UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                                    FORM 10-K

                   ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                  For the fiscal year ended: October 31, 2000

                      Commission File Number: 33-18437-LA

                          INTERACTIVE MOTORSPORTS, INC.
          -------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

Nevada                                                   88-0230400
--------------------------------------------------------------------------------
(State or other jurisdiction of               I.R.S. Employer Identification No
incorporation or organization)

3675 Pecos-McCloud Road, Las Vegas                                     89121
--------------------------------------------------------------------------------
(Address of principal executive offices)                             (Zip Code)

_____________________________________61-2-9417 7226_____________________________
              (Registrant's telephone number, including area code)

                           INTERACTIVE MOTORSPORTS, INC.
-------------------------------------------------------------------------

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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  proceeding 12 months (or for such shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.]

[x] Yes           [  ] No

Indicate the number of shares outstanding of each of the issuer/s classes of
common stock as of the last practicable date:

         Date:                                                October 31, 2000

         Common Stock - Number of shares
         outstanding at July 31, 2000                         4,165,705

Registrant's revenues for year ended October 31, 2000 were $0.


<PAGE>


                          INTERACTIVE MOTORSPORTS, INC


                                TABLE OF CONTENTS

PART 1


         Item 1     Description of Business
         Item 2     Description of Property
         Item 3     Legal Proceedings
         Item 4     Submission of Matters to a Vote of Security Holders

PART 11             OTHER INFORMATION

         Item 5     Market for Common Equity and Related Stockholder Matters
         Item 6     Selected Financial Data
         Item 7     Management's Discussion and Analysis of Financial Condition
                    and Results of Operations
         Item 8     Financial Statements
         Item 9     Changes in and Disagreements with Accountants on Accounting
                    and Financial Disclosure


PART 111


         Item 10    Directors and Executive Officers, Compliance with Section
                    16 (a) of the Exchange Act
         Item 11    Executive Compensation
         Item 12    Security Ownership of Certain Beneficial Owners and
                    Management
         Item 13    Certain Relationships and Related Transactions

PART 1V


         Item 14    Exhibits and Reports on Form 8-K







<PAGE>


                          INTERACTIVE MOTORSPORTS, INC.

                                     PART 1

Item 1.  Business

         The  Company was  organized  in Nevada on April 30, 1987 to explore and
         develop mineral deposits on the Nel property at Nelson,  Nevada, and to
         acquire other properties worthy of exploration. After its formation the
         Company's  various mineral  exploration  and development  ventures were
         pursued,  but  ultimately  abandoned.  From the  time of its  formation
         through  November,  1992 the  Company  was the sole owner of two mining
         properties,  the Nel,  located  at  Nelson,  Nevada,  and the  Kadex at
         Philipsburg,  Montana.  At a special  meeting of  stockholders  held on
         August  24,  1993,  95.02% of the  shares  represented  at the  meeting
         unanimously  voted to transfer  title of the properties to two separate
         newly  formed  companies  so  that  financing  the  development  of the
         properties could be done  separately.  The Nel property was sold to the
         newly formed  Nelloro  Corporation  for 960,800  Nelloro shares and the
         Kadex  property  was  transferred  to Cadgie Co, for the same amount of
         Cadgie  shares.   The  shares  received  by  the  parent,   Interactive
         Motorsports,  Inc. (then known as Precious Metal Mines, Inc.) were then
         spun off to its  stockholders  of record,  August 31,  1993,  share for
         share. On April 30, 1994, Andrew W. Berney,  Raymond Girard and Gary C.
         Vesperman  were elected to the board of directors of the Company by the
         shareholders.  Each of Messrs. Berney, Girard and Vesperman resigned as
         directors  of the  Company  effective  March 21,  1995 and  Francis  J.
         Joslin, John L. Beckett and John Webster were appointed as directors as
         of that date.  Messrs.  Joslin and Beckett remain as current directors.
         During the fiscal year the Company entered into negotiations to acquire
         a business in the United Kingdom known as Interactive  Motorsports  and
         in  anticipation  of success the company changed its name from Precious
         Metal  Mines,  Inc.  to  Interactive  Motorsports,   Inc.  One  of  the
         conditions  of the  proposed  acquisition  was that the  shares  in the
         Company  be quoted on the  Nasdaq  Bulletin  Board  Electronic  Trading
         System During the due diligence period of the proposed  acquisition the
         Company  was  advised  that its  quotation  status on  Nasdaq  had been
         terminated and for this reason the acquisition  negotiations  ceased. A
         proposal to enter oil and gas  production was considered by the company
         and the name  changed to Black Sea Oil,  Inc.  Due to the  inability to
         obtain  funding for this  proposal did not proceed.  At the present the
         Company's  operations  are  dormant  and  it  is  pursuing  alternative
         business opportunities.

Item 2.  Properties

         As discussed above under "Business", the Company has disposed of all of
         its properties and presently has no property holdings.


Item 3.  Legal Proceedings

         The only  legal  matter  involving  or known  to the  registrant  is as
         follows:

         On or about May 1998, a complaint  against the Company was filed in the
         Ninth Judicial  District  Court,  Douglas County,  Nevada,  case number
         98-CV-0111,  entitled Scorpio  Investments,  Inc. a Nevada corporation,
         Plaintiff,  vs. Precious Metal Mines, Inc., a Nevada  corporation,  and
         DOES 1 through 20,  Defendants.  Plaintiff  claims to be a  shareholder
         owning 400 shares of the common stock of Precious Metal Mines, Inc. The
         allegations  of the Plaintiff  against the Defendant are: that pursuant
         to Nevada Revised Statutes,  section 78.347, the Company's duly elected
         officers and directors  failed to elect a board of directors and failed
         to file an annual list of officers and directors, and that the officers
         and directors  have  abandoned  the business of the Company.  Plaintiff
         prays for the Court to appoint a custodian  for the purpose of carrying
         on the business of the  corporation  and electing a board of directors,
         and that the Court  grant  damages in excess of ten  thousand  dollars,
         Court costs and  attorneys  fees.  On or about July 22, 1998, a default
         judgement  was entered  against  Defendent  and in favour of Plaintiff,
         appointing one Ryan Barnard of Executive  Business Service as custodian
         until a board of directors of the corporation can be regularly elected.
         The Company only became aware of the above  proceedings in September of
         1998 and promptly  took steps to retain legal  counsel in Nevada to set
         aside the default judgement on the grounds that Plaintiff's counsel had
         served the summons and complaint on the Company's prior resident agent,
         and that the  Company  had a new  resident  agent of record at the time
         Plaintiff's suit was filed. The Court granted Defendant's  petition and
         the default judgement was set aside.  Registrant  believes  Plaintiff's
         suit was a sham,  not  brought in good  faith and was an  opportunistic
         attempt by  Plaintiff  to steal  control of the  Company by a purported
         technical default.  The Company is now in good standing in the state of
         Nevada. From a review of the certified shareholder list supplied by the
         Company's  transfer agent,  Plaintiff Scorpio is not now, nor was it at
         the time of filing its complaint, nor has it ever been a shareholder of
         the Company.  As of this filing it appears that Plaintiff has abandoned
         its claim;  Plaintiff has taken no further action in the case since the
         default  judgement was set aside in favour of the Company.  Counsel for
         the Company believes the matter will either be dismissed or resolved in
         favour of the Company without any material or substantial  costs. As of
         this filing the matter is still pending disposition.

Item 4.  Submission of Matters to a Vote of Security Holders

         None.


                                     PART 11

Item 5.  Market for Registrant's Common Equity and Related Stockholder Matters

         The  Company's  shares  of  Common  Stock  were  traded on the Over The
         Counter Market under the symbol "PCMM" until  September,  2000 at which
         time  quotation was suspended by NASDAQ because of late filings and the
         inactivity of the corporation.  At the time of this report re-quotation
         has been declined  until such times as the Company  commences  business
         and appropriate filings in respect thereof are effected.  As of October
         31, 2000 there were 86 Holders of record of the Common Stock. Dividends
         - during the year ended October 31, 2000 the Company did not declare or
         pay cash dividends.  The Company has no history of declaring and paying
         cash  dividends  to its common  stockholders  and has no  intention  of
         declaring such dividends into the foreseeable future.


Item 6.  Selected Financial Data

         None.


Item 7.  Management's Discussion and Analysis of Financial Conditions and
         Results of Operations

Statement of Operations

         For the fiscal  year ended  October 31,  2000  administrative  expenses
         decreased  from the fiscal year ended October 31, 1999 due to decreases
         in legal fees.

Liquidity and Capital Resources

         The Company has no available sources of capital and no cash accounts.

Item 8.  Financial Statements and Selected Supplementary Data

         As per attached report.

Item 9.  Changes in and Disagreements with Accountants on Accounting and
         Financial Disclosure

         None

                                    PART 111

Item 10  Directors, Executive Officers, Promoters and Control Persons.

         The executive officers and directors of the Company are as follows:

                 NAME      AGE            POSITION
                 ----      ---            --------
Francis J. Joslin          56       Director, President, Treasurer, Chief
                                    Financial Officer
John L. Beckett            51       Director
John Webster               40       Director

Francis J. Joslin

         Mr. Joslin grew up in Australia after his family emigrated from England
         in 1949; he is now an Australian citizen and resident. After completing
         his primary and secondary  education he gained his  qualification  as a
         chartered  accountant  and was admitted as a member of The Institute of
         Chartered  Accountants  in Australia in 1971. At that time he commenced
         private  practice as an accountant on his own,  specializing  in income
         tax matters;  he developed  the practice  over the next twelve years at
         which  time  he  began  to  concentrate  on  a  variety  of  commercial
         activities.  Since  1980 Mr.  Joslin has been  involved  in a number of
         businesses, including tin mining ventures in Queensland and substantial
         investment in gold mining  companies in Australia,  In 1982 he acquired
         one of Australia's best known  horticultural  names, and after a period
         of  restructuring,  successfully  listed the company on the  Australian
         Stock  Exchange.  In 1984 he acquired a food business  which trebled in
         size during his  ownership;  this  business  was sold in 1992 and since
         then Mr. Joslin has concentrated on resource based opportunities.

John L. Beckett

         John  Beckett  was  educated  at  the  King's  School,  Canterbury  and
         Sheffield University. He has been involved in the investment sector for
         a number  of years of which  during  the past  seven  years he has been
         running  his  own  financial  planning  practice  dealing  mainly  with
         corporate clients.  Mr. Beckett is a director of a consultancy  company
         which provides strong links with City institutions.

John Webster

         From 1994 to 1995 Mr.  Webster  was a  director  of  Operations  of the
         Commonwealth  and British  Minerals Plc. From 1993 to 1994 Mr.  Webster
         was vice  president of operations at J.D.Welsh & Associates.  From 1991
         to  1993  Mr.  Webster  was  Project  Manager  of  American   Resources
         Corporation  and from 1989 to 1991 he was  Project  Manager at Red Rock
         Mining  (USA)  Inc.  Mr.  Webster  received  his Dip.  C.S.M.  from the
         Camborne   School  of  Mines  in  1980  and  his   Western   Australian
         Unrestricted  Quarry Managers  Certificate in 1984. He is also a member
         of the Australian  Institute of Mining and  Metallurgy,  the Society of
         Mining Engineers A.I.M.E. and the Society of Explosive Engineering.

         Mr. Webster has subsequently been removed as a director of the company
         pursuant to a resolution of shareholders and as a consequence of a
         change in the direction of future business activities being considered
         by the company.

Item 11  Executive Compensation

         No  compensation  was paid to any of the  officers or  directors of the
Company.

Item 12  Security Ownership of Certain Beneficial Owners and Management

         Francis J. Joslin is the  registered  owner of 50,000  shares of Common
Stock, par value $0.01 per share.

Item 13  Certain Relationships and Related Transactions

         None

                                     PART 1V

Item 14  Exhibits, Financial Statements, Schedules and Reports on Form 8-K

Exhibits

         Item xx  Consent of Independent Auditors

Financial Statement

         Audited Financial Statements for the Fiscal Years ending October 31,
1998, 1999 and 2000.

Schedules





<PAGE>


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.



Black Sea Oil, Inc.
(Registrant)



By Francis F. Joslin
____________________
President, Chief Financial Officer and Director


<PAGE>


                             BARRY L. FRIEDMAN, P.C.
                           Certified Public Accountant

1582 TULITA DRIVE OFFICE                                Office   (702) 381-8414
LAS VEGAS, NEVADA 89123 FAX NO.                         Fax No.  (702) 896-0278


To Whom It May Concern:                                        November 22, 2000

         The  firm of Barry  L.  Friedman,  P-C.,  Certified  Public  Accountant
consents to the  inclusion of my report of Novembet 22, 2000,  on the  Financial
Statements of Interactive  Motorsports,  Inc.,  (Formerly  Precious Metal Mines,
Inc.), if or the periods ending October 31, 2000,  October 31, 1999, and October
31,  1998,  in any filings  that are  necessary  now or in the near future to be
filed with the U.S. Securities and Exchange Commission.


Very truly yours.

/s/ Barry L. Friedman
---------------------
Barry L. Friedman
Certified Public Accountant

<PAGE>



                          INTERACTIVE MOTORSPORTS, INC.
                      (FORMERLY PRECIOUS METAL MINES, INC.
                         (A DEVELOPMENT STAGE COMPANY)


                              FINANCIAL STATEMENTS
                                   ----------
                                October 31, 2000
                                October 31, 1999
                                October 31, 1998



                                       I




<PAGE>

                                TABLE OF CONTENTS



                                                  PAGE

INDEPENDENT AUDITORS' REPORT...................    1

BALANCE SHEET..................................    2

STATEMENT OF OPERATIONS.......................     3

STATEMENT OF STOCKHOLDERS EQUITY..............     4

STATEMENT OF CASH FLOWS.......................     5

NOTES TO FINANCIAL STATEMENTS.................     6-7


<PAGE>


                             BARRY L. FRIEDMAN, P.C.
                           Certified Public Accountant

1582 TULITA DRIVE OFFICE                                Office   (702) 381-8414
LAS VEGAS, NEVADA 89123 FAX NO.                         Fax No.  (702) 896-0278


                          INDEPENDENT AUDITORS' REPORT
                          ----------------------------

Board Of Directors                                             November 22, 2000
Interactive Motorsports, Inc.
Formerly Precious Metal Mines, Inc.
London, England


         I  have  audited  the   accompanying   Balance  Sheets  of  Interactive
Motorsports,  Inc.,  (Formerly Precious Metal Mines, Inc.), (A Development Stage
Company),  as of October 31, 2000,  October 31, 1999,  and October 21, 1998, and
the related  statements of operations,  stockholders'  equity and cash flows for
the three years ended October 31, 2000,  October 31, 1999, and October 31, 1998.
These financial  statements are the responsibility of the Company's  management.
My responsibility  is to express an opinion on these financial  statements based
on my  audit.

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

         In my opinion,  the  financial  statements  referred  to above  present
fairly,  in  all  material  respects,  the  financial  position  of  Interactive
Motorsports,  Inc.,  (Formerly Precious Metal Mines, Inc.), (A Development Stage
Company),  as of October 31, 2000,  October 31, 1999,  and October 31, 1998, and
the results of its  operations  and cash flows for the three years ended October
31, 2000,  October 31, 1999, and October 31, 1998, in conformity  with generally
accepted accounting principles.

         The accompanying  financial  statements have been prepared assuming the
Company  will  continue  as a  going  concern.  As  discussed  in Note #3 to the
financial  statements,  the Company has no established  source of revenue.  This
raises  substantial  doubt about its  ability to  continue  as a going  concern.
Management's  plan in regard to these matters are also described in Note #3. The
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.

/s/ Barry L. Friedman
---------------------
Barry L. Friedman



<PAGE>


                          INTERACTIVE MOTORSPORTS, INC.
                     (FORMERLY PRECIOUS METAL MINES, INC.)
                          (A DEVELOPMENT STAGE COMPANY)

                                  BALANCE SHEET

                                     ASSETS
<TABLE>
<CAPTION>

                                                                  October          October         October
                                                                  31, 2000         31, 2000        31, 2000
CURRENT ASSETS
<S>                                                                      <C>             <C>              <C>
  Notes Receivable                                                       $ 20,750        $ 20,750         $ 20,750

  TOTAL CURRENT ASSETS                                                   $ 20,750        $ 20,750         $ 20,750

OTHER ASSETS                                                                  $ -             $ -              $ -

  TOTAL OTHER ASSETS                                                          $ -             $ -              $ -

TOTAL ASSETS                                                             $ 20,750        $ 20,750         $ 20,750


        LIABILITIES AND STOCKHOLDER'S EQUITY

CURRENT LIABILITIES
 Stockholders Advances (Note #6)                                         $ 15,000        $ 15,000         $ 15,000
 Accounts Payable                                                        $ 73,736        $ 64,836         $ 43,986

TOTAL CURRENT LIABILITIES                                                $ 88,736        $ 79,836         $ 58,986

STOCKHOLDER'S EQUITY
 Common stock, $0.01 par value,
 authorized 50,000,000 shares
 issued and outstanding at
 October 31, 1998-4, 165,705 shares                                                                        $ 41,657
 October 31, 1999-4, 165,705 shares                                                       $ 41,657
 October 31, 2000-4, 165,705 shares                                       $ 41,657

Additional paid-in-capital                                                 128,833         128,833          128,833

Deficit accumulated during
the development stage                                                   $ (238,476)     $ (229,576)       $(208,726)

 TOTAL STOCKHOLDER'S EQUITY                                              $ (67,986)      $ (59,086)       $ (38,236)

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                                                      $ 20,750        $ 20,750         $ 20,750


</TABLE>

    The accompanying notes are an integral pat of these financial statements
<PAGE>
                          INTERACTIVE MOTORSPORTS, INC.
                     (FORMERLY PRECIOUS METAL MINES, INC.)
                          (A DEVELOPMENT STAGE COMPANY)

                             STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                         Year               Year               Year          Aug. 10, 1987
                                        Ended              Ended              Ended           (inception)
                                       October            October            October          to Oct. 31
                                       31, 2000           31, 1999           31, 1998            2000
INCOME
<S>                                             <C>                <C>                <C>           <C>
 Revenue                                        $ -                $ -                $ -           $ 1,500

TOTAL INCOME                                    $ -                $ -                $ -           $ 1,500

EXPENSES
  General and
  Administrative                             $ 8,900           $ 20,850           $ 18,070         $ 146,655
  Financing Costs                                $ -                $ -               $ -           $ 31,201
  Property Costs                                 $ -                $ -               $ -           $ 62,120

  TOTAL EXPENSES                            $  8,900           $ 20,850           $ 18,070         $ 239,976

NET PROFIT LOSS (-)                         $ (8,900)         $ (20,850)         $ (18,070)       $ (237,976)

Net Profit per share
Basic/Diluted                                   $ (0)              $ (0)              $ (0)             $ (0)

AVERAGE NUMBER OF
SHARES OF COMMON STOCK
OUTSTANDING                              $ 4,165,705         $ 4,165,705        $ 4,165,705       $ 2,104,050


</TABLE>



    The accompanying notes are an integral pat of these financial statements
<PAGE>
                          INTERACTIVE MOTORSPORTS, INC.
                     (FORMERLY PRECIOUS METAL MINES, INC.)
                          (A DEVELOPMENT STAGE COMPANY)

                        STATEMENT OF STOCKHOLERS' EQUITY

<TABLE>
<CAPTION>
                                                                           Additional
                                     Common Stock                           paid-in          Accumulated
                                        Shares             Amount           capital            Deficit


Balance
<S>     <C> <C>                          <C>                 <C>              <C>                 <C>
October 31, 1997                         $ 4,165,705         $ 41,657         $ 128,833           $ (190,656)

Net loss year ended
October 31, 1998                                                                                   $ (18,070)

Balance
October 31, 1998                         $ 4,165,705         $ 41,657         $ 128,833           $ (208,726)

Net loss year ended
October 31, 2000                                                                                    $ (8,900)

Balance
October 31, 2000                         $ 4,165,705         $ 41,657         $ 128,833           $ (238,476)


</TABLE>







    The accompanying notes are an integral pat of these financial statements

<PAGE>
                          INTERACTIVE MOTORSPORTS, INC.
                     (FORMERLY PRECIOUS METAL MINES, INC.)
                          (A DEVELOPMENT STAGE COMPANY)

                             STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                    Year               Year               Year          Aug. 10, 1987
                                                   Ended              Ended              Ended           (inception)
                                                  October            October            October          to Oct. 31
                                                  31, 2000           31, 1999           31, 1998            2000

Cash Flows from
Operating Activities
<S>                                                    <C>               <C>                <C>              <C>
  Net Loss                                       $ (8,900)         $ (20,850)         $ (18,070)       $ (238,476)
  Adjustment to
  reconcile net loss
  to net cash
  provided by operating
 activities                                           $ -                $ -                $ -               $ -

Changes in assets and
liabilities
 Increase in notes
 receivable                                           $ -                $ -                $ -          $ 20,750
 increase in
Stockholders' Advances                                  $ -                $ -           $ 15,000          $ 15,000
Accounts Payable                                 $ 8,900           $ 20,850            $ 3,070           $ 73,736

Net cash used in
operating activities                                  $ -                $ -                $ -        $ (170,490)

Cash flows from
investing activities                                  $ -                $ -                $ -               $ -

Cash flows from
Financing Activities
 Issuance of common                                  $ -                $ -                 $ -          $ 170,490
 stock

Net increase (decrease)
in cash                                              $ -                $ -                 $ -               $ -

Cash,
beginning of period                                  $ -                $ -                 $ -               $ -

Cash,
end of period                                        $ -                $ -                 $ -               $ -


</TABLE>

    The accompanying notes are an integral pat of these financial statements
<PAGE>






                          INTERACTIVE MOTORSPORTS, INC.
                      (FORMERLY PRECIOUS METAL MINES, INC.
                          (A Development Stage Company)


                          NOTES TO FINANCIAL STATEMENTS
             October 31, 2000, October 31, 1999, and October 31, 19%


NOTE 1 - HISTORY AND ORGANIZATION OF THE COMPANY

         The Company was organized  August 10, 1987, under the laws of the State
of Nevada, as Precious Metal Mines, Inc. The Company currently has no operations
and, in accordance  with SPAS #7, is considered a development  stage company- On
May 5, 2000, the Company changed its name to Interactive Motorsports , Inc.

         On August 10, 1987,  the Company issued 130,000 shares of it's $.0l par
value common stock for $ 1,300.

         On August 10, 1987,  the Company issued 750,000 shares of it's sun. par
value common stock for the Nel Property,  a. precious metals mining property. On
August 31, 1993, a new company (Nelloro  Corporation) was formed to acquire the
Nei Property.  Nelloro Corporation paid Precious Metal Mines in its common stock
which shares were then spun--off to Precious Metal Mines stockholders.

         On September 6, 1993, the Company  completed a public of offering.  The
Company  sold 80,800  shares of common stock at a price of $1.25 per share for a
total amount raised 0: $101,000.

         On April 4, 1994, the Company reverse split it's common stock 1:3, thus
reducing the number of  outstanding  common stock shares from 960,800  shares to
320,267 shares.

         On May 13,  1994,  the Company  issued  91,000  shares or it's $.01 par
value common stock for services, for no consideration ion.

         On August 7, 1994, the Company forward split its common stock 3:1, thus
increasing the number of outstanding  common stock shares from 411,267 shares to
1,233,800 shares.

         On August 26, 1994, the State of Nevada approved the Company's restated
Articles of  Incorporation,  which increased its  capitalization  from 7,500,000
common shares to 50,000,000  common shares- The par value remained  unchanged at
$.0l.

         On August 12, 1996,  the Company issued 431,905 shares of it's $.0l par
value common stock for $43,190.

         On December 18, 1996, the Company issued  2,500,0CC shares of it's $-O1
par value common stock for $25,000.




<PAGE>


                          INTERACTIVE MOTORSPORTS, INC.
                       (FORMERLY PRECIOUS METAL MINES, INC
                          (A Development Stage Company)


                     NOTES TO FINANCIAL STATEMENTS CONTINUED
               October 31, 2000, October 31, 1999, and October 31,
                                      1993


NOTE 2 - ACCOUNTING POLICIES AND PROCEDURES

         Accounting  policies and procedures have not been deter mined except as
follows:

         1. The Company uses the accrual method of accounting.

         2. Earnings per share is computed using the weighted average  number of
         shares of common stock outstanding.

         3. The  Company has not yet  adopted  any policy  regarding  payment of
         dividends. No dividends have been paid since in inception.

NOTE 3 - GOING CONCERN

         The Company's  financial  statements  are prepared  using the generally
accepted   accounting   principles   applicable  to  a going  concern,   which
contemplates  the  realization  of asse~s and  liquidation of liabilities in the
norma].  course of  business.  However,  the  Company  has no current  source of
revenuet Without  realization of additional  capital,  it would be un likely for
the Company to  continue as a going  concern.  It's  management's  plan to seek
additional capital through a merger with an existing operating company.

NOTE 4 - RELATED PARTY TRANSACTION

         The Company neither owns or leases any real or personal  property.  The
officers and directors of the Company are involved in other business  activities
and. may, in the future, become involved in other business  opportunities.  If a
specific  business  opportunity  becomes  available,  such  persons  may  face a
conflict in selecting  between the Company and their other  business  interests.
The Company has not formulated a policy for the resolution of such conflicts-

NOTE 5 - WARRANTS AND OPTIONS

         There are no warrants or options  outstanding to acquire any additional
shares of common stock.

NOTE 6 - STOCKHOLDERS ADVANCES

         While the Company is seeking  additional  capital through a merger with
an existing operating  company,  an officer of the Company has advanced funds on
behalf of the  Company  to pay for any costs  incurred  by it.  These  funds are
interest tree.