UNITED STATES SECURITIES
				AND EXCHANGE COMMISSION
				Washington, D.C. 20549

				        FORM 10-KSB

	[x] ANNUAL REPORT PURSUANT TO SECTION 13 OF 15(d)OF THE SECURITIES
	EXCHANGE ACT OF 1934

	For the fiscal year ended March 31, 2006

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

			Commission File Number	000-28335

				Platina Energy Group Inc.
		____________________________________________________________
	   		(Name of small business issuer in its charter)

					Delaware
		____________________________________________________________
	     (State or other jurisdiction of incorporation or organization)

				   84-1080043
		____________________________________________________________
			(I.R.S. Employer Identification No.)

	  			200 West 17th Street, Suite 240
          			Cheyenne, Wyoming 82001
		____________________________________________________________
			(Address of principal executive offices)

				(307) 637-3900
		____________________________________________________________
			(Issuer's telephone number, including area code)

	Securities registered pursuant to Section 12(b) of the Act:

	Title of each class: None     Name of each exchange on which registered:  None

	Securities registered pursuant to Section 12(g) of the Act:  Common Stock

	Check whether the Issuer (1) filed all reports required to be filed by
	Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
	such shorter period that the Company was required to file such reports),
	and (2) has been subject to such filing requirements for the past 90 days.

		(1) Yes [X}	No [ ]		(2) Yes [X]	No [ ]

	Check if disclosure of delinquent filers in response to Item 405 of
	Regulation S-B is not contained in this form, and no disclosure will be
	contained, to the best of Company's knowledge, in definitive proxy or
	information statements incorporated by reference in Part III of this Form
	10-KSB or any amendment to this Form 10-KSB. [ ]

	State Issuer's revenues for its most recent fiscal year: $4,900

	State the aggregate market value of the voting stock held by non-affiliates
	computed by reference to the price at which the stock was sold, or the
	average bid and asked prices of such stock, as of a specified date within the
	past 60 days: $634,906 as of July 11, 2006 at closing price of $0.055 per
	share.

	(ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

	Check whether the Issuer has filed all documents and reports required to be
	filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
	of securities under a plan confirmed by a court. Yes [X]	No [ ]

	(APPLICABLE ONLY TO CORPORATE ISSUERS)

	State the number of shares outstanding of each of the Issuer's classes of
	common equity, as of the latest practicable date:

	As of July 11, 2006 there were 17,629,731 shares of $.001 par value common
	stock outstanding.

	DOCUMENTS INCORPORATED BY REFERENCE

	None

	Transitional Small Business Format (Check one):  Yes [ ] No [x]

                                      (1)
<page>


			PLATINA ENERGY GROUP INC.
			    FORM 10-KSB

TABLE OF CONTENTS

									Page
PART I
Item 1.	Description of Business---------------------------------------- 3
Item 2.	Description of Property---------------------------------------- 8
Item 3.	Legal Proceedings---------------------------------------------- 9
Item 4.	Submission of Matters to a vote of Security Holders------------ 9

PART II
Item 5.	Market for Common Equity and Related Stockholder Matters------- 9
Item 6.	Management's Discussion and Analysis or Plan of Operation------ 10
Item 7.	Financial Statements------------------------------------------- 14
Report of Independent Registered Public Accounting Firm---------------- 15
Consolidated Balance Sheets-------------------------------------------- 16
Consolidated Statements of Operations---------------------------------- 17
Consolidated Statements of Cash Flows---------------------------------- 18
Notes to Consolidated Financial Statements----------------------------- 19
Item 8.	Changes in and Disagreements With Accountants on Accounting
	and Financial Disclosure--------------------------------------- 29

PART III
Item 9.	Directors, Executive Officers, Promoters and Control Persons;
	Compliance With Section 16(a) of the Exchange Act-------------- 29
Item 10.Executive Compensation----------------------------------------- 30
Item 11.Security Ownership of Certain Beneficial Owners and Management- 31
Item 12.Certain Relationships and Related Transactions----------------- 33
Item 13.Exhibits and Reports------------------------------------------- 34
Exhibits--------------------------------------------------------------- 35
Signatures------------------------------------------------------------- 36



					(2)

<page>


PART I

ITEM 1. DESCRIPTION OF BUSINESS

This annual report on Form 10-K contains forward-looking statements that
involve risks and uncertainties, as well as assumptions that, if they do
not fully materialize or prove incorrect, could cause our business and results
of operations to differ materially from those expressed or implied by such
forward-looking statements. Such forward-looking statements include, without
limitation, any statements concerning the conditions in the oil and gas
industries and specifically the enhanced oil recovery segment of the oil and
gas industry, our operations, economic performance and financial condition,
including in particular statements relating to our business, growth strategy,
product development efforts, statements related to benefits to be derived
from the TPU and statements related to ongoing and future operations and
statements of belief and statements of assumptions underlying any of the
foregoing. The words "will," "may," "should," "expects," "plans,"
"anticipates," "believes," "estimates," "predicts," "intends," "potential,"
"continue," or the negative of such terms, or other comparable terminology
generally identify forward-looking statements.

These forward-looking statements are based largely on our current expectations
and are subject to a number of risks and uncertainties, including, without
limitation, those identified elsewhere in this Form 10-KSB and other risks and
uncertainties indicated from time to time in our filings with the SEC. Actual
results could differ materially from these forward-looking statements. All
forward-looking statements included in this Form 10-KSB are based on
information available to us as of the date hereof, and we assume no obligation
to update these forward-looking statements.

GENERAL

Platina Energy Group Inc., a Delaware corporation (the "Company") previously
merged with various entities all of which operations have ceased. Accordingly,
the Company had been a non-operating public shell, however, on March 11, 2005,
the Company entered into an Asset Purchase Agreement with Permian Energy
Services, L.P. ("Permian L.P.") whereby the Company, through its wholly-owned
subsidiary, Permian Energy International, has acquired certain marketing,
distribution and license rights to various patented thermal pulse units ("TPU")
and the "Penney Pump" to the oil and gas industry. The acquisition of the
marketing, distribution and license rights closed on April 6, 2005 and since
that date the Company's sole operations have involved the marketing of the TPU
and Penney Pump. The Company intends to concentrate its efforts in the
enhanced oil recovery ("EOR") segment of the oil and gas industry and
accordingly, on June 15, 2005 changed its name to Platina Energy Group Inc.
to more accurately reflect its current business.

Pursuant to the Asset Purchase Agreement, the Company issued 2,250,000 shares
of its common stock to Permian L.P. together with a two (2) year promissory
note in the principal amount of $250,000. In addition, the Company issued
750,000 shares to a consultant for services rendered in connection with the
purchase.

Certain disputes arose between the Company and Permian L.P. and on August 15,
2005, the Company and its subsidiary, Permian Energy International, Inc.,
(the "Plaintiffs") filed an action in the District Court for the City and
County of Denver, State of Colorado as plaintiffs versus Permian Energy
Services, L.P. and Robert Clark (the "Defendants') as the defendants. The
parties to the lawsuit have executed a mutual release and settlement agreement
effective April 2, 2006 to settle all matters set forth in the lawsuit. Under
the terms of the settlement agreement, the Company has dismissed its lawsuit
against the Defendants and has paid it $53,823 in exchange for the return of
2,025,000 shares it received under the Asset Purchase Agreement.

The Company has retained all rights originally acquired in the Asset Purchase
Agreement as part of the mutual release and settlement and fully intends to
continue in the oil and gas industry with said assets. Accordingly, the goals
of the Company therefore remain unchanged. The Company is continuing to seek
merger and acquisition candidates operating in energy related industries.
The Company is also actively pursuing the acquisition of operating oil and
gas properties or leases as another means of potentially increasing the
revenues and assets of the Company. The Company is also considering sales
of TPU units to oil and gas property owners/operators for their own use.


HISTORY

The Company was organized under and pursuant to the laws of the State of
Delaware on January 19, 1988 as Windom, Inc. On August 22, 1997, Windom,
Inc., as a non-operating public shell, merged with New York Bagel Exchange,
Inc. The Company underwent a reorganization with Windom, Inc., which resulted
in the retirement of all the common and preferred shares of both companies
and the reissuance of certain shares of the Company which continued to do
business as New York Bagel Exchange, Inc.

On January 26, 1999, New York Bagel Exchange, Inc. changed its name to
Web4boats.com, Inc. which, after another two changes of name continued to
be the name of the Company.

					(3)

<page>

During fiscal 1999, the Company began making plans to develop a commercial
internet site and the Company contemplated that recreational boaters,
manufacturers, dealers, marinas and individual buyers and sellers would
advertise sales and services related to the boating industry. The effort to
develop the internet site continued for approximately two years. The Company
was not successful in raising the necessary funds to finance the continuing
operations of the internet site and due to the fact that revenues from the
operation of the site had not been significant, management of the Company
determined to change the business operations of the Company.

On November 6, 2001 the Company amended its Articles of Incorporation and
appropriated the name Federal Security Protection Services, Inc. The name
change was approved by the shareholders on March 12, 2002. The Company sought
suitable candidates in the field of security, for acquisition by the Company.
On April 25, 2002, the Company entered into an agreement with Iris pursuant
to which Iris agreed to render certain services to the Company which services
were designed to accelerate the Company's business realignment. The Company
acquired all of the issued and outstanding stock of Iris as of September 6,
2002.

On June 9, 2003 the acquisition of Iris was reversed. The former management
of Iris desired to return to the status of a privately-held company due to the
expense of being a public company and the newly adopted regulations governing
all public companies.

On March 11, 2005, the Company entered into an Asset Purchase Agreement with
Permian Energy Services, L.P. ("Permian L.P."), a Texas limited partnership,
whereby the Company, through its wholly-owned subsidiary Permian Energy
International ("Permian International"), a Nevada corporation formed on March
30, 2005, acquired on April 6, 2005 certain marketing, distribution and
license rights to various patented thermal pulse units ("TPU") to the oil and
gas industry for enhanced oil recovery. The assets that were purchased consist
primarily of the assignment to Permian International of (i) an exclusive
marketing agreement between Permian L.P. and Bi-Comp, L.L.C., (ii) a joint
venture agreement between Permian L.P. and Daystar Oil and Gas Corporation,
(iii) a letter agreement between Permian L.P. and Wyoming Energy Corporation,
and (iv) a verbal licensing use and distribution agreement between Permian
L.P. and Penney Resources, LLC regarding the "Penney Pump." In addition,
Permian L.P. transferred to the Company intellectual property regarding TPU
applications for oil recovery from wells and for acid gas re-injection.

The Company's principal place of business is 200 West 17th Street, Suite 240,
Cheyenne, Wyoming 82001.

BUSINESS

Platina Energy Group Inc. through its wholly owned subsidiary Permian Energy
International (collectively, the "Company") has acquired the marketing and
distribution rights, on an exclusive and non-exclusive basis, to a unique
"enhanced recovery solution" that stimulates and recovers oil and gas from
stripper (low volume) wells at a fraction of the cost of other methodologies
available in the industry today.

The Company's enhanced recovery solution through its marketing and
distribution agreements utilizes "Hydraulic Gas Compressor" (HGC) technology
in a "Thermal Pulse Unit" (TPU) application. The TPU incorporates a patented
hydraulically driven compressor technology, which creates 350F+ heat and
1,500+psi pressures for utilization in well cleanup, stimulation and
production. The TPU has various configurations and attributes that replace
conventional methodologies for day-to-day operations of oil and gas
production. The TPU can be sized to fit small to large applications and can
be powered by diesel, natural gas, propane or electricity. Management of the
Company believes that the TPU technology will compete successfully with all
current stimulation and recovery methodology on the basis of both cost
effectiveness and long term results.


					(4)

<page>

According to the Department of Energy, there have been 2.25 million wells
drilled in the U.S. since 1949. Many oil reservoirs have only had 35% of their
reserves produced, leaving huge potential upsides. The Office of Fossil
Energy, U.S. Department of Energy, estimates there are nearly 500,000 oil
wells and 230,000 gas wells that are marginal or classified as "stripper"
wells. These stripper wells produce less than 15 barrels of oil a day or
less than 60 thousand cubic feet of gas a day. Such wells are potentially
considered uneconomic or marginal with the strong likelihood of being
abandoned due to poor production economics. In seeking to revitalize marginal
and stripper wells both the Department of Energy and American Petroleum
Institute have emphasized the need for new technologies to access more of the
reserves available.

The Company has identified a large number of oil reservoirs, both heavy and
light oil, in the United States that are in close proximity to neglected gas
reserves. The oil reserves by themselves lack the two basic variables to
efficient recovery--heat and pressure. The gas reserves by themselves lack
the basic infrastructure either in pipeline deliverability or processing to
make a fungible commodity. In most cases, the gas is contaminated with
Nitrogen (N2) and/or Carbon Dioxide (CO2). Historically, the oil industry
has been unable to "merge" the oil and gas into a vibrant recovery program due
to the economy of scale.

The Company through its marketing rights to the TPU technology provides the
economic alternative that was previously unavailable. The TPU is able to
"merge" these two neglected assets together in a cost effective manner. The
TPU is able to take the indigenous gas and re-establish good bottom-hole
temperatures and pressures at a lifting cost of between $2.50 and $5.00 per
barrel compared with the lifting costs of CO2 floods and Steam floods that
historically cost $15.00 to $22.00 per barrel depending on individual field
conditions.

The TPU provides the Company with the ability to generate new business by
re-entering existing wells rather than being dependent on the production
companies drilling new wells. With the heat and pressure technology of the
TPU, we believe we can improve recovery rates rather than have a production
company abandoning a field because of the depletion of its oil or gas
reserves.

The Company's management believes that producing companies will react to the
combination of the increased demand and the decreased supply of oil and gas in
a manner that will provide an incentive for them to utilize both segments of
our business. We believe that oil and gas producers have great economic
incentive to recover additional production and reserves from known reservoirs
rather than pursuing a more risky exploration approach. Our extraction methods
may permit producers to add value by potentially recovering a significant
additional percentage of the oil and gas from a reservoir.

The Company currently is negotiating for numerous agreements with owners of
vast tracts of proven producing and proven undeveloped wells to implement its
plan. The Company's strategy is to offer owners/leaseholders of stripper wells
its solution, free-of-charge, in exchange for a percentage of production based
on increased volumes and decreased costs per barrel/cubic foot produced by the
Company's efforts. The Company will evaluate candidates for use of the TPU
technology based upon the following criteria:

*	Economic package - available net revenue interest and working interest
	percentage offered
*	Quality of oil, i.e. sweet, reaction to heat, refining value
*	Reserve basis, i.e. proved producing, proved undeveloped & availability
	of gas for injection or cost of nitrogen generator
*	Quality of the reservoir, i.e. thickness, historical damage
*	Infrastructure support, i.e. well conditions, personnel, electricity,
	oilfield supplies, etc.

					(5)

<page>

Once an agreement is in place, the Company will deliver and set-up TPUs in an
oil field and train field personnel supplied by the owners to operate the
equipment. All that is required by oil field owner is to provide working wells
in good operating condition, trainable personnel and a power source.

Recovery of Heavy Oil and Tar Sand Overview

Heavy oil is defined as oil with a 10-20 API Gravity; tar sands oil is any oil
with an API Gravity lower than 10. These reserves have been studied and
defined over the last 75 years. Current production of heavy oil in the United
States accounts for only 8% of our current daily production. Production from
California accounts for nearly all of the heavy oil produced in the United
States. However, there are significant reserves in many other states. The DOE
has established estimates of "Oil In Place" for Heavy Oil at 79,152 Million
Barrels; Tar Sands "Oil in Place" is estimated at 71,525 Million Barrels. If
one considers the next grade of oil reserves between 20-25 API gravity, the
estimates only get higher. One geologist estimated that the oil reserves
remaining in the San Andres formation in the Permian Basin exceed "all of the
reserves of Saudi Arabia."

The Company feels that the TPU is one part of the solution to recovering these
valuable reserves. Coupled with proper production methods, the TPU can
generate sufficient pressure and temperature to make for a cost effective and
environmentally friendly recovering program.

THE TPU TECHNOLOGY

The TPU technology combines conventional compression and pumping in a very
unconventional way. The unit employs proprietary as well as "off the shelf"
external components. The work of compression is done with a low-speed, high
ratio, cylinder/piston/hydraulic ram configuration. Powered by a standard
hydraulic pump system, the system can be driven by either electric or gas
motors.

Fuel usage and fuel material balance is critical in any process or machine.
The TPU consumes the equivalent of 10-15 MCFD and 600-900 KWHD depending upon
the size and configuration of the TPU. In real dollars, the smallest unit,
TPU 150 consumes approximately $75 worth of energy per day. Comparative
horsepower and fuel usage finds the TPU to be approximately 50% lower than
other conventional machines.

The TPU technology generates heat as a by product. Heat in excess of 350 F
can be generated and maintained through the work of molecular friction in the
gas phase. Heat can be generated within five minutes of the unit's startup
time. There is NO open flame in the system. The unit can be placed next to
the wellhead without danger of fire or explosion. As a mobile unit, the TPU
will be an attractive alternative to conventional Hot Oilers. As a permanent
thermal flood installation, the TPU can be used instead of conventional steam
boilers.

The TPU can heat and displace wet or dry Methane Gas, Nitrogen, CO2 or any
combination of various gases. Additionally, the TPU can pump liquids such as
water, solvents and even organic acids. The problem with "phase changing"
or "liquid versus gas phase" is not a problem with the TPU. A huge market for
the TPU will be the injection of "Acid Gases" for disposal and/or tertiary
oil recovery.

Production increases in both oil and gas will be a natural result of "well
bore cleanup" and "near well bore stimulation." The TPU creates a "pulsating"
effect in the bottom hole strata. This is similar to a "breathing" effect. The
TPU "inhales" on the suction of the low pressure and "exhales" on the high
pressure discharge. Simultaneously, the formation experiences a steady and
gradual build up finding and filling pressure voids. Methane Gas and Natural
Gas Liquids (NGL's) are released into the vapor phase as the bottom hole
temperatures are increased above the liquid equilibrium state of the formation.


					(6)

<page>


The TPU has an ingenious internal system of heat exchangers, weir walls,
siphons and drains. The TPU actually becomes a horizontal separator. Oil and
Water are separated and can be directed via pumps to separate holding tanks.
The natural gas can be redirected into the low pressure suction and/or split
to a gas sales line. Also, the wet, heavy gas invites dew point processing
for "C4+" recovery.

THE COMPANY'S BUSINESS STRATEGY

The Company will offer owners/leaseholders of stripper wells and mineral
rights multiple options on the use of the TPU. The Company will offer a
day-rate service as well as partnerships in which the Company can receive a
percentage of production based on increased volumes and decreased costs per
barrel/cubic foot produced by the Company.

In the case of a joint venture based on incremental production, the Company
will deliver and set-up TPUs in an oil field and train field personnel
supplied by the owners to operate the equipment and all that will be required
by the oil field owner is to provide working wells in good operating
condition, trainable personnel and a power source.

The Company is also targeting opportunities in which it can secure leasehold
acreage and idle well bores and at the same time have equal or majority
control of the property. In these cases, the ownership of production will be
based upon the net revenue interest and working interest available.

TPU Manufacturing

Bi-Comp, L.L.C., the company that licenses the marketing rights for the TPU
to the Company, is the current manufacturer of the TPU with a manufacturing
capacity of 1-3 unit(s) per month. The Company realizes in order to grow the
capacity must increase dramatically. To increase production, the Company plans
to create a template for production, using certain companies to produce
specific parts, and taking these parts to a centrally located assembly plant.
By doing this, the Company anticipates producing 4 TPU units per week. This
process can be ramped up in approximately 45 days and with this system in
place the Company forecasts that up to 2 completed units per day can be
produced at a peak production run.

License and Marketing Agreement for TPU

The Company has been assigned the licensing and marketing agreement for the
TPU with Bi-Comp, L.L.C. Bi-Comp, L.L.C. provides exclusive license and
marketing rights on a geographical basis by county to the TPU to companies
that first market in such counties. The Company currently has the exclusive
rights to market the TPU in the following counties:

Texas Counties

Andrews
Gaines
Ector
Harris

COMPETITION

The market for enhanced oil recovery is highly competitive and we encounter
substantial competition in both the obtaining of exclusive marketing rights to
the TPU in counties currently not being licensed territories for the TPU by
Bi-Comp, L.L.C. and in the treatment of oil and gas wells for enhanced
recovery.

					(7)

<page>

Numerous companies are attempting to obtain the marketing rights for the TPU
in various oil and gas producing counties, many of which have greater
financial and marketing resources. Significant competitive factors in
obtaining the marketing rights include strength of company personnel, ability
to focus on profitable segments, contacts within the industry and the ability
to complete transactions on a timely basis, and we believe we can compete
favorably on the basis of these factors.

The enhanced oil recovery industry includes large and highly financed
companies that concentrate on larger projects and is highly fragmented in the
segment in which we will primarily compete. The larger companies include
but are not limited to Baker Hughes Inc., BJ Services Co., Halliburton Co.,
Schlumberger Ltd, Smith International Inc and Weatherford International Inc.

In the smaller market in which we will primarily compete, the significant
competitive factors include cost, ease of use, reliability and customer
relationships. We believe we compete favorably on the basis of these factors
in the markets we serve.

GOVERNMENT REGULATION AND LEGAL UNCERTAINTIES

Since the primary focus of the Company is to enhance existing oil and
gas wells, the Company will be operating on properties whereby the rights
and permits have already been obtained or maintained by the land/lease
holder at the location of the well. The Company is still however, subject
to regulatory control including but not limited to the Environmental
Protection Agency, U.S. Department of Energy, OSHA and various state
agencies such as the Secretary of State, as well as Oil and Gas
Commissions, and in reference to Texas, the Commission there being the
Railroad Commission.

EMPLOYEES

The Company currently employs one full-time employee.

AVAILABLE INFORMATION

Our annual reports on Form 10-KSB, quarterly reports on Form 10-QSB, current
reports on Form 8-K, and all amendments to these reports filed with the U.S.
Securities and Exchange Commission, are available for review free of charge on
the SEC's website at www.sec.gov/ that contains reports, proxy and information
statements and other information that we file with the SEC. In addition, you
may read and copy any materials we file with the SEC at the SEC's Public
Reference Room at 100 F Street, NE, Washington, DC 20549. You may obtain
information on the operation of the Public Reference Room by calling the SEC
at 1-800-SEC-0330.

ITEM 2. DESCRIPTION OF PROPERTY

The corporate headquarters consists of approximately 1,211 square feet
of space located at 200 West 17th Street, Suite 240, Cheyenne, Wyoming 82001
at a rental of $1,312.00 per month including utilities snd common area
maintenance expense. The lease expires in July 2006.


					(8)

<page>


ITEM 3. LEGAL PROCEEDINGS

We are currently not a party to any legal proceedings.

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

No matters were submitted to a vote of security holders during the quarter
ended March 31, 2006.

PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

The Company's Common Stock has traded on the Electronic Bulletin Board of the
National Quotation Bureau under the symbol "PLTG" since June 17, 2005 and
under the symbol "FSPS" from 2002 until June 17, 2005.

The following table sets forth for the quarters indicated the range of high
and low closing prices of the Company's Common Stock as reported by the
National Quotation Bureau, but does not include retail markup, markdown or
commissions.

<TABLE>
Platina Energy Group Inc.
(Formerly Federal Security Protection Services, Inc.)
Closing Prices by Quarter Ended
<CAPTION>

				High		Low
				-----		-----
<S>    				<C>    		<C>

Fiscal 2005
	June 30, 2004		$0.05		$0.05
	September 30, 2004	$0.035		$0.035
	December 31, 2004	$0.07		$0.07
	March 31, 2005		$0.17		$0.14

Fiscal 2006
	June 30, 2005		$0.21		$0.21
	September 30, 2005	$0.035		$0.035
	December 31, 2005	$0.07		$0.07
	March 31, 2006		$0.17		$0.14

</TABLE>

As of July 11, 2006, there were 17,629,731 shares of Common Stock
outstanding held by approximately 600 record and beneficial stockholders.


TRANSFER AGENT AND WARRANT AGENT

The Company has appointed Corporate Stock Transfer, Inc., 3200 Cherry Creek
Dr. South Suite 430 Denver, CO 80209, as its transfer agent and warrant agent.

DIVIDENDS

The Company has not paid dividends on its Common Stock since inception and
does not plan to pay dividends in the foreseeable future. Earnings, if any,
will be retained to finance growth.

RECENT SALES OF UNREGISTERED SECURITIES

Stock options

All options were exercisable at time of grant and no options have been
exercised as of March 31, 2006. The number of shares represented by stock
options outstanding at March 31, 2006 is 3,525,000 shares with an option price
of $.15 per share, and with a market price at date of grant of $.08 per share.
Outstanding options expire in March 2007.

					(9)

<page>


Preferred stock

Preferred Class A

As of March 31, 2006, there are no shares of Series A preferred stock
outstanding. During the fiscal year, holders of the 10,000 shares of
the Series A preferred stock converted these preferred shares into
100,000 shares of the Company's common stock.

Preferred Class B

Each share of Series B Preferred Stock is convertible into 100 shares of
Common Stock after March 6, 2003. Series B Preferred Stock votes with the
Common Stock on all matters. The designation of rights and preferences were
filed with the State of Delaware Secretary of State on September 11, 2002.
In November, 2003, 20,000 shares of Series B stock were issued to two related
parties for providing the Company with management services during the calendar
year ending December 31, 2003. Therefore, as of March 31, 2006, the Company
had 20,000 shares of Series B Preferred outstanding.

Preferred Class C

As of March 31, 2006 there are no shares of Series C preferred stock
outstanding. During the year, the holder of all of the 3,800 Preferred
Class C shares converted the preferred shares into 380,000 shares of
common stock.

Common Stock

On April 6, 2005, the Company issued 2,250,000 shares of its common stock in
connection with the acquisition of certain intangible assets from Permian
Energy Services, LP.

On May 5, 2005, the Company issued a consultant 750,000 in connection with the
above-indicated asset purchase. The shares were valued at $97,500, which was
included in the value assigned to the intangible assets purchased. In May
2005, the Company also issued 200,000 units through its private offering for
$40,000. Each unit consists of one share of the Company's common stock, a
warrant to purchase one share of common stock at $.50 per share and a warrant
to purchase one share of common stock at $1.00. The warrants expire two years
from date of issuance. In May 2005, the Company also issued 50,000 shares to
consultants for services rendered with shares valued at $12,000. On May 25,
2005 the Company further issued 60,000 shares for public relations services
valued at $13,200 and May 2005, the Company issued 53,000 shares of its common
stock to a noteholder in exchange for the cancellation of $10,070 of
indebtedness due him.

In June 2005, the Company issued 60,000 units through its private offering for
$120,000 with each unit consisting of one share of the Company's common stock,
a warrant to purchase one share of common stock at $.50 per share and a
warrant to purchase one share of common stock at $1.00. The warrants expire
two years from date of issuance. On June 23, 2005, a preferred stockholder
converted 10,000 shares of Series A preferred stock into 100,000 shares of
the Company's common stock and on June 23, 2005, a preferred stockholder
converted 3,800 shares of Series C preferred stock into 380,000 shares of
the Company's common stock.

In July 2005, the Company issued 150,000 units through its private offering
for $30,000 with each unit consisting of one share of the Company's common
stock, a warrant to purchase one share of common stock at $.50 per share
and a warrant to purchase one share of common stock at $1.00. The warrants
expire two years from date of issuance.

In August 2005, the Company issued 325,000 units through its private offering
for $65,000 with each unit consisting of one share of the Company's common
stock, a warrant to purchase one share of common stock at $.50 per share
and a warrant to purchase one share of common stock at $1.00. The warrants
expire two years from date of issuance.

In February 2006, the Company issued 300,000 shares of its common stock in
exchange for $15,000.

In March 2006, the Company issued 500,000 shares of its common stock in
exchange for $25,000.

In April 2006, the Company issued 1,225,000 shares of its common stock in
exchange for $61,250.

In April 2006, the Company entered into a settlement agreement with Permian
Energy Services L.P. and Robert Clark ("Clark"), the former president of
Permian Energy International Inc. Under the terms of the settlement
agreement, Clark agreed to return 2,025,000 shares of common stock to the
Company. (See Note 9 - accompanying notes to financial statements)


ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Management's Discussion and Analysis (MD&A) contains statements that are
forward-looking. These statements are based on current expectations and
assumptions that are subject to risks and uncertainties. The actual results
may differ materially from results anticipated in these forward-looking
statements. We base the forward-looking statements on information currently
available to us, and we assume no obligation to update them. Unless specified
otherwise as used herein, the terms "we," "us" or "our" refers to the Company.

OVERVIEW

The following Management's Discussion and Analysis ("MD&A") is intended to
help the reader understand Platina Energy Group Inc., formerly Federal
Security Protection Services, Inc.  MD&A is provided as a supplement to,
and should be read in conjunction with, our financial statements and the
accompanying notes ("Notes").

					(10)

<page>

The Company made a decision to enter into the service sector of the oil
and gas industry at the beginning of fiscal year ended March 31, 2005.
Prior to this time, the Company had no operations to speak of and no revenue
for fiscal year ended March 31, 2005 and 2004. While the Company had limited
operations, the majority of fiscal year ended March 31, 2006 was spent in
planning and organization with minimal revenues.

Pursuant to the decision to enter into the oil and gas industry, the Company
proposed a name change to one that would be more suitable for the chosen
industry, and on June 15th, 2005 the Company held a special meeting of
shareholders.  As a result, the name change to Platina Energy Group Inc. was
approved, as well as the proposed 2005 stock option plan for the benefit
of certain officers, directors, employees and advisors of the Company.

On April 6, 2005 the Company entered into an asset purchase agreement with
Permian Energy Services, L.P. (herein after referred to as PES L.P.) and
R.J. Clark, Managing Partner of PES L.P. (See Item 1 - Description of
Business) The Company, through its wholly owned subsidiary, Permian
Energy International (herein after referred to as "PEI) acquired assets
of PES. The asset purchase agreement with PES L.P. consists of the
sale of all distribution and marketing rights of PES L.P. relating to the
Thermal Pulse Unit (TPU), an enhanced oil and gas recovery technology.
Having made our initial acquisition through an asset purchase agreement
with PES L.P., the Company realized its goal of entering into the Energy
Sector.  Wyoming Energy, Inc., a corporation wholly owned by the Company's
president owns a 10%  limited partnership interest PES L.P.

In connection with the asset acquisition of the rights and licenses to
marketing a certain proprietary thermal pulse pump for utilization in the
oil and gas industry from Permian Energy Services LP ("LP"), the Company
appointed the managing member of the LP as Permian Energy International's
President and CEO.  In August 2005, Permian Energy International's President
resigned his position as President and Director.  At the time of resignation,
the President was in possession of Company equipment, but returned it to the
Company in August 2005. On August 15, 2005, the Company and its subsidiary,
Permian Energy International, Inc., (the "Plaintiffs") filed an action in
the District Court for the City and County of Denver, State of Colorado as
plaintiffs versus Permian Energy Services, L.P. and Robert Clark (the
"Defendants') as the defendants. The parties to the lawsuit have executed
a mutual release and settlement agreement on April 2, 2006 to settle all
matters set forth in the lawsuit.

The Company has retained all rights originally acquired in the asset purchase
agreement as part of the mutual release and settlement and fully intends to
continue in the oil and gas industry with said assets. Accordingly, the goals
of the Company therefore remain unchanged. The Company is continuing to seek
merger and acquisition candidates operating in energy related industries. The
development strategy of the Company anticipates establishing a foundation for
long-term growth, as a holding company focused primarily on the acquisition
of companies that own or operate enhanced recovery, drilling, and/or
exploration technologies.  The Company is also actively pursuing the
acquisition of operating oil and gas properties or leases as another means
of potentially increasing the revenues and assets of the Company. The Company
is also considering sales of TPU units to oil and gas property owners/operators
for their own use.

The Company's principal place of business is 200 West 17th St, Suite 240,
Cheyenne, WY 82001.


					(11)

<page>


RESULTS OF OPERATIONS

The Company has had very limited operations from its acquisition of assets
from Permian Energy Services LP ("LP") for fiscal year ending March 31, 2006,
and the financial statements contained herein reflect the consolidated
financial statements of Platina Energy Group Inc. (formerly Federal Security
Protection Services, Inc.) and Permian Energy International, a wholly owned
subsidiary of Platina Energy Group, Inc.

Revenues for the fiscal year ended March 31, 2006 and 2005 were $4,900 and
$-0- respectively. Operating expenses consisted of testing costs associated
with the TPU, salaries, as well as general and administrative expenses.
General and administrative expense primarily consists of executive,
consulting, financial and legal expenses and related costs. Testing costs
associated with the TPU was $143,090 in the fiscal year ended March 31, 2006.
General and administrative expense was $417,330 and 201,141 in the fiscal
years ended March 31, 2006, and 2005 respectively. Officers' compensation
was $107,000 and $168,000 in the fiscal years ended March 31, 2006, and
2005 respectively. Other expenses in the fiscal year ended 2006 included
amortization  expense of $49.643. Consulting expense of $64,557 of which
$25,200 was paid through the issuance of 110,000 shares of the Company's
common stock, professional fees of $60,896, rent expense of $20,339,
and office salaries of $43,227.

The Company has total net losses for the years ended March 31, 2006 and 2005
were $600,811 and $342,126, respectively.

The Company's accumulated deficit as of March 31, 2006 and 2005 was $6,482,053
and $5,881,242, respectively.


LIQUIDITY AND CAPITAL RESOURCES

The Company's auditor has issued an opinion about the Company's ability to
continue as a going concern. The Company does require a significant cash
infusion to further its implementation plans.

During the fiscal year ended March 31, 2006, the Company received $295,000
from the sale of 2,075,000 shares of its common stock and received advances
from its President totaling $133,000. In the same fiscal year, the Company
used $290,663 in its operations, paid $56,764 for equipment utilized in its
oil drilling program, repaid its President $67,000, made a $10,000 payment
against the $250,000 obligation incurred in the asset acquisition from
Permian Energy Services L.P. (see Note 3 to the financial statements),
and paid $21,450 in direct costs associated with its private offerings.

During the fiscal year ended March 31, 2005, the Company received $70,000
from the sale of 350,000 shares of its common stock and received advances
from its President totaling $7,500. In the same fiscal year, the Company
used $28.934 in its operations, made a $25,000 loan to Permian Energy
Services L.P., and repaid its President $7,500.

With respect to the financial condition beyond fiscal year ending March
31, 2006, the Company will need to raise additional capital to meet operating
requirements.  Revenues for fiscal year ending March 31, 2006 was $4,900 and
thus, expenses have continued to exceed revenues.  Accordingly, the Company
does not expect to be able to fund operations from internally generated funds
until such time as its new business plan can be funded and implemented.
The Company currently has no material commitments for any additional
financing, and there can be no assurance that any such commitments can be
obtained on favorable terms, if at all.

				(12)

<page>

PLAN OF OPERATION

The Company has maintained its operations from sale of stock and advances from
related parties. The Company will continue to attempt to raise funds through
private placements of its common stock and warrants to purchase its common
stock. Over the next twelve months the Company plans to devote most of its
efforts and financial resources for the raising of additional necessary
capital and for the implementation of it's business plan. There can be no
assurance that funding or deals will be available to the Company. In the event
that such funding is not available to the Company, then Platina Energy Group
Inc. would be forced to use whatever cash is generated.

Any additional equity financing may be dilutive to our stockholders, and debt
financing, if available, may involve restrictive covenants with respect to
dividends, raising capital and other financial and operational matters which
could restrict our operations or finances.  If we are unable to obtain
additional financing as needed, we may be required to reduce the scope of our
operations or our anticipated expansion, which could have a material adverse
effect on our business, results of operations and financial condition.


KNOWN RISKS AND TRENDS
SEASONALITY

The Company does not expect to be sensitive to seasonal fluctuation.
The Company is however, affected by fluctuations in crude oil pricing, as well
as the pricing of competitive technologies.  Risks include the potential for the
development of displacement technologies which may be considered a better or
more feasible solution for oil and gas recovery.

LIABILITY FOR THE COMPANY'S SERVICES

Liability issues affecting the Company would be similar to those in the oil
and gas service industry (see "Government Regulations and Legal uncertainties")

					(13)

<page>

ITEM 7. FINANCIAL STATEMENTS


				Platina Energy Group Inc.
		(Formerly Federal Security Protection Services, Inc.)


		     Consolidated Financial Statements
		For the Years Ended March 31, 2006 and 2005

				    with
		Report of Independent Registered Public Accounting Firm



					(14)

<page>




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



Board of Directors and Stockholders
Platina Energy Group, Inc.

We have audited the accompanying consolidated balance sheet of Platina Energy
Group, Inc. (Formerly Federal Security Protection Services, Inc.) (the
"Company") as of March 31, 2006, and the related consolidated statements of
operations, stockholders' (deficit) and cash flows for the two years then
ended.  These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  The Company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting.  Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting.  Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe that our
audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Platina
Energy Group, Inc. (Formerly Federal Security Protection Services, Inc.) as
of March 31, 2006, and the results of its operations and its cash flows for
each of the two years then ended in conformity with accounting principles
generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 1 to the
financial statements, the Company has incurred recurring losses and has
yet to be successful in establishing profitable operations.  These factors,
among others, raise substantial doubt about its ability to continue as a going
concern.  Management's plans regarding those matters are also described in
Note 1.  The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.


/s/ Jonathon P. Reuben CPA

JONATHON P. REUBEN, CPA
AN ACCOUNTANCY CORPORATION

Torrance, California
July 7, 2006



					(15)

<page>



<TABLE>
Platina Energy Group Inc.
(Formerly Federal Security Protection Services, Inc.)
Consolidated Balance Sheet
<CAPTION>

								March 31
								--------
								2006


<S>    								<C>

Assets

	Current Assets
	Cash and cash equivalents				$6,200

	Property & Equipment (net of accumulated
	depreciation of $7,433)					$49,331

	Other assets
	Security deposits					$1,312
	Intangible assets subject to amortization		$297,857


		Total Assets					$354,700

Liabilities and Stockholder's Deficit

	Current Liabilities
	Accounts Payable and accrued expenses			$85,207
	Accrued compensation due officers			$275,000
	Notes payable to related party				$181,336
	Notes payable - other					$168,451

		Total Current Liabilities			$709,994

	Note payable - long term portion			$214,963


COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT
Preferred stock, par value $.001, 20,000,000
	shares authorized 70,000 shares designated
	Series A, no shares issued and outstanding
	at March 31, 2006. Aggregate liquidation
	preference of $100,000  at March 31, 2006.
	One share of Series A preferred is convertible
	into ten shares of common stock.			0
Preferred stock, 100,000 shares designated Series B,
	20,000 shares issued and outstanding at March
	31, 2006. Aggregate liquidation value
	preference of $2,000,000 at March 31, 2006. 		20
Preferred stock, 10,000 shares designated Series C
	and no shares issued and outstanding at March
	31, 2006. Aggregate liquidation value preference
	of $380,000 at March 31, 2006.				0
Common stock; $0.001 par value; 100,000,000 shares
	authorized; 18,429,731 shares issued and
	outstanding						18,430
Additional paid in capital					5,893,346
Accumulated deficit						(6,482,053)

TOTAL STOCKHOLDERS' DEFICIT					(570,257)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT			$354,700

</TABLE>

The accompanying notes are an integral part of these financial statements


					(16)

<page>

<TABLE>
Platina Energy Group Inc.
(Formerly Federal Security Protection Services, Inc.)
Consolidated Statement of Operations
<CAPTION>

								March 31	March 31
								--------	--------
								2006		2005


<S>    								<C>		<C>


NET REVENUE							$4,900		$ -

OPERATING EXPENSES
	Testing costs associated with thermal pump		143,090		$ -
	General and administrative expenses			417,330  	201,141

LOSS FROM OPERATIONS						(560,420)	(201,141)

OTHER INCOME (EXPENSE)
	Interest expense					(45,291)	(141,022)
	Interest income						$ - 		37
		Total other income (expenses)			(45,291)	(140,985)


NET LOSS FROM OPERATIONS					(600,811)	(342,126)


NET LOSS PER SHARE - BASIC AND DILUTED				$(0.07)		$(0.04)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 			16,867,608	9,233,692


</TABLE>

The accompanying notes are an integral part of these financial statements

					(17)

<page>


<TABLE>
Platina Energy Group Inc.
(Formerly Federal Security Protection Services, Inc.)
Consolidated Statements of Stockholder's Deficit
For the Years Ended March 31, 2006 and 2005
<CAPTION>

									Preferred Stock
							----------------------------------------------				Additional
							   Series A	   Series B 	   Series C	  Common Stock		Paid-in		Accumulated
							--------------	--------------	--------------	------------------	Capital		Deficit		Total
		            				Shares	Amount	Shares	Amount	Shares	Amount	Shares	    Amount	----------	-----------	----------
<S>    							<C>    	 <C>	<C>	 <C>	<C>	<C>	<C>	      <C>	<C>		<C>		<C>
Balance, March 31, 2004					60,000	 $60	20,000	 20	3,800	4	8,475,211     8,475	$5,158,543	$(5,539,116)	(372,014)

Conversion of Series A Preferred
	for Common shares				(50,000) (50)	-	 -	-	-	500,000	       500	(450)		-		-
Shares issued in connection with 2002 reverse
	stock split					-	  -	-	 -	-	-	70		 1	(1)		-		-
Shares issued for cash					-	  -	-	 -	-	-	350,000	       350	69,650		-		70,000
Issuance of common shares in exchange for
	cancellation of accrued compensation		-	  -	-	 -	-	-	2,400,000	2,400	141,600		-		144,000
Issuance of common shares in exchange for
extension of maturity date of notes payable		-	  -	-	 -	-	-	986,450		986	117,388		-		118,374
Contributed rent					-	  -	-	 -	-	-	-		-	6,000		-		6,000
Net loss						-	  -	-	 -	-	-	-		-	-		(342,126)	(342,126)


Balance, March 31, 2005					10,000	 10	20,000	 20	3,800	4	12,711,731  12,712	5,492,730	(5,881,242)	(375,766)

Shares issued for cash					-	  -	-	 -	-	-	2,075,000	2,075	292,925		-		295,000
Shares issued in consideration for licensing rights	-	  -	-	 -	-	-	3,000,000	3,000	94,500		-		97,500
Shares issued in conversion of Series A
	Preferred Shares				(10,000)  (10)  -	 -	-	-	100,000		100	(90)		-		-
Shares issued in conversion of Series C
	Preferred Shares				-	  -	-	 -	(3800)	(4)	380,000		380	(376)		-		-
Shares issued in exchange for cancellation
	indebtedness					-	  -	-	 -	-	-	53,000		53	10,017		-		10,700
Shares issued for services				-	  -	-	 -	-	-	110,000		110	25,090		-		25,200
Offering costs						-	  -	-	 -	-	-	-		-	(21,450)	-		(21,450)
Net loss						-	  -	-	 -	-	-	-		-	-		(600,811)	(600,811)
							--------------	--------------	--------------	------------------	----------	-----------	----------
Balance, March 31, 2006					-	  -	20,000	 20	-	-	18,429,731	18,430	5,893,346	(6,482,053)	(570,257)



</TABLE>

The accompanying notes are an integral part of these financial statements


					(18)

<page>



<TABLE>
Platina Energy Group Inc.
(Formerly Federal Security Protection Services, Inc.)
Consolidated Statement of Cash Flows
Years Ended March 31, 2006 and 2005


<CAPTION>

									March 31	March 31
									--------	--------
									2006		2005


<S>    									<C>		<C>

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss from continuing operations					$(600,811) 	$(342,126)
Adjustment to reconcile net loss to net cash
	used in operating activities:
		Donated rent						-		6,000
		Amortization expense					49,643			-
		Depreciation expense					7,433		248
		Common stock issued for services			25,200		-
		Interest paid through issuance of common stock		-		118,374
Changes in assets
	(Increase) in note receivable					-		(37)
	(Increase) in security deposits					(1,312)
Changes in liabilities
	Increase (Decrease) in accounts payable and accrued expenses	77,406		(1,399)
	Increase in accrued compensation due to officers		107,000		168,000
	Increase in notes payable					44,778		22,006
									--------	--------
		Net cash used in operating activities			(290,663)	(28,934)
									--------	--------


CASH FLOWS FROM INVESTING ACTIVITIES:
	(Increase) in notes receivable					-		(25,000)
	Equipment purchases						(56,764)	-
									--------	--------
		Net cash used in investing activities			(56,764)	(25,000)
									--------	--------


CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock					295,000		70,000
Advances from related party						133,000		7,500
Repayments to related party						(67,000)	(7,500)
Principal reduction of long term debt					(10,000)	-
Private offering costs							(21,450)	-
									--------	--------
	Net cash provided by financing activities			329,550		70,000
									--------	--------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(17,877)	16,066

CASH AND CASH EQUIVALENTS, Beginning of year				24,077		8,011
									--------	--------

CASH AND CASH EQUIVALENTS, End of year					6,200		$24,077
									--------	--------



</TABLE>

The accompanying notes are an integral part of these financial statements



					(19)

<page>

<TABLE>
Platina Energy Group Inc.
(Formerly Federal Security Protection Services, Inc.)
Consolidated Statement of Cash Flows - Continued
Years Ended March 31, 2006 and 2005


<CAPTION>

									March 31	March 31
									--------	--------
									2006		2005


<S>    									<C>		<C>

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

	Interest paid							$-		$643
	Income taxes paid						$-		$-

</TABLE>

NONCASH INVESTING AND FINANCING ACTIVITIES:

During the year ended March 31, 2005, the Company issued 2,400,000 shares
of its common stock in exchange for the cancellation of accrued compensation
due its officers totaling $144,000.

During the year ended March 31, 2005, 50,000 shares of the Company's Series A
Preferred Stock were converted into 500,000 shares of the Company's common
stock.

During the year ended March 31, 2005,  the Company issued 986,450 shares of
its common stock in consideration for the extension of the due date of
promissory notes held by shareholders including the Company's President.
The due dates were extended to February 28, 2006. The Company valued the
shares issued at $118,374, which  was charged to interest expense. Of the
shares issued, 395,457 shares were issue to the Company's President and
valued at $47,455. The amount due the Company's	president at the date the
shares were issued amounted to $99,853, including accrued interest of $19,807.

During the year ended March 31, 2005, the Company issued 70 shares of its
common stock in connection with its 2002 stock split. These shares represent
fractional shares created through the reverse stock split which were never
issued.

During the year ended March 31, 2005, the Company issued 2,400,000 shares of
its common stock in exchange for the cancellation of accrued compensation due
its officers totaling $144,000.

On April 6, 2005, the Company completed its purchase of the rights and
licenses from Permian Energy Group LP in connection with the marketing
of a certain pump in the oil and gas industry.  In consideration for the
assets purchased, the Company agreed to issue 2,250,000 shares of its
common stock and pay $250,000 evidenced by a promissory note. The Company
valued the intangible assets purchased at $347,500, which consists of
$250,000, evidenced by a promissory note, plus the market value of the
750,000 shares issued to consultant as discussed below. The Company
assigned no value to the 2,250,000 shares as 2,025,000 of these shares
were returned to the Company in under a settlement agreement in April 2006
and 225,000 shares were issued to a Corporation, wholly owned by the
Company's President that  had a 10% limited partners interest in the LP
(See Note 9).

On May 5, 2005, the Company issued a consultant 750,000 shares of its common
stock in connection with the above-indicated asset purchase. The shares were
valued at $97,500 and inlcuded in the cost basis of the related acquired
assets.

In May 2005, the Company issued 200,000 units through its private offering for
$40,000. Each unit consists of one share of common stock, one warrant to
purchase one share of common stock at $.50 per share and one warrant to
purchase one share of common stock at $1.00 per share.

In May 2005, the Company issued a total of 110,000 common shares to various
consultants for services rendered. These shares were valued at $25,200.

Also in May 2005, the Company issued 53,000 shares of its common stock to a
note holder in consideration for the cancellation of indebtedness amounting
to $10,070.

In June 2005, the Company issued 600,000 units through its private offering
for $120,000. Each unit consists of one share of common stock, one warrant
to purchase one share of common stock at $.50 per share and one warrant to
purchase one share of common stock at $1.00 per share.

In June 2005, a holder of 10,000 Class A preferred shares cancelled these
shares in exchange 100,000 shares of the Company's common stock. Also in
June 2005, a holder of 3,800 Class C preferred shares cancelled these
shares in exchange 380,000 shares of the Company's common stock.

In July 2005, the Company issued 150,000 units through its private offering
for $30,000. Each unit consists of one share of common stock, one warrant
to purchase one share of common stock at $.50 per share and one warrant to
purchase one share of common stock at $1.00 per share.

In August 2005, the Company issued 325,000 units through its private offering
for $65,000. Each unit consists of one share of common stock, one warrant to
purchase one share of common stock at $.50 per share and one warrant to
purchase one share of common stock at $1.00 per share.



The accompanying notes are an integral part of these financial statements

					(20)

<page>

Platina Energy Group Inc.
(Formerly Federal Security Protection Services, Inc.)
Notes to Financial Statements


NOTE 1.  Basis of Presentation and Organization

Organization and business

Platina Energy Group, Inc. ("the Company"), a Delaware Corporation, was
incorporated on January 19, 1988 as Windom, Inc.   After several failed
business attempts, the Company changed its name to Federal Security Protection
Services, Inc. on March 12, 2002 and acquired Iris Broadband, Inc. on
September 6, 2002.  The Company reversed its merger with Iris Broadband, Inc.
in 2003 and, as a result, discontinued business operations. On June 15, 2005,
the Company changed its name to Platina Energy Group Inc.

On March 30, 2005, the Company formed Permian Energy Incorporated, a Nevada
Corporation and acquired all of its outstanding common stock.  On April 6,
2005, the Company completed its purchase of rights and licenses from Permian
Energy Services LP in connection with the marketing of a certain proprietary
thermal pulsing pump in the oil and gas industry.  The assets acquired from
the LP were transferred into Permian Energy International. At the time of
the above indicated transaction with Permian Energy Services LP, a corporation
wholly owned by the Company's president owned a 10% limited partnership
interest in Permian Energy Services LP. (See Note 9)


Basis of Presentation

The Company's financial statements are prepared using the accrual method of
accounting in accordance with accounting principles generally accepted in the
United States of America and have been prepared on a going concern basis,
which contemplates the realization of assets and the settlement of liabilities
in the normal course of business. The Company has sustained operating losses
since its inception (January 19, 1988).  In addition, the Company has used
substantial amounts of working capital in its operations.  At March 31, 2006
current liabilities exceeded current assets by approximately $704,000, and the
Company has an accumulated deficit amounting to approximately $6,482,000.

In view of these matters, the continuation of the Company's operations is
dependent on funds advanced by its management and the raising of capital
through the sale of its equity instruments or issuance of debentures.
Management has entered into an agreement to purchase certain rights and
licenses from Permian Energy Services LP in connection with the marketing
of a proprietary thermal pulsing pump in the oil and gas industry.  Although
Management believes the marketing of the pump will be successful and should
generate sufficient revenue to fund the Company's future operations, no
assurances can be made that the marketing of the pump will be successful or
that the Company will be able to raise capital through other sources enabling
it to continue funding operations. These financial statements do not include
any adjustments relating to the recoverability and classification of recorded
assets or liabilities that might be necessary should the Company be unable to
continue as a going concern.



					(21)

<page>

NOTE 2.  Summary of Significant Accounting Policies


Principles of Consolidation

The accompanying consolidated financial statements include the accounts of
Platina Energy Group Inc. and its wholly owned subsidiary, Permian Energy
International, Inc. Intercompany transactions and balances have been
eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Accordingly, actual results could differ from those
estimates.

Cash Equivalents

For purposes of the statements of cash flows, the Company considers cash
equivalents to include highly liquid investments with original maturities of
three months or less.

Property and equipment

Property and equipment are stated at cost.  Major renewals and improvements
are charged to the asset accounts while replacements, maintenance, and repairs
that do not improve or extend the lives of the respective assets are expensed.
At the time property and equipment are retired or otherwise disposed of, the
asset and related accumulated depreciation accounts are relieved of the
applicable amounts. Gains or losses from retirements or sales are credited or
charged to income.

Equipment consisted of the Company's thermal pump (which was acquired in 2005)
and computer and phone equipment, which were depreciated over their estimated
useful lives using the straight-line method. Depreciation expense for the year
ended March 31, 2006 and 2005 amounted to $7,433 and $248, respectively.

Long-Lived Assets

The Company accounts for its long-lived assets in accordance with SFAS No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets."  SFAS No.
144 requires that long-lived assets be reviewed for impairment whenever events
or changes in circumstances indicate that the historical cost carrying value
of an asset may no longer be appropriate. The Company assesses recoverability
of the carrying value of an asset by estimating the future net cash flows
expected to result from the asset, including eventual disposition. If the
future net cash flows are less than the carrying value of the asset, an
impairment loss is recorded equal to the difference between the asset's
carrying value and fair value or disposable value. As of March 31, 2006,
the Company did not deem any of its long-term assets to be impaired.

Income taxes

The Company accounts for income taxes under the provisions of SFAS No. 109,
"Accounting for Income Taxes."  Under SFAS No. 109, deferred tax assets and
liabilities are recognized for future tax benefits or consequences
attributable to temporary differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases.
Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled.  A valuation allowance
is provided for significant deferred tax assets when it is more likely than
not that such assets will not be realized through future operations.

					(22)

<page>

The Company has total net operating loss carryforwards at March 31, 2006 of
approximately $6,500,000 for federal income tax purposes. These net operating
losses have generated a deferred tax asset of approximately $2,210,000 on
which a valuation allowance equaling the total tax benefit has been provided
due to the uncertain nature of it being realized. Net operating loss
carryforwards expire in various years through March 31, 2026 for federal tax
purposes.

Net Loss per Share

The Company adopted the provisions of SFAS No. 128, "Earnings Per Share"
("EPS"). SFAS No. 128 provides for the calculation of basic and diluted
earnings per share.  Basic EPS includes no dilution and is computed by
dividing income or loss available to common shareholders by the weighted
average number of common shares outstanding for the period.  Diluted EPS
reflects the potential dilution of securities that could share in the earnings
or losses of the entity.  If such shares were included in diluted EPS, they
would have resulted in weighted-average common shares of 19,474,046 and
16,258,692, for the years ended March 31, 2006 and 2005, respectively.

Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash equivalents,
accounts payable, accrued expenses, and notes payable.  Pursuant to SFAS
No. 107, "Disclosures About Fair Value of Financial Instruments," the Company
is required to estimate the fair value of all financial instruments at the
balance sheet date. The Company considers the carrying values of its financial
instruments in the financial statements to approximate their fair values.

Reclassification

Certain reclassifications have been made to conform the March 31, 2005 amounts
to the March 31, 2006 presentation for comparative purposes.

Recent Accounting Pronouncements

In May 2005, the FASB issued FASB Statement 154, Accounting Changes and Error
Corrections. This Statement replaces APB Opinion No. 20, Accounting Changes,
and FASB Statement No. 3, Reporting Accounting Changes in Interim Financial
Statements, and changes the requirements for the accounting for and reporting
of a change in accounting principle. Opinion 20 previously required that most
voluntary changes in accounting principle be recognized by including in net
income of the period of the change the cumulative effect of changing to the
new accounting principle.  This Statement requires retrospective application
to prior periods' financial statements of changes in accounting principle,
unless it is impracticable to determine either the period-specific effects
or the cumulative effect of the change. The provisions in Statement 154 are
effective for accounting changes and corrections of errors made in fiscal
years beginning after December 15, 2005. The Company plans on adopting this
statement on January 1, 2006, and does not believe that it will have a
significant impact on its operations.

In December 2004, the FASB issued SFAS No. 153, "Exchanges of Non-Monetary
Assets, an amendment of APB Opinion 29, Accounting for Non-Monetary
Transactions." The amendments made by SFAS No. 153 are based on the principle
that exchanges of non-monetary assets should be measured based on the fair
value of the assets exchanged. Further, the amendments eliminate the narrow
exception for non-monetary exchanges of similar productive assets and replace
it with a broader exception for exchanges of non-monetary assets that do not
have "commercial substance." The provisions in SFAS No. 153 are effective for
non-monetary asset exchanges occurring in fiscal periods beginning after June
15, 2005. Early application is permitted and companies must apply the standard
prospectively. The Company adopted this statement on January 1, 2005. The
adoption of the statement did result in a significant change in the current
manner in which the Company accounts for its exchanges of non-monetary assets.

					(23)

<page>

The FASB has issued SFAS No. 123R, "Share-Based Payment."  The new rule
requires that the compensation cost relating to share-based payment
transactions be recognized in the financial statements. That cost will be
measured based on the fair value of the equity or liability instruments
issued. This statement precludes the recognition of compensation expense
under APB Opinion No. 25's intrinsic value method. Public entities will be
required to apply Statement 123R in the first annual reporting period that
begins after December 15, 2005. Since the Company has been accounting for its
share-based compensation under SFAS No. 123, management believes SFAS No.
123R should not have a significant impact on the way it accounts for its
stock-based compensation.

In December 2003, the Financial Accounting Standards Board ("FASB") issued
FASB Interpretation No. ("FIN") 46R, "Consolidation of Variable Interest
Entities." This statement requires that the assets, liabilities and results
of the activities of variable interest entities be consolidated into the
financial statements of the company that has a controlling financial
interest. It also provides the framework for determining whether an entity
should be consolidated based on voting interest or significant financial
support provided to it. In general, for all entities that were previously
considered special purpose entities, FIN 46R should be applied in periods
ending after December 15, 2003. Otherwise, FIN 46R is applicable to all
public entities for periods ending after March 15, 2004. The adoption of
FIN 46R did not have a material impact on the Company's consolidated financial
condition or results of operations.


NOTE 3. Acquisition of Licensing Rights

On April 6, 2005, the Company completed its purchase of rights and licenses
from Permian Energy Services LP ("LP") in connection with the marketing of
a certain pump in the oil and gas industry. In consideration for the
assets purchased, the Company agreed to issue 2,250,000 shares of its
common stock and pay $250,000 as evidenced by a promissory note with
interest accruing at an annual rate of 6%. Under the terms of the note,
accrued interest is due one year from the date of the note and all principal
and additional accrued interest is due two years from the date of the note.
In addition to the 2,250,000 shares, the Company issued an additional
750,000 shares to a consultant in connection with the acquisition.

As discussed further in Note 9, of the 2,250,000 shares originally issued,
2,025,000 were returned to the Company pursuant to a settlement agreement
with the LP. The remaining 225,000 shares were issued to a corporation wholly
owned by the Company's president that owned a 10% limited partners interest
in the LP (See Notes 5 and 9).

The Company valued the intangible assets purchased at $347,500, which consists
of the $250,000 obligation plus the fair value of the 750,000 shares issued
to the consultant. The Company valued the shares issued as of April 6, 2005.
The Company retroactively restated the value of the intangible assets upon
settling with the LP and assigned no value to the 2,250,000 shares originally
issued.

The Company is amortizing the licensing rights over its expected useful life
of seven years. Amortization expense charged to operations for the year ended
March 31, 2006 amounted to $49,643.

Estimated amortization expense for the next five years is as follows:

	2007		$49,643
	2008		$49,643
	2009		$49,643
	2010		$49,643
	2011		$49,643


NOTE 4. Notes Payable - Other

The Company owed five individuals a total of $155,774 as of March 31, 2006,
including accrued interest. The loans are assessed interest at an annual rate
of 12% and are evidenced by five separate promissory notes. Interest charged
to operations on these obligations during the year ended March 31, 2006 and
2005 totaled $16,618 and $10,078, respectively.

Under the terms of the modified loan agreements, until the loans and accrued
interest are paid in full, each holder has the right to convert the obligation
due them, including accrued interest, into shares of the Company's common
stock at a price per share equal to the average of the bid price of the
Company's common stock for the thirty day trading period prior to the written
notice of conversion. In May 2005, a note holder converted $10,070 of
indebtedness due him by the Company into 53,000 shares of the Company's
common stock. The five indicated notes matured on February 28, 2006 and
are in default.

					(24)

<page>

NOTE 5. Long-Term Debt

As discussed in Note 3, the Company completed its purchase of rights and
licenses from Permian on April 6, 2005. In consideration for the assets
purchased, the Company agreed to pay $250,000 evidenced by a promissory note
with interest accruing at an annual rate 6%. Under the terms of the
note, accrued interest is due one year from the date of the note and all
principal and additional accrued interest is due two years from the date
of the note. In March and April 2005, the Company made advances totaling
$35,000 to the LP prior to the asset acquisition.  The Company credited the
advances made to the LP including accrued interest totaling $35,037 against
the $250,000 obligation due, thereby leaving a principal balance due on the
obligation at March 31, 2006 of $214,963. Accrued interest due within one
year and charged to operations for the year ended March 31, 2006 totaled
$12,677 and was included in current portion of notes payable. The interest
which was due in March 2006 was not paid and the loan is in default.
(See Note 9).

The minimum future principal payments on long-term debt are as follows:

	Year ending March 31,

	2007			$  -
	2008			$214,963
				--------
	Total	      		$ 214,963


NOTE 6. Shareholders' Deficit

Preferred Stock

On June 23, 2005, a preferred stockholder converted 10,000 shares of Series
A preferred stock into 100,000 shares of the Company's common stock.

On June 23, 2005, a preferred stockholder converted 3,800 shares of Series
C preferred stock into 380,000 shares of the Company's common stock.

					(25)

<page>


Common Stock

On April 6, 2005, the Company issued 2,250,000 shares of its common stock in
connection with the acquisition of certain intangible assets from Permian
Energy Services, LP.  Of these issued shares, 2,025,000 were returned to
the Company in April 2006. (see Notes 3 and 9).

On May 5, 2005, the Company issued a consultant 750,000 in connection with the
above-indicated asset purchase. The shares were valued at $97,500, which was
included in the value assigned to the intangible assets purchased.

In May 2005, the Company issued 200,000 units through its private offering for
$40,000. Each unit consists of one share of the Company's common stock, a
warrant to purchase one share of common stock at $.50 per share and a warrant
to purchase one share of common stock at $1.00. The warrants expire two years
from date of issuance.

In May 2005, the Company issued 50,000 shares to consultants for services
rendered. The shares were valued at $12,000.

On May 25, 2005 the Company issued 60,000 shares for public relations services.
The shares were valued at $13,200.

In May 2005, the Company issued 53,000 shares of its common stock to a creditor
in exchange for the cancellation of $10,070 of indebtedness due him.

In June 2005, the Company issued 100,000 units through its private offering
for $20,000. Each unit consists of one share of the Company's common stock,
a warrant to purchase one share of common stock at $.50 per share and a
warrant to purchase one share of common stock at $1.00. The warrants expire
two years from date of issuance.

On June 23, 2005, a preferred stockholder converted 10,000 shares of Series A
preferred stock into 100,000 shares of the Company's common stock.

On June 23, 2005, a preferred stockholder converted 3,800 shares of Series
C preferred stock into 380,000 shares of the Company's common stock.

In June 2005, the Company issued 500,000 units through its private offering
for $100,000. Each unit consists of one share of the Company's common stock,
a warrant to purchase one share of common stock at $.50 per share and a
warrant to purchase one share of common stock at $1.00. The warrants expire
two years from date of issuance.

In July 2005, the Company issued 150,000 units through its private offering
for $30,000. Each unit consists of one share of the Company's common stock, a
warrant to purchase one share of common stock at $.50 per share and a warrant
to purchase one share of common stock at $1.00. The warrants expire two years
from date of issuance.

In August 2005, the Company issued 325,000 units through its private offering
for $65,000. Each unit consists of one share of the Company's common stock, a
warrant to purchase one share of common stock at $.50 per share and a warrant
to purchase one share of common stock at $1.00. The warrants expire two years
from date of issuance.

In February 2006, the Company issued 300,000 shares of its common stock in
exchange for $15,000.

In March 2006, the Company issued 500,000 shares of its common stock in
exchange for $25,000.

					(26)

<page>


Stock Warrants

At March 31, 2005, there were total warrants outstanding to purchase 350,000
shares of common stock at $0.50, and 350,000 shares of common stock at $1.00.

In May 2005, the Company issued warrants to purchase 200,000 shares of the
Company's common stock at a price of $0.50 per share and to purchase 200,000
shares of common stock at $1.00. The warrants were issued in connection with
the Company's private offerings and expire two years from date of issuance.

In June 2005, the Company issued warrants to purchase 100,000 shares of the
Company's common stock at a price of $0.50 per share and to purchase 100,000
shares of common stock at $1.00. The warrants were issued in connection with
the Company's private offerings and expire two years from date of issuance.

In June 2005, the Company issued warrants to purchase 500,000 shares of the
Company's common stock at a price of $0.50 per share and to purchase 500,000
shares of common stock at $1.00. The warrants were issued in connection with
the Company's private offerings and expire two years from date of issuance.

In July and August 2005, the Company issued warrants to purchase 475,000
shares of the Company's common stock at a price of $0.50 per share and to
purchase 475,000 shares of common stock at $1.00. The warrants were issued
in connection with the Company's private offerings and expire two years from
date of issuance.

At March 31, 2006, there were total warrants outstanding to purchase 1,625,000
shares of common stock at $0.50, and 1,625,000 shares of common stock at $1.00.



Employee Stock Option Plan

On March 25, 2005, the Company established a stock option plan for officers,
directors, employees and consultants. Under the plan, certain options issued
will constitute "Incentive Stock Options" within the meaning of section 422A
of the Internal Revenue Code, and other options issued will be deemed
nonstatutory. The Company's Board of Directors is responsible for the plan and
the granting of the options. The number of common shares reserved to be issued
through the plan is 3,000,000. Options are exercisable for as period up to ten
years from the date of grant. The Company's Board of Directors decides the
actual term of each option. Options granted to employees are subject to a
vesting schedule based upon the number of years of continuous service that the
employee has with the Company from the grant date of the respective option.
After three years of continuous service from the date of grant, the respective
options held by an employee are fully vested. The price for shares issued
through the exercise of incentive stock options are at fair market value for
all employees with the exception of employees who are significant
shareholders, who will pay no less than 110% of market value. The price for
shares issued through the exercise of nonstatutory options shall be decided by
the Company's Board, but at a price no less than 100% of the shares market
value at date of grant.

In 2002, the Company issued 6,225,000 stock options to its management to
purchase shares of the Company's common stock at a price of $.15 per share.
The options expire in April 2007.

Option activity for the year ended March 31, 2006 is as follows:

										Weighted
										Average
							Options			Exercise
							Outstanding 		Price

Balance - March 31, 2005				6,225,000		$ .15
Options cancelled  			 		(2,700,000)		$(.15)
							--------		--------
Balance - March 31, 2006		  		3,525,000		$ .15


					(27)

<page>


NOTE 7. Related Parties


Short-Term Borrowings

As of March 31, 2006, the Company owed its President for a total of $181,336
under various loan obligations, including accrued interest of $4,334. The
loans are assessed interest at an annual rate of 12% and are evidenced by a
promissory note. In addition, under the terms of the loans, until the
principal loans balance and accrued interest are paid in full, the President
has the right to convert the obligation due him, including accrued interest,
into shares of the Company's common stock at a price per share equal to the
average of the bid price of the Company's common stock for the thirty day
trading period prior to the written notice of conversion. Interest charged
to operations on this indebtedness totaled $15,483 and $13,785 for the year
ended March 31, 2006 and 2005, respectively.

During the year ended March 31, 2006, the Company's President advanced it a
total of $133,000 and was repaid $67,000.


Stock Options

The Company had granted stock options to related parties and various
consultants to purchase shares of the Company common stock. As of March
31, 2006, the Company had 3,525,000 stock options outstanding.

Noncash transactions

For the years ended March 31, 2006 and 2005, the Company accrued $107,000 and
$168,000, respectively, for compensation due its officers for services
Rendered. Balance due them at March 31, 2006 totaled $275,000.


Acquisition of Intangible Assets from Permian Energy Services LP

The Company's President is a sole shareholder of a corporation which is a
member of Permian Energy Services LP (See Notes 3 and 9).

					(28)

<page>


NOTE 8. Commitments and Contingencies

Operating Leases

The Company leases office space for its Cheyenne office on a one-year lease
expiring in July 2006, payable monthly installments of $1,312 per month. The
Company lease pertaining to its Denver office expired in September 2005 and
was not renewed. Rent expense for year ended March 31, 2006 was $20,339.
During 2005, the Company used the offices of its President at no cost and
charged operation with the fair value of the free rent of $6,000.


NOTE 9.  Subsequent Events

In April 2006, the Company entered into a settlement agreement with Permian
Energy Services L.P. and Robert Clark ("Clark"), the former president of
Permian Energy International Inc. Under the terms of the settlement
agreement, the Company has agreed to dismiss its lawsuit against Clark. The
Company has also agreed to pay Clark $53,823 in exchange for Clark returning
the 2,025,000 shares it received under the April 5th, 2005 asset purchase
agreement and cancelling the $214,963 obligation due it.

In order to bring the negotiations with Clark to a successful conclusion,
Wyoming Energy Corp. had to return to Permian Energy Services LP, its 10%
ownership interest in the LP.. In consideration for the loss of Wyoming's
interest in the LP, the Company transferred its obligation to the LP to
Wyoming under the same terms and conditions. Wyoming Energy Corp. is
wholly-owned by the Company's president.

Clark also agreed not to engage in the business of providing downhole oil or
gas well stimulation as referenced and defined in the PES-BI-Comp agreement,
which was assigned to the Company by Clark in April 2005 pursuant to the Asset
Purchase Agreement (See Note 3) for a period of three years.



					(29)

<page>

<page>

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

None.

PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

Pursuant to the Company's Certificate of Incorporation and its Bylaws, The
members of the Board of Directors serve for one-year terms. The Company's
directors and executive officers as of March 31, 2006 were:

<TABLE>
Platina Energy Group Inc.
(Formerly Federal Security Protection Services, Inc.)
Directors and Executive Officers
<CAPTION>
				Age		Position Held
				-------		-------------
<S>				<C>		<C>
Name
Blair J. Merriam		48		CEO, President and Director
Daniel W. Thornton		45		Secretary, Vice President
						Business Development, Director
Hector J. Beltran		53		Director
</TABLE>


SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

The tables below set forth information, as of March 31, 2006 with respect
to beneficial ownership of the Company's Common Stock and Series A, B and C
Preferred Stock by each person known by the Company to be the beneficial owner
of more than 5% of each class of its outstanding voting securities, by each
director of the Company, by each executive officer and by all officers and
directors of the Company as a group. Unless otherwise noted, each Shareholder
has sole investment and voting power over the shares owned. Shares of Series
A, B and C Preferred Stock vote with the Common Stock on all matters. Each
of the share of the preferred stock series has 100 votes. The preferred stock
amounts shown are reflective of voting rights.

<TABLE>
Common and Preferred Stock
<CAPTION>

<S>
Name and Address		Amount and Nature of		Percentage
of Beneficial Owner		Beneficial Ownership		of Class
				--------------------		----------
 				<C>		<C>		<C>


Daniel Thornton
4255 S Bannock St.
Englewood, CO 80110		Common		862,500		4.1%


Blair Merriam (1)
P.O. Box 3235
Cheyenne, WY 82003              Common		5,547,457	26.6%
				Series B	1,000,000	50.0%
Hector Beltran (2)
PO Box 3171
Cheyenne, WY 82003		Common		2,699,034	12.9%

Jesus Peralta
P.O. Box 3191
Cheyenne, WY 82003		Series B	1,000,000	50.0%


All directors and executive
officers as a group(3 persons)  Common		9,108,991(3)	43.7%
				Series A       	-0-		0.0%
				Series B        1,000,000	50.0%
				Series C	-0-          	0.0%


(1) 	Includes 1,340,000 shares that may be acquired directly pursuant to the exercise of options and 180,000 shares
	that may be acquired by Beltropic Inc., a company wholly owned by Mr. Blair Merriam. Also includes 600,000
	shares owned by Beltropic, Inc. and 225,000 shares owned by Wyoming Energy Corp., both of these companies
	are wholly owned by Mr. Blair Merriam.

(2)	Includes 1,500,000 shares that may be acquired directly pursuant to the exercise of options that may be acquired
	by Mr. Hector Beltran. Also includes 1,100,000 shares owned by Web Consultants Inc., a company wholly owned by
	Mr. Hector Beltran.

(3)	Includes options to acquire 3,020,000 shares of common stock.  Includes 6,088,991 of common shares which are
	34.5% of the 17,629,731 common shares outstanding.



</TABLE>

					(29)

<page>


ITEM 10. EXECUTIVE COMPENSATION

<TABLE>

The following tables contain compensation data for the Chief Executive Officer and other named
executive officers of the Company for the fiscal year ended March 31, 2006.
<CAPTION>


				 Annual Compensation				Long Term Compensation
				---------------------		----------------------------------------------------
								Other Annual		Awards		All Other
				Salary		Bonus		Compensation		Options		Compensation
				------		------		-------------		--------	------------
<S>				<C>		<c>		<C>			<C>		<C>
Name and
Principal Position

Blair Merriam (1)		-		- 		$80,000	 (1)		-		-
Chief Executive Officer
and Director

Daniel Thornton	(2)		-		-		$27,000	 (2)		-		-
Secretary and Director

(1)	Consists of accrued compensation of $ 80,000.
(2)	Consists of accrued compensation of $ 27,000.


</TABLE>

Employment Arrangements

The Company has an employment agreement with one employee.

Stock Options and Warrants

No options were issued during the fiscal year ended March 31, 2006.

Directors' Compensation

The Directors did not receive any compensation during fiscal year
ended March 31, 2006.


					(30)

<page>


ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The tables below set forth information, as of March 31, 2006, with respect to
the number and percentage of outstanding shares of Company Common Stock and
Series A, B and C Preferred Stock owned by (i) each person known to the
Company to beneficially own more than 5% of each class of stock, (ii) each
director, (iii) each named executive officer, and (iv) all executive officers
and directors as a group. The following calculations are made according to the
rules of the Securities and Exchange Commission. Share ownership is deemed to
include all shares that may be acquired through the exercise or conversion of
any other security immediately or within the next sixty days. Such shares that
may be so acquired are also deemed outstanding for purposes of calculating the
percentage of ownership for that individual or any group of which that
individual is a member. Shares outstanding were determined as of March 31,
2006.

<TABLE>
Common Stock
<CAPTION>
						Number of Shares	Percentage
						Beneficially Owned	of Ownership
<S>						<C>			<C>
Name and Address
of Beneficial Owner
- -------------------

Daniel Thornton
4255 S Bannock St.
Englewood, CO 80110		Common		862,500		4.1%


Blair Merriam (1)
P.O. Box 3235
Cheyenne, WY 82003              Common		5,547,457	26.6%
				Series B	1,000,000	50.0%
Hector Beltran (2)
PO Box 3171
Cheyenne, WY 82003		Common		2,699,034	12.9%

All officers and directors
    as a group (3 persons)	10,108,991(3)		57.3%


(1) 	Includes 1,340,000 shares that may be acquired directly pursuant to the exercise of options and 180,000 shares
	that may be acquired by Beltropic Inc., a company wholly owned by Mr. Blair Merriam. Also includes 600,000
	shares owned by Beltropic, Inc. and 225,000 shares owned by Wyoming Energy Corp., both of these companies
	are wholly owned by Mr. Blair Merriam.

(2)	Includes 1,500,000 shares that may be acquired directly pursuant to the exercise of options that may be acquired
	by Mr. Hector Beltran. Also includes 1,100,000 shares owned by Web Consultants Inc., a company wholly owned by
	Mr. Hector Beltran.

(3)	Includes options to acquire 3,020,000 shares of common stock.  Includes 6,088,991 of common shares which are
	34.5% of the 17,629,731 common shares outstanding.

</TABLE>

Series A Preferred Stock

As of March 31, 2006 there were no shares of Series A preferred stock issued
or outstanding.


					(31)

<page>

<TABLE>
Series B Preferred Stock *
<CAPTION>
				Number of Shares	Percentage
				Beneficially Owned	of Ownership
<S>				<C>			<C>
Name and Address
of Beneficial Owner
- -------------------

Blair Merriam
P.O. Box 3235
Cheyenne, WY 82003		10,000			50.0%

Jesus Peralta
P.O. Box 3235
Cheyenne, WY 82003		10,000			50.0%

All officers and directors
    as a group (1 person)	10,000			50.0%

*	Each share of Series B Preferred Stock is convertible into 100 shares of Common Stock after November 11, 2004.
Series B Preferred Stock votes with the Common Stock on all matters. There are 20,000 shares of Series B Preferred Stock
outstanding. The designation of rights and preferences were filed with the State of Delaware Secretary of State on
September 11, 2002.
</TABLE>

Series C Preferred Stock

As of March 31, 2006 there were no shares of Series C preferred stock issued
or outstanding.

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ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Blair Merriam, the Company's CEO and Director has granted loans to the Company
for the purpose of helping to meet basic expenses associated with legal,
accounting and SEC filings. During the fiscal year ended March 31, 2006 Mr.
Blair Merriam advanced $133,000 to the company and was repaid during the year
$67,000. The advances Mr. Blair Merriam made to the Company bear interest at
an annual rate of 12% and for the fiscal year ended March 31, 2006 the Company
credited his loan balance for $15,483 in accrued interest. The balance due him
as of March 31, 2006 was $181,336.




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ITEM 13. EXHIBITS AND REPORTS

Exhibit No. 	Description


10.1		MUTUAL RELEASE AND SETTLEMENT AGREEMENT

1.1		Rule 13a-15(e)/15d-15(e) Certification

1.2		Section 1350 Certification




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