| NEVADA                               |   | 06-1588136                  |
|--------------------------------------|--------|-----------------------------|
| (State      or Other Jurisdiction of |   | (IRS      Employer          |
| Incorporation      or Organization)  |   | Identification      Number) |

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|   |  TABLE      OF CONTENTS |
|--------|------------------------------|

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| ANGEL      ACQUISITION CORP.(Formerly      Palomar Enterprises, Inc.).               |
|--------------------------------------------------------------------------------------|
| Balance      Sheet                                                                   |
| as      of June 30, 2008                                                             |
| (unaudited)                                                                          |
|                                                                                 |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   | June      30, |
|                                                                                 |   |   |   |   |   | 2008 |
| ASSETS:                                                                              |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |
|                                                                                 | Notes      Receivable |   |   | $ | 820,896 |
|                                                                                 | Prepaids      and other current assets |   |   | - |
| Total      current assets                                                            |   |   | 820,896 |
|                                                                                 | Other      assets |   |   |   |   |   | 65,964 |
| Property,      plant and equipment, net of accumulated depreciation of      $135,585 |   | 1,294,195 |
| Goodwill                                                                             |   |   | - |
|                                                                                 |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                    |   | $ | 2,181,055 |
|                                                                                 |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                            |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |
| LIABILITIES:                                                                         |   |   |   |
|                                                                                 | Cash      Overdraft |   | $ | 14,640 |
|                                                                                 | Accrued      expenses |   |   | 265,261 |
|                                                                                 |  Accrued      Derivative |   |   | 650,291 |
|                                                                                 | Current      portion of notes payable |   |   | 2,074,239 |
| Total      current liabilities                                                       |   |   | 3,004,431 |
|                                                                                 |   |   |   |   |   |   |   |
|                                                                                 | Notes      payable, long term |   |   | 748,972 |
|                                                                                 |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                                               |   |   | 3,753,403 |
|                                                                                 |   |   |   |   |   |   |   |
| MINORITY      INTEREST                                                               |   |   |   |

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| ANGEL      ACQUISITION CORP.(Formerly      Palomar Enterprises, Inc.). |
|------------------------------------------------------------------------|
|  Balance      Sheet, continued                                    |
| As      of June 30, 2008                                               |
| (unaudited)                                                            |
|                                                                   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   | June      30 |
|                                                                   |   |   |   |   |   | 2008 |
| STOCKHOLDERS' EQUITY:                                                  |   |   |   |
|                                                                   | Preferred      stock, $0.00001 par value, 10,000,000 shares |   |   |
|                                                                   |   | authorized,      no shares issued or outstanding |   |   |
|                                                                   | Series      A preferred stock, $0.00001 par value, 10,000,000shares |
|                                                                   |   | authorized,      9,000,000 shares issued andoutstanding |   |   | 90 |
|                                                                   | Series      B preferred stock, $0.00001 par value, 50,000,000 shares |   |
|                                                                   |   | authorized,      30,000,000 shares issued and outstanding |   | 300 |
|                                                                   | Series      C preferred stock, $0.00001 par value, 30,000,000 shares |   |
|                                                                   |   | authorized,      no shares issued or outstanding |   | - |
|                                                                   | Common      stock, $0.00001 par value, 25,000,000,000 shares |   |   |
|                                                                   |   | authorized,      1,759,001 shares issued and outstanding |   | 18 |
|                                                                   | Shares      Subscribed | (145,000) |
|                                                                   |   |   |   |
|                                                                   | Additional      paid in Capital |   |   | 15,060,016 |
|                                                                   | Accumulated      Deficit |   |   | (16,487,772) |
|                                                                   |   |   |   |   |
| Total      stockholders' deficit                                       |   |   | (1,572,348) |
|                                                                   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' DEFICIT                       |   | $ | 2,181,055 |
|                                                                   |   |   |   |   |   |   |   |

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| ANGEL      ACQUISITION CORP.(Formerly      Palomar Enterprises, Inc.).    |                                                      |                                 |      |
|---------------------------------------------------------------------------|-----------------------------------------------------------|--------------------------------------|-----------|
|  Statements      of Operations                                       |                                                      |                                 |      |
| For      the Six Months and Three Months Ended June 30, 2008, and    2007 |                                                      |                                 |      |
| (unaudited)                                                               |                                                      |                                 |      |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |                                                      |                                 |      |   |   | For      the Six Months Ended |   | For      the Three Months Ended |   |   |   |
|                                                                      |                                                      |                                 |      |   |   | June      30, |   | June      30, |   |   |   |
|                                                                      |                                                      |                                 |      |   |   | 2008 |   | 2007 |   | 2008 |   | 2007 |   |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                   |                                                      | $                                    | 139,745   |   | $ | 331,167 |   | $ | 21,512 |   | $ | 109,599 |   |   |   |
| Cost      of goods sold                                                   |                                                      |                                 | 40,880    |   |   | 221,568 |   |   | 6,143 |   |   | 62,999 |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                         |                                                      |                                 | 98,865    |   |   | 109,599 |   |   | 15,369 |   |   | 46,600 |   |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                  |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      | General      and administrative                           |                                 |      | 146,035 |   |   | 133,357 |   |   | 80,775 |   |   | 69,534 |   |   |   |
|                                                                      | Facilities      and rent                                  |                                 |      | 20,962 |   |   | 30,306 |   |   | 14,161 |   |   | 13,918 |   |   |   |
|                                                                      | Consulting,      legal and professional                   |                                 |      | 220,153 |   |   | 941,276 |   |   | 66,502 |   |   | 308,639 |   |   |   |
|                                                                      | Payroll      and related costs                            |                                 |      | 267,920 |   |   | 158,036 |   |   | 249,900 |   |   | 35,553 |   |   |   |
| Total      operating expenses                                             |                                                      |                                 | 655,070   |   |   | 1,262,975 |   |   | 411,338 |   |   | 427,644 |   |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from  operations                                      |                                                      |                                 | (556,205) |   |   | (1,153,376) |   |   | (395,969) |   |   | (381,044) |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      income or (expense)                                            |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      | Interest      expense                                     |                                 |      | (77,257) |   |   | (98,526) |   |   | (28,668) |   |   | (49,751) |   |   |
|                                                                      |  JV      /derivative loss/gain on sale of subsidiary |                                 |      | (63,273) |   |   | (225,827) |   |   | (242,570) |   |   | (220,052) |   |   |
|                                                                      |                                                      | Total      other income or (expense) |      |   | (140,530) |   |   | (324,353) |   |   | (271,238) |   |   | (269,803) |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                                                                    |                                                      |                                 | (696,735) |   |   | (1,477,729) |   |   | (667,207) |   |   | (650,847) |   |   |
|                                                                      |                                                      |                                 |      |   |   |   | 85,732  |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinuedOperations/gain      on sale                   |                                                      |                                 | (212,304) |   |   | (1,506,236) |   |   | - |   |   |   (650,847) |   |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss)                                                           |                                                      |                                 | (823,287) |   |   | (2,983,935) |   |   | (667,207) |   |   | (881,898) |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      | common      shares outstanding - basic                    |                                 |      | 1,599,101 |   |   | 1,862,484 |   |   | 1,079,401 |   |   | 1,087,980 |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) per share from continuing operations- basic               |                                                      | $                                    | (0.348)   |   | $ | (0.619) |   | $ | (0.367) |   | $ | (0.350) |   |
| Net      (loss) per share from discontinued operations – basic      |                                                      |                                 | (0.079)   |   |   | (0.809) |   |   | (0.00) |   |   | (0.598) |   |
| Net      loss per share                                                   |                                                      |                                 | (.5148)   |   |   | (0.624) |   |   | (.6181) |   |   | (0.811) |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |                                                      |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| ANGEL      ACQUISITION CORP.  (Formerly      Palomar Enterprises, Inc.). |
|------------------------------------------------------------------------------------|
|  Statements      of Cash Flows                                                |
| For      the Six Months Ended June 30, 2008 and 2007                               |
| (unaudited)                                                                        |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   | For      the Six Months Ended |
|                                                                               |   |   |   |   |   | June      30, |
|                                                                               |   |   |   |   |   | 2008 |   | 2007 |
| Cash      flows from operating activities                                          |   |   |   |   |   |   |
| Net      (loss) for the period                                                     |   | $ |             (610,983) |   | $ | (1,477,729) |
| Minority      interest in net loss/gain on sale                                    |   |   |             (      77,310) |   |   | 9,577 |
| Adjustments      to reconcile net (loss) to                                        |   |   |   |   |   |   |
|                                                                               | net      cash (used) by operating activities: |   |   |   |   |   |   |
|                                                                               | Depreciation |   |   |                14,280 |   |   | 16,600 |
|                                                                               | Common      stock issued for services |   |   |                73,750 |   |   | 1,144,673 |
|                                                                               | Accrued      Derivative liability |   |   |                52,151 |   |   | 244,892 |
| Changes      in operating assets and liabilities:                                  |   |   |   |   |   |   |
|                                                                               | Decrease      in inventory |   |   |   |   |   |   |
|                                                                               | (Increase)      decrease in prepaid expenses/other |   |   |                27,858 |   |   | 7,437 |
|                                                                               |  (Increase      ) in notes receivable |   |   |              (57,900) |   |   | (170,500) |
|                                                                               | Increase      in accounts payable and accrued expenses |   |   |                39,518 |   |   | 52,263 |
| Net      cash (used) by operating activities                                       |   |   |             (538,636) |   |   | (172,787) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities                                          |   |   |   |   |   |   |
|                                                                               | Purchase      of property and equipment/sale/net |   |   |   |   |   | 115,000 |
|                                                                               | Cash      portion on sale of subsidiary |   |   |             363,000 |   |   |   |
| Net      cash (used) by investing activities                                       |   |   |             363,000 |   |   | 115,000 |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities                                          |   |   |   |   |   |   |
|                                                                               | Proceeds      from note payable/net of repayments |   |   |              35,409 |   |   |   |
|                                                                               | Shares      issued for debt reduction |   |   |             (9,053) |   |   | (93,808) |
|                                                                               | Proceeds      from sale of common stock/stock subscribed |   |   |            119,729 |   |   | 126,141 |
|                                                                               | Cash      overdraft |   |   |              14,640 |   |   | 2,014 |
| Net      cash provided by financing activities                                     |   |   |            160,725 |   |   | 34,347 |
|                                                                               |   |   |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in cash                                               |   |   |               (14,911) |   |   | (23,440) |
| Cash      – beginning                                                        |   |   |                  14,911 |   |   | 23,440 |
| Cash      – ending                                                           |   | $ |                                0 |   | $ |         0 |

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| ANGEL      ACQUISITION CORP.(Formerly      Palomar Enterprises, Inc.). |
|------------------------------------------------------------------------|
| Consolidated      Statements of Cash Flows, continued                  |
| For      the Six Months Ended June 30, 2008 and 2007                   |
| (unaudited)                                                            |
|                                                              |   |   |   |   |   |   | For      the Six Months Ended |
|                                                                   |   |   |   |   |   |   | June      30, |
|                                                                   |   | 2008 |   | 2007 |
|                                                                   |   |   |   |   |   |   |
| Supplemental      disclosures:                                         |   |   |   |   |   |   |
|                                                                   | Interest      paid |   | $ |   |   | $ | 22,216 |
|                                                                   | Income      taxes paid |   | $ | - |   | $ | - |
|                                                                   |   |   |   |   |   |   |   |   |   |   |
| Non-cash      investing and financing activities:                      |   |   |   |   |   |   |
|                                                                   | Common      stock issued for services |   | $ |   |   | $ | 1,144,673 |
|                                                                   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |   |   |   |   |   |   |   |   |   |

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| Building                                                             $1,395,612Office      equipment                                                         34,168         Total                                                           1,429,780Less:      Accumulated      depreciation                      (135,585)                                      Property      & equipment,      net                            $1,294,195                                                                          ======== |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      payable to lending institution, originalbalance      of $980,000interest at 7.5% per annum.Requires      monthly principal and interest paymentsof      6,852 through 2034. Collateralized by      building.                                         $     773,980  Convertible      debentures payable to an      investor                                             $1,183,167group,      interest at 8% due no later than March 2009. Convertible      note to investors due short term 20%Interest                                                                                                                        45,0007.875%      and 9.25% over prime interest only for the first tenyears      then amortized over 360 months. Credit      line from a bank up to 500,000 interest      only                                       496,064at      one percent over prime. Convertible      debenture, interest 8%, past      due                                                   325,000                                              Total                                                                  $2,823,211                               Less      current      portion                                                       2,074,239                                  Total long-term      portion                                                $   748,972                                                                                                                            ======== |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 31.1          Certification of Chief Executive Officer pursuant to 18      U.S.C. Sec.1350, as adopted pursuant   to Sec.302 of the      Sarbanes-Oxley Act of 2002. |
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|   | 31.2          Certification of Chief Financial Officer pursuant to 18      U.S.C. Sec.1350, as adopted pursuant to   Sec.302 of the      Sarbanes-Oxley Act of 2002 |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1          Certification of Chief Executive Officer, pursuant to 18      U.S.C. Sec.1350, as adopted pursuant   to Sec.906 of the      Sarbanes-Oxley Act of 2002. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2          Certification of Chief Financial Officer pursuant to 18      U.S.C. Sec.1350, as adopted pursuant to   Sec.906 of the      Sarbanes-Oxley Act of 2002. |
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