UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

                                   (Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2006

[_] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

             FOR THE TRANSITION PERIOD FROM __________ TO __________
             COMMISSION FILE NUMBER ________________________________



                          NEW WORLD ENTERTAINMENT CORP.
                          -----------------------------
                 (Name of small business issuer in its charter)

               NEVADA                                     98-0448154
              ------                                     ----------
  (State or other jurisdiction of                      (I.R.S. Employer
   incorporation or organization)                      Identification No.)


                    7251 West Lake Mead Boulevard, Suite 300
                             Las Vegas, Nevada 89128
                    (Address of principal executive offices)

                    Issuer's telephone Number: (888) 628-1949

                                 WITH COPIES TO:

                            Richard A. Friedman, Esq.
                       Sichenzia Ross Friedman Ference LLP
                           1065 Avenue of the Americas
                            New York, New York 10018
                                 (212) 930-9700
                               Fax: (212) 930-9725

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days.

                               Yes [X] No [ ]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court:

                               Yes [ ] No [ ]

Indicate by check whether the  registrant is a shell company (as defined in rule
12b of the Exchange Act).

                               Yes [ ] No [X]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity,  as of the latest  practicable  date: As of May 12, 2006, the issuer had
71,400,000 outstanding shares of Common Stock.

Transitional Small Business Disclosure Format (check one): Yes [_] No [X]

<PAGE>
                                TABLE OF CONTENTS



                                                                           Page
                      PART I - FINANCIAL INFORMATION

Item 1.    Financial Statements
                   Balance Sheets......................................      4
                   Statement of Operations.............................      5
                   Statement of Stockholder's Equity (Deficit).........      6
                   Statements of Cash Flows............................      7

                   Notes to Consolidated Financial Statements..........   8-11

Item 2.    Management's Discussion and Analysis or Plan of Operation...     12

Item 3.    Controls and Procedures.....................................     15

                        PART II - OTHER INFORMATION

Item 1.    Legal Proceedings...........................................     15

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.     16

Item 3.    Defaults Upon Senior Securities.............................     16

Item 4.    Submission of Matters to a Vote of Security Holders.........     16

Item 5.    Other Information...........................................     16

Item 6.    Exhibits ...................................................     17

SIGNATURES.............................................................     17


                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (Formerly KATIE GOLD CORP.)

                              FINANCIAL STATEMENTS

               FOR THE THREE MONTHS ENDED MARCH 31, 2006 and 2005

                                   (UNAUDITED)



                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (Formerly KATIE GOLD CORP.)

                          NOTES TO FINANCIAL STATEMENTS

                                 MARCH 31, 2006
<TABLE>
<CAPTION>

                                                                                                 Page Number

<S>                                                                                                  <C>
Financial Statements

Balance sheet at March 31, 2006 (Unaudited) and December 31, 2005 (Audited)                           4

Statement of operations for the three months ended March 31, 2006 and 2005 (Unaudited)                5

Statement of stockholders' equity for the three months ended
   March 31, 2006 and 2005 (Unaudited)                                                                6

Statement of cash flows for the three months ended March 31, 2006 and 2005                             7

Notes to financial statements                                                                       8 - 11
</TABLE>

                                       3
<PAGE>
                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (FORMERLY KATIE GOLD CORP.)
                                  BALANCE SHEET
                             (Stated in US Dollars)
<TABLE>
<CAPTION>


                                                                       March 31                  December 31
                                                                 ----------------------    ------------------------
                                                                         2006                       2005
                                                                 ----------------------    ------------------------
                                                                      (Unaudited)
<S>                                                                     <C>                               <C>
ASSETS
CURRENT
Cash                                                             $               13,761    $                 48,381
Interest receivable and prepaid expenses                                            225                         331
                                                                 ----------------------    ------------------------
                                                                                 13,986                      48,712
                                                                 ----------------------    ------------------------

                                                                 $               13,986    $                 48,712
                                                                 ======================    ========================


 LIABILITIES

CURRENT
Accounts payable and  accrued liabilities                        $               15,672    $                 22,318
                                                                 ----------------------    ------------------------

                                                                                 15,672                      22,318
                                                                 ======================    ========================

STOCKHOLDERS' EQUITY (DEFICIENCY)

Common Stock: $0.001 par value
75,000,000 shares authorized: 71,400,000
shares issued and outstanding ( 71,400,000 in 2005)                              71,400                      71,400
Additional paid-in capital                                                        5,100                       5,100
(Deficit)                                                                       (78,186)                    (50,106)
                                                                 ----------------------    ------------------------
                                                                                 (1,686)                     26,394
                                                                 ----------------------    ------------------------

                                                                 $               13,986    $                 48,712
                                                                 ======================    ========================

   The accompanying notes are an integral part of these financial statements.

</TABLE>
                                       4
<PAGE>
                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (FORMERLY KATIE GOLD CORP.)
                             STATEMENT OF OPERATIONS
                             (Stated in US Dollars)

<TABLE>
<CAPTION>
<S>                                                                     <C>            <C>                   <C>

                                                                                                            From Inception
                                                           For the Three Months Ended March 31             (Janury 26, 2005)
                                                   -------------------------  ------------------------            to
                                                             2006                      2005                 March 31, 2006
                                                   -------------------------  ------------------------  ------------------------
                                                         (Unaudited)                  (Unaudited)
                                                   -------------------------  ------------------------  ------------------------
REVENUE                                            $                     131  $                      -  $                    131
                                                   -------------------------  ------------------------  ------------------------

EXPENSES
Filing fees                                                            1,600                       100                     2,306
Meals and entertainment                                                5,236                                               5,236
Mineral property option payments                                           0                         0                     5,000
Mineral property expenditures                                          9,240                         0                    29,365
Office and sundry, net of interest income                              1,448                         0                     1,549
Professional fees                                                     10,025                     5,500                    33,025
Transfer agent                                                           662                       140                     1,836
                                                   -------------------------  ------------------------  ------------------------
Total expenses                                                        28,211                     5,740                    78,317
                                                   -------------------------  ------------------------  ------------------------

Net Loss for the period                            $                 (28,080) $                 (5,740) $                (78,186)
                                                   =========================  ========================  ========================

Basic and diluted (loss) per common share          $                  (0.000) $                 (0.000) $                 (0.001)
                                                   -------------------------  ------------------------  ------------------------
Weighted average number
 of common shares outstanding                                     71,400,000                64,466,666                65,853,333
                                                   -------------------------  ------------------------  ------------------------
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>
                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (FORMERLY KATIE GOLD CORP.)
                  STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT).
               From Inception (January 26, 2005) to March 31, 2006
                             (Stated in US Dollars)

<TABLE>
<CAPTION>
                                                         Common Stock               Additional   Accumulated       Total
                                                  Shares               Amount       Paid-in       Deficit         Equity
                                                                                    Capital                      (Deficit)
                                                                          $             $             $
                                          ---------------------------------------------------------------------------------
<S>                                                  <C>                     <C>       <C>             <C>            <C>
Opening balance, January 26, 2005                          -                -             -             -               -

Common shares issued for cash at
$0.00005 per share February 9, 2005               30,000,000           30,000       (28,500)            -         $ 1,500

Common shares issued for cash at
$0.0005 per share February 17, 2005               30,000,000           30,000       (15,000)            -          15,000

Common shares issued for cash at
$0.005 per share, March 7, 2005                   11,000,000           11,000        44,000             -          55,000

Common shares issued for cash at
$0.0125 per share, April 8 2005                      400,000              400         4,600             -           5,000

Net (Loss) for the period                                  -                -             -       (50,106)        (50,106)
                                          ---------------------------------------------------------------------------------
Balance, December 31, 2005                        71,400,000           71,400         5,100       (50,106)         26,394

Net (Loss) for the period                                  -                -             -       (28,080)        (28,080)
                                          ---------------------------------------------------------------------------------
Balance, March 31, 2006                           71,400,000         $ 71,400       $ 5,100     $ (78,186)       $ (1,686)
                                          =================================================================================
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                       6
<PAGE>
                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (FORMERLY KATIE GOLD CORP.)
                             STATEMENT OF CASH FLOWS
                             (Stated in US Dollars)
<TABLE>
<CAPTION>
<S>                                                                   <C>                    <C>                       <C>
                                                                                                            From Inception
                                                               For the Three Months Ended March 31        (Janury 26, 2005)
                                                             -----------------------------------------           to
                                                                    2006                 2005                March 31, 2006
                                                             -------------------  --------------------  -------------------------
                                                                (Unaudited)          (Unaudited)
CASH (USED IN) OPERATING ACTIVITIES

Net loss for the period                                               $ (28,080)             $ (5,740)                 $ (78,186)
Changes in non-cash operating working capital items:
Interest receivable and prepaid expenses                                    106                     0                       (225)
Account payable and accrued liabilities                                  (6,646)                    0                     15,672
                                                             -------------------  --------------------  -------------------------
Net cash  (used in) operating activities                                (34,620)               (5,740)                   (62,739)
                                                             -------------------  --------------------  -------------------------

CASH PROVIDED BY FINANCING ACTIVITIES
Share capital issued                                                          0                71,300                     76,500
                                                             -------------------  --------------------  -------------------------
Net cash provided by  financing activities                                    0                71,300                     76,500
                                                             -------------------  --------------------  -------------------------

CASH AT BEGINNING OF PERIOD                                              48,381                     0                          0
CASH AT END OF PERIOD                                                  $ 13,761              $ 65,560                   $ 13,761
                                                             -------------------  --------------------  -------------------------
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                       7
<PAGE>
                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (Formerly KATIE GOLD CORP.)
                        NOTES TO THE FINANCIAL STATEMENTS
                             (Stated in US Dollars)
                                 MARCH 31, 2006

1. NATURE OF OPERATIONS

a) Organization

The  Company was  incorporated  under the laws of the State of Nevada on January
26, 2005 as Katie Gold Corp. and it was primarily engaged in the acquisition and
exploration of mining properties until April 2006. The Company's fiscal year end
is December 31.

On March 21, 2006, a  Certificate  of Amendment  was filed with the Secretary of
State in Nevada to change the name of the  Company  from  Katie  Gold  Corp.  to
Morningstar  Industrial  Holdings  Corp.  At this time,  the  Company  was still
engaged in the acquisition and exploration of mining properties.

On April 26, 2006,  the Company  filed  Articles of Merger with the Secretary of
State in Nevada to merge with New World  Entertainment  Corp., a private company
incorporated  in Nevada.  As a result of the  merger,  the  Company  changed its
business and its name from  Morningstar  Industrial  Holdings Corp. to New World
Entertainment Corp.

b)   Change of Business

On April 26, 2006,  the Company  filed  Articles of Merger with the Secretary of
State in Nevada to change its name from Morningstar Industrial Holdings Corp. to
New World Entertainment Corp. and underwent a change in management and direction
and is currently  involved in the  acquisition  and  licensing of online  gaming
technologies.

On May 12,  2006  the  Company  entered  into a share  exchange  agreement  with
Liverpoole  Inc.,  a  privately-owned  corporation  organized  under the laws of
Antigua,  for the  acquisition  of all of the issued and  outstanding  shares of
Liverpoole  in exchange  for  25,000,000  shares of the Company.  In  connection
therewith,  in order to secure  the  right to enter  into  such  agreement  with
Liverpoole,  the Company  entered  into an agreement  with World Mobile  Network
Corp., a publicly-held corporation, pursuant to which World Mobile Network Corp.
agreed to assign its  exclusive  right to acquire  Liverpoole  to the Company in
exchange for 20,000,000 shares of the Company.

c)   Going Concern

The accompanying  financial  statements have been prepared  assuming the Company
will  continue  as a going  concern.  The  Company's  financial  statements  are
prepared using generally accepted  accounting  principles  applicable to a going
concern  which  contemplates  the  realization  of  assets  and  liquidation  of
liabilities in the normal course of business.

As shown in the accompanying  financial  statements,  the Company has incurred a
net loss of $78,186 for the period from  January 26, 2005  (inception)  to March
31, 2006 and has revenues for $131.  The future of the Company is dependent upon
its ability to obtain financing and upon future  profitable  operations from the
development of  acquisitions.  Management has plans to seek  additional  capital
through a private  placement  and  public  offering  of its  common  stock.  The
financial   statements   do  not  include  any   adjustments   relating  to  the
recoverability  and  classification  of recorded  assets,  or the amounts of and
classification  of liabilities  that might be necessary in the event the Company
cannot  continue in  existence.  The  accompanying  financial  statements do not
include  any  adjustments  that might be  necessary  if the Company is unable to
continue as a going concern.

d)   Mineral Property Interests

The Company  entered into an option  agreement on February 22, 2005 to acquire a
100% interest in six mineral claims covering 150 hectares  located in the Nicola
Mining  District in British  Columbia,  Canada.  The option  agreement NEW WORLD
ENTERTAINMENT CORP.  (Formerly  Morningstar  Industrial Holdings Corp.) NOTES TO
THE FINANCIAL STATEMENTS (Stated in US Dollars) MARCH 31, 2006 (Continued)


allowed for additional  staking of claim property within a 2 kilometer radius of
the initial six claims. In June 2005, the Company undertook  additional  staking
and upon  registration  of the initial  claims and the new claims were converted
into two claim blocks totaling 459 hectares.

In order to earn its interests,  the Company made cash payments  totaling $5,000
on signing and must incur exploration expenditures totaling $200,000.

As the business of the Company has changed,  current  management  of the Company
has elected to not incur the additional  exploration  expenditures due under the
option  agreement.  Unless these  payments  are made,  the Company will lose its
interests  under  the  option  agreement  when the  final  payment  comes due on
February 22, 2007.  The Company does not intend to complete  this payment at the
present time.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a.   Accounting Method

The Company's  financial  statements  are prepared  using the accrual  method of
accounting. The Company has elected a December 31 year-end.

b.   Revenue Recognition

The Company  recognizes  revenue  when  persuasive  evidence  of an  arrangement
exists,  goods  delivered,  the  contract  price is fixed or  determinable,  and
collectibility is reasonably assured.

c.   Income Taxes

The  Company  prepares  its tax returns on the  accrual  basis.  The Company has
elected to file its taxes as a Limited  Liability  Company,  whereby its profits
and losses are passed through to its members.  Accordingly, the Company does not
pay or accrue income taxes.  Also,  the Company does not record an asset for the
value of its net operating loss carry forwards.

d.   Use of Estimates

The  preparation  of the  financial  statements  in  conformity  with  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. Actual results could differ from those estimates.

e.   Interest Receivable and Prepaid Expenses

Interest  receivable  and  prepaid  expenses  consists  of  advances  for future
services and include the amount of $225 as of March 31, 2006.

f.   Basic and Diluted (Loss) Per Share

In accordance with SFAS No.  128-"Earnings Per Share", the basic loss per common
share is computed by dividing net loss available to common  stockholders  by the
weighted  average number of common shares  outstanding.  Diluted loss per common
share is  computed  similar  to basic  loss per  common  share  except  that the
denominator is increased to

                                       8
<PAGE>
                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (Formerly KATIE GOLD CORP.)
                        NOTES TO THE FINANCIAL STATEMENTS
                             (Stated in US Dollars)
                           MARCH 31, 2006 (Continued)

include the number of additional  common shares that would have been outstanding
if the  potential  common  shares had been issued and if the  additional  common
shares were dilutive.  At March 31, 2006,  the Company has no stock  equivalents
that were anti-dilutive and excluded in the earnings per share computation.

g.   Cash

For purposes of the  statement of cash flows,  the company  considers  all funds
held in its bank accounts and funds held in trust by third parties as Cash.

h.   Current Liabilities

The Company's  current  liabilities  account is composed of accounts payable and
accrued liabilities and total $15,672 as at March 31, 2006.

i.   Unaudited Financial Statements

The accompanying  financial statements have been prepared by the Company without
audit. In the opinion of management,  all adjustments (which include only normal
recurring  adjustments)  necessary  to present  fairly the  financial  position,
results  of  operations  and cash  flows at March 31,  2006 and for all  periods
presented have been made.

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with accounting  principles generally accepted
in the United States of America have been condensed or omitted.  It is suggested
that  these  condensed  financial  statements  be read in  conjunction  with the
financial  statements and notes thereto  included in the Company's  December 31,
2005 audited  financial  statements.  The results of operations  for the periods
ended March 31, 2006 and 2005 are not  necessarily  indicative  of the operating
results for the full years.

3. SHARE CAPITAL

a)   Authorized:

75,000,000 common shares with a par value of $0.001

b)   Issued:

As of March  31,  2006 the  number  of  issued  outstanding  common  shares  was
71,400,000.

The Company has no stock option plan, warrants or other dilutive securities.

On March 10, 2006  shareholders  of the company  adopted a  resolution  that the
Company's common shares be forward split on a 20 shares to 1 share basis.  Share
disclosure has been retroactively restated accordingly.

4. SUBSEQUENT EVENTS

a)   Share Exchange Agreement with Liverpoole Inc.

On May 12,  2006  the  Company  entered  into a share  exchange  agreement  with
Liverpoole  Inc.,  a  privately-owned  corporation  organized  under the laws of
Antigua,  for the  acquisition  of all of the issued and  outstanding  shares of
Liverpoole  in exchange  for  25,000,000  shares of the Company.  In  connection
therewith, in order to secure the right to

                                       9
<PAGE>
                      MORNINGSTAR INDUSTRIAL HOLDINGS CORP.
                           (Formerly KATIE GOLD CORP.)
                        NOTES TO THE FINANCIAL STATEMENTS
                             (Stated in US Dollars)
                           MARCH 31, 2006 (Continued)
enter into such agreement with Liverpoole, the Company entered into an agreement
with World Mobile Network Corp., a publicly-held corporation, pursuant to which
World Mobile Network Corp. agreed to assign its exclusive right to acquire
Liverpoole to the Company in exchange for 20,000,000 shares of the Company.

b)   Loan Agreement

On May 3, 2006,  the Company  entered into a $3,250,000  secured Loan  Agreement
(the  "Loan  Agreement")  with 555  Holdings  LLC,  a Nevada  limited  liability
company,  and Global  Developments  Inc.,  a Nevada  company  (collectively  the
"Lenders"),  pursuant to which Loan Agreement the Company  issued  $3,250,000 in
aggregate principal amount of promissory notes (collectively the "Notes") to the
Lenders.  In  lieu  of  the  interest  on  the  Notes,  the  Company  agreed  to
simultaneously  with the  issuance  of the  Notes to issue  three  and one third
shares of common  stock,  $0.001 par value per share (the  "Common  Stock"),  of
restricted  stock  of the  Company  for  every  dollar  loaned  by the  Lenders,
amounting to 10,833,333  shares of Common Stock (the "Shares").  The issuance of
the Note was exempt from registration requirements of the Securities Act of 1933
(the  "Securities  Act") pursuant to Section 4(2) of such  Securities Act and/or
Regulation  D  promulgated  thereunder  based  upon the  representations  of the
Investor  that it is an  "accredited  investor"  (as  defined  under Rule 501 of
Regulation D) and that it was purchasing such securities  without a present view
toward a  distribution  of the  securities.  In  addition,  there was no general
advertisement conducted in connection with the sale of the securities.

                                       10
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation

Forward-Looking Statements

You should read the following  discussion and analysis in  conjunction  with the
Financial  Statements and related Notes contained  elsewhere in this Form 10-QSB
("Report").  The information in this Report is not a complete description of our
business or the risks associated with an investment in our common stock. We urge
you to carefully review and consider the various  disclosures made by us in this
Report and in our other reports filed with the SEC,  including our Annual Report
on Form 10-KSB for the year ended December 31, 2005.

The section  entitled "Risk Factors" set forth in our Annual Report on Form 10-K
for the year ended  December 31, 2005 and similar types of  discussions in other
SEC filings  discuss some of the  important  risks that may affect our business,
results  of  operations  and  financial  condition.  Some of those  risks are as
follows:

*Our  business  depends on our ability to obtain  additional  financing,  or our
business will fail.

*Our stock price can be extremely volatile.

You should carefully  consider those risks, in addition to the other information
in this Report and in our other filings with the SEC,  before deciding to invest
in our Company or to maintain or decrease your investment.

This  Report may  contain  forward-looking  @  statements  within the meaning of
Section 17A of the Securities Exchange Act of 1933, as amended,  and Section 21E
of  the  Securities  Exchange  Act,  as  amended.  Examples  of  forward-looking
statements  include,  but are not limited to: (a)  projections  of our revenues,
capital expenditures,  growth, prospects, dividends, capital structure and other
financial matters; (b) statements of our plans and objectives; (c) statements of
our future economic performance;  (d) statements of assumptions underlying other
statements and statements about us and our business relating to the future;  and
(e) any  statements  using the words  "believes,"  "budget,"  "target,"  "goal,"
anticipate,"  expect," "plan," "outlook,"  "objective," may," project," intend,"
"estimate," or similar expressions. These statements are only predictions. These
statements are not guarantees of future  performance  and are subject to certain
risks, uncertainties and assumptions that are difficult to predict.

We believe it is important to communicate our expectations.  However,  there may
be events in the future that we are not able to accurately predict or over which
we have no control.  Our actual  results and the timing of certain  events could
differ materially from those anticipated in these forward-looking  statements as
a result of certain factors.

Background

We have commenced  operations as an exploration stage company. We are engaged in
the acquisition, and exploration of mineral properties with a view to exploiting
any mineral deposits we discover that demonstrate  economic  feasibility.  As of
December 31, 2005,  we have entered  into a mineral  property  option  agreement
whereby  we may  acquire  a 100%  interest  in a total  of six  mineral  claims,
covering  150  hectares  near  Missezula  Lake and located in the Nicola  Mining
District,  Province of British Columbia,  Canada,  know as the Conglin Property.
Subsequent to entering into the option we staked additional property surrounding
the original claims and they were registered,  with the original claims,  as two
claims totaling 459 hectares.  There is no assurance that a commercially  viable
mineral  deposit exists on the property.  Further  exploration  will be required
before  a  final  evaluation  as  to  the  economic  and  legal  feasibility  is
determined.  We do not have any current plans to acquire interests in additional
mineral properties, though we may consider such acquisitions in the future.

                                       11
<PAGE>
Use of Estimates

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations are based upon our financial statements,  which have been prepared in
accordance with generally accepted  accounting  principles in the United States.
When  preparing our financial  statements,  we make estimates and judgments that
affect the reported amounts on our balance sheets and income statements, and our
related  disclosure  about  contingent  assets and  liabilities.  We continually
evaluate  our  estimates,  including  those  related to revenue,  allowance  for
doubtful  accounts,  reserves  for income  taxes,  and  litigation.  We base our
estimates on historical  experience and on various other  assumptions,  which we
believe to be reasonable in order to form the basis for making  judgments  about
the carrying values of assets and liabilities  that are not readily  ascertained
from  other  sources.  Actual  results  may  deviate  from  these  estimates  if
alternative assumptions or conditions are used.

THREE MONTHS  ENDED MARCH 31, 2006  COMPARED TO THE THREE MONTHS ENDED MARCH 31,
2005

We have not earned any significant  revenues from the date of our  incorporation
on January 26, 2005 to March 31, 2006.  We do not  anticipate  earning  revenues
unless we enter into  commercial  production on the Conglin  Property,  which is
doubtful,  or undergo  reorganization  by the  process of  acquisition  of a new
business line. We have not commenced the  exploration  stage of our business and
can provide no assurance that we will discover  economic  mineralization  on the
property, or if such minerals are discovered, that we will enter into commercial
production.

Revenues for the three months ended March 31, 2006 were $131  compared to $0 for
the three months ended March 31,  2005, a nominal  increase of $131 or 100%.  We
have not earned any significant  revenues from our  incorporation on January 26,
2005 to March 31, 2006.

Our  principal  expenses  during the three  months ended March 31, 2006 and 2005
were mineral property  expenditures and professional fees. Our professional fees
included legal, accounting and public relations. The increased level of expenses
being incurred by the Company arises out of its efforts to commercially  exploit
its mineral  properties.  Some of the specifics  include increased effort by the
Company in its attempts of  exploiting  any mineral  deposits  that it discovers
that demonstrate economic feasibility.

As we did not earn any material  revenues for three months ended March 31, 2006,
our cost of revenues for three months ended March 31, 2006 was 0.

We did not incur any  research  and  development  expenses  for the three months
ended March 31, 2006.

Mineral  property  expenditures  for the three  months ended March 31, 2006 were
$9,240  compared to $0 for the three months ended March 31, 2005, an increase of
$9,240 or 100%.  The net increase was due  primarily to increases in our efforts
to commercially exploit our mineral property options.

Selling,  general and  administrative  expenses for the three months ended March
31, 2006 were  $18,971  compared to $5,740 for the three  months ended March 31,
2005,  an increase of $13,231 or 230.05%.  The net increase was due primarily to
increases  in our filing,  transfer  agent,  meal and  entertainment,  legal and
accounting, consulting costs and overhead.

Total expenses for the three months ended March 31, 2006 was $28,211 as compared
to $5,740 for the three months ended March 31, 2005, representing an increase in
total  expenses of $22,471 or 391.48%.  The  increase was  primarily  due to the
increase in mineral property expenditures undertaken by us.

Our net loss for the three months ended March 31, 2006 was $28,080 compared to a
net loss of $5,740  for three  months  ended  March 31,  2005,  an  increase  of
$22,340, or 389.19%.  The net loss increase was primarily due to the increase in
mineral property expenditures undertaken by us and increase in selling,  general
and administrative expenses.

Liquidity and Capital Resources

Our total current assets as of March 31, 2006 were $13,986, including $13,761 in
cash as compared with $48,712 in total  current  assets as of December 31, 2005,
which included cash of $48,381.  Additionally,  we had a shareholders deficiency
in the amount of $1,686 as of March 31, 2006 as compared to shareholders' equity
of $26,394 as of December 31, 2005. The shareholders' deficit is a result of the
Company's  lack of sales of  common  stock  and  financing  activities.  We have
historically  incurred  losses and have financed our  operations  through loans,
principally from affiliated parties such as our directors, and from the proceeds
of the corporation selling shares of our common stock privately.

                                       12
<PAGE>
The number of common shares  outstanding  increased from 3,570,000  shares as of
December 31, 2005 to 71,400,000 as of March 31, 2005, an increase of 1900%. This
increase  was  primarily  a result  of a  20-for-1  forward  stock  split of the
Company's common stock which was effective as of March 20, 2006.

We had $34,620 of negative cashflow (cash outflow) from operating activities for
the three  months ended on March 31,  2006,  compared to a negative  cashflow of
$5,740 for the three months ended March 31, 2005, an increase in cash outflow of
approximately 503.14%.

We had no cashflow from financing  activities  during the first quarter of 2006,
as compared to a cashflow of $71,300 for the three  months ended March 31, 2005,
a decrease in cashflow of 100%.

We had no cashflow from investing activities for the three months ended on March
31, 2006, and we did not have any cashflow from investing  activities during the
first quarter of 2005.

We have not attained profitable operations and will require additional financing
to sustain our business  operations if we are not successful in earning revenues
once  exploration  is complete.  We do not currently have any  arrangements  for
financing and may not be able to find such  financing if required.  There can be
no assurance that we will be able to secure any arrangement for financing in the
current  fiscal  year.  For these  reasons our  auditors  believe  that there is
substantial doubt that we will be able to continue as a going concern.

Off-Balance Sheet Arrangements

We do not have any off balance sheet  arrangements that are reasonably likely to
have a current or future effect on our financial condition, revenues, results of
operations, liquidity or capital expenditures.

Going Concern

We are assuming that we will continue as a going concern, which contemplates the
realization of assets and the  satisfaction  of liabilities in the normal course
of business.  We have incurred net operating losses of approximately $28,080 for
the three  months  ended March 31,  2006,  compared  to $5,740 of net  operating
losses  for the three  months  ended  March 31,  2005.  At March 31,  2006,  the
Company's working capital  deficiency was $1,686 and approximately  98.4% of our
assets consist of cash. Additionally, for the three months ended March 31, 2006,
we had negative cash flows from operating  activities of approximately  $34,620.
Since our inception,  we have incurred losses, had an accumulated  deficit,  and
have  experienced  negative cash flows from  operations.  The development of our
business may require additional capital. This condition raises substantial doubt
about our ability to continue as a going concern. The accompanying  consolidated
financial  statements  do not include any  adjustments  that might be  necessary
should we be unable  to  continue  as a going  concern.  If we fail to  generate
positive cash flows or obtain additional financing when required, we may have to
modify, delay or abandon some or all of our business and expansion plans.

Critical Accounting Policies

Statement of Financial Accounting Standards No. 109

Income taxes are recognized in accordance with Statement of Financial Accounting
Standards No. 109 ("SFAS 109"),  "Accounting for Income Taxes", whereby deferred
income tax liabilities or assets at the end of each period are determined  using
the tax rate  expected  to be in  effect  when the taxes  are  actually  paid or
recovered. A valuation allowance is recognized on deferred tax assets when it is
more likely than not that some or all of these  deferred  tax assets will not be
realized.

Statement of Financial Accounting Standards No. 130

The Company has adopted  Statement of  Financial  Accounting  Standards  No. 130
("SFAS 130"), "Reporting  Comprehensive Income", which establishes standards for
reporting and display of  comprehensive  income,  its components and accumulated
balances.  When  applicable,  the Company would disclose this information on its
Statement of Stockholders' Equity.  Comprehensive income comprises equity except
those  resulting  from  investment by owners and  distributions  to owners.  The
Company  has  not had any  significant  transactions  that  are  required  to be
reported in other comprehensive income.

                                       13
<PAGE>
Statement of Financial Accounting Standards No. 142

The Company has adopted  Statement of  Financial  Accounting  Standards  No. 142
("SFAS  142"),  "Goodwill  and Other  Intangible  Assets",  which  requires that
goodwill not be  amortized,  but that  goodwill and other  intangible  assets be
tested  annually  for  impairment.  The  Company's  operational  policy  for the
assessment  and  measurement  of any  impairment  in the value of  goodwill  and
intangible assets, which primarily relates to contract-based intangibles such as
license agreements and extensions,  is to evaluate annually,  the recoverability
and remaining life of its intangible assets to determine the fair value of these
assets.  The  methodologies to be used to estimate fair value include the use of
estimates  and  assumptions,  including  projected  revenues,  earnings and cash
flows.  If the fair value of any of these assets is  determined  to be less than
its carrying  value,  the Company will reflect the  impairment of any such asset
over its appraised value.

Statement of Financial Accounting Standards No. 144

In accordance  with Statement of Financial  Accounting  Standards No. 144 ("SFAS
144"),  "Accounting  for the Impairment or Disposal of Long-Lived  Assets",  the
Company records  impairment  losses on long-lived assets used in operations when
indicators of impairment are present and the  undiscounted  cash flows estimated
to be generated by those assets are less than the assets'  carrying  amount.  In
such cases,  the amount of the  impairment is  determined  based on the relative
fair values of the impaired assets.

Foreign Currency Translation

The Company's  functional  currency is the U.S. dollar.  Transactions in foreign
currency are  translated  into U.S.  dollars as follows:  monetary  items at the
exchange rate  prevailing at the balance sheet date;  non-monetary  items at the
historical exchange rate; revenue and expense items at the average exchange rate
in effect  during the  applicable  accounting  period.  Translation  adjustments
resulting from this process are recorded in Stockholders'  Equity as a component
of Accumulated Other  Comprehensive  Income (Loss).  Translation gains or losses
that arise from exchange rate  fluctuations  in  transactions  denominated  in a
currency other than the local functional  currency are recorded in the Statement
of Operations.

Revenue Recognition

The  Company  recognizes  revenue in  accordance  with the  criteria  outline in
Securities  Exchange  Commission Staff Accounting  Bulletin No. 104 ("SAP 104"),
"Revenue  Recognition".  Revenues  will be  recognized  once  they  are  earned;
specifically  when:  (a)  services  are  provided or products  are  delivered to
customers,  (b) clear proof that an arrangement exists, (c) amounts are fixed or
can be  determined,  and (d) the  Company's  ability to  collect  is  reasonably
assured.

Stock-based Compensation

The Company accounts for employee  stock-based  compensation using the intrinsic
value method  prescribed in Accounting  Principles  Board Opinion ("APB") No. 25
("APB"),   "Accounting   for   Stock   Issued   to   Employees",   and   related
interpretations. Accordingly, compensation cost for stock options is measured as
the excess,  if any, of the fair value of the Company's common stock at the date
of the grant over the amount an employee  must pay to acquire the common  stock.
Non-employee  stock-based  compensation  is  accounted  for using the fair value
method in accordance  with  Statement of Financial  Accounting  Standard No. 123
("SFAS 123"), "Accounting for Stock-based Compensation".

                                       14
<PAGE>
Recent Accounting Pronouncements

In December 2004,  Financial Accounting Standard Board ("FASB") issued Statement
of  Financial   Accounting   Standards  No.  153  ("SFAS  153"),   "Exchange  of
Non-monetary  Assets - an  amendment  of APB  Opinion No.  29".  This  Statement
amended APB Opinion 29 to eliminate the exception of  non-monetary  exchanges of
similar productive assets and replaces it with a general exception for exchanges
on  non-monetary  assets that do not have commercial  substance.  A non-monetary
exchange  has  commercial  substance  if the future cash flows of the entity are
expected to change  significantly  as a result of the exchange.  The Company has
determined  that the adoption of SFAS 153 does not have an impact on its results
of operations or financial position.

In December 2004, FASB issued  Statement of Financial  Accounting  Standards No.
123 (revised  2004) ("SFAS 123 (revised  2004)"),  "Share-Based  Payment".  This
Statement requires that the cost resulting from all share-based  transactions be
recorded in the financial  statements.  The Statement  establishes fair value as
the measurement objective in accounting for share-based payment arrangements and
requires all entities to apply  fair-value-based  measurement  in accounting for
share-based payment transactions with employees.  The Statement also establishes
fair value as the  measurement  objective  for  transactions  in which an entity
acquires  goods  or  services  from   non-employees   in   share-based   payment
transactions.  The Statement  replaces FASB  Statement No. 123  "Accounting  for
Stock-Based  Compensation"  and supercedes  APB Opinion no. 25  "Accounting  for
Stock Issued to  Employees".  The provisions of this Statement will be effective
for the Company  beginning  with its fiscal year  ending  2007.  The Company has
determined  that the adoption of SFAS 123 (revised 2004) does not have an impact
on its results of operations or financial position.  In March 2005, the Emerging
Issue Task Force issued EITF Issue 04-6 ("EITF  Issue  04-6"),  "Accounting  for
Stripping Costs in the Mining Industry,  stating that post-production  stripping
costs are a component of mineral  inventory  costs subject to the  provisions of
the American  Institute  of Certified  Public  Accountants  Accounting  Research
Bulletin  No.43,  "Restatement  and Revision of Accounting  Research  Bulletins,
Chapter 4 ("ARB No.43"),  "Inventory Pricing".  Based upon this Statement,  post
production  stripping  costs are  considered as costs of the extracted  minerals
under a full  absorption  costing  system and are  recognized  as a component of
inventory to be  recognized  in costs of sales in the same period as the revenue
from the sale of the inventory. In addition,  capitalization of such costs would
be  appropriate  only to the extent  inventory  exists at the end of a reporting
period. The provisions will be effective for financial statements issued for the
first  reporting  period in fiscal years beginning after December 15, 2005, with
early adoption  permitted.  The Company has determined that the adoption of EITF
Issue 04-6 does not have an impact on its  results of  operations  or  financial
position  since the  Company is still in the  exploration  stage and has not yet
realized any revenues from its operations.

The  FASB  issued  FASB  Interpretation  No.  47  ("FIN  47"),  "Accounting  for
Conditional  Asset Retirement  Obligations" in March 2005. FIN 47 clarifies that
an entity must record a liability for a conditional asset retirement  obligation
if  the  fair  value  of  the  obligation  can  be  reasonably  estimated.  This
Interpretation also clarifies the circumstances under which an entity would have
sufficient  information  to  reasonably  estimate  the  fair  value  of an asset
retirement obligation. This Interpretation is effective no later than the end of
fiscal years ending  after  December 15, 2005.  The Company does not expect this
guidance to have a material impact on its financial statements.

In November  2005,  the FASB issued Staff  Position No. FAS 115-1 ("FSP 115-1"),
"The Meaning of  Other-Than-Temporary  Impairment and Its Application to Certain
Investments".  FSP  115-1  provides  accounting  guidance  for  identifying  and
recognizing  other-than-temporary  impairments of debt and equity securities, as
well as cost  method  investments  and  disclosure  requirements.  FSP  115-1 is
effective for reporting  periods  beginning after December 15, 2005, and earlier
application is permitted.  The Company has  determined  that the adoption of FSP
115-1 does not have an impact on its result of operations or financial position.

Item 3. Controls and Procedures.

As of the end of the period covered by this report,  we conducted an evaluation,
under the supervision and with the  participation of our chief executive officer
and chief  financial  officer of our  disclosure  controls  and  procedures  (as
defined in Rule 13a-15(e) and Rule  15d-15(e) of the Exchange  Act).  Based upon
this  evaluation,  our  chief  executive  officer  and chief  financial  officer
concluded  that our  disclosure  controls and procedures are effective to ensure
that  information  required to be disclosed by us in the reports that we file or
submit under the Exchange Act is recorded,  processed,  summarized and reported,
within the time periods specified in the Commission's rules and forms. There was
no change in our internal  controls or in other  factors that could affect these
controls  during our last fiscal  quarter that has  materially  affected,  or is
reasonably  likely to materially  affect,  our internal  control over  financial
reporting.

                                       15
<PAGE>
                                     PART II

Item 1. Legal Proceedings.

The Company is not  currently a party to, nor is any of its  property  currently
the subject of, any pending legal proceeding.  None of the Company's  directors,
officers or  affiliates  is involved in a  proceeding  adverse to the  Company's
business or has a material interest adverse to the Company's business.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On May 3, 2006,  the Company  entered into a $3,250,000  secured Loan  Agreement
(the  "Loan  Agreement")  with 555  Holdings  LLC,  a Nevada  limited  liability
company, and Global Developments Inc. (collectively the "Lenders"),  pursuant to
which Loan Agreement the Company issued $3,250,000 in aggregate principal amount
of promissory notes  (collectively  the "Notes") to the Lenders.  In lieu of the
interest on the Notes, the Company agreed to simultaneously with the issuance of
the Notes to issue three and one third shares of common stock,  $0.001 par value
per share (the "Common  Stock"),  of  restricted  stock of the Company for every
dollar  loaned by the Lenders,  amounting to  10,833,333  shares of Common Stock
(the  "Shares").   The  issuance  of  the  Note  was  exempt  from  registration
requirements  of the Securities Act of 1933 (the  "Securities  Act") pursuant to
Section 4(2) of such Securities Act and/or  Regulation D promulgated  thereunder
based  upon  the  representations  of the  Investor  that  it is an  "accredited
investor" (as defined under Rule 501 of Regulation D) and that it was purchasing
such securities  without a present view toward a distribution of the securities.
In addition, there was no general advertisement conducted in connection with the
sale of the securities.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders.

On March 10, 2006, the majority of the  shareholders  of the Company  approved a
resolution to conduct a forward split of the common stock,  $0.001 par value per
share,  of the Company on a 20 for 1 basis,  payable as a dividend (the "Forward
Split").  The record date for the dividend was Friday,  March 17, 2006,  and the
Forward  Split was  affective as of Monday,  March 20, 2006.  As a result of the
dividend,  the issued and outstanding common stock of the Company increased from
3,570,000  shares  issued  and  outstanding  to  71,400,000  shares  issued  and
outstanding.

Item 5. Other Information.

On May 3, 2006, New World  Entertainment  Corp. (the  "Company")  entered into a
$3,250,000 secured Loan Agreement (the "Loan Agreement") with certain accredited
investors (the  "Lenders"),  pursuant to which the Company issued  $3,250,000 in
aggregate principal amount of promissory notes (collectively the "Notes") to the
Lenders.  In  lieu  of  the  interest  on  the  Notes,  the  Company  agreed  to
simultaneously  issue  three and one third  shares of common  stock,  $0.001 par
value per share (the "Common  Stock"),  of  restricted  stock of the Company for
every dollar  loaned by the Lenders,  amounting to  10,833,333  shares of Common
Stock (the "Shares").  The Company used the proceeds of the Notes to finance the
acquisition of 75% of the assets of two privately  owned  entities  formed under
the laws of Antigua, as was previously disclosed in the Company's Current Report
filed on Form 8-K with the Securities and Exchange Commission on April 11, 2006.
The  issuance  of the Note was  exempt  from  registration  requirements  of the
Securities Act of 1933 (the  "Securities  Act") pursuant to Section 4(2) of such
Securities  Act  and/or  Regulation  D  promulgated  thereunder  based  upon the
representations  of the  Investors  that  they are  "accredited  investors"  (as
defined  under  Rule 501 of  Regulation  D) and that they were  purchasing  such
securities  without a present view toward a distribution of the  securities.  In
addition,  there was no general  advertisement  conducted in connection with the
sale of the securities.

In  connection  with the Loan  Agreement,  the  Company  also  entered  into the
Registration  Rights  Agreement with the Lenders,  pursuant to which the Company
has agreed to file a registration  statement on Form SB-2 registering the Shares
(the "Registration Statement") as soon as practicable after the date of issuance
of the Notes,  but in any event no later than June 19, 2006,  and further agreed
to use its best efforts to cause the Registration  Statement to become effective
under the  Securities  Act no later than 120 days from May 3, 2006 (the "Closing
Date").

In addition,  to secure the Company's  repayment of principal due to the Lenders
under the Notes, the Lenders and certain Shareholders of the Company,  within 30
day of the Closing  Date,  (the  "Shareholders")  will enter into a (i) Security
Agreement,   and  (ii)  Collateral  Agent  Agreement,   pursuant  to  which  the
Shareholders  will  agree to  grant to the  Lenders  a first  priority  security
interest in aggregate amount of 10,000,000  shares of the Company's Common Stock
owned by the Shareholders.  The Notes and the aforementioned  Security Agreement
shall  terminate  upon the  Company's  repayment to the Lenders of principal due
under the Notes on or prior to May 3, 2007.

The  Company  further  agreed  to use  its  best  efforts  to  obtain  requisite
Shareholder  Approval,  as  defined  in the  Loan  Agreement,  to  increase  its
authorized  capital stock in order to accommodate the amount of the shares to be
issued in connection with the Loan Agreement and other transaction documents.

At the  Lenders'  election,  upon prior  written  notice  following  an event of
default by the Company under the terms of the proposed Loan  Agreement and after
the  applicable  cure  period,  the  Lenders  shall have the right to direct the
disposition  of, and  utilize,  the Pledge  Securities  in order to satisfy  the
Company's outstanding obligations pursuant to the Loan Agreement and transaction
documents entered into in connection with the Loan Agreement.

                                       16
<PAGE>
Item 6. Exhibits.

Exhibit
Number                                   Description
--------------------------------------------------------------------------------

2         Plan of Merger adopted in connection with the Articles of Merger filed
          by the Company with the  Secretary of State of Nevada  effective as of
          May 1, 2006.*

3(i)1     Articles of Incorporation of New World Entertainment Corp. (1)

3(i)2     Certificate of Amendment to the Articles of Incorporation changing the
          Company's name from Morningstar Industrial Holdings Corp. to New World
          Entertainment  Corp.  filed with the  Secretary of State of Nevada and
          effective as of March 27, 2006. (2)

3(ii)1    By-laws of New World Entertainment Corp. (1)

10.1      Promissory Note made to Global Developments Inc., dated May 3, 2007. *

10.2      Promissory Note made to 555 Holdings LLC, dated May 3, 2007. *

10.3      Form of Security Agreement by and among New World Entertainment Corp.,
          pledging Shareholders and Greg Dureault. *

10.4      Registration  Rights  Agreement  entered  into by and  among New World
          Entertainment Corp. and the Lenders named in the Loan Agreement, dated
          May 3, 2006. *

10.5      Loan Agreement entered into by and among New World Entertainment Corp.
          and the Lenders, dated May 3, 2006.*

10.6      Form of  Collateral  Agent  Agreement,  entered into by and among Greg
          Dureault and the Lenders.*

31.1      Certification  by  President,  required  by  Rule  13a-14(a)  or  Rule
          15d-14(a) of the Exchange Act,  promulgated pursuant to Section 302 of
          the Sarbanes-Oxley Act of 2002.*

32.1      Certification  by  President,  required  by  Rule  13a-14(b)  or  Rule
          15d-14(b)  of the Exchange Act and Section 1350 of Chapter 63 of Title
          18 of the United States Code,  promulgated  pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002.*

* Provided herewith.

(1) Filed as an exhibit to the Registrant's  Form SB-2 filed with the Securities
and Exchange Commission on July 21, 2005 and incorporated herein by reference.

(2) Filed as an exhibit  to the  Registrant's  Current  Report on Form 8-K filed
with the Securities and Exchange  Commission on April 11, 2006 and  incorporated
herein by reference.

                                       17
<PAGE>

                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                  NEW WORLD ENTERTAINMENT CORP.





Dated: May 22, 2006               By: /s/ Michelle Dobson
                                      -------------------
                                      Michelle Dobson
                                      President and Director



                                       18