UNITED STATES
SECURITIES AND EXCHANGE COMMISSION



FORM 10-KSB



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

For the Fiscal Year Ended February 28, 2001



OR



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

For the transition period from __________ to __________



Commission File Number: 
1-15165
_______________________



BULLET ENVIRONMENTAL TECHNOLOGIES, INC.



|Delaware
(State or other jurisdiction of
incorporation or organization) | 98-0208402
(I.R.S. Employer Identification No.)
|----------------------------------------------------------------------- | -----------------------------------------------

1177 West Hastings Street, #1818, Vancouver,
BC, Canada   V6E 2K3
(Address of principal executive offices)



(604) 602-1717
(Issuer's telephone number)



Securities registered under Section 12(b) of the Exchange
Act:



|Title of Each Class
Common Stock, $0.0001 Par Value | Name of Each Exchange of WhichEach Class is Registered
Pink Sheets
|--------------------------------------------------- | ------------------------------------------------------------------



Check whether the issuer: (1) filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act during the past
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days.  Yes S
No £



Check if the 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 the issuer'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. £



The issuer's revenues for its most recent fiscal year were
$0

---



The aggregate market value of the issuer's voting stock held
as of February 28, 2001 by non-affiliates of the issuer, based upon the average
of the closing bid and asked price on that date, was approximately
$8,911,266.



APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS.



Check whether the registrant 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 court.
YES £
NO £



APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares outstanding of the issuer's common
equity, as of the latest practicable date:  2,970,422 as of February 28,
2001.

Transitional Small Business Disclosure Format (check one):
Yes £
No S

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.



FORM 10-KSB



For the Year Ended February 28, 2001



INDEX



|PART I     |                                                                                                                  | 2
|---------- | ---------------------------------------------------------------------------------------------------------------- | -
|Item 1.    | Description of Business                                                                                          | 2
|Item 2.    | Description of Property                                                                                          | 3
|Item 3.    | Legal Proceedings                                                                                                | 3
|Item 4.    | Submission of Matters to a Vote of Security Holders                                                              | 3
|           |                                                                                                                 
|PART II    |                                                                                                                  | 4
|Item 5.    | Market for Common Equity and Related Stockholder
Matters                                                         | 4
|Item 6.    | Plan of Operations                                                                                               | 5
|Item 7.    | Financial Statements                                                                                             | 5
|Item 8.    | Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure                             | 5
|           |                                                                                                                 
|PART III   |                                                                                                                  | 6
|Item 9.    | Directors, Executive Officers, Promoters and Control Persons;
Compliance With Section 16(a) of the Exchange Act. | 6
|Item 10.   | Executive Compensation                                                                                           | 6
|Item 11.   | Security Ownership of Certain Beneficial Owners and
Management                                                   | 7
|Item 12.   | Certain Relationships and Related Transactions                                                                   | 7
|Item 13.   | Exhibits and Reports on Form 8-K                                                                                 | 7
|           |                                                                                                                 
|SIGNATURES |                                                                                                                  | 8

---



PART I



Item 1.  Description of Business.

Business Development

Bullet Environmental Technologies, Inc. was originally incorporated under the
laws of the State of Delaware on December 18, 1997 under the name of
"Innovin Development Corporation".  We merged with Innovin, Inc., a
Colorado corporation, effective March 5, 1998 with Innovin Development
Corporation being the surviving corporation.  On March 5, 1998, in anticipation
of going into the mining business, we amended our Certificate of Incorporation
to change our name to, "Anglo-Sierra Resources Corp".  On March 15,
1999, in order to reflect our plan to market certain waste treatment technology
under the trade name "Bullet", we again amended our Certificate of
Incorporation to, among other things, change our name to, "Bullet
Environmental Technologies, Inc."

Business of Bullet Environmental Technologies, Inc.

We are a development stage company and are not presently engaged in any
business.  Accordingly, the auditors report on our financial statements notes
that we will require additional financing or future profitability if we are
going to remain as a going concern.  Since our formation, we have explored
entering into various businesses but did not commence operations in any of these
businesses.  The particular businesses explored were:

- From December 18, 1997 until March 5, 1998, we explored
the possibility of developing and constructing wineries.  Our current management
is informed that prior management identified several winery properties in
British Columbia, Canada, negotiated the proposed acquisition of an interest in
those properties, and attempted to raise the funds required to consummate that
acquisition.  Our current management is informed that efforts to raise the
necessary funds were not successful and the proposed transaction was
abandoned.
- From March 5, 1998 through February 26, 1999, we intended
to develop mining properties.  Mining rights in two mining properties in British
Columbia, Canada were acquired and we began efforts to develop those rights and
obtain financing for these efforts.  However, due to a subsequent decline in the
price of gold ore, the high costs to maintain and develop those mineral rights,
and our inability to raise additional capital for these purposes, operation of
these properties never commenced and we disposed of the mining rights on
February 26, 1999.
- In March 1999, we explored developing waste and sewage
treatment systems.  On March 25, 1999, we acquired a license to use certain
waste treatment technology utilizing the trade name "Bullet".  The
license entitled us to commercially use a patent-pending technology for
dissolving gases into liquids at low pressure.  We intended to market the
technology for certain agricultural uses.  Our ability to exploit the licensed
technology in an economically feasible manner relied in part upon the developer
of the technology being available to make technical improvements, advise on the
commercial application of the technology and develop additional related
applications.  Subsequently, the developer decided to focus his efforts on
applications of the technology in the petroleum industry, an area not permitted
by our license.  Accordingly, our exploitation of the technology was no longer
economically feasible.  No significant operations were commenced and the license
to use the "Bullet" technology has since been cancelled.
- In May 1999, we entered into a non-binding letter of
intent to acquire a broker-dealer that is essentially a family-owned and
operated business.  Subsequently, the parties were unable to agree on various
governance and management issues and the letter of intent was
terminated.
- On June 18, 1999, we entered into a second non-binding
letter of intent with Somerset Financial Partners, Inc. ("Somerset"),
a different financial services company.  We subsequently terminated our
negotiations with Somerset, executing a Mutual Termination and Release Agreement
as of April 9, 2000.  We are not currently engaged in any business.
- In June 2000, we attempted to acquire a small group of
four companies that were privately held and involved in media publishing. We
commenced our due diligence and engaged a firm of public accountants to assist
us in this review. All work was ceased in December 2000 due to the general
deterioration in the capital markets and our inability to raise additional
capital to complete the due diligence and the acquisition.

2

---

Reports to Securities Holders

We are a publicly reporting company, filing reports with the Securities and
Exchange Commission ("SEC") as required by Sections 13 and 15 of the
Securities Exchange Act.

A copy of the materials which we have filed with the SEC may be obtained and
copied at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington,
D.C. 20549.  Information on the Public Reference Room may be obtained by calling
the SEC at 1-800-SEC-0330.  The SEC maintains an internet site that contains
reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC at the site
http://www/sec.gov.

Item 2.  Description of Property.

We do not own any real estate, nor invest in any real estate securities.  We
have no office facilities or real property holdings except that we currently
rent office space in Vancouver, British Columbia on a month-to-month basis at a
monthly rental of $1,000.

Item 3.  Legal Proceedings.

There are no pending legal proceedings to which we, our director, or our officer
are a party. We have no knowledge of any pending legal proceedings to which
parties owning 5% of our common stock are a party.  We do not know of any legal
proceedings contemplated or threatened by or against us.

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

No matter was submitted to a vote of security holders,
through the solicitation of proxies or otherwise, during the quarter ended
February 28, 2001.

3

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PART II

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

Market - Until July 31, 1999, our common stock was quoted on the OTC
Bulletin Board, a service maintained by the National Association of Securities
Dealers, Inc. under the symbol, "BLLE".  Since August 1, 1999, our
common stock has been quoted on the "Pink Sheets", a service
maintained by the National Quotation Bureau, LLC.  The approximate number of
holders of the common stock as of February 28, 2001 is 30.  The approximate
number of shares of our common stock outstanding is 2,970,422.

The following table sets forth for the periods indicated the high and low bid
prices for the common stock as reported each quarterly period within the last
two fiscal years on the OTC Bulletin Board and the Pink Sheets.  The prices are
inter-dealer prices, do not include retail mark up, mark down or commission and
may not necessarily represent actual transactions.

|FISCAL QUARTER      | HIGH   | LOW   
|------------------- | ------ | ------
|2/24/99** - 2/28/99 | 6.25   | 3.125 
|3/01/99 - 5/31/99   | 7.00   | 0.3125
|6/01/99 - 8/31/99   | 9.5625 | 5.2344
|9/01/99 - 11/30/99  | 5.25   | 2.50  
|12/01/99 - 12/29/00 | 5.00   | 3.00  
|3/01/00 - 5/31/00   | 4.4063 | 3.00  
|6/01/00 - 8/31/00   | 4.4375 | 3.1875
|9/01/00 - 11/30/00  | 4.6563 | 3.25  
|12/01/00 - 2/28/01  | 4.00   | 2.00  

** Our common stock was first quoted on February 24, 1999

Dividends - During the last two years, we have not paid any dividends, nor do we
anticipate payment of any cash dividends in the foreseeable future.  Although it
is our intention to utilize all available funds for the development of our
business, no restrictions are in place which would limit or restrict our ability
to pay dividends.

Recent Sales of Unregistered Securities - We made no sales of unregistered
securities during the fiscal year ended February 28, 2001.   In December 2000,
we issued 120,000 shares of common stock at an agreed value of  $60,000 for the
settlement of accounts payable totaling $60,000.

4

---

Item 6.  Plan of Operations

Having terminated our negotiations for the acquisition of Somerset, we are not
currently engaged in any business.  We intend to explore all opportunities for
acquisition to reactivate the company.  In December 2000, we issued 120,000
shares of common stock at an agreed value of $60,000 for the settlement of
accounts payable totaling $60,000.

We anticipate that additional capital funds of approximately $400,000 will be
necessary during the next twelve months in order to meet our current
obligations.  We plan to raise the necessary capital through one or more
additional private placements of our common stock.  We have no contingency plans
developed in the event that we are not successful in raising additional funds
through private placements.

Item 7.  Financial Statements and Supplementary Data.

Our financial statements, as indexed in Item 13, are attached to this filing and
incorporated herein by reference.

Item 8.  Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.

We did not have any disagreements on accounting or financial
disclosures with our principal independent accountant during the previous two
years.

5

---

PART III



Item 9.  Directors, Executive Officers, Promoters and Control Persons;
Compliance With Section 16(a) of the Exchange Act.

Our sole director and officer, who will serve until our next annual meeting, or
until his successors are elected or appointed and qualified, is as follows:

|Name        |  | Age |  | Year
Elected |  | Positions Held     
|----------- |  | --- |  | ------------ |  | -------------------
|            |  |     |  |              |  |                    
|Ross Wilmot |  | 57  |  | 2001         |  | Director, President



Ross Wilmot - Mr. Wilmot has served as our sole director since March 29,
2001.  Mr. Wilmot is a Chartered Accountant.  In addition, he serves in the
following capacities of other companies:  Vice-President, Finance and Director
of Intacta Technologies Inc. (from March 23, 1999 to present); Director and
Vice-President, Finance of Multivision Communications Corp. (from August 1995 to
present); Vice-President, Finance of CTF Technologies Inc. (from July 1996 to
present); Vice President, Finance (from June 1996 to present) and Director
(February 1997 to present) of Botex Industries Corp.; Secretary and Director of
Paloma Ventures Ltd. (from April 1996 to present) and Vice-President of Finance
of Plata Minerals Corp. (from January 1995 to present).

We have no other officers or employees.  Given that we have only one director,
no family relationships between such positions exists.  No legal proceedings
have been instituted in the previous five years against our sole director. We
have no knowledge of any legal proceedings against any predecessor director,
officer, or promoter.

Item 10.  Executive Compensation.

Summary Compensation Table. The following table sets
forth certain summary information concerning the compensation paid to the
present director and to the former director for the fiscal year ended February
28, 2001.

|Name and Principal Position                             |  | Fiscal
Year Ended |  | Salary |  | Bonus |  | Other Compensation
|------------------------------------------------------- |  | ----------------- |  | ------ |  | ----- |  | ------------------
|                                                        |  |                   |  |        |  |       |  |                   
|Ross Wilmot,
Director                                   |  | 2/28/01
2/29/00   |  | 0
0    |  | 0
0   |  | 0
0               
|                                                        |  |                   |  |        |  |       |  |                   
|G.W. Norman Wareham,
Former President and Sole Director |  | 2/28/01
2/29/00   |  | 0
0    |  | 0
0   |  | $42,192*
31,030*  

* These amounts were billed by Wareham Management Ltd. for
services provided by Mr. G.W. Norman Wareham.

Option/SAR Grants.  We have not granted any options or
stock appreciation rights to our officers or directors during the last fiscal
year.

Aggregate Option/SAR Exercises. No stock options or
stock appreciation rights have been exercised in the last fiscal year.

Long Term Incentive Plan Awards. No long term
incentive plans have been awarded.

Compensation of Directors. No direct compensation to
our director was paid or authorized by our board of directors during the fiscal
year ended February 28, 2001.

Employment Contracts And Termination Of Employment. We
have not entered into any employment contracts.  No compensation plan or
arrangement exists which provide for compensation in the event of a termination
or resignation of our president.

Report on Repricing of Options/SARS. No options or
stock appreciation rights have been granted to our directors or officers.

6

---

Item 11.  Security Ownership of Certain Beneficial Owners and
Management.

Security Ownership of Certain Beneficial Owners.  The
following table provides information regarding record owners of at least five
percent of our outstanding common stock:



|Title of Class |  | Name and Address                                                                            |  | Number of Shares Owned
as of February 28, 2001 |  | % of Class
|-------------- |  | ------------------------------------------------------------------------------------------- |  | ---------------------------------------------- |  | ----------
|               |  |                                                                                             |  |                                                |  |           
|Common         |  | Millner Finance Limited
c/o EBC Trust Corporation
6 Boulevard Des Moulins
Monaco,  98000    |  | 200,000                                        |  | 6.7       
|               |  |                                                                                             |  |                                                |  |           
|Commons        |  | Circuit Enterprises Limited
c/o EBC Trust Corporation
6 Boulevard Des Moulins
Monaco, 98000 |  | 200,000                                        |  | 6.7       
|               |  |                                                                                             |  |                                                |  |           
|Common         |  | Mabey Investments Limited
c/o EBC Trust Corporation
6 Boulevard Des Moulins
Monaco, 98000   |  | 200,000                                        |  | 6.7       

Security Ownership of Management.  The following table
provides information regarding the security ownership of our management.



|Title of Class |  | Name and Address                                                             |  | Number of Shares Owned
as of February 28, 2001 |  | % of Class
|-------------- |  | ---------------------------------------------------------------------------- |  | ---------------------------------------------- |  | ----------
|               |  |                                                                              |  |                                                |  |           
|N/A            |  | Ross Wilmot
1177 West Hastings Street
#1818
Vancouver, B.C.
Canada,  V6E 2K3 |  | 0                                              |  | 0         

Item 12.  Certain Relationships and Related
Transactions.

During the fiscal year ended February 28, 2001, we paid $42,192 to Wareham
Management, Ltd., a company controlled by a former director and president, Mr.
G.W. Norman Wareham, for management services provided.  Payment of these
management fees was approved by our board of directors.

Item 13.  Exhibits and Reports on Form 8-K.

F-1         
 Audited Financial Statements
as of February 28, 2001, including audited balance sheet, and audited statements
of income, cash flows, and changes in stockholders' equity.

3 (i) (a)     Certificate of
Incorporation (incorporated by reference to the Form 10-SB filed on September
20, 1999)

(b)     Amendment to Certificate of Incorporation dated
February 20, 1998.  (incorporated by reference to the Form 10-SB filed on
September 20, 1999)

(c)     Certificate of Amendment of Certificate of
Incorporation dated March 15, 1998.  (incorporated by reference to the Form
10-SB filed on September 20, 1999)

3 (ii)        
  Bylaws. (incorporated by reference to the Form 10-SB filed on
September 20, 1999)

7

---

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the
issuer caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|                     |  | BULLET ENVIRONMENTAL TECHNOLOGIES, INC.          
|-------------------- |  | -------------------------------------------------
|                     |  |                                                  
|                     |  | /s/ Ross Wilmot
_________________________________
|                     |  | Ross Wilmot, President                           
|Date:  June 18, 2001 |  |                                                  

8

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BULLET ENVIRONMENTAL TECHNOLOGIES INC.

INDEX TO FINANCIAL STATEMENTS

|Independent Auditors' Report          | F-2
|------------------------------------- | ---
|Balance Sheet                         | F-3
|Statement of Loss and Deficit         | F-4
|Statement of Stockholders' Deficiency | F-5
|Statement of Cash Flows               | F-6
|Notes to the Financial Statements     | F-7

F-1

---

[Letterhead of Davidson & Company]





INDEPENDENT AUDITORS' REPORT



To the Stockholders and Board of Directors of
Bullet Environmental Technologies, Inc.
(A Development Stage Company)

We have audited the accompanying balance sheets
of Bullet Environmental Technologies, Inc. as at February 28, 2001 and February
29, 2000 and the related statements of operations, stockholders' deficiency and
cash flows for the years ended February 28, 2001 and February 29, 2000 and
for the period from start of development stage on March 1, 1999 to February 28,
2001.  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 audits.

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

In our opinion, these financial statements present fairly, in
all material respects, the financial position of the Company as at February 28,
2001 and February 29, 2000 and the results of its operations and its cash flows
for the years ended February 28, 2001 and February 29, 2000 and for the
period from start of development stage on March 1, 1999 to February 28, 2001 in
conformity with generally accepted accounting principles in the United States of
America.

The accompanying financial statements have been prepared
assuming that Bullet Environmental Technologies, Inc. will continue as a going
concern.  As discussed in Note 2 to the financial statements, unless the Company
attains further profitable operations and/or obtains additional financing, there
is substantial doubt about the Company's ability to continue as a going concern.
Management's plans in regards to these matters are discussed in Note 2.  The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.







"DAVIDSON & COMPANY"

|Vancouver, Canada
May 18, 2001 | Chartered Accountants
|------------------------------ | ---------------------



F-2

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
BALANCE SHEETS
(Expressed in United States Dollars)

|                                                                                                                                                                                                     |   | February 28,
    2001 |   |   | February 29,
    2000 |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | --------------------- | - | - | --------------------- | -
|ASSETS                                                                                                                                                                                               |   |                       |   |   |                       |  
|Current                                                                                                                                                                                              |   |                       |   |   |                       |  
|Cash and cash equivalents                                                                                                                                                                            | $ | 583                   |   | $ | 8,377                 |  
|Total
	assets                                                                                                                                                                                        | $ | 583                   |   | $ | 8,377                 |  
|                                                                                                                                                                                                     |   |                       |   |   |                       |  
|LIABILITIES AND
	STOCKHOLDERS' DEFICIENCY                                                                                                                                                            |   |                       |   |   |                       |  
|Current                                                                                                                                                                                              |   |                       |   |   |                       |  
|Accounts payable and accrued liabilities                                                                                                                                                             | $ | 382,328               |   | $ | 215,535               |  
|Notes payable (Note 5)                                                                                                                                                                               |   | 46,364                |   |   | -                     |  
|Due to related party (Note 6)                                                                                                                                                                        |   | 5,093                 |   |   | -                     |  
|Total current liabilities                                                                                                                                                                            |   | 433,785               |   |   | 215,535               |  
|                                                                                                                                                                                                     |   |                       |   |   |                       |  
|Stockholders'
	deficiency                                                                                                                                                                            |   |                       |   |   |                       |  
|Capital stock (Note 7)
              Authorized
                
	  
    30,000,000 common shares, par value of $0.0001
                
	    
    5,000,000 preference shares, par value of $0.0001 |   |                       |   |   |                       |  
|Issued
                
	  
    2,970,422 common shares (2000 - 2,850,422 common shares)                                                                                                             |   | 297                   |   |   | 285                   |  
|Additional paid-in capital                                                                                                                                                                           |   | 1,206,702             |   |   | 1,146,714             |  
|Deficit                                                                                                                                                                                              |   | (316,562              | ) |   | (316,562              | )
|Deficit accumulated during the development stage                                                                                                                                                     |   | (1,325,848            | ) |   | (1,040,097            | )
|Accumulative comprehensive other income                                                                                                                                                              |   | 2,209                 |   |   | 2,502                 |  
|                                                                                                                                                                                                     |   | (433,202              | ) |   | (207,158              | )
|Total liabilities and
    stockholders' deficiency                                                                                                                                                   | $ | 583                   |   | $ | 8,377                 |  

History and organization of the Company (Note 1)Subsequent event(Note 12)

The accompanying notes are an integral part of these financial
statements.

F-3

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Expressed in United States Dollars)

|                                                                   |   | From Start of
    Development
    Stage on
    March 1,
    1999 to
    February 28,
    2001 |   |   | Year Ended
    February 28,
    2001 |   |   | Year Ended
    February 29,
    2000 |  
|------------------------------------------------------------------ | - | --------------------------------------------------------------------------------------------- | - | - | ------------------------------------ | - | - | ------------------------------------ | -
|EXPENSES                                                           |   |                                                                                               |   |   |                                      |   |   |                                      |  
|Bank charges and interest                                          | $ | 2,162                                                                                         |   | $ | 1,745                                |   | $ | 417                                  |  
|Consulting fees                                                    |   | 256,446                                                                                       |   |   | 175,761                              |   |   | 80,685                               |  
|Management fees                                                    |   | 73,222                                                                                        |   |   | 42,192                               |   |   | 31,030                               |  
|Office and miscellaneous                                           |   | 1,549                                                                                         |   |   | -                                    |   |   | 1,549                                |  
|Printing                                                           |   | 17,292                                                                                        |   |   | 4,553                                |   |   | 12,739                               |  
|Professional fees                                                  |   | 516,726                                                                                       |   |   | 47,408                               |   |   | 469,318                              |  
|Rent                                                               |   | 16,695                                                                                        |   |   | -                                    |   |   | 16,695                               |  
|Stock-based compensation                                           |   | 385,700                                                                                       |   |   | -                                    |   |   | 385,700                              |  
|Transfer agent and registrar                                       |   | 6,547                                                                                         |   |   | 2,509                                |   |   | 4,038                                |  
|Travel                                                             |   | 49,509                                                                                        |   |   | 11,583                               |   |   | 37,926                               |  
|Loss for the
	period                                               | $ | (1,325,848                                                                                    | ) | $ | (285,751                             | ) | $ | (1,040,097                           | )
|Basic and
	diluted loss per share                                  |   |                                                                                               |   | $ | (0.10                                | ) | $ | (0.48                                | )
|Weighted
	average number     of shares of common stock outstanding |   |                                                                                               |   |   | 2,875,080                            |   |   | 2,148,831                            |  

The accompanying notes are an integral part of these financial
statements.

F-4

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' DEFICIENCY
(Expressed in United States Dollars)

|                                                                                        | Number
	of
    Common
    Shares |   | Amount |   | Additional
    Paid-in
    Capital |   | Deficit  |   |   | Deficit
    Accumulated
    During the
    Development
    Stage |   |   | Cumulative
    Translation
    Adjustment |   |   | Total      |  
|--------------------------------------------------------------------------------------- | -------------------------------- | - | ------ | - | ---------------------------------- | - | -------- | - | - | ---------------------------------------------------------------- | - | - | ----------------------------------------- | - | - | ---------- | -
|Balance at February 28, 1999                                                            | 150,475                          | $ | 15     | $ | 311,284                            | $ | (316,562 | ) | $ | -                                                                |   | $ | 3,604                                     |   | $ | (1,659     | )
|Shares issued for cash                                                                  | 2,000,000                        |   | 200    |   | 99,800                             |   | -        |   |   | -                                                                |   |   | -                                         |   |   | 100,000    |  
|Shares issued for cash                                                                  | 700,000                          |   | 70     |   | 349,930                            |   | -        |   |   |                                                                  |   |   | -                                         |   |   | 350,000    |  
|Return of shares to treasury 
	  for cancellation                                       | (53                              | ) | -      |   | -                                  |   | -        |   |   | -                                                                |   |   | -                                         |   |   | -          |  
|Stock-based compensation 
	  for options issued to
	  consultants and 
	  non-employees | -                                |   | -      |   | 385,700                            |   | -        |   |   | -                                                                |   |   | -                                         |   |   | 385,700    |  
|Loss for the year                                                                       | -                                |   | -      |   | -                                  |   | -        |   |   | (1,040,097                                                       | ) |   | -                                         |   |   | (1,040,097 | )
|Accumulative comprehensive 
	  other income                                             | -                                |   | -      |   | -                                  |   | -        |   |   | -                                                                |   |   | (1,102                                    | ) |   | (1,102     | )
|Balance at February 29,
	2000                                                           | 2,850,422                        |   | 285    |   | 1,146,714                          |   | (316,562 | ) |   | (1,040,097                                                       | ) |   | 2,502                                     |   |   | (207,158   | )
|Shares issued for settlement of
	debt                                                   | 120,000                          |   | 12     |   | 59,988                             |   | -        |   |   | -                                                                |   |   | -                                         |   |   | 60,000     |  
|Loss for the year                                                                       | -                                |   | -      |   | -                                  |   | -        |   |   | (285,751                                                         | ) |   | -                                         |   |   | (285,751   | )
|Accumulative comprehensive 
	  other income                                             | -                                |   | -      |   | -                                  |   | -        |   |   | -                                                                |   |   | (293                                      | ) |   | (293       | )
|Balance at February 28,
	2001                                                           | 2,970,422                        | $ | 297    | $ | 1,206,702B                         | $ | (316,562 | ) | $ | (1,325,848                                                       | ) | $ | 2,209                                     |   | $ | (433,202   | )

The accompanying notes are an integral part of these financial
statements.

F-5

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.(A Development Stage Company)
STATEMENTS OF CASH FLOWS 
(Expressed in United States Dollars)

|                                                                                  |   | From Start of
    Development
    Stage on
    March 1,
    1999 to
    February 28,
    2001 |   |   | Year Ended
    February 28,
    2001 |   |   | Year Ended
    February 29,
    2000 |  
|--------------------------------------------------------------------------------- | - | --------------------------------------------------------------------------------------------- | - | - | ------------------------------------ | - | - | ------------------------------------ | -
|CASH FLOWS FROM OPERATING ACTIVITIES                                              |   |                                                                                               |   |   |                                      |   |   |                                      |  
|Loss for the period                                                               | $ | (1,325,848                                                                                    | ) | $ | (285,751                             | ) | $ | (1,040,097                           | )
|Adjustments to reconcile loss to net cash
	        used in operating
	activities: |   |                                                                                               |   |   |                                      |   |   |                                      |  
|Stock-based compensation                                                          |   | 385,700                                                                                       |   |   | -                                    |   |   | -                                    |  
|Accrued iinterest on note payable                                                 |   | 1,364                                                                                         |   |   | 1,364                                |   |   | -                                    |  
|Accrued interest on amounts due to related
	party                                 |   | 93                                                                                            |   |   | 93                                   |   |   | -                                    |  
|Changes in other operating assets and liabilities                                 |   |                                                                                               |   |   |                                      |   |   |                                      |  
|Increase in accounts payable and accrued
	liabilities                             |   | 440,342                                                                                       |   |   | 226,793                              |   |   | 213,549                              |  
|Net cash used in operating activities                                             |   | (498,349                                                                                      | ) |   | (57,501                              | ) |   | (440,848                             | )
|CASH FLOWS FROM FINANCING ACTIVITIES                                              |   |                                                                                               |   |   |                                      |   |   |                                      |  
|Issuance of capital stock for cash                                                |   | 450,000                                                                                       |   |   | -                                    |   |   | 450,000                              |  
|Note payable                                                                      |   | 45,000                                                                                        |   |   | 45,000                               |   |   | -                                    |  
|Due to related party                                                              |   | 5,000                                                                                         |   |   | 5,000                                |   |   | -                                    |  
|Net cash provided by financing activities                                         |   | 500,000                                                                                       |   |   | 50,000                               |   |   | 450,000                              |  
|Change in cash and cash
	equivalents during the period                            |   | 1,651                                                                                         |   |   | (7,501                               | ) |   | 9,152                                |  
|Effect of exchange rate
	changes on cash and cash equivalents                     |   | (1,395                                                                                        | ) |   | (293                                 | ) |   | (1,102                               | )
|Net change in cash and cash
	equivalents during the period                        |   | 256                                                                                           |   |   | (7,794                               | ) |   | 8,050                                |  
|Cash and cash
	equivalents, beginning of period                                   |   | 327                                                                                           |   |   | 8,377                                |   |   | 327                                  |  
|Cash and cash equivalents,
	end of period                                         | $ | 583                                                                                           |   | $ | 583                                  |   | $ | 8,377                                |  
|Cash paid during the period for:                                                  |   |                                                                                               |   |   |                                      |   |   |                                      |  
|Interest expense                                                                  | $ | -                                                                                             |   | $ | -                                    |   | $ | -                                    |  
|Income taxes                                                                      | $ | -                                                                                             |   | $ | -                                    |   | $ | -                                    |  

Supplemental disclosure for cash flows (Note 10)

The accompanying notes are an integral part of these financial
statements.

F-6

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS 
(Expressed in United States Dollars)
FEBRUARY 28, 2001

1.          HISTORY AND
ORGANIZATION OF THE COMPANY

The Company was incorporated in Delaware on December 18,
1997.  The Company was considered in the exploration stage until February 1999
at which time it ceased being an exploration stage Company.



In March 1999, the Company changed its name from Anglo-Sierra
Resources Corp. to Bullet Environmental Technologies, Inc. and is considered a
development stage company in accordance with Statement of Financial Accounting
Standards No. 7, "Accounting and Reporting by Development Stage
Enterprises".

2.          GOING CONCERN

The Company's financial statements are prepared using the
generally accepted accounting principles applicable to a going concern, which
contemplates the realization of assets and liquidation of liabilities in the
normal course of business.  However, the Company has no current source of
revenue.  Without realization of additional capital, it would be unlikely for
the Company to continue as a going concern.  It is management's plan to seek
additional capital through equity financings.



|                                                 | February 28,
2001 | February 29,
2000
|------------------------------------------------ | ----------------- | -----------------
|                                                 |                   |                  
|Deficit accumulated during the development
stage | $	(1,325,848)     | $	(1,040,097)    
|Working capital (deficiency)                     | (433,202)         | (207,158)        

3.          SIGNIFICANT
ACCOUNTING POLICIES

Cash and cash equivalents

Cash and cash equivalents include highly liquid investments
with original maturities of three months or less.



Estimates

The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the 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.  Actual results could differ from those
estimates.

Foreign currency translation

The Company has determined that the functional currency of
its operations is the local currency, the Canadian dollar.  In accordance with
Statement of Financial Accounting Standards No. 52, "Foreign Currency
Translation", the assets and liabilities denominated in foreign currency are
translated into U.S. dollars at the year-end exchange rates.  Revenue and
expenses are translated at the rates of exchange prevailing on the dates such
items are recognized in earnings.  Related exchange gains and losses are
included in a separate component of shareholders' equity under cumulative
translation adjustment.  Exchange gains and losses resulting from foreign
currency transactions are included in income for the year.

F-7

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
FEBRUARY 28, 2001

3.          SIGNIFICANT
ACCOUNTING POLICIES (cont'd...)

Stock based compensation

Statement of Financial Accounting Standards No. 123 ("SFAS
123"), "Accounting for Stock-Based Compensation", encourages, but does not
require, companies to record compensation cost for stock-based employee
compensation plans at fair value.  The Company has chosen to account for
stock-based compensation using Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees".  Accordingly, compensation cost for
stock options is measured as the excess, if any, of the quoted market price of
the Company's stock at the date of the grant over the amount an employee is
required to pay for the stock.

The Company accounts for stock-based compensation issued to
non-employees in accordance with the provisions of SFAS 123 and the Emerging
Issues Task Force consensus in Issue No. 96-18 ("EITF 96-18"), "Accounting for
Equity Instruments that are Issued to Other Than Employees for Acquiring or in
Conjunction with Selling, Goods or Services".

Accounting for derivative instruments and hedging
activities

In June 1998, the Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standard No. 133
"Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133")
which establishes accounting and reporting standards for derivative instruments
and for hedging activities.  SFAS 133 is effective for all fiscal quarters of
fiscal years beginning after June 15, 1999.  In June 1999, the FASB issued SFAS
137 to defer the effective date of SFAS 133 to fiscal quarters of fiscal years
beginning after June 15, 1999.  In June 2000, the FASB issued Statement of
Financial Accounting Standard No. 138 which is a significant amendment to SFAS
133. The Company does not anticipate that the adoption of these statements will
have a significant impact on its financial statements.

Income taxes

Income taxes are provided in accordance with Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes".  A
deferred tax asset or liability is recorded for all temporary differences
between financial and tax reporting and net operating loss carryforwards.
Deferred tax expenses (benefit) result from the net change during the year of
deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance
when, in the opinion of management, it is more likely than not that some portion
or all of the deferred tax assets will not be realized.  Deferred tax assets and
liabilities are adjusted for the effects of changes in tax laws and rates on the
date of enactment.

Loss per share

Statement of Financial Accounting Standards No. 128,
"Earnings Per Share" requires basic and diluted earnings per share to be
presented.  Basic earnings per share is computed by dividing income available to
common shareholders by the weighted average number of shares of common stock
outstanding during the period.  Diluted earnings per share takes into
consideration shares of common stock outstanding (computed under basic earnings
per share) and potentially dilutive shares of common stock.

F-8

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
FEBRUARY 28, 2001

3.          SIGNIFICANT
ACCOUNTING POLICIES (cont'd...)

Disclosure about segments of an enterprise and related
information

Statement of Financial Accounting Standards No. 131
("SFAS 131"), "Disclosure About Segments of an Enterprise and Related
Information" requires use of the "management approach" model for segment
reporting.  The management approach model is based on the way a company's
management organizes segments within the company for making operating decisions
and assessing performance.  Reportable segments are based on products and
services, geography, legal structure, management structure, or any other manner
in which management disaggregates a company.   Currently, SFAS 131 has no effect
on the Company's financial statements as substantially all of the Company's
operations are conducted in one industry segment in the United States.

4.          FINANCIAL
INSTRUMENTS

The Company's financial instruments consist of cash and cash
equivalents, accounts payable, notes payable and amounts due to related party.
Unless otherwise noted, it is management's opinion that the Company is not
exposed to significant interest, currency or credit risks arising from these
financial instruments.  The fair value of these financial instruments
approximate their carrying values, unless otherwise noted.

5.          NOTES
PAYABLE

|                 | 2001     | 2000
|---------------- | -------- | ----
|                 |          |     
|Principal        | $	45,000 | $	- 
|Accrued interest | 1,364    | -   
|                 |          |     
|                 | $	46,364 | $	- 

The notes payable are unsecured, bear interest at 6% per
annum and are due on demand.

6.          DUE TO RELATED
PARTY

|                 | 2001    | 2000
|---------------- | ------- | ----
|                 |         |     
|Principal        | $	5,000 | $	- 
|Accrued interest | 93      | -   
|                 |         |     
|                 | $	5,093 | $	- 



Amounts due to a company controlled by a former director of
the Company are unsecured, bear interest at 6% per annum and are due on
demand.



F-9

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
FEBRUARY 28, 2001

7.          CAPITAL
STOCK

Common stock

In March 1999, the Company implemented a 50:1 reverse stock
split.  Fractional shares totalling 53 shares of common stock were returned to
treasury for cancellation in conjunction with the reverse stock split.

In March 1999, the Company issued 2,000,000 shares of common
stock for cash proceeds of $100,000.

In February 2000, the Company issued 700,000 shares of common
stock for cash proceeds of $350,000.

In December 2000, the Company issued 120,000 shares of common
stock at an agreed value of $60,000 for the settlement of accounts payable
totalling $60,000.

Additional paid-in capital

The excess of proceeds received for common shares over their
par value of $0.0001, less share issue costs, is credited to additional paid-in
capital.

Reverse stock split

Effective March 15, 1999, the Company implemented a 50:1
reverse stock split where each issued and outstanding share of the Company's
common stock was converted to 0.02 shares of the Company's common stock.
Stockholders' equity has been restated to give retroactive recognition of the
reverse stock split for all periods presented by reclassifying from common
shares to additional paid-in capital the par value of converted shares arising
from the split.  In addition, all references to number of shares and per share
amounts of common shares have been restated to reflect the reverse stock
split.

Non-vested stock options

During the previous year, the Company issued options to
consultants and non-employees to acquire up to 84,504 shares of common stock of
the Company at an exercise price of $0.50 per share.  The options are
exerciseable for a period of five years from the date that is 366 days after the
completion of a public share offering by the Company.

F-10

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
FEBRUARY 28, 2001

8.          STOCK BASED
COMPENSATION EXPENSE

SFAS 123, "Accounting for Stock-Based Compensation",
encourages but does not require companies to record compensation cost for
stock-based employee compensation plans at fair value.  The Company has chosen
to account for stock-based compensation using Accounting Principles Board
Opinion No. 25, "Accounting for Stock Issued to Employees".  Accordingly,
compensation cost for stock options is measured as the excess, if any, of quoted
market price of the Company's stock at the date of grant over the option
price.

The Company accounts for stock issued to non-employees in
accordance with the provisions of SFAS 123 and the Emerging Issues Task Force
consensus in Issue No. 96-18, "Accounting for Equity Instruments that are Issued
to Other Than Employees for Acquiring or in Conjunction with Selling, Goods or
Services".

Following is a summary of the stock option activity:

|                                                       | Number
of Shares | Weighted
Average
Exercise
Price
|------------------------------------------------------ | ---------------- | -------------------------------
|                                                       |                  |                                
|Outstanding at February 28, 1999                       | -                | $    	-                        
|Granted                                                | 84,504           | 0.50                           
|Forfeited                                              | -                | -                              
|Exercised                                              | -                | -                              
|Outstanding at February 29, 2000 and
February 28, 2001 | 84,504           | $  0.50                        

The fair value of options granted to non-employees during the
year ended February 29, 2000 was approximately $4.56 per share.

Following is a summary of the status of options outstanding
at February 28, 2001:

|               | Outstanding Options |                                             | Exercisable Options            
|-------------- | ------------------- | ------------------------------------------- | -------------------------------
|Exercise Price | Number              | Weighted
Average
Remaining
Contractual
Life | Weighted
Average
Exercise
Price
|               |                     |                                             |                                
|$ 0.50         | 84,504              | 5.00                                        | $  0.50                        



F-11

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
FEBRUARY 28, 2001

8.          STOCK BASED
COMPENSATION EXPENSE (cont'd...)

Compensation

The Company granted 84,504 options to consultants and
non-employees during the previous fiscal year which were accounted for under
SFAS 123 and EITF 96-18.  Accordingly, using the Black-Scholes option pricing
model, the options were marked to fair value through charges to operations as
stock-based compensation.  Stock-based compensation recognized during the
previous year ended February 29, 2000 was $385,700.  This amount can be
allocated to the other expense categories in the accompanying statements of
operations as consulting fees of $255,600 and professional fees of $130,100.

The assumptions used in calculating the fair value of options
granted using the Black-Scholes option pricing model are as follows:

|                             | February 28,
2001 | February 29,
2000
|---------------------------- | ----------------- | -----------------
|                             |                   |                  
|Risk-free interest rate      | -                 | 7.00%            
|Expected life of the options | -                 | 2 years          
|Expected volatility          | -                 | 194%             
|Expected dividend yield      | -                 | -                

9.          RELATED PARTY
TRANSACTIONS

During the year ended February 28, 2001, the Company entered
into the following transactions with related parties:

a)	Paid management fees of $42,192 (2000 - $31,030) to a
company controlled by a former director of the Company.

b)	Paid consulting fees of $Nil (2000 - $685) to a former
director of the Company.

These transactions were in the normal course of operations
and were measured at the exchange value which represented the amount of
consideration established and agreed to by the related parties.

Included in accounts payable as at February 28, 2001 is
$24,016 (2000 - $Nil) due to a company controlled by a former director of the
Company.

10.          SUPPLEMENTAL
DISCLOSURE FOR CASH FLOWS

The significant non-cash transaction for the year ended
February 28, 2001 consisted of the Company issuing 120,000 shares of common
stock in the amount of $60,000 for the settlement of accounts payable.

There were no significant non-cash transactions for the year
ended February 29, 2000.

F-12

---

BULLET ENVIRONMENTAL TECHNOLOGIES, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
(Expressed in United States Dollars)
FEBRUARY 28, 2001

11.          INCOME
TAXES

The Company's total deferred tax asset is as follows:

|                                               | February 28,
2001 | February 29,
2000
|---------------------------------------------- | ----------------- | -----------------
|                                               |                   |                  
|Tax benefit of net operating loss
carryforward | $	245,000         | $	98,000         
|Valuation allowance                            | (245,000)         | (98,000)         
|                                               |                   |                  
|                                               | $	-               | $	-              

The Company has net operating loss carryforwards of
approximately $700,000 (2000 - $280,000).  The valuation allowance increased to
$245,000 from $98,000 during the year ended February 28, 2001 since the
realization of the operating loss carryforwards are doubtful.  It is reasonably
possible that the Company's estimate of the valuation allowance will change.

The operating loss carryforwards will expire beginning in
2018.

12.          SUBSEQUENT
EVENT

Subsequent to February 28, 2001, the Company received funds
of $150,000 in exchange for a note payable in the same amount.  The note payable
is unsecured, bears interest at 10% per annum and is due on demand.

F-13