|UNITED STATESSECURITIES AND EXCHANGE COMMISSION
|-----------------------------------------------



|Washington, DC 20549FORM 10-QSB
|-------------------------------



| | [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934For the quarterly period endedSeptember 30, 2007
| | ------------------------------------------------------------------------------------------------------------------------------------------

|[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
|-----------------------------------------------------------------------
|EXCHANGE ACT OF 1934                                                   



| | For the transition period from ______________________To ______________________
| | ------------------------------------------------------------------------------



|Commission file number333-135946HEMIS CORPORATION(Exact name of registrant as specified in its charter)
|-------------------------------------------------------------------------------------------------------

|Nevada(State or other jurisdiction of incorporation or organization) | 20-2749916(I.R.S. Employer Identification No.)
|-------------------------------------------------------------------- | ----------------------------------------------



|Bettlistrasse 358600 Dübendorf, Switzerland(Address of principal executive offices)(702) 387 2382(Registrants telephone number, including area code)
|-----------------------------------------------------------------------------------------------------------------------------------------------------

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



|Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of theExchange Act during the past 12 months (or for such shorter period that the registrant wasrequire to file such reports), and (2) has been subject to such filing requirements for the past 90days. [X] Yes [ ] NoIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of theExchange Act).[ ] Yes [X] NoAPPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURINGTHE PRECEDING FIVE YEARS:Check whether the registrant has filed all documents and reports required to be filed by Sections12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securitiesunder a plan confirmed by a court. [ ] Yes [ ] NoAPPLICABLE ONLY TO CORPORATE ISSUERS
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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As of November 5, 2007, the registrants outstanding common stock consisted of 74,824,372shares.



Table of ContentsPART 1-FINANCIAL INFORMATIONITEM 1.
     FINANCIAL STATEMENTS
     2ITEM 2.
     MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION/PLAN OF OPERATIONS
     3ITEM 3.
     CONTROL AND PROCEDURES
     13PART II-OTHER INFORMATION
     13ITEM 1.
     LEGAL PROCEEDINGS
     13ITEM 2.
     UNREGISTERED SALES OF EQUITY SECURITIES
     14ITEM 3.
     DEFAULTS UPON SENIOR SECURITIES
     15ITEM 4.
     SUBMISSION OF MATTERS TO A VOTE SECURITY HOLDERS
     15ITEM 5.
     OTHER INFORMATION
     15ITEM 6.
     EXHIBITS
     16




|1
|-

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|PART I  FINANCIAL INFORMATION
|------------------------------



|ITEM 1. FINANCIAL STATEMENTSThe unaudited interim consolidated financial statements of Hemis Corporation (the Company,Hemis, we, our, us) follow. All currency references in this report are in US dollars unlessotherwise noted.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Hemis CorporationSeptember 30, 2007(unaudited)
|----------------------------------------------

|Index to Financial Statements                                                     | Page       
|--------------------------------------------------------------------------------- | -----------
|                                                                                 
|                                                                                 
|Condensed Consolidated Balance Sheets as of September 30, 2007 and                | F-1        
|                                                                                  |            
|December 31, 2006                                                                 |            
|                                                                                 
|                                                                                 
|Condensed Consolidated Statements of Losses for the three and nine months         | F-2        
|                                                                                  |            
|ended September 30, 2007 and September 30,2006, and for the period from           |            
|                                                                                  |            
|February 9, 2005 (date of inception) to September 30, 2007                        |            
|                                                                                 
|                                                                                 
|Condensed Consolidated Statements of (Deficiency in) Stockholders' Equity for the | F-3 ~ F-11 
|                                                                                  |            
|period from February 9, 2005 (date of inception) to September 30, 2007            |            
|                                                                                 
|                                                                                 
|Condensed Consolidated Statements of Cash Flows for the nine months ended         | F-12 ~ F-13
|                                                                                  |            
|September 30, 2007 and September 30,2006 , and for the period from February 9,    |            
|                                                                                  |            
|2005 (date of inception) to September 30, 2007                                    |            
|                                                                                 
|                                                                                 
|Notes to Unaudited Condensed Consolidated Financial Statements                    | F-14~ F-36 



|2
|-

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|HEMIS CORPORATION.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |             |            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | -----------
|(An exploration stage company)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |             |            
|CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |             |            
|SEPTEMBER 30, 2007 (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |             |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (Unaudited) | (Audited)  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | September   | December   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 30,         |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 2007        | 2006       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |             |            
|CURRENT ASSETS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |             |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $ 157,647   | $ 2,437,981
|Cash held in trust (Note A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | -           | 23,468     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Advances to related party ( Note F)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | -           | 95,000     
|Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 110,109     | 179,847    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 267,756     | 2,736,296  
|Property and equipment, at cost:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |             |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Furniture and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 154,712     | 70,460     
|Less: accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (25,204)    | (8,038)    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Total property and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 129,508     | 62,422     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Net assets of discontinued operations (Note F)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -           | 16,275     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $ 397,264   | $ 2,814,993
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|LIABILITIES AND (DEFICIENCY IN) STOCKHOLDERS'                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |             |            
|CURRENT LIABILITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |             |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Accounts payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $ 228,638   | $ 266,782  
|Other payables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 70,000      | -          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Advances from related party ( Note F)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 1,380,583   | -          
|Put liability (Note D)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | -           | 636,168    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 1,679,221   | 902,950    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |            
|Net liability of discontinued operations(Note F)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 8,637       | 15,444     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|COMMITMENTS AND CONTINGENCIES (Note E)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | -           | -          
|(DEFICIENCY IN) STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |             |            
|Common stock, par value $.001 per share; 150,000,000 sharesauthorized at September 30, 2007 and December 31, 2006;73,356,041 and 20,309,373 shares issued and outstanding at  
September 30, 2007 and December 31, 2006, respectively (Note B)
Deferred compensation expenses (Note B and C)Additional paid-in capitalCommon stock subscription payable (Note B)Common stock subscription receivable (Note B)Accumulated deficit during exploration stageAccumulated other comprehensive loss:Foreign currency translation adjustment(Deficiency in) Stockholders' equityTotal liabilities and (deficiency in) stockholders' equity |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |             |            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |            







|
|



|See accompanying notes to unaudited condensed consolidated financial statements.F-1
|-----------------------------------------------------------------------------------

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|HEMIS CORPORATION.(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF LOSSES AND COMPREHENSIVELOSSES (Unaudited)
|-------------------------------------------------------------------------------------------------------------------------------

|                           |               |               |               |               | For the      
|-------------------------- | ------------- | ------------- | ------------- | ------------- | -------------
|                           |               |               |               |               | period       
|                           | For the       | For the       | For the nine  | For the nine  | February 9,  
|                           | three         | three         |               |               | 2005         
|                           | Months        | Months        | Months        | Months        | (date of     
|                           |               |               |               |               | inception)   
|                           | September     | September     | September     | September     | through      
|                           | 30, 2007      | 30, 2006      | 30, 2007      | 30, 2006      | September    
|                           |               |               |               |               | 30, 2007     
|                          
|Costs and Expenses:        |               |               |               |               |              
|General and Administrative | $ 3,608,507 $ | 1,147,480     | $ 11,175,397  | $ 3,181,495   | $ 18,982,205 
|Depreciation               | 7,945         | 2,637         | 17,165        | 15,425        | 24,590       
|Total Operating Expense    | 3,616,452     | 1,150,117     | 11,192,562    | 3,196,920     | 19,006,795   
|                          
|Loss from Operations       | (3,616,452 )  | (1,150,117 )  | (11,192,562)  | (3,196,920 )  | (19,006,795) 
|                          
|Other income (expenses):   |               |               |               |               |              
|Loss on put agreement      | -             | -             | (20,789)      | -             | (141,105)    
|(Note                      |               |               |               |               |              
|                          
|Loss from continuing       |               |               |               |               |              
|taxes and discontinued     | (3,616,452 )  | ( 1,150,117 ) | (11,213,351)  | (3,196,920 )  | (19,147,900) 
|Provision for Income Tax   | -             | -             | -             | -             | -            
|                          
|Loss from continuing       |               |               |               |               |              
|operations                 | (3,616,452 )  | ( 1,150,117 ) | (11,213,351)  | (3,196,920 )  | (19,147,900) 
|Loss from discontinued     | -             | -             | (4,748 )      | (22,128 )     | (108,246)    
|operations                 |               |               |               |               |              
|Loss on disposal of        | -             | (27,895 )     | (4,720 )      | (27,895 )     | (32,615)     
|discontinued ops           |               |               |               |               |              
|                          
|Net Loss                   | $(3,616,452 ) | $(1,178,012 ) | $(11,222,819) | $(3,246,943)  | $(19,288,761)
|                          
|Other Comprehensive        |               |               |               |               |              
|Losses                     |               |               |               |               |              
|Loss on foreign currency   | 68,282        | 839           | 57.638        | 839           | 56,441       
|Total Comprehensive Loss   | $(3,548,170 ) | $(1,177,173)  | $(11,165,181) | $(3,246,104 ) | $(19,232,320)
|                          
|Loss per common share      | $ (0.05 )     | $(0.09 )      | $(0.17 )      | $(0.22 )      |              
|(basic)                    |               |               |               |               |              
|Continuing operations      | $ (0.05 )$    | $(0.09 )      | $(0.17 )      | $(0.22 )      |              
|Discontinued operations    | $ (0.00 )$    | $(0.00 )      | $(0.17 )      | $(0.22 )      |              
|                          
|Weighted average common    |               |               |               |               |              
|for computation            | 72,570,427    | 12,928,593    | 67,247,532    | 14,728,625    |              



|See accompanying notes to unaudited condensed consolidated financial statements.F-2
|-----------------------------------------------------------------------------------

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HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERS'EQUITYFOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)



|                                                                                                  | CommonShares | StockAmount | AdditionalPaid inCapital | CommonStockSubscription | DeferredCompensationExpense | DeficitAccumulatedExplorationStage | Total      
|------------------------------------------------------------------------------------------------- | ------------ | ----------- | ------------------------ | ----------------------- | --------------------------- | ---------------------------------- | -----------
|Issuance of common stockto founders in May 2005 at$0.001 per share                                | 10,000,000   | $10,000     | -$                       | -$                      | -$                          | -$                                 | 10,000     
|Issuance of stock optionsto founders in May 2005 inexchange for deferred                          | -            | -           | 5,500,000                | -                       | (5,500,000)                 | -                                  | -          
|compensation (Note C)Shares issued in May 2005pursuant to privateplacement at $.55 pershare       | 30,000       | 30          | 16,470                   | -                       | -                           | -                                  | 16,500     
|Shares issued in July 2005in exchange for services at$.55 per share                               | 100,000      | 100         | 54,900                   | -                       | -                           | -                                  | 55,000     
|Shares issued in July 2005pursuant to privateplacement at $.55 per                                | 500          | 1           | 274                      | -                       | -                           | -                                  | 275        
|shareShares issued in August2005 pursuant to privateplacement at $.55 per                         | 458,183      | 458         | 226,342                  | -                       | -                           | -                                  | 226,800    
|sharenet of costs and feesShares issued inSeptember2005 in exchange forservices at $.55 per share | 100,000      | 100         | 54,900                   | -                       | -                           | -                                  | 55,000     
|Common stock subscribed                                                                           | -            | -           | -                        | 430,625                 | -                           | -                                  | 430,625    
|Amortization of deferredcompensation (Note C)                                                     | -            | -           | -                        | -                       | 733,333                     | -                                  | 733,333    
|Net loss                                                                                          | -            | -           | -                        | -                       | -                           | (1,237,203)                        | (1,237,203)
|Balance at December 31,2005                                                                       | $10,688,683  | $10,689     | $5,852,886               | $430,625                | $(4,766,667)                | $(1,237,203)                       | $290,330   





|
|



|See accompanying notes to unaudited condensed consolidated financial statements.F-3
|-----------------------------------------------------------------------------------

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HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERSEQUITY (Continued)FOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)

|                                                                                                                        | CommonShares | StockAmount | AditionalPaidinCapital | CommonStockSubscriptionPayable | CommonStockSubscriptionReceivable | ForeignCurrencyTranslationAdjustments | DeferredCompensation | DeficitAccumulatedDuringExplorationStage | Total($)
|----------------------------------------------------------------------------------------------------------------------- | ------------ | ----------- | ---------------------- | ------------------------------ | --------------------------------- | ------------------------------------- | -------------------- | ---------------------------------------- | --------
|Balanceforward                                                                                                          | 10,688       | $10,689     | $5,852,886             | $430,625                       | $-                                | $-                                    | $(4,766,667)         | $(1,237,203)                             | 290,330 
|Sharesissued inJanuary2006 forcommonstocksubscribedin Dec.2005                                                          | 593,638      | 594         | 325,906                | (326,500)                      | -                                 | -                                     | -                    | -                                        | -       
|Sharesissued inFeb 2006inexchangeforcommonstocksubscribedin Dec.2005 andpursuanttoprivateplacementat $.55 pershare, net |              |             |                        |                                |                                   |                                       |                      |                                          |         
|of costsand fees                                                                                                        | 274,795      | 275         | 140,862                | (93,125)                       | -                                 | -                                     | -                    | -                                        | 48,012  
|Sharesissued inMarch2006 inexchangeforcommonstocksubscribedin Dec.2005andpursuantto                                     |              |             |                        |                                |                                   |                                       |                      |                                          |         
|                                                                                                                        |              |             |                        |                                |                                   |                                       |                      |                                          |         

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|privateplacementat $.55 pershare, net  |          |     |        |          |   |   |   |       
|-------------------------------------- | -------- | --- | ------ | -------- | - | - | - | ------
|of costsand fees                       | 164, 337 | 163 | 79,386 | (11,000) | - | - | - | 68,549
|Issuanceof stockoptions inJan. 2006in  |          |     |        |          |   |   |   |       
|exchangefor consultingservices(Note C) | -        | -   | 26,845 | -        | - | - | - | 26,845





|
|



|
|



|See accompanying notes to unaudited condensed consolidated financial statements.F-4
|-----------------------------------------------------------------------------------

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|HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERSEQUITY (Continued)FOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Shares issued in May 2006                                  |          
|---------------------------------------------------------- | ---------
|pursuant to private                                        |          
|placement at $.55 per share, net of                        | 480,000  
|costs and fees                                             |          
|Shares issued in May 2006                                  |          
|pursuant to private                                        |          
|placement at $.75 per share, net of                        | 25,000   
|costs and fees                                             |          
|Shares issued in May 2006 in                               |          
|exchange for services                                      |          
|at approximately $.55 per share                            | 1,070,880
|Shares issued in placement at                              | 308,772  
|$.55 per share, net of costs and                           |          
|fees                                                       |          
|Shares issued in June 2006                                 |          
|pursuant to private                                        |          
|placement at $.75 per share, net of                        | 150,000  
|costs and fees                                             |          
|Shares issued in June 2006 in                              |          
|exchange for services                                      |          
|at approximately $.55 per share                            | 50,000   
|Shares issued in June 2006 in                              |          
|exchange for services                                      |          
|at approximately $.75 per share                            | 125,000  
|Shares issued in August 2006                               |          
|pursuant to privateplacement at $.75, net of costs andfees | 1,033,730





|See accompanying notes to unaudited condensed consolidated financial statements.F-5
|-----------------------------------------------------------------------------------

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|HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERSEQUITY (Continued)FOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Shares issued in August 2006 in      |          
|------------------------------------ | ---------
|exchange for services                |          
|at approximately $.75 per share      | 5,000    
|Shares issued in September 2006      |          
|pursuant to private                  |          
|placement at $.75, net of costs and  | 961,428  
|fees                                 |          
|Shares issued in October 2006        |          
|pursuant to private                  |          
|placement at $.75, net of costs and  | 244,000  
|fees                                 |          
|Shares issued in October 2006 in     |          
|exchange for services                |          
|at $.75 per share                    | 1,500,000
|Shares issued in October 2006 in     |          
|exchange for                         |          
|exploration expenditures at $.75 per | 25,000   
|share                                |          
|Shares issued in October 2006        |          
|pursuant to private                  |          
|placement at $.95, net of costs and  | 357,420  
|fees                                 |          
|Shares issued in October 2006 in     |          
|exchange for                         |          
|Exploration expenditures at $.95     | 25,000   
|per share                            |          
|Shares issued in November 2006       |          
|pursuant to private                  |          
|placement at $.75 per share, net of  | 52,614   
|costs and fees                       |          



|See accompanying notes to unaudited condensed consolidated financial statements.F-6
|-----------------------------------------------------------------------------------

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| | HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERSEQUITY (Continued)FOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Shares issued in         |             |         |             |            |          |          |              |              |             
|------------------------ | ----------- | ------- | ----------- | ---------- | -------- | -------- | ------------ | ------------ | ------------
|November 2006            |             |         |             |            |          |          |              |              |             
|pursuant to private      |             |         |             |            |          |          |              |              |             
|placement at $.95,       | 295,528     | 296     | 260,312     | -          | -        | -        | -            | -            | 260,608     
|net of costs and fees    |             |         |             |            |          |          |              |              |             
|Shares issued in         |             |         |             |            |          |          |              |              |             
|November 2006 in         |             |         |             |            |          |          |              |              |             
|exchange for services    |             |         |             |            |          |          |              |              |             
|at approximately $.95    | 1,310,180   | 1,310   | 1,242,935   | -          | -        | -        | -            | -            | 1,244,245   
|per share                |             |         |             |            |          |          |              |              |             
|Shares issued in         |             |         |             |            |          |          |              |              |             
|December 2006            |             |         |             |            |          |          |              |              |             
|pursuant to private      |             |         |             |            |          |          |              |              |             
|placement at $.95,       | 15,789      | 16      | 13,484      | -          | -        | -        | -            | -            | 13,500      
|net of costs and fees    |             |         |             |            |          |          |              |              |             
|Shares issued in         |             |         |             |            |          |          |              |              |             
|December 2006            |             |         |             |            |          |          |              |              |             
|pursuant to private      |             |         |             |            |          |          |              |              |             
|placement at $1.20,      | 549,150     | 549     | 611,051     | -          | -        | -        | -            | -            | 611,600     
|net of costs and fees    |             |         |             |            |          |          |              |              |             
|Shares issued in         |             |         |             |            |          |          |              |              |             
|December 2006 in         |             |         |             |            |          |          |              |              |             
|exchange for             |             |         |             |            |          |          |              |              |             
|services at $1.20 per    | 3,429       | 3       | 4,111       | -          | -        | -        | -            | -            | 4,114       
|share                    |             |         |             |            |          |          |              |              |             
|Reclassification of      | -           | -       | (515,852)   | -          | -        | -        | -            | -            | (515,852 )  
|equity to liability upon |             |         |             |            |          |          |              |              |             
|issuance of put          |             |         |             |            |          |          |              |              |             
|Common stock             | -           | -       | -           | 1,330,938  | -        | -        | -            | -            | 1,330,938   
|subscribed               |             |         |             |            |          |          |              |              |             
|Amortization of          | -           | -       | -           | -          | -        | -        | 1,100,000    | -            | 1,100,000   
|deferred                 |             |         |             |            |          |          |              |              |             
|compensation (Note C)    |             |         |             |            |          |          |              |              |             
|Net loss                 | -           | -       | -           | -          | -        | -        | -            | (6,828,739)  | (6,828,739 )
|                         |             |         |             |            |          |          |              |              |             
|Other                    |             |         |             |            |          |          |              |              |             
|Comprehensive loss:      |             |         |             |            |          |          |              |              |             
|Foreign exchange         | -           | -       | -           | -          | -        | (1,197)  | -            | -            | ( 1,197 )   
|translation loss         |             |         |             |            |          |          |              |              |             
|Balance at               | $20,309,373 | $20,309 | $12,282,459 | $1,330,938 | $(3,300) | $(1,197) | $(3,666,667) | $(8,065,942) | $ 1,896,599 
|December 31, 2006        |             |         |             |            |          |          |              |              |             



|See accompanying notes to unaudited condensed consolidated financial statements.F-7
|-----------------------------------------------------------------------------------

---



| | HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERSEQUITY (Continued)FOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                     | Common     |        | Additional | Common       | Common       | Foreign     | Deferred     | Deficit     | Total      
|-------------------- | ---------- | ------ | ---------- | ------------ | ------------ | ----------- | ------------ | ----------- | -----------
|                     | Stock      |        | Paid in    | Stock        | Stock        | Currency    | Compensation | Accumulated |            
|                     | Shares     | Amount | Capital    | Subscription | Subscription | Translation |              | During      |            
|                     |            |        |            | Payable      | Receivable   | Adjustments |              | Exploration |            
|                     |            |        |            |              |              |             |              | Stage       |            
|                     |            |        |            |              |              |             |              |             |            
|                     |            |        |            |              |              |             |              |             |            
|                    
|Balance at           | 20,309,373 | 20,309 | 12,282,459 | 1,330,938    | (3,300)      | (1,197)     | (3,666,667)  | (8,065,942) | $1,896, 599
|December 31, 2006    |            |        |            |              |              |             |              |             |            
|                    
|Shares issued in     |            |        |            |              |              |             |              |             |            
|January 2007 for     |            |        |            |              |              |             |              |             |            
|common stock         |            |        |            |              |              |             |              |             |            
|subscribed in        | 1,154,862  | 1,155  | 1,325,619  | 1,326,774    | -            | -           | -            | -           | -          
|December 2006        |            |        |            |              |              |             |              |             |            
|                    
|Shares issued in     |            |        |            |              |              |             |              |             |            
|January 2007 for     |            |        |            |              |              |             |              |             |            
|commission in        |            |        |            |              |              |             |              |             |            
|connection with      | 4,100      | 4      | (4)        | -            | -            | -           | -            | -           | -          
|common stock         |            |        |            |              |              |             |              |             |            
|subscribed in        |            |        |            |              |              |             |              |             |            
|December 2006        |            |        |            |              |              |             |              |             |            
|                    
|Commission paid in   |            |        |            |              |              |             |              |             |            
|connection with      |            |        |            |              |              |             |              |             |            
|common stock         |            |        |            |              |              |             |              |             |            
|subscribed in        | -          | -      | (33,582)   | -            | -            | -           | -            | -           | (33,582)   
|December 2006        |            |        |            |              |              |             |              |             |            
|                    
|Shares issued in     |            |        |            |              |              |             |              |             |            
|January 2007         |            |        |            |              |              |             |              |             |            
|pursuant to private  |            |        |            |              |              |             |              |             |            
|placement            |            |        |            |              |              |             |              |             |            
|at $1.20 per share,  | 115,091    | 115    | 107,885    | -            | -            | -           | -            | -           | 108,000    
|net of costs and     |            |        |            |              |              |             |              |             |            
|fees                 |            |        |            |              |              |             |              |             |            
|                    
|Shares issued in     |            |        |            |              |              |             |              |             |            
|January 2007         |            |        |            |              |              |             |              |             |            
|pursuant to exercise |            |        |            |              |              |             |              |             |            
|of stock             |            |        |            |              |              |             |              |             |            
|options at $.001 per | 10,000,000 | 10,000 | -          | -            | -            | -           | -            | -           | 10,000     
|share                |            |        |            |              |              |             |              |             |            
|                    
|Shares issued in     |            |        |            |              |              |             |              |             |            
|January 2007 in      |            |        |            |              |              |             |              |             |            
|exchange for         |            |        |            |              |              |             |              |             |            
|services             |            |        |            |              |              |             |              |             |            
|at approximately     | 42,500     | 43     | 50,957     | -            | -            | -           | -            | -           | 51,000     
|$1.20 per share      |            |        |            |              |              |             |              |             |            
|                    
|Stock dividend       | 31,625,926 | 31,625 | (31,625)   | -            | -            | -           | -            | -           | -          
|issued in January    |            |        |            |              |              |             |              |             |            
|2007                 |            |        |            |              |              |             |              |             |            



|See accompanying notes to unaudited condensed consolidated financial statements.F-8
|-----------------------------------------------------------------------------------

---

HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERSEQUITY (Continued)FOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)

|Shares issued in January 2007 for commonstock subscribed in December 2006                                           | 3,470     | 3     | 4,161     | (4,164) | - | - | -           | - | -        
|------------------------------------------------------------------------------------------------------------------- | --------- | ----- | --------- | ------- | - | - | ----------- | - | ---------
|Issuance of stock options in January 2007in exchange for consulting services (Note C)                               | -         | -     | 72,300    | -       | - | - | -           | - | 72,300   
|Shares issued in February 2007 pursuantto private placement at $1.20 pe share,net of costs and fees                 | 101,770   | 102   | 107,898   | -       | - | - | -           | - | 108,000  
|Shares issued in February 2007 in exchangefor services at approximately $1.20                                       | 607,500   | 607   | 728,393   | -       | - | - | -           | - | 729,000  
|Shares issued in February 2007 pursuantto private placement at $.60 per share,net of costs and fees                 | 166,800   | 167   | 99,913    | -       | - | - | -           | - | 100,080  
|Shares issued in February 2007 in exchangefor commission in connection with commonstock subscribed in December 2006 | 43,600    | 44    | (44)      | -       | - | - | -           | - | -        
|Shares issued in February 2007 in exchangefor services at approximately $1.90 per share                             | 10,000    | 10    | 18,990    | -       | - | - | -           | - | 19,000   
|Shares issued in March 2007 pursuant toprivate placement at $.65 per share, net ofcosts and fees                    | 222,000   | 222   | 128,978   | -       | - | - | -           | - | 129,200  
|Shares issued in March 2007 in exchange forservices rendered and to be rendered atapproximately $1.10 per share     | 5,063     | 5,064 | 5,564,936 | -       | - | - | (2,055,602) | - | 3,514,398
|Shares issued in March 2007 in exchangefor services rendered and to be rendered atapproximately $1.50 per share     | 3,000,000 | 3,000 | 4,497,000 | -       | - | - | (3,260,959) | - | 1,239,041



|See accompanying notes to unaudited condensed consolidated financial statements.F-9
|-----------------------------------------------------------------------------------

---



| | HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERSEQUITY (Continued)FOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Shares issued in March 2007 in exchange for     | 10,000      | 10      | 12,990    | -       | - | - | -         | -            | 13,000      
|----------------------------------------------- | ----------- | ------- | --------- | ------- | - | - | --------- | ------------ | ------------
|services at approximately 1.30 per share        |             |         |           |         |   |   |           |              |             
|Shares issued in March 2007 in exchange for     |             |         |           |         |   |   |           |              |             
|services rendered and to be rendered at         |             |         |           |         |   |   |           |              |             
|approximately $1.34 per share                   | 40,000      | 40      | 53,560    | -       | - | - | (25,699)  | -            | 27,901      
|                                                |             |         |           |         |   |   |           |              |             
|Shares issued in March 2007 for commission in   | 36,604      | 37      | (37)      | -       | - | - | -         | -            | -           
|connection with common stock subscribed         |             |         |           |         |   |   |           |              |             
|                                                |             |         |           |         |   |   |           |              |             
|Shares issued in April 2007 pursuant to private |             |         |           |         |   |   |           |              |             
|placement at $1.00 per share,                   |             |         |           |         |   |   |           |              |             
|net of costs and fees                           | 14,400      | 14      | 12,986    | -       | - | - | -         | -            | 13,000      
|                                                |             |         |           |         |   |   |           |              |             
|Shares issued in April 2007 in exchange for     | 32,500      | 32      | 32,868    | -       | - | - | -         | -            | 32,900      
|services                                        |             |         |           |         |   |   |           |              |             
|                                               
|Shares issued in May 2007 pursuant to private   |             |         |           |         |   |   |           |              |             
|placement at $1.00 per share,                   |             |         |           |         |   |   |           |              |             
|net of costs and fees                           | 17,500      | 17      | 15,733    | -       | - | - | -         | -            | 15,750      
|                                               
|Shares issued in May 2007 pursuant to private   |             |         |           |         |   |   |           |              |             
|placement at $.80 per share,                    |             |         |           |         |   |   |           |              |             
|net of costs and fees                           | 56,250      | 56      | 40,944    | -       | - | - | -         | -            | 41,000      
|                                               
|Shares issued in May 2007 in exchange for       | 500,000     | 500     | 524,500   | -       | - | - | (276,164) | -            | 248,836     
|services rendered and to be rendered            |             |         |           |         |   |   |           |              |             
|                                                |             |         |           |         |   |   |           |              |             
|Shares issued in June 2007 pursuant to private  |             |         |           |         |   |   |           |              |             
|placement at $.80 per share,                    |             |         |           |         |   |   |           |              |             
|net of costs and fees                           | 112,500     | 113     | 80,877    | -       | - | - | -         | -            | 81,000      
|Shares issued in June 2007 in exchange for      | 394,780     | 395     | 315,429   | -       | - | - | -         | -            | 315,824     
|services rendered                               |             |         |           |         |   |   |           |              |             
|                                               
|Shares issued in July 2007 pursuant to private  | 315,000     | 315     | 188,685   | -       | - | - | -         | -            | 189,000     
|placement at $.60 per share.                    |             |         |           |         |   |   |           |              |             
|Shares issued in July 2007 in exchange for      | 401,100     | 401     | 164,039   | -       | - | - | -         | -            | 164,440     
|services rendered                               |             |         |           |         |   |   |           |              |             
|                                                |             |         |           |         |   |   |           |              |             
|Shares issued in July 2007 in exchange for      | 75,000      | 75      | 30,675    | -       | - | - | -         | -            | 30,750      
|resource property costs                         |             |         |           |         |   |   |           |              |             
|                                                |             |         |           |         |   |   |           |              |             
|Shares issued in July 2007 to investor pursuant | 100,000     | 100     | 39,900    | -       | - | - | -         | -            | 40,000      
|to a settlement agreement                       |             |         |           |         |   |   |           |              |             
|Shares issued in August 2007 pursuant to        | 621,125     | 621     | 264,629   | -       | - | - | -         | -            | 265,250     
|private placement at $.60 per share.            |             |         |           |         |   |   |           |              |             
|                                                |             |         |           |         |   |   |           |              |             
|Shares issued in August 2007 in exchange for    | 440,000     | 440     | 141,160   | -       | - | - | -         | -            | 141,600     
|services rendered                               |             |         |           |         |   |   |           |              |             
|                                                |             |         |           |         |   |   |           |              |             
|Shares issued in August 2007 at $.26 per        | 30,000      | 30      | (30)      | -       | - | - | -         | -            | -           
|share in connection with common stock           |             |         |           |         |   |   |           |              |             
|subscribe in December 2006                      |             |         |           |         |   |   |           |              |             
|                                                |             |         |           |         |   |   |           |              |             
|Exercise of put agreement and cancellation of   | (2,311,346) | (2,311) | (844,115) | -       | - | - | -         | -            | (846,426)   
|put shares (Note D)                             |             |         |           |         |   |   |           |              |             
|                                               
|Common stock subscribed                         | -           | -       | -         | 334,984 | - | - | -         | -            | 334,984     
|                                               
|Amortization of deferred officer compensation   | -           | -       | -         | -       | - | - | 822,740   | -            | 822,740     
|(Note C)                                        |             |         |           |         |   |   |           |              |             
|                                               
|Net loss                                        | -           | -       | -         | -       | - | - | -         | (11,222,819) | (11,222,819)



|See accompanying notes to unaudited condensed consolidated financial statements.F-10
|------------------------------------------------------------------------------------

---



| | HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF (DEFICIENCY IN) STOCKHOLDERSEQUITY (Continued)FOR THE PERIOD FEBRUARY 9, 2005 (DATE OF INCEPTION) THROUGH SEPTEMBER 30,2007 (Unaudited)
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|OtherComprehensiveIncome:Foreignexchangetranslation gain | -          | -       | -           | -        | -        | 57,638   | -            | -             | 57,638      
|-------------------------------------------------------- | ---------- | ------- | ----------- | -------- | -------- | -------- | ------------ | ------------- | ------------
|Balance atSeptember 30,2007                              | 73,356,041 | $73,354 | $25,999,038 | $334,984 | $(3,300) | $ 56,441 | $(8,462,351) | $(19,288,761) | $(1,290,594)



|See accompanying notes to unaudited condensed consolidated financial statements.F-11
|------------------------------------------------------------------------------------

---

|HEMIS CORPORATION                                      |                |                |                 
|------------------------------------------------------ | -------------- | -------------- | ----------------
|(An exploration stage company)                         |                |                |                 
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS        |                |               
|(Unaudited)                                            |                |                |                 
|                                                      
|                                                       | For the        | For the        | For the period  
|                                                       | nine           | nine           | from February 9,
|                                                       | Months         | Months         | (date of        
|                                                       | September      | September      | inception) to   
|                                                       | 30, 2007       | 30, 2006       | September 30,   
|                                                       |                |                | 2007            
|                                                      
|INCREASE IN CASH AND EQUIVALENTS                       |                |                |                 
|CASH FLOWS FROM OPERATING                              |                |                |                 
|                                                      
|Net loss from exploration stage operations             | $(11,222,819 ) | $ (3,246,943 ) | $(19,288,761)   
|Loss on discontinued operations                        | 9,468          | 50,023         | 140,861         
|                                                      
|Loss from continuing operations                        | (11,213,351 )  | (3,196,920 )   | (19,147,900)    
|Depreciation                                           | 17,165         | 15,425         | 24,590          
|                                                      
|Common stock issued in exchange for services           | 6,530,186      | 713,984        | 9,727,529       
|Common stock issued in exchange for exploration        | 30,750         | -              | 73,250          
|expenditure (Note B)                                   |                |                |                 
|Stock options issued in exchange for services          | 72,300         | 26,845         | 99,145          
|                                                      
|Amortization of deferred compensation (Note C)         | 822,740        | 822,740        | 2,656,073       
|Common stock issued to founders                        | -              | -              | 10,000          
|                                                      
|Loss on put agreement (Note D)                         | 20,789         | -              | 141,105         
|Impairment of investment (Note F)                      | 1,500          | -              | 1,500           
|                                                      
|Adjustments to reconcile net loss from exploration     |                |                |                 
|stage operations to cash used in operating activities: |                |                |                 
|Changes in assets and liabilities:                     |                |                |                 
|                                                      
|Prepaid expenses and other assets                      | 91,706         | (54,199 )      | (111,607)       
|Other receivables                                      | 95,000         | (70,000 )      | -               
|                                                      
|Other payables                                         | 70,000         | -              | 70,000          
|Accounts payable and accrued expenses                  | (38,144 )      | 369,868        | 236,896         
|                                                      
|Net cash used in continuing operations                 | (3,499,359 )   | (1,372,257 )   | (6,219,419)     
|Net cash used in discontinued operations (Note F)      | (11,555 )      | (50,023 )      | (121,927)       
|                                                      
|NET CASH USED IN OPERATING                             | (3,510,914 )   | (1,422,280 )   | (6,341,346)     
|CASH FLOWS FROM INVESTING                              |                |                |                 
|                                                      
|Capital expenditures                                   | (84,252 )      | (52,874 )      | (154,099)       
|Net cash used in continuing operations                 | (84,252 )      | (52,874 )      | (154,099)       
|                                                      
|Net cash provided by discontinued operations           | 11,205         |                | (18,906)        
|NET CASH USED IN INVESTING ACTIVITIES                  | (73,047 )      | 56,874         | (173,005)       
|                                                      
|CASH FLOWS FROM FINANCING                              |                |                |                 
|Net cash paid in connection with put agreement         | (1,503,392 )   | -              | (1,503,392)     
|                                                      
|Proceeds from sale of common stock and common          |                |                |                 
|stock subscription, net of costs and fees (Note B)     | 1,369,482      | 2,378,570      | 6,739,050       
|Proceeds from related parties advances, net of         | 1,380,583      | ( 8,433 )      | 1,380,583       
|                                                      
|NET CASH PROVIDED BY(USED IN) FINANCING                | 1,246,673      | 2,370,137      | 6,616,241       
|ACTIVITIES                                             |                |                |                 
|                                                      
|Effect of exchange rate changes on cash and cash       | 56,954         | 1,213          | 55,757          
|equivalents                                            |                |                |                 
|                                                      
|NET INCREASE (DECREASE) IN CASH AND                    | (2,280,334 )   | 896,196        | 157,647         
|EQUIVALENTS                                            |                |                |                 
|                                                      
|Cash and cash equivalents at the beginning of the      | 2,437,981      | 327,049        | -               



|See accompanying notes to unaudited condensed consolidated financial statements.F-12
|------------------------------------------------------------------------------------

---



|HEMIS CORPORATION(An exploration stage company)CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)(Unaudited)
|---------------------------------------------------------------------------------------------------------------------

|Cash and cash equivalents at the end of the     | $ 157,647 | $ 1,223,245 | $ 157,647
|----------------------------------------------- | --------- | ----------- | ---------
|                                                |          
|Supplemental Disclosures of Cash Flow           |           |             |          
|                                               
|Cash paid during the period for interest        | $ -       | $ -         | $ -      
|Income taxes paid                               | -         | -           | -        
|                                               
|Common stock issued in exchange for services    | 6,530,186 | 713,984     | 9,727,529
|Common stock issued in exchange for exploration | 30,750    | -           | 73,250   
|expenditures (Note B)                           |           |             |          
|                                                |           |             |          
|Stock options issued in exchange for services   | 72,300    | 26,845      | 99,145   
|rendered (Note C)                               |           |             |          
|                                                |           |             |          
|Stock options granted in exchange for deferred  | -         | -           | 5,500,000
|compensation                                    |           |             |          
|                                                |           |             |          
|Cash held in trust (Note A)                     | -         | 25,803      | -        
|                                               
|Common stock issued to founders                 | -         | -           | 10,000   



|See accompanying notes to unaudited condensed consolidated financial statements.F-13
|------------------------------------------------------------------------------------

---



|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2007NOTE A-SUMMARY OF ACCOUNTING POLICIESA summary of the significant accounting policies applied in the preparation of the accompanyingcondensed consolidated financial statements follows.GeneralThe accompanying unaudited condensed consolidated financial statements have been preparedin accordance with accounting principles generally accepted in the United States of America forinterim financial information and with the instructions to Form 10-QSB. Accordingly, they do notinclude all of the information and footnotes required by generally accepted accounting principlesfor complete financial statements.In the opinion of management, all adjustments (consisting of normal recurring accruals)considered necessary for a fair presentation have been included. Accordingly, the results fromoperations for the three and nine month period ended September 30, 2007, are not necessarilyindicative of the results that may be expected for the year ended December 31, 2007. Theunaudited condensed consolidated financial statements should be read in conjunction with theconsolidated December 31, 2006 financial statements and footnotes thereto included in theCompany's SEC Form 10-KSB.Business and Basis of PresentationHemis Corporation (the "Company") was incorporated under the laws of the State of Nevada onFebruary 9, 2005. On May 16, 2005, the Company incorporated Hemis Gold S.A. de C.V., awholly owned subsidiary in Mexico. The Company was organized for the purpose of acquiringand developing gold, silver and other mineral properties.On June 14, 2005, the Company incorporated under the laws of the State of Nevada a whollyowned subsidiary, Aurum Financial Services, Inc. (Aurum). In June 2006, the Companys Boardof Directors authorized to spin off Aurum. Effective July 1, 2006, Aurum is formally spun off and isno longer a subsidiary of the Company (Note F).In June 2006 the Company incorporated under the laws of Philippines a wholly owned subsidiary,Hemis Philippines Corporation. During the first quarter of 2007, the Company managementdecided to proceed with the plan of discontinuing operations of this subsidiary. Substantially allassets of the Philippines subsidiary were liquidated to pay off outstanding accounts payable andoffice expenses incurred during the first quarter of 2007 (Note F).The financial statements reflect the operating results and balance sheet items of the discontinuedoperations separately from continuing operations. Prior years have been restated. Operatingresults for the discontinued operations are described in Note F.In January 2006 the Company incorporated under the laws of the State of Nevada four whollyowned subsidiaries, Tecton Corporation, Stratos Gold Corporation, Allegra Corporation and SiriusCorporation.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|F-14
|----

---



|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE A-SUMMARY OF ACCOUNTING POLICIES (Continued)In September 2006, the Companys Board of Directors authorized to spin off Stratos GoldCorporation (Stratos), by issuing to the Companys shareholders as of September 1, 2006(Record Date) one share of Stratos for every 50 shares of the Companys common stock ownedby the shareholders. Effective September 1, 2006, Stratos is formally spun off and is no longer asubsidiary of the Company. Stratos had no operations prior to the spin-off (Note F). In December2006, the Companys Board of Directors authorized to spin off Tecton Corporation (Tecton), byissuing to the Companys shareholders as of December 1, 2006 (Record Date) one share ofTecton for every 100 shares of the Companys common stock owned by the shareholders.Effective December 1, 2006, Tecton is formally spun off and is no longer a subsidiary of theCompany. Tecton had no operations prior to the spin-off (Note F).In January 2007, the Companys Board of Directors authorized to spin off one of its wholly-ownedsubsidiary, Allegra Corporation (Allegra), by issuing to the Companys shareholders as ofJanuary 12, 2007 (Record Date) one share of Allegra for every 100 shares of the Companyscommon stock owned by the shareholders. Effective January 12, 2007, Allegra is formally spunoff and is no longer a subsidiary of the Company. Allegra had no operations prior to the spin-off(Note F).In January 2007, the Companys Board of Directors authorized to spin off one of its wholly-ownedsubsidiary, Sirius Corporation (Sirius), by issuing to the Companys shareholders as of January12, 2007 (Record Date) one share of Sirius for every 100 shares of the Companys commonstock owned by the shareholders. Effective January 12, 2006, Sirius is formally spun off and is nolonger a subsidiary of the Company. Sirius had no operations prior to the spin-off (Note F).The Company currently has only one active subsidiary, Hemis Gold S.A. de C.V. Significantintercompany transactions and accounts have been eliminated in consolidation.Cash and Cash EquivalentsFor purposes of the Statements of Cash Flows, the Company considers all highly liquid debtinstruments purchased with a maturity date of three months or less to be cash equivalents. Cashand cash equivalents consist of operating funds held in financial institutions and funds held by anentity partially owned and controlled by the Companys Chief Executive Officer and principalshareholder. The amount of funds held by the Chief Executive Officer at September 30, 2007 andDecember 31, 2006 was $0 and $51,617, respectively, and included in the cash and cashequivalents. The funds are used to pay for the Company's miscellaneous services and supplies.Cash Held in TrustAt September 30, 2007 and December 31, 2006, the Company had $0 and $23,468, respectively,of cash held in a lawyer's trust account and the Companys lawyer has authority to use the fundsto pay legal bills, consulting fees, and expenses. There was no formal escrow agreement, and thePresident of the Company has the authority to allocate the trust funds and to withdraw the fundsfrom trust at any time. The Company has excluded the cash held in trust from its cash and cashequivalents and accounted for as a current asset.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|F-15
|----

---



|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE A-SUMMARY OF ACCOUNTING POLICIES (Continued)Mineral Properties and Exploration CostsMineral property interests are composed of mineral properties owned by the Company and rightsto ownership of mineral properties which the Company can earn through cash or share payments,incurring exploration expenditures and combinations thereof. The Company accounts for itsmineral property interests whereby all acquisition and exploration costs are charged to expenseas incurred, and all property sales and option proceeds received are credited to operations. Whenthe existence of a mineral reserve on a property has been established, future acquisition,exploration and development costs will be capitalized for that property. After commercialproduction on a property commences, the net capitalized costs will be charged to futureoperations using the unit of production method based on estimated recoverable reserves on theproperty. Mineral properties are periodically assessed for impairment of value and any diminutionin value is charged to operations at the time of impairment. Should a property be abandoned, itsunamortized capitalized costs are charged to operations. As of September 30, 2007, all mineralclaim costs of carrying, retaining and developing unproven properties were charged to operationsin the period incurred.Mineral Property Reclamation ObligationsThe operations of the Company have been and may in the future be affected from time to time invarying degree by changes in environmental regulations, including those for future removal andsite restoration costs. The likelihood of new regulations and their overall effect upon the Companyare not predictable. The Company will provide for any reclamation costs in accordance withFinancial Accounting Standard No. 143 Accounting for Asset Retirement Obligations. It ismanagements opinion that the Company is not currently exposed to significant environmentaland reclamation liabilities and has recorded no reserve for environmental and reclamationexpenditures.Revenue RecognitionThe Company is in exploration stage and has not generated any revenues as of December 31,2005. The Company will recognize revenues pursuant to the guidance in Staff Accounting Bulletin(SAB) No. 104,Revenue Recognition, revenue will be
recognized when persuasive evidence ofan arrangement exists, delivery has occurred through an irrevocable transfer of metals tocustomers accounts or physical delivery of metals, the price is fixed or determinable, noobligations remain and collectibility is probable. Under the terms of certain sales contracts andpurchase orders received from customers, the Company will recognize revenue when the productis in a refined and saleable form and title passes, which is typically when the product istransferred from the account of the Company to the account of the customer. Under certain of itssales agreements, the Company may instruct a third-party refiner to transfer metal from theCompanys account to the customers account; at this point, the Companys account at the thirdparty refinery is reduced and the purchasers account is increased by the number of ounces ofmetal sold. These transfers are irrevocable and the Company has no further responsibility for thedelivery of the metals. Under other sales agreements, physical conveyance may occur by theCompany arranging for shipment of metal from the third party refinery to the purchaser. In thesecases, revenue is recognized at the point when delivery occurs and title passes to the purchaser.
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|F-16
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE A-SUMMARY OF ACCOUNTING POLICIES (Continued)Sales discounts will be recognized when the related revenue is recorded. The Company willclassify any cash sales discounts as a reduction in revenue. Sales of metals products solddirectly to smelters will be recorded when title and risk of loss transfer to the smelter at currentspot metals prices. Recorded values will be adjusted monthly until final settlement. Sales of metalin products tolled, rather than sold to smelters, will be recorded at contractual amounts when titleand risk of loss transfer to the buyer.ReclassificationsCertain reclassifications have been made in prior years financial statements to conform toclassifications used in the current year.Recent accounting pronouncementsIn February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assetsand Financial Liabilities. SFAS 159 permits entities to choose to measure many financialinstruments, and certain other items, at fair value. SFAS 159 applies to reporting periodsbeginning after November 15, 2007. The adoption of SFAS 159 is not expected to have amaterial impact on the Companys financial condition or results of operations.NOTE B - CAPITAL STOCKThe Company was authorized to issue 75,000,000 shares of common stock with par value of$.001 per share. In April 2006, the Companys Board of Directors passed a resolution to increasethe Companys authorized shares of common stock from 75,000,000 shares to 150,000,000shares with a par value of $.001 per share. The Company has 73,356,041 and 20,309,373 sharesof common stock issued and outstanding at September 30, 2007 and December 31, 2006,respectively.On May 1 2005, the Company issued an aggregate of 10,000,000 shares of common stock tofounders. The common shares issued were valued at par value of the Companys common stock.In May 2005, the Company issued an aggregate of 30,000 shares of common stock in exchangefor cash at $0.55 per share.In July 2005, the Company issued an aggregate of 500 shares of common stock in exchange forcash at $0.55 per share. The Company also issued an aggregate of 100,000 shares of commonstock in exchange for services rendered at $0.55 per share, which approximated the fair value ofshares issued during the period services were rendered. Compensation costs of $55,000 werecharged to operations during the year ended December 31, 2005. In August 2005, the Companyissued an aggregate of 458,183 shares of common stock in exchange for cash at $0.55 pershare. The Company incurred commission costs of $25,200 in connection with the issuance ofthese common shares.
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|F-17
|----

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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE B - CAPITAL STOCK (Continued)In September 2005, the Company issued an aggregate of 100,000 shares of common stock inexchange for services rendered at $0.55 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $55,000 were chargedto operations during the year ended December 31, 2005.In December 2005, the Company received proceeds of $430,625, net of $7,150 of commission,for 795,957 shares of common stock subscribed at $0.55 per share. The common sharessubscribed were issued to subscribers in the first quarter of 2006.In January 2006, the Company issued an aggregate of 593,638 shares of common stock inexchange for common stock subscribed in December 2005.In February 2006, the Company issued an aggregate of 274,795 shares of common stock at$0.55 per share in exchange for $93,125 of common stock subscribed in December 2005 andproceeds of $48,012, net of costs and fees.In March 2006, the Company issued an aggregate of 164,337 shares of common stock at $0.55per share in exchange for $11,000 of common stock subscribed in December 2005 and proceedsof $68,549, net of costs and fees.In May 2006, the Company issued an aggregate of 480,000 shares of common stock at $0.55 pershare in exchange for proceeds of $240,625, net of costs and fees, and stock subscriptionreceivable in the amount of $3,300. The Company incurred commission costs of $20,075 inconnection with the issuance of these common shares.In May 2006, the Company issued an aggregate of 25,000 shares of common stock at $0.75 pershare in exchange for proceeds of $16,875, net of costs and fees. The Company incurredcommission costs of $1,875 in connection with the issuance of these common shares.In May 2006, the Company issued an aggregate of 1,070,880 shares of common stock inexchange for services rendered at $0.55 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $588,984 were chargedto operations during the year ended December 31, 2006.In June 2006, the Company issued an aggregate of 308,772 shares of common stock at $0.55per share in exchange for proceeds of $164,325, net of costs and fees. The Company incurredcommission costs of $5,500 in connection with the issuance of these common shares.In June 2006, the Company issued an aggregate of 150,000 shares of common stock at $0.75per share in exchange for proceeds of $102,379, net of costs and fees. The Company incurredcommission costs of $10,121 in connection with the issuance of these common shares.In June 2006, the Company issued an aggregate of 50,000 shares of common stock in exchangefor services rendered at $0.55 per share, which approximated the fair value of shares issuedduring the period services were rendered. Compensation costs of $27,500 were charged tooperations during the year ended December 31, 2006.
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|F-18
|----

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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE B - CAPITAL STOCK (Continued)In June 2006, the Company issued an aggregate of 125,000 shares of common stock inexchange for services rendered at $0.75 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $93,750 were chargedto operations during the year ended December 31, 2006. In August 2006, the Company issued anaggregate of 1,033,730 shares of common stock at $0.75 per share in exchange for proceeds of$700,854 net of costs and fees. The Company incurred commission costs of $74,444 inconnection with the issuance of these common shares.In August 2006, the Company issued an aggregate of 5,000 shares of common stock inexchange for services rendered at $0.75 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $3,750 were charged tooperations during the year ended December 31, 2006. In September 2006, the Company issuedan aggregate of 961,428 shares of common stock at $0.75 per share in exchange for proceeds of$625,050 net of costs and fees. The Company incurred commission costs of $96,021 inconnection with the issuance of these common shares.In October 2006, the Company issued an aggregate of 244,000 shares of common stock at $0.75per share in exchange for proceeds of $167,775 net of costs and fees. The Company incurredcommission costs of $15,225 in connection with the issuance of these common shares.In October 2006, the Company issued an aggregate of 1,500,000 shares of common stock inexchange for services rendered at $0.75 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $1,125,000 werecharged to operations during the year ended December 31, 2006.In October 2006, the Company issued 25,000 shares of common stock in exchange forexploration expenditures pursuant to an agreement dated September 7, 2006 (Note E). Theshares issued were valued at $0.75 per share. Exploration expenditures of $18,750 were chargedto operations during the year ended December 31, 2006.In October 2006, the Company issued an aggregate of 357,420 shares of common stock at $0.95per share in exchange for proceeds of $312,320 net of costs and fees. The Company incurredcommission costs of $27,229 in connection with the issuance of these common shares.In October 2006, the Company issued an aggregate of 25,000 shares of common stock inexchange for exploration expenditures pursuant to an agreement dated June 19, 2006 (Note E).The shares issued were valued at $0.95 per share. Exploration expenditures of $23,750 werecharged to operations during the year ended December 31, 2006.In November 2006, the Company issued an aggregate of 52,614 shares of common stock at$0.75 per share in exchange for proceeds of $31,960 net of costs and fees. The Companyincurred commission costs of $7,500 in connection with the issuance of these common shares.
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|F-19
|----

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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE B - CAPITAL STOCK (Continued)In November 2006, the Company issued an aggregate of 295,528 shares of common stock at$0.95 per share in exchange for proceeds of $260,608 net of costs and fees. The Companyincurred commission costs of $20,143 in connection with the issuance of these common shares.In November 2006, the Company issued an aggregate of 1,310,180 shares of common stock inexchange for services rendered at approximately $0.95 per share, which approximated the fairvalue of shares issued during the period services were rendered. Compensation costs of$1,244,245 were charged to operations during the year ended December 31, 2006.In December 2006, the Company issued an aggregate of 15,789 shares of common stock at$0.95 per share in exchange for proceeds of $13,500, net of costs and fees. The Companyincurred commission costs of $1,500 in connection with the issuance of these common shares.In December 2006, the Company issued an aggregate of 549,150 shares of common stock at$1.20 per share in exchange for proceeds of $611,600, net of costs and fees. The Companyincurred commission costs of $12,400 in connection with the issuance of these common shares.In December 2006, the Company issued an aggregate of 3,429 shares of common stock inexchange for services rendered at $1.20 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $4,111 were charged tooperations during the year ended December 31, 2006. During the year ended December 31,2006, the Company received additional net proceeds in the amount of $1,330,938 for 1,158,332shares of common stock subscribed. These shares were issued in January 2007.In January 2007, the Company issued an aggregate of 1,154,862 shares of common stock inexchange for $1,326,774 of common stock subscribed during the year ended December 2006.In January 2007, the Company issued an aggregate of 4,100 shares of common stock inexchange for commissions in connection with common stock subscribed during the year endedDecember 31, 2006.In January 2007, the Company paid $33,582 of commission in connection with common stocksubscribed during the year ended December 2006.In January 2007, the Company issued an aggregate of 115,091 shares of common stock at $1.20per share in exchange for proceeds of $108,000, net of costs and fees. The Company incurredcommission costs of $30,109 in connection with the issuance of these common shares.In January 2007, the Company issued an aggregate of 10,000,000 shares of common stock at$.001 per share in exchange for proceeds of $10,000, for the exercise of stock options (Note C).In January 2007, the Company issued an aggregate of 42,500 shares of common stock inexchange for services rendered at $1.20 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $51,000 were chargedto operations during the nine months ended September 30, 2007.
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|F-20
|----

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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE B - CAPITAL STOCK (Continued)On January 17, 2007 the Company declared a stock dividend in the amount of one commonshare of the Company to be issued for every one common share of the Company issued as of theRecord Date of January 17, 2007. The aggregate number of common shares issued as a stockdividend 31,625,926. This excluded 50,000 shares of common stock that should been cancelledprior to the date of dividend. The Company corrected this error and cancelled the shares in March2007.In January 2007, the Company issued an aggregate of 3,470 shares of common stock inexchange for $4,164 of common stock subscribed during the year ended December 31, 2006.In February 2007, the Company issued an aggregate of 101,770 shares of common stock at$1.20 per share in exchange for proceeds of $108,000, net of costs and fees. The Companyincurred commission costs of $14,124 in connection with the issuance of these common shares.In February 2007, the Company issued an aggregate of 607,500 shares of common stock inexchange for services rendered at $1.20 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $729,000 were chargedto operations during the nine months ended September 30, 2007.In February 2007, the Company issued an aggregate of 166,800 shares of common stock inexchange for proceeds of $100,080, net of costs and fees. The subscription agreement wasentered into in December 2006 for 83,400 shares at $1.20 per share. Due to an administrativedelay this subscription agreement was not processed until February 2007. In February 2007, theCompany agreed to issue additional 83,400 shares of common stock to the investors at no coststo compensate the investors for the delay.In February 2007, the Company issued an aggregate of 43,600 shares of common stock inexchange for commissions in connection with common stock subscribed during the year endedDecember 31, 2006.In February 2007, the Company issued an aggregate of 10,000 shares of common stock inexchange for services rendered at $1.90 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $19,000 were chargedto operations during the nine months ended September 30, 2007.In March 2007, the Company issued an aggregate of 222,000 shares of common stock at $.65per share in exchange for proceeds of $129,200, net of costs and fees. The Company incurredcommission costs of $15,100 in connection with the issuance of these common shares.
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|F-21
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE B - CAPITAL STOCK (Continued)In March 2007, the Company issued an aggregate of 5,063,636 shares of common stock to aconsultant in exchange for services rendered and to be rendered from February 2007 throughFebruary 2008. The common shares issued were valued at $1.10 per share, which was estimatedto be approximate the fair value of the Companys common shares during the period covered bythe consulting agreement. The Company amortized and charged to operations compensationexpense of $3,514,398 during the nine months ended September 30, 2007. The unamortizedportion of $2,055,602 was accounted for as deferred compensation and will be amortized overthe remaining period that the services will be provided. In the event that the Companys stockprice increases significantly in future periods, the Company will revalue the stock issued andadditional compensation will be charged to operations.In March 2007, the Company issued an aggregate of 3,000,000 shares of common stock to aconsultant in exchange for services rendered and to be rendered from March 13, 2007 throughMarch 13, 2009. The common shares issued were valued at $1.50 per share, which wasestimated to be approximate the fair value of the Companys common shares during the periodcovered by the consulting agreement. The Company amortized and charged to operationscompensation expense of $1,239,041 during the nine months ended September 30, 2007. Theunamortized portion of $3,260,959 was accounted for as deferred compensation and will beamortized over the remaining period that the services will be provided. In the event that theCompanys stock price increases significantly in future periods, the Company will revalue thestock issued and additional compensation will be charged to operations.In March 2007, the Company issued an aggregate of 10,000 shares of common stock inexchange for services rendered at $1.30 per share, which approximated the fair value of sharesissued during the period services were rendered. Compensation costs of $13,000 were chargedto operations during the nine months ended September 30, 2007.In March 2007, the Company issued an aggregate of 40,000 shares of common stock to aconsultant in exchange for services rendered and to be rendered through October 1, 2008. Thecommon shares issued were valued at $1.34 per share, which was estimated to be approximatethe fair value of the Companys common shares during the period covered by the consultingagreement. The Company amortized and charged to operations compensation expense of$27,901 during the nine months ended September 30, 2007. The unamortized portion of $25,699was accounted for as deferred compensation and will be amortized over the remaining period thatthe services will be provided. In the event that the Companys stock price increases significantlyin future periods, the Company will revalue the stock issued and additional compensation will becharged to operations.In March 2007, the Company issued an aggregate of 36,604 shares of common stock inexchange for commissions in connection with common stock subscribed.In April 2007, the Company issued an aggregate of 14,400 shares of common stock at $1.00 pershare in exchange for proceeds of $13,000, net of costs and fees. The Company incurredcommission costs of $1,400 in connection with the issuance of these common shares.
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|F-22
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE B - CAPITAL STOCK (Continued)In April 2007, the Company issued an aggregate of 12,500 shares of common stock to aconsultant in exchange for services rendered. The common shares issued were valued at $1.40per share, which approximated the fair value of shares issued during the period services wererendered. Compensation costs of $17,500 were charged to operations during the nine monthsended September 30, 2007.In April 2007, the Company issued an aggregate of 20,000 shares of common stock to aconsultant in exchange for services rendered. The common shares issued were valued at $.77per share, which approximated the fair value of shares issued during the period services wererendered. Compensation costs of $15,400 were charged to operations during the nine monthsended September 30, 2007.In May 2007, the Company issued an aggregate of 17,500 shares of common stock at $1.00 pershare in exchange for proceeds of $15,750, net of costs and fees. The Company incurredcommission costs of $1,750 in connection with the issuance of these common shares.In May 2007, the Company issued an aggregate of 56,250 shares of common stock at $.80 pershare in exchange for proceeds of $41,000, net of costs and fees. The Company incurredcommission costs of $4,000 in connection with the issuance of these common shares.In May 2007, the Company issued an aggregate of 500,000 shares of common stock to aconsultant in exchange for services rendered and to be rendered through April 10, 2008. Thecommon shares issued were valued at $1.05 per share, which was estimated to be approximatethe fair value of the Companys common shares during the period covered by the consultingagreement. The Company amortized and charged to operations compensation expense of$248,836 during the nine months ended September 30, 2007. The unamortized portion of$276,164 was accounted for as deferred compensation and will be amortized over the remainingperiod that the services will be provided. In the event that the Companys stock price increasessignificantly in future periods, the Company will revalue the stock issued and additionalcompensation will be charged to operations.In June 2007, the Company issued an aggregate of 112,500 shares of common stock at $.80 pershare in exchange for proceeds of $81,000, net of costs and fees. The Company incurredcommission costs of $9,000 in connection with the issuance of these common shares.In June 2007, the Company issued an aggregate of 394,780 shares of common stock to aconsultant in exchange for services rendered. The common shares issued were valued at $.80per share, which approximated the fair value of shares issued during the period services wererendered. Compensation costs of $315,824 were charged to operations during the nine monthsended September 30, 2007.
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|F-23
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE B - CAPITAL STOCK (Continued)In July 2007, the Company issued an aggregate of 315,000 shares of common stock at $.60 pershare in exchange for proceeds of $189,000. In July 2007, the Company issued an aggregate of400,000 shares of common stock in exchange for services rendered at $.41 per share, whichapproximated the fair value of shares issued during the period services were rendered. TheCompany also issued an aggregate of 1,100 shares of common stock in exchange for servicesrendered at $.40 per share, which approximated the fair value of shares issued during the periodservices were rendered. In July 2007, the Company issued an aggregate of 75,000 shares ofcommon stock for resource property at $.41 per share, which approximated the fair value ofshares issued during the period. In July 2007, the Company issued an aggregate of 100,000shares of common stock for dispute settlement at $.40 per share, which approximated the fairvalue of shares issued during the period.In August 2007, the Company issued an aggregate of 579,125 shares of common stock inexchange for cash proceeds at $.40 per share.In August 2007, the Company issued an aggregate of 440,000 shares of common stock inexchange for services rendered at $.41 per share, which approximated the fair value of sharesissued during the period services were rendered.In August 2007, the Company issued an aggregate of 30,000 shares of common stock inexchange for commissions in connection with common stock subscribed.In August 2007 we issued 42,000 shares of common stock at $0.80 per share. The subscriptionagreement was accepted on June 14, 2007 but due to an administrative error was not processeduntil August.In September 2007 we issued warrants to purchase 21,000 shares of our common stock at anexercise price of $1.00, exercisable for a period of 2 years from June 14, 2007 or 60 days after anotice of warrant expiration is mailed out by the Company.Subsequent to period ended September 2007 we issued 20,000 shares of common stock in exchangefor services renderedat $0.17 per share, which approximated the fair value of share issued during the 
period serviceswere rendered.Subsequent to period ended September 2007 we issued an aggregate of 500,000 shares of common 
stock in exchange forcash proceeds at $0.13 per share.Subsequent to period ended September 2007 we issued an aggregate of 691,664 shares of our common 
stock in exchangefor cash proceeds at $0.25 per share.
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|F-24
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE C - STOCK OPTIONSThe following table summarizes the changes in options outstanding and the related prices for theshares of the Company's common stock issued to its officers.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|         | Options Outstanding |              | Options Exercisable       
|-------- | ------------------- | ------------ | --------------------------
|         |                     | Weighted     |                           
|         |                     | Average      |                           
|         |                     | Remaining    | Weighted                  
|Exercise | Number              | Contractual  | Average                   
|Prices   | Outstanding         | Life (Years) | Exercise Price Exercisable
|        
|$ 1.50   | 50,000              | 4.50         | $ 1.50                    
|        
|$ 1.00   | 50,000              | 3.50         | $ 1.00                    
|        
|         | 100,000             | 4.00         | $ 1.25                    
|         |                    



|Transactions involving stock options issued to employees are summarized as follows:
|-----------------------------------------------------------------------------------

|                                     |              | Weighted 
|------------------------------------ | ------------ | ---------
|                                     | Number of    | Price Per
|                                     |              | Share    
|                                    
|Balance at February 9, 2005 (date of | -            | $ -      
|Granted                              | 10,000,000   | 0.001    
|                                    
|Exercised                            | -            |          
|Cancelled or expired                 | -            | -        
|                                    
|Outstanding at December 31, 2005     | 10,000,000   | $ 0.001  
|                                     |             
|Granted                              | 50,000       | 1.00     
|                                    
|Exercised                            | -            | -        
|Cancelled or expired                 | -            | -        
|                                    
|Outstanding at December 31, 2006     | 10,050,000   | $ 0.01   
|                                     |             
|Granted                              | 50,000       | 1.50     
|                                    
|Exercised                            | (10,000,000) | 0.001    
|Cancelled or expired                 | -            | -        
|Outstanding at September 30, 2007    | 100,000      | $1.25    



|
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|F-25
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE C  STOCK OPTIONS (Continued)In May 2005, the Company granted an aggregate of 10,000,000 stock options to its officers inexchange for services provided and to be provided over the period of 5 years pursuant to theoption agreements. The Company concluded that these officers were not employees as definedunder Statements of Financial Accounting Standards (SFAS)123 R: Share Based Payments andunder the definition of common law and Internal Revenue Service regulations, Revenue Rulings57-246, 68-597 and 87-41, and the Internal Revenue Services' Employment Tax Handbook. Theexercise prices of the stock options granted were at par. The options vested in full at grant andare exercisable anytime within 5 years from the grant date. The options granted are intended toretain the services of these officers over a five-year service period, and the Company does notintend to issue more options to these officers until the 5-year service term expires in year 2010, atwhich time the performance will be reviewed and additional rewards will be determined. TheCompany accounted for the stock options at the fair market value of the Company's commonstock. Deferred compensation cost in the amount of $5,500,000 was recorded as a reduction ofstockholders' equity and will be amortized over the 5-year period of services to be provided by theofficers.Compensation expense of $822,740 was charged to operations for the nine months period endedSeptember 30, 2007 and 2006. Should the officers terminate the service agreements within 5years, the Company has no rights to cancel the options issued and will charged all unamortizedcosts to operations at that time. The terms of these options were required by the officers at thetime the option and service agreements were entered into, and the Company determined that itwas necessary to agree to these terms in order to retain the services of the officers. In January2007, the officers exercised the stock options in exchange for an aggregate of 10,000,000 sharesof the Companys common stock (Note B).In January 2006, the Company granted an aggregate of 50,000 stock options to a consultant inexchange for services rendered. The estimated value of the stock options vested during the yearended December 31, 2006 was determined using the Black-Scholes option pricing model and thefollowing assumptions: expected option life of 5 years, a risk free interest rate of 5.125%, adividend yield of 0% and volatility of 208%. Compensation expense of $26,845 was charged tooperations during the year ended December 31, 2006.In January 2007, the Company granted an aggregate of 50,000 stock options to a consultant inexchange for services rendered. The estimated value of the stock options vested during the ninemonths period ended September 30, 2007 was determined using the Black-Scholes optionpricing model and the following assumptions: expected option life of 5 years, a risk free interestrate of 4.50%, a dividend yield of 0% and volatility of 182%. Compensation expense of $72,300was charged to operations during the nine months ended September 30, 2007.
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|F-26
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE D - PUT AGREEMENTIn October 2006 the Company entered into put agreements with certain shareholders granting theshareholders an option to put an aggregate of 2,311,346 shares of common stock to theCompany, when the Company became eligible for trading on the NASDAQ-operated Over-the-Counter Bulletin Board (OTCBB), for a total price of $1,503,392.The Company accounted for the termination agreement in accordance withStatement ofFinancial Accounting Standards No. 150, Accounting for Certain Financial Instruments withCharacteristics of both Liabilities and Equity (SFAS 150), and classified the fair value attributableto the put option as an accrued liability, as the put agreement embodies an obligation torepurchase the Company's equity shares which would require the Company to settle theagreement by transferring its assets. The put option was initially measured at its fair value of$949,392 as of the date of the agreement.Assumptions used to estimate the fair value of the put option are as follows:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Risk-free interest rate | 4.50 %   
|----------------------- | ---------
|Dividend yield          | -        
|                       
|Volatility              | 165 %    
|Time to expiration      | 0.35 year



|Equity was reduced by the original value of the shares, being $515,852, with the remaining valueof $433,540 being charged to other expense. The fair value of the put option is determined eachreporting period with changes in the fair value recorded as other income or expense. AtDecember 31, 2006, the fair value of the put option was $636,167, accordingly a gain of $313,224in connection with the valuation adjustment on the put agreement was recorded at December 31,2006. On February 8, 2007, the Company became eligible for trading on the OTCBB, and the putagreements were exercised. The fair value of the put option was $656,956 on February 8, 2007,accordingly a loss of $20,789 in connection with the valuation adjustment on the put agreementwas recorded on February 8, 2007. Upon exercise of the put agreements in February 2007, theCompany canceled 2,311,346 shares of common stock.
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|F-27
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE E  COMMITMENTS AND CONTINGENCIESManagement AgreementsThe Company has management agreements with its President and Chief Executive Officer, ChiefFinancial Officer and Secretary, and Vice President Operations and Geologist. The President,CEO and CFO are all also the Companys significant shareholders. The Agreements provideterms of compensation and may be terminated at any time with 14 days notice been delivered bythe party.The Company has also entered into various consulting agreements, all of which provide terms ofcompensation and may be terminated within various time scales (all of which are less than 14days) being delivered by either party.Advisory Board AgreementsThe Company has Advisory Board Agreements with two Board members. The Agreementsprovided a term of two years, and may be terminated at any time with 14 days notice beendelivered by the party.Acquisition of Mining RightsOn December 20, 2005 the Company entered into a Memo of Understanding, and subsequentlya formal option agreement on June 19, 2006 with Corex Gold Corp. (Corex) to acquire SantaRita Claim property located in Zacatecas, Mexico. The option agreement had no initial costs, andthe Company has the right to acquire a 49% interest in the Santa Rita property upon incurringexploration expenses as agreed upon. Pursuant to the agreement, the Company committed toexploration expenditures of minimum $200,000 over the first 12 months at which time theCompany shall have the rights to withdraw, without earning any interest. The Company will alsoissue 25,000 treasury shares to Corex upon commencement of Phase 1 of the agreement. The25,000 shares were issued to Corex in October 2006 (Note B). As of December 31, 2005, theCompany has incurred and charged to operations, $22,519 of expenditures pursuant to thisagreement. On the 1stanniversary of the agreement, the
Company would commit to explorationexpenditures of minimum $300,000 over additional 12 months at which the Company will issue75,000 treasury shares to Corex (which has been issued). On the 2ndanniversary, Corex wouldcommit to exploration expenditures of minimum $450,000 over additional 12 months at whichtime the Company will issue 100,000 treasury shares to Corex. The Company may terminate theoption agreement at any time hereafter without further obligation or liability to Corex exceptrespecting payments, which have not at such time made to Corex in relation to milestones thathave been achieved prior to the time of termination. During the year ended December 31, 2006,the Company incurred and charged to operations additional exploration expenditures in theamount of $31,177.On January 29, 2007, the Company entered into a letter agreement with Corex, and entered intoan amending extension agreement with Corex dated October 3, 2007 (together the 2007 OptionAgreement). The 2007 Option Agreement replaces the option agreement dated June 19, 2006,whereby the Companys interest in the Santa Rita is changed to 49% interest whatever Corexholds in Santa Rita property as opposed to a 49% interest in the Santa Rita property itself.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|F-28
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE E  COMMITMENTS AND CONTINGENCIES (Continued)Acquisition of Mining Rights (continued)During the nine months ended September 30, 2007, the Company incurred and charged tooperations exploration expenditures in the amount of $200,000.On December 31, 2005, the Company's wholly owned subsidiary, Hemis Gold S.A. de C.V.,entered into an option agreement to acquire a 67.5% interest in the El Tigre located in theMunicipality of Sahuaripa, Sonora, Mexico. The option agreement had no initial costs. If Companyincurred $200,000 of exploration expenditures within 548 days from the date of the agreement,the Company will acquire a 67.5 % interest in the El Tigre Concession and the PorvenirConcession mineral claims. As of December 31, 2005, the Company has not incurredexpenditures pursuant to this agreement. During the year ended December 31, 2006, theCompany incurred and charged to operations additional exploration expenditures in the amountof $140,227. During the nine months ended September 30, 2007, the Company incurred andcharged to operations additional exploration expenditures in the amount of $1,200,175.On September 7, 2006 the Company signed an option agreement to acquire a 75% interest in themineral rights to the La Centela property. The agreement was amended on October 4, 2006. Theoption consists of two parts; an option for the first 70% and an option for a further 5%. To acquirethe first 70% of the mining rights the Company must pay cash consideration of $500,000 andissue 500,000 common shares to the mineral rights owner, spend at least $2,000,000 inexploration expenses, all prior to October 5, 2010, pursuant to a scheduled payment plandescribed below, and make a final share payment of 1 share for every ounce of gold theCompany identifies, if the Company identify any gold, to a maximum of 10,000,000 shares. If theCompany exercises the option to acquire 75% of the mineral rights, the Company may thenacquire a further 5% of the total claim by making a cash payment of $1,000,000.To exercise the first 70% of the mining rights, the Company must deliver the following stock andpayments to the mining concession owners, and make the following exploration expenditures:pay $25,000 and issue 25,000 common shares by October 14, 2006 (Note B)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

- by October 5, 2007, pay an additional $50,000 (which has been done), issue 50,000 more common shares and spend $200,000 on exploration expenses;
- by October 5, 2008, pay an additional $75,000, issue 75,000 more common shares and spend $200,000 on additional exploration expenses;
- by October 5, 2009, pay an additional $100,000, issue 100,000 more common shares and spend an additional $200,000 on exploration expenses;
- by October 5, 2010, pay an additional $250,000, issue 250,000 more common shares and spend an additional $3,200,000 on exploration expenses;
- issuance of one common shares for every once of gold the Company estimates and identify, up to a maximum of 10,000,000 shares, if the Company can identify any gold at the time of making our final payments to exercise the option.



|F-29
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE E  COMMITMENTS AND CONTINGENCIES (Continued)Acquisition of Mining Rights (continued)On January 8, 2007 the Company entered into an agreement with Aspen Exploration Corporation(Aspen) pursuant to which Aspen has assigned offshore prospecting permit applications in anarea of the Cook Inlet, Alaska to the Company. During the nine months ended September, 302007, the Company incurred and charged to operations additional exploration expenditures in theamount of $359,350.On March 13, 2007 the Company entered into an option agreement with Stacs GmbH (Stacs)whereby Stacs has agreed to grant Hemis the exclusive option to acquire the 100% interest in theexploration licenses and mineral claims comprising the Wolfe Creek and Covenant propertieslocated in British Columbia, Canada (the Property) subject to a 3% royalty.On April 19, 2007 the Company won a raffle to determine which of several concurrent applicantswould be able to proceed with an application to obtain a mining concession on La Casita. LaCasita is a mineral exploration concession which is located close to the Company's El Tigre,Porvenir and La Centela concessions. The concession will be reserved for the Company by theMexican government pending the Company's application and if all of the formalities are compliedwith (and all the correct technical information is supplied), the Company anticipate that it will begranted a 100% interest in the La Casita mineral concession within two to six months. TheCompany aims to integrate exploration of the La Casita concessions with the ongoing mappingand sampling across the El Tigre project area.LitigationAs of September 30, 2007, the Company is not a party to ant legal proceedings, nor are there anyjudgments against the Company. However, the Company may be subject to legal proceedingsand claims, which arise in the ordinary course of its business. Although occasional adversedecisions or settlements may occur, the Company believes that the final disposition of suchmatters should not have a material adverse effect on its financial position, results of operations orliquidity.Warrant / Option AgreementOn May 15, 2005, the Company entered into an Option Agreement with its Chief Geologist.Pursuant to the Option Agreement, the Company agreed to issue 1,000,000 stock options toChief Geologist. The exercise price of the options is $0.001 per share, and shall expire 60 daysafter the termination of the consulting agreement between the Company and COO. The grant andvesting of the stock options is contingent upon the Company acquiring rights to a property onwhich a gold deposit of at least 500,000 ounces of gold is proven. As of September 30, 2007, theCompany has not acquired rights to properties as defined and the stock options have not beengranted or vested. On September 6, 2007 the Company issued warrants to purchase 21,000shares of its common stock at an exercise price of $1.00 per share to a non-US investor, Thewarrants are exercisable for a period of 2 years from June 14, 2007 or 60 days after a notice ofwarrant expiration is mailed out by the Company.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|F-30
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE F  DISCONTINUED OPERATIONSAurum Financial Services, Inc.In June 2006, the Companys Board of Directors authorized to spin off one of its wholly-ownedsubsidiary, Aurum Financial Services, Inc. (Aurum), by issuing to the Companys shareholdersas of July 1, 2006 (Record Date) one share of Aurum for every 10 shares of the Companyscommon stock owned by the shareholders. Effective July 1, 2006, Aurum is formally spun off andis no longer a subsidiary of the Company. Aurum was incorporated in June 2006, and had nooperations prior to the second quarter of 2006. In accordance with APB Opinion No. 30,Reporting the Results of Operations -- Reporting the Effects of Disposal of a Segment of aBusiness, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions, thefinancial statements reflect the operating results and balance sheet items of the discontinuedoperations, Aurum, separately from continuing operations.Aurum had no assets at December 31, 2006. During the second quarter of 2006, the Companytransferred $50,023 of cash to Aurum for working capital purposes. Aurum incurred $22,128 ofoffice expenses during the quarter ended September 30, 2006. Prior to the spin-off, Aurum had$10,000 of prepaid expenses and $17,895 of cash in bank.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|The following summarizes the disposition of the Aurum: |           
|------------------------------------------------------ | ----------
|                                                       |           
|                                                      
|Net assets disposed of                                 | $ (27,895)
|                                                      
|Net loss on disposal of Aurum                          | $ (27,895)
|                                                      



|Operating results for the discontinued operations for the period ended September 30, 2007 and2006 and for the period from February 9, 2005 (date of inception) through September 30, 2007were:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                        | For the nine | For the nine | For the period     | 
|--------------------------------------- | ------------ | ------------ | ------------------ | 
|                                        | months       | months       | from February 9,  
|                                        | ended        | ended        | 2005 (date of      | 
|                                        | September    | September    | inception) through
|                                        | 30,          | 30           |                    | 
|                                        | 2007         | 2006         | September 30,      | 
|                                        |              |              | 2007               | 
|                                        |             
|Revenue                                 | $ -          | $ -          | $ -                | 
|Expenses                                | -            | -            | 22,128)            | 
|                                        |             
|Net (loss) before tax                   | -            | -            | (22,128)           | 
|Income tax provision (benefit)          | -            | -            | -                  | 
|                                        |             
|Net loss                                | -            | -            | (22,128)           | 
|                                        |             
|                                       
|Net loss on the disposition of Aurum,   | -            | -            | (27,895)           | 
|before                                  |              |              |                    | 
|Income tax provision (benefit)          | -            | -            | -                  | 
|                                        |             
|Loss on disposition of Aurum            | -            | -            | (27,895)           | 
|Loss on discontinued operations, net of | $ -          | $ -          | $ (50,023)         | 
|tax                                     |              |              |                    | 



|F-31
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE F  DISCONTINUED OPERATIONS (Continued)Aurum Financial Services, Inc. (Continued)There were no depreciation and amortization expense included in all period presented.Subsequent to the spin-off of Aurum, the Company has agreed to grant Aurum a loan of$125,000 as business start up costs and to promote their activities. At December 31, 2006, theCompany advanced $95,000 to Aurum. Aurum has repaid the loan in full as of September 30,2007. During the nine months ended September 30, 2007 the Company received loans of$225,000 from Aurum. The loan is non-interest bearing and is due on demand. Two of theCompanys directors have voting controls of Aurum.Stratos Gold CorporationIn September 2006, the Companys Board of Directors authorized to spin off one of its wholly-owned subsidiary, Stratos Gold Corporation (Stratos), by issuing to the Companysshareholders as of September 1, 2006 (Record Date) one share of Stratos for every 50 sharesof the Companys common stock owned by the shareholders. Effective September 1, 2006,Stratos is formally spun off and is no longer a subsidiary of the Company. Stratos had nooperations prior to the spin-off in September 2006. During the nine months ended September 30,2007 the Company received loans of $135,000 from Stratos. The loan is non-interest bearing andis due on demand. The Companys 2 directors have voting controls of Stratos.Tecton CorporationIn December 2006, the Companys Board of Directors authorized to spin off Tecton Corporation(Tecton), by issuing to the Companys shareholders as of December 1, 2006 (Record Date)one share of Tecton for every 100 shares of the Companys common stock owned by theshareholders. Effective December 1, 2006, Tecton is formally spun off and is no longer asubsidiary of the Company. Tecton had no operations prior to the spin-off. Subsequent to thespin-off of Tecton, the Company advanced Tecton working capital of $50,000. During the ninemonths ended September 30, 2007 the Company received loans of $920,601 from Tecton. Theloan is non-interest bearing and is due on demand. Two of the Companys directors have votingcontrols of Tecton.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|F-32
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE F  DISCONTINUED OPERATIONS (Continued)Sirius CorporationOn January 12, 2007, the Companys Board of Directors authorized to spin off one of its wholly-owned subsidiary, Sirius Corporation (Sirius), by issuing to the Companys shareholders as ofJanuary 12, 2007 (Record Date) one share of Sirius for every 100 shares of the Companyscommon stock owned by the shareholders. Effective January 12, 2006, Sirius is formally spun offand is no longer a subsidiary of the Company. Sirius had no operations prior to the spin-off.Subsequent to the spin-off of Sirius, the Company advanced Sirius working capital of 10,000. Asof March 31, 2007 and December 31, 2006, advances to Sirius amounted $10,000 and $0,respectively. The advance is non-interest bearing and is due on demand. The Companys 2directors have voting controls of Sirius. Additionally, the Company acquired 1,000,000 commonshares of Sirius Corporation at $0.001 per share. This represents approximately 2% of Siriusstotal outstanding shares. The Company does not have the ability to exercise significant influenceover operating and financial policies of Sirius. Considerable management judgment is necessaryto estimate fair value of the shares purchased. Sirius has minimal operations as of September 30,2007 and future development is highly uncertain, the Company has accordingly recorded acharge of $1,000 for the impairment of the restricted stock purchased.Allegra CorporationOn January 12, 2007, the Companys Board of Directors authorized to spin off one of its wholly-owned subsidiary, Allegra Corporation (Allegra), by issuing to the Companys shareholders as ofJanuary 12, 2007 (Record Date) one share of Allegra for every 100 shares of the Companyscommon stock owned by the shareholders. Effective January 12, 2007, Allegra is formally spunoff and is no longer a subsidiary of the Company. Allegra had no operations prior to the spin-off.Subsequent to the spin-off of Allegra, the Company acquired 500,000 common shares of Allegraat $0.001 per share. This represents approximately 1% of Allegras total outstanding shares. TheCompany does not have the ability to exercise significant influence over operating and financialpolicies of Allegra. Considerable management judgment is necessary to estimate fair value of theshares purchased. Allegra has minimal operations as of September 30, 2007 and futuredevelopment is highly uncertain, the Company has accordingly recorded a charge of $500 for theimpairment of the restricted stock purchased.Hemis Philippines CorporationDuring the first quarter of 2007, the Company management decided to proceed with the plan ofdiscontinuing operations of Hemis Philippines Corporation. Substantially all assets of thePhilippines subsidiary were liquidated to pay off outstanding accounts payable and officeexpenses incurred during the quarter. The financial statements reflect the operating results andbalance sheet items of the discontinued operations separately from continuing operations. Prioryears have been restated.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|F-33
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE F  DISCONTINUED OPERATIONS (Continued)The following summarizes the assets and liabilities of discontinued operations as of September30, 2007 and December 31, 2006:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|During the first quarter of 2007 the Company sold the assets of the Philippines subsidiary inexchange for net proceeds of $11,205. The assets sold had a net book value of $15,925,accordingly the company accounted for $4,720 of loss on disposal of the assets. The followingsummarizes the operating results for the discontinued operations for the period end September30, 2007 and 2006, and for the period from February 9, 2005 (date of inception) throughSeptember 30, 2007:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



For the nine      For the nineFor the periodmonths ended   months endedfrom February 9,September       September



|F-34
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE G  GOING CONCERN MATTERSThe accompanying unaudited condensed financial statements have been prepared on a goingconcern basis, which contemplates the realization of assets and the satisfaction of liabilities in thenormal course of business. As shown in the accompanying unaudited condensed consolidatedfinancial statements for the period February 9, 2005 (date of inception) to September 30, 2007,the Company accumulated losses of $19,288,761. The Companys current liabilities exceeded itscurrent assets by $1,411,465. However, the Company has generated no revenues to date, hasincurred operating expenses and has sustained losses. These factors among others may indicatethat the Company will be unable to continue as a going concern for a reasonable period of time.The Company's existence is dependent upon management's ability to develop profitableoperations and resolve its liquidity problems. Management anticipates the Company will attainprofitable status and improve its liquidity through the strategic acquisition of businesses andcontinued business development, and additional equity investment in the Company. Theaccompanying unaudited condensed consolidated financial statements do not include anyadjustments that might result should the Company be unable to continue as a going concern.In order to improve the Companys liquidity, the Company is actively pursuing additional equityfinancing through discussions with investment bankers and private investors. There can be noassurance the Company will be successful in its effort to secure additional equity financing.If operations and cash flows continue to improve through these efforts, management believes thatthe Company can continue to operate. However, no assurance can be given that managementsactions will result in profitable operations or the resolution of its liquidity problems.NOTE H - SUBSEQUENT EVENTSSubsequent to the date of the financial statements, the Company issued 1,378,331 shares ofcommon stock in exchange for common stock subscribed during the nine months endedSeptember 30, 2007 (Note B). The Company also issued an aggregate of 50,000 shares ofcommon stock to Electrum Capital Inc for La Centela property pursuant to the Agreement (NoteE). The Company also issued warrants to purchase 40,000 shares at an exercise price of $1.00and exercisable for a period of 2 years from July 27, 2007 or 60 days after a notice of warrantexpiration is mailed out by the Company.On October 3, 2007 the Company entered into an agreement with Corex Gold which amends theJanuary 29, 2007 Option Agreement relating to the Companys interest in the Santa Rita mineralproperty. The amendment agreement amends and extends the payment schedule set out in the2007 Option Agreement. Pursuant to the amendment agreement, the Company is now requiredto issue 75,000 shares of its common stock to Corex Gold by October 12, 2007; and pay$200,000 to Corex Gold by October 31, 2007 in order to maintain its interest in the Santa Ritaproperty. The Company has decided to let their interest in the Santa Rita mineral property expireby choosing not to make the final payment of $200,000 to Corex Gold by October 31, 2007. TheCompany does not consider that the Santa Rita mineral concession holds as much potential formineralization as do other mineral properties in which Hemis holds a majority interest.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|F-35
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|HEMIS CORPORATION.(An exploration stage company)NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)SEPTEMBER 30, 2007NOTE G  GOING CONCERN MATTERS (Continued)Note I  OtherOn September 14, 2007, Douglas Oliver resigned as a director effective September 14, 2007, butwill remain an officer of the Company.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|F-36
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|ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION/PLAN OF OPERATIONSForward Looking StatementsThis quarterly report on Form 10-QSB contains forward-looking statements that involverisks and uncertainties. These statements relate to future events or our future financialperformance. In some cases, you can identify forward-looking statements by terminologyincluding, "could" "may", "will", "should", "expect", "plan", "anticipate", "believe","estimate", "predict", "potential" and the negative of these terms or other comparableterminology. These statements are only predictions. Actual events or results may differmaterially.While these forward-looking statements, and any assumptions upon which they arebased, are made in good faith and reflect our current judgment regarding the direction ofour business, actual results will almost always vary, sometimes materially, from anyestimates, predictions, projections, assumptions or other future performance suggestedin this report.IntroductionHemis Corporation (we, us, Hemis) was incorporated as a Nevada company onFebruary 9, 2005. We have been engaged in the acquisition, exploration anddevelopment of mineral properties since our inception. We currently have one activewholly-owned subsidiary, Hemis Gold SA de CV which was incorporated in Mexico inMay 2005. We plan to use the Mexican subsidiary to carry out exploration activities inMexico.OverviewWe are engaged in the acquisition and exploration of mineral properties in Sonora,Mexico; British Columbia, Canada; and Alaska, U.S. Our plan of operations for the nexttwelve months beginning December 2007 is to conduct exploration of our mineralproperties in Mexico, Canada and the U.S.Until recently, we also had an option interest in a mineral concession in La Zacatecas,Mexico known as Santa Rita. However management has decided to allow our optioninterest to lapse by choosing not to fulfill certain option payments. Our managementdoes not believe that this particular mineral concession holds as much potential as ourother sites and have decided to concentrate our exploration efforts on our other mineralproperties in Sonora, Mexico, British Columbia, Canada and Alaska, U.S.We have only recently begun our current operations and we have not yet earned anyrevenues, have had operational losses to date and have accumulated a deficit. From ourinception on February 9, 2005 until September 30, 2007 we incurred a totalcomprehensive loss of $19,232,320.We are an exploration stage company. Our most advanced projects are at theexploration stage and there is no assurance that any of our mining claims contain acommercially viable ore body. We plan to undertake further exploration of our properties.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3
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|We anticipate that we will require additional financing of approximately $9,753,000 inorder to pursue full exploration of these claims. We do not have sufficient financing toundertake full exploration of our mineral claims at present and there is no assurance thatwe will be able to obtain the necessary financing.There is no assurance that a commercially viable mineral deposit exists on any of ourmineral properties. Further exploration beyond the scope of our planned explorationactivities will be required before a final evaluation as to the economic and legal feasibilityof mining of any of our properties is determined. There is no assurance that furtherexploration will result in a final evaluation that a commercially viable mineral depositexists on any of our mineral properties.Plan of OperationWe are engaged in the acquisition and exploration of mineral properties in Sonora,Mexico; British Columbia, Canada; and Alaska, U.S.A. We have acquired a percentageinterest in two properties in Sonora, Mexico and hold options to acquire interests in twofurther mineral concessions on properties in Mexico. In addition, we hold the rights toacquire various offshore prospect permitting applications in Alaska, some of which havebeen granted. We also hold the rights to acquire interests in two mineral claims inCanada as described below:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Name of Property          | Location                 | Nature of Interest           
|------------------------- | ------------------------ | -----------------------------
|                         
|El Tigre Property         | Sonora, Mexico           | 67.5% interest in mining     
|                          |                          | rights                       
|                         
|Porvenir Property         | Sonora, Mexico           | 67.5% interest in mining     
|                          |                          | rights                       
|                         
|La Centela Property       | Sonora, Mexico           | Option to acquire up to a    
|                          |                          | 75% interest in mining rights
|                         
|La Casita Property        | Sonora, Mexico           | Exclusive right to complete  
|                          |                          | our application to acquire a 
|                          |                          | 100% interest in mining      
|                          |                          | rights                       
|                         
|Anchor Point Gold Project | Alaska, US               | Right to acquire various     
|                          |                          | offshore prospecting permit  
|                          |                          | applications and a non-      
|                          |                          | exclusive license of geologic
|                          |                          | information                  
|                         
|Wolfe Creek and Covenant  | British Columbia, Canada | Option to acquire 100%       
|and Covenant Claims       |                          | interest in mining rights of 
|                          |                          | two properties               
|                         



|4
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|Our plan of operation for the next twelve months, beginning October 2007, is to carry outexploration of our mineral properties in Mexico and Canada and to get approval for theoffshore prospecting permit applications which relate to our five potential explorationproject locations in Alaska. We intend to primarily explore for gold and molybdenum, butif we discover that any of our mineral properties hold potential for other minerals that ourmanagement determines are worth exploring further, then we will explore for those otherminerals. All of our exploration programs are preliminary in nature in that theircompletion will not result in a determination that any of our properties containscommercially exploitable quantities of mineralization. Our management estimates that itwill cost us approximately $7,000,000 in exploration expenses and take us until summerof 2009 to determine if the mineral properties on which we have options, do havecommercially exploitable quantities of mineralization. We intend to enter into jointventures on all our projects to allow other companies to contribute to the explorationexpenses in exchange for options to acquire a portion of our interest in the mineralproperties. As of the date of this filing, no joint venture partners have been found.We are also negotiating the purchase of securities in various other mineral explorationcompanies. As at the date of this filing, no such securities have been purchased yet.Our exploration programs will be directed by our management and will be supervised byDr. Doug Oliver, our Vice-President Operations. We will engage contractors to carry outour exploration programs under Dr. Olivers supervision. Contractors that we plan toengage include project geologists, geochemical sampling crews and drilling companies,each according to the specific exploration program on each property. We plan to solicitbids from drilling companies prior to selecting any drilling company to complete a drillingprogram. We anticipate paying normal industry rates for core drilling.We plan to continue exploration of our mineral claims so long as the results of thegeological exploration indicate that further exploration of our mineral claims isrecommended, and we are able to obtain the additional financing necessary to enable usto continue exploration. All exploration activities on our mineral claims are presentlypreliminary exploration activities. Advanced exploration activities, including thecompletion of comprehensive drilling programs, will not be necessary before we are ableto complete any feasibility studies on any of our mineral properties. If our explorationactivities result in an indication that our mineral claims contain potentially commercialexploitable quantities of gold, then we would attempt to complete feasibility studies onthe property to assess whether commercial exploitation of the property would becommercially feasible. There is no assurance that commercial exploitation of our mineralclaims would be commercially feasible even if our initial exploration programs showevidence of gold mineralization.Our planned exploration expenditures for the next twelve months (beginning October2007) on our mineral properties, together with amounts we expect to spend onadministrative costs are summarized as follows:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5
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|Description of Expense                                | Amount     
|----------------------------------------------------- | -----------
|                                                     
|Exploration of the joint El Tigre Gold Project (the   | $1,395,000 
|joint El Tigre, Porvenir, La Centela and La Casita    |            
|Claims)                                               |            
|                                                     
|Payment towards acquisition of La Centela mining      | $275,000   
|rights                                                |            
|                                                     
|Payment towards acquisition of rights in respect of   | $ 50,000   
|the Anchor Point Gold Project Permit Applications     |            
|                                                     
|Exploration of the Anchor Point Gold Project, Alaska  | $1,000,000 
|                                                     
|Payment towards acquisition of Wolfe Creek and        | $ 333,000  
|Covenant mining rights                                |            
|                                                     
|Exploration of the Wolfe Creek and Covenant mining    | $ 500,000  
|rights                                                |            
|                                                     
|Obtaining interests in other mining rights, including | $ 2,000,000
|La Casita                                             |            
|                                                     
|General and Administrative Expenses                   | $ 4,000,000
|                                                     
|Purchase of securities in other mineral exploration   | $200,000   
|companies                                             |            
|                                                     
|Total                                                 | $9,753,000 
|                                                     



|The general and administrative expenses for the year will consist primarily ofprofessional fees for the audit and legal work relating to our regulatory filings throughoutthe year, as well as transfer agent fees, management fees, investor relations andgeneral office expenses.As at September 30, 2007, we had approximately $157,647 in cash or cash equivalents.Based on our planned expenditures as outlined above, we require additional capital ofapproximately $9,600,000 to proceed with our plan of operations over the next twelvemonths. We require additional financing in order to pursue our exploration programsbeyond the preliminary exploration programs for our mineral properties that are outlinedabove. If we achieve less than the full amount of financing that we require, we will scaleback our exploration programs on our mineral properties and will proceed with scaledback exploration plans based on our available financial resources.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|6
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|From the date of this quarterly report to the following 30 months, we anticipate that wewill not generate any revenues. Accordingly, we will be required to obtain additionalfinancing in order to continue our plan of operations. We believe that debt financing willnot be an alternative for funding additional phases of exploration as we do not havetangible assets to secure any debt financing. We anticipate that additional funding will bein the form of equity financing from the sale of our common stock. However, we do nothave any financing arranged and we cannot provide investors with any assurance thatwe will be able to raise sufficient funding from the sale of our common stock to fund ourexploration programs. In the absence of such financing, we will not be able to continueexploration of our mineral claims. Even if we are successful in obtaining equity financingto fund our exploration programs, there is no assurance that we will obtain the fundingnecessary to pursue any advanced exploration of our mineral claims following thecompletion of preliminary exploration. If we do not continue to obtain additionalfinancing, we will be forced to abandon our properties and our plan of operations.Our specific exploration plans for each of our mineral properties, together with theestimated time periods and our estimated budgets for our exploration programs, aredescribed below:El Tigre, Porvenir and La Centela ClaimsOn December 31, 2005, our wholly owned subsidiary, Hemis Gold S.A. do C.V., enteredinto an option agreement with Jose Quiros Soto, Loreto Careaga Galaz, Viuda deRascon and Rosa Maria Burgos Robles to acquire a 67.5% interest in the El Tigre andPorvenir properties.If we incur $200,000 in exploration expenditures within 548 days (18 months) from thedate of the agreement, January 23, 2006, we will acquire a 67.5% interest in the El Tigreconcession and the Porvenir concession mineral claims. These expenditures were paidin full by the due date meaning that we have now acquired a 67.5% interest in theseclaims.On September 7, 2006 we entered into a binding letter of intent agreement with ElectrumCapital, Inc. and Snra. Maria de Los Angeles Valverde Guzman (the "Optionors")whereby we obtained options to acquire up to 75% of the La Centela mineral claims. TheLa Centela option agreement consists of two parts; an option to acquire the first 70% ofthe mining rights and an option for a further 5% of the mining rights. To acquire the first70% of the mining rights we must pay $500,000 and issue 500,000 of our commonshares to the mineral rights owner, spend at least $2,000,000 in exploration expensesand make a final share payment of one share for every ounce of gold we identify, if weidentify any gold, to a maximum of 10,000,000 shares. If we exercise our option toacquire the first 70% of the mineral rights, we may then acquire a further 5% of the totalclaim by making a cash payment of $1,000,000.To date we have concluded our first round of the exploratory drilling program on the ElTigre Gold Project (the joint El Tigre, Porvenir and La Centela Claims) and havediscovered gold, silver, molybdenum, copper, lead, zinc and tungsten mineralizationacross the concessions, although it has yet to established in what quantities theseminerals exist.
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|Our plan of exploration for the joint El Tigre Gold Project is moving forward toward thenext phase of drilling. Work is focusing on geologic mapping and sampling of areas ofinterest on and near the El Tigre project area.The goal at El Tigre is to have a drill on site in the late January to early February 2008.At this time the planned program includes drilling 10 to 12 additional core holes in the ElTigre project area. These holes will provide definition drilling in the Monument Brecciatarget zone as well as test new targets. We estimate that this phase of the explorationprogram will cost approximately $1,595,000 and take 6 - 8 months to complete andanalyze the results. Our plan of exploration into the future, will depend on the results ofthis drilling phase.With the conclusion of the first round of drilling and the receipt of laboratory assayresults, a clearer understanding of the mineralization of the area is emerging.La CasitaLa Casita is a mineral exploration concession which is located close to our El Tigre,Porvenir and La Centela concessions. On April 19, 2007 we won a raffle to determinewhich of several concurrent applicants would be able to proceed with an application toobtain a mining concession on La Casita. The concession will be reserved for us by theMexican government pending our application and if all of the formalities are compliedwith (and all the correct technical information is supplied), we anticipate that we will begranted a 100% interest in the La Casita mineral concession within two to six months.We aim to integrate exploration of the La Casita concessions with the ongoing mappingand sampling across the El Tigre project area.Anchor Point Gold ProjectOn January 8, 2007 we entered into an agreement with Aspen Exploration Corporationpursuant to which Aspen assigned us State of Alaska offshore prospecting permitapplications, together with a non-exclusive license of all of Aspens right, title andinterests to all maps, aeromagnetic surveys and geologic information developed byAspen in the Cook Inlet, Alaska (the Anchor Point Gold Project).As at November 5, 2007, only some of the offshore prospecting permit applications havebeen approved. Whilst we wait for approval on the remaining permits, we are involved inreviewing the aeromag data and determining where the sampling program is to takeplace. We have also contracted Earthfield Technologies of Houston to process neweraeromagnetic data covering the Lower Cook Inlet. We plan to conduct an oceanographicsurvey over the key areas of interest to get data on bathymetry, sediment stratigraphyand local magnetic variations. We have retained Entrix, Inc. to assist us in getting thenecessary state and federal permits. We anticipate starting our exploration program onthe Anchor Point Gold Project in the early spring of 2008.We will persist in applying for the offshore prospecting permits and if we are successfulin obtaining them, we have agreed with Aspen on the following plan of operations, whichwe shall use as our basis for exploration, development and mining of all ores, minerals,and mineral resources in the area:
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- In the first year, we will acquire additional aeromagnetic data in the Cook Inlet, Alaska, and apply for additional State of Alaska offshore prospecting permits or federal offshore exploration and mining rights.
- In the second and subsequent years, we will obtain permits and conduct exploration of the area.
- If commercial feasibility is demonstrated, we will acquire the equipment needed to economically produce any identified deposits.



|Wolfe Creek and Covenant PropertiesOn March 13, 2007 we entered into an option agreement with Stacs GmbH whereby weacquired an option to purchase a 100% mining rights to the Wolfe Creek and Covenantmineral concessions in British Columbia, Canada, subject to a 3% royalty.Over the next 36 months, we plan to spend approximately $1,000,000 on mapping, re-sampling, relocation, geological, geochemical and geophysical surveys, and trenching.Subsequent drilling will require some remediation work. We are still in the early stages ofdeveloping our full exploration plan on this property, and we anticipate that we will beginexploration of this property in December 2007. We plan on spending approximately$500,000 over the next 12 months in exploration of the Wolfe Creek and Covenantclaims.Our exploration plans for all our mineral interests will be continually evaluated andmodified as exploration results become available. Modifications to our plans will bebased on many factors, including: results of exploration, assessment of data, weatherconditions, exploration costs, and the price of gold and available capital. Further, theextent of our exploration programs that we undertake will be dependent upon theamount of financing available to us.Product Research and DevelopmentWe do not anticipate spending any material amounts in connection with productresearch and development activities during the next twelve months.Acquisition of Plant and Equipment and Other AssetsApart from our interests in the mineral concessions, we do not anticipate the sale oracquisition of any material properties, plant or equipment during the next twelve months.Any acquisitions are subject to obtaining additional financing.
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|Number of EmployeesAs of September 30, 2007, our Chief Executive Officer our Chief Financial Officer workas part time consultants, each contributing approximately 40% of their time to us. Wealso engage independent contractors in the areas of marketing, accounting,bookkeeping, geology, exploration consulting, business and financial consulting andlegal services. In order for us to attract and retain quality personnel, we anticipate we willhave to offer competitive salaries to future employees. We anticipate that it may becomedesirable to add additional full and part time employees to discharge certain criticalfunctions during the next twelve months. This projected increase in personnel isdependent upon our ability to generate revenues and obtain sources of financing. Thereis no guarantee that we will be successful in raising the funds required or generatingrevenues sufficient to fund the proposed increase in the number of employees. As wecontinue to expand, we will incur additional cost for personnel.
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|Results of Operations                          |              |              |              |            
|---------------------------------------------- | ------------ | ------------ | ------------ | -----------
|                                              
|Our results of operations are presented below: |              |              |             
|                                              
|                                              
|                                               | Three Months | Three Months | Nine Months  | Nine Months
|                                               | Ended        | Ended        | Ended        | Ended      
|                                               | September    | September    | September    | September  
|                                               | 30, 2007     | 30,          | 30, 2007     | 30, 2006   
|                                               |              | 2006         |              |            
|                                               |              |              |              |            
|                                              
|Costs and Expenses:                            |              |              |              |            
|                                              
|General and                                    | $3,608,507   | $1,147,480   | $11,175,397  | $3,181,495 
|Administrative                                 |              |              |              |            
|                                              
|Depreciation                                   | 7,945        | 2,637        | 17,165       | 15,425     
|                                              
|Total Operating                                | 3,616,452    | 1,150,117    | 11,192,562   | 3,196,920  
|Expense                                        |              |              |              |            
|                                              
|Loss from Operations                           | (3,616,452)  | (1,150,117)  | (11,192,562) | (3,196,920)
|                                              
|Loss on put                                    | -            | -            | (20,789)     |            
|agreement                                      |              |              |              |            
|                                              
|Loss on discontinued                           | -            | -            | (4,748)      | (22,128)   
|operations                                     |              |              |              |            
|                                              
|Net Loss                                       | (3,616,452)  | (1,178,012)  | (11,222,819) | (3,246,943)
|                                              
|Loss per common                                | $ (0.05)     | $ (0.09)     | $(0.17)      | $(0.22)    
|share (basic and                               |              |              |              |            
|assuming dilution)                             |              |              |              |            
|                                              
|Weighted average                               | 72,570,427   | 12,928,593   | 67,247,532   | 14,728,625 
|common shares for                              |              |              |              |            
|computation                                    |              |              |              |            
|                                              



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|Since our inception on February 9, 2005, we have never generated any revenues. Sinceour inception to September 30, 2007, we incurred net loss of $19,288,761. We anticipatethat we will not earn any revenues during the current fiscal year or in the following 30months from the date of this report as we are presently engaged in the exploration of ourmineral properties.For the three months ended September 30, 2007 we incurred net loss of $3,616,452compared to our net loss of $1,178,012 for the same period in 2006. The increase of$2,438,440 in net loss was mainly due to the increase in our day to day operating costs.For the nine months ended September 30, 2007, we incurred net loss of $11,222,819compared to a net loss of $3,246,943 for the nine months ended September 30, 2006.Our net loss per share was $0.05 and $0.09 respectively for the three months and ninemonths ended September 30, 2007.For the three months ended September 30, 2007 our total operating expenses were$3,616,452 compared to $1,150,117 for the three months ended September 30, 2006.The increase of $2,466,335 in operating expenses is primarily due to our increased dayto day operation activities for the three months ended September 30, 2007 and anassociated increase in professional fees including accounting, legal and other consultingfees, increased travel and entertainment expenses, and increased mineral andexploration costs. We have experienced significantly more business activities in relationto our acquisition of mineral interests in the 3 months in 2007 as compared with the 3months of operations in 2006. Our total operating expenses increased $7,995,642 from$3,196,920 for the nine months ended September 30, 2006 to $11,192,562 for the ninemonths ended September 30, 2007. Since our inception to September 30, 2007 weincurred $19,006,795 in total operating expenses.Our general and administrative expenses from February 9, 2005 (date of inception) toSeptember 30, 2007 were $18,982,205. This includes amounts for professional fees,consulting fees, management fees, and other administrative expenses. Our otheradministrative expenses consist of bank charges, filing fees, payroll, investor relationsfees, marketing expenses, stock based compensation, travel, meals and entertainment,rent, foreign exchange, office maintenance, communication expenses (cellular, internet,fax, and telephone), courier, postage costs and office supplies, and exploration andmineral costs. Our professional fees include legal, accounting and auditing fees.For the three months ended September 30, 2007, our general and administrative feeswere $3,608,507 compared to $1,147,480 for the same period in 2006. The increase of$2,461,027 was mainly because we had additional legal and auditing services andincreased expenses related to our acquisition of mineral interests. For the nine monthsended September 30, 2007, our general and administrative fees were $11,175,397compared to $3,181,495 for the same period last year.Total depreciation expense was $24,590 from February 9, 2005 (date of inception) toSeptember 30, 2007. Our depreciation increased $5,308 to $7,945 for the three monthsended September 30, 2007 from $2,637 for the same period in 2006. Our depreciationincreased $1,740 to $17,165 for the nine months ended September 30, 2007 from$15,425 for the same period in 2006.
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|Liquidity and Capital ResourcesAs of September 30, 2007, we had cash and cash equivalents of $157,647 and aworking capital deficit of $1,411,465. Our accumulated deficit was $19,288,761 as atSeptember 30, 2007. Our net loss of $19,288,761 from February 9, 2005 (date ofinception) to September 30, 2007 was mainly funded by our equity financing and theadvance by related parties. During the nine months ended September 30, 2007, weraised $1,369,482 from the sale of our common stock. The decrease in cash and cashequivalent for the nine months ended September 30, 2007 was $2,280,334.We used net cash of $73,047 in investing activities during the nine months endedSeptember 30, 2007. We used net cash of $3,510,914 in operating activities for the ninemonths ended September 30, 2007. We received net cash of $1,246,673 from financingactivities during the nine months ended September 30, 2007. During the nine monthsended September 30, 2007, our monthly cash requirement was approximately $398,218in operating and investing activities. As of September 30, 2007, we had cash and cashequivalent of $157,647, which will not cover our costs even for one month according toour current monthly burn rate.We expect to require approximately an additional $9,600,000 in financing to continue ourplanned operations for the next year (from December 2007). We anticipate that afterDecember 2007 our monthly expenses will increase as our general and administrativeexpenses and our proposed acquisition and exploration costs also increase.Our independent registered public accounting firm has stated in their report included inour December 31, 2006 Form 10-KSB, that our recurring losses raise substantial doubtsabout our ability to continue as a going concern, and we are dependent uponmanagement's ability to develop profitable operations.If we are unable to achieve the necessary additional financing, then we plan to reducethe amounts that we spend on our exploration activities and administrative expenses inorder to be within the amount of capital resources that are available to us. Specifically,we anticipate that we would defer drilling programs pending our obtaining additionalfinancing. Given our plan to scale back our operations if we do not achieve additionalfinancing, we anticipate that our current cash and working capital will be sufficient toenable us to sustain our operations and our interests in our mineral properties for thenext twelve months.Future FinancingsWe will require additional financing in order to proceed with the exploration of ourmineral properties. We plan to complete private placement sales of our common stock inorder to raise the funds necessary to pursue our plan of operations. Issuances ofadditional shares will result in dilution to our existing shareholders. We currently do nothave any arrangements in place for the completion of any private placement financingsand there is no assurance that we will be successful in completing any private placementfinancings.
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|Off-Balance Sheet ArrangementsWe have no significant off-balance sheet arrangements that have or are reasonablylikely to have a current or future effect on our financial condition, changes in financialcondition, revenues or expenses, results of operations, liquidity, capital expenditures orcapital resources that is material to stockholders.InflationThe effect of inflation on our revenue and operating results was not significant.Audit CommitteeThe functions of the audit committee are currently carried out by our Board of Directors.Our Board of Directors has determined that we do not have an audit committee financialexpert on our Board of Directors carrying out the duties of the audit committee. OurBoard of Directors has determined that the cost of hiring a financial expert to act as adirector of Hemis and to be a member of the audit committee or otherwise perform auditcommittee functions outweighs the benefits of having a financial expert on the auditcommittee.ITEM 3. CONTROL AND PROCEDURES(a) Evaluation of disclosure controls and proceduresOur Chief Executive Officer and Chief Financial Officer evaluated our disclosurecontrols and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of theSecurities Exchange Act of 1934 (the Exchange Act) as of a date within 90 days beforethe filing date of this report and has concluded that as of the evaluation date, ourdisclosure controls and procedures are effective to ensure that information we arerequired to disclose in reports that we file or submit under the Exchange Act is recorded,processed, summarized and reported within the time periods specified in the Securitiesand Exchange Commissions rules and forms.(b) Changes in internal controlsSubsequent to the date of their evaluation, there were no changes in our internalcontrols over financial reporting or in other factors that could significantly affect thesecontrols. There were no significant deficiencies or material weaknesses in our internalcontrols so no corrective actions were taken.
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|PART II  OTHER INFORMATION
|---------------------------



|ITEM 1. LEGAL PROCEEDINGSWe are not aware of any pending or threatened legal proceedings which involve us orany of our properties or subsidiaries.
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|ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIESDuring the 3rd quarter of 2007, we issued unregistered securities as follows:
|----------------------------------------------------------------------------------------------------------------------------

- In July 2007, we issued an aggregate of 315,000 shares of common stock at $.60 per share in exchange for proceeds of $189,000.
- In July 2007, we issued an aggregate of 400,000 shares of common stock in exchange for services rendered at $0.41 per share, which approximated the fair value of shares issued during the period services were rendered, and an aggregate of 1,100 shares of common stock in exchange for services rendered at $0.40 per share, which approximated the far value of shares issued during the period services were rendered.
- In July 2007, we issued an aggregate of 75,000 shares of common stock for resource property at $.41 per share, which approximated the fair value of shares issued during the period.
- In July 2007, we issued an aggregate of 100,000 shares of common stock for dispute settlement at $.40 per share, which approximated the fair value of shares issued during the period.
- In August 2007, we issued an aggregate of 745,792 shares of common stock at $.40 per share.
- In August 2007, we issued an aggregate of 440,000 shares of common stock in exchange for services rendered at $.41 per share, which approximated the fair value of shares issued during the period services were rendered.
- In August 2007, we issued an aggregate of 30,000 shares of common stock in exchange for commissions in connection with common stock subscribed.
- In August 2007 we issued 42,000 shares of common stock at $0.80 per share. The subscription agreement was accepted on June 14, 2007 but due to an administrative error was not processed until August.
- In September 2007 we issued warrants to purchase 21,000 shares of our common stock at an exercise price of $1.00, exercisable for a period of 2 years from June 14, 2007 or 60 days after we mail out a notice of warrant expiration.
- In September 2007 we issued 20,000 shares of common stock in exchange for services rendered at $0.17 per share, which approximated the fair value of share issued during the period services were rendered.
- In September 2007 we issued an aggregate of 500,000 shares of common stock in exchange for cash proceeds at $0.13 per share.
- In September 2007 we issued an aggregate of 691,664 shares of our common stock in exchange for cash proceeds at $0.25 per share.



|Subsequent to the period covered by this report, in October 2007, we issued 50,000shares of common stock in order to maintain our interest in the La Centela property.Also in October 2007 we issued warrants to purchase 40,000 shares at an exercise priceof $1.00 and exercisable for a period of 2 years from July 27, 2007 or 60 days after wemail out a notice of warrant expiration.These transactions were exempt from registration pursuant to Regulation S or Section4(2) of the Securities Act of 1933.
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|We completed the offerings of the common stock pursuant to Rule 903 of Regulation Sof the Securities Act on the basis that the sale of the common stock was completed in an"offshore transaction", as defined in Rule 902(h) of Regulation S. We did not engage inany directed selling efforts, as defined in Regulation S, in the United States inconnection with the sale of the units. Each investor was not a US person, as defined inRegulation S, and was not acquiring the shares for the account or benefit of a USperson.Our reliance upon the exemption under Section 4(2) of the Securities Act of 1933 wasbased on the fact that the issuance of these shares did not involve a public offering.The offering was not a "public offering" as defined in Section 4(2) due to theinsubstantial number of persons involved in the deal, size of the offering, manner of theoffering and number of shares offered. We did not undertake an offering in which wesold a high number of shares to a high number of investors. No general solicitation wasused, no commission or other remuneration was paid in connection with thesetransactions, and no underwriter participated. Based on an analysis of the above factors,these transactions were effected in reliance on the exemption from registration providedin Section 4(2) of the Securities Act for transactions not involving any public offering.ITEM 3. DEFAULTS UPON SENIOR SECURITIESNoneITEM 4. SUBMISSION OF MATTERS TO A VOTE SECURITY HOLDERSNoneITEM 5. OTHER INFORMATION:On July 24, 2007 we entered into a services agreement with Mineralogics Corporationpursuant to which Mineralogics provides us with exploration office facilities, oversees ourmineral property acquisition and development activities and provides us withadministrative services. In exchange for these services we agreed to pay Mineralogics amonthly service fee of $7,500. The term of the agreement is from August 1, 2007 untilAugust 1, 2010 and is terminable by either party upon giving 30 days written notice tothe other. This agreement is considered by the SEC to be a related party transactionbecause Norman Meier, our President, CEO and a director, is also the owner anddirector of Mineralogics.
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|ITEM 6. EXHIBITSExhibit    ExhibitNumber  Description
|-----------------------------------------------------

|10.1 | Services Agreement with Mineralogics Corporation                                                                                                 
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------
|    
|31.1 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                           
|    
|31.2 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                           
|    
|32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|    
|32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|    



|SIGNATURES
|----------



|In accordance with the requirements of the Exchange Act, the registrant caused thisreport to be signed on its behalf by the undersigned, thereunto duly authorized.
Hemis Corporation(Registrant)
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|
|

/s/ Norman MeierDate: November 14, 2007
     Norman MeierDirector, President, Chief Executive Officer/s/ Bruno WeissDate: November 14, 2007
     Bruno WeissDirector, Chief Financial Officer




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