----

----

| o | REGISTRATION      STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT      OF 1934 |
|---|----------------------------------------------------------------------------------------------------------|

| x | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 - For the fiscal year ended April 30,2008 |
|---|------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | For      the fiscal yearended:  N/A |
|--------|-----------------------------------------------|

|   | OR |
|--------|----|

| o | SHELL      COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT OF 1934 |
|---|-------------------------------------------------------------------------------------------------------|

| Title of Each ClassCommon      Shares, no par value | Outstanding at April 30, 200823,942,759 |
|-----------------------------------------------------|-----------------------------------------|

----

----

| TABLE OF CONTENTS                                                                                                                                                                                                                                                                                                                           |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                        |   |   |
| EXPLANATORY      NOTE:...................................................................................................................................................................               | 4      |   |
| ITEM 15. CONTROLS AND      PROCEDURES..........................................................................................................................................                                                         | 4      |   |
| ITEM 17. FINANCIAL      STATEMENTS................................................................................................................................................                                              | 6      |   |
| ITEM 19.      EXHIBITS......................................................................................................................................................................... | 6      |   |
|                                                                                                                                                                                                                                                                                                                                        |   |   |
| SIGNATURE PAGE      9                                                                                                                                                                                                                                                                                                                       |   |   |

----

EXPLANATORY NOTE:

| §   | Item      15, Controls and Procedures - we have revised our disclosure to: clearly      indicate management’s conclusion that the disclosure controls and      procedures were ineffective; identify the material weaknesses management      identified due to material weakness in the Company’s internal controls      over financial reporting which rendered the Company’s internal controls      ineffective; and disclose the Company’s actions and plans to remedy this      deficiency; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Financial      Statements- we have amended Note 12(ii) to amend the correct technology      under the agreement; and Note 15 “Reconciliation of United States and      Canadian Generally Accepted Accounting Principals” to reflect an amendment      to the accounting of the change in the Company’s proportionate share of      it’s subsidiary equity which should have been accounted as an equity      transaction for calculation of the gains recognized on the sale of      subsidiary’s shares. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM15.

----

| -   | the      Company’s financial reporting is carried out by our contracted management      accountants, and the Company did not monitor and review the work performed      by our management accountants closely enough in the preparation of      financial statements, footnotes and financial data provided to the      Company’s registered public accounting firm in connection with the annual      audit; and |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Our      company does not have in-house personnel with the technical knowledge to      identify and address some of the reporting issues surrounding certain      complex or non-routinetransactions. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| a)   | To      reinstate previously eliminated foreign currency translation adjustments      upon consolidation, |
|----------------|-----------------------------------------------------------------------------------------------------------|

| b)   | To      reclassify subscriptions received by a subsidiary as    equity, |
|----------------|-------------------------------------------------------------------------|

| c)   | To      reclassify research and development, and amortization,  and |
|----------------|---------------------------------------------------------------------|

| d)   | To      adjust non-controlling interest as a result of the changes in a) and b)      above. |
|----------------|---------------------------------------------------------------------------------------------|

| -   | replaced      its management accounting professionals with new management accountants      with the requisite technical accounting knowledge, and will more closely      monitor the work of, and communicate with, our new management      accountants; |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | engaged      a new independent registered public accounting firm as announced by the      Company on its Form 6-K filed November 19, 2008, and as filed in Canada on      SEDAR (www.sedar.com)      on October 1, 2008; and |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | will      gain a thorough understanding of transactions involving material, complex      and non-routine matters and seek guidance from third-party experts or      consultants. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM17.

----

ITEM19.

| Number         | Description                                                                                                                                                                                                                                                                                                                 |   |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|           |                                                                                                                                                                                                                                                                                                                        |   |
| 1.1            | Articles      of Incorporation with Bylaws dated October 6, 1982                                                                                                                                                                                                                                                            | (1)    |
| 1.2            | Certificate      of Name Change and Special Resolution dated February 23,    1993                                                                                                                                                                                                                                           | (1)    |
| 1.3            | Memorandum      and articles of incorporation amended effective April 5,    2005                                                                                                                                                                                                                                            | (9)    |
| 2.1            | Special      rights and restrictions attaching to the Common Shares without par value      and the Class A non-voting shares without par value. Special resolution      dated November 25, 1985                                                                                                                             | (1)    |
| 4.      (a) 1  | Contract      among the Company, Rand Technologies Corp. and Rand Energy Group Inc.      regarding formation of Rand Energy Group Inc. and arrangement of various      inter- related matters, dated March 28, 1990                                                                                                         | (1)    |
| 4.      (a) 2  | Energy      Group Acquisition Agreement among the Company, Rand Cam-Engine      Corporation, James L. McCann and Rand Energy Group Inc. regarding      acquisition of technology, and rights to the Rand Cam-Engine, dated March      28, 1990                                                                              | (1)    |
| 4.      (a) 3  | Contract      among the Company, Rand Cam-Engine Corporation Rand Energy Group Inc. and      James L. McCann regarding arrangement of various inter-related matters      concerning issuance of shares, payments, royalties, etc., dated July 30,      1992                                                                 | (1)    |
| 4.      (a) 4  | Agreement      with Center for Industrial Research Applications (CIRA) regarding Year 2:      Engine Refinement and Testing on the Rand-Cam Engine                                                                                                                                                                          | (1)    |
| 4.      (a) 5  | Research      & Development Agreement Between Members of the Consortium of Reg      Technologies Inc., Rand Energy Group Inc., Hercules Incorporated and The      West Virginia University Research Corporation, dated May 10,      1994                                                                                | (1)    |
| 4.      (a) 6  | Agreement      dated October 31, 1995 between the Company and REGI U.S., Inc. regarding      assignment of Machine Vision Technology agreement with Integral Vision      Systems, Inc.                                                                                                                                      | (2)    |
| 4.      (a) 7  | Cooperative      Agreement between the Company and Global Aircraft Corporation regarding      NASA General Aviation Propulsion Program                                                                                                                                                                                      | (3)    |
| 4.      (a) 8  | Agreement      dated June 22, 1997 between John Weston and the Company regarding the      acquisition of rights to Air/Vapour Flow Systems by the Company from      Weston                                                                                                                                                  | (4)    |
| 4.      (a) 9  | Agreement      dated September 23, 1997 between the Company, REGI U.S., Inc. and SMR      Investments Ltd. regarding the assignment of the above agreement by the      Company to REGI and SMR pending regulatory approval of the original      agreement                                                                   | (4)    |
| 4.      (a) 10 | Agreement      dated December 31, 1997 between the Company REGI U.S., Inc. and SMR      Investments Ltd. regarding the Canadian rights to the AVFS and repayment      of advances to Weston by SMR                                                                                                                          | (4)    |
| 4.      (a) 11 | Joint      Venture Agreement dated July 28, 1998 between REGI U.S., Inc and Trans Air      Manufacturing Corporation regarding development and manufacturing of a      prototype Bus Compressor                                                                                                                             | (4)    |
| 4.      (a) 12 | Agreement      dated August 5, 1998 between the Company and T.W. Blasingame Company, Inc.      (Blasingame) regarding the licensing of certain Rand Cam/Direct Charge      Engine manufacturing rights to Blasingame and licensing of certain rights      to the "Vane Restraint Mechanism" by Blasingame to the    Company | (5)    |
| 4.      (a) 13 | Cooperative      and Licensing Agreement dated December 14, 1998 between the Company, REGI      U.S., Inc. Rand Energy Group, Inc. USA and Global Aircraft Corporation      regarding the NASA SBIR Phase I Contract for development of the Rand-Cam      Diesel Aircraft Engine                                            | (5)    |
| 4.      (a) 14 | Agreement      made as of October 27, 2000 with GHM Inc. regarding 50% interest in the      rights to the hydrogen separator technology                                                                                                                                                                                     | (7)    |
| 4.      (a) 15 | Agreement      between Radian, Inc., Reg Technologies Inc., REGI U.S., Inc. and Rand      Energy Group Inc. made as of April 24, 2002                                                                                                                                                                                       | (8)    |
| 4.      (a) 16 | Agreement      between REGI and Advanced Ceramics Research dated March 20,      2002                                                                                                                                                                                                                                        | (8)    |
| 4.      (a) 17 | Agreement      between REGI U.S, Inc. and Reg Technologies Inc. and Anuvu Incorporation      dated June 29, 2005                                                                                                                                                                                                            | (9)    |
| 4.      (b) 1  | Management      Agreement between the Company and SMR Investments Ltd., dated April 2,      1993                                                                                                                                                                                                                            | (1)    |
| 4.      (b) 2  | Agreement      between Brian Cherry, Sky Technologies, Inc. and Rand Energy Group Inc.,      regarding U.S. rights to the Rand Cam/Direct Charge Engine dated August      20, 1993                                                                                                                                          | (1)    |
| 4.      (b) 3  | Employment      Agreement between Sky Technologies, Inc. and Patrick Badgley dated      February 9, 1994                                                                                                                                                                                                                    | (1)    |
| 4.      (b) 4  | Management      Agreement between Sky Technologies, Inc. and Access Information Services,      Inc., dated April 1, 1994                                                                                                                                                                                                    | (1)    |
| 4.      (b) 5  | Agreement      between the Company and Rand Energy Group Inc. granting the Company rights      to negotiate and sell licenses and marketing rights for the Rand Cam      Engine, dated February 27, 1992                                                                                                                    | (1)    |
| 4.      (b) 6  | Management      Agreement dated May 1, 1996 between the Company and SMR Investments      Ltd.                                                                                                                                                                                                                               | (3)    |
| 8.1            | List      of Parents and Subsidiaries of the Company                                                                                                                                                                                                                                                                        | (10)   |
| 12.1           | Certification pursuant to Title 18, United States      Code, Section 1350 as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 (John G. Robertson)                                                                                                                                                | (11)   |
| 12.2           | Certification pursuant to Title 18, United States      Code, Section 1350 as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 (James Vandeberg)                                                                                                                                                  | (11)   |
| 13.1           | Certification pursuant to Title 18, United States      Code, Section 1350 as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 (John G. Robertson)                                                                                                                                                | (11)   |
| 13.2           | Certification pursuant to Title 18, United States      Code, Section 1350 as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 (James Vandeberg)                                                                                                                                                  | (11)   |
| 15.1           | Consent of Smythe Ratcliffe LLP                                                                                                                                                                                                                                                                                             | (11)   |

----

|   | incorporated      by reference to the Registrant’s Registration Statement on Form 20-F filed      on June 15, 1994 with the US Securities and Exchange      Commission |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F for the fiscal      year ended April 30, 1996 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (2)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F for the fiscal      year ended April 30, 1997 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (3)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F for the fiscal      year ended April 30, 1998 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (4)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F for the fiscal      year ended April 30, 1999 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (5)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F for the fiscal      year ended April 30, 2000 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (6)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F for the fiscal      year ended April 30, 2001 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (7)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F for the fiscal      year ended April 30, 2002 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (8)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F for the fiscal      year ended April 30, 2006 |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (9)   | incorporated      by reference to the Registrant’s Annual Report on Form 20-F/A for the      fiscal year ended April 30, 2006 |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | Exhibits      filed herewith |
|------------------|------------------------------|

----

----

----

|  7th      Floor, Marine Building355      Burrard Street, Vancouver, BCCanada      V6C 2G8  |  Fax:                604.688.4675Telephone:        604.687.1231Web:            SmytheRatcliffe.com |   |
|------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|                                                                                  |   | April      30,2008 |        |   | April      30,2007(Restated      – Note 13) |   |
|---------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|---------------------------------------------------|--------|
|                                                                                  |   | $                  |        |   | $                                                 |   |
|                                                                                  |   |               |        |   |                                              |   |
| ASSETS                                                                                |   |               |        |   |                                              |   |
|                                                                                  |   |               |        |   |                                              |   |
| Current      Assets                                                                   |   |               |        |   |                                              |   |
|                                                                                  |   |               |        |   |                                              |   |
| Cash                                                                                  |   |               | 258         |   |                                              |   | 294,463 |   |
| GST      and interest receivable                                                      |   |               | 7,020       |   |                                              |   | 11,329 |   |
| Prepaid      expenses                                                                 |   |               | 5,016       |   |                                              |   | 47,933 |   |
| Due      from related parties [Note 10(a)]                                            |   |               | 16,491      |   |                                              |   | 58,420 |   |
| Advances      to equity accounted investee [Note 8]                                   |   |               | 112,312     |   |                                              |   | – |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Total      Current Assets                                                             |   |               | 141,097     |   |                                              |   | 412,145 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Equipment      [Note 9]                                                               |   |               | 10,199      |   |                                              |   | 12,731 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
|                                                                                  |   |               | 151,296     |   |                                              |   | 424,876 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                       |   |               |        |   |                                              |   |   |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Current      Liabilities                                                              |   |               |        |   |                                              |   |   |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Accounts      payable and accrued liabilities                                         |   |               | 44,589      |   |                                              |   | 373,259 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Shareholders’      Equity                                                       |   |               |        |   |                                              |   |   |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Share      Capital [Note 5]                                                           |   |               | 11,356,689  |   |                                              |   | 11,356,689 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Contributed      Surplus [Note 7]                                                     |   |               | 2,024,832   |   |                                              |   | 849,839 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Foreign      Currency Translation Adjustments                                         |   |               | –     |   |                                              |   | 639,758 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Deficit                                                                               |   |               | (13,274,814 | )      |                                              |   | (12,794,669 | ) |
|                                                                                  |   |               |        |   |                                              |   |   |   |
|                                                                                  |   |               | 106,707     |   |                                              |   | 51,617 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
|                                                                                  |   |               | 151,296     |   |                                              |   | 424,876 |   |
|                                                                                  |   |               |        |   |                                              |   |   |   |
| Going      Concern [Note 1]Commitments      [Note 12]Subsequent      Events [Note 14] |   |               |        |   |                                              |   |   |   |

| Approved      on behalf of the Board |
|--------------------------------------|
|                                 |
| "John      Robertson" (signed)       |
| John      G. Robertson, Director     |
| "Jennifer      Lorette" (signed)     |
| Jennifer      Lorette, Director      |

----

|                                                                                            |   | For      the YearEnded      April 30,2008 |       |   | For      the YearEnded      April 30,2007(Restated      –Note      13) |   |       | For      the yearEnded      April 30,2006(Restated      –Note      13) |   |
|-------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|------------------------------------------------------------------------------|--------|------------|------------------------------------------------------------------------------|--------|
|                                                                                            |   | $                                         |       |   | $                                                                            |   |       | $                                                                            |   |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |
| Operating      Expenses                                                                         |   |                                      |       |   |                                                                         |   |       |                                                                         |   |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |
| General      and administrative [Note 10 (b)(c)(e)]                                             |   |                                      | 1,428,432  |   |                                                                         |   | 1,677,956  |                                                                         |   |   | 1,418,948 |   |
| Research      and development [Note 10 (d)]                                                     |   |                                      | 276,616    |   |                                                                         |   | 205,103    |                                                                         |   |   | 155,135 |   |
| Impairment      loss on intangible assets [Note 4]                                              |   |                                      | –    |   |                                                                         |   | –    |                                                                         |   |   | 245,356 |   |
| Foreign      exchange                                                                           |   |                                      | 46,850     |   |                                                                         |   | (3,819     | )                                                                            |   |   | 72,860 |   |
| Mineral      property maintenance costs                                                         |   |                                      | 8,200      |   |                                                                         |   | 7,560      |                                                                         |   |   | – |   |
| Amortization                                                                                    |   |                                      | 3,869      |   |                                                                         |   | 1,413      |                                                                         |   |   | – |   |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
| Operating      Loss                                                                             |   |                                      | (1,763,967 | )      |                                                                         |   | (1,888,213 | )                                                                            |   |   | (1,892,299 | ) |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
| Other      Income                                                                               |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
| Gain      on sale of subsidiary’s shares                                                  |   |                                      | 292,149    |   |                                                                         |   | 616,974    |                                                                         |   |   | 385,853 |   |
| Gain      on issue by subsidiary of its own shares outside the consolidated group      [Note 6] |   |                                      | 228,934    |   |                                                                         |   | 147,414    |                                                                         |   |   | 331,949 |   |
| Interest                                                                                        |   |                                      | 1,276      |   |                                                                         |   | 14,414     |                                                                         |   |   | 428 |   |
| Non-controlling      interest                                                                   |   |                                      | 761,463    |   |                                                                         |   | 467,958    |                                                                         |   |   | 910,475 |   |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
| Net      Loss and Comprehensive Loss for the Year                                               |   |                                      | (480,145   | )      |                                                                         |   | (641,453   | )                                                                            |   |   | (263,594 | ) |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
| Basic      Loss Per Share                                                                       |   |                                      | (0.02      | )      |                                                                         |   | (0.03      | )                                                                            |   |   | (0.01 | ) |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
| Weighted      Average Number of Common Shares outstanding                                       |   |                                      | 23,849,000 |   |                                                                         |   | 23,831,000 |                                                                         |   |   | 23,404,000 |   |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |
|                                                                                            |   |                                      |       |   |                                                                         |   |       |                                                                         |   |   |   |   |

----

|                                                  |   | For      the YearEnded      April 30,2008 |       |   | For      the YearEnded      April30,2007(Restated      –Note      13) |   |       | For      the YearEnded      April 30,2006(Restated      –Note      13) |   |
|-------------------------------------------------------|--------|-------------------------------------------|------------|--------|-----------------------------------------------------------------------------|--------|------------|------------------------------------------------------------------------------|--------|
|                                                  |   | $                                         |       |   | $                                                                           |   |       | $                                                                            |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |
| Operating      Activities                             |   |                                      |       |   |                                                                        |   |       |                                                                         |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |
| Net      loss                                         |   |                                      | (480,145   | )      |                                                                        |   | (641,453   | )                                                                            |   |   | (263,594 | ) |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Items      not involving cash                         |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Accounts      payable written-off                     |   |                                      | –    |   |                                                                        |   | –    |                                                                         |   |   | (87,209 | ) |
| Stock-based      compensation                         |   |                                      | 247,059    |   |                                                                        |   | 296,528    |                                                                         |   |   | 129,830 |   |
| Non-controlling      interest                         |   |                                      | (761,463   | )      |                                                                        |   | (467,958   | )                                                                            |   |   | (910,475 | ) |
| Gain      on issue by subsidiary of its own shares    |   |                                      | (228,934   | )      |                                                                        |   | (147,414   | )                                                                            |   |   | (331,949 | ) |
| Gain      on sale of subsidiary’s shares        |   |                                      | (292,149   | )      |                                                                        |   | (616,974   | )                                                                            |   |   | (385,853 | ) |
| Shares      issued for services                       |   |                                      | 36,722     |   |                                                                        |   | 54,055     |                                                                         |   |   | – |   |
| Impairment      loss on intangible assets             |   |                                      | –    |   |                                                                        |   | –    |                                                                         |   |   | 245,356 |   |
| Amortization      of deferred compensation            |   |                                      | –    |   |                                                                        |   | 1,138      |                                                                         |   |   | 14,246 |   |
| Amortization                                          |   |                                      | 3,869      |   |                                                                        |   | 1,413      |                                                                         |   |   | – |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Changes      in non-cash working capital items        |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| GST      and interest receivable                      |   |                                      | 4,309      |   |                                                                        |   | (6,256     | )                                                                            |   |   | (1,883 | ) |
| Prepaid      expenses                                 |   |                                      | 25,325     |   |                                                                        |   | 33,852     |                                                                         |   |   | (50,961 | ) |
| Accounts      payable and accrued liabilities         |   |                                      | 96,588     |   |                                                                        |   | 295,307    |                                                                         |   |   | 41,636 |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Net      Cash Used In Operating Activities            |   |                                      | (1,348,819 | )      |                                                                        |   | (1,197,762 | )                                                                            |   |   | (1,600,856 | ) |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Financing      Activities                             |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Shares      issued                                    |   |                                      | –    |   |                                                                        |   | –    |                                                                         |   |   | 262,468 |   |
| Shares      issued by subsidiary                      |   |                                      | 651,140    |   |                                                                        |   | 552,935    |                                                                         |   |   | 1,278,188 |   |
| Subscriptions      received by subsidiary             |   |                                      | –    |   |                                                                        |   | –    |                                                                         |   |   | 4,452 |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Net      Cash Provided by Financing Activities        |   |                                      | 651,140    |   |                                                                        |   | 552,935    |                                                                         |   |   | 1,545,108 |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Investing      Activities                             |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Advances      from (to) investee and other affiliates |   |                                      | 166,215    |   |                                                                        |   | (102,800   | )                                                                            |   |   | (114,626 | ) |
| Net      cash from deemed disposition of subsidiary   |   |                                      | (7,748     | )      |                                                                        |   | –    |                                                                         |   |   | – |   |
| Proceeds      on sale of subsidiary’s shares    |   |                                      | 261,820    |   |                                                                        |   | 621,526    |                                                                         |   |   | 390,653 |   |
| Purchase      of equipment                            |   |                                      | (1,338     | )      |                                                                        |   | (14,144    | )                                                                            |   |   | – |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Net      Cash Provided by Investing Activities        |   |                                      | 418,949    |   |                                                                        |   | 504,582    |                                                                         |   |   | 276,027 |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Effect      of Exchange Rate Changes on Cash          |   |                                      | (15,475    | )      |                                                                        |   | 6,931      |                                                                         |   |   | 40,764 |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| (Decrease)/Increase      in Cash                      |   |                                      | (294,205   | )      |                                                                        |   | (133,314   | )                                                                            |   |   | 261,043 |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Cash      - Beginning of Year                         |   |                                      | 294,463    |   |                                                                        |   | 427,777    |                                                                         |   |   | 166,734 |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Cash      - End of Year                               |   |                                      | 258        |   |                                                                        |   | 294,463    |                                                                         |   |   | 427,777 |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Supplemental      Disclosures                         |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |
| Interest      paid                                    |   |                                      | –    |   |                                                                        |   | –    |                                                                         |   |   | – |   |
| Income      tax paid                                  |   |                                      | –    |   |                                                                        |   | –    |                                                                         |   |   | – |   |
|                                                  |   |                                      |       |   |                                                                        |   |       |                                                                         |   |   |   |   |

----

|                                                     |   | CommonSharesIssued# |       |   | CommonShares$ |   |       | ContributedSurplus$ |   |   | OtherComprehensiveIncome      (Loss)$ |   |   | DeficitAccumulatedDuring      theExplorationStage$ |     |   | TotalShareholders’Equity$ |   |
|----------------------------------------------------------|--------|---------------------|------------|--------|---------------|--------|------------|---------------------|--------|--------|---------------------------------------|--------|--------|----------------------------------------------------|----------|--------|---------------------------------|--------|
|                                                     |   |                |       |   |          |   |       |                |   |   |                                  |   |   |                                               |     |   |                            |   |
| Balance      – April 30, 2006 [Restated - Note 13] |   |                | 23,899,009 |   |          |   | 11,343,564 |                |   |   | 552,173                               |   |   |                                               | 631,794  |   |                            |   | (12,153,216 | ) |   |   | 374,315 |   |
| Options      exercised                                   |   |                | 43,750     |   |          |   | 13,125     |                |   |   | –                               |   |   |                                               | –  |   |                            |   | – |   |   |   | 13,125 |   |
| Stock-based      compensation                            |   |                | –    |   |          |   | –    |                |   |   | 296,528                               |   |   |                                               | –  |   |                            |   | – |   |   |   | 296,528 |   |
| Deferred      compensation                               |   |                | –    |   |          |   | –    |                |   |   | 1,138                                 |   |   |                                               | –  |   |                            |   | – |   |   |   | 1,138 |   |
| Foreign      currency translation adjustment             |   |                | –    |   |          |   | –    |                |   |   | –                               |   |   |                                               | 7,964    |   |                            |   | – |   |   |   | 7,964 |   |
| Net      loss for the year                               |   |                | –    |   |          |   | –    |                |   |   | –                               |   |   |                                               | –  |   |                            |   | (641,453 | ) |   |   | (641,453 | ) |
|                                                     |   |                |       |   |          |   |       |                |   |   |                                  |   |   |                                               |     |   |                            |   |   |   |   |   |   |   |
| Balance      – April 30, 2007 [Restated - Note 13] |   |                | 23,942,759 |   |          |   | 11,356,689 |                |   |   | 849,839                               |   |   |                                               | 639,758  |   |                            |   | (12,794,669 | ) |   |   | 51,617 |   |
| Stock-      based compensation                           |   |                | –    |   |          |   | –    |                |   |   | 247,059                               |   |   |                                               | –  |   |                            |   | – |   |   |   | 247,059 |   |
| Deconsolidation      adjustment [Note 7]                 |   |                | –    |   |          |   | –    |                |   |   | (886,589                              | )      |   |                                               | (648,763 | )      |                            |   | – |   |   |   | (1,535,352 | ) |
| Deconsolidation      of subsidiary [Note 7]              |   |                | –    |   |          |   | –    |                |   |   | 1,808,851                             |   |   |                                               | –  |   |                            |   | – |   |   |   | 1,808,851 |   |
| Foreign      currency translation adjustment             |   |                | –    |   |          |   | –    |                |   |   | 5,672                                 |   |   |                                               | 9,005    |   |                            |   | – |   |   |   | 14,677 |   |
| Net      loss for the year                               |   |                | –    |   |          |   | –    |                |   |   | –                               |   |   |                                               | –  |   |                            |   | (480,145 | ) |   |   | (480,145 | ) |
|                                                     |   |                |       |   |          |   |       |                |   |   |                                  |   |   |                                               |     |   |                            |   |   |   |   |   |   |   |
| Balance      – April 30, 2008                      |   |                | 23,942,759 |   |          |   | 11,356,689 |                |   |   | 2,024,832                             |   |   |                                               | –  |   |                            |   | (13,274,814 | ) |   |   | 106,707 |   |

----

| 1.   | NATURE      OF OPERATIONS AND GOING CONCERN |
|----------------|---------------------------------------------|

| 2.   | SIGNIFICANT      ACCOUNTING POLICIES |
|----------------|--------------------------------------|

|   | a)     | Basis      of accounting and principles of consolidation These      consolidated financial statements are prepared using Canadian generally      accepted accounting principles (“GAAP”) and are presented in Canadian      dollars. These      financial statements include the accounts of the Company and its 51% owned      subsidiary, Rand, which owns a 9% interest in REGI. The Company also owns      a 12% (2007 - 12%) interest in REGI. Prior to April 30, 2008, REGI was      considered a controlled subsidiary for consolidation purposes by way of      control through an annually renewable voting trusts agreement, with other      affiliated companies. This trust agreement gave the Company 50% control of      the voting shares of REGI. The agreement could be cancelled by the      President of the 51% owned subsidiary with seven days’ written notice to      the affiliated companies. Effective April 30, 2008, the voting trusts      agreement was cancelled (Note 7). All      inter-company accounts and transactions have been    eliminated. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|   | b)     | Investments Investments      in which the Company has the ability to exert significant influence but      does not have control are accounted for using the equity method whereby      the original cost of the investment is adjusted annually for the Company's      share of earnings, losses and dividends during the current      year. When      the Company’s carrying value in an equity method investee company is      reduced to zero, no further losses are recorded in the Company’s      consolidated financial statements unless the Company guaranteed      obligations of the investee company or has committed additional funding.      When the investee company subsequently reports income, the Company will      not record its share of such income until it equals the amount of its      share of losses not previously recognized.                                                                                                                                                                                                                              |

----

| 2.   | SIGNIFICANT      ACCOUNTING POLICIES (Continued) |
|----------------|--------------------------------------------------|

|   | c)     | Consolidation      of variable interest entities The      Company has adopted Accounting Guideline 15, “Consolidation of Variable      Interest Entities”, issued by the Canadian Institute of Chartered      Accountants (”CICA”) for annual and interim periods beginning on or after      November 1, 2004. This guideline addresses the application of      consolidation principles to entities that are subject to control on a      basis other than ownership of voting interests. The adoption of this      guideline did not have any impact on the Company’s financial      statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |
|   | d)     | Cash      and cash equivalents The      Company considers all highly liquid instruments with maturity of three      months or less at the time of issuance to be cash    equivalents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |
|   | e)     | Use      of estimates The      preparation of financial statements in conformity with Canadian generally      accepted accounting principles requires management to make estimates and      assumptions that affect the reported amounts of assets and liabilities and      disclosure of contingent assets and liabilities at the date of the      financial statements, and the reported amounts of revenues and expenses      during the reporting period. Significant areas requiring the use of      management estimates relate to the impairment of mineral property      interests, useful life and recoverability of long-lived assets, accrued      liabilities, assumptions used in the determination of the fair value of      stock-based compensation and future income tax asset valuation allowances.      Actual results could differ from those estimates. The Company bases its      estimates and assumptions on current facts, historical experience and      various other factors that it believes to be reasonable under the      circumstances, the results of which form the basis for making judgments      about the carrying values of assets and liabilities, and the accrual of      costs and expenses that are not readily apparent from other sources. The      actual results experienced by the Company may differ materially and      adversely from the Company’s estimates. To the extent there are material      differences between the estimates and the actual results, future results      of operations and future cash flows would be affected. |
|   |   |
|   | f)     | Intangible      assets The      Company accounts for goodwill and intangible assets in accordance with      CICA Handbook Section 3062, “Goodwill and Other Intangible      Assets”. Intangible assets with indefinite useful lives are not      amortized, but instead tested for impairment at least annually by      comparing the carrying value to the respective fair value. Intangible      assets with estimated useful lives are amortized over their respective      estimated useful lives to their estimated residual values, and reviewed      for impairment by assessing the recoverability of the carrying      values.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |
|   | g)     | Equipment Equipment      consists of office furniture and equipment, and computer hardware recorded      at cost and amortized on a straight-line basis over a five-year and      three-year period, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |
|   | h)     | Research      and development costs The      Company is in the development stage and all costs relating to research and      development are charged to operations as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |
|   | i)     | Long-lived      assets The      Company monitors the recoverability of long-lived assets, based on factors      such as current market value, future asset utilization, business climate      and future undiscounted cash flows expected to result from the use of the      related assets. The Company's policy is to record an impairment loss in      the period when it is determined that the carrying amount of the assets      may not be recoverable. The impairment loss is calculated as the amount by      which the carrying amount of the assets exceeds the undiscounted estimate      of future cash flows from theasset.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

| 2.   | SIGNIFICANT      ACCOUNTING POLICIES (Continued) |
|----------------|--------------------------------------------------|

|   | j)     | Foreign      currency translation |
|--------|--------|-----------------------------------|
|   |   |                              |
|   |   | (i)                               | Translation      of foreign currency transactions and balances Monetary      balance sheet items are translated at the rate prevailing at the balance      sheet date. Revenues, expenses and non-monetary balance sheet items in      foreign currencies are translated into Canadian dollars at the rate of      exchange prevailing on the transaction dates. The resulting exchange gain      or loss is included in operations. |
|   |   |                              |   |
|   |   | (ii)                              | Translation      of foreign subsidiary balances Foreign      currency transactions are translated using the current method. Assets and      liabilities of non-integrated foreign subsidiaries are translated into      Canadian dollars at the rates of exchange on the balance sheet date. The      foreign subsidiary’s operating results are translated into Canadian      dollars using the average exchange rate for the year. Any resulting      translation gain or loss is deferred and included as a separate component      of shareholders’ equity. |
|   |   |                              |   |
|   | k)     |                              | Income      taxes The      Company follows the asset and liability method of accounting for income      taxes. Under this method of tax allocation, future income tax assets and      liabilities are determined based on differences between the financial      statement carrying values and their respective income tax basis (temporary      differences). Future income tax assets and liabilities are measured using      the tax rates expected to be in effect when temporary differences are      likely to reverse. The effect on future income tax assets and liabilities      of a change in tax rates is included in operations in the period in which      the change is enacted or substantially assured. The amount of future      income tax assets recognized is limited to the amount of the benefit that      is likely to be realized. |
|   |   |                              |   |
|   | l)     |                              | Share      issue costs Costs      of issuing shares are offset against the related share      proceeds. |
|   |   |                              |   |
|   | m)     |                              | Stock-based      compensation plans The      Company accounts for stock-based compensation using a fair value based      method with respect to all stock-based payments measured and recognized,      to directors, employees and non-employees. For directors and employees,      the fair value of the options is measured at the date of grant. For      non-employees, the fair value of the options is measured on the earlier of      the date at which the counterparty performance is complete or the date the      performance commitment is reached or the date at which the equity      instruments are granted if they are fully vested and non-forfeitable. For      directors, employees and non-employees, the fair value of the options is      accrued and charged to operations over the vesting period, with the offset      credited to contributed surplus. If and when the stock options are      ultimately exercised, the applicable amounts of contributed surplus are      transferred to share capital. |
|   |   |                              |   |
|   | n)     |                              | Loss      per share Basic      loss per share is calculated using the weighted average number of common      shares outstanding during the year. The Company uses the treasury stock      method for calculating diluted loss per share. Under this method the      dilutive effect on loss per share is recognized on the use of the proceeds      that could be obtained upon exercise of options, warrants and similar      instruments. It assumes that the proceeds would be used to purchase common      shares at the average market price during the period.However,      diluted loss per share is not presented where the effects of various      conversions and exercise of options and warrants would be anti-dilutive.      Shares held in escrow, other than where their release is subject to the      passage of time, are not included in the calculation of the weighted      average number of common sharesoutstanding. |

----

| 2.   | SIGNIFICANT      ACCOUNTING POLICIES (Continued) |
|----------------|--------------------------------------------------|

|   | o)     | Future      accounting changes The      following changes (i - iii) will apply for the Company to interim and      annual consolidated financial statements, commencing May 1, 2008, while      change (iv) will apply from May 1, 2009. The Company is in the process of      assessing the impact of these changes on its consolidated financial      statements. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
|   |   | (i)                                                                                                                                                                                                                                                                                                                                                                      | Capital      DisclosuresIn      February 2007, the CICA issued Handbook Section 1535, “Capital Disclosures”,      which requires the disclosure of both qualitative and quantitative      information that provides users of financial statements with information      to evaluate the entity’s objectives, policies and procedures for managing      capital.  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |   | (ii)                                                                                                                                                                                                                                                                                                                                                                     | Financial      Instruments In      February 2007, the CICA issued two new standards, Section 3862, “Financial      Instruments Disclosures”, and Section 3863, “Financial Instruments      Presentation”. These sections will replace the existing Section      3861, “Financial      Instruments Disclosure and Presentation”. Section 3862 provides      users with information to evaluate the significance of the financial      instruments of the entity’s financial position and performances, nature      and extent of risks arising from financial instrument, and how the entity      manages those risks. Section 3863 deals with the classification of      financial instruments, related interest, dividends, losses and gains, and      the circumstances in which financial assets and financial liabilities are      offset. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |   | (iii)                                                                                                                                                                                                                                                                                                                                                                    | Going      concern In      June 2007, the CICA amended Handbook Section 1400, “General Standards of      Financial Statement Presentation”, which requires management to      make an assessment of a company’s ability to continue as a going-concern.      When financial statements are not prepared on a going-concern basis that      fact shall be disclosed together with the basis on which the financial      statements are prepared and the reason why the Company is not considered a      going-concern. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |   | (iv)                                                                                                                                                                                                                                                                                                                                                                     | Goodwill      and Intangible Assets In      February 2008, the CICA issued Handbook Section 3064, “Goodwill and intangible      assets”, replacing Section 3062, “Goodwill and other intangible      assets”, and Section 3450, “Research and development costs”. This      section establishes standards for the recognition, measurement,      presentation and disclosure of goodwill subsequent to its initial      recognition and of intangible assets by profit-oriented enterprises.      Standards concerning goodwill are unchanged from the standards included in      the previous Section 3062. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |   |
|   |   | (v)                                                                                                                                                                                                                                                                                                                                                                      | International      Financial Reporting Standards ("IFRS") In      2006, the Canadian Accounting Standards Board ("AcSB") published a new      strategic plan that will significantly affect financial reporting      requirements for Canadian companies. The AcSB strategic plan outlines the      convergence of Canadian generally accepted accounting principles with IFRS      over an expected five year transitional period. In February 2008, the AcSB      announced that 2011 is the changeover date for publicly-listed companies      to use IFRS, replacing Canada's own generally accepted accounting      principles. The date is for interim and annual financial statements      beginning on April 30, 2011. Implementation of the change will require the      restatement for comparative purposes of amounts reported by the Company      for the year ended April 30, 2010. While the Company has begun assessing      the adoption of IFRS for 2011, the financial reporting impact of the      transition to IFRS cannot be reasonably estimated at this      time. |

----

| 3.   | FINANCIAL      INSTRUMENTS |
|----------------|----------------------------|

| · Cash      and cash equivalents                 |   | Held      for trading            |
|------------------------------------------------------------|--------|----------------------------------|
| · Accounts      receivable and other receivables |   | Other      receivables           |
| · Accounts      payable and accrued liabilities  |   | Other      financial liabilities |

|   | a) | To      the extent that payments made or received on the Company’s monetary assets      and liabilities are affected by changes in prevailing market interest      rates, the Company is exposed to interest rate cash flow    risk. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | To      the extent that changes in prevailing market interest rates differ from      the interest rates in the Company’s monetary assets and liabilities, the      Company is exposed to interest rate pricerisk. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.   | FINANCIAL      INSTRUMENTS (Continued) |
|----------------|----------------------------------------|

| 4.   | INTANGIBLE      ASSETS |
|----------------|------------------------|

| 5.   | SHARE      CAPITAL |
|----------------|--------------------|

| 50,000,000 |   | Common      shares without par value                                                                                               |
|------------|--------|------------------------------------------------------------------------------------------------------------------------------------|
| 10,000,000 |   | Preferred      shares with a $1 par value, redeemable for common shares on the basis of 1      common share for 2 preferred shares |
| 5,000,000  |   | Class      A non-voting shares without par value. Special rights and restrictions      apply.                                      |

| a)  |   | Treasury      shares |
|----------|--------|----------------------|

|   | At      April 30, 2008, Rand owns 217,422 (2007 – 217,422) shares of the Company      valued at $43,485 that have been deducted from the total shares issued and      outstanding. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  |   | Escrowed      shares |
|----------|--------|----------------------|

|   | There      are 93,750 shares held in escrow, the release of which is subject to the      direction and determination of regulatory  authorities. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  |   | Stock      options |
|----------|--------|--------------------|

|   | The      Company has implemented a stock option plan (the "Plan") to be      administered by the Board of Directors. Pursuant to the Plan, the Board of      Directors has discretion to grant options for up to a maximum of 10% of      the issued and outstanding common shares of the Company at the date the      options are granted. The option price under each option shall be not less      than the discounted market price on the grant date. The expiry date of an      option shall be set by the Board of Directors at the time the option is      awarded, and shall not be more than five years after the grant      date. These      options have the following vestingschedule: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i)   | 25%      of the options vest upon granting of the option; such initial vest is      referred to as the “First Vesting”; |
|--------|----------------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | ii)   | The      second 25% of the options vest 90 days from the date of exercise of the      First Vesting; such second vesting is referred to as the “Second      Vesting”; |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii)   | The      third 25% of the options vest 90 days from the date of exercise of the      Second Vesting; such third vesting is referred to as the “Third      Vesting”; |
|--------|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv)  | The      fourth and final 25% of the options vest 90 days from the date of exercise      of the Third Vesting; and |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------|

|   | v)  | The      options expire 60 months from the date ofgrant. |
|--------|----------|----------------------------------------------------------|

|   | Options      granted to consultants engaged in investor relations activities will vest      in stages over a minimum period of 12 months with no more than 25% of the      options vesting in any three-monthperiod |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.   | SHARE      CAPITAL (Continued) |
|----------------|--------------------------------|

|                                  |   | 2008    |      |   | 2007                                 |   |
|---------------------------------------|--------|---------|-----------|--------|--------------------------------------|--------|
|                                  |   | Options |      |   | Weighted      Average Exercise Price |   |   | Options |   |   | Weighted      Average Exercise Price |   |
|                                  |   | #       |      |   | $                                    |   |   | # |   |   | $ |   |
|                                  |   |    |      |   |                                 |   |   |   |   |   |   |   |
| Outstanding      at beginning of year |   |    | 1,125,000 |   |                                 |   | 0.27 |   |   |   | 1,168,750 |   |   |   | 0.27 |   |
| Exercised                             |   |    | –   |   |                                 |   | – |   |   |   | (43,750 | ) |   |   | 0.30 |   |
|                                  |   |    |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding      at end of year       |   |    | 1,125,500 |   |                                 |   | 0.27 |   |   |   | 1,125,000 |   |   |   | 0.27 |   |
|                                  |   |    |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable      at end of year       |   |    | 300,000   |   |                                 |   | 0.27 |   |   |   | 300,000 |   |   |   | 0.27 |   |

| Expiry      Date                         |   | ExercisePrice |   |   | Shares      UnderOption |   |    | AggregateIntrinsicValue |   |   | WeightedAverageRemainingContractualLife(in      years) |   |
|------------------------------------------|--------|---------------|--------|--------|-------------------------|--------|---------|-------------------------|--------|--------|--------------------------------------------------------|--------|
|                                     |   | $             |   |   | #                       |   |    | $                       |   |   | #                                                      |   |
|                                     |   |          |   |   |                    |   |    |                    |   |   |                                                   |   |
| September      18, 2008                  |   |          | 0.30   |   |                    |   | 37,500  |                    |   |   | 4,500                                                  |   |   |   | 0.39 |   |
| March      4, 2009                       |   |          | 0.19   |   |                    |   | 62,500  |                    |   |   | 14,375                                                 |   |   |   | 0.84 |   |
| April      8, 2009                       |   |          | 0.14   |   |                    |   | 12,500  |                    |   |   | 3,500                                                  |   |   |   | 0.94 |   |
| October      20, 2010                    |   |          | 0.30   |   |                    |   | 187,500 |                    |   |   | 22,500                                                 |   |   |   | 2.47 |   |
|                                     |   |          |   |   |                    |   |    |                    |   |   |                                                   |   |   |   |   |   |
| Options      outstanding and exercisable |   |          |   |   |                    |   | 300,000 |                    |   |   | 44,875                                                 |   |   |   | 1.81 |   |

| 6.   | GAIN      ON SHARES ISSUED BY SUBSIDIARY |
|----------------|------------------------------------------|

|                                                                                  |   | $      | 2008    |   |   | $      | 2007    |   |   | $      | 2006    |   |
|---------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                                                                  |   |   |    |   |   |   |    |   |   |   |    |   |
| Gain      due to ownership of new assets resulting from subsidiary shares      issued |   |   | 228,934 |   |   |   | 147,414 |   |   |   | 331,949 |   |
|                                                                                  |   |   |    |   |   |   |    |   |   |   |    |   |

----

| 7.   | DECONSOLIDATION      OF SUBSIDIARY |
|----------------|------------------------------------|

|                                          |   | 2008   |      |
|-----------------------------------------------|--------|--------|-----------|
|                                          |   | $      |      |
|                                          |   |   |      |
| Assets                                        |   |   | (8,632    | ) |
| Liabilities                                   |   |   | 169,820   |   |
| Due      to related parties                   |   |   | 112,311   |   |
| Contributed      surplus                      |   |   | 886,589   |   |
| Accumulated      foreign exchange adjustments |   |   | 648,763   |   |
|                                          |   |   |      |   |
| Result      of deconsolidation of subsidiary  |   |   | 1,808,851 |   |

| 8.   | EQUITY      ACCOUNTED INVESTEE |
|----------------|--------------------------------|

|                                       |   | 2008   |     |
|--------------------------------------------|--------|--------|----------|
|                                       |   | $      |     |
|                                       |   |   |     |
| Investment      at cost                    |   |   | 215,800  |   |
| Cumulative      share of losses recognized |   |   | (215,800 | ) |
|                                       |   |   |     |   |
|                                       |   |   | –  |   |

| 9.   | EQUIPMENT |
|----------------|-----------|

|                                |   | 2008   |   |
|-------------------------------------|--------|--------|--------|
|                                |   | Cost$  |   |   | AccumulatedAmortization$ |   |   | Net      BookValue$ |   |
|                                |   |   |   |   |   |   |   |   |   |
| Computer      Hardware              |   |   | 6,632  |   |   |   | 2,776 |   |   |   | 3,856 |   |
| Office      furniture and equipment |   |   | 8,849  |   |   |   | 2,506 |   |   |   | 6,343 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |   | 15,481 |   |   |   | 5,282 |   |   |   | 10,199 |   |

----

| 9.   | EQUIPMENT      (Continued) |
|----------------|----------------------------|

|                                |   | 2007   |   |
|-------------------------------------|--------|--------|--------|
|                                |   | Cost$  |   |   | AccumulatedAmortization$ |   |   | Net      BookValue$ |   |
|                                |   |   |   |   |   |   |   |   |   |
| Computer      Hardware              |   |   | 5,295  |   |   |   | 677 |   |   |   | 4,618 |   |
| Office      furniture and equipment |   |   | 8,849  |   |   |   | 736 |   |   |   | 8,113 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |   | 14,144 |   |   |   | 1,413 |   |   |   | 12,731 |   |

| 10.   | RELATED      PARTY TRANSACTIONS |
|-----------------|---------------------------------|

| a)   | At      April 30, 2008, the Company is owed an aggregate of $16,491 (2007 -      $58,420) by related parties. The amounts owed are unsecured, non-interest      bearing and due on demand. These parties are companies that the president      of the Company controls or significantly  influences. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  | During      the year ended April 30, 2008, fees in the aggregate of $65,003 (2007 -      $134,193; 2006 - $15,475) for legal services have been paid or are payable      to a professional law firm in which a partner of the law firm is an      officer and director of theCompany. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  | During      the year ended April 30, 2008, rent of $12,857 (2007 - $14,840; 2006 -      $11,375) was paid to a company having common officers and      directors. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)  | During      the year ended April 30, 2008, project management fees of $30,688 (2007 -      $34,140; 2006 - $65,616) were paid to a company having common officers and      directors. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e)  | During      the year ended April 30, 2008, administrative fees, consulting fees, and      management and directors’ fees were paid to officers, directors and      companies controlled by officers and directors totalling $75,214 (2007 -      $59,406; 2006 – 163,788) for servicesrendered. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)  | On      April 30, 2008, the Company realized a gain of $1,808,851 as a result of      de-consolidation of a former subsidiary (see Note  7). |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | INCOME      TAXES |
|-----------------|-------------------|

|                           |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|--------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                           |   |   |    |   |   |   |    |   |   |
| Statutory      income tax rate |   |   | 33.25   | %      |   |   | 34.12   | %      |   |   | 35 | % |
| Adjust      foreign country    |   |   | – |   |   |   | 0.50    | %      |   |   | – |   |
| Adjust      for change in rate |   |   | (7.25   | %)     |   |   | – |   |   |   | – |   |
| Valuation      adjustment      |   |   | (26.00  | %)     |   |   | (34.62  | %)     |   |   | (35 | %) |
|                           |   |   |    |   |   |   |    |   |   |   |   |   |
| Effective      income tax rate |   |   | – |   |   |   | – |   |   |   | – |   |
|                           |   |   |    |   |   |   |    |   |   |   |   |   |

----

| 11.   | INCOME      TAXES (Continued) |
|-----------------|-------------------------------|

|                                                                        |   | 2008   |     |   | 2007   |   |
|-----------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                        |   | $      |     |   | $      |   |
| Future      income tax assets                                               |   |   |     |   |   |   |
|                                                                        |   |   |     |   |   |   |
| Tax value in excess of carrying      values of- Intangible      assets |   |   | 153,000  |   |   |   | 144,000 |   |
| - Property      and equipment                                          |   |   | 53,000   |   |   |   | 70,000 |   |
| Non-capital loss carry      forwards                                        |   |   | 549,000  |   |   |   | 642,000 |   |
|                                                                        |   |   |     |   |   |   |   |   |
| Total      gross future income tax assets                                   |   |   | 755,000  |   |   |   | 856,000 |   |
| Valuation      allowance                                                    |   |   | (755,000 | )      |   |   | (856,000 | ) |
|                                                                        |   |   |     |   |   |   |   |   |
| Net      future income tax asset                                            |   |   | –  |   |   |   | – |   |
|                                                                        |   |   |     |   |   |   |   |   |
| Future      income tax assets (of subsidiary)                               |   |   |     |   |   |   |   |   |
|                                                                        |   |   |     |   |   |   |   |   |
| Non-capital loss carry      forwards                                        |   |   | –  |   |   |   | 2,711,000 |   |
|                                                                        |   |   |     |   |   |   |   |   |
| Total      gross future income tax assets                                   |   |   | –  |   |   |   | 2,711,000 |   |
| Valuation      allowance                                                    |   |   | –  |   |   |   | (2,711,000 | ) |
|                                                                        |   |   |     |   |   |   |   |   |
| Net      future income tax asset                                            |   |   | –  |   |   |   | – |   |

|   |   | $      |      |
|--------|--------|--------|-----------|
| 2008   |   |   | 135,000   |   |
| 2009   |   |   | 138,000   |   |
| 2010   |   |   | 190,000   |   |
| 2014   |   |   | 145,000   |   |
| 2015   |   |   | 212,000   |   |
| 2026   |   |   | 402,000   |   |
| 2027   |   |   | 317,000   |   |
| 2028   |   |   | 571,000   |   |
|   |   |   |      |   |
|   |   |   | 2,110,000 |   |

| 12.   | COMMITMENTS |
|-----------------|-------------|

| a)   | In      connection with the acquisition of Rand, the Company has the following      royalty obligations: |
|----------------|----------------------------------------------------------------------------------------------------------|

| i)   | A      participating royalty is to be paid based on 5% of all net profits from      sales, licenses, royalties or income derived from the patented technology,      to a maximum amount of $10,000,000. The participating royalty is to be      paid in minimum annual instalments of $50,000 per year beginning on the      date the first revenues are derived from the license or sale of the      patented technology. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12.   | COMMITMENTS      (Continued) |
|-----------------|------------------------------|

| ii)   | Pursuant      to a letter of understanding between the Company and REGI (collectively      called the grantors) and West Virginia University Research Corporation      (“WVURC”), the grantors have agreed that WVURC shall own 5% of the      direct charge engine technology and will receive 5% of all net profits      from sales, licenses, royalties or income derived from the direct      charge engine technology. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii)  | A      1% net profit royalty will be payable to a director on all U.S - based      sales. |
|------------|-------------------------------------------------------------------------------------------|

| b)   | On      June 15, 2006, the Company entered into a lease agreement to lease office      premises for a period of three years and the option to renew the lease for      one additional term of three years, in consideration for $16,994 per year.      The future commitment is asfollows: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Amount$ |   |
|--------|--------|---------|--------|
|   |   |    |   |
| 2009   |   |    | 16,994 |   |
| 2010   |   |    | 2,124  |   |
|   |   |    |   |   |
|   |   |    | 19,118 |   |

| 13.   | RESTATEMENT |
|-----------------|-------------|

| ·   | To      adjust dilution of the parent company’s ownership due to the subsidiary      issuing shares to third parties, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | To      reinstate previously eliminated foreign currency translation adjustments      upon consolidation, and |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | To      reclassify subscriptions received by a subsidiary as    equity. |
|--------------------|-------------------------------------------------------------------------|

|                                                  |   | April      30, 2007As      PreviouslyReported$ |        |   | Adjustment$ |   |     |   | April      30, 2007As      Restated$ |   |
|-------------------------------------------------------|--------|------------------------------------------------|-------------|--------|-------------|--------|----------|--------|--------------------------------------|--------|
|                                                  |   |                                           |        |   |        |   |     |   |                                 |   |
| Consolidated      Balance Sheet                       |   |                                           |        |   |        |   |     |   |                                 |   |
|                                                  |   |                                           |        |   |        |   |     |   |                                 |   |
| Current      Liabilities                              |   |                                           |        |   |        |   |     |   |                                 |   |
| Accounts      payable and accrued liabilities         |   |                                           | 83,952      |   |        |   | 289,307  |   | (a)                                  |   |   | 373,259 |   |
|                                                  |   |                                           |        |   |        |   |     |   |                                 |   |   |   |   |
| Shareholders’      Equity                       |   |                                           |        |   |        |   |     |   |                                 |   |   |   |   |
| Subscriptions      Received                           |   |                                           | 289,307     |   |        |   | (289,307 | )      | (a)                                  |   |   | – |   |
| Contributed      Surplus                              |   |                                           | 850,733     |   |        |   | (894     | )      | (b)                                  |   |   | 849,839 |   |
| Foreign      Currency Translation Adjustments         |   |                                           | (74,706     | )      |        |   | 714,464  |   | (c)                                  |   |   | 639,758 |   |
| Deficit      Accumulated During the Development Stage |   |                                           | (12,081,099 | )      |        |   | (713,570 | )      |                                 |   |   | (12,794,669 | ) |

| (a)   | To      reclassify subscriptions received by a subsidiary from equity to accounts      payable and accrued liabilities. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (b)   | To      adjust for foreign exchangechanges. |
|-----------------|---------------------------------------------|

| (c)   | To      record foreign currency translation adjustments previously eliminated upon      consolidation. |
|-----------------|--------------------------------------------------------------------------------------------------------|

----

| 13.   | RESTATEMENT      (Continued) |
|-----------------|------------------------------|

|                                                  |   | April      30, 2007As      PreviouslyReported$ |        |   | Adjustment$ |   |     |   | April      30, 2007As      Restated$ |   |
|-------------------------------------------------------|--------|------------------------------------------------|-------------|--------|-------------|--------|----------|--------|--------------------------------------|--------|
|                                                  |   |                                           |        |   |        |   |     |   |                                 |   |
| Consolidated      Statement of Operations             |   |                                           |        |   |        |   |     |   |                                 |   |
|                                                  |   |                                           |        |   |        |   |     |   |                                 |   |
| General      and administration                       |   |                                           | (1,884,471  | )      |        |   | 206,515  |   | (a)                                  |   |   | (1,677,956 | ) |
| Research      and development                         |   |                                           | –     |   |        |   | (205,103 | )      | (a)                                  |   |   | (205,103 | ) |
| Foreign      exchange                                 |   |                                           | 23,130      |   |        |   | (19,311  | )      | (a)                                  |   |   | 3,819 |   |
| Non-controlling      interest                         |   |                                           | 570,401     |   |        |   | (102,443 | )      | (b)                                  |   |   | 467,958 |   |
| Amortization                                          |   |                                           | –     |   |        |   | (1,413   | )      | (a)                                  |   |   | (1,413 | ) |
| Net      loss for the year                            |   |                                           | (519,698    | )      |        |   | (121,755 | )      |                                 |   |   | (641,453 | ) |
|                                                  |   |                                           |        |   |        |   |     |   |                                 |   |   |   |   |
| Deficit      Accumulated During the Development Stage |   |                                           |        |   |        |   |     |   |                                 |   |   |   |   |
|                                                  |   |                                           |        |   |        |   |     |   |                                 |   |   |   |   |
| Deficit,      beginning of the year                   |   |                                           | (11,561,401 | )      |        |   | (591,815 | )      |                                 |   |   | (12,153,216 | ) |
| Deficit,      end of the year                         |   |                                           | (12,081,099 | )      |        |   | (713,570 | )      |                                 |   |   | (12,794,669 | ) |
|                                                  |   |                                           |        |   |        |   |     |   |                                 |   |   |   |   |
| Loss      Per Share – Basic and Diluted         |   |                                           | (0.02       | )      |        |   | (0.01    | )      |                                 |   |   | (0.03 | ) |

| (a)   | To      adjust for foreign exchange changes and reclassify research and      development and amortization. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (b)   | To      adjust non-controlling interest as a result of the above      changes. |
|-----------------|--------------------------------------------------------------------------------|

|                                                  |   | April      30, 2006As      PreviouslyReported$ |        |   | Adjustment$ |   |       |   | April      30, 2006As      Restated$ |   |
|-------------------------------------------------------|--------|------------------------------------------------|-------------|--------|-------------|--------|------------|--------|--------------------------------------|--------|
|                                                  |   |                                           |        |   |        |   |       |   |                                 |   |
| Consolidated      Statement of Operations             |   |                                           |        |   |        |   |       |   |                                 |   |
|                                                  |   |                                           |        |   |        |   |       |   |                                 |   |
| General      and administration                       |   |                                           | (1,574,083  | )      |        |   | 155,135    |   | (a)                                  |   |   | (1,418,948 | ) |
| Research      and development                         |   |                                           | –     |   |        |   | (155,135   | )      | (a)                                  |   |   | (155,135 | ) |
| Foreign      exchange                                 |   |                                           | (15,609     | )      |        |   | (57,251    | )      | (a)                                  |   |   | (72,860 | ) |
| Non-controlling      interest                         |   |                                           | 83,420      |   |        |   | 827,055    |   | (b)                                  |   |   | 910,475 |   |
| Net      loss for the year                            |   |                                           | (1,033,398  | )      |        |   | 769,804    |   |                                 |   |   | (263,594 | ) |
|                                                  |   |                                           |        |   |        |   |       |   |                                 |   |   |   |   |
| Deficit      Accumulated During the Development Stage |   |                                           |        |   |        |   |       |   |                                 |   |   |   |   |
|                                                  |   |                                           |        |   |        |   |       |   |                                 |   |   |   |   |
| Deficit,      beginning of the year                   |   |                                           | (10,528,003 | )      |        |   | (1,361,619 | )      |                                 |   |   | (11,889,622 | ) |
| Deficit,      end of the year                         |   |                                           | (11,561,401 | )      |        |   | (591,815   | )      |                                 |   |   | (12,153,216 | ) |
|                                                  |   |                                           |        |   |        |   |       |   |                                 |   |   |   |   |
| Loss      Per Share – Basic and Diluted         |   |                                           | (0.01       | )      |        |   | –    |   |                                 |   |   | (0.01 | ) |

| (a)   | To      adjust for foreign exchange changes and reclassify research and      development. |
|-----------------|-------------------------------------------------------------------------------------------|

| (b)   | To      adjust non-controlling interest as a result of the above      changes. |
|-----------------|--------------------------------------------------------------------------------|

----

| 14.   | SUBSEQUENT      EVENTS |
|-----------------|------------------------|

| a)   | On      August 1, 2008, the Company granted stock options, subject to regulatory      acceptance, to various consultants, employees and directors of the Company      to acquire up to 400,000 common shares at $0.40 per share exercisable for      a period of five years from the date of  granting. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On      July 30, 2008, the Company closed a non-brokered private placement of      1,315,168 common share units (the “Units”) at $0.40 per Unit, for gross      proceeds of $526,067. Each Unit consists of one common share and one      non-transferable share purchase warrant exercisable in the first year at      $0.50 per share or in the second year at $0.60 per share. The Company paid      a cash finders’ fee of $23,070. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | RECONCILIATION      OF UNITED STATES AND CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES      (“US GAAP” AND “CANADIAN GAAP”) |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)   | Development      stage company |
|----------------|--------------------------------|

| b)  | Development      costs |
|----------|------------------------|

| c) | Intangible      assets |
|----|------------------------|

| d)  | Non-controlling      interest |
|----------|-------------------------------|

| e)   | Gain      on Sale of Shares Issued bySubsidiary |
|----------------|-------------------------------------------------|

----

|         15. | RECONCILIATION OF UNITED STATES      AND CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“US GAAP” AND      “CANADIAN GAAP”)(Continued ) |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | Stock-based      compensation |
|-----------|-------------------------------|

| g)    | Income      taxes |
|-----------------|-------------------|

| h)    | Donated      Capital |
|-----------------|----------------------|

| i)   | Recent      accounting pronouncements |
|----------------|---------------------------------------|

----

| 15.   | RECONCILIATION      OF UNITED STATES AND CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES      (“US GAAP” AND “CANADIAN GAAP”) (Continued) |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i)  | Recent      accounting pronouncements(continued) |
|----------|--------------------------------------------------|

| j)    | The      net loss for the years ended April 30, 2008, 2007 and 2006 and deficit      accumulated during the development stage as determined under U.S. GAAP is      as follows: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                      |   | 2008$  |        |   | 2007$                         |   |        | 2006$                               |   |
|-------------------------------------------------------------------------------------------|--------|--------|-------------|--------|-------------------------------|--------|-------------|-------------------------------------|--------|
|                                                                                      |   |   |        |   | (Restated      –Note13) |   |        | (Restated      –Note      13) |   |
| Net      income (loss), as determined under                                               |   |   |        |   |                          |   |        |                                |   |
| Canadian      GAAP                                                                        |   |   | (480,145    | )      |                          |   | (641,453    | )                                   |   |   | (263,594 | ) |
| Gain      due to ownership of new assets resulting from subsidiary shares      issued     |   |   | (228,934    | )      |                          |   | (147,414    | )                                   |   |   | (331,949 | ) |
| Donated      services                                                                     |   |   | (153,440    | )      |                          |   | (170,700    | )                                   |   |   | (178,080 | ) |
|                                                                                      |   |   |        |   |                          |   |        |                                |   |   |   |   |
| Net      loss, as determined under U.S. GAAP                                              |   |   | (862,519    | )      |                          |   | (959,567    | )                                   |   |   | (773,623 | ) |
|                                                                                      |   |   |        |   |                          |   |        |                                |   |   |   |   |
| Deficit      accumulated during the development stage, as determined under U.S.      GAAP |   |   |        |   |                          |   |        |                                |   |   |   |   |
| -      Beginning of year                                                                  |   |   | (20,809,490 | )      |                          |   | (19,849,923 | )                                   |   |   | (19,076,300 | ) |
|                                                                                      |   |   |        |   |                          |   |        |                                |   |   |   |   |
| -      End of year                                                                        |   |   | (21,672,009 | )      |                          |   | (20,809,490 | )                                   |   |   | (19,849,923 | ) |
|                                                                                      |   |   |        |   |                          |   |        |                                |   |   |   |   |
| Loss      per share, weighted average basis (excluding escrowed    shares)                |   |   | (0.04       | )      |                          |   | (0.04       | )                                   |   |   | (0.03 | ) |
|                                                                                      |   |   |        |   |                          |   |        |                                |   |   |   |   |

----

| 15. | RECONCILIATION OF UNITED STATES      AND CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“US GAAP” AND      “CANADIAN GAAP”)(Continued ) |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k)    | Material      effects of the different generally accepted accounting principles on the      Company's balance sheet as at April 30, 2008 and 2007 are as      follows: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                  |   | 2008$  |       |   | 2007$                               |   |
|---------------------------------------------------------------------------------------|--------|--------|------------|--------|-------------------------------------|--------|
|                                                                                  |   |   |       |   | (Restated      –Note      13) |   |
|                                                                                  |   |   |       |   |                                |   |
|                                                                                  |   |   |       |   |                                |   |
| Donated      capital, as determined in Canada                                         |   |   | –    |   |                                |   | – |   |
| Donated      services                                                                 |   |   | 1,259,960  |   |                                |   | 1,106,520 |   |
| Increase      to donated capital, as determined in the U.S.                           |   |   | 1,259,960  |   |                                |   | 1,106,520 |   |
|                                                                                  |   |   |       |   |                                |   |   |   |
| Contributed      surplus, as determined in Canada                                     |   |   | 2,024,832  |   |                                |   | 849,839 |   |
| Gain      due to ownership of net assets resulting from subsidiary shares      issued |   |   | 7,137,235  |   |                                |   | 6,908,301 |   |
| Increase      to contributed surplus, as determined in the U.S.                       |   |   | 9,162,067  |   |                                |   | 7,758,140 |   |
|                                                                                  |   |   |       |   |                                |   |   |   |
| Deficit,      ending balance, as determined in Canada                                 |   |   | 13,274,814 |   |                                |   | 12,794,669 |   |
| Deficit,      as determined in the U.S.                                               |   |   | 21,672,009 |   |                                |   | 20,809,490 |   |
|                                                                                  |   |   |       |   |                                |   |   |   |
| Net      increase to deficit, as determined in the U.S.                               |   |   | 8,397,195  |   |                                |   | 8,014,821 |   |

| l)  | The      Company has reclassified gains recorded on the issuance of shares by a      subsidiary outside the consolidated group to contributed      surplus.  Prior Period information has been retroactively      revised as follows: |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                  |   | April      30, 2008  As      Previously  Reported  $ |        |   | Reclassification  $ |   |       | April      30, 2008  $ |   |
|---------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|--------|---------------------|--------|------------|------------------------|--------|
|                                                                                  |   |                                                 |        |   |                |   |       |                   |   |
| Consolidated      Balance Sheet                                                       |   |                                                 |        |   |                |   |       |                   |   |
|                                                                                  |   |                                                 |        |   |                |   |       |                   |   |
| Shareholders’      Equity                                                       |   |                                                 |        |   |                |   |       |                   |   |
| Contributed      Surplus                                                              |   |                                                 | 2,024,832   |   |                |   | 7,137,235  |                   |   |   | 9,162,067 |   |
| Deficit      Accumulated During the Development Stage, as determined in the      U.S. |   |                                                 | (14,534,774 | )      |                |   | (7,137,235 | )                      |   |   | (21,672,009 | ) |

|                                                                                  |   | April      30, 2007  As      Previously  Reported  $ |        |   | Reclassification  $ |   |       | April      30, 2007  $ |   |
|---------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|--------|---------------------|--------|------------|------------------------|--------|
|                                                                                  |   |                                                 |        |   |                |   |       |                   |   |
| Consolidated      Balance Sheet                                                       |   |                                                 |        |   |                |   |       |                   |   |
|                                                                                  |   |                                                 |        |   |                |   |       |                   |   |
| Shareholders’      Equity                                                       |   |                                                 |        |   |                |   |       |                   |   |
| Contributed      Surplus                                                              |   |                                                 | 849,839     |   |                |   | 6,908,301  |                   |   |   | 7,758,140 |   |
| Deficit      Accumulated During the Development Stage, as determined in the      U.S. |   |                                                 | (13,901,189 | )      |                |   | (6,908,301 | )                      |   |   | (20,809,490 | ) |

----

| 15. | RECONCILIATION OF UNITED STATES      AND CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“US GAAP” AND      “CANADIAN GAAP”)(Continued) |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                   |   | April      30, 2008  As      Previously  Reported  $ |        |   | Reclassification  $ |   |     | April      30, 2008  $ |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|--------|---------------------|--------|----------|------------------------|--------|
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |
| Consolidated      Statement of Operations                                              |   |                                                 |        |   |                |   |     |                   |   |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |
| Gain      on issue by subsidiary of its own shares outside the consolidated      group |   |                                                 | 228,934     |   |                |   | (228,934 | )                      |   |   | – |   |
| Net      loss for the year                                                             |   |                                                 | (633,585    | )      |                |   | (228,934 | )                      |   |   | (862,519 | ) |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Deficit      Accumulated During the Development Stage, as determined in the      U.S.  |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Deficit,      beginning of the year                                                    |   |                                                 | (20,580,556 | )      |                |   | (228,934 | )                      |   |   | (20,809,490 | ) |
| Deficit,      end of the year                                                          |   |                                                 | (21,443,075 | )      |                |   | (228,934 | )                      |   |   | (21,672,009 | ) |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Loss      Per Share – Basic and Diluted                                          |   |                                                 | (0.03       | )      |                |   | (0.01    | )                      |   |   | (0.04 | ) |

|                                                                                   |   | April      30, 2007  As      Previously  Reported  $ |        |   | Reclassification  $ |   |     | April      30, 2007  $ |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|--------|---------------------|--------|----------|------------------------|--------|
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |
| Consolidated      Statement of Operations                                              |   |                                                 |        |   |                |   |     |                   |   |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |
| Gain      on issue by subsidiary of its own shares outside the consolidated      group |   |                                                 | 147,414     |   |                |   | (147,414 | )                      |   |   | – |   |
| Net      loss for the year                                                             |   |                                                 | (812,153    | )      |                |   | (147,414 | )                      |   |   | (959,567 | ) |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Deficit      Accumulated During the Development Stage, as determined in the      U.S.  |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Deficit,      beginning of the year                                                    |   |                                                 | (19,702,509 | )      |                |   | (147,414 | )                      |   |   | (19,849,923 | ) |
| Deficit,      end of the year                                                          |   |                                                 | (20,662,076 | )      |                |   | (147,414 | )                      |   |   | (20,809,490 | ) |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Loss      Per Share – Basic and Diluted                                          |   |                                                 | (0.03       | )      |                |   | (0.01    | )                      |   |   | (0.04 | ) |

|                                                                                   |   | April      30, 2006  As      Previously  Reported  $ |        |   | Reclassification  $ |   |     | April      30, 2006  $ |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------------------------|-------------|--------|---------------------|--------|----------|------------------------|--------|
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |
| Consolidated      Statement of Operations                                              |   |                                                 |        |   |                |   |     |                   |   |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |
| Gain      on issue by subsidiary of its own shares outside the consolidated      group |   |                                                 | 331,949     |   |                |   | (331,949 | )                      |   |   | – |   |
| Net      loss for the year                                                             |   |                                                 | (441,674    | )      |                |   | (331,949 | )                      |   |   | (773,623 | ) |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Deficit      Accumulated During the Development Stage, as determined in the      U.S.  |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Deficit,      beginning of the year                                                    |   |                                                 | (18,744,351 | )      |                |   | (331,949 | )                      |   |   | (19,076,300 | ) |
| Deficit,      end of the year                                                          |   |                                                 | (19,517,974 | )      |                |   | (331,949 | )                      |   |   | (19,849,923 | ) |
|                                                                                   |   |                                                 |        |   |                |   |     |                   |   |   |   |   |
| Loss      Per Share – Basic and Diluted                                          |   |                                                 | (0.02       | )      |                |   | (0.01    | )                      |   |   | (0.03 | ) |

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SIGNATURE PAGE

|   | The      Registrant hereby certifies that it meets all of the requirements for      filing on Form 20-F/A and that it has duly caused and authorized the      undersigned to sign this annual report on its  behalf. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | REG TECHNOLOGIES      INC. |
|--------|----------------------------|

|   | REGISTRANT |
|--------|------------|

| Dated: | March 24,      2009 | By: | /s/  John G.      Robertson |   |
|--------|---------------------|-----|---------------------------------------|--------|

|   | John      G. Robertson |
|--------|------------------------|

|   | President/Secretary/Director |
|--------|------------------------------|

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