----

----

----

| x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------|

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

| Nevada                                   | 59-3509694          |
|------------------------------------------|---------------------|
| (State or other jurisdiction of          | (I.R.S. Employer    |
| incorporation or organization)           | Identification No.) |
|                                     |                |
| 9192 Red Branch Road, Suite 110          |                |
| Columbia, Maryland                       | 21045               |
| (Address of principal executive offices) | (Zip Code)          |

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

----

----

----

| PART I    FINANCIAL INFORMATION                                                      |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                     |   |
| Item 1.  Consolidated Financial Statements (Unaudited)                                         |   |
|                                                                                                     |   |
| Consolidated Balance Sheets                                                                              | 3 |
|                                                                                                     |   |
| Consolidated Statements of Operations                                                                    | 4 |
|                                                                                                     |   |
| Consolidated Statements of Stockholders’ Equity (Deficit)                                          | 5 |
|                                                                                                     |   |
| Consolidated Statements of Cash Flows                                                                    | 6 |
|                                                                                                     |   |
| Notes to Consolidated Financial Statements                                                               | 7 |
|                                                                                                     |   |
| Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations | 20 |
|                                                                                                     |   |
| Item 4.  Controls and Procedures                                                               | 28 |
|                                                                                                     |   |
| PART II OTHER INFORMATION                                                                                |
|                                                                                                     |   |
| Item 1.  Legal Proceedings                                                                     | 29 |
|                                                                                                     |   |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                           | 29 |
|                                                                                                     |   |
| Item 3.  Defaults Upon Senior Securities                                                       | 29 |
|                                                                                                     |   |
| Item 5.  Other Information                                                                     | 29 |
|                                                                                                     |   |
| Item 6.  Exhibits                                                                              | 29 |
|                                                                                                     |   |
| Signatures                                                                                               | 32 |
|                                                                                                     |   |
| Certifications                                                                                           |   |

----

|                                                                                                                                                            |   | February 28, |       |   | August 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|-----------------|--------|
|                                                                                                                                                            |   | 2011              |       |   | 2010            |   |
|                                                                                                                                                            |   |              |       |   |            |   |
| ASSETS                                                                                                                                                          |   |              |       |   |            |   |
|                                                                                                                                                            |   |              |       |   |            |   |
| Current assets                                                                                                                                                  |   |              |       |   |            |   |
| Cash and cash equivalents                                                                                                                                       |   | $                 | 3,648,865  |   |            | $      | 502,528 |   |
| Deferred research and development costs                                                                                                                         |   |              | 86,203     |   |            |   | 64,207 |   |
| Deferred offering costs                                                                                                                                         |   |              | 25,000     |   |            |   | - |   |
| Prepaid expenses and other current assets                                                                                                                       |   |              | 51,163     |   |            |   | 14,378 |   |
| Total current assets                                                                                                                                            |   |              | 3,811,231  |   |            |   | 581,113 |   |
|                                                                                                                                                            |   |              |       |   |            |   |   |   |
| Equipment, net of accumulated depreciation of $232 and $0 at February 28, 2011 and August 31, 2010                                                              |   |              | 1,158      |   |            |   | - |   |
|                                                                                                                                                            |   |              |       |   |            |   |   |   |
| Total assets                                                                                                                                                    |   | $                 | 3,812,389  |   |            | $      | 581,113 |   |
|                                                                                                                                                            |   |              |       |   |            |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                            |   |              |       |   |            |   |   |   |
|                                                                                                                                                            |   |              |       |   |            |   |   |   |
| Current liabilities                                                                                                                                             |   |              |       |   |            |   |   |   |
| Accounts payable                                                                                                                                                |   | $                 | 73,772     |   |            | $      | 67,553 |   |
| Accrued liabilities                                                                                                                                             |   |              | 163,408    |   |            |   | 156,109 |   |
| Warrant liability                                                                                                                                               |   |              | -          |   |            |   | 8,059 |   |
| Total current liabilities                                                                                                                                       |   |              | 237,180    |   |            |   | 231,721 |   |
|                                                                                                                                                            |   |              |       |   |            |   |   |   |
| Total liabilities                                                                                                                                               |   |              | 237,180    |   |            |   | 231,721 |   |
|                                                                                                                                                            |   |              |       |   |            |   |   |   |
| Commitments and contingencies                                                                                                                                   |   |              |       |   |            |   |   |   |
|                                                                                                                                                            |   |              |       |   |            |   |   |   |
| Stockholders' equity                                                                                                                                            |   |              |       |   |            |   |   |   |
| Preferred stock: $0.10 par value; 1,000,000 shares authorized, no shares issued and outstanding at February 28, 2011 and August 31, 2010                        |   |              | -          |   |            |   | - |   |
| Common stock: $0.001 par value; 300,000,000 shares authorized, 20,638,360 and 19,533,533 shares issued and outstanding at February 28, 2011 and August 31, 2010 |   |              | 20,638     |   |            |   | 19,533 |   |
| Additional paid-in capital                                                                                                                                      |   |              | 12,597,448 |   |            |   | 7,058,035 |   |
| Deficit accumulated during the development stage                                                                                                                |   |              | (9,042,877 | )      |            |   | (6,728,176 | ) |
| Total stockholders' equity                                                                                                                                      |   |              | 3,575,209  |   |            |   | 349,392 |   |
|                                                                                                                                                            |   |              |       |   |            |   |   |   |
| Total liabilities and stockholders' equity                                                                                                                      |   | $                 | 3,812,389  |   |            | $      | 581,113 |   |

----

|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   | Cumulative                  |       |
|--------------------------------------------------------------------------|--------|------------------------------|------------|--------|----------------------------|--------|------------|-----------------------|--------|--------|------------|--------|--------|-----------------------------|------------|
|                                                                     |   | Three Months Ended |       |   | Six Months Ended |   |       | May 5, 1998 |   |
|                                                                |   | February 28,            |       |   | February 28,          |   |       | (Inception) to   |   |
|                                                                |   | 2011                         |       |   | 2010                       |   |       | 2011                  |   |   | 2010       |   |   | February 28, 2011 |       |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |
| Revenue                                                                  |   | $                            | -          |   |                       | $      | -          |                  |   | $      | -          |   |   | $                           | -          |   |   | $ | - |   |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Operating expense                                                        |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Marketing and investor relations                                         |   |                         | 123,296    |   |                       |   | 40,539     |                  |   |   | 160,351    |   |   |                        | 282,132    |   |   |   | 3,315,733 |   |
| Wages and benefits                                                       |   |                         | 1,251,699  |   |                       |   | 247,426    |                  |   |   | 1,531,185  |   |   |                        | 472,787    |   |   |   | 2,648,662 |   |
| Management fees - related party                                          |   |                         | 7,500      |   |                       |   | -          |                  |   |   | 7,500      |   |   |                        | -          |   |   |   | 215,046 |   |
| Professional fees                                                        |   |                         | 325,621    |   |                       |   | 134,793    |                  |   |   | 415,567    |   |   |                        | 227,362    |   |   |   | 1,587,475 |   |
| Research and development                                                 |   |                         | 37,978     |   |                       |   | 167,814    |                  |   |   | 95,100     |   |   |                        | 442,128    |   |   |   | 1,541,424 |   |
| License fee                                                              |   |                         | -          |   |                       |   | -          |                  |   |   | -          |   |   |                        | -          |   |   |   | 20,000 |   |
| Travel and entertainment                                                 |   |                         | 10,453     |   |                       |   | 23,935     |                  |   |   | 16,640     |   |   |                        | 30,641     |   |   |   | 372,905 |   |
| Other operating expenses                                                 |   |                         | 57,997     |   |                       |   | 83,498     |                  |   |   | 95,064     |   |   |                        | 145,251    |   |   |   | 650,834 |   |
| Total operating expense                                                  |   |                         | 1,814,544  |   |                       |   | 698,005    |                  |   |   | 2,321,407  |   |   |                        | 1,600,301  |   |   |   | 10,352,079 |   |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Loss from operations                                                     |   |                         | (1,814,544 | )      |                       |   | (698,005   | )                     |   |   | (2,321,407 | )      |   |                        | (1,600,301 | ) |   |   | (10,352,079 | ) |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Other income (expense)                                                   |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Interest income                                                          |   |                         | -          |   |                       |   | -          |                  |   |   | -          |   |   |                        | -          |   |   |   | 98,582 |   |
| Interest expense                                                         |   |                         | (605       | )      |                       |   | -          |                  |   |   | (856       | )      |   |                        | -          |   |   |   | (11,858 | ) |
| Loss on disposal of fixed assets                                         |   |                         | -          |   |                       |   | -          |                  |   |   | -          |   |   |                        | -          |   |   |   | (5,307 | ) |
| Gain on dissolution of foreign subsidiary                                |   |                         | -          |   |                       |   | -          |                  |   |   | -          |   |   |                        | -          |   |   |   | 59,704 |   |
| Foreign exchange loss                                                    |   |                         | -          |   |                       |   | (722       | )                     |   |   | (497       | )      |   |                        | (706       | ) |   |   | (85,382 | ) |
| Change in fair value of warrant liability                                |   |                         | 697,405    |   |                       |   | 564,744    |                  |   |   | 8,059      |   |   |                        | 1,555,998  |   |   |   | 2,128,331 |   |
| Payable forgiven                                                         |   |                         | -          |   |                       |   | -          |                  |   |   | -          |   |   |                        | -          |   |   |   | 30,000 |   |
| Total other income (expense)                                             |   |                         | 696,800    |   |                       |   | 564,022    |                  |   |   | 6,706      |   |   |                        | 1,555,292  |   |   |   | 2,214,070 |   |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Loss from continuing operations                                          |   |                         | (1,117,744 | )      |                       |   | (133,983   | )                     |   |   | (2,314,701 | )      |   |                        | (45,009    | ) |   |   | (8,138,009 | ) |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Loss from discontinued operations                                        |   |                         | -          |   |                       |   | -          |                  |   |   | -          |   |   |                        | -          |   |   |   | (162,097 | ) |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Net loss                                                                 |   | $                            | (1,117,744 | )      |                       | $      | (133,983   | )                     |   | $      | (2,314,701 | )      |   | $                           | (45,009    | ) |   | $ | (8,300,106 | ) |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Net loss per common share - basic and diluted                            |   | $                            | (0.05      | )      |                       | $      | (0.01      | )                     |   | $      | (0.11      | )      |   | $                           | (0.00      | ) |   |   |   |   |
|                                                                     |   |                         |       |   |                       |   |       |                  |   |   |       |   |   |                        |       |   |   |   |   |   |
| Weighted average number of common shares outstanding - basic and diluted |   |                         | 20,613,780 |   |                       |   | 19,533,533 |                  |   |   | 20,150,353 |   |   |                        | 19,533,533 |   |   |   |   |   |

----

|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   | Accumulated   |   |       |                |   |   |          |   |   |             |       |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|--------|--------|--------------|--------|--------|------------|--------|--------|---------------|--------|--------|-----------------|--------|--------|---------------|--------|------------|---------------------|--------|--------|---------------|--------|--------|------------------|------------|
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   | Other         |   |       | Deficit Accumulated |   |   |          |   |   |             |       |
|                                                                                                                             |   | Preferred Stock |   |   | Common Stock |   |   | Additional |   |   | Comprehensive |   |   | During the      |   |   | Comprehensive |   |       | Total Stockholders' |   |
|                                                                                                                             |   | Shares          |   |   | Amount       |   |   | Shares     |   |   | Amount        |   |   | Paid-in Capital |   |   | Income (Loss) |   |       | Development Stage   |   |   | Income (Loss) |   |   | Equity (Deficit) |       |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |
| Restricted common stock issued to related parties for management services at $0.001 per share                                    |   |            | -      |   |         | $      | -      |       |   |   | 3,000,000     |   |   | $               | 3,000  |   |          | $      | -          |                |   | $      | -             |   |   | $                | -          |   |   | $ | - |   |   | $ | 3,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Unrestricted common stock sales to third parties at $0.40 per share                                                              |   |            | -      |   |         |   | -      |       |   |   | 375,000       |   |   |            | 375    |   |          |   | 149,625    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 150,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 1998                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (12,326    | ) |   |   | (12,326 | ) |   |   | (12,326 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (12,326 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 1998                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 3,375,000     |   |   |            | 3,375  |   |          |   | 149,625    |                |   |   | -             |   |   |             | (12,326    | ) |   |   | - |   |   |   | 140,674 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 1999                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (77,946    | ) |   |   | (77,946 | ) |   |   | (77,946 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (77,946 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 1999                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 3,375,000     |   |   |            | 3,375  |   |          |   | 149,625    |                |   |   | -             |   |   |             | (90,272    | ) |   |   | - |   |   |   | 62,728 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2000                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (12,446    | ) |   |   | (12,446 | ) |   |   | (12,446 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (12,446 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2000                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 3,375,000     |   |   |            | 3,375  |   |          |   | 149,625    |                |   |   | -             |   |   |             | (102,718   | ) |   |   | - |   |   |   | 50,282 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for year ended August 31, 2001                                                                                          |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (12,904    | ) |   |   | (12,904 | ) |   |   | (12,904 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (12,904 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2001                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 3,375,000     |   |   |            | 3,375  |   |          |   | 149,625    |                |   |   | -             |   |   |             | (115,622   | ) |   |   | - |   |   |   | 37,378 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2002                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (54,935    | ) |   |   | (54,935 | ) |   |   | (54,935 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (54,935 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2002                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 3,375,000     |   |   |            | 3,375  |   |          |   | 149,625    |                |   |   | -             |   |   |             | (170,557   | ) |   |   | - |   |   |   | (17,557 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Restricted common stock issued to a related party to satisfy outstanding management fees at $0.01 per share on December 19, 2002 |   |            | -      |   |         |   | -      |       |   |   | 8,000,000     |   |   |            | 8,000  |   |          |   | 72,000     |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 80,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Restricted common stock issued to a related party to satisfy outstanding management fees at $0.01 per share on March 18, 2003    |   |            | -      |   |         |   | -      |       |   |   | 2,333,200     |   |   |            | 2,333  |   |          |   | 20,999     |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 23,332 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2003                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (97,662    | ) |   |   | (97,662 | ) |   |   | (97,662 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (97,662 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2003                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 13,708,200    |   |   |            | 13,708 |   |          |   | 242,624    |                |   |   | -             |   |   |             | (268,219   | ) |   |   | - |   |   |   | (11,887 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2004                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (19,787    | ) |   |   | (19,787 | ) |   |   | (19,787 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (19,787 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2004                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 13,708,200    |   |   |            | 13,708 |   |          |   | 242,624    |                |   |   | -             |   |   |             | (288,006   | ) |   |   | - |   |   |   | (31,674 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2005                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (103,142   | ) |   |   | (103,142 | ) |   |   | (103,142 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (103,142 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2005                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 13,708,200    |   |   |            | 13,708 |   |          |   | 242,624    |                |   |   | -             |   |   |             | (391,148   | ) |   |   | - |   |   |   | (134,816 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Issuance of common stock and warrants at $0.50 per share on May 16, 2006                                                         |   |            | -      |   |         |   | -      |       |   |   | 1,000,000     |   |   |            | 1,000  |   |          |   | 499,000    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 500,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2006                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (157,982   | ) |   |   | (157,982 | ) |   |   | (157,982 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (157,982 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2006                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 14,708,200    |   |   |            | 14,708 |   |          |   | 741,624    |                |   |   | -             |   |   |             | (549,130   | ) |   |   | - |   |   |   | 207,202 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class A Warrants  at $0.50 per share during November - December 2006                                       |   |            | -      |   |         |   | -      |       |   |   | 1,000,000     |   |   |            | 1,000  |   |          |   | 499,000    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 500,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class B Warrants  at $0.55 per share November 2006 - May 2007                                              |   |            | -      |   |         |   | -      |       |   |   | 1,000,000     |   |   |            | 1,000  |   |          |   | 549,000    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 550,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class C Warrants  at $1.50 per share during August 2007                                                    |   |            | -      |   |         |   | -      |       |   |   | 326,667       |   |   |            | 327    |   |          |   | 489,673    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 490,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class D Warrants  at $1.65 per share during August 2007                                                    |   |            | -      |   |         |   | -      |       |   |   | 293,333       |   |   |            | 293    |   |          |   | 483,707    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 484,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class E Warrants  at $1.80 per share during August 2007                                                    |   |            | -      |   |         |   | -      |       |   |   | 293,333       |   |   |            | 293    |   |          |   | 527,707    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 528,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Issuance of common stock and warrants at $1.50 per share on April 23, 2007                                                       |   |            | -      |   |         |   | -      |       |   |   | 333,333       |   |   |            | 333    |   |          |   | 499,667    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 500,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Dividend paid - spin off of MircoChannel Technologies Corporation                                                                |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (400,000   | ) |   |   | - |   |   |   | (400,000 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments                                                                                         |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | (1,811        | )      |   |             | -          |   |   |   | (1,811 | ) |   |   | (1,811 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2007                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (1,442,769 | ) |   |   | (1,442,769 | ) |   |   | (1,442,769 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (1,444,580 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2007                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 17,954,866    |   |   |            | 17,955 |   |          |   | 3,790,377  |                |   |   | (1,811        | )      |   |             | (2,391,899 | ) |   |   |   |   |   |   | 1,414,622 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Common stock and warrants issued for cash and services at $3.00 per Unit in February 2008                                        |   |            | -      |   |         |   | -      |       |   |   | 1,225,000     |   |   |            | 1,225  |   |          |   | 3,394,730  |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 3,395,955 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class C Warrants  at $1.50 per share during March 2008                                                     |   |            | -      |   |         |   | -      |       |   |   | 6,667         |   |   |            | 7      |   |          |   | 9,993      |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 10,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class D Warrants  at $1.65 per share during May 2008                                                       |   |            | -      |   |         |   | -      |       |   |   | 6,667         |   |   |            | 7      |   |          |   | 10,993     |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 11,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class F Warrants  at $3.75 per share during April - May 2008                                               |   |            | -      |   |         |   | -      |       |   |   | 58,333        |   |   |            | 58     |   |          |   | 218,692    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 218,750 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Stock based compensation                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | 3,600,303  |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 3,600,303 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                                                      |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments                                                                                         |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | 12,504        |   |   |             | -          |   |   |   | 12,504 |   |   |   | 12,504 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2008                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (5,721,545 | ) |   |   | (5,721,545 | ) |   |   | (5,721,545 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (5,709,041 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2008                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 19,251,533    |   |   |            | 19,251 |   |          |   | 11,025,089 |                |   |   | 10,693        |   |   |             | (8,113,444 | ) |   |   |   |   |   |   | 2,941,589 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class E Warrants  at $1.80 per share during July 2009                                                      |   |            | -      |   |         |   | -      |       |   |   | 6,667         |   |   |            | 7      |   |          |   | 11,993     |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 12,000 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class F Warrants  at $3.75 per share during July - August 2009                                             |   |            | -      |   |         |   | -      |       |   |   | 275,333       |   |   |            | 275    |   |          |   | 1,032,225  |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 1,032,500 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Stock based compensation                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | 183,312    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 183,312 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Reversal of stock based compensation due to forfeiture of stock options                                                          |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | (3,591,093 | )                   |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | (3,591,093 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments                                                                                         |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | (10,693       | )      |   |             | -          |   |   |   | (10,693 | ) |   |   | (10,693 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2009                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | 1,961,175  |   |   |   | 1,961,175 |   |   |   | 1,961,175 |   |
| Total comprehensive income                                                                                                       |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | 1,950,482 |   |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2009                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 19,533,533    |   |   |            | 19,533 |   |          |   | 8,661,526  |                |   |   | -             |   |   |             | (6,152,269 | ) |   |   |   |   |   |   | 2,528,790 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Stock based compensation                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | 661,040    |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 661,040 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Reversal of stock based compensation due to forfeiture of stock options                                                          |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | (478,971   | )                   |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | (478,971 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Cumulative adjustment upon adoption of ASC 815-40                                                                                |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | (1,785,560 | )                   |   |   | -             |   |   |             | (342,771   | ) |   |   | - |   |   |   | (2,128,331 | ) |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended August 31, 2010                                                                                      |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (233,136   | ) |   |   | (233,136 | ) |   |   | (233,136 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   | (233,136 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2010                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | 19,533,533    |   |   |            | 19,533 |   |          |   | 7,058,035  |                |   |   | -             |   |   |             | (6,728,176 | ) |   |   | - |   |   |   | 349,392 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Rounding due to reverse one for three stock split effective March 16, 2011                                                       |   |            | -      |   |         |   | -      |       |   |   | (3            | )      |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | - |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of Class F Warrants at $3.75 per share during October 2010 - February 2011                                              |   |            | -      |   |         |   | -      |       |   |   | 1,054,512     |   |   |            | 1,055  |   |          |   | 3,953,320  |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 3,954,375 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Exercise of stock options                                                                                                        |   |            | -      |   |         |   | -      |       |   |   | 50,318        |   |   |            | 50     |   |          |   | 30,750     |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 30,800 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Stock based compensation                                                                                                         |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | 1,555,343  |                |   |   | -             |   |   |             | -          |   |   |   | - |   |   |   | 1,555,343 |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Net loss for the six months ended February 28, 2011                                                                              |   |            | -      |   |         |   | -      |       |   |   | -             |   |   |            | -      |   |          |   | -          |                |   |   | -             |   |   |             | (2,314,701 | ) |   |   | (2,314,701 | ) |   |   | (2,314,701 | ) |
| Total comprehensive loss                                                                                                         |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   | $ | (2,314,701 | ) |   |   |   |   |
|                                                                                                                             |   |            |   |   |         |   |   |       |   |   |          |   |   |            |   |   |          |   |       |                |   |   |          |   |   |             |       |   |   |   |   |   |   |   |   |   |
| Balance, February 28, 2011                                                                                                       |   |            | -      |   |         | $      | -      |       |   |   | 20,638,360    |   |   | $               | 20,638 |   |          | $      | 12,597,448 |                |   | $      | -             |   |   | $                | (9,042,877 | ) |   |   |   |   |   | $ | 3,575,209 |   |

----

|                                                                                    |   |                       |       |   |                  |   |       | Cumulative                  |   |
|-----------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|-----------------------|--------|------------|-----------------------------|--------|
|                                                                                    |   | Six Months Ended |       |   | May 5, 1998 |   |
|                                                                               |   | February 28,          |       |   | (Inception) to   |   |
|                                                                               |   | 2011                       |       |   | 2010                  |   |       | February 28, 2011 |   |
|                                                                                    |   |                       |       |   |                  |   |       |                        |   |
| Cash flows from operating activities                                                    |   |                       |       |   |                  |   |       |                        |   |
| Loss from continuing operations                                                         |   | $                          | (2,314,701 | )      |                  | $      | (45,009    | )                           |   | $ | (8,138,009 | ) |
| Add: loss from discontinued operations                                                  |   |                       | -          |   |                  |   | -          |                        |   |   | (162,097 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities              |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Depreciation                                                                            |   |                       | 232        |   |                  |   | -          |                        |   |   | 4,714 |   |
| Stock based compensation expense                                                        |   |                       | 1,555,343  |   |                  |   | 409,988    |                        |   |   | 5,999,998 |   |
| Reversal of stock based compensation expense due to forfeiture of stock options         |   |                       | -          |   |                  |   | -          |                        |   |   | (4,070,064 | ) |
| Change in fair value of warrant liability                                               |   |                       | (8,059     | )      |                  |   | (1,555,998 | )                           |   |   | (2,128,331 | ) |
| Loss of disposal of fixed assets                                                        |   |                       | -          |   |                  |   | -          |                        |   |   | 5,307 |   |
| Payable written off                                                                     |   |                       | -          |   |                  |   | -          |                        |   |   | (30,000 | ) |
| Common stock issued for services                                                        |   |                       | -          |   |                  |   | -          |                        |   |   | 3,000 |   |
| Common stock issued for debt settlement                                                 |   |                       | -          |   |                  |   | -          |                        |   |   | 103,332 |   |
| Changes in operating assets and liabilities:                                            |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Increase in deferred research and development costs                                     |   |                       | (21,996    | )      |                  |   | (28,626    | )                           |   |   | (86,203 | ) |
| Increase in deferred offering costs                                                     |   |                       | (25,000    | )      |                  |   | -          |                        |   |   | (25,000 | ) |
| Increase in prepaid expenses and other current assets                                   |   |                       | (36,785    | )      |                  |   | (29,317    | )                           |   |   | (51,163 | ) |
| Increase in accounts payable                                                            |   |                       | 6,219      |   |                  |   | 16,893     |                        |   |   | 73,772 |   |
| Increase in accrued liabilities                                                         |   |                       | 7,299      |   |                  |   | 6,728      |                        |   |   | 163,408 |   |
| Increase in accounts payable - related party                                            |   |                       | -          |   |                  |   | -          |                        |   |   | 30,000 |   |
| Net cash used in operating activities                                                   |   |                       | (837,448   | )      |                  |   | (1,225,341 | )                           |   |   | (8,307,336 | ) |
|                                                                                    |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Cash flows from investing activity                                                      |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Purchase of equipment                                                                   |   |                       | (1,390     | )      |                  |   | -          |                        |   |   | (11,179 | ) |
| Net cash used in investing activity                                                     |   |                       | (1,390     | )      |                  |   | -          |                        |   |   | (11,179 | ) |
|                                                                                    |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Cash flows from financing activities                                                    |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Proceeds from the issuance of common stock, exercise of warrants and stock options, net |   |                       | 3,985,175  |   |                  |   | -          |                        |   |   | 12,367,380 |   |
| Repayment of promissory note                                                            |   |                       | -          |   |                  |   | -          |                        |   |   | (155,000 | ) |
| Proceeds from promissory notes                                                          |   |                       | -          |   |                  |   | -          |                        |   |   | 155,000 |   |
| Dividend paid                                                                           |   |                       | -          |   |                  |   | -          |                        |   |   | (400,000 | ) |
| Net cash provided by financing activities                                               |   |                       | 3,985,175  |   |                  |   | -          |                        |   |   | 11,967,380 |   |
|                                                                                    |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                        |   |                       | 3,146,337  |   |                  |   | (1,225,341 | )                           |   |   | 3,648,865 |   |
|                                                                                    |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Cash and cash equivalents at beginning of period                                        |   |                       | 502,528    |   |                  |   | 2,736,221  |                        |   |   | - |   |
|                                                                                    |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Cash and cash equivalents at end of period                                              |   | $                          | 3,648,865  |   |                  | $      | 1,510,880  |                        |   | $ | 3,648,865 |   |
|                                                                                    |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Supplemental disclosure of cash flow information:                                       |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Interest paid in cash                                                                   |   | $                          | 856        |   |                  | $      | -          |                        |   | $ | 11,858 |   |
| Income taxes paid in cash                                                               |   | $                          | -          |   |                  | $      | -          |                        |   | $ | - |   |
|                                                                                    |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Supplemental disclosure of non-cash transactions:                                       |   |                       |       |   |                  |   |       |                        |   |   |   |   |
| Accrued management fees converted to equity                                             |   | $                          | -          |   |                  | $      | -          |                        |   | $ | 103,332 |   |
| Warrants issued for broker commissions                                                  |   | $                          | -          |   |                  | $      | -          |                        |   | $ | 642,980 |   |

----

----

|   | · | KEC; and |
|--------|--------|----------|

|   | · | New Energy Solar |
|--------|--------|------------------|

----

----

----

|                                                 |   | Three Months Ended |       |   | Six Months Ended |   |
|------------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                                 |   | February 28,       |       |   | February 28,     |   |
|                                                 |   | 2011               |       |   | 2010             |   |   | 2011 |   |   | 2010 |   |
|                                                 |   |               |       |   |             |   |   |   |   |   |   |   |
| Basic and Diluted EPS Computation                    |   |               |       |   |             |   |   |   |   |   |   |   |
| Numerator: income available to common stockholders   |   | $                  | (1,117,744 | )      |             | $      | (133,983 | ) |   | $ | (2,314,701 | ) |   | $ | (45,009 | ) |
|                                                 |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                         |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding |   |               | 20,613,780 |   |             |   | 19,533,533 |   |   |   | 20,150,353 |   |   |   | 19,533,533 |   |
|                                                 |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted EPS                                |   | $                  | (0.05      | )      |             | $      | (0.01 | ) |   | $ | (0.11 | ) |   | $ | (0.00 | ) |

----

----

----

| Beginning Balance, September 1, 2010      |   | $      | 8,059  |   |
|-------------------------------------------|--------|--------|--------|--------|
| Change in fair value of warrant liability |   |   | (8,059 | )      |
| Ending Balance, February 28, 2011         |   | $      | -      |   |

----

|                                     |   | Number of Options |      |   | Weighted Average Exercise Price |   | Weighted Average Remaining Contractual Term |   | Aggregate Intrinsic Value                                 |   |
|------------------------------------------|--------|-------------------|-----------|--------|---------------------------------|--------|---------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                     |   |              |      |   |                            |   |                                        |   |                                                      |   |
| Outstanding at August 31, 2010           |   |              | 900,003   |   |                            | $      | 1.70                                        |   |                                                      |   |   |   |
| Grants                                   |   |              | 566,668   |   |                            |   | 6.19                                        |   |                                                      |   |   |   |
| Exercises                                |   |              | (73,334   | )      |                            |   | 1.61                                        |   |                                                      |   |   |   |
| Forfeitures                              |   |              | (60,000   | )      |                            |   | 1.32                                        |   |                                                      |   |   |   |
| Outstanding at February 28, 2011         |   |              | 1,333,337 |   |                            | $      | 3.63                                        |   | 9.3 years                                            |   | $ | 2,124,005 |   |
|                                     |   |              |      |   |                            |   |                                        |   |                                                      |   |   |   |   |
| Exercisable at February 28, 2011         |   |              | 85,001    |   |                            | $      | 3.44                                        |   |         6.7 years |   | $ | 137,301 |   |
|                                     |   |              |      |   |                            |   |                                        |   |                                                      |   |   |   |   |
| Available for grant at February 28, 2011 |   |              | 3,593,329 |   |                            |   |                                        |   |                                                      |   |   |   |   |

|               |   | Three Months Ended |          |   | Six Months Ended |   |
|--------------------|--------|--------------------|---------------|--------|------------------|--------|
|               |   | February 28,       |          |   | February 28,     |   |
|               |   | 2011               |          |   | 2010             |   |   | 2011 |   |   | 2010 |   |
|               |   |               |          |   |             |   |   |   |   |   |   |   |
| Wages and benefits |   | $                  | 1,128,620     |   |             | $      | 183,562 |   |   | $ | 1,364,442 |   |   | $ | 366,292 |   |
| Professional fees  |   |               | 179,570  |   |             |   | 34,809 |   |   |   | 190,901  |   |   |   | 43,696 |   |
| Total              |   | $                  | 1,308,190     |   |             | $      | 218,371 |   |   | $ | 1,555,343 |   |   | $ | 409,988 |   |

----

----

|   | (a) | as to 12,500 on June 30, 2010; |
|--------|-----|--------------------------------|

|   | (b) | as to 12,500 on September 30, 2010; |
|--------|-----|-------------------------------------|

|   | (c) | as to 12,500 on December 31, 2010; and |
|--------|-----|----------------------------------------|

|   | (d) | as to 12,500 on March 31, 2011. |
|--------|-----|---------------------------------|

|                      |                |        | StockOptionsOutstanding |      |              | StockOptionsExercisable |   |
|---------------------------|---------------------|-------------|-------------------------|-----------|-------------------|-------------------------|--------|
|                      |                |        |                    |      |              | Weighted                |   |   |   |   |   |   |   |   | Weighted |   |   |   |   |
|                      |                |        |                    |      |              | Average                 |   |   | Weighted |   |   |   |   |   | Average |   |   | Weighted |   |
|                      |                |        | Number of          |      |              | Remaining               |   |   | Average |   |   | Number of |   |   | Remaining |   |   | Average |   |
|                      |                |        | Options                 |      |              | Contractual             |   |   | Exercise |   |   | Options |   |   | Contractual |   |   | Exercise |   |
| Exercise Prices      |                | Outstanding |                    |      | Life (Years) |                    |   | Price |   |   | Exercisable |   |   | Life (Years) |   |   | Price |   |
|                      |                |        |                    |      |              |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $     | 1.32                |        |                    | 50,001    |              |                    |   | 3.8 |   |   | $ | 1.32 |   |   |   | 35,000 |   |   |   | 3.8 |   |   | $ | 1.32 |   |
|                      | 1.65                |        |                    | 666,667   |              |                    |   | 9.5 |   |   |   | 1.65 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                      | 2.55                |        |                    | 33,334    |              |                    |   | 7.5 |   |   |   | 2.55 |   |   |   | 13,334 |   |   |   | 7.5 |   |   |   | 2.55 |   |
|                      | 4.98                |        |                    | 16,667    |              |                    |   | 7.0 |   |   |   | 4.98 |   |   |   | 10,000 |   |   |   | 7.0 |   |   |   | 4.98 |   |
|                      | 5.94                |        |                    | 50,001    |              |                    |   | 9.9 |   |   |   | 5.94 |   |   |   | 20,000 |   |   |   | 9.9 |   |   |   | 5.94 |   |
|                      | 6.21                |        |                    | 500,000   |              |                    |   | 9.8 |   |   |   | 6.21 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                      | 6.51                |        |                    | 16,667    |              |                    |   | 9.9 |   |   |   | 6.51 |   |   |   | 6,667 |   |   |   | 9.9 |   |   |   | 6.51 |   |
| $     | 1.32 – $ 6.51 |        |                    | 1,333,337 |              |                    |   | 9.3 |   |   | $ | 3.63 |   |   |   | 85,001 |   |   |   | 6.7 |   |   | $ | 3.44 |   |

----

----

----

----

----

----

|                             |   | Three Months Ended |      |   |            |   |    | Six Months Ended |   |   |            |   |
|----------------------------------|--------|------------------------------|-----------|--------|-----------------|--------|---------|----------------------------|--------|--------|-----------------|--------|
|                             |   | February 28,            |      |   | Increase / |   |    | February 28,          |   |   | Increase / |   |
|                             |   | 2011                         |      |   | 2010            |   |    | (Decrease)                 |   |   | 2011            |   |   | 2010 |   |   | (Decrease) |   |
|                             |   |                         |      |   |            |   |    |                       |   |   |            |   |   |   |   |   |   |   |
| Operating expense                |   |                         |      |   |            |   |    |                       |   |   |            |   |   |   |   |   |   |   |
| Marketing and investor relations |   | $                            | 123,296   |   |            | $      | 40,539  |                       |   | $      | 82,757          |   |   | $ | 160,351 |   |   | $ | 282,132 |   |   | $ | (121,781 | ) |
| Wages and benefits               |   |                         | 1,251,699 |   |            |   | 247,426 |                       |   |   | 1,004,273       |   |   |   | 1,531,185 |   |   |   | 472,787 |   |   |   | 1,058,398 |   |
| Management fees - related party  |   |                         | 7,500     |   |            |   | -       |                       |   |   | 7,500           |   |   |   | 7,500 |   |   |   | - |   |   |   | 7,500 |   |
| Professional fees                |   |                         | 325,621   |   |            |   | 134,793 |                       |   |   | 190,828         |   |   |   | 415,567 |   |   |   | 227,362 |   |   |   | 188,205 |   |
| Research and development         |   |                         | 37,978    |   |            |   | 167,814 |                       |   |   | (129,836        | )      |   |   | 95,100 |   |   |   | 442,128 |   |   |   | (347,028 | ) |
| Travel and entertainment         |   |                         | 10,453    |   |            |   | 23,935  |                       |   |   | (13,482         | )      |   |   | 16,640 |   |   |   | 30,641 |   |   |   | (14,001 | ) |
| Other operating expenses         |   |                         | 57,997    |   |            |   | 83,498  |                       |   |   | (25,501         | )      |   |   | 95,064 |   |   |   | 145,251 |   |   |   | (50,187 | ) |
| Total operating expense          |   | $                            | 1,814,544 |   |            | $      | 698,005 |                       |   | $      | 1,116,539       |   |   | $ | 2,321,407 |   |   | $ | 1,600,301 |   |   | $ | 721,106 |   |

----

----

----

|                                      |   | Three Months Ended |    |   |   |   |    | Six Months Ended |   |   |    |   |
|-------------------------------------------|--------|--------------------|---------|--------|--------|--------|---------|------------------|--------|--------|---------|--------|
|                                      |   | February 28,       |    |   |   |   |    | February 28,     |   |   |    |   |
|                                      |   | 2011               |    |   | 2010   |   |    | Change           |   |   | 2011    |   |   | 2010 |   |   | Change |   |
|                                      |   |               |    |   |   |   |    |             |   |   |    |   |   |   |   |   |   |   |
| Other income (expense)                    |   |               |    |   |   |   |    |             |   |   |    |   |   |   |   |   |   |   |
| Interest expense                          |   | $                  | (605    | )      |   | $      | -       |             |   | $      | (605    | )      |   | $ | (856 | ) |   | $ | - |   |   | $ | (856 | ) |
| Foreign exchange loss                     |   |               | -       |   |   |   | (722    | )                |   |   | 722     |   |   |   | (497 | ) |   |   | (706 | ) |   |   | 209 |   |
| Change in fair value of warrant liability |   |               | 697,405 |   |   |   | 564,744 |             |   |   | 132,661 |   |   |   | 8,059 |   |   |   | 1,555,998 |   |   |   | (1,547,939 | ) |
| Total other income (expense)              |   | $                  | 696,800 |   |   | $      | 564,022 |             |   |   | 132,778 |   |   | $ | 6,706 |   |   | $ | 1,555,292 |   |   |   | (1,548,586 | ) |

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| Exhibit No. |         | Description of Exhibit                                                                                                                                        |
|------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |         |                                                                                                                                                                    |
| 3.1              |         | Articles of Incorporation, as amended (1)                                                                                                                               |
|             |         |                                                                                                                                                                    |
| 3.2              |         | Certificate of Amendment to the Articles of Incorporation changing name to New Energy Technologies, Inc. (1)                                                            |
|             |         |                                                                                                                                                                    |
| 3.3              |         | Certificate of Amendment to the Articles of Incorporation increasing the authorized shares from 100,000,000 to 300,000,000 (2)                                          |
|             |         |                                                                                                                                                                    |
| 3.4              |         | Certificate of Change to the Articles of Incorporation relating to the one-for-three reverse stock split (2)                                                            |
|             |         |                                                                                                                                                                    |
| 3.5              |         | By Laws (1)                                                                                                                                                             |
|             |         |                                                                                                                                                                    |
| 4.1              |         | Securities Purchase Agreement dated February 8, 2008 (1)                                                                                                                |
|             |         |                                                                                                                                                                    |
| 10.1             |         | Employment Termination Agreement with Mr. Cucinelli (1)                                                                                                                 |
|             |         |                                                                                                                                                                    |
| 10.2             |         | Employment Agreement dated June 24, 2009 between New Energy Technologies, Inc. and Meetesh Patel (1)                                                                    |
|             |         |                                                                                                                                                                    |
| 10.3             |         | Amendment to the Employment Agreement dated April 6, 2010 between New Energy Technologies, Inc. and Meetesh Patel (1)                                                   |
|             |         |                                                                                                                                                                    |
| 10.4             |         | Stock Option Agreement dated April 6, 2010 between New Energy Technologies, Inc. and Meetesh Patel (1)                                                                  |
|             |         |                                                                                                                                                                    |
| 10.5             |         | Amended Form of Stock Option Agreement dated as of December 15, 2009 between Meetesh Patel and New Energy Technologies, Inc., correcting the grant date (1)             |
|             |         |                                                                                                                                                                    |
| 10.6             |    | Amended Form of Stock Option Agreement dated as of December 15, 2009 between New Energy Technologies, Inc. and its non-employee directors, correcting the grant date(1) |

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| 10.7   |         | Employment Agreement dated February 1, 2010 between New Energy Technologies, Inc. and James B. Wilkinson (1)                                                                                                                                          |
|--------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                                                                                                  |
| 10.8   |         | Resignation and Mutual Determination to Terminate Employment between New Energy Technologies, Inc. and James B. Wilkinson, dated February 15, 2010 (1)                                                                                                |
|   |         |                                                                                                                                                                                                                                                  |
| 10.9   |         | Employment Agreement dated August 9, 2010 between New Energy Technologies, Inc. and John A. Conklin (3)                                                                                                                                               |
|   |         |                                                                                                                                                                                                                                                  |
| 10.10  |         | Stock Option Agreement dated August 9, 2010 between New Energy Technologies, Inc. and John A. Conklin (3)                                                                                                                                             |
|   |         |                                                                                                                                                                                                                                                  |
| 10.11  |         | Employment Agreement dated December 17, 2010 between New Energy Technologies, Inc. and Andrew Farago (4)                                                                                                                                              |
|   |         |                                                                                                                                                                                                                                                  |
| 10.12  |         | Stock Option Agreement dated December 17, 2010 between New Energy Technologies, Inc. and Andrew Farago (4)                                                                                                                                            |
|   |         |                                                                                                                                                                                                                                                  |
| 10.13  |         | Stock Option Agreement dated January 17, 2011 between New Energy Technologies, Inc. and Jatinder Bhogal (5)                                                                                                                                           |
|   |         |                                                                                                                                                                                                                                                  |
| 10.14  |         | Stock Option Agreement dated January 17, 2011 between New Energy Technologies, Inc. and Alistair Livesey (5)                                                                                                                                          |
|   |         |                                                                                                                                                                                                                                                  |
| 10.15  |         | Stock Option Agreement dated January 17, 2011 between New Energy Technologies, Inc. and Joseph Sierchio (5)                                                                                                                                           |
|   |         |                                                                                                                                                                                                                                                  |
| 10.16  |         | Stock Option Agreement dated January 19, 2011 between New Energy Technologies, Inc. and Javier Jimenez (5)                                                                                                                                            |
|   |         |                                                                                                                                                                                                                                                  |
| 10.17  |         | Consultancy Agreement dated February 1, 2011 between New Energy Technologies, Inc. and Elliot Maza (6)                                                                                                                                                |
|   |         |                                                                                                                                                                                                                                                  |
| 10.18  |         | Employment Agreement dated February 2, 2011 between New Energy Technologies, Inc. and Scott Taper (7)                                                                                                                                                 |
|   |         |                                                                                                                                                                                                                                                  |
| 10.19  |         | Redacted USF Sponsored Research Agreement (1) (8)                                                                                                                                                                                                     |
|   |         |                                                                                                                                                                                                                                                  |
| 10.20  |         | Redacted USF Option Agreement (1) (8)                                                                                                                                                                                                                 |
|   |         |                                                                                                                                                                                                                                                  |
| 10.21  |         | Redacted Veryst Agreement (1) (7)                                                                                                                                                                                                                     |
|   |         |                                                                                                                                                                                                                                                  |
| 10.22  |         | Redacted Sigma Design Agreement (1) (7)                                                                                                                                                                                                               |
|   |         |                                                                                                                                                                                                                                                  |
| 10.23  |         | Redacted Standard Exclusive License Agreement with Sublicensing Terms entered into on June 21, 2010 by and between the University of South Florida Research Foundation and New Energy Solar Corporation (the “License Agreement”) (7) (8) |
|   |         |                                                                                                                                                                                                                                                  |
| 10.24  |         | Redacted Addendum 1 dated November 30, 2010 to the License Agreement by and between the University of South Florida Research Foundation and New Energy Solar Corporation (8) (9)                                                                      |
|   |         |                                                                                                                                                                                                                                                  |
| 10.25  |    | 2006 Incentive Stock Option Plan (10)                                                                                                                                                                                                                 |

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| 10.26  |         | Redacted version of the Cooperative Research and Development Agreement entered into between the National Renewable Energy Laboratory and New Energy Technologies, Inc. (11)         |
|--------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                                |
| 31.1   |         | Certification of Principal Executive Officer Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 * |
|   |         |                                                                                                                                                                                |
| 31.2   |         | Certification of Principal Financial Officer Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 * |
|   |         |                                                                                                                                                                                |
| 32.1   |         | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *                             |
|   |         |                                                                                                                                                                                |
| 32.2   |    | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *                             |

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|           |                                             | New Energy Technologies, Inc. |
|----------------|--------------------------------------------------|-------------------------------|
|           |                                             | (Registrant)                  |
|           |                                             |                          |
| April 14, 2011 | By:                                              | /s/ John Conklin              |
|           | John Conklin                                     |
|           | President, Chief Executive Officer, and Director |
|           |                                             |                          |
| April 14, 2011 | By:                                              | /s/ Elliot Maza               |
|           | Elliot Maza                                      |
|           | Chief Financial Officer                          |

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