----

**FORM      10-KSB/A**

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| x | Annual                Report under Section 13 or 15 (d) of The Securities Exchange Act                of 1934 |
|---|---------------------------------------------------------------------------------------------------------------|

| o | Transition                Report under Section 14 or 15 (d) of The Securities Exchange Act                of                1934 |
|---|----------------------------------------------------------------------------------------------------------------------------------|

**NaturalNano,      Inc.**

| **Nevada**                             |   | **000-49901**                        |   | **87-0646435**                     |
|---------------------------------------------|--------|--------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction |   | (Commission                File No.) |   | (I.R.S.                Employer    |
| of                incorporation)            |   |                                 |   | Identification                No.) |

**150      Lucius Gordon Drive, Suite 115**

**West      Henrietta, New York 14586**

** **

**(585) 214-8005**

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**Table      of Contents**

|                                                                                                        |   |                                                                                                                                                                         | **Page** |
|--------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                   |   |                                                                                                                                                                         |     |
| **EXPLANATORY                  NOTE**                                                                  |   | 3                                                                                                                                                                            |
|                                                                                                   |   |                                                                                                                                                                         |
| **PART                  II.**                                                                          |   |                                                                                                                                                                         |
|                                                                                                   |   |                                                                                                                                                                         |
| Item                  5. Market for Common Stock and Related Stockholder                  Matters |   | 3                                                                                                                                                                            |
|                                                                                                   |   |                                                                                                                                                                         |
| Item                  6. Plan of Operation                                                        |   | 4                                                                                                                                                                            |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
| Item                  7. Financial Statements                                                          |   | 8                                                                                                                                                                            |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
|                                                                                                   |   | Report                  of Independent Registered Public Accounting Firm                                                                                                     |     | F-1 |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
|                                                                                                   |   | Consolidated                    Balance Sheets at December                    31, 2005 and 2004                                                                              |     | F-2 |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
|                                                                                                   |   | Consolidated                  Statements of Operations for the year ended December 31,                  2005                                                            |     |   |
|                                                                                                   |   | and                  for the period from December 22, 2004 (inception) to December 31,                  2004                  and                                            |     |   |
|                                                                                                   |   | the                  cumulative period from December 22, 2004 (inception) to December                  31,                  2005                                             |     | F-3 |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
|                                                                                                   |   | Consolidated                  Statement of Stockholders’ Equity for the year ended                                                                                     |     |   |
|                                                                                                   |   | December                  31, 2005 and for the period from December 22, 2004 (inception)                  to                                                            |     |   |
|                                                                                                   |   | December                  31, 2004 and the                  cumulative period from December 22, 2004 (inception) to December                  31,                  2005 |     | F-4 |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
|                                                                                                   |   | Consolidated                  Statements of Cash Flows for the year ended December 31, 2005                  and                                                        |     |   |
|                                                                                                   |   | for the                period from                December 22, 2004 (inception) to December 31, 2004 and the                                                                 |     |   |
|                                                                                                   |   | cumulative                  period from December 22, 2004 (inception) to December 31,                  2005                                                                  |     | F-5 |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
|                                                                                                   |   | Notes                  to Condensed Consolidated Financial Statements                                                                                                        |     | F-6 |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
| Item                  8A. Controls and Procedures                                                      |   | 9                                                                                                                                                                            |
|                                                                                                   |   |                                                                                                                                                                         |
| **PART                  III. OTHER INFORMATION**                                                  |   |                                                                                                                                                                         |
|                                                                                                   |   |                                                                                                                                                                         |
| Item                13. Exhibits                                                             |   | 11                                                                                                                                                                           |
|                                                                                                   |   |                                                                                                                                                                         |     |   |
| **SIGNATURES**                                                                                         |   | 13                                                                                                                                                                           |

----

**EXPLANATORY      NOTE**

| (a) | to                reflect the correct aggregate market value of the outstanding shares                of                our equity securities held by non-affiliates on the cover                page; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | in                Part II, Item 5 (“Market for Common Equity and Related Stockholder                Matters”), to reflect the correct number of shares of our common stock                outstanding on December 31, 2005; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | in                Part II, Item 6 (“Plan of Operations”), to expand the discussion of future                cash needs and projections; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | in                Part II, Item 7 (“Financial Statements”), to make certain changes to our                financial statements including (i) expansion and clarification of                certain                footnotes and (ii) changes to the Balance Sheet, Statement of Operations,                Statement of Stockholders Equity and the Statement of Cash Flows;                with                respect to the accounting for: certain share-based compensation expense,                the impact of changing the expiration date of a warrant granted to                SBI                USA, the recognition of income upon receipt of the Atlas Mining warrant,                and for the issuance of common stock for services in the first quarter                of                2006; and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | in Part II, Item 8A ("Controls and              Procedures"), to disclose our conclusions regarding the effectiveness              of              our disclosure controls and procedures as of December 31,              2005. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | As                Initially Reported |      | Amendment                #1 |   | Amendment                #2 |   | Restated |    |
|--------------------------------------------------------------|--------|--------------------------------------|-----------|-----------------------------|--------|-----------------------------|--------|----------|---------|
| For                the twelve months ended December 31, 2005 |   | $                                    | 2,645,156 |                        | $      | 72,151                      |   | $   | (50,925 | ) | $ | 2,666,382 |   |
| For                the three months ended March 31, 2006     |   | $                                    | 754,904   |                        | $      | 276,018                     |   | $        | 602,338 |   | $ | 1,633,260 |   |
| For                the three months ended June 30, 2006      |   | $                                    | 1,515,469 |                        | $      | 145,700                     |   |     |    |   | $ | 1,661,169 |   |

**PART      II**

**ITEM      5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER      MATTERS**

**Market      Information**

----

**Dividend      Policy**

**Recent      Sales of Unregistered Securities**

**ITEM      6. PLAN OF OPERATION**

**Note      Regarding Forward-Looking Statements**

|   | · | continued                development of our technology; |
|--------|--------|---------------------------------------------------------|
|   | · | dependence                on key personnel;             |
|   | · | competitive                factors;                     |
|   | · | the                operation of our business; and       |
|   | · | general                economic conditions.             |

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**General**

**Recent      Developments**

|  ·   | Cathy                Fleischer, Ph.D. has joined the company as Chief Technology Officer                and                will further augment the development work in progress currently under                the                direction of Dr. Aaron Wagner. Dr. Fleischer has extensive experience                in                polymers and was formerly R&D Director at Eastman Kodak’s polarizer                films group. |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ·   | Initial                tests performed at Cornell University indicate that adding specialty                treated halloysite nanotubes improves polymer performance. The test                results show that halloysite nanotubes provide strengthening improvements                in certain polymers including those that are widely used in consumer                products such as casings used in many electronic products like                televisions, cell phones, mp3 players and numerous other devices.                Other                potential markets would include automotive, aerospace and packaging                where                improvement in strength and thermal properties of polymers is                needed. |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ·   | We                equipped our laboratory with capital investments in analytical                equipment, including an electron microscope. We expect that our core                research in metallization, elution and encapsulation technologies                will                allow us to identify new commercial opportunities and assist us in                commercializing our intellectual property                portfolio. |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ·   | We                joined the National Composite Center to help further our commercialization                activities for utilizing halloysite nanotubes in nanocomposite materials                . |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ·   | Our                Scientific Advisory Board has been expanded by the recent additions                of Dr.                Duncan Moore, a former White House Advisor, and John Hickman, president                of                PlasTech Consulting and a renowned plastics industry expert. We anticipate                that the insights and connections from our scientific advisors will                help                accelerate commercialization of our technologies into industry and                government markets. |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Milestones      for the Period through August 31, 2007**

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**Research      and Development and Capital Expenditures**

 

**Commercialization      Strategy**

**Employees**

**Financing      Activities**

----

**Cash      Requirements**
**and      Liquidity**

| Cash                on hand at August 31, 2006                                                                                                                                                              |   | $      | 535,000       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|
| Available                on Technology Innovations Line of Credit                                                                                                                                           |   | $      | 700,000       |   |
|                                                                                                                                                                                                        |   |   |               |   |
| **Projected                cash uses for the twelve-month period ending August                2007**                :                                                                                       |   |   |          |   |
|                                                                                                                                                                                                        |   |   |          |   |
| Research                and product development expenses                                                                                                                                                    |   | $      | 1,100,000     |   |
| Capital                expenditures for research and development                                                                                                                                            |   |   | 550,000       |   |
| Collaborative                research & licensing agreements                                                                                                                                            |   |   | 335,000       |   |
| General                and administrative expenses including:administrative                salaries and benefits, office, rent, legal expenses,                accounting, investor relations and marketing |   |   | 1,600,000     |   |
| **Total                estimated cash outflows for the twelve-month period****through August                2007**                                                                                     |   | **$**  | **3,585,000** |   |

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**ITEM      7. FINANCIAL STATEMENTS**

**NATURALNANO,      INC.**

**(A      Development Stage Company)**

**CONSOLIDATED      FINANCIAL STATEMENTS **

**DECEMBER      31, 2005 **

**CONTENTS**

| **FOR                THE YEAR ENDED DECEMBER 31, 2005**                                                                                                                                                                                                                                                                                                                        |   |   |                      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |                      |   |
| Report                of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                                         |   |   | F-1                       |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |                      |   |
| Consolidated                Balance Sheet at December 31, 2005 and 2004                                                                                                                                                                                                                                                                                                        |   |   | F-2                       |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |                      |   |
| Consolidated                Statement of Operations for the year ended December 31, 2005 and                for                the period from December 22, 2004 (inception) to December 31, 2004                and                the                cumulative period from December 22, 2004 (inception) to December                31,                2005                 |   |   | F-3                       |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |                      |   |
| Consolidated                Statement of Stockholders’ Equity for the year ended December 31, 2005 and                for                the period from December 22, 2004 (inception) to December 31, 2004                and                the                cumulative period from December 22, 2004 (inception) to December                31,                2005 |   |   | F-4                       |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |                      |   |
| Consolidated                Statement of Cash Flows for the year ended December 31, 2005 and                for                the period from December 22, 2004 (inception) to December 31, 2004                and                the                cumulative period from December 22, 2004 (inception) to December                31,                2005                 |   |   | F-5                       |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |                      |   |
| Notes                to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                      |   |   | F-6                - F-16 |   |

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**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

|                                                                                                                                                                                                                            |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| **/s/                GOLDSTEIN GOLUB KESSLER LLP**                                                                                                                                                                              |   |   |        |
| New                York, New York                                                                                                                                                                                               |   |   |        |
|                                                                                                                                                                                                                            |   |   |   |
| February                8, 2006, except for Note 1 “Liquidity”as                to which the                date is October 13, 2006 and Note 2, as to                which the date is October 20, 2006. |   |   |        |

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**NaturalNano,          Inc.**

**CONSOLIDATED      BALANCE SHEET**

|                                                                                                         |   | **December31,                  2005****(Restated)** |               | **December31,                2004** |   |
|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------------------|-------------------------------------|--------|
| **Assets**                                                                                                   |   |                                                |               |                                |   |   |   |
| Current                assets:                                                                               |   |                                                |               |                                |   |   |   |
| Cash                and cash equivalents                                                                     |   | $                                                   | 1,718,365          |                                |   |   |   |
| Prepaid                halloysite materials                                                                  |   |                                                | 249,650            |                                | $      | 125,000 |   |
| Other                current assets                                                                          |   |                                                | 34,704             |                                |   |  |   |
| Due                from related parties                                                                      |   |                                                | 40,748             |                                |   |       |   |
| Total                current assets                                                                          |   |                                                | 2,043,467          |                                |   | 125,000 |   |
|                                                                                                         |   |                                                |                    |                                |   |   |   |
| Atlas                Mining warrant                                                                          |   |                                                | 270,000            |                                |   |  |   |
| Capitalized                License                                                                           |   |                                                | 314,000            |                                |   |  |   |
| Property                and equipment, net                                                                   |   |                                                | 34,752             |                                |   |       |   |
| Total                Assets                                                                                  |   | $                                                   | 2,662,219          |                                | $      | 125,000 |   |
|                                                                                                         |   |                                                |               |                                |   |   |   |
| **Liabilities                and Stockholders' Equity**                                                      |   |                                                |               |                                |   |   |   |
|                                                                                                         |   |                                                |               |                                |   |   |   |
| **Liabilities**                                                                                              |   |                                                |               |                                |   |   |   |
| Current                liabilities:                                                                          |   |                                                |               |                                |   |   |   |
| Accounts                payable                                                                              |   | $                                                   | 286,433            |                                |   |   |   |
| Accrued                payroll                                                                               |   |                                                | 73,164             |                                |   |   |   |
| Accrued                expenses                                                                              |   |                                                | 148,316            |                                |   |   |   |
| Due                to related parties                                                                        |   |                                                |     |                                | $      | 32,336 |   |
| Total                current liabilities                                                                     |   |                                                | 507,913            |                                |   | 32,336 |   |
|                                                                                                         |   |                                                |                    |                                |   |   |   |
| Other                liability                                                                               |   |                                                | 28,500             |                                |   |      |   |
| Total                Liabilities                                                                             |   |                                                | 536,413            |                                |   | 32,336 |   |
|                                                                                                         |   |                                                |               |                                |   |   |   |
| **Stockholders’                Equity**                                                                |   |                                                |               |                                |   |   |   |
| Preferred                Stock - no par value, 10,000,000                shares authorized, no shares issued |   |                                                |                    |                                |   |  |   |
| Common                stock - $.001 par value                                                                |   |                                                |               |                                |   |   |   |
| Authorized                200,000,000 shares (a)                                                             |   |                                                |               |                                |   |   |   |
| Issued                and outstanding 120,760,040 and 20,000,000                shares, respectively         |   |                                                | 120,760            |                                |   | 20,000 |   |
| Additional                paid in capital (a)                                                                |   |                                                | 4,678,764          |                                |   | 80,000 |   |
| Deficit                accumulated in the development stage                                                  |   |                                                | (2,673,718         | )                                   |   | (7,336 | ) |
| Total                stockholders' equity                                                                    |   |                                                | 2,125,806          |                                |   | 92,664 |   |
| Total                liabilities and stockholders' equity                                                    |   | $                                                   | 2,662,219          |                                | $      | 125,000 |   |

| (a)   | Retroactively                adjusted to reflect the recapitalization on November 29, 2005 and                the two-for-one stock split on February 8,                2006. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**NaturalNano,        Inc.**

**CONSOLIDATED      STATEMENT OF OPERATIONS**

|                                                             |   | **For                  the****year****ended****December                  31, 2005****(Restated)** | ** **             | **From                    inception****December                    22, 2004****through**** ****December                    31, 2004** | ** ** | **From                  inception****December                  22, 2004****through**** ****December                  31, 2005****(Restated)** |   |
|------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| **Income:**                                                      |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| Sample                revenue                                    |   | $                                                                                                 | 500                    |                                                                                                                                       |       |                                                                                                                                                    |   | $ | 500 |   |
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| **Operating                expenses:**                           |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| Research                and development (a)                      |   |                                                                                              | 660,284                |                                                                                                                                       | $          | 5,000                                                                                                                                              |   |   | 665,284 |   |
| General                and administrative (b)                    |   |                                                                                              | 2,290,733              |                                                                                                                                       |       | 2,336                                                                                                                                              |   |   | 2,293,069 |   |
|                                                             |   |                                                                                              | 2,951,017              |                                                                                                                                       |       | 7,336                                                                                                                                              |   |   | 2,958,353 |   |
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
|  **Loss                from Operations**                    |   |                                                                                              | (2,950,517             | )                                                                                                                                          |       | (7,336                                                                                                                                             | )      |   | (2,957,853 | ) |
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| **Other                income:**                                 |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| Interest                income, net                              |   |                                                                                              | 14,135                 |                                                                                                                                       |       |                                                                                                                                                    |   |   | 14,135 |   |
| Income                from Atlas Mining                          |   |                                                                                              | 180,000                |                                                                                                                                       |       |                                                                                                                                               |   |   | 180,000 |   |
| Investment                income                                 |   |                                                                                              | 90,000                 |                                                                                                                                       |       |                                                                                                                                     |   |   | 90,000 |   |
|                                                             |   |                                                                                              | 284,135                |                                                                                                                                       |       |                                                                                                                                                    |   |   | 284,135 |   |
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| **Net                loss**                                      |   |                                                                                              | ($2,666,382            | )                                                                                                                                          |       | ($                7,336                                                                                                                            | )      |   | ($2,673,718 | ) |
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| **Loss                per common share - basic and diluted (c)** |   |                                                                                              | ($                0.03 | )                                                                                                                                          |       | ($                0.00                                                                                                                             | )      |   |  |   |
|                                                             |   |                                                                                              |                        |                                                                                                                                       |       |                                                                                                                                                    |   |   |  |   |
| **Weighted                average shares outstanding (c)**       |   |                                                                                              | 101,565,773            |                                                                                                                                       |       | 20,000,000                                                                                                                                         |   |   |  |   |

| (a)   | In                2005, research and development expense includes options issued as                stock-based compensation of $77,280. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| (b)   | In                  2005 general and administrative expense includes options issued                  as                  stock-based compensation of                  $192,802. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)                | Retroactively                  adjusted to reflect the two-for-one stock split on February 8,                  2006. |
|-------------------------|----------------------------------------------------------------------------------------------------------------------|

----

**NaturalNano,        Inc.**

**CONSOLIDATED      STATEMENT OF STOCKHOLDERS’ EQUITY**

**Period      from December 22, 2004 (inception) to December 31, 2005**

|                                                                                                  |       | **Common                Stock** | ** **   | **Additional**    | ** ** | **Deficit****Accumulated****During                      the** | ** ** | ** **           | ** **   |
|-------------------------------------------------------------------------------------------------------|------------|---------------------------------|--------------|-------------------|------------|---------------------------------------------------------------|------------|----------------------|--------------|
|                                                                                                  | ** ** | **Shares****(a)**               | ** **   | **Amount****(a)** | ** ** | **Paid-inCapital                (a)**                         | ** ** | **DevelopmentStage** | ** **   | **Stockholders’Equity** |   |
| **December                22, 2004 (inception)**                                                      |       |                            |         |              |       |                                                          |       |                 |         |   |   |   |   |   |   |   |
| 20,000,000                shares issued for cash                @ $.005 per share                     |       |                            | 20,000,000   |              | $          | 20,000                                                        |       | $                    | 80,000       |   |   |   |   | $ | 100,000 |   |
|                                                                                                  |       |                            |              |              |       |                                                               |       |                 |              |   |   |  |   |   |  |   |
| Net                loss from inception through December 31, 2004                                      |       |                            |    |              |       |                                                     |       |                 |    |   |   | ($                7,336 | ) |   | (7,336 | ) |
| **Balance                at December 31, 2004**                                                       |       |                            | 20,000,000   |              |       | 20,000                                                        |       |                 | 80,000       |   |   | (7,336 | ) |   | 92,664 |   |
|                                                                                                  |       |                            |              |              |       |                                                               |       |                 |              |   |   |  |   |   |  |   |
| Warrant                issued for 4,500,000 shares of                common stock for services        |       |                            |         |              |       |                                                          |       |                 | 273,442      |   |   |   |   |   | 273,442 |   |
|                                                                                                  |       |                            |              |              |       |                                                               |       |                 |              |   |   |  |   |   |  |   |
| Vesting                of stock options for services                                                  |       |                            |         |              |       |                                                          |       |                 |              |   |   |   |   |   |  |   |
| @                $0.05 per share                                                                      |       |                            |              |              |       |                                                               |       |                 | 192,916      |   |   |  |   |   | 192,916 |   |
| @                $1.68 per share                                                                      |       |                            |              |              |       |                                                               |       |                 | 77,166       |   |   |  |   |   | 77,166 |   |
|                                                                                                  |       |                            |              |              |       |                                                               |       |                 |              |   |   |  |   |   |  |   |
| Shares                issued pursuant to convertible bridge                notes on November 29, 2005 |       |                            | 20,939,200   |              |       | 20,939                                                        |       |                 | 4,135,061    |   |   |   |   |   | 4,156,000 |   |
|                                                                                                  |       |                            |         |              |       |                                                          |       |                 |         |   |   |   |   |   |   |   |
| Recapitalization                on November                29, 2005                                   |       |                            | 79,820,840   |              |       | 79,821                                                        |       |                 | (79,821      | ) |   |  |   |   | 0 |   |
|                                                                                                  |       |                            |              |              |       |                                                               |       |                 |              |   |   |  |   |   |  |   |
| Net                loss for twelve months ending                December 31, 2005                     |       |                            |    |              |       |                                                     |       |                 |    |   |   | (2,666,382 | ) |   | (2,666,382 | ) |
|                                                                                                  |       |                            |              |              |       |                                                               |       |                 |              |   |   |  |   |   |  |   |
| **Balance                at December 31, 2005 (Restated)**                                            |       |                            | 120,760,040  |              | $          | 120,760                                                       |       | $                    | 4,678,764    |   |   | ($                2,673,718 | ) | $ | 2,125,806 |   |

| (a)   | Retroactively                adjusted to reflect the                following; |
|-----------------|--------------------------------------------------------------------------------|

| (i)                |  the                two-for-one stock split effective February 8, 2006                and |
|-------------------------|------------------------------------------------------------------------------------------------|

| (ii)   |  the                effect of the recapitalization on November 29,                2005. |
|------------------|----------------------------------------------------------------------------------------------|

----

**NaturalNano,        Inc.**

**CONSOLIDATED      STATEMENT OF CASH FLOWS**

|                                                                                                                                          |   |   |  **For                  the****year****ended****December                  31, 2005****(Restated)** | ** ** | ** ** | **From                      inception****December                      22,****2004****through****December                      31,****2004** | ** ** | ** ** | **From                  inception****December                  22, 2004****through****December                  31,****2005****(Restated)** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                flows from operating activities:**                                                                                      |   |   |                                                                                                    |       |       |                                                                                                                                         |       |       |                                                                                                                                        |   |
| Net                loss                                                                                                                       |   |   | ($2,666,382                                                                                             | )          |       | ($7,336                                                                                                                                      | )          |       | ($2,673,718                                                                                                                                 | )      |
| Adjustments                to reconcile net loss to net cash used                in operating activities:                                     |   |   |                                                                                                         |       |       |                                                                                                                                         |       |       |                                                                                                                                             |   |
| Depreciation                                                                                                                                  |   |   | 4,748                                                                                                   |       |       |                                                                                                                                         |       |       | 4,748                                                                                                                                       |   |
| Issuance                of warrant for services                                                                                               |   |   | 273,442                                                                                                 |       |       |                                                                                                                                         |       |       | 273,442                                                                                                                                     |   |
| Vesting                of stock options                                                                                                       |   |   | 270,082                                                                                                 |       |       |                                                                                                                                         |       |       | 270,082                                                                                                                                     |   |
| Receipt                of Atlas Mining warrant                                                                                                |   |   | (180,000                                                                                                | )          |       |                                                                                                                                         |       |       | (180,000                                                                                                                                    | )      |
| Change                in market value of Atlas Mining warrant                                                                            |   |   | (90,000                                                                                                 | )          |       |                                                                                                                                         |       |       | (90,000                                                                                                                                     | )      |
| Changes                in operating assets and liabilities:                                                                                   |   |   |                                                                                                         |       |       |                                                                                                                                         |       |       |                                                                                                                                             |   |
| (Increase)                in prepaid halloysite materials                                                                                     |   |   | (124,650                                                                                                | )          |       | (125,000                                                                                                                                     | )          |       | (249,650                                                                                                                                    | )      |
| (Increase)                in other current assets                                                                                             |   |   | (34,704                                                                                                 | )          |       |                                                                                                                                         |       |       | (34,704                                                                                                                                     | )      |
| Increase                in accounts payable, accrued payroll                and accrued expenses                                              |   |   | 293,913                                                                                                 |       |       |                                                                                                                                         |       |       | 293,913                                                                                                                                     |   |
| Increase                in other liability                                                                                                    |   |   | 28,500                                                                                                  |       |       |                                                                                                                                    |       |       | 28,500                                                                                                                                      |   |
| **Net                cash used in operating activities**                                                                                      |   |   | (2,225,051                                                                                              | )          |       | (132,336                                                                                                                                     | )          |       | (2,357,387                                                                                                                                  | )      |
| **Cash                flows from investing activities**                                                                                       |   |   |                                                                                                         |       |       |                                                                                                                                         |       |       |                                                                                                                                             |   |
| Purchase                of property and equipment                                                                                             |   |   | (39,500                                                                                                 | )          |       |                                                                                                                                              |       |       | (39,500                                                                                                                                     | )      |
| Purchase                of license                                                                                                            |   |   | (100,000                                                                                                | )          |       |                                                                                                                                         |       |       | (100,000                                                                                                                                    | )      |
| **Net                cash used in investing activities**                                                                                      |   |   | (139,500                                                                                                | )          |       |                                                                                                                                              |       |       | (139,500                                                                                                                                    | )      |
| **Cash                flows from financing activities:**                                                                                      |   |   |                                                                                                         |       |       |                                                                                                                                         |       |       |                                                                                                                                             |   |
| Advances                from related parties                                                                                                  |   |   | 409,451                                                                                                 |       |       | 32,336                                                                                                                                       |       |       | 441,787                                                                                                                                     |   |
| Repayment                of amounts due to related parties                                                                                    |   |   | (482,535                                                                                                | )          |       |                                                                                                                                         |       |       | (482,535                                                                                                                                    | )      |
| Issuance                of convertible notes                                                                                                  |   |   | 4,156,000                                                                                               |       |       |                                                                                                                                         |       |       | 4,156,000                                                                                                                                   |   |
| Issuance                of common stock                                                                                                       |   |   |                                                                                          |       |       | 100,000                                                                                                                                      |       |       | 100,000                                                                                                                                     |   |
| **Net                cash provided by financing activities**                                                                                  |   |   | 4,082,916                                                                                               |       |       | 132,336                                                                                                                                      |       |       | 4,215,252                                                                                                                                   |   |
| **Change                in cash and cash equivalents and****balance                at end of period**                                         |   | $      | 1,718,365                                                                                               |       | $          | 0                                                                                                                                            |       | $          | 1,718,365                                                                                                                                   |   |
|                                                                                                                                          |   |   |                                                                                                    |       |       |                                                                                                                                         |       |       |                                                                                                                                        |   |
| **Non-cash                investing and financing activities:**                                                                               |   |   |                                                                                                         |       |       |                                                                                                                                         |       |       |                                                                                                                                             |   |
| Common                shares issued for convertible notes                                                                                     |   | $      | 4,156,000                                                                                               |       |       |                                                                                                                                         |       | $          | 4,156,000                                                                                                                                   |   |
| Acquisition                of license through liabilities to                be settled with common stock, net of                $100,000 cash |   | $      | 214,000                                                                                                 |       |       |                                                                                                                                         |       | $          | 214,000                                                                                                                                     |   |
| Receipt              of services through liabilities to be settled              with common stock in 2006                                     |   | $      | 48,340                                                                                                  |       |       |                                                                                                                                         |       | $          | 48,340                                                                                                                                      |   |

----

**NaturalNano,      Inc.**

**(A      Development Stage Company)**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

|   | **1.** | **PRINCIPAL                BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING                POLICIES** |
|--------|--------|---------------------------------------------------------------------------------------------------|

**Basis      of Consolidation**

**Description      of the Business**

|   | · | material                additives for polymers, plastics and composites |
|--------|--------|-------------------------------------------------------------------------|
|   | · | cosmetics                and other personal care products               |

|   | · | absorbent                materials; and                     |
|--------|--------|-------------------------------------------------------------|
|   | · | pharmaceutical                and medical device additives. |

**Cash      Equivalents**

**Concentration      of Credit Risk**

**Liquidity**

----

**NaturalNano,        Inc.**

**(A        Development Stage Company)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**December      31, 2005**

**Research      and Development**

**Intangible      Assets**

**Property      and Equipment**

|                                          |   |   |   | Useful                Life |   |
|-----------------------------------------------|--------|--------|--------|----------------------------|--------|
| Furniture                and office equipment |   | $      | 26,079 |                       |   | 5                years |   |
| Computers                and software         |   |   | 13,421 |                       |   | 3                years |   |
|                                          |   |   | 39,500 |                       |   |  |   |
| Less                accumulated depreciation  |   |   | (4,748 | )                          |   |  |   |
|                                          |   |   |        |                       |   |  |   |
| Property                and equipment, net    |   | $      | 34,752 |                       |   |  |   |

**Deferred      Taxes**

**Loss      Per Share**

----

**NaturalNano,        Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

**Estimates**

**Stock      Split**

**Stock      Options**

*Accounting      for Stock*
*Issued*
*to      Employees*
*Accounting      for Stock-Based Compensation*

| **Net                loss as reported (Restated)**                     |   |   | ($2,666,382 | )      |
|------------------------------------------------------------------------|--------|--------|-------------|--------|
| Deduct:                Total stock-based employee compensation         |   |   |             |   |
| expense                determined under fair-value-based method        |   |   |             |   |
| for                all awards, net of related tax effects              |   |   | (316,051    | )      |
|                                                                   |   |   |             |   |
| **Pro                Forma net loss (Restated)**                       |   |   | ($2,982,433 | )      |
|                                                                   |   |   |             |   |
| Basic                and diluted loss per share as reported (Restated) |   |   | ($0.03      | )      |
| Basic                and diluted loss per share pro forma (Restated)   |   |   | ($0.03      | )      |

**Recent      Accounting Pronouncements**

*Share-Based      Payment*
** **

----

**NaturalNano,        Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

|   | **2.** | **RESTATEMENT                OF FINANCIAL STATEMENTS** |
|--------|--------|--------------------------------------------------------|

|                                                                                                                             |   | Net                Loss |          | Research                and Development |   | General                and Administrative |   | Other                (Income) |      |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------------|-----------------------------------------|--------|-------------------------------------------|--------|-------------------------------|-----------|
|                                                                                                                             |   |                    |          |                                    |   |                                      |   |                          |      |   |   |   |   |
| As                previously reported on December 31, 2005                                                                       |   | $                       | 2,645,156     |                                    | $      | 565,254                                   |   | $                             | 2,184,537 |   |   | ($104,135 | ) |
| Revision                of share-based compensation expense                                                                      |   |                    | 62,784        |                                    |   | 5,030                                     |   |                          | 57,754    |   |   |   |   |
| Reverse                amortization of Atlas warrant                                                                             |   |                    | 90,000        |                                    |   | 90,000                                    |   |                          |      |   |   |   |   |
| Other                income from Atlas Mining                                                                                    |   |                    | (180,000      | )                                       |   |                                      |   |                          |      |   |   | (180,000 | ) |
| Increase                in the fair market value of the SBI warrant                upon extension of expiration date             |   |                    | 48,442        |                                    |   | 0                                         |   |                          | 48,442    |   |   |   |   |
| Operating              expenses - as Restated                                                                                    |   |                    |          |                                    | $      | 660,284                                   |   | $                             | 2,290,733 |   |   | ($284,135 | ) |
| **Net                Loss as restated on December 31, 2005**                                                                     |   | **$**                   | **2,666,382** |                                    |   |                                      |   |                          |      |   |   |   |   |
|                                                                                                                             |   |                    |          |                                    |   |                                      |   |                          |      |   |   |   |   |
| Net                loss from inception, as reported, (December 22, 2004) through December                31,                2005 |   | $                       | 2,652,492     |                                    |   |                                      |   |                          |      |   |   |   |   |
| Adjustment                                                                                                                       |   |                    | 21,226        |                                    |   |                                      |   |                          |      |   |   |   |   |
| **Net                Loss from inception, restated,****(December                22, 2004) through December 31, 2005**            |   | **$**                   | **2,673,718** |                                    |   |                                      |   |                          |      |   |   |   |   |

----

**NaturalNano,          Inc.**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**December          31, 2005**

|                                                        |   | As                previously reported |       |  Adjustment |   | AsRestated |   |
|-------------------------------------------------------------|--------|---------------------------------------|------------|------------------|--------|------------|--------|
|                                                        |   |                                  |       |             |   |       |   |   |   |   |
| Total                current liabilities                    |   | $                                     | 335,573    |             | $      | 172,340    |   | $ | 507,913 |   |
|                                                        |   |                                  |       |             |   |       |   |   |   |   |
| Common                stock                                 |   | $                                     | 121,075    |             |   | ($315      | )      | $ | 120,760 |   |
| Additional                paid in capital                   |   |                                  | 4,829,563  |             |   | (150,799   | )      |   | 4,678,764 |   |
| Deficit                accumulated in the development stage |   |                                  | (2,652,492 | )                |   | (21,226    | )      |   | (2,673,718 | ) |
| Total                stockholders’ equity             |   | $                                     | 2,298,146  |             |   | ($172,340  | )      | $ | 2,125,806 |   |

|                                               |   | As                previously reported |        |  Adjustment |   | AsRestated |   |
|----------------------------------------------------|--------|---------------------------------------|-------------|------------------|--------|------------|--------|
|                                               |   |                                  |        |             |   |       |   |   |   |   |
| Weighted                average shares outstanding |   |                                  | 101,575,332 |             |   | (9,559     | )      |   | 101,565,773 |   |

| ·   | The                December 22, 2004 initial capital contribution, reflecting the two-for-one                stock split, has been revised to properly reflect the $0.005 per                common                share actually paid and as a result, the retro-active adjustment                for the                stock split has been eliminated from the                presentation. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                issuance of 314,700 shares of the Company’s common stock for services has                been reclassified as a liability at December 31, 2005 and will be                included                in equity in the first quarter of 2006. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other                changes to the Statement of Stockholders’ Equity are presented                below. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

----

**NaturalNano,        Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

|                                                                                                                                                                                |   | As                previously reported |        |  Adjustment |   | AsRestated |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-------------|------------------|--------|------------|--------|
|                                                                                                                                                                                |   |                                  |        |             |   |       |   |   |   |   |
| Warrant                issued for 4,500,000 shares of common stock for services reflecting                extension of expiration date                                              |   | $                                     | 225,000     |             | $      | 48,442     |   | $ | 273,442 |   |
|                                                                                                                                                                                |   |                                  |        |             |   |       |   |   |   |   |
| Vesting                of stock options for services @ $1.68                                                                                                                        |   | $                                     | 14,382      |             | $      | 62,784     |   | $ | 77,166 |   |
|                                                                                                                                                                                |   |                                  |        |             |   |       |   |   |   |   |
| Reclassification                of shares issued pursuant to convertible bridge notes presented separately                from Recapitalization on                November 29, 2005 |   | $                                     | 0           |             | $      | 4,156,000  |   | $ | 4,156,000 |   |
|                                                                                                                                                                                |   |                                  |        |             |   |       |   |   |   |   |
| Net                loss for twelve months ended December 31, 2005                                                                                                                   |   |                                  | ($2,645,156 | )                |   | ($21,226   | )      |   | ($2,666,382 | ) |

| ·   | The                conversion of $4,156,000 of convertible bridge notes to common stock                on                November 29, 2005. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Recognize                the future settlement of services, received in 2005 and settled in                2006                through the issuance of common stock, as a non-cash activity in the                amount                of $48,340. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Recognize                the common stock component of the purchase price in the acquisition                of the                Ambit license as a non-cash activity of $214,000. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | As                previously reported |        |  Adjustment |   | AsRestated |   |
|------------------------------------------------------|--------|---------------------------------------|-------------|------------------|--------|------------|--------|
|                                                 |   |                                  |        |             |   |       |   |   |   |   |
| Net                cash used in operating activities |   |                                  | ($2,011,051 | )                |   | ($214,000  | )      |   | ($2,225,051 | ) |
| Net                cash used in investing activities |   |                                  | (353,500    | )                |   | 214,000    |   |   | (139,500 | ) |

|   | **3.** | **COOPERATIVE                RESEARCH AGREEMENTS** |
|--------|--------|----------------------------------------------------|

| For                the year ending December 31, 2005 |   | $ | 62,569 |   |
|------------------------------------------------------|--------|---|--------|--------|

|   | **4.** | **RELATED                PARTY RESEARCH AGREEMENT** |
|--------|--------|-----------------------------------------------------|

* *

----

**NaturalNano,        Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

|   | **5.** | **AGREEMENTS                WITH TECHNOLOGY INNOVATIONS,                LLC** |
|--------|--------|-------------------------------------------------------------------------------|

|   | **6.** | **LICENSE                AGREEMENT** |
|--------|--------|--------------------------------------|

----

**NaturalNano,        Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

| **7.** | **TRANSACTIONS                WITH ATLAS MINING COMPANY** |
|--------|-----------------------------------------------------------|

|                                             |   | January                28, 2005 |                                                     | December                31, 2005 |   |
|--------------------------------------------------|--------|---------------------------------|----------------------------------------------------------|----------------------------------|--------|
| Risk-free                interest rate           |   |                            |                       3.2% |                             |   |                      4.3% |   |
| Expected                life of the warrant-days |   |                            |                  730                                |                             |   |   393 |   |
| Expected                stock price volatility   |   |                            |                      115%            |                             |   |                       86% |   |
| Expected                dividends                |   |                            | Zero                                                     |                             |   | Zero |   |

----

**NaturalNano,        Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

| **8.** | **INCOME                TAXES** |
|--------|---------------------------------|

|   | **9.** | **STOCKHOLDERS’                EQUITY** |
|--------|--------|-----------------------------------------------|

|                                                                                                 |   |   | CommonShares        |   |   | CommonStock                     |   |   | AdditionalPaid                In Capital  |   |   | AccumulatedDeficit  |   |   | Stockholders’Equity  |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------|--------|--------|--------------------------|--------|--------|---------------------------------|--------|
| CMI                equity outstanding at                November 29, 2005                            |   |   | 9,982,084                |   | $      | 9,982                                |   | $      | 357,483                                        |   |   | ($367,465                | )      | $      | 0                               |   |
| Issuance                of new shares to                NN stockholders                              |   |   | 89,838,756               |   |   | 89,839                               |   |   | 10,161                                         |   |   |                          |   |   | 100,000                         |   |
| Cancellation                of NN shares                as of  November                29, 2005 |   |   | (20,000,000              | )      |   | (20,000                              | )      |   | (80,000                                        | )      |   |                          |   |   | (100,000                        | )      |
| Elimination                of CMI accumulated                deficit                                 |   |   |      |   |   |        |   |   | (367,465                                       | )      |   | 367,465                  |   |   | 0                               |   |
| Recapitalization                                                                                     |   |   | 79,820,840               |   | $      | 79,821                               |   |   | ($79,821                                       | )      | $      | 0                        |   | $      | 0                               |   |

----

**NaturalNano,        Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

|   | **10.** | **STOCK-BASED                COMPENSATION PLAN** |
|--------|---------|--------------------------------------------------|

----

**NaturalNano,        Inc.**

**NOTES        TO CONSOLIDATED FINANCIAL STATEMENTS**

**December        31, 2005**

|   | **11.** | **CONVERTIBLE                BRIDGE NOTES** |
|--------|---------|---------------------------------------------|

| **12.** | **LEASE                OBLIGATION** |
|---------|-------------------------------------|

| For                each of the years ending December 31: |   |   |    |
|----------------------------------------------------------|--------|--------|---------|
| 2006                                                     |   | $      | 83,807  |   |
| 2007                                                     |   |   | 89,369  |   |
| 2008                                                     |   |   | 57,372  |   |
|                                                     |   |   |         |   |
|                                                     |   | $      | 230,548 |   |

----

**Item        8A. Controls and Procedures **

| ·     | a                failure to utilize the correct assumptions in the Black-Scholes model                in                measuring share-based compensation and changes in other equity                instruments, |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·     | a                failure to implement a proper accounting cut-off relating to the                issuance                of common shares, and |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| ·     | a              failure to record income from Atlas Mining upon receipt of a              warrant. |
|--------------------------------|---------------------------------------------------------------------------------------------------|

| (c)   | Remediation                of Material Weakness in Internal                Control |
|-----------------|------------------------------------------------------------------------------------|

| ·        | Improving                education and accounting reviews to ensure that personnel involved in                Black- Scholes valuation transactions understand and apply fair-value                accounting appropriately.     |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·        | Improving                education and accounting reviews to ensure personnel involved in                financial reporting understand and apply appropriate period-end accounting                cut-off reviews and analysis. |
| ·        | Improving              education and accounting reviews to ensure personnel involved in financial              reporting understand and apply appropriate accounting for receipt of              equity instruments.                  |

----

| ·        | a                failure to ensure the correct application of assumptions utilized                in the                Black-Scholes model in measuring share-based compensation and changes                in                other equity instruments, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | a                failure to ensure accurate accounting cut-off relating to common                share                issuance, and                                                                                                                          |
| ·   | a              failure to ensure proper accounting for receipt of equity              instruments.                                                                                                                                                           |

----

**PART      III**

**ITEM      13. EXHIBITS**

| **EXHIBIT                INDEX** |
|----------------------------------|
| **Exhibit****Number**            |   | **Description** |
| 2.1                              |   | Agreement                and Plan of Merger among NaturalNano, Inc., Cementitious Materials,                Inc.                and Cementitious Acquisitions, Inc. (1) |
| 3.1                              |   | Restated                Articles of Incorporation (2) |
| 3.2                              |   | Certificate                of Change to Articles of Incorporation (3) |
| 3.3                              |   | By                laws (4) |
| 4.1                              |   | NaturalNano,                Inc. 2005 Incentive Stock Plan (5) |
| 4.2                              |   | Form                of Non-Qualified Stock Option Agreement (2) |
| 4.3                              |   | Registration                Rights Agreement dated as of December 22, 2004 between NaturalNano,                Inc.                and Technology Innovations, LLC (2) |
| 4.4                              |   | Form                of Subscription Agreement for the Purchase of Convertible Notes of                NaturalNano, Inc. (2) |
| 4.5                              |   | Warrant                issued to SBI USA, LLC (6) |
| 10.1                             |   | License                Agreement between Technology Innovations, LLC and NaturalNano, Inc.                dated                as of April 27, 2005 (filed in redacted form pursuant to a request                for                confidential treatment filed separately with the Securities and Exchange                Commission) (2) |
| 10.2                             |   | Joint                Research Agreement between Nanolution, LLC and NaturalNano Inc. dated                as                of May 25, 2005 (2) |
| 10.3                             |   | Employment                Letter of Michael Riedlinger and Amendment No. 1 thereto #                (2) |
| 10.4                             |   | Employment                Letter of Kathleen A. Browne and Amendment No. 1 thereto #                (2) |
| 10.5                             |   | Employment                Letter of Sarah Cooper # (2) |
| 10.6                             |   | Line                of Credit Agreement dated as of December 29, 2004 between NaturalNano,                Inc. and Technology Innovations, LLC (6) |
| 14.1                             |   | Code                of ethics for CEO and senior financial officer (6) |
| 21.1                             |   | Subsidiaries                (6) |
| 31.1                             |   | Certification                of Chief Executive Officer pursuant to Rule 13a-14(a) * |
| 31.2                             |   | Certification                of Chief Financial Officer pursuant to Rule 13a-14(a) * |
| 32.1                             |   | Certification                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350                * |
| 32.2                             |   | Certification                of Chief Financial Officer pursuant to 18 U.S.C Section 1350                * |

| * | Filed                herewith |
|---|-------------------------------|

| # | May                be deemed a compensatory plan or                arrangement |
|---|--------------------------------------------------------------------------------|

| 1. | Incorporated                by reference to Exhibit 2.1 to Current Report on Form 8-K dated September                26, 2005 |
|----|-------------------------------------------------------------------------------------------------------------------------------|

| 2. | Incorporated                by reference to similarly numbered Exhibit to Current Report on Form                8-K                dated November 29, 2005 |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Incorporated                by reference to Exhibit 3.1 to Current Report on Form 8-K dated January                27, 2006 |
|----|-----------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Incorporated                by reference to Exhibit 3.2 to Form 10-SB filed July                2002 |
|----|------------------------------------------------------------------------------------------------------|

| 5. | Incorporated                by reference to Appendix C to Information Statement on Schedule 14C                filed                November 29, 2005 |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Incorporated                by reference to similarly numbered Exhibit to Annual Report on Form                10-KSB                for the fiscal year ended December 31, 2005, filed February 15,                2006. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                                         |                                       |                                   |
|----------------------------------------------|--------------------------------------------|----------------------------------------|
|                                         | NATURALNANO,                INC.           |
|                                    |                                  |                              |
| Dated:                 October 20, 2006 | By:                              | \s\              Michael D. Riedlinger |
|                                         | Name:                Michael D. Riedlinger |
|                                         | Title:                 President      |

| Signature                                    |   | Title                                                           |   | Date                            |
|----------------------------------------------|--------|-----------------------------------------------------------------|--------|---------------------------------|
|                                         |   |                                                            |   |                            |
| \s\                Michael D. Riedlinger     |   | President                and Director                           |   | October                20, 2006 |
| Michael                D. Riedlinger         |   | (Principal                Executive Officer)                    |   |                            |
|                                         |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
| \s\                Kathleen A. Browne        |   | Chief                Financial Officer, Secretary and Treasurer |   | October                20, 2006 |
| Kathleen                A. Browne            |   | (Principal                Financial Officer and                 |   |                            |
|                                         |   | Principal                Accounting Officer)                    |   |                            |
|                                         |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
| \s\                Steven Katz               |   | Director                                                        |   | October                20, 2006 |
| Steven                Katz                   |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
| \s\                Ross Kenzie               |   | Director                                                        |   | October                20, 2006 |
| Ross                Kenzie                   |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
| \s\                John Lanzafame            |   | Director                                                        |   | October                20, 2006 |
| John                Lanzafame                |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
| \s\                Sharell L. Mikesell Ph.D. |   | Director                                                        |   | October                20, 2006 |
| Sharell                L. Mikesell Ph.D.     |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
|                                         |   |                                                            |   |                            |
| \s\                Michael L. Weiner         |   | Director                                                        |   | October                20, 2006 |
| Michael                L. Weiner             |   |                                                            |   |                            |

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