----

----

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

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

|   | Nevada                                                                             | 94-3355026                           |   |
|--------|------------------------------------------------------------------------------------|--------------------------------------|--------|
|   | (State or other jurisdiction of incorporation or organization)                     | (I.R.S. Employer Identification No.) |   |
|   |                                                                               |                                 |   |
|   | Suite 1500-885 West Georgia StreetVancouver, British Columbia Canada V6C 3E8  |                                 |
|   | (Address of principal executive offices, including zip code)                       |                                 |

|   | Registrant’s telephone number, including area code:        | 604-687-9887                 |
|--------|------------------------------------------------------------------|------------------------------|
|   | Securities registered pursuant to Section 12(b) of the Act: | None                         |
|   | Securities registered pursuant to Section 12(g) of the Act: | $.001 par value common stock |

----

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

----

TAB

----

| Section  | Heading                                                                                                             |
|----------|---------------------------------------------------------------------------------------------------------------------|
| Part I   |                                                                                                                |
| Item 1   | Business                                                                                                            |
| Item 2   | Properties                                                                                                          |
| Item 3   | Legal Proceedings                                                                                                   |
| Item 4   | Submission of Matters to a Vote of Security Holders                                                                 |
| Part II  |                                                                                                                |
| Item 5   | Market for the Registrant's Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities |
| Item 6   | Selected Financial Data                                                                                             |
| Item 7   | Management's Discussion and Analysis of Financial Condition and Results of Operations                               |
| Item 7A  | Quantitative and Qualitative Disclosures About Market Risk                                                          |
| Item 8   | Financial Statements and Supplementary Data                                                                         |
| Item 9   | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                                |
| Item 9A  | Controls and Procedures                                                                                             |
| Item 9B  | Other Information                                                                                                   |
| Part III |                                                                                                                |
| Item 10  | Directors, Executive Officers, and Corporate Governance                                                             |
| Item 11  | Executive Compensation                                                                                              |
| Item 12  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                      |
| Item 13  | Certain Relationships and Related Transactions, and Director Independence                                           |
| Item 14  | Principal Accounting Fees and Services                                                                              |
| Part IV  |                                                                                                                |
| Item 15  | Exhibits, Financial Statement Schedules                                                                             |

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| ITEM 1. | BUSINESS |
|---------|----------|

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|   | 1. | pH ranging from a strong acid level of 1.8 (stronger than stomach acid) to a strong alkali level of 13.8. (the pH scale is calibrated from 1, highly acidic, to 14, highly alkali); |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Enzymatic action using protease, which targets the amino acid bonds, and glycosidase, which targets the amino acid bonds, and glycosidase, which targets the sugar molecules; and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Temperatures ranging from -196°C (cryopreservation) to +37°C (body temperature). |
|--------|----|--------------------------------------------------------------------------------------------|

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| § | Stem cells (human)         |   | § | Adult skin fibroblast cells     |
|--------|----------------------------|--------|--------|---------------------------------|
| § | Whole blood cells          |   | § | Heart cells (cardiac myocites)  |
| § | Blood Platelet cells       |   | § | Liver cells (hepatocites)       |
| § | Heart tissue               |   | § | Embryonic skin fibroblast cells |
| § | Hela (cancer) cells        |   | § | Islet cells (pancreatic)        |
| § | Kidney (KB and vero) cells |   | § | Stem cells (mouse)              |

|   | § | temperatures ranging from -80° C to +37° |
|--------|--------|----------------------------------------------------|

|   | § | harsh sterilizing radiation |
|--------|--------|-----------------------------|

|   | § | 254 nanometer wavelength |
|--------|--------|--------------------------|

|   | § | hydrogen peroxide (H2O20 |
|--------|--------|--------------------------|

|   | § | powerful oxidant |
|--------|--------|------------------|

|   | § | serum free culture media |
|--------|--------|--------------------------|

|   | § | food/growth/nutrients factors (fetal bovine serum) withheld |
|--------|--------|-------------------------------------------------------------|

|   | § | Interleukin 1 Beta, a standard agent for stimulating inflammation in cell testing |
|--------|--------|-----------------------------------------------------------------------------------|

|   | § | All of the above tests are also considered to cause inflammation |
|--------|--------|------------------------------------------------------------------|

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|   | § | Scientific and technological capability; |
|--------|--------|------------------------------------------|

|   | § | Proprietary know-how; |
|--------|--------|-----------------------|

|   | § | The ability to develop and market products and processes; |
|--------|--------|-----------------------------------------------------------|

|   | § | The ability to obtain FDA or other required regulatory approvals; |
|--------|--------|-------------------------------------------------------------------|

|   | § | The ability to manufacture products that meet applicable FDA requirements, (i.e. FDA’s Quality System Regulations) see Governmental Regulation section; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Access to adequate capital; |
|--------|--------|-----------------------------|

|   | § | The ability to attract and retain qualified personnel; and |
|--------|--------|------------------------------------------------------------|

|   | § | The availability of patent protection. |
|--------|--------|----------------------------------------|

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| ITEM 2.  | PROPERTIES |
|---------------|------------|

----

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

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

| ITEM 5. | MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|---------------------------------------------------------------------------------------------------------------------|

| 2008           | Low    | High   |
|----------------|--------|--------|
| First Quarter  | $.14   | $.52   |
| Second Quarter | .30    | .40    |
| Third Quarter  | .20    | .33    |
| Fourth Quarter | .12    | .23    |
|           |   |   |
| 2007           | Low    | High   |
| First Quarter  | $.36   | $.50   |
| Second Quarter | .32    | .45    |
| Third Quarter  | .24    | .42    |
| Fourth Quarter | .10    | .26    |

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EM 

| Year Ended December 31,           |   | 2004   |       |   | 2005   |   |       | 2006   |   |   | 2007       |   |   | 2008   |       |
|-----------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|
|                              |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |
| Statement of Operations Data:     |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |
| Revenue                           |   | $      | -          |   |   | $      | -          |   |   | $      | 2,000      |   |   | $      | -          |   |   | $ | - |   |
| Operating expenses:               |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Research and licensing            |   |   | 1,189,288  |   |   |   | 410,650    |   |   |   | 180,709    |   |   |   | 996,538    |   |   |   | 405,281 |   |
| Consulting and Professional       |   |   | 5,034,546  |   |   |   | 4,248,862  |   |   |   | 1,582,219  |   |   |   | 1,553,000  |   |   |   | 843,080 |   |
| General and Administrative        |   |   | 144,196    |   |   |   | 169,028    |   |   |   | 204,705    |   |   |   | 178,731    |   |   |   | 302,457 |   |
| Total operating expenses          |   |   | 6,368,030  |   |   |   | 4,826,540  |   |   |   | 1,967,633  |   |   |   | 2,728,269  |   |   |   | 1,550,818 |   |
| Net loss                          |   |   | (6,368,030 | )      |   |   | (4,826,540 | )      |   |   | (1,965,633 | )      |   |   | (2,728,269 | ) |   |   | (1,550,818 | ) |
| Net loss per share:               |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Basic and diluted                 |   |   | (0.21      | )      |   |   | (0.13      | )      |   |   | (0.05      | )      |   |   | (0.06      | ) |   |   | (0.03 | ) |
| Weighted average number of shares |   |   | 29,941,359 |   |   |   | 38,598,215 |   |   |   | 43,233,617 |   |   |   | 45,749,464 |   |   |   | 53,004,810 |   |
|                              |   |   |       |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |

| Year Ended December 31,                     |   | 2004   |      |   | 2005   |   |       | 2006   |   |   | 2007       |   |   | 2008   |       |
|---------------------------------------------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|
|                                        |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |
| Balance Sheet Data:                         |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |
| Cash                                        |   | $      | 283,556   |   |   | $      | 96,571     |   |   | $      | 166,115    |   |   | $      | 37,350     |   |   | $ | 15,216 |   |
| Total assets                                |   |   | 284,986   |   |   |   | 111,771    |   |   |   | 613,950    |   |   |   | 147,776    |   |   |   | 257,222 |   |
| Convertible note payable                    |   |   | -         |   |   |   | 123,323    |   |   |   | -          |   |   |   | 300,000    |   |   |   | 300,000 |   |
| Common stock and additional paid-in capital |   |   | 9,924,738 |   |   |   | 14,503,305 |   |   |   | 16,997,354 |   |   |   | 19,323,983 |   |   |   | 20,997,995 |   |
| Total stockholders’ equity            |   |   | (467,852  | )      |   |   | (385,825   | )      |   |   | 199,249    |   |   |   | (261,049   | ) |   |   | (137,627 | ) |
|                                        |   |   |      |   |   |   |       |   |   |   |       |   |   |   |       |   |   |   |   |   |

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|                                             |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |
|--------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| Quarter Ended                                    | Mar. 31, 2007                                                         | June 30, 2007                                                         | Sept. 30, 2007                                                        | Dec. 31, 2007                                                         | Mar. 31, 2008                                                         | June 30, 2008                                                         | Sept. 30, 2008                                                        | Dec. 31, 2008                                                         |
| Statements of Operations Data:                   |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |
|                                             |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |
| Revenue                                          | $            - | $            - | $            - | $            - | $            - | $            - | $            - | $            - |
| Operating expenses:                              |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |
| Research and licensing                           | 60,000                                                                     | 81,503                                                                     | 30,000                                                                     | 825,035                                                                    | 95,202                                                                     | 207,024                                                                    | 87,275                                                                     | 15,780                                                                     |
| Consulting and Professional                      | 192,000                                                                    | 140,132                                                                    | 926,419                                                                    | 294,449                                                                    | 190,148                                                                    | 299,456                                                                    | 265,906                                                                    | 87,570                                                                     |
| General and Administrative                       | 34,365                                                                     | 38,585                                                                     | 51,413                                                                     | 54,368                                                                     | 53,424                                                                     | 108,841                                                                    | 76,332                                                                     | 63,860                                                                     |
| Total operating expenses                         | 286,365                                                                    | 260,220                                                                    | 1,007,832                                                                  | 1,173,852                                                                  | 338,774                                                                    | 615,321                                                                    | 429,513                                                                    | 167,210                                                                    |
| Net loss                                         | (286,365)                                                                  | (260,220)                                                                  | (1,007,832)                                                                | (1,173,852)                                                                | (338,774)                                                                  | (615,321)                                                                  | (429,513)                                                                  | (167,210)                                                                  |
| Net loss per share:                              |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |
| Basic and diluted                                | 0.01                                                                       | 0.01                                                                       | 0.02                                                                       | 0.03                                                                       | 0.01                                                                       | 0.01                                                                       | 0.01                                                                       | 0.01                                                                       |
| Weighted average number of shares (in thousands) | 44,889                                                                     | 45,169                                                                     | 46,158                                                                     | 45,749                                                                     | 49,573                                                                     | 52,521                                                                     | 55,822                                                                     | 53,005                                                                     |
|                                             |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |                                                                       |

| ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------|

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| ITEM 7A | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| ITEM 8. | FINANCIAL STATEMENTS |
|---------|----------------------|

----

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|   | BALANCE SHEETS |
|--------|----------------|

|   | STATEMENTS OF OPERATIONS |
|--------|--------------------------|

|   | STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) |
|--------|----------------------------------------------|

|   | STATEMENTS OF CASH FLOWS |
|--------|--------------------------|

|   | NOTES TO FINANCIAL STATEMENTS |
|--------|-------------------------------|

----

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| DAVIDSON &COMPANY LLP | Chartered Accountants | A Partnership of Incorporated Professionals |
|---------------------------|----------------------------|-----------------------------------------------------------------|

| Vancouver, Canada |   | Chartered Accountants |
|-------------------|--------|-----------------------|
|              |   |                  |
| May 8, 2009       |   |                  |

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| ASSETS                                                                                                                                                           |   | 2008   |        |   | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Current Assets                                                                                                                                                   |   |   |        |   |   |   |
| Cash                                                                                                                                                             |   | $      | 15,216      |   |   | $      | 37,350 |   |
| Prepaid expenses                                                                                                                                                 |   |   | 242,006     |   |   |   | 110,000 |   |
|                                                                                                                                                             |   |   |        |   |   |   |   |   |
| Total current assets                                                                                                                                             |   |   | 257,222     |   |   |   | 147,350 |   |
|                                                                                                                                                             |   |   |        |   |   |   |   |   |
| Computer equipment, net of accumulated depreciation of $3,388 and $2,963 respectively                                                                            |   |   | -           |   |   |   | 426 |   |
|                                                                                                                                                             |   |   |        |   |   |   |   |   |
| Total assets                                                                                                                                                     |   | $      | 257,222     |   |   | $      | 147,776 |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                   |   |   |        |   |   |   |   |   |
| Current Liabilities                                                                                                                                              |   |   |        |   |   |   |   |   |
| Accounts payable                                                                                                                                                 |   | $      | 78,349      |   |   | $      | 108,825 |   |
| Short-term loan (Note 3.)                                                                                                                                        |   |   | 16,500      |   |   |   | - |   |
| Convertible note payable (Note 4.)                                                                                                                               |   |   | 300,000     |   |   |   | 300,000 |   |
|                                                                                                                                                             |   |   |        |   |   |   |   |   |
| Total current liabilities                                                                                                                                        |   |   | 394,849     |   |   |   | 408,825 |   |
| Stockholders' Equity (Deficit)                                                                                                                                   |   |   |        |   |   |   |   |   |
| Common stock, $0.0000053 par value; 100,000,000 common shares authorized; 57,081,933 and 48,444,442 shares issued and outstanding for 2008 and 2007 respectively |   |   | 308         |   |   |   | 262 |   |
| Common stock issuable; 600,000 and 1,190,000 shares for 2008 and 2007 respectively                                                                               |   |   | 3           |   |   |   | 6 |   |
|                                                                                                                                                             |   |   |        |   |   |   |   |   |
| Additional paid-in capital                                                                                                                                       |   |   | 20,997,912  |   |   |   | 19,323,715 |   |
| Deficit accumulated during the development stage                                                                                                                 |   |   | (21,135,850 | )      |   |   | (19,585,032 | ) |
|                                                                                                                                                             |   |   |        |   |   |   |   |   |
| Total shareholders’ equity (deficit)                                                                                                                       |   |   | (137,627    | )      |   |   | (261,049 | ) |
|                                                                                                                                                             |   |   |        |   |   |   |   |   |
| Total liabilities and stockholders’ equity (deficit)                                                                                                       |   | $      | 257,222     |   |   | $      | 147,776 |   |

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|                                                 |   |   |       |   |   |   |       | Cumulative  |   |
|------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-------------|--------|
|                                                 |   |   |       |   |   |   |       | During the  |   |
|                                                 |   |   |       |   |   |   |       | Development |   |
|                                                 |   | 2008   |       |   | 2007   |   |       | Stage       |   |
|                                                 |   |   |       |   |   |   |       |        |   |
| Revenues                                             |   | $      | -          |   |   | $      | -          |        |   | $ | 2,000 |   |
| Expenses                                             |   |   |       |   |   |   |       |        |   |   |   |   |
|                                                 |   |   |       |   |   |   |       |        |   |   |   |   |
| Licenses                                             |   |   | -          |   |   |   | -          |        |   |   | 3,379,756 |   |
| Professional fees                                    |   |   | 130,052    |   |   |   | 418,724    |        |   |   | 3,361,564 |   |
| Consulting fees                                      |   |   | 713,028    |   |   |   | 1,134,276  |        |   |   | 11,081,107 |   |
| Research and development                             |   |   | 405,281    |   |   |   | 996,538    |        |   |   | 2,202,710 |   |
| General and administrative                           |   |   | 278,457    |   |   |   | 166,731    |        |   |   | 985,085 |   |
| Interest                                             |   |   | 24,000     |   |   |   | 12,000     |        |   |   | 84,162 |   |
|                                                 |   |   |       |   |   |   |       |        |   |   |   |   |
|                                                 |   |   | 1,550,818  |   |   |   | 2,728,269  |        |   |   | 21,094,384 |   |
| Loss from continuing operations                      |   |   | (1,550,818 | )      |   |   | (2,728,269 | )           |   |   | (21,092,384 | ) |
|                                                 |   |   |       |   |   |   |       |        |   |   |   |   |
| Discontinued Operations                              |   |   |       |   |   |   |       |        |   |   |   |   |
| Loss from operations of the discontinued segment     |   |   | -          |   |   |   | -          |        |   |   | (43,466 | ) |
|                                                 |   |   |       |   |   |   |       |        |   |   |   |   |
| Net loss                                             |   | $      | (1,550,818 | )      |   | $      | (2,728,269 | )           |   | $ | (21,135,850 | ) |
|                                                 |   |   |       |   |   |   |       |        |   |   |   |   |
| Net Loss per Common Share (basic and diluted)        |   | $      | (0.03      | )      |   | $      | (0.06      | )           |   |   |   |   |
|                                                 |   |   |       |   |   |   |       |        |   |   |   |   |
| Weighted average number of common shares outstanding |   |   | 53,004,810 |   |   |   | 45,749,464 |        |   |   |   |   |

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|                                                               |   |               |       |   |               |   |   |           |   |   |         |   |   |                     |   |   |                           |   |
|--------------------------------------------------------------------|--------|--------------------|------------|--------|--------------------|--------|--------|----------------|--------|--------|--------------|--------|--------|--------------------------|--------|--------|--------------------------------|--------|
|                                                               |   |  Common Stock |       |   |  Common Stock |   |   |           |   |   |         |   |   | Deficit Accumulated      |   |   |                           |   |
|                                                               |   |  Shares       |       |   |  Amount       |   |   | IssuableShares |   |   |  Amount |   |   | AdditionalPaid-inCapital |   |   | Stock Subscriptions Receivable |   |   | During the Development Stage |   |   |  Total |   |
|                                                               |   |               |       |   |               |   |   |           |   |   |         |   |   |                     |   |   |                           |   |   |   |   |   |   |   |
| Issuance of common stock, December 1999                            |   |               | 9,375,000  |   |               | $      | 50     |           |   |   | -            |   |   | $                        | -      |   |                           | $      | 4,950 |   |   | $ | - |   |   | $ | - |   |   | $ | 5,000 |   |
| Net loss for period                                                |   |               | -          |   |               |   | -      |           |   |   | -            |   |   |                     | -      |   |                           |   | - |   |   |   | - |   |   |   | (35 | ) |   |   | (35 | ) |
| Balance, December 31, 2000                                         |   |               | 9,375,000  |   |               |   | 50     |           |   |   | -            |   |   |                     | -      |   |                           |   | 4,950 |   |   |   | - |   |   |   | (35 | ) |   |   | 4,965 |   |
| Issuance of common stock, April 2001                               |   |               | 5,718,750  |   |               |   | 30     |           |   |   | -            |   |   |                     | -      |   |                           |   | 15,220 |   |   |   | - |   |   |   | - |   |   |   | 15,250 |   |
| Net loss for year                                                  |   |               | -          |   |               |   | -      |           |   |   | -            |   |   |                     | -      |   |                           |   | - |   |   |   | - |   |   |   | (16,902 | ) |   |   | (16,902 | ) |
| Balance, December 31, 2001                                         |   |               | 15,093,750 |   |               |   | 80     |           |   |   | -            |   |   |                     | -      |   |                           |   | 20,170 |   |   |   | - |   |   |   | (16,937 | ) |   |   | 3,313 |   |
| Net loss for year                                                  |   |               | -          |   |               |   | -      |           |   |   | -            |   |   |                     | -      |   |                           |   | - |   |   |   | - |   |   |   | (14,878 | ) |   |   | (14,878 | ) |
| Balance, December 31, 2002                                         |   |               | 15,093,750 |   |               |   | 80     |           |   |   | -            |   |   |                     | -      |   |                           |   | 20,170 |   |   |   | - |   |   |   | (31,815 | ) |   |   | (11,565 | ) |
| Issuance of common stock for services:                             |   |               |       |   |               |   |   |           |   |   |         |   |   |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| July 2003                                                          |   |               | 2,125,000  |   |               |   | 11     |           |   |   | -            |   |   |                     | -      |   |                           |   | 424,989 |   |   |   | - |   |   |   | - |   |   |   | 425,000 |   |
| August 2003                                                        |   |               | 300,000    |   |               |   | 2      |           |   |   | -            |   |   |                     | -      |   |                           |   | 14,998 |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |
| September 2003                                                     |   |               | 1,000,000  |   |               |   | 5      |           |   |   | -            |   |   |                     | -      |   |                           |   | 49,995 |   |   |   | - |   |   |   | - |   |   |   | 50,000 |   |
| October 2003                                                       |   |               | 1,550,000  |   |               |   | 8      |           |   |   | -            |   |   |                     | -      |   |                           |   | 619,992 |   |   |   | - |   |   |   | - |   |   |   | 620,000 |   |
| Issuance of common stock for licensing rights                      |   |               | 14,000,000 |   |               |   | 74     |           |   |   | -            |   |   |                     | -      |   |                           |   | 2,099,926 |   |   |   | - |   |   |   | - |   |   |   | 2,100,000 |   |
| Common stock issuable for licensing rights                         |   |               | -          |   |               |   | -      |           |   |   | 2,000,000    |   |   |                     | 11     |   |                           |   | 299,989 |   |   |   | - |   |   |   | - |   |   |   | 300,000 |   |
| Shares cancelled on September 30, 2003                             |   |               | (9,325,000 | )      |               |   | (49    | )              |   |   | -            |   |   |                     | -      |   |                           |   | 49 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net loss for year                                                  |   |               | -          |   |               |   | -      |           |   |   | -            |   |   |                     | -      |   |                           |   | - |   |   |   | - |   |   |   | (3,662,745 | ) |   |   | (3,662,745 | ) |
| Balance, December 31, 2003                                         |   |               | 24,743,750 |   |               |   | 131    |           |   |   | 2,000,000    |   |   |                     | 11     |   |                           |   | 3,530,108 |   |   |   |   |   |   |   | (3,694,560 | ) |   |   | (164,310 | ) |
| Issuance of common stock for services:                             |   |               |       |   |               |   |   |           |   |   |         |   |   |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 2004                                                         |   |               | 1,652,300  |   |               |   | 9      |           |   |   | -            |   |   |                     | -      |   |                           |   | 991,371 |   |   |   | - |   |   |   | - |   |   |   | 991,380 |   |
| May 2004                                                           |   |               | 500,000    |   |               |   | 3      |           |   |   | -            |   |   |                     | -      |   |                           |   | 514,997 |   |   |   | - |   |   |   | - |   |   |   | 515,000 |   |
| July 2004                                                          |   |               | 159,756    |   |               |   | 1      |           |   |   | -            |   |   |                     | -      |   |                           |   | 119,694 |   |   |   | - |   |   |   | - |   |   |   | 119,695 |   |
| August 2004                                                        |   |               | 100,000    |   |               |   | 1      |           |   |   | -            |   |   |                     | -      |   |                           |   | 70,999 |   |   |   | - |   |   |   | - |   |   |   | 71,000 |   |
| October 2004                                                       |   |               | 732,400    |   |               |   | 4      |           |   |   | -            |   |   |                     | -      |   |                           |   | 479,996 |   |   |   | - |   |   |   | - |   |   |   | 480,000 |   |
| November 2004                                                      |   |               | 650,000    |   |               |   | 4      |           |   |   | -            |   |   |                     | -      |   |                           |   | 454,996 |   |   |   | - |   |   |   | - |   |   |   | 455,000 |   |
| December 2004                                                      |   |               | 255,000    |   |               |   | 1      |           |   |   | -            |   |   |                     | -      |   |                           |   | 164,425 |   |   |   | - |   |   |   | - |   |   |   | 164,426 |   |
| Common stock issuable for AFGP license                             |   |               | -          |   |               |   | -      |           |   |   | 1,000,000    |   |   |                     | 5      |   |                           |   | 709,995 |   |   |   | - |   |   |   | - |   |   |   | 710,000 |   |
| Common stock issuable for Recaf License                            |   |               | -          |   |               |   | -      |           |   |   | 400,000      |   |   |                     | 2      |   |                           |   | 223,998 |   |   |   | - |   |   |   | - |   |   |   | 224,000 |   |
| Warrants granted (for 3,450,000 shares) for services, October 2004 |   |               | -          |   |               |   | -      |           |   |   | -            |   |   |                     | -      |   |                           |   | 1,716,253 |   |   |   | - |   |   |   | - |   |   |   | 1,716,253 |   |
| Options granted for services, October 2004                         |   |               | -          |   |               |   | -      |           |   |   | -            |   |   |                     | -      |   |                           |   | 212,734 |   |   |   | - |   |   |   | - |   |   |   | 212,734 |   |
| Stock subscriptions receivable                                     |   |               | -          |   |               |   | -      |           |   |   | 1,800,000    |   |   |                     | 10     |   |                           |   | 329,990 |   |   |   | (330,000 | ) |   |   |   |   |   |   | - |   |
| Warrants exercised:                                                |   |               |       |   |               |   |   |           |   |   |         |   |   |                     |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| August 2004                                                        |   |               | -          |   |               |   | -      |           |   |   | 50,000       |   |   |                     | -      |   |                           |   | 15,000 |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |
| October 2004                                                       |   |               | -          |   |               |   | -      |           |   |   | 600,000      |   |   |                     | 3      |   |                           |   | 134,997 |   |   |   | - |   |   |   | - |   |   |   | 135,000 |   |
| December 2004                                                      |   |               | -          |   |               |   | -      |           |   |   | 1,000,000    |   |   |                     | 5      |   |                           |   | 224,995 |   |   |   | - |   |   |   | - |   |   |   | 225,000 |   |
| Options exercised, December 2004                                   |   |               | -          |   |               |   | -      |           |   |   | 100,000      |   |   |                     | 1      |   |                           |   | 29,999 |   |   |   | - |   |   |   | - |   |   |   | 30,000 |   |
| Net loss for the year                                              |   |               | -          |   |               |   | -      |           |   |   | -            |   |   |                     | -      |   |                           |   | - |   |   |   | - |   |   |   | (6,368,030 | ) |   |   | (6,368,030 | ) |
| Balance, December 31, 2004                                         |   |               | 28,793,206 |   |               | $      | 154    |           |   |   | 6,950,000    |   |   | $                        | 37     |   |                           | $      | 9,924,547 |   |   | $ | (330,000 | ) |   | $ | (10,062,590 | ) |   | $ | (467,852 | ) |

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Table of Contents

|                                                      |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |
|-----------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|--------|-----------------|--------|--------|------------|--------|--------|---------------------------|--------|--------|--------------------------------|--------|
|                                                      |   | Common Stock |       |   | Common Stock |   |   |            |   |   |       |   |   | Deficit Accumulated       |   |   |                           |   |
|                                                      |   | Shares       |       |   | Amount       |   |   | Issuable Shares |   |   | Amount     |   |   | Additional Paid-inCapital |   |   | Stock Subscriptions Receivable |   |   | During the Development Stage |   |   | Total |   |
|                                                      |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |
| Issuance of stock subscriptions receivable                |   |         | -          |   |         | $      | -      |            |   |   | -          |   |   | $                         | -      |   |                           | $      | - |   |   | $ | 240,000 |   |   | $ | - |   |   | $ | 240,000 |   |
| Issuance of common stock for licensing rights             |   |         | 2,000,000  |   |         |   | 11     |            |   |   | (2,000,000 | )      |   |                      | (11    | )      |                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Issuance of stock for warrants exercised                  |   |         | 2,050,000  |   |         |   | 10     |            |   |   | (2,050,000 | )      |   |                      | (10    | )      |                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Options exercised:                                        |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February 2005                                             |   |         | -          |   |         |   | -      |            |   |   | 35,000     |   |   |                      | 1      |   |                           |   | 10,499 |   |   |   | - |   |   |   | - |   |   |   | 10,500 |   |
| May 2005                                                  |   |         | 200,000    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 59,999 |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |
| Note payable conversion, February 2005                    |   |         | -          |   |         |   | -      |            |   |   | 285,832    |   |   |                      | 1      |   |                           |   | 85,749 |   |   |   | - |   |   |   | - |   |   |   | 85,750 |   |
| Issuance of common stock for Note payable conversion:     |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| April 2005                                                |   |         | 285,832    |   |         |   | 1      |            |   |   | (285,832   | )      |   |                      | (1     | )      |                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| May 2005                                                  |   |         | 353,090    |   |         |   | 2      |            |   |   | -          |   |   |                      | -      |   |                           |   | 105,925 |   |   |   | - |   |   |   | - |   |   |   | 105,927 |   |
| Issuance of common stock for AFGP license                 |   |         | 1,000,000  |   |         |   | 5      |            |   |   | (1,000,000 | )      |   |                      | (5     | )      |                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Issuance of common stock for stock subscriptions received |   |         | 1,400,000  |   |         |   | 6      |            |   |   | (1,400,000 | )      |   |                      | (6     | )      |                           |   | - |   |   |   | 90,000 |   |   |   |   |   |   |   | 90,000 |   |
| Issuance of stock for options exercised                   |   |         | 135,000    |   |         |   | 2      |            |   |   | (135,000   | )      |   |                      | (2     | )      |                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Issuance of common stock for services:                    |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| April 2005                                                |   |         | 30,000     |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 14,999 |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |
| May 2005                                                  |   |         | 3,075,000  |   |         |   | 15     |            |   |   | -          |   |   |                      | -      |   |                           |   | 3,320,985 |   |   |   | - |   |   |   | - |   |   |   | 3,321,000 |   |
| June 2005                                                 |   |         | 50,000     |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 50,499 |   |   |   | - |   |   |   | - |   |   |   | 50,500 |   |
| August 2005                                               |   |         | (250,000   | )      |         |   | (1     | )               |   |   | -          |   |   |                      | -      |   |                           |   | (257,499 | ) |   |   | - |   |   |   | - |   |   |   | (257,500 | ) |
| August 2005                                               |   |         | 111,111    |   |         |   | 1      |            |   |   | (92,593    | )      |   |                      | (1     | )      |                           |   | 15,000 |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |
| October 2005                                              |   |         | 36,233     |   |         |   | 1      |            |   |   | (36,233    | )      |   |                      | (1     | )      |                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| November 2005                                             |   |         | 311,725    |   |         |   | 2      |            |   |   | (245,000   | )      |   |                      | (1     | )      |                           |   | 36,249 |   |   |   | - |   |   |   | - |   |   |   | 36,250 |   |
| December 2005                                             |   |         | 1,220,000  |   |         |   | 8      |            |   |   | -          |   |   |                      | -      |   |                           |   | 756,392 |   |   |   | - |   |   |   | - |   |   |   | 756,400 |   |
| Common stock issuable for services rendered:              |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June 2005                                                 |   |         | -          |   |         |   | -      |            |   |   | 200,000    |   |   |                      | 1      |   |                           |   | 149,999 |   |   |   | - |   |   |   | - |   |   |   | 150,000 |   |
| August 2005                                               |   |         | -          |   |         |   | -      |            |   |   | 36,233     |   |   |                      | 1      |   |                           |   | 21,739 |   |   |   | - |   |   |   | - |   |   |   | 21,740 |   |
| September 2005                                            |   |         | -          |   |         |   | -      |            |   |   | 125,000    |   |   |                      | 1      |   |                           |   | 74,999 |   |   |   | - |   |   |   | - |   |   |   | 75,000 |   |
| September 2005 (Proteocell)                               |   |         | -          |   |         |   | -      |            |   |   | 100,000    |   |   |                      | 1      |   |                           |   | 57,999 |   |   |   | - |   |   |   | - |   |   |   | 58,000 |   |
| December 2005                                             |   |         | -          |   |         |   | -      |            |   |   | 120,968    |   |   |                      | 1      |   |                           |   | 74,999 |   |   |   | - |   |   |   | - |   |   |   | 75,000 |   |
| Net loss for the year                                     |   |         | -          |   |         |   | -      |            |   |   | -          |   |   |                      | -      |   |                           |   | - |   |   |   | - |   |   |   | (4,826,540 | ) |   |   | (4,826,540 | ) |
|                                                      |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2005                                |   |         | 40,801,197 |   |         | $      | 220    |            |   |   | 608,375    |   |   | $                         | 6      |   |                           | $      | 14,503,079 |   |   | $ | - |   |   | $ | (14,889,130 | ) |   | $ | (385,825 | ) |

----

Table of Contents

|                                                 |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |
|------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|--------|-----------------|--------|--------|------------|--------|--------|---------------------------|--------|--------|--------------------------------|--------|
|                                                 |   | Common Stock |       |   | Common Stock |   |   |            |   |   |       |   |   | Deficit Accumulated       |   |   |                           |   |
|                                                 |   | Shares       |       |   | Amount       |   |   | Issuable Shares |   |   | Amount     |   |   | Additional Paid-inCapital |   |   | Stock Subscriptions Receivable |   |   | During the Development Stage |   |   | Total |   |
|                                                 |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |
| February 2006 private placement (issued June 2006)   |   |         | 900,000    |   |         | $      | 5      |            |   |   | -          |   |   | $                         | -      |   |                           | $      | 352,142 |   |   | $ | - |   |   | $ | - |   |   | $ | 352,147 |   |
| Warrants granted from private placement (450,000)    |   |         | -          |   |         |   | -      |            |   |   | -          |   |   |                      | -      |   |                           |   | 97,853 |   |   |   | - |   |   |   | - |   |   |   | 97,853 |   |
| Issuance of common stock for Note payable conversion |   |         | 529,279    |   |         |   | 3      |            |   |   | -          |   |   |                      | -      |   |                           |   | 158,780 |   |   |   | - |   |   |   | - |   |   |   | 158,783 |   |
| Issuance of common stock for services:               |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February/March 2006 services                         |   |         | -          |   |         |   | -      |            |   |   | 20,000     |   |   |                      | 1      |   |                           |   | 10,499 |   |   |   | - |   |   |   | - |   |   |   | 10,500 |   |
| March 2006                                           |   |         | 166,359    |   |         |   | 1      |            |   |   | (108,375   | )      |   |                      | (1     | )      |                           |   | 36,750 |   |   |   | - |   |   |   | - |   |   |   | 36,750 |   |
| April 2006                                           |   |         | (1,200,000 | )      |         |   | (6     | )               |   |   | -          |   |   |                      | -      |   |                           |   | 6 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| May 2006                                             |   |         | 1,266,278  |   |         |   | 7      |            |   |   | (70,000    | )      |   |                      | (1     | )      |                           |   | 792,750 |   |   |   | - |   |   |   | - |   |   |   | 792,756 |   |
| June 2006                                            |   |         | 27,056     |   |         |   | -      |            |   |   | 1,200,000  |   |   |                      | 6      |   |                           |   | 718,244 |   |   |   | - |   |   |   | - |   |   |   | 718,250 |   |
| July 2006                                            |   |         | 1,200,000  |   |         |   | 6      |            |   |   | (1,200,000 | )      |   |                      | (6     | )      |                           |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| August 2006                                          |   |         | 100,000    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 64,999 |   |   |   | - |   |   |   | - |   |   |   | 65,000 |   |
| September 2006                                       |   |         | 369,984    |   |         |   | 2      |            |   |   | (50,000    | )      |   |                      | -      |   |                           |   | 209,998 |   |   |   | - |   |   |   | - |   |   |   | 210,000 |   |
| November 2006                                        |   |         | 100,000    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 48,999 |   |   |   | - |   |   |   | - |   |   |   | 49,000 |   |
| December 2006                                        |   |         | 7,000      |   |         |   | -      |            |   |   | -          |   |   |                      | -      |   |                           |   | 3,010 |   |   |   | - |   |   |   | - |   |   |   | 3,010 |   |
| Warrants issued (for 700,000 shares) for services    |   |         | -          |   |         |   | -      |            |   |   | -          |   |   |                      | -      |   |                           |   | 58,658 |   |   |   | - |   |   |   | - |   |   |   | 58,658 |   |
| Net loss for the year                                |   |         | -          |   |         |   | -      |            |   |   | -          |   |   |                      | -      |   |                           |   | - |   |   |   | - |   |   |   | (1,967,633 | ) |   |   | (1,967,633 | ) |
|                                                 |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                           |   |         | 44,267,153 |   |         |   | 240    |            |   |   | 400,000    |   |   |                      | 5      |   |                           |   | 17,055,767 |   |   |   | - |   |   |   | (16,856,763 | ) |   |   | 199,249 |   |
| Issuance of common stock for services:               |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January 2007                                         |   |         | 218,834    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 119,999 |   |   |   | - |   |   |   | - |   |   |   | 120,000 |   |
| March 2007                                           |   |         | 104,652    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 44,999 |   |   |   | - |   |   |   | - |   |   |   | 45,000 |   |
| April 2007                                           |   |         | 187,500    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 74,999 |   |   |   | - |   |   |   | - |   |   |   | 75,000 |   |
| June 2007                                            |   |         | 112,500    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 44,999 |   |   |   | - |   |   |   | - |   |   |   | 45,000 |   |
| July 2007                                            |   |         | 291,812    |   |         |   | 2      |            |   |   | -          |   |   |                      | -      |   |                           |   | 112,998 |   |   |   | - |   |   |   | - |   |   |   | 113,000 |   |
| August 2007                                          |   |         | 860,000    |   |         |   | 5      |            |   |   | -          |   |   |                      | -      |   |                           |   | 257,995 |   |   |   | - |   |   |   | - |   |   |   | 258,000 |   |
| September 2007                                       |   |         | 1,516,275  |   |         |   | 8      |            |   |   | -          |   |   |                      | -      |   |                           |   | 457,492 |   |   |   | - |   |   |   | - |   |   |   | 457,500 |   |
| October 2007                                         |   |         | 250,000    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 37,499 |   |   |   | - |   |   |   | - |   |   |   | 37,500 |   |
| December 2007                                        |   |         | 535,716    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 74,999 |   |   |   | - |   |   |   | - |   |   |   | 75,000 |   |
| Warrants issued for services                         |   |         | -          |   |         |   | -      |            |   |   | -          |   |   |                      | -      |   |                           |   | 825,476 |   |   |   | - |   |   |   | - |   |   |   | 825,476 |   |
| Cancellation of issuable stock for Recaf License     |   |         | -          |   |         |   | -      |            |   |   | (400,000   | )      |   |                      | (5     | )      |                           |   | - |   |   |   | - |   |   |   | - |   |   |   | (5 | ) |
| Warrant exercised – December 2007              |   |         | 100,000    |   |         |   | 1      |            |   |   | -          |   |   |                      | -      |   |                           |   | 43,999 |   |   |   | - |   |   |   | - |   |   |   | 44,000 |   |
| Issuable common stock from Private Placement         |   |         | -          |   |         |   | -      |            |   |   | 1,190,000  |   |   |                      | 6      |   |                           |   | 172,494 |   |   |   | - |   |   |   | - |   |   |   | 172,500 |   |
| Net loss for the year                                |   |         | -          |   |         |   | -      |            |   |   | -          |   |   |                      | -      |   |                           |   | - |   |   |   | - |   |   |   | (2,728,269 | ) |   |   | (2,728,269 | ) |
|                                                 |   |         |       |   |         |   |   |            |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                           |   |         | 48,444,442 |   |         | $      | 262    |            |   |   | 1,190,000  |   |   | $                         | 6      |   |                           | $      | 19,323,715 |   |   | $ | - |   |   | $ | (19,585,032 | ) |   | $ | (261,049 | ) |

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|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |
|------------------------------------------------------------------------|--------|--------------|------------|--------|--------------|--------|--------|----------------|--------|--------|------------|--------|--------|---------------------------|--------|--------|--------------------------------|--------|
|                                                                   |   | Common Stock |       |   | Common Stock |   |   |           |   |   |       |   |   | Deficit Accumulated       |   |   |                           |   |
|                                                                   |   | Shares       |       |   | Amount       |   |   | IssuableShares |   |   | Amount     |   |   | Additional Paid-inCapital |   |   | Stock Subscriptions Receivable |   |   | During the Development Stage |   |   | Total |   |
|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |
| Issuance of common stock for services:                                 |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |
| March 2008                                                             |   |         | 369,346    |   |         | $      | 2      |           |   |   | -          |   |   | $                         | -      |   |                           | $      | 133,867 |   |   | $ | - |   |   | $ | - |   |   | $ | 133,869 |   |
| May 2008                                                               |   |         | 395,170    |   |         |   | 2      |           |   |   | -          |   |   |                      | -      |   |                           |   | 137,723 |   |   |   | - |   |   |   | - |   |   |   | 137,725 |   |
| July 2008                                                              |   |         | 2,405,170  |   |         |   | 13     |           |   |   | -          |   |   |                      | -      |   |                           |   | 577,226 |   |   |   | - |   |   |   | - |   |   |   | 577,239 |   |
| September 2008                                                         |   |         | 186,430    |   |         |   | 1      |           |   |   | -          |   |   |                      | -      |   |                           |   | 42,878 |   |   |   | - |   |   |   | - |   |   |   | 42,879 |   |
| October 2008                                                           |   |         | 250,000    |   |         |   | 1      |           |   |   | -          |   |   |                      | -      |   |                           |   | 49,999 |   |   |   | - |   |   |   | - |   |   |   | 50,000 |   |
| November 2008                                                          |   |         | 1,018,375  |   |         |   | 5      |           |   |   | -          |   |   |                      | -      |   |                           |   | 153,495 |   |   |   | - |   |   |   | - |   |   |   | 153,500 |   |
|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for proceeds of $50,000 received in 2007      |   |         | 173,000    |   |         |   | 1      |           |   |   | -          |   |   |                      | -      |   |                           |   | (1 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based compensation expense related to non-employee stock options |   |         | -          |   |         |   | -      |           |   |   | -          |   |   |                      | -      |   |                           |   | 82,214 |   |   |   | - |   |   |   | - |   |   |   | 82,214 |   |
|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants exercised:                                                    |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September 2008                                                         |   |         | 170,000    |   |         |   | 1      |           |   |   | -          |   |   |                      | -      |   |                           |   | 25,499 |   |   |   | - |   |   |   | - |   |   |   | 25,500 |   |
| November 2008                                                          |   |         | 100,000    |   |         |   | 1      |           |   |   | -          |   |   |                      | -      |   |                           |   | 12,313 |   |   |   | - |   |   |   | - |   |   |   | 12,314 |   |
| December 2008                                                          |   |         | 170,000    |   |         |   | 1      |           |   |   | -          |   |   |                      | -      |   |                           |   | 25,499 |   |   |   | - |   |   |   | - |   |   |   | 25,500 |   |
|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of common stock from Private Placement                        |   |         | 3,400,000  |   |         |   | 18     |           |   |   | (1,190,000 | )      |   |                      | (6     | )      |                           |   | 337,488 |   |   |   | - |   |   |   | - |   |   |   | 337,500 |   |
|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuable common stock to Directors                                     |   |         | -          |   |         |   | -      |           |   |   | 600,000    |   |   |                      | 3      |   |                           |   | 95,997 |   |   |   | - |   |   |   | - |   |   |   | 96,000 |   |
|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss for the year                                                  |   |         | -          |   |         |   | -      |           |   |   | -          |   |   |                      | -      |   |                           |   | - |   |   |   | - |   |   |   | (1,550,818 | ) |   |   | (1,550,818 | ) |
|                                                                   |   |         |       |   |         |   |   |           |   |   |       |   |   |                      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                             |   |         | 57,081,933 |   |         | $      | 308    |           |   |   | 600,000    |   |   | $                         | 3      |   |                           | $      | 20,997,912 |   |   | $ | - |   |   | $ | (21,135,850 | ) |   | $ | (137,627 | ) |

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|                                                                       |   | 2008   |       |   | 2007   |   |       | Cumulative During the Development Stage |   |
|----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|-----------------------------------------|--------|
| Cash Flows from Operating Activities                                       |   |   |       |   |   |   |       |                                    |   |
| Net loss for year                                                          |   | $      | (1,550,818 | )      |   | $      | (2,728,269 | )                                       |   | $ | (21,135,850 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities |   |   |       |   |   |   |       |                                    |   |   |   |   |
| Depreciation expense                                                       |   |   | 426        |   |   |   | 1,018      |                                    |   |   | 3,388 |   |
| Issuance of common stock for services and expenses                         |   |   | 1,128,891  |   |   |   | 1,225,979  |                                    |   |   | 16,037,503 |   |
| Warrants issued for consulting services                                    |   |   | 2,446      |   |   |   | 825,476    |                                    |   |   | 2,602,833 |   |
| Stock options issued for consulting services                               |   |   | 10,083     |   |   |   | -          |                                    |   |   | 222,817 |   |
| Changes in operating assets and liabilities                                |   |   |       |   |   |   |       |                                    |   |   |   |   |
| Accounts receivable                                                        |   |   | -          |   |   |   | 6,391      |                                    |   |   | - |   |
| Prepaid expenses                                                           |   |   | -          |   |   |   | 330,000    |                                    |   |   | - |   |
| Accounts payable                                                           |   |   | (30,476    | )      |   |   | (305,860   | )                                       |   |   | 78,349 |   |
| Net cash used in operating activities                                      |   |   | (439,448   | )      |   |   | (645,265   | )                                       |   |   | (2,190,960 | ) |
| Cash Flows from Investing Activities                                       |   |   |       |   |   |   |       |                                    |   |   |   |   |
| Purchase of computer equipment                                             |   |   | -          |   |   |   | -          |                                    |   |   | (3,388 | ) |
| Net cash used in investing activities                                      |   |   | -          |   |   |   | -          |                                    |   |   | (3,388 | ) |
| Cash Flows from Financing Activities                                       |   |   |       |   |   |   |       |                                    |   |   |   |   |
| Short term loan                                                            |   |   | 16,500     |   |   |   | -          |                                    |   |   | 16,500 |   |
| Warrants exercised                                                         |   |   | 63,314     |   |   |   | 44,000     |                                    |   |   | 812,314 |   |
| Stock options exercised                                                    |   |   | -          |   |   |   | -          |                                    |   |   | 100,500 |   |
| Issuance of common stock for cash                                          |   |   | 337,500    |   |   |   | 172,500    |                                    |   |   | 980,250 |   |
| Loan proceeds                                                              |   |   | -          |   |   |   | 300,000    |                                    |   |   | 300,000 |   |
| Net cash provided by financing activities                                  |   |   | 417,314    |   |   |   | 516,500    |                                    |   |   | 2,209,564 |   |
| Net change in cash                                                         |   |   | (22,134    | )      |   |   | (128,765   | )                                       |   |   | 15,216 |   |
| Cash, beginning of period                                                  |   |   | 37,350     |   |   |   | 166,115    |                                    |   |   | - |   |
| Cash, end of period                                                        |   | $      | 15,216     |   |   | $      | 37,350     |                                    |   | $ | 15,216 |   |
| Cash paid for interest                                                     |   | $      | 18,000     |   |   | $      | 12,000     |                                    |   | $ | 42,703 |   |
| Cash paid for income taxes                                                 |   | $      | -          |   |   | $      | -          |                                    |   | $ | - |   |
| Supplementary information - Non-cash Transactions:                         |   |   |       |   |   |   |       |                                    |   |   |   |   |
| Note payable converted to common stock                                     |   | $      | -          |   |   | $      | -          |                                    |   | $ | 350,457 |   |
| Common stock issued for prepaid consulting services                        |   |   | 172,321    |   |   |   | -          |                                    |   |   | 172,321 |   |
| Warrants issued for prepaid consulting services                            |   |   | 56,240     |   |   |   | -          |                                    |   |   | 56,240 |   |
| Options issued for prepaid consulting services                             |   |   | 13,445     |   |   |   | -          |                                    |   |   | 13,445 |   |

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| 2007       |   | Numberof Shares |      |   | Valueper Share |              |
|------------|--------|-----------------|-----------|--------|----------------|-------------------|
| January    |   |            | 84,906    |   |           | $0.47   |   |
| January    |   |            | 133,928   |   |           | 0.45              |   |
| March      |   |            | 104,652   |   |           | 0.36              |   |
| April      |   |            | 187,500   |   |           | 0.35              |   |
| June       |   |            | 112,500   |   |           | 0.43              |   |
| July       |   |            | 100,000   |   |           | 0.38              |   |
| July       |   |            | 191,812   |   |           | 0.39              |   |
| August     |   |            | 860,000   |   |           | 0.30              |   |
| September  |   |            | 1,516,275 |   |           | 0.30              |   |
| October    |   |            | 250,000   |   |           | 0.15              |   |
| December   |   |            | 635,716   |   |           | 0.15              |   |
| Total 2007 |   |            | 4,177,289 |   |           |              |   |   |

| 2008       |   | Numberof Shares |      |   | Valueper Share |   |
|------------|--------|-----------------|-----------|--------|----------------|--------|
| March      |   |            | 369,346   |   |           | 0.36   |   |
| May        |   |            | 395,170   |   |           | 0.35   |   |
| July       |   |            | 2,405,170 |   |           | 0.24   |   |
| September  |   |            | 186,430   |   |           | 0.23   |   |
| October    |   |            | 250,000   |   |           | 0.20   |   |
| November   |   |            | 1,018,375 |   |           | 0.15   |   |
| Total 2008 |   |            | 4,624,491 |   |           |   |   |   |

|                                                           |   |                    |    |   |                          |   |   |                    |   |
|----------------------------------------------------------------|--------|-------------------------|---------|--------|-------------------------------|--------|--------|-------------------------|--------|
|                                                           |   | Number of Options       |    |   | WeightedAverage ExercisePrice |   |   | AggregateIntrinsicValue |   |
|                                                           |   |                    |    |   |                          |   |   |                    |   |
| Balance, December 31, 2006 and 2007                            |   |                    | -       |   |                          |   |   |                    |   |   |
| Granted                                                        |   |                    | 250,000 |   |                          | $      | 0.20   |                    |   |   |   |
|                                                           |   |                    |    |   |                          |   |   |                    |   |   |   |
| Balance, December 31, 2008                                     |   |                    | 250,000 |   |                          | $      | 0.20   |                    |   | $ | - |   |
|                                                           |   |                    |    |   |                          |   |   |                    |   |   |   |   |
| Exercisable at December 31, 2008                               |   |                    | 250,000 |   |                          | $      | 0.20   |                    |   | $ | - |   |
|                                                           |   |                    |    |   |                          |   |   |                    |   |   |   |   |
| Weighted average fair value of options granted during the year |   | $0.09 (2007 - nil) |    |   |                          |   |   |

|   |              |    |   |           |   |        |
|--------|-------------------|---------|--------|----------------|--------|-------------|
|   | Number of Options |    |   | Exercise price |   | Expiry Date |
|   |              |    |   |           |   |        |
|   |              | 250,000 |   |           | $      | 0.20        |   | April 30, 2012 |
|   |              |    |   |           |   |        |   |   |

|                     |   |   |   |   |   |   |
|--------------------------|--------|--------|--------|--------|--------|--------|
|                     |   | 2008   |   |   | 2007   |   |
|                     |   |   |   |   |   |   |
| Risk-free interest rate  |   |   | 2.51   | %      |   |   | - |   |
| Expected life of options |   |   | 3      |   |   |   | - |   |
| Annualized volatility    |   |   | 91.61  | %      |   |   | - |   |
| Dividend rate            |   | Nil    |   |   | Nil    |   |

|                             |   |               |       |   |                          |   |
|----------------------------------|--------|--------------------|------------|--------|-------------------------------|--------|
|                             |   | Number of Warrants |       |   | WeightedAverage ExercisePrice |   |
|                             |   |               |       |   |                          |   |
|                             |   |               |       |   |                          |   |
| Balance, December 31, 2006       |   |               | -          |   |                          | $      | - |   |
| Issued                           |   |               | 7,800,000  |   |                          |   | 0.47 |   |
|                             |   |               |       |   |                          |   |   |   |
| Balance, December 31, 2007       |   |               | 7,800,000  |   |                          |   | 0.47 |   |
| Issued                           |   |               | 4,400,000  |   |                          |   | 0.20 |   |
| Exercised                        |   |               | (440,000   | )      |                          |   | 0.15 |   |
|                             |   |               |       |   |                          |   |   |   |
| Balance, December 31, 2008       |   |               | 11,760,000 |   |                          | $      | 0.38 |   |
|                             |   |               |       |   |                          |   |   |   |
| Exercisable at December 31, 2008 |   |               | 11,760,000 |   |                          | $      | 0.38 |   |

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|   | At December 31, 2008, the following warrants were outstanding: |
|--------|----------------------------------------------------------------|

|   |               |      |   |           |   |              |   |
|--------|--------------------|-----------|--------|----------------|--------|-------------------|--------|
|   | Number of Warrants |      |   | Exercise price |   |  Expiry Date |   |
|   |               | 250,000   |   |           | $      | 0.20              |   | December 1, 2009 |   |
|   |               | 250,000   |   |           |   | 0.12              |   | December 4, 2009 |   |
|   |               | 250,000   |   |           |   | 0.24              |   | December 4, 2009 |   |
|   |               | 250,000   |   |           |   | 0.36              |   | December 4, 2009 |   |
|   |               | 250,000   |   |           |   | 0.50              |   | December 4, 2009 |   |
|   |               | 1,000,000 |   |           |   | 0.35              |   | December 1, 2010 |   |
|   |               | 1,430,000 |   |           |   | 0.15              |   | August 24, 2010 |   |
|   |               | 950,000   |   |           |   | 0.50              |   | June 1, 2012 |   |
|   |               | 500,000   |   |           |   | 0.50              |   | July 12, 2012 |   |
|   |               | 5,100,000 |   |           |   | 0.50              |   | August 1, 2012 |   |
|   |               | 1,530,000 |   |           |   | 0.15              |   | February 9, 2013 |   |
|   |               |      |   |           |   |              |   |   |   |

|                     |   |   |   |
|--------------------------|--------|--------|--------|
|                     | 2008   |   | 2007   |
|                     |   |   |   |
| Risk-free interest rate  |   |   | 1.58   |   | 3.11% to 4.96% |
| Expected life of options |   |   | 2      |   | 1 to 2.5 |
| Annualized volatility    |   |   | 111.69 | % | 64.43% to 84.89 % |
| Dividend rate            | Nil    |   | Nil    |

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| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|---------|--------------------------------------------------------------------------------------|

| (a)   | Dismissal of Independent Accountant. |
|-----------------|--------------------------------------|

| (b)   | Engagement of Independent Accountant. |
|-----------------|---------------------------------------|

| ITEM 9A. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

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| ITEM 9B. | OTHER INFORMATION |
|----------|-------------------|

| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CORPORATE GOVERNANCE |
|----------|-------------------------------------------------------------------|

| Name                       | Age | Office                                        | Since |
|----------------------------|-----|-----------------------------------------------|-------|
| Ross L. Senior, LLB        | 59  | Chairman of the Board, President, CEO and CFO | 2007  |
| Mr. C. Fred Whittaker      | 67  | Director                                      | 2005  |
| Dr. Maximilien Arella, PhD | 54  | Director                                      | 2007  |

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| ITEM 11. | EXECUTIVE COMPENSATION |
|----------|------------------------|

|                     | Annual Compensation |   |   | Long-Term Compensation |   |   |   |   |
|--------------------------|---------------------|--------|--------|------------------------|--------|--------|--------|--------|
|                     |                |   |   |                   |   |   |   |   |   |   |   |   |   |   | Common Shares |   |   |   |   |
|                     |                |   |   |                   |   |   |   |   |   |   |   | Restricted |   |   | Underlying |   |   |   |   |
|                     |                |   |   |                   |   |   |   |   |   |   |   | Stock |   |   | Options |   |   | All |   |
|                     |                |   |   |                   |   |   |   |   | Other Annual |   |   | Awards |   |   | Granted |   |   | Other |   |
| Name and Position        | Year                |   | Salary |                   |   | Bonus  |   |   | Compensation |   |   | (# of Shares) |   |   | (# Shares) |   |   | Compensation |   |
|                     |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dr. John Todd            | 2007                |   | $      | 0                      |   |   |   | -0-    |   |   |   | -0- |   |   |   | 100,000 |   |   |   | ------ |   |   |   | -0- |   |
| Former President, Chief  |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Executive Officer        |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and Director             |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mark L. Baum             | 2007                |   | $      | 0                      |   |   |   | -0-    |   |   |   | -0- |   |   |   | 400,000 |   |   |   | ------ |   |   |   | -0- |   |
| Former Interim President |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and Director             |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ross L. Senior, LLB      | 2008                |   | $      | 0                      |   |   |   | -0-    |   |   |   | -0- |   |   |   |   |   |   |   | ------ |   |   |   | -0- |   |
| President, Chief         | 2007                |   |   | 0                      |   |   |   | -0-    |   |   |   | -0- |   |   |   | 60,000 |   |   |   | ------ |   |   |   | -0- |   |
| Executive Officer and    |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Chief Financial Officer  |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mr. C. Fred Whittaker    | 2008                |   | $      | 0                      |   |   |   | -0-    |   |   |   | -0- |   |   |   |   |   |   |   | ------ |   |   |   | -0- |   |
| Director                 | 2007                |   |   | 0                      |   |   |   | -0-    |   |   |   | -0- |   |   |   | 200,000 |   |   |   | ------ |   |   |   | -0- |   |
|                     |                |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dr. Maximilien Arella    | 2008                |   | $      | 0                      |   |   |   | -0-    |   |   |   | -0- |   |   |   |   |   |   |   | ------ |   |   |   | -0- |   |
| Director                 | 2007                |   |   | 0                      |   |   |   | -0-    |   |   |   | -0- |   |   |   | 200,000 |   |   |   | ------ |   |   |   | -0- |   |

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER  MATTERS |
|----------|-----------------------------------------------------------------------------------------------------------|

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| Name and Address          | Shares Beneficially Owned | Percent of Class |
|---------------------------|---------------------------|------------------|
| Ross L. Senior (1)        | 60,000                    | Less than 1%     |
| Mr. C. Fred Whittaker (2) | 320,000                   | Less than 1%     |
| Dr. Maximilien Arella(3)  | 300,000                   | Less than 1%     |
| TOTAL                     | 680,000                   | 1.3%             |

| (1) | The address is 1500-885 Georgia Street, Vancouver, BC V6C 3E8 Canada |
|-----|----------------------------------------------------------------------|

| (2) | The address is 1500-885 Georgia Street, Vancouver, BC V6C 3E8 Canada |
|-----|----------------------------------------------------------------------|

| (3) | The address is 1500-885 Georgia Street, Vancouver, BC V6C 3E8 Canada |
|-----|----------------------------------------------------------------------|

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE |
|----------|--------------------------------------------------------------------------|

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

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| ITEM 15. | EXHIBITS AND REPORTS ON FORM 8-K |
|----------|----------------------------------|

| Exhibit # |   | Description                                                                                                                                                           |
|-----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |   |                                                                                                                                                                  |
| 3.1(i)    |   | Certificate of Incorporation filed as an exhibit to the Company's registration statement on Form 10-SB/A filed on July 24, 2001 and incorporated herein by reference. |
|      |   |                                                                                                                                                                  |
| 3.1(ii)   |   | By-Laws filed as an exhibit to the Company's registration statement on Form 10-SB/A filed on July 24, 2001 and incorporated herein by reference.                      |
|      |   |                                                                                                                                                                  |
| 14.1      |   | ProtoKinetix, Inc. Code of Ethics filed as an exhibit to the Company's Form 10-K filed on April 13, 2006 and incorporated herein by reference.                        |
|      |   |                                                                                                                                                                  |
| 31.1      |   | Rule 13a-12(a)/15d-14(a) Certification                                                                                                                                |
|      |   |                                                                                                                                                                  |
| 32.1      |   | Section 1350 Certification attached.                                                                                                                                  |

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|   | PROTOKINETIX, INC.                                       |   |
|--------|----------------------------------------------------------|--------|
|   |                                                     |   |
|   |    /s/ Ross L. Senior                     |   |
|   | By: Ross L. Senior, LLP                                  |   |
|   | Its: Chief Executive Officer and Chief Financial Officer |   |

|   |    /s/ Ross L. Senior                     |   |
|--------|----------------------------------------------------------|--------|
|   | By: Ross L. Senior, LLP                                  |   |
|   | Its: Chief Executive Officer and Chief Financial Officer |   |
|   |                                                     |   |
|   | /s/ C. Fred Whittaker                                    |   |
|   | By: C. Fred Whittaker                                    |   |
|   | Its: Director                                            |   |
|   |                                                     |   |
|   | /s/ Maximilien Arella                                    |   |
|   | By: Dr. Maximilien Arella, PhD                           |   |
|   | Its: Director                                            |   |

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