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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-KSB

(Mark One) [ X ]Annual Report Under Section 13 Or
15(d) Of The Securities Exchange Act Of 1934

For the fiscal year ended September 30, 2007

[ ] Transition Report Under Section 13 Or 15(d) Of The
Securities Exchange Act Of 1934

For the transition period from _____to _____

COMMISSION FILE NUMBER:000-52565

COLUMBUS VENTURES INC.(Name of small business issuer in its charter)

|NEVADA                                                               | 72-1619354                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|810 Peace Portal Drive, Suite 210                                    |                                     
|Blaine, WA                                                           | 98230                               
|(Address of principal executive offices)                             | (Zip Code)                          

(360) 510-1240
  Issuers telephone number

|Securities registered under Section 12(b) of the Exchange
      Act: | NONE.                        
|-------------------------------------------------------------------- | -----------------------------
|                                                                     |                              
|Securities registered under Section 12(g) of the Exchange
      Act: | CommonStock,$0.001ParValuePer
|                                                                     | Share.                       

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

Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrants knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [X]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes [ X ]No [ ]

State issuers revenues for its most recent fiscal year.
$NIL

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which
the common equity was sold, or the average bid and asked price of such common
equity, as of a specified date within the past 60 days. (See definition of
affiliate in Rule 12b-2of the Exchange Act.): $150,343, based on a
price of $0.02 per share, being the price at which the Issuer last sold shares
of its common stock.

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date. 32,517,150
Shares of Common Stock as of January 8, 2008.

Transitional Small Business Disclosure Format (check one): Yes [
] No [ X ]

---

COLUMBUS VENTURES INC.

ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED SEPTEMBER
30, 2007

INDEX

|               |                                                                                                                                                    | PAGE  
|-------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- | ------
|               |                                                                                                                                                    |       
|PART
      I   |                                                                                                                                                    | **3** 
|               |                                                                                                                                                    |       
|ITEM
      1.  | Description
      of Business.                                                                                                                     | 3     
|ITEM
      2.  | Description
      of Property.                                                                                                                     | 5     
|ITEM
      3.  | Legal
      Proceedings.                                                                                                                           | 10    
|ITEM
      4.  | Submission
      of Matters to a Vote of Security Holders.                                                                                         | 10    
|               |                                                                                                                                                    |       
|PART
      II  |                                                                                                                                                    | **11**
|               |                                                                                                                                                    |       
|ITEM
      5.  | Market
      for Common Equity and Related Stockholder Matters and Small Business
      Issuer Purchases of Equity Securities.                     | 11    
|ITEM
      6.  | Managements
      Discussion and Analysis or Plan of Operation.                                                                                   | 11    
|ITEM
      7.  | Financial
      Statements.                                                                                                                        | 19    
|ITEM
      8.  | Changes
      in and Disagreements with Accountants on Accounting and Financial
      Disclosure.                                                  | 20    
|ITEM
      8A. | Controls
      and Procedures.                                                                                                                     | 20    
|ITEM
      8B. | Other
      Information.                                                                                                                           | 20    
|               |                                                                                                                                                    |       
|PART
      III |                                                                                                                                                    | **21**
|               |                                                                                                                                                    |       
|ITEM
      9.  | Directors,
      Executive Officers, Promoters, Control Persons and Corporate Governance;
      Compliance with Section 16(A) of the Exchange Act. | 21    
|ITEM
      10. | Executive
      Compensation.                                                                                                                      | 22    
|ITEM
      11. | Security
      Ownership of Certain Beneficial Owners and Management and Related
      Stockholder Matters.                                        | 22    
|ITEM
      12. | Certain
      Relationships and Related Transactions, and Director Independence.                                                                   | 23    
|ITEM
      13. | Exhibits.                                                                                                                                          | 24    
|ITEM
      14. | Principal
      and Accountant Fees and Services.                                                                                                  | 25    
|               |                                                                                                                                                    |       
|SIGNATURES     |                                                                                                                                                    | **26**

2

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PART I

Certain statements contained in this Annual Report on Form
10-KSB constitute forward-looking statements. These statements, identified by
words such as plan, anticipate, believe, estimate, should, expect,
and similar expressions include our expectations and objectives regarding our
future financial position, operating results and business strategy. These
statements reflect the current views of management with respect to future events
and are subject to risks, uncertainties and other factors that may cause our
actual results, performance or achievements, or industry results, to be
materially different from those described in the forward-looking statements.
Such risks and uncertainties include those set forth under the caption
Managements Discussion and Analysis or Plan of Operation and elsewhere in
this Annual Report. We advise you to carefully review the reports and documents
we file from time to time with the Securities and Exchange Commission (the
SEC), particularly our Quarterly Reports on Form 10-QSB and our Current
Reports on Form 8-K.

As used in this Annual Report, the terms we, us, our,
Columbus, and the Company mean Columbus Ventures Inc. and its subsidiaries,
unless otherwise indicated. All dollar amounts in this Annual Report are
expressed in U.S. dollars, unless otherwise indicated.

|ITEM 1. | DESCRIPTION OF BUSINESS.
|------- | ------------------------

OVERVIEW

We were incorporated on October 12, 2005 under the laws of the
State of Nevada.

We are an exploration stage company engaged in the acquisition
and exploration of mineral properties. We currently own a 100% undivided
interest in a mineral property located in the Province of British Columbia,
Canada, that we call the Comego Property. The Comego Property consists of an
area of approximately 630 acres located at the headwaters of the Chemainus
River, approximately 20 miles east of the City of Nanaimo, on Vancouver Island,
in the Province of British Columbia, Canada. Title to the Comego Property is
held by our wholly owned British Columbia subsidiary, CMBS Explorations Inc. Our
plan of operation is to conduct mineral exploration activities on the Comego
Property in order to assess whether it possess deposits of gold capable of
commercial extraction.

We have not earned any revenues to date. We do not anticipate
earning revenues until such time as we enter into commercial production of our
mineral properties. We are presently in the exploration stage of our business
and we can provide no assurance that we will discover commercially exploitable
levels of mineral resources on our properties, or if such deposits are
discovered, that we will enter into further substantial exploration
programs.

Compliance with Government Regulation

We will be required to comply with all regulations, rules and
directives of governmental authorities and agencies applicable to the
exploration of minerals in the Province of British Columbia. The main agency
that governs the exploration of minerals in the Province of British Columbia is
the Ministry of Energy, Mines and Petroleum (the Ministry of Mines).

The Ministry of Mines manages the development of British
Columbia's mineral resources, and implements policies and programs respecting
their development while protecting the environment. In addition, the Ministry of
Mines regulates and inspects the exploration and mineral production industries
in British Columbia to protect workers, the public and the environment.

The material legislation applicable to us is the British
Columbia Mineral Tenure Act, and the British Columbia Mines Act, as well as the
Health, Safety and Reclamation Code and the Mineral Exploration Code,
promulgated under the Mines Act.

3

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The Mineral Tenure Act and its regulations govern the
procedures involved in the location, recording and maintenance of mineral titles
in British Columbia. The Mineral Tenure Act also governs the issuance of leases
which are long term entitlements to minerals.

All mineral exploration activities carried out on a mineral
claim or mining lease in British Columbia must be done in compliance with the
Mines Act. The Mines Act applies to all mines during exploration, development,
construction, production, closure, reclamation and abandonment. It outlines the
powers of the Chief Inspector of Mines, to inspect mines, the procedures for
obtaining permits to commence work in, on or about a mine and other procedures
to be observed at a mine. Additionally, the provisions of the Health, Safety and
Reclamation Code for mines in British Columbia contain standards for employment,
occupational health and safety, accident investigation, work place conditions,
protective equipment, training programs, and site supervision. Also, the Mineral
Exploration Code contains standards for exploration activities including
construction and maintenance, site preparation, drilling, trenching and work in
and about a water body.

Additional approvals and authorizations may be required from
other government agencies, depending upon the nature and scope of the proposed
exploration program. If the exploration activities require the falling of
timber, then either a free use permit or a license to cut must be issued by the
Ministry of Forests. Items such as waste approvals may be required from the
Ministry of Environment, Lands and Parks if the proposed exploration activities
are significantly large enough to warrant them. Waste approvals refer to the
disposal of rock materials removed from the earth which must be reclaimed. An
environmental impact statement may be required.

We have not budgeted for regulatory compliance costs in the
proposed work program recommended by the geological report.

The Mineral Tenure Act requires that a holder of title to
mineral claims must spend at least $4.00 CDN (approximately $3.98 US) per
hectare per year for the first three years after staking the claim on
exploration work in order to keep the property in good standing. After the first
three years, the minimum exploration expenditures increase to $8.00 CDN
(approximately $7.96 US) per hectare per year. Instead of spending the minimum
amounts on exploration work, an equivalent fee may be paid to the Province of
British Columbia. The Comego Property consists of an area of approximately 255
hectares. As such, the annual filing fees/minimum exploration work needed to
keep the Comego Property in good standing is expected to be approximately $1,020
CDN (approximately $1,015 US) for the first three years and $2,040 CDN
(approximately $2,029 US) thereafter. Because of the exploration work already
conducted on Phase I of our exploration program, the Comego Property should be
in good standing for the next four years upon the submittal of the appropriate
documentation, payment of the required fees, the submittal of a report, and the
approval from, the Ministry of Mines.

Compliance with Environmental Regulations

We will also have to sustain the cost of reclamation and
environmental remediation for all exploration work undertaken. Both reclamation
and environmental remediation refer to putting disturbed ground back as close to
its original state as possible. Other potential pollution or damage must be
cleaned-up and renewed along standard guidelines outlined in the usual permits.
Reclamation is the process of bringing the land back to its natural state after
completion of exploration activities. Environmental remediation refers to the
physical activity of taking steps to remediate, or remedy, any environmental
damage caused. The amount of these costs is not known at this time as we do not
know the extent of the exploration program that will be undertaken beyond
completion of the recommended work program. Because there is presently no
information on the size, tenor, or quality of any resource or reserve at this
time, it is impossible to assess the impact of any capital expenditures on
earnings, our competitive position or on us in the event a potentially economic
deposit is discovered.

If we anticipate disturbing ground during our mineral
exploration activities, we will be required to make an application under the
Mines Act for a permit. A permit is issued within 45 days of a complete and
satisfactory application. We do not anticipate any difficulties in obtaining a
permit, if needed. The initial exploration activities on the Comego Claims (grid
establishment, geological mapping, soil sampling, geophysical surveys) do not
involve ground disturbance and as a result do not, at this time, require a work
permit. Any follow-up

4

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trenching and/or drilling will require permits, applications
for which will be submitted well in advance of the planned work.

If we enter the production phase, of which there is no
assurance, the cost of complying with permit and regulatory environment laws
will be greater because the impact on the project area is greater. Permits and
regulations will control all aspects of the production program if the project
continues to that stage. The regulatory requirements that we will have to meet
will likely include:

| | (i)   | Ensuring that any water discharge meets drinking water
      standards;                                                                         
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                 
| | (ii)  | Dust generation will have to be minimal or otherwise
      re-mediated;                                                                         
| |       |                                                                                                                                                 
| | (iii) | Dumping of material on the surface will have to be
      re-contoured and re-vegetated with natural vegetation;                                 
| |       |                                                                                                                                                 
| | (iv)  | All material to be left on the surface will need to be
      environmentally benign;                                                            
| |       |                                                                                                                                                 
| | (v)   | Ground water will have to be monitored for any potential
      contaminants;                                                                    
| |       |                                                                                                                                                 
| | (vi)  | The socio-economic impact of the project will have to be
      evaluated and if deemed negative, will have to be re-mediated;
  and             
| |       |                                                                                                                                                 
| | (vii) | There will have to be an impact report of the work on the
      local fauna and flora including a study of potentially endangered
      species.

Competition

We are an exploration stage company. We compete with other
mineral resource exploration and development companies for financing and for the
acquisition of new mineral properties. Many of the mineral resource exploration
and development companies with whom we compete have greater financial and
technical resources than us. Accordingly, these competitors may be able to spend
greater amounts on acquisitions of mineral properties of merit, on exploration
of their mineral properties and on development of their mineral properties. In
addition, they may be able to afford greater geological expertise in the
targeting and exploration of mineral properties. This competition could result
in competitors having mineral properties of greater quality and interest to
prospective investors who may finance additional exploration and development.
This competition could adversely impact on our ability to finance further
exploration and to achieve the financing necessary for us to develop our mineral
properties.

Employees

We have no employees other than our sole executive officer and
director as of the date of this Annual Report. We conduct our business largely
through consultants.

Research and Development Expenditures

We have not incurred any research expenditures since our
incorporation.

Patents and Trademarks

We do not own, either legally or beneficially, any patents or
trademarks.

|ITEM 2. | DESCRIPTION OF PROPERTY.
|------- | ------------------------

We currently do not own any physical property or own any real
property. We purchased the Comego Property from Christopher Normand Delorme at a
cost of $3,500. Title to the Comego Property is held by our wholly owned British
Columbia subsidiary, CMBS Explorations Inc.

5

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We rent office space at Suite 210  810 Peace Portal Drive, in
Blaine, Washington. This office space consists of approximately 100 square feet,
which we rent at a cost of $225 per month.

THE COMEGO PROPERTY

In October, 2005, we purchased a 100% undivided interest in a
mineral claim known as the Cheryl Comego Claim from Christopher Normand Delorme
at a price of $3,500. Title to the Comego Property is held by our wholly owned
British Columbia subsidiary, CMBS Explorations Inc.

Description of Property

The Comego Property is comprised of a 12 cell claim block with
an area of approximately 255 hectares (approximately 630 acres), located at the
headwaters of the Chemainus River, approximately 20 miles east of the City of
Nanaimo on Vancouver Island in the Province of British Columbia. See Figure 1
below.

The Comego Property is recorded with the Ministry of Energy,
Mines and Petroleum Resources for the Province of British Columbia (the
Ministry of Mines) as follows:

Name of Mineral Claim
    Area in Hectares
    Tenure Number
    Expiry DateCHERYL COMEGO
    254.671
    521280
    April 17, 2008


The Province of British Columbia owns the land covered by the
mineral claims. To our knowledge, there are no aboriginal land claims that might
affect our title to our mineral claims or the Provinces title of the
property.

In order to maintain the Comego Property in good standing, we
must complete minimum exploration work on the mineral claim and file
confirmation of the completion of the work with the Ministry of Mines. In lieu
of completing this work, we may pay a fee equal to the minimum exploration work
that must be performed with the Ministry of Mines. The completion of mineral
exploration work or payment in lieu of exploration work in any year will extend
the existence of our mineral claims for one additional year. Our mineral claims
are currently in good standing until April 17, 2008. The minimum exploration
work that must be performed and/or the fee for keeping our claim current is
equal to $4.00 CDN (approximately $3.98 US) per hectare each year for the first
three years after staking. After three years, the minimum work to be performed
and/or the minimum fee to be paid increases to $8.00 CDN (approximately $7.96
US) per hectare per year. The Comego Property is comprised of approximately 255
hectares. As such, we will be required to complete minimum exploration work or
pay a minimum fee of $1,020 CDN (approximately $1,015 US) each year for the
first three years and $2,040 CDN (approximately $2,029 US) per year thereafter.
If we fail to complete the minimum required amount of exploration work or fail
to make a payment in lieu of this exploration work, then our mineral claims will
lapse and we will lose all interest that we have in these mineral claims.

6

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Figure 1 - Location of Claim COMEGO PROPERTYScale 1 : 5,100,000



Location

The Comego Property is located at the headwaters of the
Chemainus River on Mount Whymper, approximately three miles from Cowichan Lake
and approximately 20 miles from the City of Nanaimo, on Vancouver Island, in the
Province of British Columbia, Canada.

The Comego Property may be accessed by graveled logging roads
from Nanaimo. Nanaimo may be accessed via ferry from the City of Vancouver, on
the mainland of British Columbia.

Climate and General Physiography

The general climate of the region surrounding the Comego
Property is typical of the West Coast temperate zone, with mild to cool
temperatures and periodic heavy rainfall from November to March. Snowfall may
occur during the rainy season. During the summer season, temperatures average
approximately 60°F.

The terrain of the Comego Property is comprised of moderate to
steep slopes. The Comego Property has two mineral showings that we refer to as
the Comego Mineral Showing and the Cheryl Mineral Showing. The Comego
Mineral Showing is located at an elevation of 760 feet on a northeast facing
slope. The Cheryl Mineral Showing is located on an easterly facing slope of the
Chemainus River.

Infrastructure

The Comego Property does not currently have any plant or
equipment located on it. The City of Vancouver, located approximately 34 miles
east of the Comego Property on the mainland of British Columbia, is the primary
source for experienced exploration and mining contractors and equipment in the
region. Exploration and mining contractors and equipment can also be found in
the City of Nanaimo and other small communities on Vancouver Island.

There are no electrical or other facilities currently built on
the property. Sufficient water for all phases of the exploration program is
available from the Chemainus River and other water courses found within or
adjacent

7

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to the Comego Property. Diesel-electrical power will be
required in the initial development and feasibility stages.

Property History

To our knowledge, there has been no previous exploration or
mining operations on the Comego Property.

Regional Geology

The Comego Property is located in an area within the Insular
Belt, which is the westernmost major tectonic subdivision of the Canadian
Cordillera. The Insular Belt contains a middle Paleozoic and a Jurassic
volcanic-plutonic complex, both apparently underlain by gneiss-migmatite
terrains and overlain by Permo-Pennsylvanian and Cretaceous clastic sediments. A
thick shield of Upper Triassic basalt overlain by carbonate-clastic sediments
separates the two complexes in space and time.

The area in which the Comego Property is found is dominated by
the Karmutsen Formation of the Vancouver Group rock formation, with intrusions
from the Island Intrusion formations. The Karmutsen Formation is composed of
theolitic volcanic rocks up to 6,000 meters (approximately 3.7 miles) thick and
underlies most of Vancouver Island. Generally, the Karmutsen Formation is
composed of a lower member of pillow lava, a middle member of pillow breccia and
aquagene tuff, and an upper member of massive flows with minor interbedded
pillow lava, breccia and sedimentary layers.

The Island Intrusion formation contains batholiths and stocks
of granitoid rocks ranging from quartz diorite to granite. The Island Intrusions
underlie about one quarter of the surface of Vancouver Island.

Property Geology and Mineralization

The Comego Property is predominantly underlain by basaltic
volcanic rocks of the Karmutsen Formation in a central northerly trending
contact with dioritic to gabbroic intrusive rocks of the Late Triassic Mount
Hill Gabbro. The gabbro incorporates pendants of the Mississippian to Lower
Permean Buttle Lake Group. These pendants are comprised of chert, siliceous
argillites and siliciclastic rocks of the Fourth Lake Formation.

At the northeast corner of the Comego Property there are
indicated Upper Cretaceous, Nanaimo Group, undivided sedimentary rocks in
contact with the Mount Hill Gabbro and the Fourth Lake Formation.

Located to the east of the Comego Property is a mineral
property known as the Lara project. Reports on the Lara indicate a mineral zone
consisting of volcanogenic polymetallic massive sulphide deposit located in the
Cowichan uplift. The Cowichan uplift is one of three geanticlinal uplifts that
expose Paleozoic volcanic and sedimentary rocks on Vancouver Island. The
Paleozoic rocks are intruded by mafic sills of the Mount Hall Gabbro that are
coeval with overlying basaltic volcanics of the Karmutsen Formation.
Granodioritic stocks of the Island Intrusion have subsequently intruded all of
these sequences. The Nanaimo Group lies unconformably on the older
sequences.

According to mineral reports filed with the British Columbia
government, the outcrops of the Cheryl Mineral Showing area host pyrite and
chalcopyrite mineralization. According to this report, magnetite was observed in
silt samples. A silicified turbidite outcrop hosts a quartz vein 4.5 feet long
and up to one foot wide. Mineralization increases close to the vein but it
appears that the wallrock contains more mineralization than the vein. Small
shear zones with limonitic staining occur. According to the report referenced by
our consulting geologist, a sample from this outcrop contained 5 to 10% pyrite
and 3 to 5% chalcopyrite.

Our consulting geologist also reported that, according to filed
mineral reports on the Comego Mineral Showing area, skarns are developed in the
Buttle Lake Group sediments which have been intruded by diabasic and gabbro
sills informally called the Mount Hall gabbro. Mineralization, however, may be
related to the nearby Jurassic Reynard Creek diorite stock. The rock types in
the area comprise chert, cherty tuffs and sediments, agglomerates and argillite.
According to the filed report, assays from the quartz-carbonate zones are very
low. Mineralization occurs as three types: (1) quartz-calcite-garnet-actinolite
skarn with magnetite,

8

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chalcopyrite, pyrrhotite, pyrite and locally tetrahederite
replacing sediments, (2) quartz veins hosting molybdenite, pyrite and
chalcopyrite, and (3) quartz-carbonate veins in shear zones.

Conclusions of Geological Report

The geological evaluation report we obtained on the Comego
Property states the property is favorably located for potentially economic skarn
or volcanogenic type mineralization. The Comego Property covers two known
mineral showings with a mineralization that indicates skarn related mineral
zones similar to those occurring at formerly productive mineral zones on a
property located to the south of the Comego Property or potential volcanogenic
mineral zones similar to those occurring on a developed mineral project located
to the east of the Comego Property.

Recommendations of Geological Report and the Geological
Exploration Program

We engaged Laurence P. Sookochoff, P.Eng. to prepare a
geological evaluation report on the Comego Property. Mr. Sookochoff is a
consulting professional engineer in the Geological Section of the Association of
Professional Engineers and Geoscientists of the Province of British Columbia,
Canada. Mr. Sookochoff attended University of British Columbia and holds a
Bachelor of Science degree in geology. Mr. Sookochoff has been licensed as a
professional engineer by the Professional Engineers Association of B.C. for the
past 40 years.

The work completed by Mr. Sookochoff in preparing the
geological report consisted of a review of geological data from previous
exploration within the region. The acquisition of this data involved the
research and investigation of historical files to locate and retrieve data
information acquired by previous exploration companies in the area of the
mineral claims.

We received the geological evaluation report on the Comego
Property entitled "Geological Evaluation Report on the Comego Property" prepared
by Mr. Sookochoff on December 12, 2005. The geological report summarizes the
results of the history of the exploration of the mineral claims, the regional
and local geology of the mineral claims and the mineralization and the
geological formations identified as a result of the prior exploration. The
geological report also gives conclusions regarding potential mineralization of
the mineral claims and recommends a further geological exploration program on
the mineral claims. The description of the Comego Property provided below is
based on Mr. Sookochoffs report.

In his geological report, Mr. Sookochoff, recommended that a
three phase continuing exploration program be undertaken on the property. The
three phase program consists of the following:

Phase
    Exploration Program
    Cost
    StatusPhase I
    Trenching and sampling of the
      Cheryl and Comego mineral showings
    $4,500
    Completed.Phase II
    Coverage of the
      area with a VLF-EM and magnetometer surveys
    $8,500
    Completed in
      October, 2007. Awaiting formal report.Phase III
    Trenching,
      sampling and geological mapping within anomalous zones
    $9,500
    Expected to be
      completed in 2008, depending on the results of Phase II.Total Estimated Cost
    $22,500


Results of Phase I

Phase I of our exploration program for the Comego Property was
completed in July of 2006. Two trenches were excavated along two extensions of
the Cheryl mineral showing. A mineralized zone was exposed, which appears to be
either a parallel zone, or the same zone as the Cheryl showing. The
mineralization occurs within quartz veins and the host andesite.

9

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Eight samples were taken during Phase I. These samples were
taken from the two excavated trenches and from the Cheryl mineral showing
itself. In his report, Mr. Sookochoff reported that the results of Phase I were
successful in that the results confirmed the gold and copper mineralization
described in historical reports filed with the British Columbia government for
the general area. Mr. Sookochoff reported that the mineralized quartz veins and
the mineralization within the host rock andesite could potentially be a
developed stockwork system with significant widths, and thus has the potential
for bulk tonnage mineralization to depth. As the controls to the mineralized
zone appear to be shear related, the width of the mineral zone could be related
to the width of the shear.

Based on these results, Mr. Sookochoff has recommended that we
proceed with Phase II of our program. Phase II will consist of a VLF-EM and
magnetometer survey of the area. This survey will be conducted in an attempt to
delineate the anomalously indicated mineralized zones and the extensions
thereof. Work on Phase II was completed in October, 2007 and we are currently
awaiting a formal report on the results. A decision on whether to proceed beyond
Phase II of our exploration program will be made after receiving the report of
our consulting geologist on the results of Phase II.

|ITEM 3. | LEGAL PROCEEDINGS.
|------- | ------------------

None.

|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY
      HOLDERS.
|------- | ----------------------------------------------------------

None.

10

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PART II

|ITEM 5. | MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
      MATTERS AND **SMALL BUSINESS ISSUER PURCHASES OF EQUITY
      SECURITIES.**
|------- | ----------------------------------------------------------------------------------------------------------------------------------

Market Information

Our shares of common stock commenced trading on the OTC
Bulletin Board under the symbol CBUS on June 19, 2007. Although our shares
became eligible for quotation on the OTC Bulletin Board in June 2007, the high
and low bid information for our common stock for the year ended September 30,
2007 was not available from the OTC Bulletin Board.

Quotations provided by the OTC Bulletin Board reflect
inter-dealer prices, without retail mark-up, markdown or commission and may not
represent actual transactions.

Holders Of Our Common Stock

As of January 8, 2008, there are 32,517,150 shares of our
common stock issued and outstanding that are held of record by twenty-seven (27)
registered stockholders.

Dividends

We have not declared any dividends on our common stock since
our inception on October 12, 2005. There are no dividend restrictions that limit
our ability to pay dividends on our common stock in our Articles of
Incorporation or Bylaws. Our governing statute, Chapter 78 of the Nevada Revised
Statutes (the NRS), does provide limitations on our ability to declare
dividends. Section 78.288 of Chapter 78 of the NRS prohibits us from declaring
dividends where, after giving effect to the distribution of the dividend:

|(a) | we would not be able to pay our debts as they become due
      in the usual course of business; or                                                                                                                                                                                                                                                                                                                                                                     
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(b) | our total assets would be less than the sum of our total
      liabilities plus the amount that would be needed, if we were to be
      dissolved at the time of distribution, to satisfy the preferential rights
      upon dissolution of stockholders who may have preferential rights and
      whose preferential rights are superior to those receiving the distribution
      (except as otherwise specifically allowed by our Articles of
      Incorporation).

Recent Sales Of Unregistered Securities

None.

|ITEM 6. | MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
      OF OPERATION.
|------- | ----------------------------------------------------------------

PLAN OF OPERATION

Our plan of operation is to conduct mineral exploration
activities on the Comego Property in order to assess whether the property
contains mineral reserves capable of commercial extraction. Our exploration
program is designed to explore for commercially viable deposits of copper,
silver and gold. We have not, nor has any predecessor, identified any
commercially exploitable reserves of these minerals on the Comego Property.

Our exploration program for the Comego Property consists of the
following:

Phase
    Exploration Program
    Cost
      StatusPhase I
    Trenching and sampling of the Cheryl and
      Comego mineral showings
    $4,500
    Completed.


11

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Phase II
    Coverage of the area with a VLF-EM and
      magnetometer surveys
    $8,500
    Completed in October, 2007. Awaiting formal
      report.Phase III
    Trenching, sampling and geological mapping
      within anomalous zones
    $9,500
    Expected to be completed in 2008, depending
      on the results of Phase II.Total Estimated Cost
    $22,500


Phase I of our exploration program was completed in July of
2006. Based on the results of Phase I, our consulting geologist has recommended
that we proceed to Phase II of our exploration program. Work on Phase II of our
exploration program was completed in October, 2007 and we are currently awaiting
a formal report on the results. A decision on whether to proceed beyond Phase II
of our exploration program will be made after receiving the report of our
consulting geologist on the results of Phase II.

We anticipate that we will incur the following expenses over
the next twelve months:

Category
    Planned Expenditures Over The Next 12 Months
      (US$)Legal and
      Accounting Fees
    $20,000Office Expenses
    $3,000Mineral Property Exploration Expenses
    $9,500TOTAL
    $32,500


Our cash on hand as of September 30, 2007 is $14,504. As such,
we do not have sufficient cash to meet the anticipated costs of completing Phase
II of our proposed exploration program and meeting our anticipated working
capital requirements for the next twelve months. Therefore, we will require
additional financing. There is no assurance that we will be able to acquire such
additional financing on terms that are acceptable to us, or at all.

During this exploration stage, our president will be devoting
approximately 10% of her time to our business. We do not foresee this limited
involvement as negatively impacting our company over the next twelve months as
all exploratory work has been and will continue to be performed by outside
consultants. Additionally, we will not have a need to hire any employees over
the next twelve months, nor do we plan to make any purchases of equipment over
the next twelve months due to reliance upon outside consultants to provide all
the tools needed for the exploratory work being conducted.

RESULTS OF OPERATIONS

|Summary of Year End Results |   |                    |   |   |                        |   |  |                       | 
|--------------------------- | - | ------------------ | - | - | ---------------------- | - |  | --------------------- | 
|                            |   |                    |   |   | Period from Inception  |   |  |                       | 
|                            |   | Year Ended         |   |   | on October 12, 2005 to |   |  | Percentage            | 
|                            |   | September 30, 2007 |   |   | September 30, 2006     |   |  | Increase / (Decrease) | 
|Revenue                     | $ | --                 |   | $ | --                     |   |  | N/A                   | 
|Expenses                    |   | (61,027            | ) |   | (52,680                | ) |  | 15.8%                 | 
|Net Loss                    | $ | (61,027            | ) | $ | (52,680                | ) |  | 15.8%                 | 

Revenue

We have not earned any revenues to date. We do not anticipate
earning revenues until such time as we enter into commercial production of our
mineral properties. We are presently in the exploration stage of our business
and we can provide no assurance that we will discover commercially exploitable
levels of mineral

12

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resources on our properties, or if such deposits are
discovered, that we will enter into further substantial exploration
programs.

Expenses

Our operating expenses for the years ended September 30, 2007
and the period from inception on October 12, 2005 to September 30, 2006 are
outlined in the table below:

|                                 |   |                    |   |   | Period from Inception  |   |  |                      
|-------------------------------- | - | ------------------ | - | - | ---------------------- | - |  | ---------------------
|                                 |   | Year Ended         |   |   | on October 12, 2005 to |   |  | Percentage           
|                                 |   | September 30, 2007 |   |   | September 30, 2006     |   |  | Increase / (Decrease)
|Accounting and audit fees        | $ | 17,246             |   | $ | 24,635                 |   |  | (30.0)%              
|Bank charges                     |   | 129                |   |   | 669                    |   |  | (80.7)%              
|Consulting Fees                  |   | 13,900             |   |   | 1,500                  |   |  | 826.7%               
|Foreign exchange (gain)          |   | (260               | ) |   | (274                   | ) |  | (5.1)%               
|Legal fees                       |   | 21,139             |   |   | 12,264                 |   |  | 72.4%                
|Office and miscellaneous         |   | 6,173              |   |   | 1,576                  |   |  | 291.7%               
|Mineral property acquisition and |   | -                  |   |   | 9,699                  |   |  | (100)%               
|exploration costs                |   |                    |   |   |                        |   |  |                      
|Rent                             |   | 2,700              |   |   | 2,611                  |   |  | 3.4%                 
|Total Operating Expenses         | $ | 61,027             |   | $ | 52,680                 |   |  | 15.8%                

We did not incur any mineral property acquisition or
exploration costs during the year ended September 30, 2007 due to the
unavailability of our consulting geologist. Accounting and legal fees during the
year ended September 30, 2007 relate primarily to expenses incurred in
connection with the filing of a registration statement on Form SB-2 under the
Securities Act of 1933 (the Securities Act) and with meeting our ongoing
reporting obligations under the Securities Exchange Act of 1934 (the Exchange
Act).

We anticipate our operating expenses will increase as we
undertake our exploration program for the Comego Property. We anticipate our
accounting and legal expenses will also increase as a result of our ongoing
reporting requirements under the Exchange Act.

LIQUIDITY AND FINANCIAL CONDITION

|Working Capital           |   |                       |   |   |                       |   |  |                      
|------------------------- | - | --------------------- | - | - | --------------------- | - |  | ---------------------
|                          |   |                       |   |   |                       |   |  | Percentage           
|                          |   | At September 30, 2007 |   |   | At September 30, 2006 |   |  | Increase / (Decrease)
|Current Assets            | $ | 14,504                |   | $ | 65,344                |   |  | (77.8)%              
|Current Liabilities       | $ | (28,040               | ) | $ | (17,853               | ) |  | 57.1%                
|Working Capital (Deficit) | $ | (13,536               | ) | $ | 47,491                |   |  | (128.5)%             

13

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|Cash Flows                                           |   |                    |   |   |                        |  
|---------------------------------------------------- | - | ------------------ | - | - | ---------------------- | -
|                                                     |   |                    |   |   | Period from Inception  |  
|                                                     |   | Year Ended         |   |   | on October 12, 2005 to |  
|                                                     |   | September 30, 2007 |   |   | September 30, 2006     |  
|Cash Flows used in Operating Activities              | $ | (70,815            | ) | $ | (25,128                | )
|Cash Flows from (used in) Investing Activities       |   | -                  |   |   | (9,699                 | )
|Cash Flows from (used in) Financing
      Activities |   | 19,975             |   |   | 100,171                |  
|Net Increase (Decrease) in Cash During Period        | $ | (50,840            | ) | $ | 65,344                 |  

The decrease in our working capital at September 30, 2007 from
September 30, 2006, and the increase in our cash used during the year ended
September 30, 2007, from the comparable period ended September 30, 2006 are
primarily attributable to: (i) the additional expenses associated with filing
our registration statement on Form SB-2 under the Securities Act and with
meeting our ongoing reporting obligations under the Exchange Act; and (ii) from
the fact that we had no revenue and our only source of financing came from a
loan of $19,975. The loan is payable on demand, unsecured and non-interest
bearing.

Financing Requirements

As at September 30, 2007, we had cash in the amount of $14,504.
Our current operating funds are not sufficient to complete the proposed
exploration program and will be insufficient to complete the full exploration of
the mineral claims and begin mining efforts should the mineral claims prove
commercially viable. Therefore, we will need to obtain additional financing in
order to complete our full business plan. We also require additional financing
to sustain our business operations if we are not successful in earning revenues.
We currently do not have any arrangements for financing and we may not be able
to obtain financing when required. Obtaining additional financing would be
subject to a number of factors, including the market prices for the mineral
property and gold. These factors may make the timing, amount, terms or
conditions of additional financing unavailable to us.

From inception on October 12, 2005 to September 30, 2007, we
have used our common stock to raise money for our property acquisition, for
corporate expenses and to repay outstanding indebtedness. Since our inception,
we have suffered aggregate losses in the amount of $113,707 and net cash
outflows from operations and are dependent upon obtaining financing to pursue
any extensive exploration activities. We expect to continue to incur substantial
losses until we complete the development of our business. For these reasons, our
auditors stated in their report to our audited financial statements for the year
ended September 30, 2007 that they have substantial doubt that we will be able
to continue as a going concern. We anticipate continuing to rely on equity sales
of our common shares in order to continue to fund our business operations.
Issuances of additional shares will result in dilution to our existing
shareholders. There is no assurance that we will achieve any additional sales of
our equity securities or arrange for debt or other financing for to fund our
planned exploration activities.

OFF-BALANCE SHEET ARRANGEMENTS

None.

CRITICAL ACCOUNTING POLICIES

We have identified certain accounting policies, described
below, that are most important to the portrayal of our current financial
condition and results of operations. Our significant accounting policies are
disclosed in the notes to the audited financial statements included in this
Annual Report.

Principles of ConsolidationThe consolidated financial
statements include our accounts and the accounts of our wholly-owned subsidiary,
CMBS Explorations Inc. (CMBS). CMBS was incorporated under the

14

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Business Corporations Act of British Columbia on October 11,
2005. All inter-company transactions and accounts have been eliminated.

Exploration Stage CompanyWe comply with
Financial Accounting Standards Board (FASB) Statement No. 7 and Securities and
Exchange Commission Act Guide 7 in our characterization as an exploration stage
company.

Mineral Properties and Exploration Costs

|1. | Mineral RightsWe capitalize acquisition and
      option costs of mineral property rights where we believe the properties
      contain potentially mineralized material. The amount capitalized
      represents fair value at the time the mineral rights were acquired. The
      accumulated costs of acquisition for properties that are developed to the
      stage of commercial production will be amortized using the unit-
      of-production method.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|2. | Exploration CostsMineral exploration costs are
      expensed as incurred.                                                                                                                                                                                                                                                                                                                                                                                       

RISKS AND UNCERTAINTIES

If we do not obtain additional financing, our business will
fail.

Our operating funds are not sufficient to meet the anticipated
costs of completing our exploration program on the Comego Property. Therefore,
we will need to obtain additional financing in order to complete our full
business plan. As of September 30, 2007, we had cash on hand in the amount of
$14,504. We have not earned any income since our inception. Our plan of
operation calls for significant expenses in connection with the exploration of
our mineral claims.

We currently do not have any arrangements for financing and we
may not be able to obtain financing when required. Obtaining additional
financing would be subject to a number of factors outside of our control,
including the results from our exploration program, and any unanticipated
problems relating to our mineral exploration activities, including environmental
assessments and additional costs and expenses that may exceed our current
estimates. These factors may make the timing, amount, terms or conditions of
additional financing unavailable to us in which case our business will fail.

We have yet to earn revenue and our ability to sustain our
operations is dependent on our ability to raise financing. As a result, our
accountants believe there is substantial doubt about our ability to continue as
a going concern.

We have accrued net losses of $113,707 for the period from our
inception on October 12, 2005 to September 30, 2007, and have no revenues to
date. Our future is dependent upon our ability to obtain financing and upon
future profitable operations from the development of our mineral claims. These
factors raise substantial doubt that we will be able to continue as a going
concern. LBB & Associates Ltd., LLP, Certified Public Accountants, our
independent auditors, have expressed substantial doubt about our ability to
continue as a going concern. This opinion could materially limit our ability to
raise additional funds by issuing new debt or equity securities or otherwise. If
we fail to raise sufficient capital when needed, we will not be able to complete
our business plan. As a result we may have to liquidate our business and
investors may lose their investment. Investors should consider our auditor's
comments when determining if an investment in Columbus is suitable.

Because of the unique difficulties and uncertainties
inherent in mineral exploration ventures, we face a high risk of business
failure.

Investors should be aware of the difficulties normally
encountered by new mineral exploration companies and the high rate of failure of
such enterprises. The likelihood of success must be considered in light of the
problems, expenses, difficulties, complications and delays encountered in
connection with the exploration of the mineral properties that we plan to
undertake. These potential problems include, but are not limited to,

15

---

unanticipated problems relating to exploration, and additional
costs and expenses that may exceed current estimates. The Comego Property does
not contain a known body of commercial ore and, therefore, any program conducted
on the Comego Property would be an exploratory search of ore. There is no
certainty that any expenditures made in the exploration of the Comego Property
will result in discoveries of commercial quantities of ore. Most exploration
projects do not result in the discovery of commercially mineable mineral
deposits. Problems such as unusual or unexpected formations and other conditions
are common to mineral exploration activities and often result in unsuccessful
exploration efforts. If the results of our exploration program do not reveal
viable commercial mineralization, we may decide to abandon our claim and acquire
new claims for new exploration. Our ability to acquire additional claims will be
dependent upon our possessing adequate capital resources when needed. If no
funding is available, we may be forced to abandon our operations.

We have no known mineral reserves and if we cannot find any,
we may have to cease operations.

We have no mineral reserves. If we do not find any commercially
exploitable mineral reserves or if we cannot complete the exploration of any
mineral reserves, either because we do not have the money to do so or because it
is not economically feasible to do so, we may have to cease operations and you
may lose your investment. Mineral exploration is highly speculative. It involves
many risks and is often non-productive. Even if we are able to find mineral
reserves on our property our production capability will be subject to further
risks including:

- The costs of bringing the property into production including exploration
  work, preparation of production feasibility studies, and construction of
  production facilities, all of which we have not budgeted for;
- The availability and costs of financing;
- The ongoing costs of production; and
- Environmental compliance regulations and restraints.

The marketability of any minerals acquired or discovered may be
affected by numerous factors which are beyond our control and which cannot be
accurately predicted, such as market fluctuations, the lack of milling
facilities and processing equipment near the Comego Property, and other factors
such as government regulations, including regulations relating to allowable
production, the importing and exporting of minerals, and environmental
protection.

Given the above noted risks, the chances of our finding and
commercially exploiting reserves on our mineral properties are remote and funds
expended on exploration will likely be lost.

Because of the inherent dangers involved in mineral
exploration, there is a risk that we may incur liability or damages as we
conduct our business.

The search for valuable minerals involves numerous hazards. As
a result, we may become subject to liability for such hazards, including
pollution, cave-ins and other hazards against which we cannot insure or against
which we may elect not to insure. At the present time we have no insurance to
cover against these hazards. The payment of such liabilities may result in our
inability to complete our planned exploration program and/or obtain additional
financing to fund our exploration program.

As we undertake exploration of our mineral claims, we will
be subject to compliance with government regulation that may increase the
anticipated cost of our exploration program.

There are several governmental regulations that materially
restrict mineral exploration. We will be subject to the laws of the Province of
British Columbia as we carry out our exploration program. We may be required to
obtain work permits, post bonds and perform remediation work for any physical
disturbance to the land in order to comply with these laws. If we enter the
production phase, the cost of complying with permit and regulatory environment
laws will be greater because the impact on the project area is greater. Permits
and regulations will control all aspects of the production program if the
project continues to that stage. Examples of regulatory requirements include:

16

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|(a) | Water discharge will have to meet drinking water
      standards;                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                 
|(b) | Dust generation will have to be minimal or otherwise
      re-mediated;                                                                         
|    |                                                                                                                                                 
|(c) | Dumping of material on the surface will have to be
      re-contoured and re-vegetated with natural vegetation;                                 
|    |                                                                                                                                                 
|(d) | An assessment of all material to be left on the surface
      will need to be environmentally benign;                                           
|    |                                                                                                                                                 
|(e) | Ground water will have to be monitored for any potential
      contaminants;                                                                    
|    |                                                                                                                                                 
|(f) | The socio-economic impact of the project will have to be
      evaluated and if deemed negative, will have to be remediated;
and                
|    |                                                                                                                                                 
|(g) | There will have to be an impact report of the work on the
      local fauna and flora including a study of potentially endangered
      species.

Our annual cost of compliance under the Mineral Tenure Act
(British Columbia) is currently approximately $1,020 per year. There is a risk
that new regulations could increase our costs of doing business and prevent us
from carrying out our exploration program. We will also have to sustain the cost
of reclamation and environmental remediation for all exploration work
undertaken. Both reclamation and environmental remediation refer to putting
disturbed ground back as close to its original state as possible. Other
potential pollution or damage must be cleaned-up and renewed along standard
guidelines outlined in the usual permits. Reclamation is the process of bringing
the land back to its natural state after completion of exploration activities.
Environmental remediation refers to the physical activity of taking steps to
remediate, or remedy, any environmental damage caused. The amount of these costs
is not known at this time as we do not know the extent of the exploration
program that will be undertaken beyond completion of the recommended work
program. If remediation costs exceed our cash reserves we may be unable to
complete our exploration program and have to abandon our operations.

Because our sole executive officer and sole director, Lubow
Klauser, does not have formal training specific to the technicalities of mineral
exploration, there is a higher risk our business will fail.

Lubow Klauser, our sole executive officer and sole director,
does not have any formal training as a geologist or in the technical aspects of
management of a mineral exploration company. With no direct training or
experience in these areas, our management may not be fully aware of the specific
requirements related to working within this industry. Our management's decisions
and choices may not take into account standard engineering or managerial
approaches mineral exploration companies commonly use. Consequently, our
operations, earnings, and ultimate financial success could suffer irreparable
harm due to management's lack of experience in this industry.

We may conduct further offerings in the future in which case
investors shareholdings will be diluted.

Since our inception, we have relied on such equity sales of our
common stock to fund our operations. We may conduct further equity offerings in
the future to finance our current projects or to finance subsequent projects
that we decide to undertake. If common stock is issued in return for additional
funds, the price per share could be lower than that paid by our current
stockholders. We anticipate continuing to rely on equity sales of our common
stock in order to fund our business operations. If we issue additional stock,
investors percentage interest in us will be diluted. The result of this could
reduce the value of investors stock.

As our business assets and our directors and officers are
located outside of the United States, investors may be limited in their ability
to enforce civil actions against our assets or our director and officer.

Our business assets are located in Canada and our director and
officer is resident of Canada. Consequently, it may be difficult for United
States investors to effect service of process within the United States upon our
assets or our director or officer, or to realize in the United States upon
judgments of United States courts

17

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predicated upon civil liabilities under U.S. Federal Securities
Laws. A judgment of a U.S. court predicated solely upon such civil liabilities
may not be enforceable in Canada by a Canadian court if the U.S. court in which
the judgment was obtained had jurisdiction, as determined by the Canadian court,
in the matter. There is substantial doubt whether an original action could be
brought successfully in Canada against any of our assets or our directors and
officers predicated solely upon such civil liabilities.

Because our stock is a penny stock, shareholders will be
more limited in their ability to sell their stock.

The SEC has adopted rules that regulate broker-dealer practices
in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities
registered on certain national securities exchanges or quoted on the Nasdaq
system, provided that current price and volume information with respect to
transactions in such securities is provided by the exchange or quotation system.
Because our securities constitute penny stocks within the meaning of the
rules, the rules apply to us and to our securities. The rules may further affect
the ability of owners of shares to sell our securities in any market that might
develop for them. As long as the quotation price of our common stock is less
than $5.00 per share, the common stock will be subject to rule 15g-9 under the
Exchange Act. The penny stock rules require a broker-dealer, prior to a
transaction in a penny stock, to deliver a standardized risk disclosure document
prepared by the SEC, that:

|1. | contains a description of the nature and level of risk in
      the market for penny stocks in both public offerings and secondary
      trading;                                                                                        
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                          
|2. | contains a description of the brokers or dealers duties
      to the customer and of the rights and remedies available to the customer
      with respect to a violation to such duties or other requirements of
      securities laws;
|   |                                                                                                                                                                                                                                          
|3. | contains a brief, clear, narrative description of a
      dealer market, including bid and ask prices for penny stocks and the
      significance of the spread between the bid and ask price;                                           
|   |                                                                                                                                                                                                                                          
|4. | contains a toll-free telephone number for inquiries on
      disciplinary actions;                                                                                                                                                       
|   |                                                                                                                                                                                                                                          
|5. | defines significant terms in the disclosure document or
      in the conduct of trading in penny stocks; and                                                                                                                             
|   |                                                                                                                                                                                                                                          
|6. | contains such other information and is in such form,
      including language, type, size and format, as the SEC shall require by
      rule or regulation.                                                                              

The broker-dealer also must provide, prior to effecting any
transaction in a penny stock, the customer with: (a) bid and offer quotations
for the penny stock; (b) the compensation of the broker-dealer and its
salesperson in the transaction; (c) the number of shares to which such bid and
ask prices apply, or other comparable information relating to the depth and
liquidity of the market for such stock; and (d) a monthly account statements
showing the market value of each penny stock held in the customers account. In
addition, the penny stock rules require that prior to a transaction in a penny
stock not otherwise exempt from those rules; the broker-dealer must make a
special written determination that the penny stock is a suitable investment for
the purchaser and receive the purchasers written acknowledgment of the receipt
of a risk disclosure statement, a written agreement to transactions involving
penny stocks, and a signed and dated copy of a written suitably statement. These
disclosure requirements may have the effect of reducing the trading activity in
the secondary market for our stock.

18

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|ITEM 7. | FINANCIAL STATEMENTS.
|------- | ---------------------

Index to Consolidated Financial Statements:

Audited consolidated financial statements as of September 30,
2007, including:

|1. | Report of Independent
        Registered Public Accounting Firm (LBB & Associates Ltd., LLP, Certified
        Public Accountants);                                                                                                                               
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                   
|2. | Report of Independent
        Registered Public Accounting Firm (Telford Sadovnick, P.L.L.C., Certified
        Public Accountants);                                                                                                                              
|   |                                                                                                                                                                                                                                                                   
|3. | Consolidated Balance
        Sheet as of September 30, 2007;                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                   
|4. | Consolidated Statements
        of Operations for the year ended September 30, 2007, the period ended
        October 12, 2005 (date of inception) to September 30, 2006, and the period
        ended October 12, 2005 (date of inception) to September 30, 2007;
|   |                                                                                                                                                                                                                                                                   
|5. | Consolidated Statements
        of Cash Flows for the year ended September 30, 2007, the period ended
        October 12, 2005 (date of inception) to September 30, 2006 and the period
        ended October 12, 2005 to September 30, 2007;                     
|   |                                                                                                                                                                                                                                                                   
|6. | Consolidated Statement
        of Stockholders Equity (Deficit) for the period from October 12,
        2005 (date of inception) to September 30, 2006 and the year ended September
        30, 2007; and                                                        
|   |                                                                                                                                                                                                                                                                   
|7. | Notes to Consolidated
        Financial Statements.                                                                                                                                                                                                               

19

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COLUMBUS VENTURES INC.

(An Exploration Stage Company)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2007

(Stated in US Dollars)

F-1

---

Report of Independent Registered Public Accounting Firm

To the Board of Directors of 
  Columbus Ventures, Inc. 
  Blaine, WA

We have audited the accompanying consolidated balance sheet of
  Columbus Ventures, Inc. (the Company) as of September 30, 2007,
  and the related consolidated statements of operations, stockholders' equity
  (deficit), and cash flows for the year ended September 30, 2007 and for the
  period from October 12, 2005 (inception) through September 30, 2007. These financial
  statements are the responsibility of the Company's management. Our responsibility
  is to express an opinion on these financial statements based on our audit. The
  financial statements for the period October 12, 2005 (inception) through September
  30, 2006, were audited by other auditors whose report expressed an unqualified
  opinion on those statements. Our opinion on the statements of operations, stockholders'
  equity (deficit), and cash flows for the period October 12, 2005 (inception)
  through September 30, 2007, insofar as it relates to amounts for prior periods
  through September 30, 2006, is based solely on the report of other auditors.

We conducted our audit in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards require
  that we plan and perform the audit to obtain reasonable assurance about whether
  the financial statements are free of material misstatement. The Company is not
  required to have, nor were we engaged to perform, an audit of its internal control
  over financial reporting. Our audit included consideration of internal control
  over financial reporting as a basis for designing audit procedures that are
  appropriate in the circumstances, but not for the purpose of expressing an opinion
  on the effectiveness of the Companys internal control over financial reporting.
  Accordingly, we express no such opinion. An audit also includes examining, on
  a test basis, evidence supporting the amounts and disclosures in the financial
  statements, assessing the accounting principles used and significant estimates
  made by management, as well as evaluating the overall financial statement presentation.
  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
  fairly, in all material respects, the consolidated financial position of Columbus
  Ventures, Inc. as of September 30, 2007, and the results of its operations and
  its cash flows for the year ended September 30, 2007 and for the period from
  October 12, 2005 (inception) through September 30, 2007 in conformity with accounting
  principles generally accepted in the United States of America.

As discussed in Note 1 to the consolidated financial statements,
  the Company's absence of significant revenues, recurring losses from operations,
  and its need for additional financing in order to fund its projected loss in
  2007 raise substantial doubt about its ability to continue as a going concern.
  The 2007 consolidated financial statements do not include any adjustments that
  might result from the outcome of this uncertainty.

LBB & Associates Ltd., LLP

Houston, Texas 
  January 7, 2008

F-2

---

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Columbus Ventures
  Inc. (An Exploration Stage Company)

We have audited the accompanying consolidated balance sheet of
  Columbus Ventures Inc.(An Exploration Stage Company) (the Company)
  as at September 30, 2006, the related consolidated statement of operations,
  statement in stockholders equity and cash flows for the year then ended.
  These financial statements are the responsibility of the Companys management.
  Our responsibility is to express an opinion on these financial statements based
  on our audits.

We conducted our audits in accordance with the standards of the
  Public Company Accounting Oversight Board (United States). Those standards require
  that we plan and perform an audit to obtain reasonable assurance about whether
  the financial statements are free of material misstatement. An audit includes
  examining, on a test basis, evidence supporting the amounts and disclosures
  in the financial statements. An audit also includes assessing the accounting
  principles used and significant estimates made by management, as well as evaluating
  the overall financial statement presentation. We believe that our audits provide
  a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
  fairly, in all material respects, the financial position of Columbus Ventures
  Inc. (An Exploration Stage Company) as at September 30, 2006, and the results
  of its operations and its cash flows for the year then ended in conformity with
  accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming
  the Company will continue as a going concern. As described in Note 1 to the
  financial statements, the Company is an exploration stage enterprise and has
  yet to establish any revenues from business operations. As a result, there is
  substantial doubt about the Companys ability to continue as a going concern.
  Managements plans in regard to these matters are also described in Note
  1. The financial statements do not include any adjustments relating to the recoverability
  and classification of assets and liabilities that might result from the outcome
  this uncertainty.

/s/Telford Sadovnick, P.L.L.C.

TELFORD SADOVNICK, P.L.L.CCERTIFIED PUBLIC ACCOUNTANTS

Bellingham, Washington
  January 30, 2007

F-3

---

|COLUMBUS VENTURES INC.        
|------------------------------
|(An Exploration Stage Company)
|CONSOLIDATED BALANCE SHEET    
|September 30, 2007            
|(Stated in US Dollars)        

|ASSETS                                                  |  
|------------------------------------------------------- | -
|Current                                                 |  
|Cash                                                    | $
|                                                        |  
|LIABILITIES                                             |  
|Current                                                 |  
|Accounts payable and accrued
      liabilities          | $
|Loan payable (Note 5)                                   |  
|Total current
      liabilities                         |  
|                                                        |  
|STOCKHOLDERS
      EQUITY (DEFICIT)                    |  
|Capital stock                                           |  
|Authorized:                                             |  
|100,000,000 common voting stock,
      $0.001 par value |  
|100,000,000
      preferred stock, $0.001 par value     |  
|Issued and outstanding:                                 |  
|32,517,150 common shares (Note 6)                       |  
|Additional paid-in-capital (Note 6)                     |  
|Deficit accumulated during the exploration
      stage  |  
|                                                        |  
|                                                        |  
|                                                        |  
|                                                        | $

The accompanying notes form an integral part of these consolidated
  financial statements.

F-4

---

|COLUMBUS VENTURES INC.                                                             
|-----------------------------------------------------------------------------------
|(An Exploration Stage Company)                                                     
|CONSOLIDATED STATEMENTS OF OPERATIONS                                              
|For the year ended September 30, 2007,                                             
|for the period October 12, 2005 (Date of Inception) to September
      30, 2006 and
|for the period October 12, 2005 (Date of Inception) to September
      30, 2007    
|(Stated in US Dollars)                                                             

|                                                    |   |            |   |   | October 12, 2005 |   |   | October 12, 2005 |  
|--------------------------------------------------- | - | ---------- | - | - | ---------------- | - | - | ---------------- | -
|                                                    |   |            |   |   | (Date of         |   |   | (Date of         |  
|                                                    |   |            |   |   | Inception) to    |   |   | Inception) to    |  
|                                                    |   |            |   |   | September 30,    |   |   | September 30,    |  
|                                                    |   | 2007       |   |   | 2006             |   |   | 2007             |  
|Expenses                                            |   |            |   |   |                  |   |   |                  |  
|Accounting and audit fees                           | $ | 17,246     |   | $ | 24,635           |   | $ | 41,881           |  
|Bank charges                                        |   | 129        |   |   | 669              |   |   | 798              |  
|Consulting fees                                     |   | 13,900     |   |   | 1,500            |   |   | 15,400           |  
|Foreign exchange
      (gain)                       |   | (260       | ) |   | (274             | ) |   | (534             | )
|Legal fees                                          |   | 21,139     |   |   | 12,264           |   |   | 33,403           |  
|Office and miscellaneous                            |   | 6,173      |   |   | 1,576            |   |   | 7,749            |  
|Mineral property acquisition and
      explorations |   |            |   |   |                  |   |   |                  |  
|costs                                               |   | 0          |   |   | 9,699            |   |   | 9,699            |  
|Rent                                                |   | 2,700      |   |   | 2,611            |   |   | 5,311            |  
|                                                    |   |            |   |   |                  |   |   |                  |  
|Net loss for the period                             | $ | (61,027    | ) | $ | 52,680           |   | $ | 113,707          |  
|                                                    |   |            |   |   |                  |   |   |                  |  
|Basic loss per share                                | $ | (0         | ) | $ | (0               | ) |   |                  |  
|                                                    |   |            |   |   |                  |   |   |                  |  
|Weighted average number of common shares            |   |            |   |   |                  |   |   |                  |  
|outstanding                                         |   | 32,517,150 |   |   | 29,749,766       |   |   |                  |  

The accompanying notes form an integral part of these consolidated
  financial statements.

F-5

---

|COLUMBUS VENTURES INC.                                                             
|-----------------------------------------------------------------------------------
|(An Exploration Stage Company)                                                     
|CONSOLIDATED STATEMENTS OF CASH FLOWS                                              
|For the year ended September 30, 2007,                                             
|for the period October 12, 2005 (Date of Inception) to September
      30, 2006 and
|for the period October 12, 2005 (Date of Inception) to September
      30, 2007    
|(Stated in US Dollars)                                                             

|                                            |   |         |   |   | October 12, 2005 |   |   | October 12 ,2005 |  
|------------------------------------------- | - | ------- | - | - | ---------------- | - | - | ---------------- | -
|                                            |   |         |   |   | (Date of         |   |   | (Date of         |  
|                                            |   |         |   |   | Inception) to    |   |   | Inception) to    |  
|                                            |   |         |   |   | September 30,    |   |   | September 30,    |  
|                                            |   | 2007    |   |   | 2006             |   |   | 2007             |  
|Cash provided by (used in):                 |   |         |   |   |                  |   |   |                  |  
|                                            |   |         |   |   |                  |   |   |                  |  
|Operating Activities                        |   |         |   |   |                  |   |   |                  |  
|Net loss                                    | $ | (61,027 | ) | $ | (52,680          | ) | $ | (113,707         | )
|Add: Mineral property acquisition
      and |   |         |   |   |                  |   |   |                  |  
|exploration costs                           |   | 0       |   |   | 9,699            |   |   | 9,699            |  
|Change in non-cash operating
      working  |   |         |   |   |                  |   |   |                  |  
|capital item:                               |   |         |   |   |                  |   |   |                  |  
|Accounts payable and accrued liabilities    |   | (9,788  | ) |   | 17,853           |   |   | 8,065            |  
|                                            |   |         |   |   |                  |   |   |                  |  
|Cash (used in) operating activities         |   | (70,815 | ) |   | (25,128          | ) |   | (95,943          | )
|                                            |   |         |   |   |                  |   |   |                  |  
|Investing Activity                          |   |         |   |   |                  |   |   |                  |  
|Mineral property acquisition and            |   |         |   |   |                  |   |   |                  |  
|exploration costs                           |   | 0       |   |   | (9,699           | ) |   | (9,699           | )
|                                            |   |         |   |   |                  |   |   |                  |  
|Cash (used in) investing activity           |   | 0       |   |   | (9,699           | ) |   | (9,699           | )
|                                            |   |         |   |   |                  |   |   |                  |  
|Financing Activities                        |   |         |   |   |                  |   |   |                  |  
|Issuance of common stock                    |   | 0       |   |   | 100,171          |   |   | 100,171          |  
|Loan payable                                |   | 19,975  |   |   | 0                |   |   | 19,975           |  
|                                            |   |         |   |   |                  |   |   |                  |  
|Cash provided by financing activities       |   | 19,975  |   |   | 100,171          |   |   | 120,146          |  
|                                            |   |         |   |   |                  |   |   |                  |  
|Net increase (decrease) in cash             |   | (50,840 | ) |   | 65,344           |   |   | 14,504           |  
|                                            |   |         |   |   |                  |   |   |                  |  
|Cash, beginning of the period               |   | 65,344  |   |   | 0                |   |   | 0                |  
|                                            |   |         |   |   |                  |   |   |                  |  
|Cash, end of the period                     | $ | 14,504  |   | $ | 65,344           |   | $ | 14,504           |  

The accompanying notes form an integral part of these consolidated
  financial statements.

F-6

---

|COLUMBUS VENTURES INC.                                                             
|-----------------------------------------------------------------------------------
|(An Exploration Stage Company)                                                     
|CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT)                          
|For the period October 12, 2005 (Date of Inception) to September
      30, 2006 and
|the year ended September 30, 2007                                                  
|(Stated in US Dollars)                                                             

|                                    |  |               |  |   |           |  |   |             |  |   | Deficit     |   |   |         |  
|----------------------------------- |  | ------------- |  | - | --------- |  | - | ----------- |  | - | ----------- | - | - | ------- | -
|                                    |  |               |  |   |           |  |   |             |  |   | Accumulated |   |   |         |  
|                                    |  |               |  |   |           |  |   | Additional  |  |   | During the  |   |   |         |  
|                                    |  | Common Shares |  |   | Paid-in   |  |   | Exploration |  |   |             |  
|                                    |  | Number        |  |   | Par Value |  |   | Capital     |  |   | Stage       |   |   | Total   |  
|                                    |  |               |  |   |           |  |   |             |  |   |             |   |   |         |  
|Capital stock issued for cash:      |  |               |  |   |           |  |   |             |  |   |             |   |   |         |  
|- at $0.001                         |  | 25,000,000    |  | $ | 25,000    |  | $ | -           |  | $ | -           |   | $ | 25,000  |  
|- at $0.01                          |  | 7,517,150     |  |   | 7,517     |  |   | 67,654      |  |   | -           |   |   | 75,171  |  
|Net loss for the period October 12, |  |               |  |   |           |  |   |             |  |   |             |   |   |         |  
|2005 (Inception) to September 30,   |  |               |  |   |           |  |   |             |  |   |             |   |   |         |  
|2006                                |  | -             |  |   | -         |  |   | -           |  |   | (52,680     | ) |   | (52,680 | )
|                                    |  |               |  |   |           |  |   |             |  |   |             |   |   |         |  
|Balance, as at September 30, 2006   |  | 32,517,150    |  |   | 32,517    |  |   | 67,654      |  |   | (52,680     | ) |   | 47,491  |  
|                                    |  |               |  |   |           |  |   |             |  |   |             |   |   |         |  
|Net loss for the year               |  | -             |  |   | -         |  |   | -           |  |   | (61,027     | ) |   | (61,027 | )
|                                    |  |               |  |   |           |  |   |             |  |   |             |   |   |         |  
|                                    |  |               |  |   |           |  |   |             |  |   |             |   |   |         |  
|Balance, as at September 30, 2007   |  | 32,517,150    |  | $ | 32,517    |  | $ | 67,654      |  | $ | (113,707    | ) | $ | (13,536 | )

The accompanying notes form an integral part of these consolidated
  financial statements.

F-7

---

|COLUMBUS VENTURES INC.                        
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|September 30, 2007 and 2006                   
|(Stated in US Dollars)                        
|Page One                                      

|Note 1 | Nature and Continuance of
        Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       | Columbus Ventures Inc. (the Company)
        is in the exploration stage. The Company has acquired a mineral property
        located in the Province of British Columbia, Canada, and has not yet determined
        whether this property contains reserves that are economically recoverable.
        The recoverability of amounts from the property will be dependent upon
        the discovery of economically recoverable reserves, confirmation of the
        Companys interest in the underlying property, the ability of the
        Company to obtain necessary financing to satisfy the expenditure requirements
        under the property agreement and to complete the development of the property
        and upon future profitable production or proceeds from the sale thereof.                                                                                                                                            
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       | These consolidated financial
        statements have been prepared on a going concern basis. The Company has
        accumulated losses of $113,707 since inception, has yet to achieve profitable
        operations and has a capital deficit of $13,536. Its ability to continue
        as a going concern is dependent upon the ability of the Company to generate
        profitable operations in the future and/or to obtain the necessary financing
        to meet its obligations and repay its liabilities arising from normal
        business operations when the come due. Management plans to continue to
        provide for its capital needs by issuing equity securities. These consolidated
        financial statements do not include any adjustments relating to the amount
        and classification of assets and liabilities that may be necessary should
        the Company be unable to continue as a going concern.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       | The Company was incorporated
        in the State of Nevada on October 12, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Note 2 | Summary of Significant Accounting
        Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       | The consolidated financial statements of
        the Company have been prepared in accordance with accounting principles
        generally accepted in the United States of America. Because a precise
        determination of many assets and liabilities is dependent upon future
        events, the preparation of financial statements for a period necessarily
        involves the use of estimates, which have been made using careful judgement.
        Actual results may vary from these estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                   
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|       | The consolidated financial statements have,
        in managements opinion been properly prepared within the framework
        of the significant accounting policies summarized below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

F-8

---

|COLUMBUS VENTURES INC.                        
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|September 30, 2007 and 2006                   
|(Stated in US Dollars)                        
|Page Two                                      

|Note 2 | Summary of Significant Accounting Policies
      (contd)
|------ | ----------------------------------------------------------

Principles of Consolidation

The consolidated financial statements
  include the accounts of the Company and its wholly owned subsidiary, CMBS Explorations
  Inc. (CMBS). CMBS was incorporated under the Business Corporations
  Act of British Columbia on October 11, 2005. All inter-company transactions
  and accounts have been eliminated.

Exploration Stage Company

The Company complies with Financial
  Accounting Standards Board (FASB) Statement No. 7 and Securities
  and Exchange Commission Act Guide 7 in its characterization as an exploration
  stage company.

Mineral Properties and Exploration
  Costs

Mineral Rights

The Company capitalizes acquisition
  and option costs of mineral property rights where the Company believes the properties
  contain potentially mineralized material. The amount capitalized represents
  fair value at the time the mineral rights were acquired. The accumulated costs
  of acquisition for properties that are developed to the stage of commercial
  production will be amortized using the unit-of-production method.

Exploration Costs

Mineral exploration costs are expenses
  as incurred.

Environmental Costs

Environmental expenditures that relate
  to current operations are expensed or capitalized as appropriate. Expenditures
  that relate to an existing condition caused by past operations, and which do
  not contribute to current or future revenue generation, are expensed. Liabilities
  are recorded when environmental assessments and/or remedial efforts are probable,
  and the cost can be reasonably estimated. Generally, the timing of these accruals
  coincides with the earlier of completion of a feasibility study or the Companys
  commitments to a plan of action based on the then known facts.

F-9

---

|COLUMBUS VENTURES INC.                        
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|September 30, 2007 and 2006                   
|(Stated in US Dollars)                        
|Page Three                                    

|Note 2 | Summary of Significant Accounting Policies
      (contd)
|------ | ----------------------------------------------------------

Foreign Currency Translation

The Companys functional currency
  is the Canadian dollar as substantially all of the Companys operations
  are in Canada. The Company uses the United States dollar as its reporting currency
  for consistency with registrants of the Securities and Exchange Commission (SEC)
  and in accordance with the Statement of Financial Accounting Standards (SFAS)
  No. 52.

Assets and liabilities of the subsidiary
  denominated in a foreign currency are translated at the exchange rate in effect
  at the period end and capital accounts are translated at historical rates. Income
  statement accounts are translated at the average rates of exchange prevailing
  during the period. Translation adjustments arising from the use of differing
  exchange rates from period to period are included in the Accumulated Other Comprehensive
  Income (Loss) account in Stockholders Equity.

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

Income Taxes

The Company uses the asset and liability
  method of accounting for income taxes pursuant to SFAS No. 109 Accounting
  for Income Taxes. Under the assets and liability method of SFAS No. 109,
  deferred tax assets and liabilities are recognized as future tax consequences
  attributable to temporary differences between the financial statements carrying
  amounts of existing assets and liabilities and their respective tax bases. Deferred
  tax assets and liabilities are measured using enacted tax rates expected to
  apply to taxable income in the years in which those temporary differences are
  expected to be recovered or settled.

Basic and Diluted Loss Per Share

The Company reports basic loss
  per share in accordance with the SFAS No. 128, Earnings Per Share.
  Basic loss per share is computed using the weighted average number
  of shares outstanding during the period.

Diluted loss per share has not been
  provided, as it would be antidilutive.

F-10

---

|COLUMBUS VENTURES INC.                        
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|September 30, 2007 and 2006                   
|(Stated in US Dollars)                        
|Page Four                                     

|Note 2 | Summary of Significant Accounting Policies
      (contd)
|------ | ----------------------------------------------------------

Financial Instruments

The Companys financial instruments
  consist of cash, accounts payable and accrued liabilities and a loan from related
  party. Unless otherwise noted, in the opinion of management, the Company is
  not exposed to significant interest, currency or credit risk arising from these
  financial instruments. The fair value of these financial instruments approximates
  their carrying values unless otherwise noted.

Comprehensive Loss

SFAS No. 130, Reporting Comprehensive
  Income establishes standards for the reporting and display of comprehensive
  loss and its components in the financial statements. As at September 30, 2007,
  the Company has no items that represent a comprehensive loss and, therefore,
  has not included a schedule of comprehensive loss in the consolidated financial
  statements.

Cash and Cash Equivalents

Cash consists of cash on deposit with
  high quality major financial institutions, and to date has not experienced losses
  on any of its balances. For purposes of the consolidated balance sheet and statement
  of cash flows, the Company considers all highly liquid instruments with original
  maturity of three months or less at the time of issuance to be cash equivalents.
  At September 30, 2007, the Company had no cash equivalents.

Asset Retirement Obligations

The Company has adopted SFAS No. 143
  Accounting for Asset Retirement Obligations, which requires that
  an asset retirement obligation (ARO) associated with the retirement
  of a tangible long-lived asset be recognized as a liability in the period which
  it is incurred and becomes determinable, with an offsetting increase in the
  carrying amount of the associated asset.

The cost of the tangible asset, including
  the initially recognized ARO, is depleted, such that the cost of the ARO is
  recognized over the useful life of the asset. The ARO is recorded at fair value,
  and accretion expense is recognized over time as the discounted liability is
  accreted to its expected settlement value. The fair value of the ARO is measured
  using expected future cash flow, discounted at the Companys credit-adjusted
  risk-free interest rate. To date, no significant asset retirement obligation
  exists due to the early stage of exploration. Accordingly, no liability has
  been recorded.

F-11

---

|COLUMBUS VENTURES INC.                        
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|September 30, 2007 and 2006                   
|(Stated in US Dollars)                        
|Page Five                                     

|Note 2 | Summary of Significant Accounting Policies
      (contd)
|------ | ----------------------------------------------------------

Revenue Recognition

The Company recognizes revenue in accordance
  with the criteria outlined in Securities Exchange Commission Staff Accounting
  Bulletin No. 104 (SAP 104), Revenue Recognition. Revenues
  will be recognized once they are earned; specifically when: (a) services are
  provided or products are delivered to customers, (b) clear proof that an arrangement
  exists, (c) amounts are fixed or can be determined, and (d) the Companys
  ability to collect is reasonably assured.

Impairment of Long-Lived Assets

In accordance with SFAS 144 Accounting
  for the Impairment or Disposal of Long-Lived Assets, the Company records
  impairment losses on long-lived assets used in operations when indicators of
  impairment are present and the undiscounted cash flows estimated to be generated
  by those assets are less than the assets carrying amount. In such cases,
  the amount of the impairment is determined based on the relative fair values
  of the impaired assets.

Regulatory Matters

The Company and its mineral property
  interest is subject to a variety of federal and provincial regulations governing
  land use, health, safety and environmental matters. The Companys management
  believes it has been in substantial compliance with all such regulations, and
  is unaware of any pending action or proceeding relating to regulatory matters
  that would affect the financial position of the Company.

|Note 3 | Mineral Property
|------ | ----------------

Cheryl Comego Claim Group

On October 24, 2005, the Company acquired
  a 100% undivided right, title and interest in and to the Cheryl Comego mineral
  claims (12 units) located in the Alberni Mining Division in the Province of
  British Columbia, Canada for $3,500. The Company has not determined whether
  the mineral claim contains mineralized material and has consequently written
  off all mineral rights acquisition costs to operations. As of September 30,
  2007, the Company incurred an aggregate of $6,199 of exploration costs.

F-12

---

|COLUMBUS VENTURES INC.                        
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|September 30, 2007 and 2006                   
|(Stated in US Dollars)                        
|Page Six                                      

|Note 4 | Recent Accounting Pronouncements
|------ | --------------------------------

a) In June 2006, FASB issued FASB Interpretation
  No. 48, Accounting for Uncertainty in Income Taxes - an interpretation
  of FASB Statement No. 109, which prescribes a recognition threshold and
  measurement attribute for the financial statement recognition and measurement
  of a tax position taken or expected to be taken in a tax return. FIN 48 also
  provides guidance on de-recognition, classification, interest and penalties,
  accounting in interim periods, disclosure and transition. FIN 48 is effective
  for fiscal years beginning after December 15, 2006. The Company does not expect
  the adoption of FIN 48 to have a material effect on its financial condition
  or results of operations.

b) In September 2006, FASB issued SFAS
  No. 157, Fair Value Measurements which defines fair value, establishes
  a framework for measuring fair value in generally accepted accounting principles
  (GAAP), and expands disclosures about fair value measurements. Where applicable,
  SFAS No. 157 simplifies and codifies related guidance within GAAP and does not
  require any new fair value measurements. SFAS No. 157 is effective for financial
  statements issued for fiscal years beginning after November 15, 2007, and interim
  periods within those fiscal years. Earlier adoption is encouraged. The Company
  does not expect the adoption of SFAS No. 157 to have a material effect on its
  financial condition or results of operations.

c) In September 2006, the SEC announced
  Staff Accounting Bulletin No. 108 (SAB 108). SAB 108 addresses how
  to quantify financial statement errors that arose in prior periods for purposes
  of assessing their materiality in the current period. It requires analysis of
  misstatements using both an income statement (rollover) approach and a balance
  sheet (iron curtain) approach in assessing materiality. It clarifies that immaterial
  financial statement errors in a prior SEC filing can be corrected in subsequent
  filings without the need to amend the prior filing. In addition, SAB 108 provides
  transitional relief for correcting errors that would have been considered immaterial
  before its issuance. The Company does not expect the adoption of SAB 108 to
  have a material effect on its financial condition or results of operations.

d) In December 2006, the FASB issued
  FASB Staff Position (FSP) EITF 00-19-2, Accounting for Registration
  Payment Arrangements. This FSP specifies that the contingent obligation
  to make future payments or otherwise transfer consideration under a registration
  payment arrangement should be separately recognized and measured in accordance
  with FASB No. 5, Accounting for Contingencies. This FSP is effective
  immediately for registration payment arrangements and the financial instruments
  subject to those arrangements that were entered into or modified subsequent
  to December 31, 2006. For registration payment arrangements and financial instruments
  subject to those arrangements that were entered into prior to December 31, 2006,
  the guidance in the FSP is effective January 1, 2006 for the Company. The Company
  does not believe that this FSP will have a material impact on its financial
  position or results from operations.

F-13

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|COLUMBUS VENTURES INC.                        
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|September 30, 2007 and 2006                   
|(Stated in US Dollars)                        
|Page Seven                                    

|Note 4 | Recent Accounting Pronouncements(Contd)
|------ | ----------------------------------------

e) On February 15, 2007, the FASB issued
  SFAS No. 159 The Fair Value Option for Financial Assets and Financial
  Liabilities. This Statement establishes presentation and disclosure requirements
  designed to facilitate comparisons between companies that choose different measurement
  attributes for similar types of assets and liabilities. SFAS No. 159 is effective
  for the Companys financial statements issued in 2008. The Company is currently
  evaluating the impact that the adoption of SFAS No. 159 might have on its financial
  position or results of operations.

|Note 5 | Loan Payable                                                                                                                                                                                                                                                                                     
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                  
|       | A consultant to the Company has
        advanced $19,975. The loan is repayable on demand, unsecured and non-interest
        bearing.                                                                                                                                                           
|       |                                                                                                                                                                                                                                                                                                  
|Note 6 | Share Capital                                                                                                                                                                                                                                                                                    
|       |                                                                                                                                                                                                                                                                                                  
|       | On October 19, 2005, the Company
        issued 25,000,000 common shares at $0.001 for total cash proceeds of $25,000
        to the president and director of the Company.
      On January 31, 2006, the Company issued 7,517,150 common
        shares at $0.01 for total proceeds of $75,171.
|       |                                                                                                                                                                                                                                                                                                  
|       | As at September 30, 2006, there
        were no outstanding stock options or warrants.                                                                                                                                                                                                           
|       |                                                                                                                                                                                                                                                                                                  
|Note 7 | Contractual Obligations                                                                                                                                                                                                                                                                          
|       |                                                                                                                                                                                                                                                                                                  
|       | The Company has no significant
        commitments or contractual obligations with any parties respecting executive
        compensation, consulting arrangements or other matters, except as disclosed.
        Rental of premises is on a month-to-month basis.                                

F-14

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|COLUMBUS VENTURES INC.                        
|----------------------------------------------
|(An Exploration Stage Company)                
|NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
|September 30, 2007 and 2006                   
|(Stated in US Dollars)                        
|Page Eight                                    

|Note 8 | Income Taxes
|------ | ------------

The significant components of the Companys
  deferred tax assets are as follows:

| | a) | Income Tax Provision                                                                                                                                                                                                                 
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                      
| |    | The provision for income taxes differs from the result
        that would be obtained by applying the statutory income tax rate of 34%
        to income before income taxes. The difference results from the following
        item:

| |                                 |   | October 12, 2005   |   |   | October 1, 2006    |  
| | ------------------------------- | - | ------------------ | - | - | ------------------ | -
| |                                 |   | (Inception) to     |   |   | to                 |  
| |                                 |   | September 30, 2006 |   |   | September 30, 2007 |  
| |                                 |   |                    |   |   |                    |  
| | Computed expected (benefit of)  |   |                    |   |   |                    |  
| | income taxes                    | $ | (17,911            | ) | $ | (20,749            | )
| | Increase in valuation allowance |   | 17,911             |   |   | 20,749             |  
| |                                 |   |                    |   |   |                    |  
| | Income tax provision            | $ | 0                  |   | $ | 0                  |  

| | b) | Significant component of the Companys deferred
      income tax assets are as follows:
| | -- | ---------------------------------------------------------------------------------------

| |                                  |   |         |   |   | September 30, 2007 |  
| | -------------------------------- | - | ------- | - | - | ------------------ | -
| |                                  |   |         |   |   |                    |  
| | Operating loss carry-forwards    | $ | 42,981  |   | $ | 61,027             |  
| | Mineral property acquisition and |   |         |   |   |                    |  
| | exploration costs                |   | 9,699   |   |   | 0                  |  
| |                                  |   | 52,680  |   |   | 61,027             |  
| | Statutory tax rate               |   | 34%     |   |   | 34%                |  
| |                                  |   |         |   |   |                    |  
| | Deferred income tax assets       |   | 17,911  |   |   | 20,749             |  
| | Valuation allowance              |   | (17,911 | ) |   | (20,749            | )
| |                                  |   |         |   |   |                    |  
| | Net deferred tax assets          | $ | 0       |   | $ | 0                  |  

| | c) | The Company has incurred operating losses of approximately
        $104,008, which, if unutilized, will expire through to 2027. Subject to
        certain restrictions, the Company has mineral property expenditures of
        $9,699 available to reduce future taxable income. Future tax benefits,
        which may arise as a result of these losses and mineral property expenditures,
        have not been recognized in these consolidated financial statements, and
        have been offset by a valuation allowance.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

F-15

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|ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH
      ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
|------- | -------------------------------------------------------------------------------------------

On October 19, 2007, we received a notice dated October 6, 2007
that Telford Sadovnick, P.L.L.C. (Telford Sadovnick), its independent public
accountants, resigned as our auditors. Telford Sadovnick stated that they were
resigning as our independent auditor due to the fact that Telford Sadovnick had
withdrawn its registration with the Public Company Accountability Oversight
Board and is no longer able to audit US issuers.

Telford Sadovnicks reports on our financial statements for the
period from October 12, 2005 (inception) to September 30, 2006 did not contain
an adverse opinion or disclaimer of opinion, nor were they modified or qualified
as to uncertainty, audit scope or accounting principles with the exception of a
statement regarding the uncertainty of our ability to continue as a going
concern.

During the period from October 12, 2005 (inception) to
September 30, 2006 and any subsequent interim period up to and including the
date of resignation, there were no disagreements between the Company and Telford
Sadovnick on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure, which, if not resolved to
the satisfaction of Telford Sadovnick, would have caused them to make reference
to the subject matter of the disagreement in connection with Telford Sadovnicks
report for the financial statements for the past year and any subsequent interim
period up to and including to the date of Telford Sadovnicks resignation.

On October 29, 2007, our Board of Directors appointed LBB &
Associates Ltd., LLP (LBB) as our new independent registered public accounting
firm following the resignation of Telford Sadovnick, P.L.L.C. Prior to its
appointment as independent accountants, we did not consult LBB on any of the
matters referenced in Item 304(a)(2) of Regulation S-B.

|ITEM 8A. | CONTROLS AND PROCEDURES.
|-------- | ------------------------

Under the supervision and with the participation of our
management, including the Chief Executive Officer and Chief Financial Officer,
we have evaluated the effectiveness of our disclosure controls and procedures as
required by Exchange Act Rule 13a-15(b) as of the end of the period covered by
this report. Based on that evaluation, the Chief Executive Officer and Chief
Financial Officer has concluded that these disclosure controls and procedures
are effective.

There were no changes in our internal control over financial
reporting during the year ended September 30, 2007 that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.

|ITEM 8B. | OTHER INFORMATION.
|-------- | ------------------

Adoption of Code Of Ethics

On January 15, 2008, we adopted a Code of Ethics applicable to
  our Chief Executive Officer, Chief Financial Officer, Corporate Controller and
  certain other finance executives, which is a code of ethics as defined
  by applicable rules of the SEC. Each director and officer of the Corporation
  must comply with the letter and spirit of the Code of Ethics. This purpose of
  the Code of Ethics is to:

|1. | focus the Board of Directors and each director and
      officer on areas of ethical risk;
|-- | ------------------------------------------------------------------------------------------
|2. | provide guidance to directors to help them recognize and
      deal with ethical issues;  
|3. | provide mechanisms to report unethical conduct;
  and                                     
|4. | help foster a culture of honesty and
    accountability.                                  

Our Code of Ethics is attached as an exhibit to this Annual
Report on Form 10-KSB for the year ended September 30, 2007.

20

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PART III

|ITEM 9. | DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL
      PERSONS AND CORPORATE GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF
      THE EXCHANGE ACT.
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------

Our sole executive officer and director and her age and titles
as of September 30, 2007 are as follows:

|Name          | Age | Position                                                                                             
|------------- | --- | -----------------------------------------------------------------------------------------------------
|              |     |                                                                                                      
|Lubow Klauser | 28  | Director, President, Secretary,
      Treasurer, Chief Executive Officer, and Chief Financial Officer

Set forth below is a brief description of the background and
business experience of our sole executive officer and director:

Lubow Klauseris our President, Secretary, Treasurer and
our sole director. Ms. Klauser attended Wirtschaftsschule in Backnang, Germany.
She obtained the equivalent of a Bachelors degree in Business Administration.
Since 2003, Ms. Klauser has been a junior research analyst consultant for
Excellerate Ltd. in London, UK where she researches companies in the high tech
sector in English, German and Israeli markets, assists in building strategies
for entering new markets, conducts market surveys for new products and
identifies and assists in developing relationships with new and existing
clients. From 2002 to 2003, Ms. Klauser was a production assistant for
Ringaround Production Company in Milan, Italy, where she coordinated locations
for fashion events and commercials, obtained location permits, arranged
catering, model casting and photographers. From 2000 to 2002, Ms. Klauser was an
assistant event manager for Faces Events in Stuttgart, Germany where she
arranged fashion shows, corporate events and sponsorships. From 2000 to 2001,
Ms. Klauser was a fashion scout for Salamander Shoe Company in Stuttgart,
Germany.

Ms. Klauser does not have formal training as a geologist or in
the technical or managerial aspects of management of a mineral exploration
company. Her prior business experiences have not been in the mineral exploration
industry. Accordingly, we will have to rely on the technical services of others
to advise us on the managerial aspects specifically associated with a mineral
exploration company. We do not have any employees who have professional training
or experience in the mining industry. We rely on independent geological
consultants to make recommendations to us on work programs on our property, to
hire appropriately skilled persons on a contract basis to complete work programs
and to supervise, review, and report on such programs to us.

Term of Office

Our directors are appointed for a one-year term to hold office
until the next annual general meeting of our stockholders or until removed from
office in accordance with our Bylaws. Our officers are appointed by our board of
directors and hold office until removed by the board.

Significant Employees

We have no significant employees other than our sole officer
and director. We conduct our business through agreements with consultants and
arms-length third parties.

Committees of the Board Of Directors

We do not presently have a separately constituted audit
committee, compensation committee, nominating committee, executive committee or
any other committees of our Board of Directors. As such, Ms. Klauser, acts in
those capacities as our sole director.

21

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Audit Committee Financial Expert

Ms. Klauser is our sole director and does not qualify as an
audit committee financial expert. We believe that the cost related to
retaining such a financial expert at this time is prohibitive. Further, because
we are in the start-up stage of our business operations, we believe the services
of an audit committee financial expert are not warranted at this time.

CODE OF ETHICS

We adopted a Code of Ethics applicable to our Chief Executive
Officer, Chief Financial Officer, Corporate Controller and certain other finance
executives, which is a code of ethics as defined by applicable rules of the
SEC. Our Code of Ethics is attached as an exhibit to this Annual Report on Form
10-KSB for the year ended September 30, 2007. If we make any amendments to our
Code of Ethics other than technical, administrative, or other non-substantive
amendments, or grant any waivers, including implicit waivers, from a provision
of our Code of Ethics to our Chief Executive Officer, Chief Financial Officer,
Corporate Controller, or certain other finance executives, we will disclose the
nature of the amendment or waiver, its effective date and to whom it applies in
a Current Report on Form 8-K filed with the SEC.

COMPLIANCE WITH SECTION 16(a) OF THE SECURITIES EXCHANGE ACT

Section 16(a) of the Exchange Act requires our executive
officers and directors, and persons who beneficially own more than 10% of our
equity securities (collectively, the Reporting Persons), to file reports of
ownership and changes in ownership with the SEC. Reporting Persons are required
by SEC regulation to furnish us with copies of all forms they file pursuant to
Section 16(a). Based on our review of the copies of such forms received by us,
other than as described below, no other reports were required for those persons.
We believe that during the year ended September 30, 2007 all Reporting Persons
complied with all Section 16(a) filing requirements applicable to them.

|ITEM 10. | EXECUTIVE COMPENSATION.
|-------- | -----------------------

Summary Compensation Table

We did non pay any compensation to our sole executive officer
and sole director during the fiscal year ended September 30, 2007.

Outstanding Equity Awards At Fiscal Year End

As at September 30, 2007, we did not have any outstanding
equity awards.

Employment Contracts

We have no employment contracts, termination of employment or
change-in-control arrangements with any of our executive officers or directors.

|ITEM 11. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
      MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
|-------- | -----------------------------------------------------------------------------------------------------

EQUITY COMPENSATION PLANS

We have no equity compensation plans (including individual
compensation arrangements) under which our equity securities are authorized for
issuance.

22

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

The following table sets forth certain information concerning
the number of shares of our common stock owned beneficially as of January 8,
2008 by: (i) each person (including any group) known to us to own more than five
percent (5%) of any class of our voting securities, (ii) each of our directors,
(iii) each of our named executive officers; and (iv) officers and directors as a
group. Unless otherwise indicated, the shareholder listed possesses sole voting
and investment power with respect to the shares shown.

Title of Class
    Name and Address of Beneficial Owner
    Amount and Nature of Beneficial
      Ownership
    Percentage of Common
      Stock(1)DIRECTORS AND EXECUTIVE OFFICERSCommon Stock
    Lubow Klauser Chief
      Executive Officer, Chief Financial Officer, President, Secretary &
      Treasurer Director
    25,000,000 Shares Direct
    76.9%Common Stock
    All Directors and Executive
      Officers as a Group (1 person)
    25,000,000 Shares
    76.9%5% STOCKHOLDERSCommon Stock
    Lubow Klauser Chief
      Executive Officer, Chief Financial Officer, President, Secretary &
      Treasurer Director Uhlandstrasse 7 71549 Auenwald, Germany
    25,000,000 Shares Direct
    76.9%


|Notes: |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1)    | Based on 32,517,150 shares of our common stock issued and
      outstanding as of January 8, 2008. Under Rule 13d-3, certain shares may be
      deemed to be beneficially owned by more than one person (if, for example,
      persons share the power to vote or the power to dispose of the shares). In
      addition, shares are deemed to be beneficially owned by a person if the
      person has the right to acquire the shares (for example, upon exercise of
      an option) within 60 days of the date as of which the information is
      provided. In computing the percentage ownership of any person, the amount
      of shares outstanding is deemed to include the amount of shares
      beneficially owned by such person (and only such person) by reason of
      these acquisition rights. As a result, the percentage of outstanding
      shares of any person as shown in this table does not necessarily reflect
      the persons actual ownership or voting power with respect to the number
      of shares of common stock actually outstanding on January 8, 2008.

CHANGE IN CONTROL

We are not aware of any arrangement that might result in a
change in control in the future.

|ITEM 12. | CERTAIN RELATIONSHIPS AND
      RELATED TRANSACTIONS, AND DIRECTORINDEPENDENCE.
|-------- | -------------------------------------------------------------------------------

Except as described below, none of the following parties has,
since our date of incorporation, had any material interest, direct or indirect,
in any transaction with us or in any presently proposed transaction that has or
will materially affect us, other than noted in this section:

| | (i)  | Any of our directors or officers;                                 
| | ---- | ------------------------------------------------------------------
| | (ii) | Any person proposed as a nominee for election as a
      director;

23

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| | (iii) | Any person who beneficially owns, directly or indirectly,
      shares carrying more than 10% of the voting rights attached to our
      outstanding shares of common stock;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iv)  | Any of our promoters; and                                                                                                                                                   
| | (v)   | Any relative or spouse of any of the foregoing persons
      who has the same house as such person.                                                                         

On October 19, 2005, we issued 25,000,000 shares of common
stock to our sole executive officer and sole director, Lubow Klauser, at a price
of $0.001 per share. The shares were issued pursuant to Section 4(2) of the
Securities Act and are restricted shares as defined in the Securities Act.

Director Independence

Quotations for our common stock are entered on the OTC Bulletin
Board inter-dealer quotation system, which does not have director independence
requirements. For purposes of determining director independence, we have applied
the definitions set out in NASDAQ Rule 4200(a)(15). Under NASDAQ Rule
4200(a)(15), a director is not considered to be independent if he or she is also
an executive officer or employee of the corporation. Ms. Klauser acts as our
sole director and as our sole executive officer. As such, we do not have any
independent directors

|ITEM 13. | EXHIBITS.
|-------- | ---------

|Exhibit |                                                                                                                                                           
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description of Exhibits                                                                                                                                   
|3.1     | Articles of Incorporation.
        (1)                                                                                                                    
|3.2     | Bylaws, as amended. (1)                                                                                                                                   
|10.1    | Purchase Agreement
        dated October 24, 2005 between Christopher Normand Delorme and CMBS Explorations
        Inc. (1)                              
|14.1    | Code
        of Ethics.                                                                                                                                   
|21.1    | List
        of Subsidiaries.                                                                                                                             
|31.1    | Certification
        of Chief Executive Officer and Chief Financial Officer as adopted pursuant
        to Section 302 of the Sarbanes-Oxley Act of 2002.
|32.1    | Certification
        of Chief Executive Officer and Chief Financial Officer as adopted pursuant
        to Section 906 of the Sarbanes-Oxley Act of 2002.
|        |                                                                                                                                                           
|        |                                                                                                                                                           
|(1)     | Previously filed as an exhibit
      to our Registration Statement on Form SB-2 filed on November 21, 2006.                                               

24

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|ITEM 14. | PRINCIPAL AND ACCOUNTANT FEES AND
      SERVICES.
|-------- | -------------------------------------------------

Audit Fees

The aggregate fees billed for the two most recently completed
fiscal year ended September 30, 2007 and the period from inception on October
12, 2005 to September 30, 2006 for professional services rendered by the
principal accountant for the audit of our annual financial statements and review
of the financial statements included our Quarterly Reports on Form 10-QSB and
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for these fiscal periods were as
follows:

Year Ended September 30, 2007
    Period from Inception on October
      12, 2005 to September 30, 2006Audit Fees
    $2,950
    $23,150Audit Related Fees
    $Nil
    $NilTax Fees
    $Nil
    $NilAll Other Fees
    $Nil
    $NilTotal
    $2,950
    $23,150


25

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|      |                  |  |     | COLUMBUS VENTURES INC.                                
|----- | ---------------- |  | --- | ------------------------------------------------------
|      |                  |  |     |                                                       
|      |                  |  |     |                                                       
|      |                  |  |     |                                                       
|Date: | January 15, 2008 |  | By: | /s/
      Lubow Klauser                               
|      |                  |  |     | LUBOW KLAUSER                                         
|      |                  |  |     | Chief Executive Officer, Chief Financial
      Officer
|      |                  |  |     | President, Secretary and Treasurer                    
|      |                  |  |     | (Principal Executive Officer                          
|      |                  |  |     | and Principal Accounting Officer)                     

In accordance with the Exchange Act, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.

|Date: | January 15, 2008 |  | By: | /s/
      Lubow Klauser                               
|----- | ---------------- |  | --- | ------------------------------------------------------
|      |                  |  |     | LUBOW KLAUSER                                         
|      |                  |  |     | Chief Executive Officer, Chief Financial
      Officer
|      |                  |  |     | President, Secretary and Treasurer                    
|      |                  |  |     | Director                                              
|      |                  |  |     | (Principal Executive Officer                          
|      |                  |  |     | and Principal Accounting Officer)                     

---