|  Delaware                                                            | 11-3763974                                   |
|---------------------------------------------------------------------------|----------------------------------------------|
|  (State      of incorporation or or other jurisdiction organization) |  (IRS      Employer Identification No.) |

| Large      Accelerated Filer o                | Accelerated      Filer o         |
|-----------------------------------------------|----------------------------------|
| Non-accelerated      Filer   o | Smaller      reporting company x |

----

----

|                                                      |   |              |        |   |             |    |
|-----------------------------------------------------------|--------|-------------------|-------------|--------|------------------|---------|
|                                                      |   |              |        |   |             |    |
|                                                      |   | (Unaudited)       |        |   |             |    |
|                                                      |   | September      30 |        |   | December      31 |    |
|                                                      |   | 2009              |        |   | 2008             |    |
| ASSETS                                                    |   |              |        |   |             |    |
| CURRENT      ASSETS                                       |   |              |        |   |             |    |
| Cash                                                      |   | $                 | -           |   |             | $       | 307 |   |
| Receivables                                               |   |              | 3,873       |   |             |    | 15,420 |   |
| Deposits                                                  |   |              | 10,000      |   |             |    | 12,026 |   |
| Total      Current Assets                                 |   |              | 13,873      |   |             |    | 27,753 |   |
|                                                      |   |              |        |   |             |    |   |   |
| LONG-TERM      DEPOSITS                                   |   |              | 230,000     |   |             |    | 230,000 |   |
|                                                      |   |              |        |   |             |    |   |   |
| FIXED      ASSETS                                         |   |              |        |   |             |    |   |   |
| Building      and Equipment                               |   |              | 2,158,876   |   |             |    | 2,158,876 |   |
| Asset      retirement obligations                         |   |              | 230,000     |   |             |    | 230,000 |   |
| Less      accumulated depreciation                        |   |              | (1,206,285  | )      |             |    | (1,097,209 | ) |
|                                                      |   |              | 1,182,591   |   |             |    | 1,291,667 |   |
|                                                      |   |              |        |   |             |    |   |   |
|                                                      |   |              |        |   |             |    |   |   |
| TOTAL      ASSETS                                         |   | $                 | 1,426,464   |   |             | $       | 1,549,420 |   |
|                                                      |   |              |        |   |             |    |   |   |
|  LIABILITIES      & STOCKHOLDER'S EQUITY         |   |              |        |   |             |    |   |   |
| CURRENT      LIABILITIES                                  |   |              |        |   |             |    |   |   |
| Bank      Overdraft                                       |   | $                 | 43          |   |             | $  | - |   |
| Accounts      payable                                     |   |              | 362,833     |   |             |    | 270,150 |   |
| Accrued      interest payable                             |   |              | 98,832      |   |             |    | 65,317 |   |
| Loans      payable - current                              |   |              | 432,206     |   |             |    | 416,274 |   |
| Due      to related party                                 |   |              | 75,184      |   |             |    | 28,472 |   |
| Other      current liabilities                            |   |              | 97,334      |   |             |    | 53,105 |   |
| Total      Current Liabilities                            |   |              | 1,066,432   |   |             |    | 833,318 |   |
|                                                      |   |              |        |   |             |    |   |   |
| OTHER      LIABILITIES                                    |   |              |        |   |             |    |   |   |
| Asset      retirement obligations                         |   |              | 230,000     |   |             |    | 230,000 |   |
| Loans      payable - Due beyond one year                  |   |              | 378,550     |   |             |    | 334,714 |   |
|                                                      |   |              | 1,674,982   |   |             |    | 1,398,032 |   |
|                                                      |   |              |        |   |             |    |   |   |
| STOCKHOLDERS'      EQUITY                                 |   |              |        |   |             |    |   |   |
| Common      stock, 200,000,000 shares authorized, $0.0001 |   |              |        |   |             |    |   |   |
| par      value; 167,908,116 and 160,748,416 shares        |   |              |        |   |             |    |   |   |
| issued      and outstanding, respectively                 |   |              | 16,788      |   |             |    | 16,072 |   |
| Additional      paid-in capital                           |   |              | 10,249,108  |   |             |    | 9,972,214 |   |
| Accumulated      other comprehensive income               |   |              | (105,985    | )      |             |    | (105,985 | ) |
| Deficit      accumulated during exploration stage         |   |              | (10,408,429 | )      |             |    | (9,730,913 | ) |
|                                                      |   |              |        |   |             |    |   |   |
| TOTAL      STOCKHOLDERS' EQUITY                           |   |              | (248,518    | )      |             |    | 151,388 |   |
|                                                      |   |              |        |   |             |    |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY           |   | $                 | 1,426,464   |   |             | $       | 1,549,420 |   |
|                                                      |   |              |        |   |             |    |   |   |
|                                                      |   |              |        |   |             |

----

|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    | Period      from                                                                                                                                                                                    |
|---------------------------------------------------|--------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    | November      6, 1996                                                                                                                                                                               |
|                                              |                                                                                             |   | (Unaudited)                                                                                                               |   |                                                                                                                | (Unaudited)                                                                                            |   |                                                                                                                            | (Inception      of      |
|                                              |                                                                                             |   | Three      Months Ended                                                                                                   |   |                                                                                                                | Nine      Months Ended                                                                                 |   |                                                                                                                            | Exploration      Stage) |
|                                              |                                                                                             |   | September      30,                                                                                                        |   |                                                                                                                | September      30,                                                                                     |   |                                                                                                                            | (Unaudited)             |
|                                              |                                                                                             |   | 2009                                                                                                                      |   | 2008                                                                                                                |                                                                                                   |   | 2009                                                                                                                            |                    | 2008                                                                                                                                  |                                                                                                                                                          |    | To      September 30, 2009                                                                                                                                                                          |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| REVENUE                                           |                                                                                             |   |                     - |   |                    - |                                                                                                   |   |                      - |                    |                       - |                                                                                                                                                          | $  |                            19,337                            |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| EXPENSES                                          |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| Cost      of Revenue                              |                                                                                             |   |                     - |   |                    - |                                                                                                   |   |                      - |                    |                       - |                                                                                                                                                          |    |                            86,901                            |
| Professional      fees                            |                                                                                             |   |               5,450                                 |   |                    - |                                                                                                   |   |               27,089                                      |                    |                       - |                                                                                                                                                          |    |                       1,682,541                                                       |
| Royalty      fees                                 |                                                                                             |   |             13,651                                            |   |                    - |                                                                                                   |   |               25,269                                      |                    |                       - |                                                                                                                                                          |    |                          172,706                                       |
| Depreciation      and amortization                |                                                                                             |   |             36,359                                            |   |            50,461                                            |                                                                                                   |   |             109,076                                                 |                    |             151,383                                                       |                                                                                                                                                          |    |                       1,288,557                                                       |
| Impairment      of long-lived assets              |                                                                                             |   |                     - |   |                    - |                                                                                                   |   |                      - |                    |                       - |                                                                                                                                                          |    |                          582,176                                       |
| Loss      on disposal of assets                   |                                                                                             |   |                     - |   |                    - |                                                                                                   |   |                      - |                    |                       - |                                                                                                                                                          |    |                            11,920                            |
| Management      fees and salaries                 |                                                                                             |   |           153,625                                                       |   |          323,237                                                       |                                                                                                   |   |             318,655                                                 |                    |             825,950                                                       |                                                                                                                                                          |    |                       3,688,690                                                       |
| General      exploration expense                  |                                                                                             |   |               6,167                                 |   |                    - |                                                                                                   |   |                 7,123                           |                    |             38,929                                                        |                                                                                                                                                          |    |                          475,287                                       |
| Other      general and administrative             |                                                                                             |   |             53,153                                            |   |          124,833                                                       |                                                                                                   |   |             104,181                                                 |                    |             388,738                                                       |                                                                                                                                                          |    |                       5,104,588                                                       |
| TOTAL      EXPENSES                               |                                                                                             |   |           268,405                                                       |   |          498,531                                                       |                                                                                                   |   |             591,393                                                 |                    |          1,405,000                                                                       |                                                                                                                                                          |    |                           13,093,366                                                            |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| LOSS      FROM OPERATIONS                         |                                                                                             |   |           268,405                                                       |   |          498,531                                                       |                                                                                                   |   |             591,393                                                 |                    |          1,405,000                                                                       |                                                                                                                                                          |    |                   (13,074,029)                                                                            |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| OTHER      INCOME (EXPENSE)                       |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| Interest      income                              |                                                                                             |   |                     - |   |                    - |                                                                                                   |   |                                                                                                                            |                    |                       - |                                                                                                                                                          |    |                              3,172                 |
| Gain      from extinguishment of debt             |                                                                                             |   |                     - |   |                    - |                                                                                                   |   |                                                                                                                            |                    |                       - |                                                                                                                                                          |    |                       1,047,634                                                       |
| Foreign      currency (gain) loss                 |                                                                                             |   |            37,981                                                  |   |            (10,741)                                          |                                                                                                   |   |             86,121                                                  |                    |              (15,897)                                                |                                                                                                                                                          |    |                        (143,716)                                                 |
| Other      income                                 |                                                                                             |   |                     - |   |                    - |                                                                                                   |   |                      - |                    |                       - |                                                                                                                                                          |    |                                 594 |
| TOTAL      OTHER INCOME (EXPENSE)                 |             37,981                   |   |            (10,741)                                                |   |                                                                                                                |             86,121                         |   |              (15,897)                                          |                    |                                                                                                                                  |                          907,684 |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| LOSS      FROM OPERATIONS                         |                                                                                             |   | 306,386                                                                                                                   |   |            487,790                                           |                                                                                                   |   |             677,514                                                 |                    |          1,389,103                                                                       |                                                                                                                                                          |    |                   (12,166,345)                                                                            |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| INCOME      TAXES                                 |                                                                                             |   |                     - |   |                    - |                                                                                                   |   |                      - |                    |                       - |                                                                                                                                                          |    |                                                                                                                                                                                                |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| NET      LOSS                                     |                                                                                             |   |           306,386                                                       |   |            487,790                                           |                                                                                                   |   |             677,514                                                 |                    |          1,389,103                                                                       |                                                                                                                                                          |    |                   (12,166,345)                                                                            |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| NET      LOSS PER SHARE, BASIC AND DILUTED        |                (0.01) |   |                (0.01)                          |   |                                                                                                                |                 (0.01) |   |                  (0.01)                    |                    |                                                                                                                                  |                                                                                                                                                          |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
| WEIGHTED      AVERAGE NUMBER OF COMMON            |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |
| STOCK      SHARES OUTSTANDING, BASIC AND DILUTED: |    160,748,416                                                                    |   |   139,149,728                                                                                                   |   |                                                                                                                | 167,908,116                                                                                            |   | 139,149,728                                                                                                                     |                    |                                                                                                                                  |                                                                                                                                                          |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
|                                              |                                                                                             |   |                                                                                                                      |   |                                                                                                                |                                                                                                   |   |                                                                                                                            |                    |                                                                                                                                  |                                                                                                                                                          |    |                                                                                                                                                                                                |
|                                              |

----

|                                                     |   |                        |     |                    |        |                       |       | Period      from        |   |
|----------------------------------------------------------|--------|-----------------------------|----------|-------------------------|-------------|----------------------------|------------|-------------------------|--------|
|                                                     |   |                        |     |                    |        |                       |       | November      6, 1996   |   |
|                                                     |   |                        |     |                    |        |                       |       | (Inception      of      |   |
|                                                     |   |                        |     |                    |        |                       |       | Exploration      Stage) |   |
|                                                     |   | Nine Months      Ended |     | (Unaudited)             |        |
|                                                     |   | September      30, 2009     |     | September      30, 2008 |        | To      September 30, 2009 |       |
|                                                     |   | (Unaudited)                 |     |                    | (Unaudited) |                       |       |                    |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:               |   |
| Net      loss                                            |   | $                           | (677,514 | )                       |        | $                          | (1,389,103 | )                       |   | $ | (12,166,345 | ) |
| Adjustments      to reconcile net loss                   |   |                        |     |                    |        |                       |       |                    |   |
| to      net cash used by operating activities:           |   |                        |     |                    |        |
| Depreciation                                             |   |                        | 109,076  |                    |        |                       | 151,383    |                    |   |   | 1,280,265 |   |
| Provision      for bad debts                             |   |                        | -        |                    |        |                       | -          |                    |   |   | 49,676 |   |
| Stock      issued for services                           |   |                        | -        |                    |        |                       | 220,500    |                    |   |   | 2,127,023 |   |
| Impairment      of long-lived assets                     |   |                        | -        |                    |        |                       | -          |                    |   |   | 297,882 |   |
| Stock      Compensation                                  |   |                        | 276,894  |                    |        |                       | 192,410    |                    |   |   | 276,894 |   |
| Loss      on disposal of assets                          |   |                        | -        |                    |        |                       | -          |                    |   |   | 66,170 |   |
| Accrued      interest payable                            |   |                        | -        |                    |        |                       | 8,760      |                    |   |   | - |   |
| Gain      on extinguishment of debt                      |   |                        | -        |                    |        |                       | -          |                    |   |   | (1,047,634 | ) |
| Changes      in:                                         |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Bank      Overdraft                                      |   |                        | 43       |                    |        |                       | -          |                    |   |   | 43 |   |
| Receivables                                              |   |                        | 11,547   |                    |        |                       | 2,634      |                    |   |   | (8,042 | ) |
| Inventory                                                |   |                        | -        |                    |        |                       | -          |                    |   |   | (5,527 | ) |
| Prepaid      expenses                                    |   |                        | -        |                    |        |                       | -          |                    |   |   | (540 | ) |
| Deposits                                                 |   |                        | 2,026    |                    |        |                       | 148        |                    |   |   | (2,026 | ) |
| Accounts      payable and accrued expenses               |   |                        | 92,683   |                    |        |                       | 188,268    |                    |   |   | 181,806 |   |
| Accrued      interest payable                            |   |                        | 33,514   |                    |        |                       | -          |                    |   |   | 367,112 |   |
| Customer      deposit                                    |   |                        | -        |                    |        |                       | 47,619     |                    |   |   |               - |   |
| Due      to related parties                              |   |                        | 46,712   |                    |        |                       | 37,248     |                    |   |   | 711,138 |   |
| Net      cash used in operating activities               |   |                        | (105,019 | )                       |        |                       | (540,133   | )                       |   |   | (7,861,051 | ) |
| Cash      flows from investing activities:               |   |                        |     |                    |        |                       |       |                    |   |
| Purchase      of building and equipment                  |   |                        | -        |                    |        |                       | -          |                    |   |   | (2,116,266 | ) |
| Advance      received for sale of Equipment              |   |                        | 44,229   |                    |        |                       | -          |                    |   |   | 97,334 |   |
| Investment      in Multiplex                             |   |                        | -        |                    |        |                       | -          |                    |   |   | (75,000 | ) |
| Acquisition      of goodwill                             |   |                        | -        |                    |        |                       | -          |                    |   |   | (149,057 | ) |
| Loan      to related party                               |   |                        | -        |                    |        |                       | -          |                    |   |   | (50,000 | ) |
| Loan      repayments                                     |   |                        | 59,768   |                    |        |                       | -          |                    |   |   | 59,768 |   |
| Long-term      deposits                                  |   |                        | -        |                    |        |                       | -          |                    |   |   | (159,600 | ) |
| Net      cash used in investing activites                |   |                        | 103,997  |                    |        |                       | -          |                    |   |   | (2,392,821 | )  |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:               |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Net      proceeds from sale of common stock              |   |                        | -        |                    |        |                       | 210,201    |                    |   |   | 4,747,267 |   |
| Subscriptions      Received                              |   |                        |     |                    |        |                       | 265,000    |                    |   |   |   |   |
| Net      proceeds from loans payable                     |   |                        | -        |                    |        |                       |       |                    |   |   | 7,272,185 |   |
| Loan      repayments                                     |   |                        | -        |                    |        |                       | (18,798    | )                       |   |   | (1,786,020 | ) |
| Proceeds      from mortgage                              |   |                        | -        |                    |        |                       | -          |                    |   |   | 17,000 |   |
| Principal      payments on mortgage                      |   |                        | -        |                    |        |                       | -          |                    |   |   | (17,000 | ) |
| Stock      issued in settlement of debt                  |   |                        | -        |                    |        |                       | -          |                    |   |   |            0 |   |
| Cash      acquired in acquisition of Peanut Butter & |   |                        | -        |                    |
| Jelly,      Inc.                                         |   |                        | -        |                    |        |                       | 140        |                    |   |   | 140 |   |
| Net      cash provided by financing activities           |   |                        | -        |                    |        |                       | 456,403    |                    |   |   | 10,233,572 |   |
| Effect      of Exchange Rate on Changes in Cash          |   |                        | 716      |                    |        |                       | (15,897    | )                       |   |   | 20,607 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH                     |   |                        | (307     | )                       |        |                       | (99,627    | )                       |   |   | 307 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Cash,      beginning of period                           |   |                        | 307      |                    |        |                       | 104,236    |                    |   |   | - |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Cash,      end of period                                 |   | $                           | -        |                    |        | $                          | 4,609      |                    |   | $ | 307 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| SUPPLEMENTAL      CASH FLOW DISCLOSURES:                 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Interest      paid                                       |   | $                           | -        |                    |        | $                          | -          |                    |   | $ |   |   |
| Income      taxes paid                                   |   | $                           | -        |                    |        | $                          | -          |                    |   | $ |   |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Non-cash      investing and financing activities:        |   |                        |     |                    |        |
|                                                     |   |                        |     |                    |        |                       |       |                    |
|  Shares      issued for related party debt          |   |                        | -        |                    |        |                       | -          |                    |   |   | 61,200 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Shares      issued for debt                              |   |                        | -        |                    |        |                       | -          |                    |   |   |  11,437,279 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Shares      issued for services                          |   |                        | 142,478  |                    |        |                       | -          |                    |   |   |  642,617 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Shares      issued for investment                        |   |                        | -        |                    |        |                       | -          |                    |   |   | 200,030 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Shares      issued for accrued interest                  |   |                        | -        |                    |        |                       | -          |                    |   |   | 651,702 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Long      term deposits financed by accounts payable     |   |                        | -        |                    |        |                       | -          |                    |   |   | 70,400 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Property      costs financed by issuance of common stock |   |                        | -        |                    |        |                       | -          |                    |   |   | 30,000 |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Equipment      financed by:                              |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
| Accounts      payable                                    |   |                        | -        |                    |        |                       | -          |                    |   |   | 200,000 |   |
| Issuance      of common stock                            |   |                        | -        |                    |        |                       | -          |                    |   |   | - |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
|                                                     |   |                        | -        |                    |        |                       | -          |                    |   |   |   |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
|                                                     |   |                        |     |                    |        |                       |       |                    |   |   |   |   |
|                                                     |   |

----

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| Equity      Compensation Plans Not approved by security holder |   | Number      of securities to be issued upon exercise of outstanding      Options |      |   | Weighted      average exercise price of outstanding options |   |   | Weighted      AverageFair      Value |   |
|----------------------------------------------------------------|--------|----------------------------------------------------------------------------------|-----------|--------|-------------------------------------------------------------|--------|--------|--------------------------------------|--------|
|                                                           |   |                                                                             |      |   |                                                        |   |   |                                 |   |
| Outstanding      Dec 31, 2008                                  |   |                                                                             | 7,799,999 |   |                                                        |   | $0.106 |                                 |   |   | $0.09 |   |
| Granted                                                        |   |                                                                             | 0         |   |                                                        |   |   |                                 |   |   |   |   |
| Exercised                                                      |   |                                                                             | 0         |   |                                                        |   | $0.00  |                                 |   |   | $0.00 |   |
| Cancelled      or Expired                                      |   |                                                                             | 0         |   |                                                        |   |   |                                 |   |   |   |   |
| Total                                                          |   |                                                                             | 7,799,999 |   |                                                        |   |   |                                 |   |   |   |   |
|                                                           |   |                                                                             |      |   |                                                        |   |   |                                 |   |   |   |   |
| Exercisable                                                    |   |                                                                             | 6,799,999 |   |                                                        |   |   |                                 |   |   |   |   |
|                                                           |   |                                                                             |      |   |                                                        |   |   |                                 |   |   |   |   |

----

----

----

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| (i)            | Execution      of a Definitive Agreement in respect to the  Transaction. |
|-----------------------------------------|--------------------------------------------------------------------------|

| (ii)            | Receipt      of the conditional approval of the Exchange for the      Transaction. |
|------------------------------------------|------------------------------------------------------------------------------------|

| (iii)       | IMC      having received all required shareholder and regulatory approvals for the      Transaction. |
|-------------------------------------------|------------------------------------------------------------------------------------------------------|

| (iv)       | Such      other conditions as may be required by Research  Capital. |
|------------------------------------------|---------------------------------------------------------------------|

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----

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| EXHIBIT NO.       | DESCRIPTION                                                                                                                                                                         |
|-------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                            |                                                                                                                                                                                |
| 31.1                                            | CERTIFICATION      OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY      ACT                                                                                |
| 31.2                                            | CERTIFICATION      OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY      ACT                                                                                |
| 32.1                                            | CERTIFICATION      OF DISCLOSURE BY CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C.      SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT      OF 2002 |
| 32.2                                            | CERTIFICATION      OF DISCLOSURE BY CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION      1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF      2002      |

----

|                                | INDUSTRIAL      MINERALS, INC. |                            |
|-------------------------------------|--------------------------------|---------------------------------|
|                                |                           |                            |   |
| Dated:       November 16, 2009 | By:                            | /s/ Robert      G. Dinning |   |
|                                |                           | Robert      G. Dinning          |   |
|                                |                           | President      and CEO          |   |
|                                |                           |                            |   |

|                                | INDUSTRIAL      MINERALS, INC. |                            |
|-------------------------------------|--------------------------------|---------------------------------|
|                                |                           |                            |   |
| Dated:       November 16, 2009 | By:                            | /s/ Robert      G. Dinning |   |
|                                |                           | Robert      G. Dinning          |   |
|                                |                           | Chief      Financial Officer    |   |
|                                |                           |                            |   |

----