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|  Nevada                                                              |  86-0728263                                      |
|--------------------------------------------------------------------------------|-------------------------------------------------------|
|  (State or      other jurisdiction of incorporation or organization) |   (I.R.S.      Employer Identification No.) |

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|                                                                                                                                   | PAGE     |
|----------------------------------------------------------------------------------------------------------------------------------------|----------|
|  PART    I                                                                                                                        |     |
|                                                                                                                                   |     |
|  ITEM 1.      DESCRIPTION OF BUSINESS                                                                                             |  4  |
|                                                                                                                                   |     |
|  ITEM 2.      DESCRIPTION OF PROPERTY                                                                                             |  10 |
|                                                                                                                                   |     |
|  ITEM 3. LEGAL      PROCEEDINGS                                                                                                   | 10       |
|                                                                                                                                   |     |
|  ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                 |  10 |
|                                                                                                                                   |     |
|  PART    II                                                                                                                       |     |
|                                                                                                                                   |     |
|  ITEM 5. MARKET      FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS                                                            |  11 |
|                                                                                                                                   |     |
|  ITEM 6.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS                          |  11 |
|                                                                                                                                   |     |
|  ITEM 7.      FINANCIAL STATEMENTS                                                                                                |  12 |
|                                                                                                                                   |     |
|  ITEM 8.      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE                           |  13 |
|                                                                                                                                   |     |
|  PART    III                                                                                                                      |     |
|                                                                                                                                   |     |
|  ITEM 9.      DIRECTOR, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS: COMPLIANCE      WITH SECTION 16(A) OF THE EXCHANGE ACT |  13 |
|                                                                                                                                   |     |
|  ITEM 10.      EXECUTIVE COMPENSATION                                                                                             |  15 |
|                                                                                                                                   |     |
|  ITEM 11.      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND    MANAGEMENT                                                  |  15 |
|                                                                                                                                   |     |
|  ITEM 12.      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                                                                     |  16 |
|                                                                                                                                   |     |
|  PART    IV                                                                                                                       |     |
|                                                                                                                                   |     |
|  ITEM 13.      EXHIBITS AND REPORTS ON FORM 8-K                                                                                   |  17 |
|                                                                                                                                   |     |
|  ITEM 14.      PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                             |  18 |
|                                                                                                                                   |     |
|  SIGNATURES                                                                                                                       |  18 |

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|   | · | The      yield for marketable crystals is low, and for large crystals can be as low      as 1-3%; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | There      are limitations on the maximum possible size of the    crystals; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | The      growth rate of the crystals is low, thus inhibiting volume production and      increasing crystal production time; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | There      is significant impurity variation within crystals. Often, less than 10% of      the crystal produced is within the desired  range; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      capital investment for mass production islarge. |
|--------|--------|----------------------------------------------------------|

| Patent No.      | Title                                                                                                          |
|-----------------|----------------------------------------------------------------------------------------------------------------|
| 6,800,137       | Binary      and ternary crystal purification and growth method      and apparatus                         |
| 6,743,294       | Continuous      crystal plate growth process and apparatus                                                     |
| 6,402,840       | Crystal      growth employing embedded purification chamber                                                    |
| 6,352,588       | Material      Purification                                                                                     |
| 6,334,899       | Continuous      crystal plate growth apparatus                                                                 |
| 6,153,011       | Continuous      crystal plate growth process and apparatus                                                     |
| 6,071,339       | Continuous      crystal plate growth process and apparatus                                                     |
| 5,993,540       | Continuous      crystal plate growth process and apparatus                                                     |
| 5,753,918       | Superior      performance subassembly for scintillation detection and detectors      employing the subassembly |
| 5,614,721       | Modular      gamma camera plate assembly with enhanced energy detection and      resolution                    |
| 5,548,116  | Long      life oil well logging assembly                                                                       |
| 5,521,385       | Long      life gamma camera plate assembly with improved reflector      system                                 |

----

| 20020117625 | Fiber      optic enhanced scintillation detector                                                                                             |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| 20020092465 | Binary      and ternary crystal purification and growth method and      apparatus                                                            |
| 20020083741 | Hot      substrate deposition of fused silica                                                                                                |
| 20020083740 | Process      and apparatus for production of silica grain having desired properties and      their fiber optic and semiconductor application |
| 20020083739 | Hot      substrate deposition fiber optic performs and perform components process      and apparatus                                         |
| 20020062784 | Material      purification                                                                                                                   |
| 20020053317 | Material      purification                                                                                                                   |
| 20020040675 | Continuous      crystal plate growth process andapparatus                                                                                    |

|   | · | the      medical imaging industry uses NaI crystal plates to transform invisible      gamma rays into visible light, which can be converted into an image of the      object examined; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | bottlers      use NaI crystal detectors to prevent overfilling of aluminum      cans; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | automobile      manufacturers use crystal detectors to control the paint spraying process      to guarantee proper color mixing; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | steel      manufacturers use NaI crystal detectors to adjust gigantic rollers to      insure uniform thickness of rolledsteel; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | nuclear      power plants use thousands of small NaI crystal detectors to measure      radiation levels throughout theplant; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | Engine      manufacturers use scintillation technology to ensure proper engine wall      thickness, alloy uniformity and crack free  parts; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Airports      use crystals in personal and baggage scanners for detection of controlled      substances, explosives and radioactivematerial; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Borders      and ports use scintillation based detectors for detection of controlled      substances, explosives and radioactivematerial. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| Crystal      Type/High Tech Product                         |   | Application                                                                                            |   | Market      Information                                                                                                                                                                                                                  |
|-------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Sodium      Iodide (NaI)                                    |   | Homeland      Security; Borders, Ports, and inland applications.                                       |   | Major      Customers: US Government, Lockheed Martin, General Electric,      Others.Current      Market Size:  Approximately $362 BillionCurrent      Producer:  Saint Gobain, Foreign Corporation.             |
| Sodium      Iodide (NaI)                                    |   | Oil      Well Logging Detectors                                                                        |   | Major      Customers: Schlumberger, Halliburton, Baker HughesCurrent      Market Size:  Approximately $100 MillionCurrent      Producer:  Saint Gobain, Foreign Corporation.                                    |
| Sodium      Iodide (NaI)                                    |   | Medical      Imaging                                                                                   |   | Major      Customers: GE, ADAC, Siemens, ToshibaCurrent      Market Size: Over $400 MillionCurrent      Producer: Saint Gobain, Foreign Corporation.                                                                                |
| Cesium      Iodide                                          |   | High      Energy Physics                                                                               |   | Major      Customers: U.S. Nat'l Research FacilitiesCurrent      Market Size: Approximately $30-40 MillionCurrent      Producer:  Saint Gobain, Foreign Corporation, and several      Chinese Government owned entities.  |
| Calcium      Fluoride (CaF2)                                |   | Semiconductor      Equipment manufacturing, Space Applications, Consumer optical      products         |   | Major      Customers: Nikon, Canon, ASML, ZeissCurrent      Market Size: Over $1 Billion(per Deutche Bank report)Current      Producers: Canon, Nikon, Corning, Shott Lithotech                                                     |
| Barium      Fluoride (BaF2);      Strontium Fluoride (SrF2) |   | Airborne      Laser Defense Systems; Medical Imaging; Semiconductor Equipment      Manufacturing  |   | Major      Customers: Lockheed Martin, Northrop Grumman, Boeing, GE,      Phillips.Current      Market Size: Over $1 BillionCurrent      Producers: Korth Kristale (Germany), Russian and Chinese Government      Companies.        |
| Metal      and Metal  Alloys                      |   | Jet      Engine Turbine Blades, Space applications                                                     |   | Major      customers: Honeywell International, GE, Rolls RoyceCurrent      Market Size: Over $1 BillionMajor      producers: No major producers,                                                                                    |
| Silicon/Silicon      Alloy products                         |   | Semiconductor      Manufacturing, Chemical Industry, Space Applications                                |   | Major      customers: Intel, Freescale, TI, Sony, AMD, Others.Current      Market Size: Over $5 BillionMajor      producers: Toshiba, Norton, Kyocera,                                                                              |
| High      Purity Quartz & Quartz products               |   | Semiconductor      manufacturing, Fiber Optic Industry; Food industry                                  |   | Major      customers: Intel, Freescale, Sony, AMD, OthersCurrent      Market Size: Over $1 BillionMajor      producers Corning, Asahi, Shott Glass                                                                                  |
|                                                        |   |                                                                                                   |   |                                                                                                                                                                                                                                     |

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Environmental Laws

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|                                             |  Page |
|--------------------------------------------------|------------|
|                                             |       |
|  INDEPENDENT      AUDITORS REPORT      |  F-1  |
|                                             |       |
|  BALANCE      SHEET                    |  F-2  |
|                                             |       |
|  STATEMENT OF      OPERATIONS               |  F-3  |
|                                             |       |
|  STATEMENT OF      CASH FLOWS     |  F-4  |
|                                             |       |
|  STATEMENT OF      STOCKHOLDER'S (DEFICIT)  |  F-5  |
|                                             |       |
|  FOOTNOTES TO      THE FINANCIAL STATEMENTS |  F-7  |

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----

|                                                 |   | December      31, |     |   | December      31, |   |
|------------------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|
|                                                 |   | 2007              |     |   | 2006              |   |
|                                                 |   |              |     |   |              |   |
| ASSETS                                               |
|                                                 |   |              |     |   |              |   |
| Current      Assets                                  |   |              |     |   |              |   |
| Cash                                                 |   | $                 | 500      |   |              | $      | - |   |
|                                                 |   |              |     |   |              |   |   |   |
| Total      Current Assets                            |   |              | 500      |   |              |   | - |   |
|                                                 |   |              |     |   |              |   |   |   |
| Total      Assets                                    |   | $                 | 500      |   |              | $      | - |   |
|                                                 |   |              |     |   |              |   |   |   |
|                                                 |   |              |     |   |              |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY/(DEFICIT)  |
|                                                 |   |              |     |   |              |   |   |   |
| Current      Liabilities                             |   |              |     |   |              |   |   |   |
| Accounts      Payable                                |   | $                 | 750      |   |              | $      | - |   |
| Loans      Payable - Related Parties                 |   |              | 21,556   |   |              |   | - |   |
|                                                 |   |              |     |   |              |   |   |   |
|                                                 |   |              |     |   |              |   |   |   |
| Total      Current Liabilities                       |   |              | 22,306   |   |              |   | - |   |
|                                                 |   |              |     |   |              |   |   |   |
| Stockholders'      Equity                            |   |              |     |   |              |   |   |   |
|                                                 |   |              |     |   |              |   |   |   |
| Preferred      Stock, authorized                     |   |              |     |   |              |   |   |   |
| 50,000,000      shares, par value $0.001,            |   |              |     |   |              |   |   |   |
| no      preferred stock is outstanding               |   |              | -        |   |              |   | - |   |
|                                                 |   |              |     |   |              |   |   |   |
| Common      Stock, authorized                        |   |              |     |   |              |   |   |   |
| 450,000,000      shares, par value $0.001,           |   |              |     |   |              |   |   |   |
| issued      and outstanding on December 31,          |   |              |     |   |              |   |   |   |
| 2007      and December 31, 2006 is                   |   |              |     |   |              |   |   |   |
| 12,327,805      and 10,659,449 shares                |   |              |     |   |              |   |   |   |
|  respectively                                   |   |              | 12,327   |   |              |   | 10,659 |   |
|                                                 |   |              |     |   |              |   |   |   |
| Paid      in Capital                                 |   |              | 889,720  |   |              |   | 849,988 |   |
|                                                 |   |              |     |   |              |   |   |   |
| Accumulated      Deficit During                      |   |              |     |   |              |   |   |   |
|      Development      Stage |   |              | (923,853 | )      |              |   | (860,647 | ) |
|                                                 |   |              |     |   |              |   |   |   |
| Total      Stockholders' Equity                      |   |              | (21,806  | )      |              |   | - |   |
|                                                 |   |              |     |   |              |   |   |   |
| Total      Liabilities and Stockholders' Equity      |   | $                 | 500      |   |              | $      | - |   |
|                                                 |   |              |     |   |              |   |   |   |

----

|                                       |   |                         |       |   |                |   |      |                |   |
|--------------------------------------------|--------|------------------------------|------------|--------|---------------------|--------|-----------|---------------------|--------|
|                                       |   |                         |       |   |                |   |      |                |   |
|                                       |   |                         |       |   |                |   |      | March      22, 1993 |   |
|                                       |   |                         |       |   | (Inception)      to |   |
|                                       |   | Year      Ended December 31, |       |   | December      31,   |   |
|                                       |   | 2007                         |       |   | 2006                |   |      | 2007                |   |
|                                       |   |                         |       |   |                |   |      |                |   |
|                                       |   |                         |       |   |                |   |      |                |   |
| General      and Administrative            |   | $                            | 29,443     |   |                | $      | 18,146    |                |   | $ | 1,042,688 |   |
| Interest      Expense                      |   |                         | -          |   |                |   | -         |                |   |   | 140,683 |   |
| Research      and Development              |   |                         | -          |   |                |   | -         |                |   |   | 331,459 |   |
| Professional      Fees                     |   |                         | 33,763     |   |                |   | 13,722    |                |   |   | 99,255 |   |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |
| Total      Expenses                        |   |                         | 63,206     |   |                |   | 31,868    |                |   |   | 1,614,085 |   |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |
|                                       |   |                         | (63,206    | )      |                |   | (31,868   | )                   |   |   | (1,614,085 | ) |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |
| Gain      on Expiration of Debt            |   |                         | -          |   |                |   | -         |                |   |   | 230,000 |   |
| Gain      on Write-down of Deferred        |   |                         |       |   |                |   |      |                |   |   |   |   |
|      Compensation |   |                         | -          |   |                |   | -         |                |   |   | 660,000 |   |
| Other      Income                          |   |                         | -          |   |                |   | -         |                |   |   | 6,654 |   |
| Loss      on Sale of Asset                 |   |                         | -          |   |                |   | -         |                |   |   | (7,491 | ) |
| Impairment      of Manufacturing           |   |                         |       |   |                |   |      |                |   |   |   |   |
|      Equipment    |   |                         | -          |   |                |   | (98,931   | )                   |   |   | (198,931 | ) |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |
|                                       |   | $                            | (63,206    | )      |                | $      | (130,799  | )                   |   | $ | (923,853 | ) |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |
| (Loss)      per Share                      |   | $                            | (0.01      | )      |                | $      | (0.02     | )                   |   |   |   |   |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |
| Weighted      Average                      |   |                         |       |   |                |   |      |                |   |   |   |   |
|    Number      of Shares    |   |                         | 11,385,991 |   |                |   | 6,543,131 |                |   |   |   |   |
|                                       |   |                         |       |   |                |   |      |                |   |   |   |   |

----

|                                                                          |   |                         |    |   |              |   |     | March      22, 1993 |   |
|-------------------------------------------------------------------------------|--------|------------------------------|---------|--------|-------------------|--------|----------|---------------------|--------|
|                                                                          |   |                         |    |   |              |   |     | (Inception)      to |   |
|                                                                          |   | Year      Ended December 31, |    |   | December      31, |   |
|                                                                          |   | 2007                         |    |   | 2006              |   |     | 2007                |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |
| Operating      Activities:                                                    |   |                         |    |   |              |   |     |                |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |
| Net      Profit / (Loss)                                                      |   | $                            | (63,206 | )      |              | $      | (130,799 | )                   |   | $ | (923,853 | ) |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Adjustments      to reconcile Net (Loss) to cash:                             |   |                         |    |   |              |   |     |                |   |   |   |   |
|      Depreciation                                    |   |                         | -       |   |              |   | 2,141    |                |   |   | 25,545 |   |
|      Loss      on Sale of Asset                      |   |                         | -       |   |              |   | -        |                |   |   | 7,491 |   |
|      Impairment      of Manufacturing Equipment      |   |                         | -       |   |              |   | 98,930   |                |   |   | 198,931 |   |
|      Common      Stock issued for Service            |   |                         | 41,400  |   |              |   | 12,400   |                |   |   | 225,000 |   |
|      Gain      on write-off of convertible Debt      |   |                         | -       |   |              |   | -        |                |   |   | (230,000 | ) |
|      Gain      on write-down of Accrued Liabilities  |   |                         | -       |   |              |   | -        |                |   |   | (660,000 | ) |
| Changes      in Assets and Liabilities                                        |   |                         |    |   |              |   |     |                |   |   |   |   |
|      Increase/(Decrease)      in Accounts Payable    |   |                         | 750     |   |              |   | -        |                |   |   | 750 |   |
|      Increase/(Decrease)      in Accrued Liabilities |   |                         | -       |   |              |   | -        |                |   |   | 914,182 |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Net      Cash (Used) by Operating Activities                                  |   |                         | (21,056 | )      |              |   | (17,328  | )                   |   |   | (441,954 | ) |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Investment      Activities:                                                   |   |                         |    |   |              |   |     |                |   |   |   |   |
| Equipment      Purchase                                                       |   |                         | -       |   |              |   | -        |                |   |   | (17,858 | ) |
| Manufacturing      Equipment Purchase                                         |   |                         | -       |   |              |   | -        |                |   |   | (214,109 | ) |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Cash      Used by Investment Activities                                       |   |                         | -       |   |              |   | -        |                |   |   | (231,967 | ) |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Financing      Activities:                                                    |   |                         |    |   |              |   |     |                |   |   |   |   |
| Net      Proceeds from loans - Related Parties                                |   |                         | 21,556  |   |              |   | 17,328   |                |   |   | 215,549 |   |
| Proceeds      from Series A Convertible Notes                                 |   |                         | -       |   |              |   | -        |                |   |   | 200,000 |   |
| Proceeds      from sale of Common Stock                                       |   |                         | -       |   |              |   | -        |                |   |   | 258,872 |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Cash      Provided by Financing Activities                                    |   |                         | 21,556  |   |              |   | 17,328   |                |   |   | 674,421 |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Net      Increase/(Decrease) in Cash                                          |   |                         | 500     |   |              |   | -        |                |   |   | 500 |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Cash,      Beginning of Period                                                |   |                         | -       |   |              |   | -        |                |   |   | - |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Cash,      End of Period                                                      |   | $                            | 500     |   |              | $      | -        |                |   | $ | 500 |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Supplemental      Information:                                                |   |                         |    |   |              |   |     |                |   |   |   |   |
| Interest      Paid                                                            |   | $                            | -       |   |              | $      | 11,500   |                |   | $ | 140,683 |   |
| Income      Taxes Paid                                                        |   | $                            | -       |   |              | $      | -        |                |   | $ | - |   |
|                                                                          |   |                         |    |   |              |   |     |                |   |   |   |   |
| Non-Cash      Activities:                                                     |   |                         |    |   |              |   |     |                |   |   |   |   |
| Loss      on Sale and Impairment of Assets                                    |   | $                            | -       |   |              | $      | 98,930   |                |   | $ | 206,422 |   |
| Gain      on write-off of Convertible Debt                                    |   | $                            | -       |   |              | $      | -        |                |   | $ | 230,000 |   |
| Gain      on write-down of Accrued Liabilities                                |   | $                            | -       |   |              | $      | -        |                |   | $ | 660,000 |   |
| Stock      issued to Convert Notes                                            |   | $                            | -       |   |              | $      | -        |                |   | $ | 85,000 |   |
| Stock      issued  to convert related-party debt                    |   | $                            | -       |   |              | $      | 333,175  |                |   | $ | 333,175 |   |
| Stock      issued in lieu of cash for service                                 |   | $                            | 41,400  |   |              | $      | 12,400   |                |   | $ | 225,000 |   |

----

|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   | Deficit                                                                                                             |   |                                                                                  |
|---------------------------------------------------------------------|-----------|--------|-------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   | Accumulated                                                                                                         |   |                                                                                  |
|                                                                |      |   |  Price             |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   | During      the                                                                                                     |   |                                                                                  |
|                                                                | Issue     |   |  Per               |   | Common      Stock                                                                                                         |   | Paid      in                                                                          |   | Subscriptions                                                                          |   | Development                                                                                                               |   | Total                                                                                                               |
|                                                                | Date      |   |  Share             |   | Shares                                                                                                                    |   | Amount                                                                                |   | Capital                                                                                |   | Receivable                                                                                                                |   | Stage                                                                                                               |   | Equity                                                                                |
| Balance      at inception, March 22, 1993                           |      |   |                    |   |                     - |   |  $          -                  |   |  $             - |   |  $                 -            |   |  $                -            |   |  $           -            |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Common      shares issued to founder                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
|       for      cash and subscriptions | 22-Mar-93 |   |  $  0.01 |   |      2,210,000                                                                                   |   |       2,210                                             |   |        22,926                                       |   |          (12,555)                                                            |   |                    - |   |      12,581                                                  |
| Payment      of stock subscription                                  |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |            12,555                                                  |   |                                                                                                                |   |      12,555                                                  |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Net      Loss                                                       |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |          (33,292)                                                      |   |     (33,292)                                                      |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Balance,      December 31, 1994                                     |      |   |                    |   |      2,210,000                                                                                   |   |       2,210                                             |   |        22,926                                       |   |                     - |   |          (33,292)                                                      |   |       (8,156)                                           |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Common      shares issued for services                              | 21-Sep-95 |   |  $  0.04 |   |            44,000                                                  |   |             44            |   |          1,956                            |   |                                                                                                                      |   |                                                                                                                |   |        2,000                                       |
| Common      shares issued for services                              | 30-Sep-95 |   |  $  0.25 |   |            47,000                                                  |   |             47            |   |        11,703                                       |   |                                                                                                                      |   |                                                                                                                |   |      11,750                                                  |
| Common      shares issued for cash                                  | 21-Sep-95 |   |  $  0.22 |   |         112,333                                                                   |   |          112                             |   |        24,888                                       |   |                                                                                                                      |   |                                                                                                                |   |      25,000                                                  |
| Common      shares issued in                                        |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |               - |
|    conversion      of convertible notes              | 30-Oct-95 |   |  $  0.25 |   |         100,000                                                                   |   |          100                             |   |        24,900                                       |   |                                                                                                                      |   |                                                                                                                |   |      25,000                                                  |
| Common      shares issued for services                              | 15-Nov-95 |   |  $  0.25 |   |            31,600                                                  |   |             32            |   |          7,868                            |   |                                                                                                                      |   |                                                                                                                |   |        7,900                                       |
| Common      shares issued in                                        |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |               - |
|    conversion      of convertible notes              | 30-Dec-95 |   |  $  0.25 |   |            40,000                                                  |   |             40            |   |          9,960                            |   |                                                                                                                      |   |                                                                                                                |   |      10,000                                                  |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |       (236,109)                                                                       |   |  (236,109)                                                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Balance,      December 31, 1995                                     |      |   |                    |   |      2,584,933                                                                                   |   |       2,585                                             |   |      104,201                                                  |   |                     - |   |       (269,401)                                                                       |   |  (162,615)                                                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Common      shares issued for cash                                  | 18-Jan-96 |   |  $  0.25 |   |            40,000                                                  |   |             40            |   |          9,960                            |   |                                                                                                                      |   |                                                                                                                |   |      10,000                                                  |
| Common      shares issued for services                              | 06-Apr-96 |   |  $  0.25 |   |              7,000                                       |   |               7 |   |          1,743                            |   |                                                                                                                      |   |                                                                                                                |   |        1,750                                       |
| Common      shares issued for services                              | 19-Aug-96 |   |  $  0.25 |   |              4,000                                       |   |               4 |   |              996      |   |                                                                                                                      |   |                                                                                                                |   |        1,000                                       |
| Common      shares issued for services                              | 17-Dec-06 |   |  $  0.25 |   |            15,200                                                  |   |             15            |   |          3,785                            |   |                                                                                                                      |   |                                                                                                                |   |        3,800                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |       (192,969)                                                                       |   |  (192,969)                                                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Balance,      December 31, 1996                                     |      |   |                    |   |      2,651,133                                                                                   |   |       2,651                                             |   |      120,685                                                  |   |                     - |   |       (462,370)                                                                       |   |  (339,034)                                                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Common      shares issued for cash                                  | 09-May-97 |   |  $  0.50 |   |            50,000                                                  |   |             50            |   |        24,950                                       |   |                                                                                                                      |   |                                                                                                                |   |      25,000                                                  |
| Common      shares issued for services                              | 09-May-97 |   |  $  0.50 |   |            22,000                                                  |   |             22            |   |        10,978                                       |   |                                                                                                                      |   |                                                                                                                |   |      11,000                                                  |
| Common      shares issued in                                        |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
|    conversion      of convertible notes              | 29-May-97 |   |  $  0.25 |   |            80,000                                                  |   |             80            |   |        19,920                                       |   |                                                                                                                      |   |                                                                                                                |   |      20,000                                                  |
| Common      shares issued for services                              | 14-Jul-97 |   |  $  0.50 |   |            15,000                                                  |   |             15            |   |          7,485                            |   |                                                                                                                      |   |                                                                                                                |   |        7,500                                       |
| Common      shares issued for cash                                  | 14-Jul-97 |   |  $  0.50 |   |            70,000                                                  |   |             70            |   |        34,930                                       |   |                                                                                                                      |   |                                                                                                                |   |      35,000                                                  |
| Common      shares issued in                                        |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
|    conversion      of convertible notes              | 19-Aug-97 |   |  $  0.25 |   |         120,000                                                                   |   |          120                             |   |        29,880                                       |   |                                                                                                                      |   |                                                                                                                |   |      30,000                                                  |
| Common      shares issued for cash                                  | 26-Aug-97 |   |  $  0.50 |   |         113,472                                                                   |   |          113                             |   |        56,623                                       |   |                                                                                                                      |   |                                                                                                                |   |      56,736                                                  |
| Common      shares issued for cash                                  | 04-Dec-97 |   |  $  0.50 |   |            30,000                                                  |   |             30            |   |        14,970                                       |   |                                                                                                                      |   |                                                                                                                |   |      15,000                                                  |
| Common      shares issued for services                              | 04-Dec-97 |   |  $  0.50 |   |            85,000                                                  |   |             85            |   |        42,415                                       |   |                                                                                                                      |   |                                                                                                                |   |      42,500                                                  |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |       (175,534)                                                                       |   |  (175,534)                                                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Balance,      December 31, 1997                                     |      |   |                    |   |      3,236,605                                                                                   |   |       3,236                                             |   |      362,836                                                  |   |                     - |   |       (637,904)                                                                       |   |  (271,832)                                                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Common      shares issued for cash                                  | 26-Feb-98 |   |  $  0.50 |   |            20,000                                                  |   |             20            |   |          9,980                            |   |                                                                                                                      |   |                                                                                                                |   |      10,000                                                  |
| Common      shares issued for services                              | 26-Feb-98 |   |  $  0.50 |   |              8,000                                       |   |               8 |   |          3,992                            |   |                                                                                                                      |   |                                                                                                                |   |        4,000                                       |
| Common      shares issued for cash                                  | 11-May-98 |   |  $  0.50 |   |            64,000                                                  |   |             64            |   |        31,936                                       |   |                                                                                                                      |   |                                                                                                                |   |      32,000                                                  |
| Common      shares issued for cash                                  | 30-Sep-98 |   |  $  0.50 |   |            30,000                                                  |   |             30            |   |        14,970                                       |   |                                                                                                                      |   |                                                                                                                |   |      15,000                                                  |
| Common      shares issued for services                              | 21-Dec-98 |   |  $  0.50 |   |              3,000                                       |   |               3 |   |          1,497                            |   |                                                                                                                      |   |                                                                                                                |   |        1,500                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |       (220,547)                                                                       |   |  (220,547)                                                                       |
|                                                                |      |   |                    |   |                                                                                                                      |   |                                                                                  |   |                                                                                   |   |                                                                                                                      |   |                                                                                                                |   |                                                                                  |

----

| Balance,      December 31, 1997                                     |      |   |                    |   |      3,236,605                                             |   |       3,236                                             |   |      362,836                                             |   |                     - |   |       (637,904)                  |   |  (271,832)                                                                       |
|---------------------------------------------------------------------|-----------|--------|-------------------------|--------|-------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Common      shares issued for cash                                  | 26-Feb-98 |   |  $  0.50 |   |            20,000            |   |             20            |   |          9,980                       |   |                                                                                                                      |   |                                                           |   |      10,000                                                  |
| Common      shares issued for services                              | 26-Feb-98 |   |  $  0.50 |   |              8,000 |   |               8 |   |          3,992                       |   |                                                                                                                      |   |                                                           |   |        4,000                                       |
| Common      shares issued for cash                                  | 11-May-98 |   |  $  0.50 |   |            64,000            |   |             64            |   |        31,936                                  |   |                                                                                                                      |   |                                                           |   |      32,000                                                  |
| Common      shares issued for cash                                  | 30-Sep-98 |   |  $  0.50 |   |            30,000            |   |             30            |   |        14,970                                  |   |                                                                                                                      |   |                                                           |   |      15,000                                                  |
| Common      shares issued for services                              | 21-Dec-98 |   |  $  0.50 |   |              3,000 |   |               3 |   |          1,497                       |   |                                                                                                                      |   |                                                           |   |        1,500                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |       (220,547)                  |   |  (220,547)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 1998                                     |      |   |                    |   |      3,361,605                                             |   |       3,361                                             |   |      425,211                                             |   |                     - |   |       (858,451)                  |   |  (429,879)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Common      shares issued for cash                                  | 14-Apr-98 |   |  $  0.50 |   |            12,000            |   |             12            |   |          5,988                       |   |                                                                                                                      |   |                                                           |   |        6,000                                       |
| Common      shares issued for cash                                  | 15-Sep-98 |   |  $  0.50 |   |              8,000 |   |               8 |   |          3,992                       |   |                                                                                                                      |   |                                                           |   |        4,000                                       |
| Common      shares issued for services                              | 15-Sep-99 |   |  $  0.50 |   |              8,000 |   |               8 |   |          3,992                       |   |                                                                                                                      |   |                                                           |   |        4,000                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |       (154,943)                  |   |  (154,943)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 1999                                     |      |   |                    |   |      3,389,605                                             |   |       3,389                                             |   |      439,183                                             |   |                     - |   |    (1,013,394)                                  |   |  (570,822)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Common      shares issued for services                              | 28-Mar-00 |   |  $  0.25 |   |         290,000                             |   |          290                             |   |        72,210                                  |   |                                                                                                                      |   |                                                           |   |      72,500                                                  |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |       (231,985)                  |   |  (231,985)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 2000                                     |      |   |                    |   |      3,679,605                                             |   |       3,679                                             |   |      511,393                                             |   |                     - |   |    (1,245,379)                                  |   |  (730,307)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |          (80,558) |   |     (80,558)                                                      |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 2001                                     |      |   |                    |   |      3,679,605                                             |   |       3,679                                             |   |      511,393                                             |   |                     - |   |    (1,325,937)                                  |   |  (810,865)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |          (16,760) |   |     (16,760)                                                      |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 2002                                     |      |   |                    |   |      3,679,605                                             |   |       3,679                                             |   |      511,393                                             |   |                     - |   |    (1,342,697)                                  |   |  (827,625)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |          (18,063) |   |     (18,063)                                                      |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 2003                                     |      |   |                    |   |      3,679,605                                             |   |       3,679                                             |   |      511,393                                             |   |                     - |   |    (1,360,760)                                  |   |  (845,688)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |       (142,763)                  |   |  (142,763)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 2004                                     |      |   |                    |   |      3,679,605                                             |   |       3,679                                             |   |      511,393                                             |   |                     - |   |    (1,503,523)                                  |   |  (988,451)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      Income / (Loss)                                            |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |         773,675        |   |    773,675                                                             |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 2005                                     |      |   |                    |   |      3,679,605                                             |   |       3,679                                             |   |      511,393                                             |   |                     - |   |       (729,848)                  |   |  (214,776)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Common      shares issued for                                       |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
|      exercise      of warrants for debt    | 10-Jun-06 |   |  $  0.12 |   |         869,844                             |   |          870                             |   |      100,305                                             |   |                                                                                                                      |   |                                                           |   |    101,175                                                             |
| Common      shares issued for                                       |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
|      convertion      of related party debt | 10-Jun-06 |   |  $  0.04 |   |      5,800,000                                             |   |       5,800                                             |   |      226,200                                             |   |                                                                                                                      |   |                                                           |   |    232,000                                                             |
| Common      shares issued for services                              | 10-Jun-06 |   |  $  0.04 |   |         300,000                             |   |          300                             |   |        11,700                                  |   |                                                                                                                      |   |                                                           |   |      12,000                                                  |
| Common      shares issued for services                              | 30-Sep-06 |   |  $  0.04 |   |            10,000            |   |             10            |   |              390 |   |                                                                                                                      |   |                                                           |   |            400                 |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      (Loss)                                                     |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |       (130,799)                  |   |  (130,799)                                                                       |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 2006                                     |      |   |                    |   |    10,659,449                                                        |   |     10,659                                                        |   |      849,988                                             |   |                     - |   |       (860,647)                  |   |               - |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Common      shares issued for services                              | 15-Jun-07 |   |  $  0.01 |   |      1,050,000                                             |   |       1,050                                             |   |          9,450                       |   |                                                                                                                      |   |                                                           |   |      10,500                                                  |
| Common      shares issued for services                              | 01-Oct-07 |   |  $  0.05 |   |         618,000                             |   |          618                             |   |        30,282                                  |   |                                                                                                                      |   |                                                           |   |      30,900                                                  |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Net      Income / (Loss)                                            |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |          (63,206) |   |     (63,206)                                                      |
|                                                                |      |   |                    |   |                                                                                |   |                                                                                  |   |                                                                              |   |                                                                                                                      |   |                                                           |   |                                                                                  |
| Balance,      December 31, 2007                                     |      |   |                    |   |    12,327,449                                                        |   |  $      12,327                                                                   |   |  $  889,720                                                        |   |  $                 -            |   |  $   (923,853)                             |   |  $(21,806)                                                                       |

----

----

----

|   | · | On      June 10, 2006, the Company issued 469,844 shares of common stock to the      CEO as a result of his exercise of an option to purchase such shares at      $0.0025 per share, or $1,175.  The purchase price was paid by      the cancellation of indebtedness from the Company to the CEO in an equal      amount. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      June 10, 2006, the Company issued 400,000 shares of common stock to the      CEO as a result of his exercise of an option to purchase such shares at      $0.25 per share, or $100,000.  The purchase price was paid by      the cancellation of indebtedness from the Company to the CEO in an equal      amount. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      June 10, 2006, the Company issued 5,800,000 shares of common stock to the      CEO in satisfaction of $232,000 of indebtedness from the Company to CEO,      or $0.04 per share. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | On      June 10, 2006, the Company issued 300,000 shares of common stock to six      unrelated parties for services rendered to the Company.  The      shares were valued at $0.04 pershare. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      September 30, 2006, the Company issued 10,000 shares of common stock to an      unrelated person for services rendered to the Company.  The      shares were valued at $0.04 pershare. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      June 15, 2007 the Company issued 1,050,000 common shares at $0.01 for      professional consulting services of$10,500. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      October 1, 2007 the Company issued 440,000 common shares to four board      members for services in lieu of cash at $0.05 per share or $22,000 and      178,000 common shares at $0.05 per share to convert accounts payable of      $8,900. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Warrants      Outstanding at December 31, 2004       |   |   | 1,169,844 |   |
|------------------------------------------------------------|--------|--------|-----------|--------|
|  Less: Warrants      Issued/Exercised            |   |   | 0         |   |
|  Less: Warrants      Expired                     |   |   | 0         |   |
|                                                       |   |   |      |   |
|  Total Warrants      outstanding at December 31, 2005 |   |   | 1,169,844 |   |
|                                                       |   |   |      |   |
|  Less: Warrants      Exercised                        |   |   | 869,844   |   |
|  Less: Warrants      Expired                     |   |   | 0         |   |
|                                                       |   |   |      |   |
|  Total Warrants      Outstanding at December 31, 2006 |   |   | 300,000   |   |

----

|        |   | Warrants Outstanding |    |   | ExercisePrice |   | ExpirationDate |
|-------------|--------|---------------------------|---------|--------|---------------|--------|----------------|
|        |   |                      |    |   |          |   |           |
|        |   |                      | 140,000 |   |          | $ 0.50 |           |  19-Oct-2008 |
|        |   |                      | 160,000 |   |          | $ 0.50 |           |  08-Apr-2010 |
|        |   |                      |    |   |          |   |           |   |   |
|  Total |   |                      | 300,000 |   |          |   |           |   |   |

----

----

|   Year Ended December      31,     |   | 2007   |    |    | 2006   |   |
|----------------------------------------------|--------|--------|---------|---------|--------|--------|
|  Deferred Tax      Asset           |   | $      | 12,937  |    |   | $      | 28,776 |   |
|  Valuation      Allowance               |   |   | (12,937 | )  |   |   | (28,776 | ) |
|  Current Taxes      Payable   |   |   | 0.00    |    |   |   | 0.00 |   |
|  Income Tax      Expense           |   | $      | 0.00    |    |   | $      | 0.00 |   |

|  Year        |   | Amount |     |  Expiration |
|-------------------|--------|--------|----------|------------------|
|  1994        |   | $      | 60,292   |             |  2014 |
|  1995        |   |   | 199,109  |             |  2015 |
|  1996        |   |   | 125,697  |             |  2016 |
|  1997        |   |   | 175,534  |             |  2017 |
|  1998        |   |   | 220,547  |             |  2018 |
|  1999   |   |   | 154,943  |             |  2019 |
|  2000   |   |   | 231,985  |             |  2020 |
|  2001   |   |   | 80,558   |             |  2021 |
|  2002        |   |   | 16,760   |             |  2022 |
|  2003        |   |   | 18,063   |             |  2023 |
|  2004        |   |   | 142,763  |             |  2024 |
|  2005        |   |   | (773,675 | )                |  2025 |
|  2006        |   |   | 130,799  |             |  2026 |
|  2007        |   |   | 63,206   |             |  2027 |
|              |   |   |     |             |   |
|  Total  |   | $      | 923,853  |             |   |

----

----

|  Name                       |   | Age    |   |  Positions and      Offices Held |
|----------------------------------|--------|--------|--------|---------------------------------------|
|  Dr. Kiril      Pandelisev  |   |   | 57     |                                  |  President/CEO/Director |
|  Charlie      Searock       |   |   | 71     |                                  |  Director |
|  Don      Jackson           |   |   | 73     |                                  |  Director |
|  Shariar      Motakef  |   |   | 50     |                                  |  Director |

----

----

|  Name                           |   | Number of Total      Shares |      |   | % of      Shareholdings |
|--------------------------------------|--------|-----------------------------|-----------|--------|-------------------------|
|  Dr. Kiril      Pandelisev      |   |                        | 8,189,844 |   |                    |   | 66% |
|  Charlie      Searock           |   |                        | 110,000   |   |                    |   | .09% |
|  Dr. Don      Jackson           |   |                        | 110,000   |   |                    |   | .09% |
|  Dr. Shariar      Motakef  |   |                        | 110,000   |   |                    |   | .09% |

----

----

| 3.1  |  Articles      ofIncorporation    (1) |
|-----------|----------------------------------------------------------------|

| 3.2  |  By-laws    (1) |
|-----------|------------------------------------------|

| 14  | Code of      Ethics |
|----------|---------------------|

| 31  |  Certification      pursuant to Section 302 of the Sarbanes-Oxley At of  2002 |
|----------|------------------------------------------------------------------------------------|

| 32  |  Certification      pursuant to Title 18 Section1350 |
|----------|-----------------------------------------------------------|

| (1) | Incorporated      by reference to our Form 10SB (SEC File No.      ____________________). |
|-----|-------------------------------------------------------------------------------------------|

----

|                      | CRC      CRYSTAL RESEARCH CORPORATION |                                                 |
|---------------------------|---------------------------------------|------------------------------------------------------|
|                      |                                  |                                                 |   |
| Date:      March 26, 2008 | By:                                   | /s/         Dr. Kiril      Pandelisev |   |
|                      |                                  | Dr.      Kiril Pandelisev                            |   |
|                      |                                  | President,      Chief Executive Officer,             |   |
|                      |                                  |  and      Director                              |   |

|                      |   |                                           |   |
|---------------------------|--------|------------------------------------------------|--------|
| Date:      March 26, 2008 | By:    | /s/        Dr. Kiril      Pandelisev |   |
|                      |   | President,      Chief Executive Officer,       |   |
|                      |   |  and      Director                        |   |
|                      |   |                                           |   |

----