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

                                    FORM 10-Q

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

                  For the quarterly period ended March 31, 2008
                                       or
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

              For the transition from ____________ to ____________.

                         Commission File Number: 0-32323


                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
        (Exact name of small business issuer as specified in its charter)

            Nevada                                               20-1217659
(State or other Jurisdiction of                               (I.R.S. Employer
 Incorporation or Organization)                              Identification No.)

  1151 Harbor Bay Parkway, Suite 202
             Alameda, CA                                           94502
(Address of principal executive offices)                         (Zip code)

                    Issuer's telephone number: (510) 814-3778

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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 [X] No [ ]

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated filer, a non-accelerated  filer, or a smaller reporting company. See
the definitions of "large accelerated  filer,"  "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]                        Accelerated filer [ ]
Non-accelerated filer [ ]                          Smaller reporting company [X]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

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

Indicate by check mark 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 a court. Yes [ ] 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 May 7,  2008,  there  were
183,648,973  outstanding  shares of the  Registrant's  Common  Stock,  $.001 par
value.
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                               Report on Form 10-Q

                      For the Quarter Ended March 31, 2008

                                      INDEX
                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION...............................................  3

     Item 1.  Financial Statements...........................................  3

          Condensed Consolidated Balance Sheet ..............................  3

          Condensed Consolidated Statements of Operations....................  4

          Condensed Consolidated Statements of Cash Flows....................  5

          Notes..............................................................  7

     Item 2.  Management's Discussion and Analysis or Plan of Operation...... 24

     Item 3.  Quantitative and Qualitative Disclosures about Market Risk..... 29

     Item 4.  Controls and Procedures........................................ 29

PART II - OTHER INFORMATION.................................................. 30

     Item 1.  Legal Proceedings.............................................. 30

     Item 1A. Risk Factors................................................... 30

     Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.... 30

     Item 3.  Defaults Upon Senior Securities................................ 30

     Item 4.  Submission of Matters to a Vote of Security Holders............ 30

     Item 5.  Other Information.............................................. 30

     Item 6.  Exhibits....................................................... 31

SIGNATURES... ............................................................... 32

                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                              March 31,            December 31,
                                                                                2008                  2007
                                                                             -----------           -----------
                                                                             (Unaudited)
<S>                                                                          <C>                   <C>
                                     ASSETS
Cash                                                                         $    17,064           $    32,970
Deposit on Suining Rosetop Project                                                    --               350,000
Other current assets                                                              15,425                 1,765
                                                                             -----------           -----------
Total current assets                                                              32,489               384,735
                                                                             -----------           -----------
Fixed assets, net of depreciation                                                  2,032                 2,766
Other assets                                                                       5,398                 5,380
Goodwill                                                                       1,303,277             1,303,277
                                                                             -----------           -----------
Total assets                                                                 $ 1,343,196           $ 1,696,158
                                                                             ===========           ===========

                       LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES
  Accounts payable and accrued expenses                                      $   108,607           $    40,825
  Accrued expenses - related parties                                              67,891                77,426
  Notes payable, net                                                               9,642                    --
  Notes payable to shareholders, net                                             180,420               135,253
                                                                             -----------           -----------
Total current liabilities                                                        366,560               253,504
                                                                             -----------           -----------

Long term notes payable, net                                                      78,303               115,834
Long term notes payable to shareholders, net                                     146,541                23,103
                                                                             -----------           -----------
Total long term liabilities                                                      224,844               138,937
                                                                             -----------           -----------
Total liabilities                                                                591,404               392,441
                                                                             -----------           -----------
COMMITMENT & CONTINGENCY                                                              --                    --

MINORITY INTEREST                                                                     --                    --

STOCKHOLDERS' EQUITY
  Preferred A stock, $250 par value, 10,000 shares authorized;
   96 shares issued and outstanding                                               24,000                24,000
  Preferred C stock, no par value, 1,000,000 shares authorized;
   200,000 shares issued and outstanding                                          10,000                10,000
  Preferred D stock,  $.01 par value, 10,000,000 shares authorized;
   50,000 shares issued and outstanding                                              500                   500
  Preferred E stock, $.01 par value, 10,000,000 shares authorized;
   0 and 350,000 shares issued and outstanding                                        --                 3,500
  Common stock; $.001 par value, 500,000,000 shares authorized;
   113,093,182 and 68,198,914 issued and outstanding                             113,094                68,199
  Additional paid-in capital                                                   7,623,969             7,773,064
  Stock payable                                                                   35,000                    --
  Accumulated deficit - Prior to reentering development stage                 (5,534,336)           (5,534,336)
  Accumulated deficit - From inception of reentering development
   stage on 4/1/2007                                                          (1,520,368)           (1,041,137)
  Other comprehensive income                                                         (67)                  (73)
                                                                             -----------           -----------
Total stockholders' equity                                                       751,792             1,303,717
                                                                             -----------           -----------
Total liabilities and stockholders' equity                                   $ 1,343,196           $ 1,696,158
                                                                             ===========           ===========
</TABLE>
     See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                    UNAUDITED

<TABLE>
<CAPTION>
                                                                                                        Cumulative
                                                             Three Months Ended March 31,            Since Reentering
                                                         -----------------------------------        Deveplopment Stage
                                                             2008                   2007           4/1/2007 - 3/31/2008
                                                         ------------           ------------       --------------------
<S>                                                      <C>                    <C>                    <C>
Retail sales                                             $         --           $         --           $         --
Cost of sales                                                      --                     --                     --
                                                         ------------           ------------           ------------
Gross profit                                                       --                     --                     --
                                                         ------------           ------------           ------------
Operating expenses:
  Selling, general and administrative                         215,949                     --                882,556
  Depreciation and amortization                                   735                     --                  4,239
                                                         ------------           ------------           ------------
      Total operating expenses                                216,684                     --                886,795
                                                         ------------           ------------           ------------
Operating loss                                               (216,684)                    --               (886,795)
                                                         ------------           ------------           ------------
Other income (expense):
  Interest income                                                  19                     --                    376
  Interest expense                                           (204,116)                    --               (513,701)
  Lost on settlement                                          (23,500)                    --                (23,500)
  Loss on Investment                                          (35,000)                    --                (35,000)
  Loss on extinguishment of debt                                   --                     --                (70,843)
  Minority interest in net loss of subsidiary                      --                     --                 15,000
  Other income (expense)                                           50                     --                  3,100
                                                         ------------           ------------           ------------
      Total other income (expense)                           (262,547)                    --               (624,568)
                                                         ------------           ------------           ------------
Loss from continuing operations                              (479,231)                    --             (1,511,363)
                                                         ------------           ------------           ------------
Discontinued operations:
  Loss from operations of discontinued business                    --               (179,315)               (20,063)
  Income on disposal of assets                                     --                  9,670                 61,058
                                                         ------------           ------------           ------------
Income (loss) on discontinued operations                           --               (169,645)                40,995
                                                         ------------           ------------           ------------
Net loss                                                     (479,231)              (169,645)            (1,470,368)

Preferred dividend                                                 --                     --                (50,000)
                                                         ------------           ------------           ------------
Net loss attributable to common shareholders                 (479,231)              (169,645)            (1,520,368)
                                                         ------------           ------------           ------------
Other comprehensive income
  Foreign Currency Translation                                      6                     --                    (67)
                                                         ------------           ------------           ------------
Comprehensive loss                                       $   (479,225)          $   (169,645)          $ (1,520,435)
                                                         ============           ============           ============
Net loss per common share - basic and diluted
  Continuing operations                                  $      (0.01)          $         --
                                                         ============           ============
  Discontinued operations                                $         --           $      (0.05)
                                                         ============           ============
  Net loss per common share                              $      (0.01)          $      (0.05)
                                                         ============           ============
Weighted average common shares outstanding:
  Basic and Diluted                                        87,977,281              3,707,087
                                                         ============           ============
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

                                       4
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    UNAUDITED

<TABLE>
<CAPTION>
                                                                                                             Cumulative
                                                                      Three Months Ended March 31,        Since Reentering
                                                                     -----------------------------       Deveplopment Stage
                                                                        2008              2007          4/1/2007 - 3/31/2008
                                                                     -----------       -----------      --------------------
<S>                                                                   <C>                    <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss from continuing operations                                $  (479,231)      $        --           $(1,511,363)
  Adjustments to reconcile net income to net cash
   provided by operating activities:
     Depreciation                                                            734                --                 4,239
     Notes issued for services                                            40,000                --                40,000
     Amortization of debt discounts                                       33,862                --               117,869
     Loss on extinguishment of debt                                           --                --               (70,843)
     Loss on Investment                                                   35,000                --                35,000
     Interest expense associated with beneficial conversion feature      149,856                --               433,777
     Director stock based compensation                                        --                --                50,000
     Common stock issued for services                                         --                --               318,169
     Common stock issued for settlement                                   13,500                --                13,500
     Common stock issued for interest payment on debt                      8,874                --                26,310
     Minority interest in net loss of subsidiary                              --                --               (15,000)
  Changes in assets and liabilities:
     Prepaid expenses                                                     (2,878)               --                (6,483)
     Accounts payable and accrued expenses                                85,159                --               125,092
     Accrued expenses - related parties                                    5,465                --                  (535)
                                                                     -----------       -----------           -----------
          Net cash used in continuing operations                        (109,659)               --              (440,268)
          Net income (loss) from continuing operations                        --          (169,645)               40,995
          Net cash provided by (used in) discontinued operations              --             1,480               (83,796)
                                                                     -----------       -----------           -----------
          Net cash used in operating activities                         (109,659)         (168,165)             (483,069)
                                                                     -----------       -----------           -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Net cash used in continuing operations                                      --                --                    --
  Net cash provided by discontinued operations                                --            15,000                    --
                                                                     -----------       -----------           -----------
          Net cash provided by in investing activities                        --            15,000                    --
                                                                     -----------       -----------           -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from related party notes payable                               22,500                --               102,500
  Proceeds from notes payable                                             72,500           202,470               326,030
  Repayments of notes payable                                             (1,253)          (20,000)               (1,253)
  Proceeds from issuance of common stock                                      --            20,000                 1,464
  Proceeds from issuance of common stock for asset purchase                   --                --                 6,206
  Proceeds from exercise of stock options                                     --             4,375                 4,375
                                                                     -----------       -----------           -----------
          Net cash provided by financing activities                       93,747           206,845               439,322
                                                                     -----------       -----------           -----------

     See accompanying notes to condensed consolidated financial statements.
</TABLE>

                                       5
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    UNAUDITED
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                             Cumulative
                                                                      Three Months Ended March 31,        Since Reentering
                                                                     -----------------------------       Deveplopment Stage
                                                                        2008              2007          4/1/2007 - 3/31/2008
                                                                     -----------       -----------      --------------------
<S>                                                                   <C>                    <C>                    <C>
Effect of exchange rate changes on cash                                        6                --                   (67)

Cash and cash equivalents:
  Increase (decreae) in cash                                             (15,906)           53,680               (43,814)

CASH, beginning of period                                                 32,970             7,200                60,878
                                                                     -----------       -----------           -----------
CASH, end of period                                                  $    17,064       $    60,880           $    17,064
                                                                     ===========       ===========           ===========
SUPPLEMENTAL DISCLOSURES:
  Cash paid for interest                                             $        95       $        --           $        95
                                                                     ===========       ===========           ===========
  Cash paid for income taxes                                         $        --       $        --           $        --
                                                                     ===========       ===========           ===========
Non-cash discontinued operation activities
  Employee stock based compensation                                  $        --       $        --           $    30,698
  Common stock issued to third parties for services                  $        --       $        --           $    11,133
  Issuance of common stock for debt & accrued expenses               $        --       $     5,000           $    36,534
Non-cash financing and investing activities:
  Issuance of Note for accrued expenses                              $    40,000       $        --           $    83,798
  Common stock issued for services                                   $    44,283       $        --           $    44,283
  Issuance of common stock for payment of debt                       $    50,037       $        --           $   145,536
  Issuance of common stock for settlement                            $    13,500       $        --           $    13,500
  Issuance of Preferred E Stock for deposit on the Rosetop Project   $        --       $        --           $   350,000
  Cancelation of Rosedop project and related Preferred E Stock       $  (350,000)      $        --           $  (350,000)
  Issuance of common stock for Purchase of Company                   $        --       $        --           $ 1,300,000
</TABLE>

During 2007,  the Company issued common stock valued at $1,300,000 in connection
with the acquisition of International  Building  Technologies,  Inc. The Company
received assets valued at $15,953,  assumed  liabilities of $3,947, and minority
interest of $15,000, resulting in Goodwill of $1,302,994.

      See accompanying notes to condensed consolidated financial statements

                                       6
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


NOTE 1: ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

International Building Technologies Group, Inc. (OTCBB: INBG) (the "Company") is
a developer and provider of a panel based building  technology which can be used
in a variety of ways to erect  buildings up to six stories tall without the need
of a  traditional  wood or steel  frame  structure.  The  panel  based  building
technology  is also  versatile  in its use  and  can be  used to  create  unique
architectural  design  elements.  Management  believes that the Company's  panel
based building  technology allows for the rapid, cost effective  construction of
residential,  commercial,  and high-rise  buildings utilizing materials that are
greater in  strength  and  appearance,  economical  and  eco-friendly.  Based on
standard  building  codes  prescribed by  authorities  worldwide,  the Company's
technology  will meet and exceed the  minimum  requirements.  The  Company  also
provides  customers  with  architectural  design,  panel  supply,   installation
supervision,  engineering,  training,  and  technical  support.  The Company has
offices in Shanghai, China and Alameda, California.

BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared by the Company  pursuant to the rules and regulations of the Securities
and Exchange  Commission.  Certain information and footnote disclosures normally
included in financial  statements prepared in accordance with generally accepted
accounting  principles  have been  condensed or omitted in accordance  with such
rules and  regulations.  The  information  furnished  in the  interim  condensed
consolidated  financial  statements  includes normal  recurring  adjustments and
reflects all adjustments, which, in the opinion of management, are necessary for
a fair presentation of such financial  statements.  Although management believes
the disclosures  and information  presented are adequate to make the information
not misleading, these interim condensed consolidated financial statements should
be  read in  conjunction  with  the  Company's  most  recent  audited  financial
statements and notes thereto  included in its December 31, 2007 Annual Report on
Form  10-KSB.  Operating  results  for the period  ended  March 31, 2008 are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2008.

TRANSLATION OF NON-U.S. CURRENCY AMOUNTS

Assets and liabilities of non-U.S. subsidiaries that operate in a local currency
environment are translated to U.S.  dollars at year-end  exchange rates.  Income
and  expense  items  are  translated  at  weighted-average   rates  of  exchange
prevailing  during  the year.  Translation  adjustments  are  recorded  in Other
Comprehensive  Income  not  affecting  retained  earnings  within  Stockholders'
equity.

Inventories,   plant,  rental  machines  and  other   property-net,   and  other
non-monetary  assets and liabilities of non-U.S.  subsidiaries and branches that
operate in U.S. dollars, or whose economic  environment is highly  inflationary,
are  translated  at  approximate  exchange  rates  prevailing  when the  company
acquired  the  assets or  liabilities.  All other  assets  and  liabilities  are
translated at the quarter ended March 31, 2008 exchange rates. Cost of sales and
depreciation  are translated at historical  exchange rates. All other income and
expense  items  are  translated  at  the  weighted-average   rates  of  exchange
prevailing during the year.

Current and historical exchange rates are not indicative of what future exchange
rates will be and should not be construed as such.

                                       7
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


Relevant  exchange rates used in the preparation of the financial  statements of
the  subsidiary  are as follows for the quarter ended March 31, 2008 (denoted in
Hong Kong dollars per one U.S. dollar):

                                                       2007
                                                    -----------
     Current exchange rate at March 31,             $7.7819 HKD
     Weighted average exchange rate                 $7.7943 HKD

There were no U.S.  subsidiaries that operate in a local currency environment in
the respective quarter ended March 31, 2008.

SIGNIFICANT ACCOUNTING POLICIES

Significant  accounting  policies  have not changed  from the  Company's  Annual
Report on Form 10-KSB for the year ended December 31, 2007.

NOTE 2: MATERIAL EVENTS

RE-ENTERING DEVELOPMENT STAGE

On April 1, 2007, the company  re-entered the development stage. The company has
changed  from  the  motor  sports  business  to the  business  of  building  and
construction of lightweight  panels. The Company has devoted most of its efforts
to establishing a new business, raising capital, establishing sources of supply,
acquiring property,  plant, equipment,  and other operating assets. All activity
during  fiscal  year  2007  related  to  the  motor  sports  business  has  been
reclassified to present the operations as discontinued  operations.  Fiscal year
2006 financial  statements have also been reclassified to present the operations
of the motor sports  business as  discontinued  operations.  Please see Note 7 -
Discontinued Operations.

CHANGE OF CORPORATE NAME

On May 21, 2007, the Board of Directors and the majority of the  shareholders of
the Company passed a resolution to amend the Company's articles of incorporation
to change its name to  International  Building  Technologies  Group,  Inc.  Such
amendment became effective on August 6, 2007.

RESCISSION OF ASSET SALE AND PURCHASE AGREEMENT OF THE ROSE TOP GRADE PROJECT

Effective  March 31, 2008,  signed April 23, 2008, the Company and Suining Yinfa
Construction  and  Engineering  Co., Ltd., both agreed that it was in their best
interest to rescind the Asset Sale and Purchase  Agreement of the Rose Top Grade
Project  due to the  underperformance  of the  assets and the  inability  of the
sellers to record  transactions as necessary to permit  preparation of financial
statements  in conformity  with US GAAP.  Please see Note 8 -  Acquisitions  and
Investments.

NOTE 3: GOING CONCERN

The Company's  financial  statements  are prepared using  accounting  principles
generally  accepted  in the  United  States  of  America  applicable  to a going
concern,  which  contemplates  the  realization  of assets and  satisfaction  of
liabilities in the normal course of business.  The Company's  continuation  as a
going  concern is dependent  upon its ability to generate  sufficient  cash flow
from  operations  to meet  its  obligations  on a  timely  basis  and/or  obtain
financing as may be required. As of March 31, 2008, the Company has incurred net
losses from  operations  prior to reentering  the  development  stage and has an
accumulated  deficit of $5,534,336.  Since  reentering the development  stage on
April 1, 2007, the Company has an accumulated  deficit of $1,520,368 as of March
31, 2008. The Company has a working  capital deficit of $334,071 as of March 31,
2008.

                                       8
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


During the next 12 months,  the Company's  foreseeable  cash  requirements  will
relate to continual  development of the operations of its business,  maintaining
its good  standing  and making the  requisite  filings with the  Securities  and
Exchange  Commission,  and the payment of expenses  associated with reviewing or
investigating any potential business ventures. The Company may experience a cash
shortfall  and be required to raise  additional  capital.  Historically,  it has
relied  upon  internally  generated  funds and funds  from the sale of shares of
stock and loans from its  shareholders  and  private  investors  to finance  its
operations and growth.  Management may raise  additional  capital through future
public or private offerings of the Company's stock or through loans from private
investors,  although  there can be no  assurance  that it will be able to obtain
such financing. The Company's failure to do so could have a material and adverse
affect  upon it and its  shareholders.  However,  the  Company is  strategically
positioning  itself with contracts and business  ventures that can significantly
contribute  to its  bottom  line and the  continuous  development  of its  panel
business.

NOTE 4: NOTES PAYABLE & DEBT DISCOUNTS

The unaudited  chart below  summarizes the Notes Payable & Debt Discounts of the
Company as of March 31, 2008.  This chart is to be reviewed in conjunction  with
the details following the chart.

<TABLE>
<CAPTION>
                                                                                                    Amount
Terms                                                                                             Unaudited
-----                                                                                             ---------
<S>                                                                                              <C>
SHORT TERM NOTES PAYABLE TO SHAREHOLDERS:
- 10%  Interest;   principal  of  $146,625; monthly  payments  of  $4,396; convertible             $128,340
    to  common  stock  based  on 75%  of  average  price;  due on 5/30/2008, net of
    unamortized discounted related to the debt discount of $18,285
- 0% Interest; principal of $14,000; monthly payments of $3,000; convertible to common stock          6,348
    based on 60% of average price; due on 08/01/08, net of unamortized discount related to
    the debt discount of $7,652
- 0% Interest; principal of $14,000; monthly payments of $3,000; convertible to common stock          6,348
    based on 60% of average price; due on 08/01/08, net of unamortized discount related to
    the debt discount of $7,652
- 5% Interest; principal of $75,521; monthly payments of $4,387; convertible to common stock         39,196
    based on 70% of average price; due on 7/1/2009, net of unamortized discount related to
    the debt discount of $36,325
- 5% Interest; principal of $188; monthly payments of $1,283; convertible to common stock               188
    based on 70% of average price; due on 7/1/2009.
                                                                                                   --------
TOTAL SHORT TERM NOTES PAYABLE TO SHAREHOLDERS                                                     $180,420
                                                                                                   ========
SHORT TERM NOTES PAYABLE:
- 10.301% Interest; principal of $9,642; monthly payments of $1,254; due on 12/1/2008              $  9,642
                                                                                                   --------
TOTAL SHORT TERM NOTES PAYABLE                                                                     $  9,642
                                                                                                   ========
LONG TERM NOTES PAYABLE TO SHAREHOLDERS:
- 5% Interest; principal of $13,052; monthly payments of $4,387; convertible to common stock       $  6,774
    based on 70% of average price; due on 7/1/2009, net of unamortized discount related to
    the debt discount of $6,278.
- 5% Interest; principal of $3,816; monthly payments of $1,283; convertible to                        3,816
     common stock based on 70% of average price; due on 7/1/2009.
- 10% Interest; principal of $12,500; convertible to common stock based on 60% of average             1,311
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $11,189
</TABLE>

                                       9
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007

<TABLE>
<CAPTION>
<S>                                                                                              <C>
- 10% Interest; principal of $10,000; convertible to common stock based on 60% of average               708
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $9,292
- 10% Interest; principal of $30,629; convertible to common stock based on 60% of average            12,798
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $17,832
- 10% Interest; principal of $127,463; convertible to common stock based on 50% of average           57,989
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $69,474
- 10% Interest; principal of $32,017; convertible to common stock based on 50% of average            14,226
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $17,791
- 10% Interest; principal of $50,240; convertible to common stock based on 60% of average             6,755
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $43,485
- 10% Interest; principal of $100,257; convertible to common stock based on 50% of average           40,839
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $59,417
- 10% Interest; principal of $10,642; convertible to common stock based on 50% of average             1,325
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $9,317
                                                                                                   --------
TOTAL LONG TERM NOTES PAYABLE TO SHAREHOLDERS                                                      $146,541
                                                                                                   ========
LONG TERM NOTES PAYABLE:
- 10% Interest; principal of $50,000; convertible to common stock based on 60% of average            42,311
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $7,689
- 10% Interest; principal of $17,500; convertible to common stock based on 60% of average             1,836
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $15,664
- 10% Interest; principal of $25,000; convertible to common stock based on 60% of average             1,744
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $23,256
- 10% Interest; principal of $10,000; convertible to common stock based on 60% of average               490
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $9,510
- 10% Interest; principal of $20,000; convertible to common stock based on 60% of average               547
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $19,453
- 10% Interest; principal of $37,133; convertible to common stock based on 60% of average            15,735
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $21,398
- 10% Interest; principal of $61,870; convertible to common stock based on 50% of average             9,243
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $52,627
- 10% Interest; principal of $50,603; convertible to common stock based on 60% of average             6,397
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $44,205
                                                                                                   --------
TOTAL LONG TERM NOTES PAYABLE                                                                      $ 78,303
                                                                                                   ========
</TABLE>

                                       10
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


SHORT TERM NOTE PAYABLE - SHAREHOLDERS

On August 21, 2006, the Company issued a $250,000  convertible note payable to a
shareholder  and an  entity  owned  by  such  shareholder  in  exchange  for the
retirement of the shareholder's Series B preferred stock and all related accrued
interest.  On March 14, 2007, the Note was amended with the monthly  payments of
$4,395 or more deferred until June 1, 2007 and the due date extended from August
30, 2007 to May 30, 2008.  At any time after giving  notice,  the Holder has the
option to convert all or part of the  remaining  balance of the note into common
stock of the Company  based on 75% of the average of the lowest five closing bid
prices in the past 20 trading days immediately preceding such conversion so long
as such  conversion  shall not exceed  4.99% of the then  outstanding  shares of
common  stock of the  Company.  Furthermore,  on March  26,  2007,  the Note was
bifurcated into two separate notes with all prior unpaid  principal and interest
rolled up into these two notes.  A debt  discount of $239,556 was  calculated in
accordance with Emerging Issues Task Force No. 00-27,  "Application of Issue No.
98-5 to Certain Convertible  Instruments" ("EITF 00-27"), and is being amortized
over the life of the debenture.  The  amortization is being recorded as interest
expense and totaled  $35,756 for the quarter  ended March 31, 2008 and  $221,272
for the period from  inception to March 31, 2008.  During the quarter,  the note
holders  converted  the note into common  stock in the amount of $13,915 for the
payment of principal and interest. During the second quarter of 2007, one of the
two notes was fully paid off and as of March 31, 2008 the  principal  balance on
the remaining note was $146,625. The Company is current with the payments on the
remaining note.

On May 8, 2007 the  Company  amended an  earlier  Promissory  Note for  $129,240
($121,920 in principal and $7,320 accrued interest). Furthermore, on May 8, 2007
the Company bifurcated the Note and entered into two separate Notes: (i) one for
$100,000 with 5% interest  pursuant to which the Company is obligated to make 24
monthly  principal and interest  payments of $4,387 commencing July 1, 2007 with
final  payment  July 1, 2009 and (ii) a second Note for $29,240 with 5% interest
pursuant  to which the Company is  obligated  to make 24 monthly  principal  and
interest  payments of $1,283  commencing July 1, 2007 with final payment July 1,
2009 (this  second Note is payable to a  shareholder).  At any time after giving
notice, the Holder has the option to convert all or part of the accrued interest
and remaining principal of either note based on 70% of the average of the lowest
5 closing  bid prices in the past 20 trading  days  immediately  preceding  such
conversion  so long as the total number of shares  issued to Holder will be such
that the number of shares  beneficially  owned by Holder will be less than 4.99%
of the outstanding common shares of the Company. The Company has determined that
these  modified  terms are  substantially  different  than the original terms as
defined in the Emerging Issues Task Force No. 96-19,  "Debtor's Accounting for a
Modification or Exchange of Debt Instruments"  ("EITF 96-19"),  and,  therefore,
this  renegotiation  result in the recognition of a $129,240 loss as of the date
of the  amendment of the note. A debt  discount of $129,240  was  calculated  in
accordance  with  EITF  00-27,  and is  being  amortized  over  the  life of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$28,226  for the  quarter  ended  March 31, 2008 and $86,637 for the period from
inception to March 31, 2008.  During the quarter,  the note Holders  converted a
total of $24,421 of principal and interest  payments.  As of March 31, 2008, the
balances of the notes were  $92,577.  The  balances of the notes were  separated
into short and long term  portions on the  Consolidated  Balance  Sheets.  As of
March 31, 2008 $75,709 of  principal  and $36,325 of related  discounts  are due
short  term and the  balance  of  $16,868  of  principal  and  $6,278 of related
discounts are due long term.

                                       11
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


On January 22, 2008, the Company converted $20,000 in accounts payable into a no
interest  bearing $20,000  Promissory Note with monthly payments of $3,000 to be
paid no later than  August 1, 2008.  At any time,  the Payee may  convert all or
part of the remaining  principal balance and accrued interest into shares of the
Company's  Common Stock based on 60% of the average of the lowest three  closing
bid prices in the past 20 trading days immediately preceding such conversions so
long as such conversions  shall not exceed 4.99% of the then outstanding  common
stock of the Company.  In relation to the  convertible  features of this note, a
debt discount of $20,000 was  calculated  in  accordance  with EITF 00-27 and is
being  amortized  over  the life of the  debenture.  The  amortization  is being
recorded as interest expense and totaled $12,348 for the quarter ended March 31,
2008 and for the period from  inception to March 31,  2008.  During the quarter,
the note Holder converted a total of $6,000 of principal  payments.  As of March
31, 2008, the balance of the note was $14,000.

Also,  on January 22,  2008,  the Company  converted  an  additional  $20,000 in
accounts payable into a no interest bearing $20,000 Promissory Note with monthly
payments  of $3,000 to be paid no later than  August 1, 2008.  At any time,  the
Payee may convert  all or part of the  remaining  principal  balance and accrued
interest into shares of the  Company's  Common Stock based on 60% of the average
of the lowest three  closing bid prices in the past 20 trading days  immediately
preceding such conversions so long as such conversions shall not exceed 4.99% of
the then outstanding common stock of the Company. In relation to the convertible
features of this note, a debt  discount of $20,000 was  calculated in accordance
with  EITF  00-27 and is being  amortized  over the life of the  debenture.  The
amortization  is being recorded as interest  expense and totaled $12,348 for the
quarter  ended  March 31, 2008 and for the period  from  inception  to March 31,
2008.  During  the  quarter,  the note  Holder  converted  a total of  $6,000 of
principal payments. As of March 31, 2008, the balance of the note was $14,000.

SHORT TERM NOTES PAYABLE

On March 1,  2008 the  Company  entered  into a  $10,800  note to for a  prepaid
expense in the  amount of  $14,900.  A down  payment in the amount of $4,100 was
paid in cash. The $10,800 note carries interest at an annual  percentage rate of
10.60%  pursuant to which the Company is obligated  to make 9 monthly  principal
and interest  payments of $1,254  commencing  April 1, 2008 with a final payment
December 1, 2008. As of March 31, 2008, the balance of the note was $9,642.

LONG TERM NOTES PAYABLE/LONG TERM NOTES PAYABLE SHAREHOLDERS

On May 21, 2007 the Company entered into a $122,500  Secured  Promissory Note at
the rate of 11% per annum due March 20, 2008. On December 31, 2007,  the Company
and the Payee  amended  the note to change  the  interest  rate to 10%,  exclude
incentive  payments,  extend the due date to December 31, 2009,  and to insert a
conversion clause which allows the Payee to convert all or part of the remaining
principal  balance and accrued interest into the Company's Common Stock based on
50% of the  average  of the  lowest  three  closing  bid prices in the past five
trading days  immediately  preceding such conversion so long as such conversions
shall not exceed  4.99% of the then  outstanding  Common  Stock of the  Company.
Accrued interest was also rolled up into the amended note for a new note balance
of  $130,735.  The  Company has  determined  that these  modified  terms are not
substantially  different than the original terms as defined in EITF 96-19,  and,
therefore,  this  renegotiation  did not result in the  recognition of a gain or
loss.  In relation to the  convertible  feature of this note, a debt discount of
$82,976 was calculated in accordance with EITF 00-27 and is being amortized over
the life of the  debenture.  The  amortization  is being  recorded  as  interest
expense  and totaled  $13,502  for the quarter  ended March 31, 2008 and for the
period from  inception to March 31, 2008.  Initially,  the Company's  President,
Kenneth  Yeung,  personally  borrowed the money and invested the amount into the
Company. Due to a change in the business, the Company decided on May 21, 2007 to
assume the note and entered into a promissory note with the lender.  The Note is
secured with the Preferred Series C shares owned by the President.

                                       12
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


In connection with this transaction,  490,000 warrants to purchase shares of the
common stock of the Company at $0.25 were issued with an expiration  date of May
20,  2012.  Utilizing  the  Black-Scholes  valuation  model  and  the  following
assumptions:  estimated volatility of 211.36%, a contractual life of five years,
a zero  dividend  rate,  4.71% risk free  interest  rate,  and the fair value of
common  stock of $0.10 per share at date of grant,  the Company  determined  the
allocated fair value of the warrant to be $47,759. The Company has recorded this
amount as a debt discount and is  amortizing  the debt discount over the term of
this Note. The  amortization  is being recorded as interest  expense and totaled
$12,736  for the  quarter  ended  March 31, 2008 and $47,759 for the period from
inception to March 31, 2008.  During the  quarter,  the note Holder  converted a
total of $5,850 of principal and interest  payments.  As of March 31, 2008,  the
balance of the note was $127,463.

On May 21, 2007,  the Company  entered into a Promissory  Note for $30,000 to be
paid no later than March 20, 2008 with an interest  rate of 11%. On December 31,
2007,  the Company and the Payee amended the note to change the interest rate to
10%, exclude incentive  payments,  extend the due date to December 31, 2009, and
to insert a  conversion  clause which allows the Payee to convert all or part of
the remaining  principal  balance and accrued interest into the Company's Common
Stock based on 50% of the average of the lowest three  closing bid prices in the
past five trading days  immediately  preceding  such  conversion so long as such
conversions  shall not exceed 4.99% of the then outstanding  Common Stock of the
Company.  Accrued  interest  was also rolled up into the amended  note for a new
note balance of $32,017.  The Company has  determined  that these modified terms
are not  substantially  different  than the  original  terms as  defined in EITF
96-19, and, therefore, this renegotiation did not result in the recognition of a
gain or loss.  In  relation  to the  convertible  feature of this  note,  a debt
discount of $20,321 was  calculated in  accordance  with EITF 00-27 and is being
amortized over the life of the debenture.  The amortization is being recorded as
interest expense and totaled $2,530 for the quarter ended March 31, 2008 and for
the period from inception to March 31, 2008. Initially, the Company's President,
Kenneth  Yeung,  personally  borrowed the money and invested the amount into the
Company. Due to a change in the business, the Company decided on May 21, 2007 to
assume the note and entered into a promissory note with the lender.  The Note is
secured with the Preferred Series C shares owned by the President.

In connection  with this  transaction,  120,000  warrants to purchase the common
stock of the  Company at $.25 were  issued  with an  expiration  date of May 20,
2012. Utilizing the Black-Scholes valuation model and the following assumptions:
estimated  volatility  of 211.36%,  a  contractual  life of five  years,  a zero
dividend rate, 4.71% risk free interest rate, and the fair value of common stock
of $0.10 per share at date of grant,  the Company  determined the allocated fair
value of the warrant to be $11,696.  The Company has  recorded  this amount as a
debt  discount and is  amortizing  the debt discount over the term of this Note.
The  amortization  is being recorded as interest  expense and totaled $3,119 for
the quarter  ended March 31, 2008 and $11,696 for the period from  inception  to
March 31, 2008. No payments were due or made during the quarter.

On May 21, 2007,  the Company  entered into a Promissory  Note for $97,500 to be
paid no later than May 20,  2008 with an interest  rate of 11%. On December  31,
2007,  the Company and the Payee amended the note to change the interest rate to
10%, exclude incentive  payments,  extend the due date to December 31, 2009, and
to insert a  conversion  clause which allows the Payee to convert all or part of
the remaining  principal  balance and accrued interest into the Company's Common
Stock based on 50% of the average of the lowest three  closing bid prices in the
past five trading days  immediately  preceding  such  conversion so long as such
conversions  shall not exceed 4.99% of the then outstanding  Common Stock of the
Company.  Accrued  interest  was also rolled up into the amended  note for a new
note balance of $104,054.  The Company has determined  that these modified terms
are not  substantially  different  than the  original  terms as  defined in EITF
96-19, and, therefore, this renegotiation did not result in the recognition of a
gain or loss.  In  relation  to the  convertible  feature of this  note,  a debt
discount of $66,042 was  calculated in  accordance  with EITF 00-27 and is being
amortized over the life of the debenture.  The amortization is being recorded as
interest  expense and totaled  $11,904 for the quarter  ended March 31, 2008 and
for the period from inception to March 31, 2008.

In connection  with this  transaction,  390,000  warrants to purchase the common
stock of the  Company at $.25 were  issued  with an  expiration  date of May 21,
2012. Utilizing the Black-Scholes valuation model and the following assumptions:
estimated  volatility  of 211.36%,  a  contractual  life of five  years,  a zero
dividend rate, 4.71% risk free interest rate, and the fair value of common stock

                                       13
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


of $0.10 per share at date of grant,  the Company  determined the allocated fair
value of the warrant to be $38,012.  The Company has  recorded  this amount as a
debt  discount and is  amortizing  the debt discount over the term of this Note.
The  amortization  is being recorded as interest  expense and totaled $9,503 for
the quarter  ended March 31, 2008 and $32,733 for the period from  inception  to
March 31, 2008. During the quarter,  the note Holder converted a total of $5,850
of principal  and interest  payments.  As of March 31, 2008,  the balance of the
note was $100,257.

On May 22, 2007 the  Company  entered  into a  Convertible  Promissory  Note for
$50,000  to be paid no later  than  March 21,  2008 with 11%  interest  rate per
annum.  On December  31,  2007,  the  Company and the Payee  amended the note to
change  the  interest  rate to  10%,  exclude  incentive  payments,  change  the
conversion rate to 60% instead of 50%, and extended the due date to December 31,
2009.  The Company has determined  that these  modified terms are  substantially
different than the original terms as defined in EITF 96-19, and, therefore, this
renegotiation  did result in the recognition of a $37,649 gain as of the date of
the amendment of the note. In connection with this transaction, 200,000 warrants
to  purchase  the  common  stock of the  Company  at $.25  were  issued  with an
expiration date of May 21, 2012. Utilizing the Black-Scholes valuation model and
the following  assumptions:  estimated volatility of 211.36%, a contractual life
of five years, a zero dividend rate, 4.76% risk free interest rate, and the fair
value  of  common  stock of  $0.10  per  share  at date of  grant,  the  Company
determined  the allocated  fair value of the warrant to be $19,494.  The Company
has recorded  this amount as a debt  discount and is amortizing it over the term
of this Note. The amortization is being recorded as interest expense and totaled
$5,263 for the  quarter  ended  March 31,  2008 and  $19,494 for the period from
inception to March 31, 2008.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $30,506  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$1,093 for the  quarter  ended  March 31,  2008 and  $22,817 for the period from
inception to March 31, 2008. During the fourth quarter of 2007, the Company paid
the note holder the accrued interest on the note of $3,346.  No payments are due
or have been made during the quarter.

On June 1, 2007,  the Company  entered into a Promissory  Note for $10,000 to be
paid no later than June 1, 2008 with an interest  rate of 11%.  On December  31,
2007,  the Company and the Payee amended the note to change the interest rate to
10%, exclude incentive  payments,  extend the due date to December 31, 2009, and
to insert a  conversion  clause which allows the Payee to convert all or part of
the remaining  principal  balance and accrued interest into the Company's Common
Stock based on 50% of the average of the lowest three  closing bid prices in the
past five trading days  immediately  preceding  such  conversion so long as such
conversions  shall not exceed 4.99% of the then outstanding  Common Stock of the
Company.  Accrued  interest  was also rolled up into the amended  note for a new
note balance of $10,642.  The Company has  determined  that these modified terms
are  substantially  different  than the original terms as defined in EITF 96-19,
and, therefore, this renegotiation result in the recognition of a $4,511 loss as
of the date of the amendment of the note. In relation to the convertible feature
of this note, a debt discount of $10,642 was calculated in accordance  with EITF
00-27 and is being amortized over the life of the debenture. The amortization is
being  recorded as interest  expense  and totaled  $1,325 for the quarter  ended
March 31, 2008 and for the period from  inception to March 31, 2008. No payments
were due or made during the quarter.

On September 17, 2007, the Company  entered into a Convertible  Promissory  Note
for  $36,000 to be paid no later  than  August 28,  2008 with 11%  interest  per
annum.  On December  31,  2007,  the  Company and the Payee  amended the note to
change  the  interest  rate to  10%,  exclude  incentive  payments,  change  the
conversion rate to 60% instead of 50%, and extended the due date to December 31,
2009.  Accrued  interest was also rolled up into the amended note for a new note
balance of $37,133.  The Company has  determined  that these  modified terms are
substantially  different than the original terms as defined in EITF 96-19,  and,
therefore, this renegotiation did result in the recognition of a $11,913 gain as
of the date of the amendment of the note. In connection  with this  transaction,
144,000 warrants to purchase the common stock of the Company at $.25 were issued

                                       14
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


with an  expiration  date of September  17, 2012.  Utilizing  the  Black-Scholes
valuation model and the following assumptions:  estimated volatility of 299.55%,
a contractual life of five years, a zero dividend rate, 4.21% risk free interest
rate,  and the fair  value of common  stock of $0.02 per share at date of grant,
the Company determined the allocated fair value of the warrant to be $3,161. The
Company has recorded this amount as a debt  discount and is amortizing  the debt
discount  over the term of this Note.  The  amortization  is being  recorded  as
interest  expense  and  totaled  $834 for the  quarter  and $1,789  period  from
inception to March 31, 2008.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $32,839  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$2,847 for the  quarter  ended  March 31,  2008 and  $12,813 for the period from
inception to March 31, 2008. No payments were due or made during the quarter.

On September 17, 2007, the Company  entered into a Convertible  Promissory  Note
for  $30,000 to be paid no later  than  August 28,  2008 with 11%  interest  per
annum.  On December  31,  2007,  the  Company and the Payee  amended the note to
change  the  interest  rate to  10%,  exclude  incentive  payments,  change  the
conversion rate to 60% instead of 50%, and extended the due date to December 31,
2009.  Accrued  interest was also rolled up into the amended note for a new note
balance of $30,629.  The Company has  determined  that these  modified terms are
substantially  different than the original terms as defined in EITF 96-19,  and,
therefore, this renegotiation did result in the recognition of a $10,433 gain as
of the date of the amendment of the note. In connection  with this  transaction,
120,000 warrants to purchase the common stock of the Company at $.25 were issued
with an  expiration  date of September  17, 2012.  Utilizing  the  Black-Scholes
valuation model and the following assumptions:  estimated volatility of 299.55%,
a contractual life of five years, a zero dividend rate, 4.21% risk free interest
rate,  and the fair  value of common  stock of $0.02 per share at date of grant,
the Company determined the allocated fair value of the warrant to be $2,634. The
Company has recorded this amount as a debt  discount and is amortizing  the debt
discount  over the term of this Note.  The  amortization  is being  recorded  as
interest  expense  and  totaled  $695 for the  quarter  and $1,491  period  from
inception to March 31, 2008.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $27,366  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$2,373 for the  quarter  ended  March 31,  2008 and  $10,678 for the period from
inception to March 31, 2008. No payments were due or made during the quarter.

On October 5, 2007, the Company entered into a Promissory Note for $60,000 to be
paid no later than  August 5, 2008 with an interest  rate of 13.2%.  On December
31, 2007, the Company and the Payee amended the note to change the interest rate
to 10%, exclude  incentive  payments,  extend the due date to December 31, 2009,
and to insert a conversion  clause which allows the Payee to convert all or part
of the  remaining  principal  balance and accrued  interest  into the  Company's
Common Stock based on 50% of the average of the lowest three  closing bid prices
in the past five trading days  immediately  preceding such conversion so long as
such conversions shall not exceed 4.99% of the then outstanding  Common Stock of
the Company. Accrued interest was also rolled up into the amended note for a new
note balance of $61,870.  The Company has  determined  that these modified terms
are  substantially  different  than the original terms as defined in EITF 96-19,
and, therefore,  this renegotiation  result in the recognition of a $25,524 loss
as of the date of the  amendment  of the note.  In relation  to the  convertible
feature of this note, a debt  discount of $58,512 was  calculated  in accordance
with  EITF  00-27 and is being  amortized  over the life of the  debenture.  The
amortization  is being  recorded as interest  expense and totaled $7,284 for the
quarter  ended  March 31, 2008 and for the period  from  inception  to March 31,
2008.

                                       15
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


In connection  with this  transaction,  240,000  warrants to purchase the common
stock of the Company at $.25 were issued  with an  expiration  date of August 5,
2012. Utilizing the Black-Scholes valuation model and the following assumptions:
estimated  volatility  of 332.74%,  a  contractual  life of five  years,  a zero
dividend rate, 4.33% risk free interest rate, and the fair value of common stock
of $0.014 per share at date of grant, the Company  determined the allocated fair
value of the warrant to be $3,358.  The Company  has  recorded  this amount as a
debt  discount and is  amortizing  the debt discount over the term of this Note.
The  amortization  is being recorded as interest  expense and totaled $1,007 for
the quarter and $1,959 period from inception to March 31, 2008. No payments were
due or made during the quarter.

On November 21, 2007, the Company entered into a Convertible Promissory Note for
$50,000 to be paid no later than  November 21, 2008 with 11% interest per annum.
On December 31, 2007,  the Company and the Payee  amended the note to change the
interest rate to 10%, exclude incentive payments,  change the conversion rate to
60% instead of 50%, and  extended  the due date to December  31,  2009.  Accrued
interest  was also  rolled up into the  amended  note for a new note  balance of
$50,603.  The Company has determined that these modified terms are substantially
different than the original terms as defined in EITF 96-19, and, therefore, this
renegotiation  did result in the recognition of a $18,083 gain as of the date of
the amendment of the note. In connection with this transaction, 200,000 warrants
to  purchase  the  common  stock of the  Company  at $.25  were  issued  with an
expiration  date of November 21, 2012.  Utilizing  the  Black-Scholes  valuation
model  and  the  following  assumptions:  estimated  volatility  of  332.74%,  a
contractual  life of five years, a zero dividend  rate,  3.4% risk free interest
rate,  and the fair value of common stock of $0.0021 per share at date of grant,
the Company  determined  the allocated fair value of the warrant to be $419. The
Company has recorded this amount as a debt  discount and is amortizing  the debt
discount  over the term of this Note.  The  amortization  is being  recorded  as
interest expense and totaled $105 for the quarter and $150 period from inception
to March 31, 2008.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $50,183  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$6,247 for the quarter ended March 31, 2008 and for the period from inception to
March 31, 2008. No payments were made or due during the quarter.

On November 30, 2007, the Company entered into a Convertible Promissory Note for
$50,000 to be paid no later than  November 30, 2008 with 11% interest per annum.
On December 31, 2007,  the Company and the Payee  amended the note to change the
interest rate to 10%, exclude incentive payments,  change the conversion rate to
60% instead of 50%, and  extended  the due date to December  31,  2009.  Accrued
interest  was also  rolled up into the  amended  note for a new note  balance of
$50,240.   The  Company  has  determined  that  these  modified  terms  are  not
substantially  different than the original terms as defined in EITF 96-19,  and,
therefore,  this  renegotiation  did not result in the  recognition of a gain or
loss.  In connection  with this  transaction,  200,000  warrants to purchase the
common  stock of the  Company at $.25 were  issued  with an  expiration  date of
November 30, 2012. Utilizing the Black-Scholes valuation model and the following
assumptions:  estimated volatility of 332.74%, a contractual life of five years,
a zero  dividend  rate,  3.41% risk free  interest  rate,  and the fair value of
common stock of $0.012 per share at date of grant,  the Company  determined  the
allocated fair value of the warrant to be $2,398.  The Company has recorded this
amount as a debt discount and is  amortizing  the debt discount over the term of
this Note. The  amortization  is being recorded as interest  expense and totaled
$600 for the quarter and $800 period from inception to March 31, 2008.

At any time,  the  Payee  may  convert  all or part of the  remaining  principal
balance and accrued  interest into shares of the Company's Common Stock based on
60% of the average of the lowest three closing bid prices in the past 20 trading
days immediately preceding such conversion so long as such conversions shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
this  convertible  feature,  a  debt  discount  of  $47,842  was  calculated  in
accordance  with  EITF  00-27  and is  being  amortized  over  the  life  of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$5,956 for the quarter ended March 31, 2008 and for the period from inception to
March 31, 2008. No payments were made or due during the quarter.

                                       16
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


On January 16, 2008, the Company  entered into a Promissory  Note for $12,500 to
be paid no later than  December  31, 2009 with an  interest  rate of 10%. At any
time, the Payee may convert all or part of the remaining  principal  balance and
accrued  interest into shares of the Company's  Common Stock based on 60% of the
average  of the lowest  three  closing  bid  prices in the past 20 trading  days
immediately  preceding  such  conversion so long as such  conversions  shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
the convertible  feature of this note, a debt discount of $12,500 was calculated
in  accordance  with  EITF  00-27  and is being  amortized  over the life of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$1,311 for the quarter ended March 31, 2008 and for the period from inception to
March 31, 2008. No payments were due or made during the quarter.

On January 16, 2008, the Company  entered into a Promissory  Note for $17,500 to
be paid no later than  December  31, 2009 with an  interest  rate of 10%. At any
time, the Payee may convert all or part of the remaining  principal  balance and
accrued  interest into shares of the Company's  Common Stock based on 60% of the
average  of the lowest  three  closing  bid  prices in the past 20 trading  days
immediately  preceding  such  conversion so long as such  conversions  shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
the convertible  feature of this note, a debt discount of $17,500 was calculated
in  accordance  with  EITF  00-27  and is being  amortized  over the life of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$1,836 for the quarter ended March 31, 2008 and for the period from inception to
March 31, 2008. No payments were due or made during the quarter.

On February 12, 2008, the Company  entered into a Promissory Note for $25,000 to
be paid no later than  December  31, 2009 with an  interest  rate of 10%. At any
time, the Payee may convert all or part of the remaining  principal  balance and
accrued  interest into shares of the Company's  Common Stock based on 60% of the
average  of the lowest  three  closing  bid  prices in the past 20 trading  days
immediately  preceding  such  conversion so long as such  conversions  shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
the convertible  feature of this note, a debt discount of $25,000 was calculated
in  accordance  with  EITF  00-27  and is being  amortized  over the life of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$1,744 for the quarter ended March 31, 2008 and for the period from inception to
March 31, 2008. No payments were due or made during the quarter.

On February 27, 2008, the Company  entered into a Promissory Note for $10,000 to
be paid no later than  December  31, 2009 with an  interest  rate of 10%. At any
time, the Payee may convert all or part of the remaining  principal  balance and
accrued  interest into shares of the Company's  Common Stock based on 60% of the
average  of the lowest  three  closing  bid  prices in the past 20 trading  days
immediately  preceding  such  conversion so long as such  conversions  shall not
exceed 4.99% of the then outstanding common stock of the Company. In relation to
the convertible  feature of this note, a debt discount of $10,000 was calculated
in  accordance  with  EITF  00-27  and is being  amortized  over the life of the
debenture.  The  amortization is being recorded as interest  expense and totaled
$490 for the quarter  ended March 31, 2008 and for the period from  inception to
March 31, 2008. No payments were due or made during the quarter.

On March 13, 2008, the Company  entered into a Promissory Note for $20,000 to be
paid no later than  December 31, 2009 with an interest rate of 10%. At any time,
the Payee may convert all or part of the remaining principal balance and accrued
interest into shares of the  Company's  Common Stock based on 60% of the average
of the lowest three  closing bid prices in the past 20 trading days  immediately
preceding such conversion so long as such conversions  shall not exceed 4.99% of
the then outstanding common stock of the Company. In relation to the convertible
feature of this note, a debt  discount of $20,000 was  calculated  in accordance
with  EITF  00-27 and is being  amortized  over the life of the  debenture.  The
amortization  is being  recorded  as interest  expense and totaled  $547 for the
quarter  ended  March 31, 2008 and for the period  from  inception  to March 31,
2008. No payments were due or made during the quarter.

                                       17
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


On March 18, 2008, the Company  entered into a Promissory Note for $10,000 to be
paid no later than  December 31, 2009 with an interest rate of 10%. At any time,
the Payee may convert all or part of the remaining principal balance and accrued
interest into shares of the  Company's  Common Stock based on 60% of the average
of the lowest three  closing bid prices in the past 20 trading days  immediately
preceding such conversion so long as such conversions  shall not exceed 4.99% of
the then outstanding common stock of the Company. In relation to the convertible
feature of this note, a debt  discount of $9,481 was  calculated  in  accordance
with  EITF  00-27 and is being  amortized  over the life of the  debenture.  The
amortization  is being  recorded  as interest  expense and totaled  $189 for the
quarter  ended  March 31, 2008 and for the period  from  inception  to March 31,
2008. No payments were due or made during the quarter.

NOTE 5: RELATED PARTY TRANSACTIONS

PAYMENT OF DEBT

During the quarter  ended March 31, 2008 the  Company  issued  5,982,960  common
shares  valued at $13,915 for the payment of Principal and Interest on Debt to a
related party.

PROCEEDS FROM SHAREHOLDERS
During  the  quarter  ended  March  31,  2008,  the  Company  entered  into  two
Convertible Promissory Notes with two shareholders in the amounts of $12,500 and
$10,000, for a total of $22,500. See Note 4 - Notes Payable and Debt Discounts.

ACCRUED EXPENSES - RELATED PARTY

During the quarter  ended  March 31,  2008,  Kenneth  Yeung,  the Company  Chief
Executive  Officer was  reimbursed  and/or  advanced  cash for  various  company
related expenditures for traveling overseas. As of December 31, 2007 the balance
of  $3,891  represents  the  total  cash is owed to the Mr.  Yeung  for  accrued
expenses.

During the quarter ended March 31, 2008,  the Company  issued  6,571,429  common
shares valued at $25,657 to a related party for payment of accrued expenses. See
Note 6 - Stock Holder's Equity.

NOTE 6: STOCK HOLDER'S EQUITY

COMMON STOCK

During  the  quarter  ended  March  31,  2008,  the  Company  issued  a total of
44,894,268  shares of common stock valued at $107,820 for  consulting  services,
repayment of debt, and for a settlement detailed in the following chart.

Date of   Number of Shares   Aggregate Sales
 Issue        Issued             Price               Nature of Transaction
 -----        ------             -----               ---------------------
01/18/08     1,904,762          $ 9,524      In exchange for consulting services
01/18/08     8,748,574          $22,390      In exchange for debt cancellation
01/21/08     1,500,000          $ 7,500      In exchange for settlement
02/04/08     1,703,698          $ 4,396      In exchange for debt cancellation
02/04/08     2,000,000          $ 7,600      In exchange for consulting services
02/11/08       992,064          $ 2,778      In exchange for consulting services
02/25/08     1,500,000          $ 6,000      In exchange for settlement
03/11/08    14,595,874          $23,251      In exchange for debt cancellation
03/11/08    10,666,667          $20,533      In exchange for consulting services
03/19/08     1,282,629          $ 3,848      In exchange for consulting services

On January 14,  2008,  the Company  signed a  settlement  agreement  whereby the
Company  agreed to pay a  previous  shareholder  $10,000  in cash and  3,000,000
shares of the Company's common stock (without  registration under the Securities

                                       18
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


Act of 1933) as additional  and final  consideration  for the Series B Preferred
shares  he sold  back to the  Company.  The  value of the  shares at the date of
issuances is $13,500.  Total  Settlement cost of $23,500 was expensed during the
period ended March 31, 2008.

PREFERRED STOCK

Effective  March 31,  2008,  the  Company  and Suining  Yinfa  Construction  and
Engineering Co., Ltd., both agreed that it was in their best interest to rescind
the Asset Sale and Purchase  Agreement of the Rose Top Grade  Project due to the
underperformance  of the  assets  and the  inability  of the  sellers  to record
transactions  as necessary to permit  preparation  of  financial  statements  in
conformity  with US GAAP.  Suining Yinfa agreed to return all 350,000  shares of
the Company's Series E Preferred Stock as part of the rescission and the Company
agreed to compensate  Suining  Yinfa for their work and time in connection  with
this  transaction  with 35,000 shares of the Company's Series E Preferred Stock.
See Note 8 - Acquisitions and Investments.

NOTE 7: DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

At the end of the first quarter of 2007 the Company  discontinued all operations
related to the motor sports  business due to  increased  manufacturer's  prices,
slowing retail sales,  increased  competition  from online auction sites and the
consolidation of the die cast industry.  This includes  operations by its wholly
owned subsidiaries  Scottsdale Diecast,  Inc. ("SDI") and Quadriga  Motorsports,
Inc.  ("Quadriga").  The  Company  has since  shifted  focus to  developing  and
manufacturing  lightweight  panel  technology.  No income tax  expense  has been
recorded  related  to  the  discontinued  operations  given  the  Company's  net
operating  loss carry  forwards  and related  valuation  allowances.  Prior year
financial  statements for 2007 have been  reclassified to present the operations
of the motor sports business as discontinued operations. There is no activity in
the current year related to the motor sports business.

The following assets and liabilities have been segregated and included in Assets
held for sale and Liabilities held for sale, as appropriate, in the consolidated
balance  sheets as of March 31, 2008 and 2007,  that relates to our motor sports
business:

                                                          March 31,
                                                  --------------------------
                                                    2008              2007
                                                  --------          --------
ASSETS
  Fixed assets, net of depreciation               $     --          $  4,177
  Intangible assets, net of amortization                --            10,000
                                                  --------          --------
      Assets held for sale                        $     --          $ 14,177
                                                  ========          ========

Liabilities
  Accounts payable and accrued expenses           $     --          $215,172
                                                  --------          --------
      Liabilities held for sale                   $     --          $215,172
                                                  ========          ========

                                       19
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


The  following  amounts,  related  to  our  motor  sports  business,  have  been
segregated from Continuing Operations and included in Discontinued Operations in
the Consolidated Statements of Operations:

                                                            March 31,
                                                  -----------------------------
                                                    2008                2007
                                                  ---------           ---------
Gross profit                                      $      --           $      --

Operating expenses
  Selling, general and administrative                    --             170,039
  Depreciation and amortization                          --               1,740
                                                  ---------           ---------
      Total operating expenses                           --            (171,779)
                                                  ---------           ---------
Other Income (expense):
  Interest Expense                                       --              (7,642)
  Loss on extinguishment of debt                         --               9,670
  Other income                                           --                 106
                                                  ---------           ---------
      Total other income                                 --               2,134
                                                  ---------           ---------
Loss from discontinuing operations                $      --           $(169,645)
                                                  =========           =========

NOTE 8: ACQUISITIONS AND INVESTMENTS

INTERNATIONAL BUILDING TECHNOLOGIES, INC.

On May 2, 2007, Motorsports Emporium, Inc.  ("Motorsports") entered into a Stock
Sale and  Purchase  Agreement  with Axia  Group,  Inc.  ("Axia"),  International
Building Technologies,  Inc. ("IBT") and its Hong Kong subsidiary  International
Building  Technologies  Co.,  Ltd.  ("IBT LTD"),  pursuant to which  Motorsports
acquired  50,000,000 shares of IBT's common stock (or approximately 80% of IBT's
issued and outstanding  common stock) from Axia for  consideration of $2,300,000
consisting  of a (i)  $1,000,000  Convertible  Note and (ii)  20,000,000  common
shares of Motorsports valued at $1,300,000. Subsequently, on September 27, 2007,
the  Company  and Axia Group  renegotiated  the terms and agreed to rescind  the
$1,000,000   Convertible   Promissory   Note  changing  the  purchase  price  to
$1,300,000.  The value of the  20,000,000  common shares  issued was  determined
based on the average market price of  Motorsport's  common shares over the 2-day
period before and the terms of the acquisition were agreed to and announced.

IBT owns the rights to manufacture and sell light weight building panels used in
construction all over the world. The building panels can be used in a variety of
ways to erect buildings up to six stories tall without the need of a traditional
wood or steel frame  structure.  It is also versatile in its use and can be used
to create unique  architectural  design elements.  Management  believes that the
Company's panel based building  technology  allows for the rapid, cost effective
construction  of  residential,  commercial,  and high-rise  buildings  utilizing
materials  that  are  greater  in  strength  and   appearance,   economical  and
eco-friendly.  Based  on  standard  building  codes  prescribed  by  authorities
worldwide,   the  Company's   technology   will  meet  and  exceed  the  minimum
requirements.  The Company also provides  customers with  architectural  design,
panel supply,  installation  supervision,  engineering,  training, and technical
support.  IBT Hong Kong has contractual rights and business  relationships to do
business in China.

                                       20
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


The  acquisition  has  been  accounted  for as a  purchase  in  accordance  with
Statement of Financial  Accounting Standard No. 141 BUSINESS  COMBINATIONS.  The
total purchase price was allocated as follows:

                   Cash                         $     6,207
                   Fixed assets                       6,271
                   Other assets                       3,539
                   Current liabilities               (4,294)
                   Minority Interest                (15,000)
                   Goodwill                       1,303,277
                                                -----------
                   Purchase price               $ 1,300,000
                                                ===========

None of the  $1,302,994  of goodwill is subject to  amortization,  but an annual
impairment test. The Company conducted an annual impairment test on the goodwill
and  concluded  that the there is no  impairment on the asset as of December 31,
2007.

The  following is the  supplemental  pro forma  information  that  discloses the
results of operations as though the business  combination  had been completed as
of the beginning of the period being reported on.

                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                 PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                     March 31,
                                                                       2007
                                                                    -----------
Operating loss                                                      $   (64,491)
Other income (expense):
  Interest income                                                            28
  Minority interest in net loss of subsidiary                             8,244
                                                                    -----------
      Total other income (expense)                                        8,272
                                                                    -----------
Loss from continuing operations                                         (56,219)
                                                                    -----------
Discontinued operations:
  Income (loss) from operations of discontinued business               (179,317)
  Income (loss) on disposal of assets                                     9,670
                                                                    -----------
Income (loss) on discontinued operations                               (169,647)
                                                                    -----------
Net loss                                                            $  (225,866)
                                                                    ===========
Net loss per common share - basic and diluted
  Continuing operations                                             $     (0.02)
                                                                    ===========
  Discontinued operations                                           $     (0.05)
                                                                    ===========
  Net loss per common share                                         $     (0.06)
                                                                    ===========
Weighted average common shares outstanding:
  Basic                                                               3,707,087
                                                                    ===========

                                       21
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


SUINING YINFA CONSTRUCTION AND ENGINEERING CO. - ROSE TOP GRADE PROJECT

In July 2007, our wholly owned subsidiary,  International Building Technologies,
Co., Ltd. ("IBT LTD"), a Hong Kong  corporation,  entered into an Asset Sale and
Purchase Agreement with China based Suining Yinfa Construction & Engineering Co,
Ltd.  (Suining) for 51% interest in a Chinese building  projected named Rose Top
Grade (Rose Best) Project.  The Rose Top Grade (Rose Best) Project is located in
the Sichuan Province of China and consists of four upscale residential apartment
buildings  with a total  building  area of  approximately  49,500  square meters
(537,000 sq feet).  The Company  purchased 51% of the Rose Top Grade (Rose Best)
Project  from  Suining  Yinfa for a $350,000 USD  convertible  promissory  note,
payable July 2009.  On December 12, 2007,  the Company  converted  the note into
350,000 shares of the Company's Series E Preferred stock.

Effective March 31, 2008, signed April 23, 2008, both parties agreed that it was
in their best  interest to rescind the Asset Sale and Purchase  Agreement due to
the  underperformance  of the assets and the  inability of the sellers to record
transactions  as necessary to permit  preparation  of  financial  statements  in
conformity  with US GAAP.  Suining Yinfa agreed to return all 350,000  shares of
the Company's Series E Preferred Stock as part of the rescission and the Company
agreed to compensate  Suining  Yinfa for their work and time in connection  with
this  transaction  with 35,000 shares of the Company's Series E Preferred Stock.
The value of the 35,000  shares of the  Company's  Series E  Preferred  Stock is
valued at $35,000 based on 10% of the original  investment.  The compensation to
Suining  Yinfa  has  been  expensed  as of  March  31,  2008  on  the  condensed
consolidated statement of operations.  Since the compensation was not paid as of
end of the quarter  March 31, 2008 it is  recognized  as a stock  payable on the
condensed  consolidated  balance  sheet.  The  compensation  was paid before the
filing of this report.

NOTE 9: SUBSEQUENT EVENTS

STOCK ISSUANCES

The Company  issued the  following  Common  Stocks  after the end of the quarter
ended March 31, 2008 and prior to the filing of this Quarterly Filing.

Date of      Number of Shares   Aggregate Sales
 Issue           Issued             Price          Nature of Transaction
 -----           ------             -----          ---------------------

04/01/2008      5,643,350          $ 5,079   In exchange for debt cancellation
04/03/2008      9,259,260          $11,000   In exchange for consulting services
04/03/2008      2,959,960          $ 4,396   In exchange for debt cancellation
04/15/2008      6,531,558          $ 4,572   In exchange for debt cancellation
04/21/2008      3,763,150          $ 4,004   In exchange for debt cancellation
04/21/2008      3,000,000          $ 2,940   In exchange for debt cancellation
04/28/2008      4,014,192          $ 4,396   In exchange for debt cancellation
04/28/2008      4,761,905          $ 5,000   In exchange for consulting services
04/28/2008      8,918,919          $12,000   In exchange for cash investment
04/28/2008      6,875,000          $10,000   In exchange for cash investment
04/30/2008      7,971,014          $10,000   In exchange for cash investment
 5/2/2008       6,857,483          $ 3,657   In exchange for debt cancellation

ACQUISITION OF WUHAN WUFENG MACHINERY MANUFACTURING COMPANY, LTD.

On April 16, 2008, the Company entered into a definitive  agreement to acquire a
92% stake in Wuhan Wufeng  Machinery  Manufacturing  Company,  Ltd.  ("Machinery
Co.")  from  Wuhan  Intepower  Company,  Ltd.,  a China  Corporation  ("Seller")
pursuant to a Stock Sale and Purchase  Agreement.  After transferring a 4% stake
to certain  management  personnel  of the  Machinery  Co. at the  closing of the
transaction, the Company will own a net interest of 88% of the equity securities
of the Machinery Company.  The closing of this acquisition will occur as soon as

                                       22
<PAGE>
                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.
                          (A DEVELOPMENT STAGE COMPANY)

            Notes to the Condensed Consolidated Financial Statements
                      March 31, 2008 and December 31, 2007


the audit of the books and  accounts of the  Machinery  Co. is  completed to the
satisfaction of the Company and requisite governmental approvals are obtained.

The  purchase  consideration  to be paid by the  Company to the  Seller  will be
approximately  U.S.  $1,500,000,  consisting  of cash  for  10% of the  purchase
consideration  payable by April 24, 2008, and three (3)  Convertible  Promissory
Notes representing the balance of the purchase  consideration,  such notes being
due and payable on June 30,  September 30 and December 20, 2008. At the Seller's
option the notes are  convertible  into shares of INBG  common  stock at a value
equivalent  to the notes.  As of the filing of the filing of this report the 10%
cash consideration was paid in full.

The Machinery Co.  currently  offers several lines of machineries and equipments
which can be retooled to manufacture the panel  production  machineries that the
Company  endeavors to sell and utilize in several planned  projects in China and
other  countries.  The  Machinery  Co.  currently  has  state of the art  tools,
experienced engineers,  capability to design new lines of equipment,  as well as
strong customer service and after-sales support. Strategically, this acquisition
will strongly  support the  Company's  ability to supply the market for building
panels and panel machineries in China and throughout the world.

DESIGNATION OF SERIES F PREFERRED STOCK

On April 21, 2008,  the Company  authorized  the  designation of a new series of
preferred stock named the "Series F Preferred  Stock" with 3,000,000  authorized
shares, no voting rights,  and 8% annual dividends,  when and if declared by the
Board of Directors.

AMENDMENT OF SHAREHOLDER PROMISSORY NOTE

On April 26, 2008, the Company and a shareholder  amended a Promissory  Note due
May 30, 2008 by extending the maturity date to June 20, 2009.

CONVERTIBLE PROMISSORY NOTES

On April 25,  2008,  the  Company  issued  three  Convertible  Promissory  Notes
totaling RMB 9,900,000 (US $1,412,000 as of April 25, 2008 based on spot rate of
RMB 7.0095 per USD)  representing the balance of the purchase  consideration for
the  Machinery   Company  (See  above  ACQUISITION  OF  WUHAN  WUFENG  MACHINERY
MANUFACTURING  COMPANY,  LTD.).  These  notes  are due and  payable  on June 30,
September  30 and  December  20,  2008.  At the  Seller's  option  the notes are
convertible into shares of INBG common stock at a value equivalent to the notes.

The following  notes  illustrated  in the table below have a conversion  feature
consisting of a 60% conversion rate based on the average of the lowest 3 closing
bid prices within the 20 trading days  preceding the  conversion.  No conversion
shall exceed  4.99% of the then  outstanding  common  stock of the Company.  All
notes have a December 31, 2009 maturity date and are convertible at any time.

                       Date                  Amount
                       ----                  ------
                    04/02/2008              $ 25,000
                    04/03/2008              $ 10,000
                    04/03/2008              $ 10,000
                    04/05/2008              $ 50,000
                    04/05/2008              $ 50,000
                    04/24/2008              $ 70,000
                                            --------
                    Total                   $215,000
                                            ========

                                       23
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

For a description of our significant accounting policies and an understanding of
the significant factors that influenced our performance during the quarter ended
March  31,  2008,  this  "Management's  Discussion  and  Analysis  of  Financial
Condition  and Results of  Operations"  should be read in  conjunction  with the
Consolidated  Financial  Statements,  including the related notes,  appearing in
Item 1 of this Quarterly  Report, as well as the Company's Annual Report on Form
10-KSB for the year ended December 31, 2007.

CAUTIONARY FORWARD - LOOKING STATEMENT

 The  foregoing  discussion,  as well as the other  sections  of this  Quarterly
Report on Form  10-Q,  contains  forward-looking  statements  that  reflect  our
current   views  with   respect  to  future   events  and   financial   results.
Forward-looking  statements usually include the verbs "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "projects,"  "understands" and other
verbs  suggesting  uncertainty.  We  remind  shareholders  that  forward-looking
statements  are  merely   predictions  and  therefore   inherently   subject  to
uncertainties  and other factors which could cause the actual  results to differ
materially from the forward-looking  statements.  Such factors and uncertainties
include, but are not limited to the following:

     -    the volatile and competitive nature of the industry,
     -    the uncertainties surrounding the rapidly evolving markets in which we
          compete,
     -    the uncertainties surrounding technological change of the industry,
     -    our dependence on its intellectual property rights,
     -    the success of marketing efforts by third parties,
     -    the changing demands of customers, and
     -    the arrangements with present and future customers and third parties.

Should one or more of these risks or uncertainties  materialize or should any of
the underlying assumptions prove incorrect, actual results of current and future
operations may vary materially from those anticipated.

GENERAL

Prior to December 1, 2004 the  Company was known as Ten Stix,  Inc.  and changed
its name to MotorSports Emporium, Inc. on December 1, 2004 under the laws of the
State of Nevada to engage in the motor  sports  industry  targeting  enthusiasts
participating  in die  cast  collecting,  automobile  restoration,  purchase  of
high-performance  accessories,  motor  sports  related  collectibles,   driver's
apparel,  race  venues and  product  licensing.  On July 12,  2007,  the Company
reported in a  Definitive  Schedule 14C that the Company was going to change its
name to International  Building  Technologies  Group, Inc. to better reflect its
change of business  from motor sports  related to building and  construction  of
lightweight  panels.  On July 17,  2007 the  Company  amended  its  articles  of
incorporation to change its name to International  Building  Technologies Group,
Inc. effective on August 6, 2007. According to Statement of Financial Accounting
Standards No. 7,  "Accounting and Reporting by Development  Stage  Enterprises,"
the Company has reentered the development stage. The Company devotes most of its
efforts to establishing a new business, raising capital, establishing sources of
supply,  acquiring property,  plant, equipment,  and other operating assets. The
Company's  shares of common  stock  trade on the OTC  Bulletin  Board  under the
symbol "INBG.OB".

Our principal  executive  offices are located at 1151 Harbor Bay Parkway,  Suite
202,  Alameda,  CA 94502.  Our telephone  number is (510) 814-3778 and facsimile
number is (510)  814-0366.  More  information  regarding  our  products  and the
Company is available on our website at www.ibtgi.com.

                                       24
<PAGE>
EXECUTIVE OVERVIEW

In 2004,  we entered the motor sports  industry  selling die cast model cars. In
2005 we created several divisions to sell race worn memorabilia (helmets, gloves
and racing  suits),  automotive  related art and high  performance  brake fluid.
Additionally,  in 2006 we created a car wash  product  named after a  well-known
racing  legend.  Up until the end of our first  quarter in 2007 we  continued to
focus our efforts on our high  performance  brake fluid and  specialty  car care
product lines, however due to a change in control and certain events, we changed
our  business  operations  to better  reflect  management's  experience  and our
expertise in the light weight panel industry where we can better  concentrate on
global construction and engineering projects. At the end of the first quarter of
2007 we divested  ourselves from the motor sports business and transitioned into
the business of lightweight  panel  construction  through our subsidiary IBT and
its wholly owned subsidiary IBT Hong Kong.

The  Company is a developer  and  provider  of a superior  panel based  building
technology  which  allows  for  the  rapid,   cost  effective   construction  of
residential,  commercial,  and high-rise  buildings utilizing materials that are
superior in strength and appearance,  economical and  eco-friendly.  The Company
provides  customers  with  architectural  design,  panel supply,  supervision of
installation, engineering, training, and technical support.

We  currently  have signed  Memorandums  of  Understanding  and are  negotiating
contracts for various projects throughout China. Our endeavors include an entire
new town,  luxury  condominiums,  resorts,  social interest homes,  and standard
industrial buildings.  We strive to establish fully operational panel facilities
throughout  China,  where they are  building  more square  feet of new  housing,
commercial, and industrial buildings than any other country.

In July 2007,  we executed an  agreement to purchase a 51% interest in a Chinese
building project named the Rose Top Grade (Rose Best) Project.  However,  due to
the  underperformance of the Project along with the Seller's inability to record
transactions  as necessary to permit  preparation  of  financial  statements  in
conformity  with US GAAP,  both  parties  decided to rescind the  agreement  and
return all consideration paid.

In December 2007, the Company signed a memorandum of  understanding to acquire a
China based  machinery  manufacturing  company.  The  Machinery  Company has net
assets worth approximately US $2.5 million and revenues of approximately US $3.5
million for the year 2007. The Machinery  Company currently offers several lines
of  machineries  and equipments  which can be retooled to manufacture  the panel
production machineries that the Company endeavors to sell and utilize in several
planned  projects  in China and other  countries.  In April  2008,  the  Company
executed a definitive agreement to acquire the Machinery Company.

We have been incurring selling, general and administrative expenses primarily to
develop our existing businesses,  improve our current  infrastructure to address
anticipated growth and identify and evaluate  complementary business development
opportunities  and marketing.  The  development  of these  businesses has led to
recent  operating losses and cash outflows.  However,  we believe the Company is
strategically  positioning  itself with contracts and business ventures that can
significantly contribute to the continuous development of its panel business and
the Company's bottom line.

RECENT DEVELOPMENTS

RESCISSION OF ROSE TOP PROJECT

In July 2007, IBT Hong Kong,  entered into an Asset Sale and Purchase  Agreement
with China based  Suining  Yinfa  Construction  &  Engineering  Co, Ltd. for 51%
interest in a Chinese building project named Rose Top Grade (Rose Best) Project.
The Rose Top Grade  (Rose Best)  Project is located in the  Sichuan  Province of
China and consists of four upscale residential  apartment buildings with a total
building area of  approximately  49,500 square meters (537,000 square feet). The
Company  purchased  51% of the Rose Top Grade (Rose Best)  Project  from Suining
Yinfa for a convertible  promissory note of US $350,000,  which was converted to
350,000 shares of the Company's Series E preferred stock on December 12, 2007.

Effective March 31, 2008, both parties agreed that it was in their best interest
to rescind the Asset Sale and Purchase Agreement due to the  underperformance of
the assets and the inability of the sellers to record  transactions as necessary
to permit  preparation  of  financial  statements  in  conformity  with US GAAP.
Suining  Yinfa  agreed to return all 350,000  shares of the  Company's  Series E
Preferred  Stock as part of the  rescission and the Company agreed to compensate
Suining Yinfa for their work and time in connection with this  transaction  with
35,000 shares of the Company's Series E Preferred Stock.

                                       25
<PAGE>
ACQUISITION OF WUHAN MACHINERY COMPANY

In December 2007, the Company signed a Memorandum of  Understanding to acquire a
machinery  manufacturing company in Wuhan, Hubei Province of China. According to
audited  financial  information  prepared in  accordance  with China  accounting
standards,  the  Machinery  Company has net assets worth  approximately  US $2.5
million and revenues of  approximately  US $3.5  million for the year 2007.  The
Machinery  Company  currently offers several lines of machineries and equipments
which can be retooled to manufacture the panel  production  machineries that the
Company  endeavors to sell and utilize in several planned  projects in China and
other  countries.  The  Machinery  Company  also  has  state  of the art  tools,
experienced engineers,  capability to design new lines of equipment,  as well as
strong customer service and after-sales support. Strategically, this acquisition
will strongly  support INBG's  ability to supply the market for building  panels
and panel machineries in China and throughout the world.

The Company signed a definitive  agreement to acquire the Machinery Co. on April
16,  2008  -  after  the  end  of  the  first  quarter  of  2008.  The  purchase
consideration to be paid by the Company to the Seller will be approximately U.S.
$1,500,000,  consisting of cash for 10% of the purchase consideration payable by
April 24, 2008, and three (3)  Convertible  Promissory  Notes  representing  the
balance of the purchase consideration,  such notes being due and payable on June
30,  September 30 and December  20, 2008.  At the Seller's  option the notes are
convertible into shares of INBG common stock at a value equivalent to the notes.

DISCONTINUED OPERATIONS

At the end of the first quarter of 2007 the Company  discontinued all operations
related to the motor sports  business due to  increased  manufacturer's  prices,
slowing retail sales,  increased  competition  from online auction sites and the
consolidation of the die cast industry.  This includes  operations by its wholly
owned subsidiaries  Scottsdale Diecast,  Inc. ("SDI") and Quadriga  Motorsports,
Inc.  ("Quadriga").  The  Company  has since  shifted  focus to  developing  and
manufacturing  lightweight  panel  technology.   The  Company  has  subsequently
disposed of all assets related to the motor sports business in the first quarter
of 2007.  No income tax expense has been  recorded  related to the  discontinued
operations  given the Company's net  operating  loss carry  forwards and related
valuation allowances.  All activity during fiscal year 2007 related to the motor
sports business has been  reclassified to present the operations as discontinued
operations. Fiscal year 2006 financial statements have also been reclassified to
present the operations of the motor sports business as discontinued  operations.
There was no motor sports related business in the first quarter of 2008.

CRITICAL ACCOUNTING POLICIES

The methods,  estimates and judgments we use in applying our accounting policies
have a significant impact on the results we report in our financial  statements,
which we discuss  under the  heading  "Results  of  Operations"  following  this
section  of our  MD&A.  Some  of our  accounting  policies  require  us to  make
difficult  and  subjective  judgments,  often  as a  result  of the need to make
estimates of matters that are inherently uncertain. Our most critical accounting
estimates  include   Accounting  for  Convertible   Securities  with  Beneficial
Conversion Features or Contingently Adjustable Conversion Ratios., which impacts
the Statement of Operations.

We believe the following  critical  accounting  policies reflect the significant
estimates and assumptions used in the preparation of our consolidated  financial
statements:

ACCOUNTING FOR CONVERTIBLE  SECURITIES WITH  BENEFICIAL  CONVERSION  FEATURES OR
CONTINGENTLY ADJUSTABLE CONVERSION
RATIOS.

The company carries notes with convertible  features  embedded and accounted for
them under the Financial Accounting Standards Board's Emerging issues Task Force
"EITF" 00-27.

EITF 00-27  requires  the  Company to  calculate  the fair value of  stock-based
embedded  convertible  feature  in notes  as a debt  discount,  also  known as a
beneficial conversion feature "BCF". The convertible notes allow the note holder
to convert the note into common shares of the company at a specified  discounted
rate.  The  value of the debt  discount  is  calculated  on the date of the note
issuance  using the  intrinsic  value  method.  Essentially,  the debt  discount
equates to the  difference  between  the note and the fair  market  value of the
stocks if the entire note were to be converted. The debt discount is accreted as
an Interest Expense ratably on a straight-line  basis over the requisite service
period.

                                       26
<PAGE>
TRANSLATION OF NON-U.S. CURRENCY AMOUNTS

Assets and liabilities of non-U.S. subsidiaries that operate in a local currency
environment are translated to U.S.  dollars at year-end  exchange rates.  Income
and  expense  items  are  translated  at  weighted-average   rates  of  exchange
prevailing  during  the year.  Translation  adjustments  are  recorded  in Other
Comprehensive  Income  not  affecting  retained  earnings  within  Stockholders'
equity.

Inventories,   plant,  rental  machines  and  other   property-net,   and  other
non-monetary  assets and liabilities of non-U.S.  subsidiaries and branches that
operate in U.S. dollars, or whose economic  environment is highly  inflationary,
are  translated  at  approximate  exchange  rates  prevailing  when the  company
acquired  the  assets or  liabilities.  All other  assets  and  liabilities  are
translated at the quarter ended March 31, 2008 exchange rates. Cost of sales and
depreciation  are translated at historical  exchange rates. All other income and
expense  items  are  translated  at  the  weighted-average   rates  of  exchange
prevailing during the year.

Current and historical exchange rates are not indicative of what future exchange
rates will be and should not be construed as such.

Relevant  exchange rates used in the preparation of the financial  statements of
the  subsidiary  are as follows for the quarter ended March 31, 2008 (denoted in
Hong Kong dollars per one U.S. dollar):

                                                       2007
                                                    -----------
     Current exchange rate at March 31,             $7.7819 HKD
     Weighted average exchange rate                 $7.7943 HKD

There were no U.S.  subsidiaries that operate in a local currency environment in
the respective quarter ended March 31, 2008.

RESULTS OF OPERATIONS

The  results  of  operations  in  the  prior  year  are  not  indicative  of the
performance in neither the current period nor future periods. This is due to the
change  in  business  from an  exclusive  die  cast  merchandising  business  to
developing and  manufacturing  lightweight  panel  technology.  The discontinued
operations of all activities  related to the motor sports  business in the first
quarter  ended March 31, 2007 is reflected  as  Discontinued  Operations  on the
Statement of Operations.

Since  discontinuing the prior business and re-entering the development stage as
of April 1, 2007 the Company's  results of operations has changed.  There are no
revenues  during  the  current  development  stage as we are in the  process  of
starting our manufacturing process. There were no revenues in the quarters ended
March 31, 2008 and 2007.

Operating Expenses for current operations totaled $215,949 for the quarter ended
March 31, 2008 compared to Discontinued  Operating  Expenses of $170,039 for the
quarter ended March 31, 2007. (Please see Note 7 - Discontinued  Operations) The
increase of $45,910 in Operating  Expenses between quarters ended March 31, 2008
and  2007  is  mostly  attributed  to  the  shift  in  business  focus  and  the
discontinuation of the prior business.

The most significant change in our results of operations is Interest Expense. As
of March 31, 2008,  Interest  Expense  totaled  $204,116 and is greater than the
Interest Expense of $7,642 for the quarter ended March 31, 2007. The increase of
$196,474 in Interest  Expense is largely due to the  issuances  of new debt with
non-cash  interest  expenses such as accretion of warrants and accretion on debt
discounts (See Note 4 - Notes Payable & Debt Discounts). These non-cash expenses
make up the  majority  of the  difference  between  current  year and prior year
interest expense.

In 2008 the company reported expenses related to a settlement  totaling $23,500.
This settlement is related to a previous  shareholder.  The  consideration  paid
consisted of $10,000 cash and 3,000,000  common shares of the Company  valued at
$13,500. See Note 6 - Stock Holder's Equity.

Effective  March 31,  2008,  the company  rescinded  the Asset Sale and Purchase
Agreement  on the Rose Top  Grade  Project  due to the  underperformance  of the
assets and the inability of the sellers to record  transactions  as necessary to
permit  preparation of financial  statements in conformity with US GAAP. Suining
Yinfa agreed to return all 350,000  shares of the  Company's  Series E Preferred

                                       27
<PAGE>
Stock as part of the  rescission  and the Company  agreed to compensate  Suining
Yinfa for their work and time in connection  with this  transaction  with 35,000
shares of the Company's Series E Preferred Stock. The value of the consideration
totaled $35,000 which was based on 10% of the original investment.  See Note 8 -
Acquisitions and Investments.

LIQUIDITY AND CAPITAL RESOURCES

During the next 12 months,  our  foreseeable  cash  requirements  will relate to
continuing  to develop  the  operations  of our wholly  owned  subsidiaries  and
business  divisions,  maintaining  our good  standing  and making the  requisite
filings with the Securities and Exchange Commission, and the payment of expenses
associated  with  reviewing or  investigating  any potential  business  venture.
Additionally,  we may  experience  a cash  shortfall  and be  required  to raise
additional  capital. In the quarter ended March 31, 2008 and year ended December
31,  2007 we relied on funds from the sale of shares of stock and loans from our
shareholders  and  private  investors  to finance  our  operations  and  growth.
Management  may raise  additional  capital  through  future  public  or  private
offerings of our stock or through loans from private  investors,  although there
can be no assurance that we will be able to obtain such  financing.  Our failure
to do so could have a material and adverse affect upon us and our shareholders.

The unaudited chart below summarizes our debt (see Note 4 - Notes Payable & Debt
Discounts)

<TABLE>
<CAPTION>
                                                                                                    Amount
Terms                                                                                             Unaudited
-----                                                                                             ---------
<S>                                                                                              <C>
SHORT TERM NOTES PAYABLE TO SHAREHOLDERS:
- 10%  Interest;   principal  of  $146,625; monthly  payments  of  $4,396; convertible             $128,340
    to  common  stock  based  on 75%  of  average  price;  due on 5/30/2008, net of
    unamortized discounted related to the debt discount of $18,285
- 0% Interest; principal of $14,000; monthly payments of $3,000; convertible to common stock          6,348
    based on 60% of average price; due on 08/01/08, net of unamortized discount related to
    the debt discount of $7,652
- 0% Interest; principal of $14,000; monthly payments of $3,000; convertible to common stock          6,348
    based on 60% of average price; due on 08/01/08, net of unamortized discount related to
    the debt discount of $7,652
- 5% Interest; principal of $75,521; monthly payments of $4,387; convertible to common stock         39,196
    based on 70% of average price; due on 7/1/2009, net of unamortized discount related to
    the debt discount of $36,325
- 5% Interest; principal of $188; monthly payments of $1,283; convertible to common stock               188
    based on 70% of average price; due on 7/1/2009.
                                                                                                   --------
TOTAL SHORT TERM NOTES PAYABLE TO SHAREHOLDERS                                                     $180,420
                                                                                                   ========
SHORT TERM NOTES PAYABLE:
- 10.301% Interest; principal of $9,642; monthly payments of $1,254; due on 12/1/2008              $  9,642
                                                                                                   --------
TOTAL SHORT TERM NOTES PAYABLE                                                                     $  9,642
                                                                                                   ========
LONG TERM NOTES PAYABLE TO SHAREHOLDERS:
- 5% Interest; principal of $13,052; monthly payments of $4,387; convertible to common stock       $  6,774
    based on 70% of average price; due on 7/1/2009, net of unamortized discount related to
    the debt discount of $6,278.
- 5% Interest; principal of $3,816; monthly payments of $1,283; convertible to                        3,816
     common stock based on 70% of average price; due on 7/1/2009.
- 10% Interest; principal of $12,500; convertible to common stock based on 60% of average             1,311
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $11,189
- 10% Interest; principal of $10,000; convertible to common stock based on 60% of average               708
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $9,292
- 10% Interest; principal of $30,629; convertible to common stock based on 60% of average            12,798
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $17,832
- 10% Interest; principal of $127,463; convertible to common stock based on 50% of average           57,989
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $69,474
- 10% Interest; principal of $32,017; convertible to common stock based on 50% of average            14,226
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $17,791
- 10% Interest; principal of $50,240; convertible to common stock based on 60% of average             6,755
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $43,485
- 10% Interest; principal of $100,257; convertible to common stock based on 50% of average           40,839
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $59,417
- 10% Interest; principal of $10,642; convertible to common stock based on 50% of average             1,325
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $9,317
                                                                                                   --------
TOTAL LONG TERM NOTES PAYABLE TO SHAREHOLDERS                                                      $146,541
                                                                                                   ========
</TABLE>

                                       28
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                                              <C>
LONG TERM NOTES PAYABLE:
- 10% Interest; principal of $50,000; convertible to common stock based on 60% of average            42,311
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $7,689
- 10% Interest; principal of $17,500; convertible to common stock based on 60% of average             1,836
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $15,664
- 10% Interest; principal of $25,000; convertible to common stock based on 60% of average             1,744
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $23,256
- 10% Interest; principal of $10,000; convertible to common stock based on 60% of average               490
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $9,510
- 10% Interest; principal of $20,000; convertible to common stock based on 60% of average               547
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $19,453
- 10% Interest; principal of $37,133; convertible to common stock based on 60% of average            15,735
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $21,398
- 10% Interest; principal of $61,870; convertible to common stock based on 50% of average             9,243
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $52,627
- 10% Interest; principal of $50,603; convertible to common stock based on 60% of average             6,397
    price; due on 12/31/2009, net of unamortized discount related to the debt discount of
    $44,205
                                                                                                   --------
TOTAL LONG TERM NOTES PAYABLE                                                                      $ 78,303
                                                                                                   ========
</TABLE>

Our financial  statements have been prepared assuming that we will continue as a
going  concern  and,  accordingly,  do not include  adjustments  relating to the
recoverability and realization of assets and classifications of liabilities that
might be necessary should we be unable to continue our operations.

OFF-BALANCE SHEET ARRANGEMENTS

As of the  date  of  this  Quarterly  Report,  there  are no  off-balance  sheet
arrangements  that have or are  reasonably  likely  to have a current  or future
effect on our financial condition,  changes in financial condition,  revenues or
expenses,  results of operations,  liquidity,  capital  expenditures  or capital
resources  that  are  material  to  investors.   The  term  "off-balance   sheet
arrangement"  generally means any  transaction,  agreement or other  contractual
arrangement to which an entity  unconsolidated  with us is a party,  under which
the we have (i) any obligation  arising under a guarantee  contract,  derivative
instrument or variable  interest;  or (ii) a retained or contingent  interest in
assets transferred to such entity or similar  arrangement that serves as credit,
liquidity or market risk support for such assets.

MATERIAL COMMITMENTS
As of the date of this Quarterly Report, we do not have any material commitments
that are not reflected as liabilities on our consolidated balance sheet included
elsewhere in this report.  Subsequent  to the quarter  ending March 31, 2008, on
April 16, 2008, the Company executed a material definitive agreement via a Stock
Purchase  Agreement  to acquire a  machinery  company  for a fixed  price of RMB
11,000,000 (US  $1,575,000 as of April 16, 2008).  The Company agreed to pay 10%
of the total fixed price in cash within 7 working  days after the  execution  of
the agreement and issue three  convertible  promissory  notes for the balance of
the consideration based on the completion of certain terms and conditions.

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

NOT APPLICABLE

ITEM 4 - CONTROLS AND PROCEDURES.

(a) EVALUATION OF DISCLOSURE  CONTROLS AND PROCEDURES.  Our principal  executive
officer and principal  financial officer have evaluated the effectiveness of our
disclosure  controls and procedures (as such term is defined in Rules  13a-15(e)
and  15d-15(e)  under the 1934 Act as of the end of the  period  covered by this
quarterly  report  ("Evaluation  Date").  Based on such  evaluation,  our  Chief
Executive  Office and Chief  Financial  Officer has  concluded  that,  as of the
Evaluation Date, our disclosure controls and procedures were effective.

 (b)  CHANGES IN INTERNAL  CONTROLS.  There were no  significant  changes in our
internal  controls or in other  factors  that could  significantly  affect these
controls subsequent to the date of evaluation by our principal executive officer
and principal financial officer.

                                       29
<PAGE>
                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

There Company is not aware of any threatened or pending  litigation  against the
Company.

ITEM 1A. RISK FACTORS.

There have been no  material  changes  from the risk  factors  described  in our
Annual Report on Form 10KSB for the fiscal year ended December 31, 2007.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

          Since  December  31,  2007,  the  Company  has  issued  the  following
securities without registration under the Securities Act of 1933:

Date of     Number of Shares   Aggregate Sales
 Issue          Issued             Price             Nature of Transaction
 -----          ------             -----             ---------------------
01/18/08       1,904,762          $ 9,524    In exchange for consulting services
01/18/08       8,748,574          $22,389    In exchange for debt cancellation
01/21/08       1,500,000          $ 7,500    In exchange for settlement
02/04/08       1,703,698          $ 4,396    In exchange for debt cancellation
02/04/08       2,000,000          $ 7,600    In exchange for consulting services
02/25/08       1,500,000          $ 6,000    In exchange for settlement
03/11/08      14,595,874          $22,531    In exchange for debt cancellation
03/11/08      10,666,667          $20,533    In exchange for consulting services

 The above shares of common  stock were issued  pursuant to the  exemption  from
registration under Section 4(2) of the Securities Act of 1933, as amended.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

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

None

ITEM 5. OTHER INFORMATION.

None.

                                       30
<PAGE>
ITEM 6. EXHIBITS.

(a) Exhibits

Exhibit No.                                   Description
-----------                                   -----------
  10.11           Stock Sale and Purchase Agreement by and between International
                  Building  Technologies  Group,  Inc. and Wuhan Interpower Co.,
                  Ltd. executed on April 17, 2008.

  10.22           Rescission to the Asset Sale Purchase Agreement by and between
                  International  Building  Technologies  Group, Inc. and Suining
                  Yinfa  Construction and Engineering Co., Ltd.,  executed April
                  23, 2008.

  31.1            Certification  of Principal  Executive  Officer and  Principal
                  Financial  Officer  pursuant to Rule  13a-14(a)/15d-14(a),  as
                  adopted  pursuant to Section 302 of the Sarbanes  Oxley Act of
                  2002.

  32.13           Certification  of Chief Executive  Officer and Chief Financial
                  Officer  pursuant  to  18  U.S.C.  Section  1350,  as  adopted
                  pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

----------
1.   Previously filed as an exhibit to the Company's  Current Report on Form 8-K
     dated April 21, 2007 and incorporated herein by reference thereto.

2.   Previously filed as an exhibit to the Company's  Current Report on Form 8-K
     dated April 29, 2007 and incorporated herein by reference thereto.

3.   In  accordance  with SEC  Release  No.  34-47986,  this  Exhibit  is hereby
     furnished to the  Securities  and Exchange  Commission  as an  accompanying
     document  and is not deemed  "filed" for the  purposes of Section 18 of the
     Securities  Exchange Act of 1934 or otherwise subject to the liabilities of
     that Section,  nor shall it be deemed  incorporated  by reference  into any
     filing under the Securities Act of 1933.

                                       31
<PAGE>
                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                 INTERNATIONAL BUILDING TECHNOLOGIES GROUP, INC.


Date: May 8, 2008                /s/ Kenneth Yeung
                                 -----------------------------------------------
                                 Kenneth Yeung
                                 President, Chief Financial Officer


                                       32
<PAGE>
                                  EXHIBIT INDEX


Exhibit No.                                   Description
-----------                                   -----------
  10.11           Stock Sale and Purchase Agreement by and between International
                  Building  Technologies  Group,  Inc. and Wuhan Interpower Co.,
                  Ltd. executed on April 17, 2008.

  10.22           Rescission to the Asset Sale Purchase Agreement by and between
                  International  Building  Technologies  Group, Inc. and Suining
                  Yinfa  Construction and Engineering Co., Ltd.,  executed April
                  23, 2008.

  31.1            Certification  of Principal  Executive  Officer and  Principal
                  Financial  Officer  pursuant to Rule  13a-14(a)/15d-14(a),  as
                  adopted  pursuant to Section 302 of the Sarbanes  Oxley Act of
                  2002.

  32.13           Certification  of Chief Executive  Officer and Chief Financial
                  Officer  pursuant  to  18  U.S.C.  Section  1350,  as  adopted
                  pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

----------
1.   Previously filed as an exhibit to the Company's  Current Report on Form 8-K
     dated April 21, 2007 and incorporated herein by reference thereto.

2.   Previously filed as an exhibit to the Company's  Current Report on Form 8-K
     dated April 29, 2007 and incorporated herein by reference thereto.

3.   In  accordance  with SEC  Release  No.  34-47986,  this  Exhibit  is hereby
     furnished to the  Securities  and Exchange  Commission  as an  accompanying
     document  and is not deemed  "filed" for the  purposes of Section 18 of the
     Securities  Exchange Act of 1934 or otherwise subject to the liabilities of
     that Section,  nor shall it be deemed  incorporated  by reference  into any
     filing under the Securities Act of 1933.