| 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 September 22, 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                                                           |   | 14     |
|            |   |                                                                         |   |   |
| Item      3.    |   | Quantitative      and Qualitative Disclosures About Market Risk              |   | 16     |
|            |   |                                                                         |   |   |
| Item      4(T). |   | Controls      and Procedures                                                 |   | 16     |
|            |   |                                                                         |   |   |
|            |   | PART      II — OTHER INFORMATION                                       |   |   |
|            |   |                                                                         |   |   |
| Item      1.    |   | Legal      Proceedings                                                       |   | 17     |
|            |   |                                                                         |   |   |
| Item      1A.   |   | Risk      Factors                                                            |   | 17     |
|            |   |                                                                         |   |   |
| Item      2     |   | Unregistered      Sales of Equity Securities and Use of Proceeds             |   | 17     |
|            |   |                                                                         |   |   |
| Item      3.    |   | Defaults      Upon Senior Securities                                         |   | 17     |
|            |   |                                                                         |   |   |
| Item      4.    |   | (Removed      and Reserved)                                                  |   | 17     |
|            |   |                                                                         |   |   |
| Item      5.    |   | Other      Information                                                       |   | 17     |
|            |   |                                                                         |   |   |
| Item      6.    |   | Exhibits                                                                     |   | 17     |
|            |   |                                                                         |   |   |
|            |   | Signatures                                                                   |   | 18     |

----

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

----

|                                                                                                                                             |   | June 30, |       |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                                                                                                             |   | 2010          |       |   | 2009              |   |
|                                                                                                                                             |   | (Unaudited)   |       |   |              |   |
|                                                                                                                                             |   |          |       |   |              |   |
| ASSETS                                                                                                                                           |   |          |       |   |              |   |
|                                                                                                                                             |   |          |       |   |              |   |
| CURRENT      ASSETS                                                                                                                              |   |          |       |   |              |   |
| Cash                                                                                                                                             |   | $             | -          |   |              | $      | - |   |
|                                                                                                                                             |   |          |       |   |              |   |   |   |
| Total      Current Assets                                                                                                                        |   |          | -          |   |              |   | - |   |
|                                                                                                                                             |   |          |       |   |              |   |   |   |
| TOTAL      ASSETS                                                                                                                                |   | $             | -          |   |              | $      | - |   |
|                                                                                                                                             |   |          |       |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY      (DEFICIT)                                                                                              |   |          |       |   |              |   |   |   |
|                                                                                                                                             |   |          |       |   |              |   |   |   |
| CURRENT      LIABILITIES                                                                                                                         |   |          |       |   |              |   |   |   |
| Accounts      payable                                                                                                                            |   | $             | 2,500      |   |              | $      | 3,500 |   |
| Related      party payable                                                                                                                       |   |          | 7,846      |   |              |   | 1,731 |   |
|                                                                                                                                             |   |          |       |   |              |   |   |   |
| Total      Current Liabilities                                                                                                                   |   |          | 10,346     |   |              |   | 5,231 |   |
|                                                                                                                                             |   |          |       |   |              |   |   |   |
| TOTAL      LIABILITIES                                                                                                                           |   |          | 10,346     |   |              |   | 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                                                                                            |   |          | (7,336,811 | )      |              |   | (772,596 | ) |
|                                                                                                                                             |   |          |       |   |              |   |   |   |
| Total      Stockholders' Equity (Deficit)                                                                                                        |   |          | (10,346    | )      |              |   | (5,231 | ) |
|                                                                                                                                             |   |          |       |   |              |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS'EQUITY (DEFICIT)                                                                                         |   | $             | -          |   |              | $      | - |   |

----

|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   | From      Inception |       |
|------------------------------------------|--------|---------------------------------|------------|--------|-------------------------------|--------|------------|-------------------|--------|--------|------------|--------|--------|---------------------|------------|
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   | on      August 5,   |       |
|                                     |   | For      the Three Months Ended |       |   | For      the Six Months Ended |   |       | 1987      Through |   |
|                                     |   | June      30,                   |       |   | June      30,                 |   |       | June      30,     |   |
|                                     |   | 2010                            |       |   | 2009                          |   |       | 2010              |   |   | 2009       |   |   | 2010                |       |
|                                     |   | (restated)                      |       |   |                          |   |       |              |   |   |       |   |   |                |       |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |
| REVENUES                                 |   | $                               | -          |   |                          | $      | -          |              |   | $      | -          |   |   | $                   | -          |   |   | $ | - |   |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| EXPENSES                                 |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| Research      and development            |   |                            | -          |   |                          |   | -          |              |   |   | 1,250,000  |   |   |                | -          |   |   |   | 1,250,000 |   |
| Executive      compensation              |   |                            | 5,156,100  |   |                          |   | -          |              |   |   | 5,156,100  |   |   |                | -          |   |   |   | 5,156,100 |   |
| General      and administrative          |   |                            | 156,450    |   |                          |   | -          |              |   |   | 158,115    |   |   |                | -          |   |   |   | 311,870 |   |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| LOSS      FROM OPERATIONS                |   |                            | (5,312,550 | )      |                          |   | -          |              |   |   | (6,564,215 | )      |   |                | -          |   |   |   | (6,717,970 | ) |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| LOSS      FROM DISCONTINUED OPERATIONS   |   |                            | -          |   |                          |   | -          |              |   |   | -          |   |   |                | -          |   |   |   | (4,340,551 | ) |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| Income      Taxes                        |   |                            | -          |   |                          |   | -          |              |   |   | -          |   |   |                | -          |   |   |   | - |   |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| NET      LOSS                            |   | $                               | (5,312,550 | )      |                          | $      | -          |              |   | $      | (6,564,215 | )      |   | $                   | -          |   |   | $ | (11,058,521 | ) |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| BASIC      AND DILUTED LOSS PER SHARE OF |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| COMMON      STOCK                        |   | $                               | (0.13      | )      |                          | $      | 0.00       |              |   | $      | (0.17      | )      |   | $                   | 0.00       |   |   |   |   |   |
|                                     |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF          |   |                            |       |   |                          |   |       |              |   |   |       |   |   |                |       |   |   |   |   |   |
|   SHARES      OUTSTANDING      |   |                            | 40,107,737 |   |                          |   | 33,163,012 |              |   |   | 37,980,526 |   |   |                | 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 six months ended June 30, 2010 (unaudited)                  |   |              | -          |   |    |   | -       |        |   |   |            |   |   |             | (6,564,215 | ) |   |   | (6,564,215 | ) |
|                                                                              |   |              |       |   |    |   |    |        |   |   |            |   |   |             |       |   |   |   |   |   |
| Balance,      June 30, 2010 (unaudited)                                           |   |              | 43,368,012 |   |    | $      | 216,840 |        |   | $      | 7,109,625       |   |   | $                | (7,336,811 | ) |   | $ | (10,346 | ) |

----

|                                                                               |   |                                         |       |   |              |   |   | From Inception    |   |
|------------------------------------------------------------------------------------|--------|----------------------------------------------|------------|--------|-------------------|--------|--------|------------------------|--------|
|                                                                               |   |                                         |       |   |              |   |   | on August 5, |   |
|                                                                               |   | For the Six Months Ended |       |   | 1987 Through |   |
|                                                                               |   | June 30,                                |       |   | June 30,     |   |
|                                                                               |   | 2010                                         |       |   | 2009              |   |   | 2010                   |   |
|                                                                               |   |                                         |       |   |              |   |   |                   |   |
| OPERATING      ACTIVITIES                                                          |   |                                         |       |   |              |   |   |                   |   |
|                                                                               |   |                                         |       |   |              |   |   |                   |   |
| Net      loss                                                                      |   | $                                            | (6,564,215 | )      |              | $      | -      |                   |   | $ | (11,058,521 | ) |
| 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                                        |   |                                         | 6,115      |   |              |   | -      |                   |   |   | 58,451 |   |
| Changes      in operating assets and liabilities Increase in accounts      payable |   |                                         | (1,000     | )      |              |   | -      |                   |   |   | 2,500 |   |
|                                                                               |   |                                         |       |   |              |   |   |                   |   |   |   |   |
| 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                                                                  |   | $                                            | -          |   |              | $      | -      |                   |   | $ | - |   |
|                                                                               |   |                                         |       |   |              |   |   |                   |   |   |   |   |
| NON      CASH FINANCING ACTIVITIES                                                 |   |                                         |       |   |              |   |   |                   |   |   |   |   |

----

----

|   | 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 |
|--------|----|-----------------------------------------------------------------------|

----

|                                     |   | For      the Three Months Ended |       |
|------------------------------------------|--------|---------------------------------|------------|
|                                     |   | June      30,                   |       |
|                                     |   | 2010                            |       |   | 2010 |   |
|                                     |   | (restated)                      |       |   | (original) |   |
| REVENUES                                 |   | $                               | -          |   |   | $ | - |   |
| EXPENSES                                 |   |                            |       |   |   |   |   |   |
| Research      and development            |   |                            | -          |   |   |   | 1,250,000 |   |
| Executive      compensation              |   |                            | 5,156,100  |   |   |   | 5,156,100 |   |
| General      and administrative          |   |                            | 156,450    |   |   |   | 156,450 |   |
| LOSS      FROM OPERATIONS                |   |                            | (5,312,550 | ) |   |   | (6,562,550 | ) |
| LOSS      FROM DISCONTINUED OPERATIONS   |   |                            | -          |   |   |   | - |   |
| Income      Taxes                        |   |                            | -          |   |   |   | - |   |
| NET      LOSS                            |   | $                               | (5,312,550 | ) |   | $ | (6,562,550 | ) |
| BASIC      AND DILUTED LOSS PER SHARE OF |   |                            |       |   |   |   |   |   |
| COMMON      STOCK                        |   | $                               | (0.13      | ) |   | $ | (0.16 | ) |
| WEIGHTED      AVERAGE NUMBER OF          |   |                            |       |   |   |   |   |   |
| SHARES      OUTSTANDING                  |   |                            | 40,107,737 |   |   |   | 40,107,737 |   |

----

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

----

----

| Item      3. | Quantitative      and Qualitative Disclosures About MarketRisk. |
|--------------|-----------------------------------------------------------------|

| Item      4(T).  | Controls      and Procedures. |
|-----------------------|-------------------------------|

----

| Item      1. | Legal      Proceedings |
|--------------|------------------------|

| Item      1A. | Risk      Factors |
|---------------|-------------------|

| Item      2. | Unregistered      Sales of Equity Securities and Use ofProceeds |
|--------------|-----------------------------------------------------------------|

| Item      3. | Defaults      Upon Senior Securities |
|--------------|--------------------------------------|

| Item      4. | (Removed      and Reserved) |
|--------------|-----------------------------|

| Item      5. | Other      Information |
|--------------|------------------------|

| Item      6. | Exhibits |
|--------------|----------|

|   | 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:  September      22, 2010 | By:                                | /S/ William D.      Abajian |
|                                     |                                    | William      D. Abajian |
|                                     |                                    | President,      C.E.O. and Director |
|                                     |                                    | (Acting      Principal AccountingOfficer) |

----