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

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 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 reporting company)                                                 |

| Class                          | Outstanding as of May 13, 2011 |
|--------------------------------|-----------------------------------------------|
|                           |                                          |
| Common Stock, $0.005 par value | 43,428,012                                    |

----

| 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                                                                               |         | 15     |
|            |         |                                                                                            |         |   |
| Item 1A.   |         | Risk Factors                                                                                    |         | 15     |
|            |         |                                                                                            |         |   |
| Item 2          |         | Unregistered Sales of Equity Securities and Use of Proceeds                                     |         | 15     |
|            |         |                                                                                            |         |   |
| 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 |
|--------------|----------------------|

----

|                                                                                                                    |   | March 31, |       |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                                                                                               |   | 2011           |       |   | 2010              |   |
|                                                                                                                    |   | (Unaudited)    |       |   |              |   |
| ASSETS                                                                                                                  |   |           |       |   |              |   |
|                                                                                                                    |   |           |       |   |              |   |
| CURRENT ASSETS                                                                                                          |   |           |       |   |              |   |
|                                                                                                                    |   |           |       |   |              |   |
| Cash                                                                                                                    |   | $              | 298,241    |   |              | $      | - |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| Total Current Assets                                                                                                    |   |           | 298,241    |   |              |   | - |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| TOTAL ASSETS                                                                                                            |   | $              | 298,241    |   |              | $      | - |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                          |   |           |       |   |              |   |   |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| CURRENT LIABILITIES                                                                                                     |   |           |       |   |              |   |   |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| Accounts payable and accrued expenses                                                                                   |   | $              | 77,038     |   |              | $      | 84,545 |   |
| Accounts payable - related parties                                                                                      |   |           | 250        |   |              |   | 150,000 |   |
| Accrued officer salaries                                                                                                |   |           | 251,895    |   |              |   | 224,658 |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| Total Current Liabilities                                                                                               |   |           | 329,183    |   |              |   | 459,203 |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| TOTAL LIABILITIES                                                                                                       |   |           | 329,183    |   |              |   | 459,203 |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| STOCKHOLDERS' EQUITY (DEFICIT)                                                                                          |   |           |       |   |              |   |   |   |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| Common stock; 50,000,000 shares authorized, at $0.005 par value, 43,368,012 shares issued and outstanding, respectively |   |           | 216,840    |   |              |   | 216,840 |   |
| Additional paid-in capital                                                                                              |   |           | 7,122,909  |   |              |   | 7,122,909 |   |
| Deficit accumulated during the development stage                                                                        |   |           | (7,370,691 | )      |              |   | (7,798,952 | ) |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| Total Stockholders' Equity (Deficit)                                                                                    |   |           | (30,942    | )      |              |   | (459,203 | ) |
|                                                                                                                    |   |           |       |   |              |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                    |   | $              | 298,241    |   |              | $      | - |   |

----

|                                                      |   |                                           |       |   | From Inception    |   |
|-----------------------------------------------------------|--------|------------------------------------------------|------------|--------|------------------------|--------|
|                                                 |   |                                           |       |   | on August 5, |   |
|                                                 |   | For the Three Months Ended |       |   | 1987 Through      |   |
|                                                 |   | March 31,                                 |       |   | March 31,         |   |
|                                                      |   | 2011                                           |       |   | 2010                   |   |   | 2011 |   |
|                                                      |   |                                           |       |   |                   |   |   |   |   |
| REVENUES                                                  |   | $                                              | -          |   |                   | $      | - |   |   | $ | - |   |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| EXPENSES                                                  |   |                                           |       |   |                   |   |   |   |   |   |   |   |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| Research and development                                  |   |                                           | 123,192    |   |                   |   | 1,250,000 |   |   |   | 1,376,212 |   |
| Executive compensation                                    |   |                                           | 68,904     |   |                   |   | - |   |   |   | 5,449,662 |   |
| General and administrative                                |   |                                           | 19,643     |   |                   |   | 1,665 |   |   |   | 565,976 |   |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| LOSS FROM OPERATIONS                                      |   |                                           | (211,739   | )      |                   |   | (1,251,665 | ) |   |   | (7,391,850 | ) |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                   |   |                                           |       |   |                   |   |   |   |   |   |   |   |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| Gain on sale of patents                                   |   |                                           | 640,000    |   |                   |   | - |   |   |   | 640,000 |   |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS              |   |                                           | 428,261    |   |                   |   | (1,251,665 | ) |   |   | (6,751,850 | ) |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| LOSS FROM DISCONTINUED OPERATIONS                         |   |                                           | -          |   |                   |   | - |   |   |   | (4,340,551 | ) |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| Income Taxes                                              |   |                                           | -          |   |                   |   | - |   |   |   | - |   |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                         |   | $                                              | 428,261    |   |                   | $      | (1,251,665 | ) |   | $ | (11,092,401 | ) |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| BASIC AND DILUTED INCOME (LOSS) PER SHARE OF COMMON STOCK |   | $                                              | 0.01       |   |                   | $      | (0.03 | ) |   |   |   |   |
|                                                      |   |                                           |       |   |                   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING             |   |                                           | 43,368,012 |   |                   |   | 35,829,679 |   |   |   |   |   |

----

|                                                                                                                           |   |              |      |   |    |   |   |        |   |   | 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 | ) |   |   | - |   |
|                                                     |   |              |      |   |    |   |   |        |   |   |            |   |   |             |     |   |   |   |   |   |
| 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 | ) |   | $ | - |   |

----

|                                                                |   |              |       |   |    |   |    |        |   |   | Deficit         |   |   |             |       |
|---------------------------------------------------------------------|--------|-------------------|------------|--------|---------|--------|---------|-------------|--------|--------|-----------------|--------|--------|------------------|------------|
|                                                           |   |              |       |   |    |   |    |        |   |   | Accumulated     |   |   |             |       |
|                                                           |   |              |       |   |    |   |    | Additional  |   |   | During the |   |   | Total            |       |
|                                                           |   | Common Stock |       |   | Paid-In |   |    | Development |   |   | Stockholders'   |   |
|                                                           |   | Shares            |       |   | Amount  |   |    | Capital     |   |   | Stage           |   |   | Equity/(Deficit) |       |
|                                                                |   |              |       |   |    |   |    |        |   |   |            |   |   |             |       |
| 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                  |   |              | 5,000,000  |   |    |   | 25,000  |        |   |   | 1,225,000       |   |   |             | -          |   |   |   | 1,250,000 |   |
|                                                                |   |              |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Common stock issued for services at $1.02 per commnon share         |   |              | 5,205,000  |   |    |   | 26,025  |        |   |   | 5,283,075       |   |   |             | -          |   |   |   | 5,309,100 |   |
|                                                                |   |              |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Contibuted capital                                                  |   |              | -          |   |    |   | -       |        |   |   | 13,284          |   |   |             | -          |   |   |   | 13,284 |   |
|                                                                |   |              |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net loss for the year ended December 31, 2010                       |   |              | -          |   |    |   | -       |        |   |   |            |   |   |             | (7,026,356 | ) |   |   | (7,026,356 | ) |
|                                                                |   |              |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance, December 31, 2010                                          |   |              | 43,368,012 |   |    |   | 216,840 |        |   |   | 7,122,909       |   |   |             | (7,798,952 | ) |   |   | (459,203 | ) |
|                                                                |   |              |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Net income for the three months ended March 31, 2011 (unaudited)    |   |              | -          |   |    |   | -       |        |   |   | -               |   |   |             | 428,261    |   |   |   | 428,261 |   |
|                                                                |   |              |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance, March 31, 2011 (unaudited)                                 |   |              | 43,368,012 |   |    | $      | 216,840 |        |   | $      | 7,122,909       |   |   | $                | (7,370,691 | ) |   | $ | (30,942 | ) |

----

|                                                             |   |                                           |     |   | From Inception    |   |
|-----------------------------------------------------------------------|--------|------------------------------------------------|----------|--------|------------------------|--------|
|                                                             |   |                                           |     |   | on August 5, |   |
|                                                             |   | For the Three Months Ended |     |   | 1987 Through      |   |
|                                                             |   | March 31,                                 |     |   | March 31,         |   |
|                                                             |   | 2011                                           |     |   | 2010                   |   |   | 2011 |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |
| OPERATING ACTIVITIES                                                  |   |                                           |     |   |                   |   |   |   |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |
| Net Income (loss)                                                     |   | $                                              | 428,261  |   |                   | $      | (1,251,665 | ) |   | $ | (11,092,401 | ) |
| Adjustments to reconcile loss to cash flows from operating activities |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| Common stock issued for services                                      |   |                                           | -        |   |                   |   | - |   |   |   | 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                                |   |                                           | -        |   |                   |   | - |   |   |   | 65,620 |   |
| Changes in operating assets and liabilities                           |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| Accounts payable                                                      |   |                                           | (7,507   | )      |                   |   | 1,665 |   |   |   | 77,038 |   |
| Account payable - related parties                                     |   |                                           | (149,750 | )      |                   |   | - |   |   |   | (1,481 | ) |
| Increase in accrued salaries                                          |   |                                           | 27,237   |   |                   |   | - |   |   |   | 251,895 |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| Net Cash Used in Operating Activities                                 |   |                                           | 298,241  |   |                   |   | - |   |   |   | 298,241 |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                  |   |                                           | -        |   |                   |   | - |   |   |   | - |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                  |   |                                           | -        |   |                   |   | - |   |   |   | - |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| NET INCREASE IN CASH                                                  |   |                                           | 298,241  |   |                   |   | - |   |   |   | 298,241 |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| CASH AT BEGINNING OF PERIOD                                           |   |                                           | -        |   |                   |   | - |   |   |   | - |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| CASH AT END OF PERIOD                                                 |   | $                                              | 298,241  |   |                   | $      | - |   |   | $ | 298,241 |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                                   |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| CASH PAID FOR:                                                        |   |                                           |     |   |                   |   |   |   |   |   |   |   |
|                                                                  |   |                                           |     |   |                   |   |   |   |   |   |   |   |
| Interest                                                              |   | $                                              | -        |   |                   | $      | - |   |   | $ | - |   |
| Income taxes                                                          |   | $                                              | -        |   |                   | $      | - |   |   | $ | - |   |

----

----

----

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

----

----

----

| Exhibit 31.1 |         | Certification of C.E.O. Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                      |
|--------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |         |                                                                                                                                                    |
| Exhibit 31.2 |         | Certification of Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                |
|         |         |                                                                                                                                                    |
| Exhibit 32.1 |         | Certification of C.E.O. Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                       |
|         |         |                                                                                                                                                    |
| Exhibit 32.2 |    | Certification of 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:  May 13, 2011 | By:                                | /S/ Ramesha Sesha |
|                          |                               | Ramesha Sesha |
|                          |                               | President, C.E.O. and Director |
|                          |                               |   |
| Date:  May 13, 2011 | By:                                | /S/ Keith Elison |
|                          |                               | Keith Elison |
|                          |                               | C.F.O., Chief Accounting Officer |

----