|  | x | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF      1934 |
|--|---|--------------------------------------------------------------------------------------------------|

|  |  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)      OF THE SECURITIESEXCHANGE      ACT OF 1934 |
|--|--------|---------------------------------------------------------------------------------------------------|

| Nevada                               | 27-1877179                                |
|--------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of | (I.R.S.      Employer Identification No.) |
| incorporation      or organization)  |                                      |

| Large accelerated      filer          ̈           |   | Accelerated      filer                         ̈ |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Non-accelerated      filer            ̈ |   | Smaller reporting      company      x                                                                                                          |
| (Do      not check if a smaller reportingcompany)                                                  |

| Class                               | Outstanding as of November 15, 2010 |
|-------------------------------------|--------------------------------------------------------------|
|                                |                                                         |
| Common      Stock, $0.005 par value | 43,368,012                                                   |

----

| Heading         |         |                                                                                                 |         | Page   |
|-----------------|--------------|------------------------------------------------------------------------------------------------------|--------------|--------|
|            |         |                                                                                                 |         |   |
|            |         | PART  I—      FINANCIAL INFORMATION                                                  |         |   |
|            |         |                                                                                                 |         |   |
| Item      1.    |         | Unaudited      Financial Statements                                                                  |         | 3      |
|            |         |                                                                                                 |         |   |
| Item      2.    |         | Management's      Discussion and Analysis of Financial Condition and Results      of      Operations |         | 13     |
|            |         |                                                                                                 |         |   |
| Item      3.    |         | Quantitative      and Qualitative Disclosures About Market Risk                                      |         | 15     |
|            |         |                                                                                                 |         |   |
| Item 4(T). |         | Controls      and Procedures                                                                         |         | 15     |
|            |         |                                                                                                 |         |   |
|            |         |                                                                                                 |         |   |
|            |         | PART      II— OTHER INFORMATION                                                                |         |   |
|            |         |                                                                                                 |         |   |
| Item      1.    |         | Legal      Proceedings                                                                               |         | 16     |
|            |         |                                                                                                 |         |   |
| Item 1A.   |         | Risk      Factors                                                                                    |         | 16     |
|            |         |                                                                                                 |         |   |
| Item      2     |         | Unregistered      Sales of Equity Securities and Use of Proceeds                                     |         | 16     |
|            |         |                                                                                                 |         |   |
| Item      3.    |         | Defaults      Upon Senior Securities                                                                 |         | 16     |
|            |         |                                                                                                 |         |   |
| Item      4.    |         | (Removed      and Reserved)                                                                          |         | 16     |
|            |         |                                                                                                 |         |   |
| Item      5.    |         | Other      Information                                                                               |         | 16     |
|            |         |                                                                                                 |         |   |
| Item      6.    |         | Exhibits                                                                                             |         | 16     |
|            |         |                                                                                                 |         |   |
|            |    | Signatures                                                                                           |    | 17     |

----

| Item 1.  | Financial      Statements |
|--------------------|---------------------------|

----

|                                                                                                                                             |   | September 30, |       |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                                                                                             |   | 2010               |       |   | 2009              |   |
|                                                                                                                                             |   | (Unaudited)        |       |   |              |   |
| ASSETS                                                                                                                                           |   |               |       |   |              |   |
| CURRENT      ASSETS                                                                                                                              |   |               |       |   |              |   |
|                                                                                                                                             |   |               |       |   |              |   |
| Cash                                                                                                                                             |   | $                  | -          |   |              | $      | - |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| Total      Current Assets                                                                                                                        |   |               | -          |   |              |   | - |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| TOTAL      ASSETS                                                                                                                                |   | $                  | -          |   |              | $      | - |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY (DEFICIT)                                                                                              |   |               |       |   |              |   |   |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| CURRENT      LIABILITIES                                                                                                                         |   |               |       |   |              |   |   |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| Accounts      payable                                                                                                                            |   | $                  | 750        |   |              | $      | 3,500 |   |
| Related      party payables                                                                                                                      |   |               | 27,181     |   |              |   | 1,731 |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| Total      Current Liabilities                                                                                                                   |   |               | 27,931     |   |              |   | 5,231 |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| TOTAL      LIABILITIES                                                                                                                           |   |               | 27,931     |   |              |   | 5,231 |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| STOCKHOLDERS'      EQUITY (DEFICIT)                                                                                                              |   |               |       |   |              |   |   |   |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| Common      stock; 50,000,000 shares authorized, at $0.005 par value, 43,368,012 and      33,163,012 shares issued and outstanding, respectively |   |               | 216,840    |   |              |   | 165,815 |   |
| Additional      paid-in capital                                                                                                                  |   |               | 7,109,625  |   |              |   | 601,550 |   |
| Deficit      accumulated during the development stage                                                                                            |   |               | (7,354,396 | )      |              |   | (772,596 | ) |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| Total      Stockholders' Equity (Deficit)                                                                                                        |   |               | (27,931    | )      |              |   | (5,231 | ) |
|                                                                                                                                             |   |               |       |   |              |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY(DEFICIT)                                                                                         |   | $                  | -          |   |              | $      | - |   |

----

|                                                  |   |                                           |       |   |                                          |   |       | From Inception    |   |
|-------------------------------------------------------|--------|------------------------------------------------|------------|--------|-----------------------------------------------|--------|------------|------------------------|--------|
|                                                  |   |                                           |       |   |                                          |   |       | on August 5, |   |
|                                                  |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |       | 1987 Through      |   |
|                                                  |   | September 30,                             |       |   | September 30,                            |   |       | September 30,     |   |
|                                                  |   | 2010                                           |       |   | 2009                                          |   |       | 2010                   |   |   | 2009 |   |   | 2010 |   |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |
| REVENUES                                              |   | $                                              | -          |   |                                          | $      | -          |                   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                              |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research      and development                         |   |                                           | -          |   |                                          |   | -          |                   |   |   | 1,250,000 |   |   |   | - |   |   |   | 1,250,000 |   |
| Executive      compensation                           |   |                                           | -          |   |                                          |   | -          |                   |   |   | 5,156,100 |   |   |   | - |   |   |   | 5,156,100 |   |
| General      and administrative                       |   |                                           | 17,585     |   |                                          |   | -          |                   |   |   | 175,700 |   |   |   | - |   |   |   | 329,455 |   |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      FROM OPERATIONS                             |   |                                           | (17,585    | )      |                                          |   | -          |                   |   |   | (6,581,800 | ) |   |   | - |   |   |   | (6,735,555 | ) |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      FROM DISCONTINUED OPERATIONS                |   |                                           | -          |   |                                          |   | -          |                   |   |   | - |   |   |   | - |   |   |   | (4,340,551 | ) |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      Taxes                                     |   |                                           | -          |   |                                          |   | -          |                   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                                         |   | $                                              | (17,585    | )      |                                          | $      | -          |                   |   | $ | (6,581,800 | ) |   | $ | - |   |   | $ | (11,076,106 | ) |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      AND DILUTED LOSS PER SHARE OF COMMON STOCK |   | $                                              | (0.00      | )      |                                          | $      | 0.00       |                   |   | $ | (0.17 | ) |   | $ | 0.00 |   |   |   |   |   |
|                                                  |   |                                           |       |   |                                          |   |       |                   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF SHARES OUTSTANDING    |   |                                           | 43,368,012 |   |                                          |   | 33,163,012 |                   |   |   | 39,796,089 |   |   |   | 33,163,012 |   |   |   |   |   |

----

|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   | Deficit         |   |   |             |       |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|---------|--------|--------|-------------|--------|--------|-----------------|--------|--------|------------------|------------|
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   | Accumulated     |   |   |             |       |
|                                                                                                                                     |   |         |      |   |    |   |   | Additional  |   |   | During      the |   |   | Total            |       |
|                                                                                                                                     |   | Common Stock |      |   | Paid-In |   |   | Development |   |   | Stockholders'   |   |
|                                                                                                                                     |   | Shares       |      |   | Amount  |   |   | Capital     |   |   | Stage           |   |   | Equity/(Deficit) |       |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |
| Balance      August 5, 1987                                                                                                              |   |         | -         |   |    | $      | -      |        |   | $      | -               |   |   | $                | -          |   |   | $ | - |   |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the period ended December 31, 1987                                                                                     |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (30        | ) |   |   | (30 | ) |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1987                                                                                                          |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (30        | ) |   |   | (30 | ) |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock issued for services rendered at $15.00 per share on January 27,      1988                                              |   |         | 624,000   |   |    |   | 3,120  |        |   |   | 2,336,880       |   |   |             | -          |   |   |   | 2,340,000 |   |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock issued for Midway Mining Development Corp. at $15.00 per share on      January 27, 1988                                |   |         | 359,592   |   |    |   | 1,798  |        |   |   | 1,346,672       |   |   |             | -          |   |   |   | 1,348,470 |   |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock issued for mining claims at predecessor cost on May 24,      1988                                                      |   |         | 19,420    |   |    |   | 97     |        |   |   | (97             | )      |   |             | -          |   |   |   | - |   |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock cancelled due to the acquisition agreement on Midway Mining and      Development Corp. being rescinded on July 6, 1988 |   |         | (209,112  | )      |    |   | (1,046 | )           |   |   | -               |   |   |             | -          |   |   |   | (1,046 | ) |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock issued for services rendered at $0.00 per share on July 6,      1988                                              |   |         | 209,112   |   |    |   | 1,046  |        |   |   | -               |   |   |             | -          |   |   |   | 1,046 |   |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Additional      capital contributed                                                                                                      |   |         | -         |   |    |   | -      |        |   |   | 33,000          |   |   |             | -          |   |   |   | 33,000 |   |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended                                                                                                         |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
|   December      31, 1988                                                                                                       |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (3,721,500 | ) |   |   | (3,721,500 | ) |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1988                                                                                                          |   |         | 1,003,012 |   |    |   | 5,015  |        |   |   | 3,716,455       |   |   |             | (3,721,530 | ) |   |   | (60 | ) |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended                                                                                                         |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
|   December      31, 1989                                                                                                       |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (30        | ) |   |   | (30 | ) |
|                                                                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1989                                                                                                          |   |         | 1,003,012 |   |    | $      | 5,015  |        |   | $      | 3,716,455       |   |   | $                | (3,721,560 | ) |   | $ | (90 | ) |

----

|                                                                                     |   |         |      |   |    |   |   |        |   |   | Deficit         |   |   |             |       |
|------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|---------|--------|--------|-------------|--------|--------|-----------------|--------|--------|------------------|------------|
|                                                                                     |   |         |      |   |    |   |   |        |   |   | Accumulated     |   |   |             |       |
|                                                                                     |   |         |      |   |    |   |   | Additional  |   |   | During      the |   |   | Total            |       |
|                                                                                     |   | Common Stock |      |   | Paid-In |   |   | Development |   |   | Stockholders'   |   |
|                                                                                     |   | Shares       |      |   | Amount  |   |   | Capital     |   |   | Stage           |   |   | Equity/(Deficit) |       |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |
| Balance,      December 31, 1989                                                          |   |         | 1,003,012 |   |    | $      | 5,015  |        |   | $      | 3,716,455       |   |   | $                | (3,721,560 | ) |   | $ | (90 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 1990                                       |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (30        | ) |   |   | (30 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1990                                                          |   |         | 1,003,012 |   |    |   | 5,015  |        |   |   | 3,716,455       |   |   |             | (3,721,590 | ) |   |   | (120 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 1991                                       |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (30        | ) |   |   | (30 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1991                                                          |   |         | 1,003,012 |   |    |   | 5,015  |        |   |   | 3,716,455       |   |   |             | (3,721,620 | ) |   |   | (150 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 1992                                       |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (30        | ) |   |   | (30 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1992                                                          |   |         | 1,003,012 |   |    |   | 5,015  |        |   |   | 3,716,455       |   |   |             | (3,721,650 | ) |   |   | (180 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 1993                                       |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (30        | ) |   |   | (30 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1993                                                          |   |         | 1,003,012 |   |    |   | 5,015  |        |   |   | 3,716,455       |   |   |             | (3,721,680 | ) |   |   | (210 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Quasi      - reorganization (Note 2)                                                     |   |         | -         |   |    |   | -      |        |   |   | (3,721,710      | )      |   |             | 3,721,710  |   |   |   | - |   |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 1994                                  |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (30        | ) |   |   | (30 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1994                                                          |   |         | 1,003,012 |   |    |   | 5,015  |        |   |   | (5,255          | )      |   |             | -          |   |   |   | (240 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock issued for services rendered at $15.00 per share on June 12,      1995 |   |         | 160,000   |   |    |   | 800    |        |   |   | 599,200         |   |   |             | -          |   |   |   | 600,000 |   |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Additional      capital contributed                                                      |   |         | -         |   |    |   | -      |        |   |   | 2,605           |   |   |             | -          |   |   |   | 2,605 |   |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 1995                                       |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (605,105   | ) |   |   | (605,105 | ) |
|                                                                                     |   |         |      |   |    |   |   |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 1995                                                          |   |         | 1,163,012 |   |    | $      | 5,815  |        |   | $      | 596,550         |   |   | $                | (605,105   | ) |   | $ | (2,740 | ) |

----

|                                                               |   |         |      |   |    |   |   |        |   |   | Deficit         |   |   |             |     |
|--------------------------------------------------------------------|--------|--------------|-----------|--------|---------|--------|--------|-------------|--------|--------|-----------------|--------|--------|------------------|----------|
|                                                               |   |         |      |   |    |   |   |        |   |   | Accumulated     |   |   |             |     |
|                                                               |   |         |      |   |    |   |   | Additional  |   |   | During      the |   |   | Total            |     |
|                                                               |   | Common Stock |      |   | Paid-In |   |   | Development |   |   | Stockholders'   |   |
|                                                               |   | Shares       |      |   | Amount  |   |   | Capital     |   |   | Stage           |   |   | Equity/(Deficit) |     |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |
| Balance,      December 31, 1995                                    |   |         | 1,163,012 |   |    | $      | 5,815  |        |   | $      | 596,550         |   |   | $                | (605,105 | ) |   | $ | (2,740 | ) |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Common      stock issued for expenses paid at $0.01 per share |   |         | 2,000,000 |   |    |   | 10,000 |        |   |   | 5,000           |   |   |             | -        |   |   |   | 15,000 |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Net      loss for the year ended December 31, 1996            |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | (12,260  | ) |   |   | (12,260 | ) |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Balance,      December 31, 1996                                    |   |         | 3,163,012 |   |    |   | 15,815 |        |   |   | 601,550         |   |   |             | (617,365 | ) |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Net      loss for the year ended December 31, 1997                 |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | -        |   |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Balance,      December 31, 1997                                    |   |         | 3,163,012 |   |    |   | 15,815 |        |   |   | 601,550         |   |   |             | (617,365 | ) |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Net      loss for the year                                         |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
|   ended      December 31, 1998                           |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | -        |   |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Balance,      December 31, 1998                                    |   |         | 3,163,012 |   |    |   | 15,815 |        |   |   | 601,550         |   |   |             | (617,365 | ) |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Net      loss for the year ended December 31, 1999                 |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | -        |   |   |   |   |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Balance,      December 31, 1999                                    |   |         | 3,163,012 |   |    |   | 15,815 |        |   |   | 601,550         |   |   |             | (617,365 | ) |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Net      loss for the year ended December 31, 2000            |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | -        |   |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Balance,      December 31, 2000                                    |   |         | 3,163,012 |   |    |   | 15,815 |        |   |   | 601,550         |   |   |             | (617,365 | ) |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Net      loss for the year ended December 31, 2001            |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | -        |   |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Balance,      December 31, 2001                                    |   |         | 3,163,012 |   |    |   | 15,815 |        |   |   | 601,550         |   |   |             | (617,365 | ) |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Net      loss for the year ended December 31, 2002            |   |         | -         |   |    |   | -      |        |   |   | -               |   |   |             | -        |   |   |   | - |   |
|                                                               |   |         |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| Balance,      December 31, 2002                                    |   |         | 3,163,012 |   |    | $      | 15,815 |        |   | $      | 601,550         |   |   | $                | (617,365 | ) |   | $ | - |   |

----

|                                                                                   |   |         |       |   |    |   |    |        |   |   | Deficit         |   |   |             |       |
|----------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|-----------------|--------|--------|------------------|------------|
|                                                                                   |   |         |       |   |    |   |    |        |   |   | Accumulated     |   |   |             |       |
|                                                                                   |   |         |       |   |    |   |    | Additional  |   |   | During      the |   |   | Total            |       |
|                                                                                   |   | Common Stock |       |   | Paid-In |   |    | Development |   |   | Stockholders'   |   |
|                                                                                   |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage           |   |   | Equity/(Deficit) |       |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |
| Balance,      December 31, 2002                                                        |   |         | 3,163,012  |   |    | $      | 15,815  |        |   | $      | 601,550         |   |   | $                | (617,365   | ) |   | $ | - |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 2003                                |   |         | -          |   |    |   | -       |        |   |   | -               |   |   |             | -          |   |   |   | - |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 2003                                                        |   |         | 3,163,012  |   |    |   | 15,815  |        |   |   | 601,550         |   |   |             | (617,365   | ) |   |   | - |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 2004                                     |   |         | -          |   |    |   | -       |        |   |   | -               |   |   |             | -          |   |   |   | - |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 2004                                                        |   |         | 3,163,012  |   |    |   | 15,815  |        |   |   | 601,550         |   |   |             | (617,365   | ) |   |   | - |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 2005                                     |   |         | -          |   |    |   | -       |        |   |   | -               |   |   |             | (1,476     | ) |   |   | (1,476 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 2005                                                        |   |         | 3,163,012  |   |    |   | 15,815  |        |   |   | 601,550         |   |   |             | (618,841   | ) |   |   | (1,476 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 2006                                     |   |         | -          |   |    |   | -       |        |   |   | -               |   |   |             | -          |   |   |   | - |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 2006                                                        |   |         | 3,163,012  |   |    |   | 15,815  |        |   |   | 601,550         |   |   |             | (618,841   | ) |   |   | (1,476 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock issued for services at $0.005 per share on May 9,    2007            |   |         | 30,000,000 |   |    |   | 150,000 |        |   |   | -               |   |   |             | -          |   |   |   | 150,000 |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 2007                                |   |         | -          |   |    |   | -       |        |   |   | -               |   |   |             | (150,000   | ) |   |   | (150,000 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 2007                                                        |   |         | 33,163,012 |   |    |   | 165,815 |        |   |   | 601,550         |   |   |             | (768,841   | ) |   |   | (1,476 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 2008                                     |   |         | -          |   |    |   | -       |        |   |   | -               |   |   |             | (1,605     | ) |   |   | (1,605 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 2008                                                        |   |         | 33,163,012 |   |    |   | 165,815 |        |   |   | 601,550         |   |   |             | (770,446   | ) |   |   | (3,081 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the year ended December 31, 2009                                     |   |         | -          |   |    |   | -       |        |   |   | -               |   |   |             | (2,150     | ) |   |   | (2,150 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      December 31, 2009                                                        |   |         | 33,163,012 |   |    |   | 165,815 |        |   |   | 601,550         |   |   |             | (772,596   | ) |   |   | (5,231 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock issued for patents at $0.25 per share (unaudited)                    |   |         | 5,000,000  |   |    |   | 25,000  |        |   |   | 1,225,000       |   |   |             | -          |   |   |   | 1,250,000 |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common      stock issued for services at $1.02 per commnon share      (unaudited)      |   |         | 5,205,000  |   |    |   | 26,025  |        |   |   | 5,283,075       |   |   |             | -          |   |   |   | 5,309,100 |   |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net      loss for the nine months ended  September 30, 2010      (unaudited) |   |         | -          |   |    |   | -       |        |   |   | -               |   |   |             | (6,581,800 | ) |   |   | (6,581,800 | ) |
|                                                                                   |   |         |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      September 30, 2010 (unaudited)                                           |   |         | 43,368,012 |   |    | $      | 216,840 |        |   | $      | 7,109,625       |   |   | $                | (7,354,396 | ) |   | $ | (27,931 | ) |

----

|                                                                       |   |                                          |       |   | From Inception    |   |
|----------------------------------------------------------------------------|--------|-----------------------------------------------|------------|--------|------------------------|--------|
|                                                                       |   |                                          |       |   | on August 5, |   |
|                                                                       |   | For the Nine Months Ended |       |   | 1987 Through      |   |
|                                                                       |   | September 30,                            |       |   | September 30,     |   |
|                                                                       |   | 2010                                          |       |   | 2009                   |   |   | 2010 |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |
| OPERATING      ACTIVITIES                                                  |   |                                          |       |   |                   |   |   |   |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |
| Net      loss                                                              |   | $                                             | (6,581,800 | )      |                   | $      | - |   |   | $ | (11,076,106 | ) |
| Adjustments      to reconcile loss to cash flows from operating activities |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| Common      stock issued for services                                      |   |                                          | 5,309,100  |   |                   |   | - |   |   |   | 9,183,270 |   |
| Common      stock issued for research and development costs                |   |                                          | 1,250,000  |   |                   |   |   |   |   |   | 1,250,000 |   |
| Loss      from disposition of subsidiary                                   |   |                                          | -          |   |                   |   | - |   |   |   | 564,300 |   |
| Expenses      paid on behalf of the Company                                |   |                                          | 25,450     |   |                   |   | - |   |   |   | 77,786 |   |
| Changes      in operating assets and liabilities                           |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| Increase      in accounts payable                                          |   |                                          | (2,750     | )      |                   |   | - |   |   |   | 750 |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| Net      Cash Used in Operating Activities                                 |   |                                          | -          |   |                   |   | - |   |   |   | - |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                  |   |                                          | -          |   |                   |   | - |   |   |   | - |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                  |   |                                          |       |   |                   |   |   |   |   |   |   |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| Net      Cash Provided by Financing Activities                             |   |                                          | -          |   |                   |   | - |   |   |   | - |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| NET      INCREASE IN CASH                                                  |   |                                          | -          |   |                   |   | - |   |   |   | - |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| CASH      AT BEGINNING OF PERIOD                                           |   |                                          | -          |   |                   |   | - |   |   |   | - |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| CASH      AT END OF PERIOD                                                 |   | $                                             | -          |   |                   | $      | - |   |   | $ | - |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      CASH FLOW INFORMATION:                                   |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| CASH      PAID FOR:                                                        |   |                                          |       |   |                   |   |   |   |   |   |   |   |
|                                                                       |   |                                          |       |   |                   |   |   |   |   |   |   |   |
| Interest                                                                   |   | $                                             | -          |   |                   | $      | - |   |   | $ | - |   |
| Income      taxes                                                          |   | $                                             | -          |   |                   | $      | - |   |   | $ | - |   |

----

----

|   | a) | Commercially      reasonable efforts must begin within 12 months of the      agreement |
|--------|----|----------------------------------------------------------------------------------------|

|   | b) | File      an IND application for at least one product within two years of      closing |
|--------|----|----------------------------------------------------------------------------------------|

|   | c) | Initiate      clinical studies for at least one product within three years of      closing |
|--------|----|--------------------------------------------------------------------------------------------|

|   | d) | Commercialize      at least one product within five years of  closing |
|--------|----|-----------------------------------------------------------------------|

----

| Item      2. | Management's      Discussion and Analysis of Financial Condition and Results ofOperations |
|--------------|-------------------------------------------------------------------------------------------|

----

----

----

|   | Exhibit      31.1 |         | Certification      of C.E.O. and Principal Accounting Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                     |
|--------|-------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |              |         |                                                                                                                                                                              |
|   | Exhibit      32.1 |    | Certification      of C.E.O. and Principal Accounting Officer Pursuant to 18 U.S.C. Section      1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |

----

|                                    | PROTECT      PHARMACEUTICAL CORPORATION |
|-----------------------------------------|-----------------------------------------|
|                                    |                                    |   |
| Date:  November      15, 2010 | By:                                     | /S/ William D. Abajian |
|                                    |                                    | William      D. Abajian |
|                                    |                                    | President,      C.E.O. and Director |
|                                    |                                    | (Acting      Principal AccountingOfficer) |

----