                          662,289            537,783
                                                                            --------------------------------------

                           STOCKHOLDERS' EQUITY

Common stock, $0.10 par value, 300,000,000 shares authorized; 279,551,551           27,125,139         27,083,272
shares issued and outstanding

Additional Paid in Capital                                                         (19,455,716)       (19,455,716)

Accumulated Surplus (Deficit)                                                       (5,545,479)        (3,140,957)
                                                                            --------------------------------------
                                                                                     2,123,944          4,486,599

                                                                                    $2,786,233         $5,024,382
                                                                            ======================================


Approved By:

         Director:                  /s/Chris Tse                 Director:
                             ---------------------------                            ---------------------------
</TABLE>

  The accompanying summary of significant accounting policies and notes are an
                   integral part of these financial statement

--------------------------------------------------------------------------------

                                                                              18
<PAGE>

<TABLE>
<CAPTION>



                       NOVA NATURAL RESOURCES CORPORATION

                STATEMENTS OF OPERATIONS AND ACCUMULATED SURPLUS
                      FOR THE YEARS ENDED DECEMBER 31, 2002

--------------------------------------------------------------------------------



                                                                               12/31/2002         12/31/2001
                                                                               ----------         ----------


<S>                                                                            <C>               <C>
Sales Revenue                                                                $    416,286        $ 4,817,604

Less Cost of Sales                                                               (338,856)        (3,848,540)
                                                                       ---------------------------------------

Gross Margin                                                                       77,430            969,064

Expenses:
Administrative                                                                  2,214,701            601,775
Financial and Selling                                                               2,076            249,364
                                                                       --------------------------------------
                                                                                2,216,777

Consulting Fees - Note 9                                                                0         (4,574,106)

Income/(Loss) from Other Operations                                               (72,992)           (56,310)

Loss from Non-Operations - Note 6                                                (192,183)        (1,606,822)
                                                                       ---------------------------------------

Net Income for the year                                                      $ (2,404,522)       $(6,119,313)
                                                                       =======================================

Basic and diluted net income (loss) per share                                $     (0.009)       $    (0.026)
                                                                       =======================================

Weighted Average Common Shares Outstanding                                    275,192,138        237,834,275
                                                                       ======================================
</TABLE>



                                                                              19
<PAGE>

   The accompanying summary of significant accounting policies and notes are
                an integral part of these financial statements.
--------------------------------------------------------------------------------


                                                                              20
<PAGE>

<TABLE>
<CAPTION>


                       NOVA NATURAL RESOURCES CORPORATION

                       STATEMENTS OF STOCKHOLDERS' EQUITY
                      FOR THE YEARS ENDED DECEMBER 31, 2002

--------------------------------------------------------------------------------


                                                                                  Additional  Accumulated     Total
                                                Preferred                          Paid-In      Surplus    Stockholders'
                                                 Stock         Common Stock         Capital     (Deficit)     Equity
                                              --------------------------------------------------------------------------
                                   Shares       Amount      Shares      Amount
                               --------------------------------------------------
<S>                <C> <C>                       <C>     <C>         <C>         <C>           <C>           <C>
Balances, December 31, 2000               Nil    $   Nil 213,249,672 $21,324,967 $(18,169,627) $2,978,356    $6,133,696

Acquisition of Nova                 1,792,267  1,792,267  13,254,033   1,325,403    6,812,642  (9,895,548)       34,762

Acquisition Adjustments                                                            (9,895,549)  9,895,549             0

Acquisition Costs                                          2,971,512     297,152      356,642                   653,794

Debt Conversion                    (1,792,267)(1,792,267)  3,584,534     358,453    1,433,814                         0

Stock Compensation                                        37,772,973   3,777,297        6,364                 3,783,661

Net Loss for the year                                                                          (6,119,314)   (6,119,314)
                               -----------------------------------------------------------------------------------------

Balances, December 31, 2001
                                          Nil    $   Nil 270,832,724 $27,083,272 $(19,455,715)$(3,140,957)   $4,486,599

Exercise Stock Option                                      6,991,800      34,959

Debt Conversion                                            1,727,027       6,908

Net Income for the year                                                                        (2,404,522)

Balances, December 31, 2002
                                          Nil   $   Nil  279,551,551 $27,125,139 $(19,455,715)$(5,545,479)   $2,082,078
                               -----------------------------------------------------------------------------------------
</TABLE>


   The accompanying summary of significant accounting policies and notes are
                 an integral part of these financial statements

--------------------------------------------------------------------------------



                                                                              21
<PAGE>


<TABLE>
<CAPTION>


                       NOVA NATURAL RESOURCES CORPORATION

                             STATEMENTS OF CASH FLOW
                      FOR THE YEARS ENDED DECEMBER 31, 2002

--------------------------------------------------------------------------------



                                                                                12/31/02          12/31/01
                                                                                --------          --------
<S>                                                                         <C>               <C>
Cash Provided by (Used in):

Operating Activities
     Cash from Operations                                                   $ (2,404,522)     $ (6,119,313)
     Cash Provided from non cash items
              Amortization                                                       350,967           335,052
     Net Change in Non Cash Working Capital - Note 5                           1,372,386         1,769,459
                                                                       -----------------------------------
                                                                                (681,169)       (4,014,802)

Investing Activities
     Net Purchase of Capital Assets                                              26,878            (23,193)
     Long Term Investments                                                            0             15,107
                                                                       -----------------------------------
                                                                                 26,878             (8,086)

Financing Activities
     Issue of Share Capital                                                       41,867         4,472,216
     Loans from Affiliated Parties                                               654,430          (469,789)
                                                                       -----------------------------------
                                                                                 696,297         4,002,427

Increase (Decrease) in Cash during the year                                       42,006           (20,461)

Cash Balance - beginning of year                                                  12,635            33,096
                                                                       -----------------------------------

Cash Balance - end of year                                                    $  54,641          $  12,635
                                                                       ===================================
</TABLE>

    The accompanying summary of significant accounting policies and notes are
                an integral part of these financial statements.
--------------------------------------------------------------------------------


                                                                              22
<PAGE>

                       NOVA NATURAL RESOURCES CORPORATION

                        NOTES TO THE FINANCIAL STATEMENTS
                      FOR THE YEARS ENDED DECEMBER 31, 2002

--------------------------------------------------------------------------------


1. Nature of Business
--------------------------------------------------------------------------------

    On February 27, 2001, Nova Natural Resources Corporation issued 213,249,672
    of its common shares to acquire the net assets of Torita Donghao LLC, a
    Delaware corporation, with assets located in the city of Zhuhai in the
    People's Republic of China. An additional 2,971,512 common shares was issued
    along with cash of $4,500 to pay for a finder's fee. The merger resulted in
    the owners and management of Torita Donghao LLC having total operating
    control of the combined corporation after this business combination.

    For accounting purposes, this business combination has been accounted for in
    accordance with the Accounting Principles Board Opinion No: 16 as a "reverse
    acquisition" with no goodwill or other intangibles being recorded. All the
    cost of acquisition has been expensed.

    The comparative balance sheet includes all the assets, liabilities and
    equity of the combined corporations as at December 31, 2001. Similarly, the
    statements of operations and cash flow for the comparative period from
    January 1 to December 31, 2001 show the combined financial results of the
    both corporations after the reverse acquisition.


2. Summary of Significant Accounting Policies
--------------------------------------------------------------------------------

a.  Use of Estimates
    The preparation of the company's financial statements in conformity with
    generally accepted accounting principles requires management to make
    estimates and assumptions that affect the amounts reported in the financial
    statements and accompanying notes. The actual results could differ from
    those estimates.

b.  Cash Equivalents
    The company considers all highly liquid debt instruments purchased with an
    original maturity of three months or less to be cash equivalents.



    The accompanying summary of significant accounting policies and notes are
                an integral part of these financial statements.


                                                                              23
<PAGE>


                       NOVA NATURAL RESOURCES CORPORATION

                        NOTES TO THE FINANCIAL STATEMENTS
                      FOR THE YEARS ENDED DECEMBER 31, 2002

--------------------------------------------------------------------------------

c.  Earnings per Share
    Net loss per share is presented in accordance with the provisions of the
    Statement of Financial Accounting Standards (SFAS) No: 128, Earnings Per
    Share. SFAS No: 128 replaces the presentation of primary and diluted
    earnings per share (EPS), with a presentation of basic EPS and diluted EPS.
    Under SFAS No: 128, basic EPS excludes dilution for potential common shares
    and is computed by dividing the net loss by the weighted average number of
    common shares outstanding for the year. Diluted EPS reflects the potential
    dilution that could occur if securities or other contracts to issue common
    shares were exercised or converted into common stock. Basic and diluted EPS
    are the same in 2002 and 2001 as all potential common shares were
    antidilutive.

d.  Stock-based Compensation
    The company accounts for stock-based compensation for employees using the
    intrinsic value method prescribed in Accounting Principles Board Opinion No:
    25, Accounting for Stock Issued to Employees, and related interpretations.
    Accordingly, compensation costs for stock options granted to employees is
    measured as the excess, if any, of the quoted price of the company's common
    stock at the measurement date (generally, the date of grant) over the amount
    an employee must pay to acquire the stock. In October 1995, the Financial
    Standards Board issued a new statement SFAS No: 123, Accounting for
    Stock-Based Compensation. SFAS No: 123 encourages, but does not require,
    companies to recognize compensation expense for grants of stock, stock
    options, and other equity instruments based on fair value. Companies that do
    not adopt the fair value accounting rules must disclose the impact of
    adopting the new method in the notes to the financial statements.
    Transactions in equity instruments with non-employees must be accounted for
    by the fair value method. The company has decided not to adopt the fair
    value accounting method prescribed by SFAS No: 123 for employees, but is
    subject to the related disclosure requirements.

e.  Inventories
    Inventories are stated at the lower of cost and market, cost being
    determined under the first-in, first-out method.


  The accompanying summary of significant accounting policies and notes are an
                  integral part of these financial statements.


                                                                              24
<PAGE>


                       NOVA NATURAL RESOURCES CORPORATION

                        NOTES TO THE FINANCIAL STATEMENTS
                      FOR THE YEARS ENDED DECEMBER 31, 2002

--------------------------------------------------------------------------------

f.  Foreign Currency Translation
    The assets, liabilities and operations of the corporation were measured in
    the currency of the People's Republic of China ($RMB). The assets and
    liabilities have been translated to the United States ($US) dollars at the
    current rate of $RMB 8.28 to $US 1.00. The revenue, expenses, gains and
    losses of the corporation have been translated using a weighted average of
    $RMB 8.28 to $US 1.00.

g.   Capital Assets
     Capital assets are stated at cost. Amortization is provided at rates which
     are designed to write off the assets over their estimated useful lives.

     General factory machinery                 straight line over 9 years
     Electronics equipment                     straight line over 10 years
     Computer equipment                        straight line over 12 years
     Office equipment                          straight line over 6 years
     Installation equipment                    straight line over 15 years
     Assembly equipment                        straight line over 3 years
     Packing equipment and micro computers     straight line over 5 years
     Factory Computer and Audio equipment      straight line over 7 years
     Central computer system                   straight line over 11 years
     Small office machines                     straight line over 21 years

h.  Revenue Recognition
    Product sales are recognized upon shipment provided that persuasive evidence
    of an arrangement exists, no significant obligations remain, the fee is
    fixed and determinable and collectibility is considered probable. An
    allowance for sales return is recorded at the time revenue is recognized
    based on the corporation's historical experience.

3. Inventories
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                                 12/31/02          12/31/01
                                                                                 --------          --------

<S>                                                                             <C>               <C>
     Raw Materials                                                              $  24,739         $ 176,981
     Work In Progress                                                                 195               169
     Finished Goods                                                                48,650           217,790
                                                                          ---------------------------------
                                                                                $  73,584         $ 394,940
                                                                          =================================
</TABLE>

  The accompanying summary of significant accounting policies and notes are an
                  integral part of these financial statements.

                                                                              25
<PAGE>


                       NOVA NATURAL RESOURCES CORPORATION

                        NOTES TO THE FINANCIAL STATEMENTS
                      FOR THE YEAR ENDED DECEMBER 31, 2002

--------------------------------------------------------------------------------

4. Capital Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                            Accumulated                Net Book Value
                                             Cost           Amortization         12/31/02          12/31/01
                                        -----------------------------------------------------------------------

<S>                                          <C>                <C>                <C>               <C>
    Machinery and Equipment                  $4,718,364         $ 2,354,242        $ 2,364,122       $2,741,567
    Computer                                      6,972               4,968              2,004            2,404
                                        -----------------------------------------------------------------------
                                             $4,725,336         $ 2,359,210        $ 2,366,126       $2,743,971
                                        =======================================================================
</TABLE>

5. Net Change in Non Cash Working Capital
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                            12/31/2002        12/31/2001
                                                                            ----------        ----------

<S>                                                                            <C>              <C>
    Accounts Receivable                                                        929,487          1,371,120
    Inventories                                                                321,356            176,060
    Prepaid Expenses and Deposits                                               (2,963)           124,717
    Accounts Payable and Accruals                                              124,506             97,562
                                                                      ------------------------------------
                                                                           $ 1,372,386        $ 1,769,459
                                                                      ====================================
</TABLE>


6.  Subsequent Events
--------------------------------------------------------------------------------

     a)   In June 27, 2002, the company entered into an agreement with I-Legend
          Holdings Ltd., a Canadian company, to sell all its shares in Torita
          Electronic Hong Kong Ltd., a wholly owned subsidiary, in exchange for
          a combined 5% stake in I-Legend.com and SoftTel Technologies
          Incorporated. The agreement fell through because I-Legend Holdings
          Ltd. did not comply with the terms of the agreement;
     b)   Management has decided that the company would be more valuable and the
          interest of its shareholders would be better served by the sale,
          reassignment and abandonment of the company's assets and marketing the
          company as a "shell" to potential buyers. Consequently, in August 13,
          2003, by majority consent of the company's shareholders, the company's
          board of directors authorized a 1 for 3,000 reverse stock split of the
          existing shares of the company. The board also authorized an increase
          in the common share capital after the reverse stock split to
          50,000,000 shares;

  The accompanying summary of significant accounting policies and notes are an
                  integral part of these financial statements.


                                                                              26
<PAGE>


                       NOVA NATURAL RESOURCES CORPORATION

                        NOTES TO THE FINANCIAL STATEMENTS
                      FOR THE YEAR ENDED DECEMBER 31, 2002

--------------------------------------------------------------------------------


6.  Subsequent Events - continued
--------------------------------------------------------------------------------


     c)   In December 2003, the company received 138,612,287 of its common
          shares in return for all the assets and liabilities related to the
          electronic factory located in the city of Zhuhai in the People's
          Republic of China.

     d)   In the same month, the company signed an agreement to purchase an LPG
          (Liquefied Petroleum Gas) technology for $250,000. The purchase will
          be paid by the issuance of 250,000 of the company's common stock. The
          technology has since been written off by management because the vendor
          has not complied with the terms of the agreement. The company is in
          the process of canceling the issued stock related to this purchase.

     e)   On June 17, 2004, the company entered into an agreement with a company
          called Great Frame International Enterprise Limited, a company with
          head office located in Hong Kong, to purchase two gas stations located
          in the city of Anyang, in the Province of Henan, in the People's
          Republic of China. The gas stations were equipped with LPG refilling
          equipment. The stations, along with the technology referred to in (d)
          above, would allow the company to continue the conversion of vehicles
          within the Anyan and its surrounding region from gasoline to LPG
          energy. Under the terms of the agreement, the company would pay for
          the $US 1,200,000 purchase by issuing 600,000 (post reverse split
          shares) of its common shares to the vendor at $2.00 per share. On July
          1, 2005, the company rescinded the agreement because the vendor could
          not provide satisfactory evidence that the terms of the agreement
          complied with Chinese laws and procedures and that the assets
          contemplated in the transfer were unencumbered in any manner.









  The accompanying summary of significant accounting policies and notes are an
                  integral part of these financial statements.



                                                                              27