**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**Commission      File Number: 333-116324**

**ROTOBLOCK      CORPORATION**

----

**PART      I - FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

----

**ROTOBLOCK      CORPORATION**

**(A      Development Stage Company)**

**INTERIM      CONSOLIDATED FINANCIAL STATEMENTS**

**July      31, 2006**

**(Unaudited)**

**(Stated      in U.S. Dollars)**

----

| **ROTOBLOCK                CORPORATION***(A                Development Stage Company)* |
|----------------------------------------------------------------------------------------|
|                                                                                   |
| **Interim                Consolidated Balance Sheets**                                 |
| *(Stated                in U.S. Dollars)*                                              |
|                                                                                   |   |

|  **ASSETS**                                                                                | **July                31,****2006*****(Unaudited)*** | April                30,2006*(Audited)* |
|-------------------------------------------------------------------------------------------------|------------------------------------------------------|-----------------------------------------|
| **Current**                                                                                     |                                                 |                                    |   |   |
| Cash                                                                                            | **$**                                                | **14,216**                              | $ | 1,884 |
| Accounts                receivable                                                              |                                                 | **196**                                 |   | 686 |
| Prepaid                expenses                                                                 |                                                 | **198,574**                             |   | 266,546 |
|                                                                                            |                                                 | **212,986**                             |   | 269,116 |
| **Patents***(Note                4)*                                                            |                                                 | **108,745**                             |   | 108,745 |
|                                                                                            | **$**                                                | **321,731**                             | $ | 377,861 |
|                                                                                            |                                                 |                                    |   |   |
|                                                                                            |                                                 |                                    |   |   |
|                                                                                            |                                                 |                                    |   |   |
| **LIABILITIES**                                                                                 |                                                 |                                    |   |   |
| **Current**                                                                                     |                                                 |                                    |   |   |
| Accounts                payable                                                                 | **$**                                                | **405**                                 | $ | 6,608 |
| Accrued                liabilities                                                              |                                                 | **28,291**                              |   | 20,874 |
| Due                to related party *(Note                7)*                                   |                                                 | **590**                                 |   | 597 |
| Interest                payable *(Note                6)*                                       |                                                 | **11,705**                              |   | 11,705 |
|                                                                                            |                                                 | **40,991**                              |   | 39,784 |
|                                                                                            |                                                 |                                    |   |   |
| **Continued                Operations***(Note                1)*                                |                                                 |                                    |   |   |
|                                                                                            |                                                 |                                    |   |   |
| **STOCKHOLDERS’                EQUITY**                                                   |                                                 |                                    |   |   |
| **Capital                Stock**                                                                |                                                 |                                    |   |   |
| Authorized:                                                                                     |                                                 |                                    |   |   |
| 75,000,000                common shares with a par value of $0.001 per share                    |                                                 |                                    |   |   |
| Issued                and fully paid:                                                           |                                                 |                                    |   |   |
| 28,906,137                common shares (April 30, 2006 - 28,617,338) *(Note                9)* |                                                 | **28,906**                              |   | 28,617 |
| Additional                paid-in capital                                                       |                                                 | **3,552,615**                           |   | 3,495,746 |
| **Accumulated                Comprehensive Loss**                                               |                                                 | **(4,253)**                             |   | (4,253) |
| **Deficit**                -                accumulated during the development stage            |                                                 | **(3,296,528)**                         |   | (3,182,033) |
|                                                                                            |                                                 | **280,740**                             |   | 338,077 |
|                                                                                            | **$**                                                | **321,731**                             | $ | 377,861 |

----

| **ROTOBLOCK                CORPORATION***(A                Development Stage Company)*     |
|--------------------------------------------------------------------------------------------|
|                                                                                       |
| **Interim                Consolidated Statement of Changes in Stockholders’ Equity** |
| *(Stated                in U.S. Dollars)*                                                  |
|                                                                                       |

|                                                                                                                                                         | Common                Stock            |   | Additional                Paid-in Capital | Accumulated                Comprehensive Loss | Deficit                Accumulated During the Development Stage | Total                Stockholders’ Equity |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|--------|-------------------------------------------|-----------------------------------------------|-----------------------------------------------------------------|-------------------------------------------------|
|                                                                                                                                                         | Number                of Common Shares |   | Par                Value                  |                                          |
|                                                                                                                                                         |                                   |   |                                      |                                          |                                                            |                                            |   |   |   |   |   |
| Shares                issued for cash                                                                                                                        | 7,000,000                              | $      | -                                         | $                                             | 534                                                             | $                                               | - | $ | - | $ | 534 |
| Shares                issued for cash                                                                                                                        | 200,000                                |   | -                                         |                                          | 38,130                                                          |                                            | - |   | - |   | 38,130 |
| Adjustment                to number of shares issued and outstanding as a result of the acquisition                of net assets of Rotoblock Inc.*(Note 3)* | (7,200,000)                            |   | -                                         |                                          | -                                                               |                                            | - |   | - |   | - |
| Shares                issued in connection with the acquisition of net assets of Rotoblock                Inc.                *(Note                3)*      | 15,000,000                             |   | 15,000                                    |                                          | (15,000)                                                        |                                            | - |   | - |   | - |
| Excess                of consideration over net assets purchased from Rotoblock Inc.                *(Note                3)*                                | -                                      |   | -                                         |                                          | -                                                               |                                            | - |   | (138) |   | (138) |
| Foreign                currency translation adjustment                                                                                                       | -                                      |   | -                                         |                                          | -                                                               |                                            | (1,918) |   | - |   | (1,918) |
| Loss                for the period                                                                                                                           | -                                      |   | -                                         |                                          | -                                                               |                                            | - |   | (108,443) |   | (108,443) |
| Balance                - April 30, 2004 *(Audited)*                                                                                                          | 15,000,000                             |   | 15,000                                    |                                          | 23,664                                                          |                                            | (1,918) |   | (108,581) |   | (71,835) |
| Shares                issued for cash *(Note                9a)*                                                                                             | 10,000,000                             |   | 10,000                                    |                                          | 490,000                                                         |                                            | - |   | - |   | 500,000 |
| Foreign                currency translation adjustment                                                                                                       | -                                      |   | -                                         |                                          | -                                                               |                                            | (1,385) |   | - |   | (1,385) |
| Loss                for the year                                                                                                                             | -                                      |   | -                                         |                                          | -                                                               |                                            | - |   | (306,193) |   | (306,193) |
| Balance                - April 30, 2005 *(Audited)*                                                                                                          | 25,000,000                             |   | 25,000                                    |                                          | 513,664                                                         |                                            | (3,303) |   | (414,774) |   | 120,587 |
| Shares                issued for cash*(Note 9a)*                                                                                                             | 548,160                                |   | 548                                       |                                          | 142,893                                                         |                                            | - |   | - |   | 143,441 |
| Shares                issued for services *(Note                9a)*                                                                                         | 2,418,130                              |   | 2,418                                     |                                          | 751,459                                                         |                                            | - |   | - |   | 753,877 |
| Shares                issued for inventory*(Notes                7 and 9a)*                                                                                  | 611,048                                |   | 611                                       |                                          | 176,593                                                         |                                            | - |   | - |   | 177,204 |
| Shares                issued for exercised warrants *(Note                9a)*                                                                               | 40,000                                 |   | 40                                        |                                          | 9,960                                                           |                                            | - |   | - |   | 10,000 |
| Consulting                expense - stock-based compensation *(Notes                9b and 9c)*                                                              | -                                      |   | -                                         |                                          | 1,901,177                                                       |                                            | - |   | - |   | 1,901,177 |
| Foreign                currency translation adjustment                                                                                                       | -                                      |   | -                                         |                                          | -                                                               |                                            | (950) |   | - |   | (950) |
| Loss                for the year                                                                                                                             | -                                      |   | -                                         |                                          | -                                                               |                                            | - |   | (2,767,259) |   | (2,767,259) |
| Balance                - April 30, 2006 *(Audited)*                                                                                                          | 28,617,338                             |   | 28,617                                    |                                          | 3,495,746                                                       |                                            | (4,253) |   | (3,182,033) |   | 338,077 |
| Shares                issued for cash*(Note 9a)*                                                                                                             | 114,286                                |   | 114                                       |                                          | 23,886                                                          |                                            | - |   | - |   | 24,000 |
| Shares                issued for services *(Note                9a)*                                                                                         | 174,513                                |   | 175                                       |                                          | 32,983                                                          |                                            | - |   | - |   | 33,158 |
| Foreign                currency translation adjustment                                                                                                       | -                                      |   | -                                         |                                          | -                                                               |                                            | - |   | - |   | - |
| Loss                for the period                                                                                                                           | -                                      |   | -                                         |                                          | -                                                               |                                            | - |   | (114,495) |   | (114,495) |
| Balance                - July 31, 2006 *(Unaudited)*                                                                                                         | 28,906,137                             | $      | 28,906                                    | $                                             | 3,552,615                                                       | $                                               | (4,253) | $ | (3,296,528) | $ | 280,740 |

----

| **ROTOBLOCK                CORPORATION***(A                Development Stage Company)* |
|----------------------------------------------------------------------------------------|
|                                                                                   |
| **Interim                Consolidated Statements of Operations**                       |
| *(Stated                in U.S. Dollars)**(Unaudited)*                                 |
|                                                                                   |   |

|                                                                                            |   | **For                the****Three                Months Ended****July                31,****2006** |   | For                theThree                Months EndedJuly                31,2005 | For                the periodfromCommencementof                Operations(September                2,2003)to                July 31,2006 |
|-------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
| **Expenses**                                                                                    |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Consulting                fees                                                                  | **$**  | **32,457**                                                                                         | $      | 5,000                                                                              | $                                                                                                                                        | 377,974 |
| Consulting                expense - stock-based compensation *(Notes                9b and 9c)* |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | 1,901,177 |
| Depreciation                                                                                    |   | **-**                                                                                              |   | 731                                                                                |                                                                                                                                     | 3,968 |
| Foreign                exchange loss (gain)                                                     |   | **195**                                                                                            |   | -                                                                                  |                                                                                                                                     | 1,545 |
| Interest                                                                                        |   | **136**                                                                                            |   | 200                                                                                |                                                                                                                                     | 15,340 |
| Investor                relations                                                               |   | **36,461**                                                                                         |   | -                                                                                  |                                                                                                                                     | 134,981 |
| Listing,                filing and transfer agent fees                                          |   | **2,169**                                                                                          |   | 13,874                                                                             |                                                                                                                                     | 23,458 |
| Office                and sundry                                                                |   | **2,861**                                                                                          |   | 5,283                                                                              |                                                                                                                                     | 40,576 |
| Professional                fees                                                                |   | **11,329**                                                                                         |   | 10,631                                                                             |                                                                                                                                     | 133,197 |
| Public                relations and shareholder information                                     |   | **20,870**                                                                                         |   | -                                                                                  |                                                                                                                                     | 65,100 |
| Rent                                                                                            |   | **6,236**                                                                                          |   | 5,464                                                                              |                                                                                                                                     | 57,580 |
| Research                and development                                                         |   | **424**                                                                                            |   | 39,686                                                                             |                                                                                                                                     | 314,262 |
| Travel                and promotion                                                             |   | **1,357**                                                                                          |   | 6,563                                                                              |                                                                                                                                     | 40,158 |
| **Total                Expenses**                                                               |   | **114,495**                                                                                        |   | 87,432                                                                             |                                                                                                                                     | 3,109,316 |
| **Loss                for the Period from Operations**                                          |   | **(114,495)**                                                                                      |   | (87,432)                                                                           |                                                                                                                                     | (3,109,316) |
| **Other                Items**                                                                  |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Write-off                of property and equipment                                              |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | (9,870) |
| Write-off                of related party receivable *(Note                7)*                  |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | (177,204) |
| **Loss                for the Period**                                                          | **$**  | **(114,495)**                                                                                      | $      | (87,432)                                                                           | $                                                                                                                                        | (3,296,390) |
|                                                                                            |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| **Basic                and Diluted Loss per Share**                                             | **$**  | **(0.00)**                                                                                         | $      | (0.00)                                                                             |                                                                                                                                     |   |
|                                                                                            |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| **Weighted                Average Shares Outstanding**                                          |   | **28,770,230**                                                                                     |   | 25,000,000                                                                         |                                                                                                                                     |   |
|                                                                                            |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| **Comprehensive                Loss**                                                           |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Loss                for the period                                                              | **$**  | **(114,495)**                                                                                      | $      | (87,432)                                                                           | $                                                                                                                                        | (3,296,390) |
| Foreign                currency translation adjustment                                          |   | **-**                                                                                              |   | (1,923)                                                                            |                                                                                                                                     | (4,253) |
| **Total                Comprehensive Loss**                                                     | **$**  | **(114,495)**                                                                                      | $      | (89,355)                                                                           | $                                                                                                                                        | (3,300,643) |
|                                                                                            |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| **Comprehensive                Loss per Share**                                                 | **$**  | **(0.00)**                                                                                         | $      | (0.00)                                                                             |                                                                                                                                     |   |

----

| **ROTOBLOCK                CORPORATION***(A                Development Stage Company)* |
|----------------------------------------------------------------------------------------|
|                                                                                   |
| **Interim                Consolidated Statements of Cash Flows**                       |
| *(Stated                in U.S. Dollars)**(Unaudited)*                                 |
|                                                                                   |   |

|                                                                                                   |   | **For                the****Three                Months Ended****July                31,****2006** |   | For                theThree                Months EndedJuly                31,2005 | For                the periodFromCommencementof                Operations(September                2,2003)to                July 31,2006 |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
| **Operating                Activities**                                                                |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Loss                for the period                                                                     | **$**  | **(114,495)**                                                                                      | $      | (87,432)                                                                           | $                                                                                                                                        | (3,296,390) |
| Items                not involving an outlay of cash:                                                  |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Non-cash                interest                                                                       |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | 11,705 |
| Depreciation                                                                                           |   | **-**                                                                                              |   | 731                                                                                |                                                                                                                                     | 3,968 |
| Shares                for services *(Note                9a)*                                          |   | **33,158**                                                                                         |   | -                                                                                  |                                                                                                                                     | 521,858 |
| Consulting                expense - stock-based compensation *(Notes                9b and 9c)*        |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | 1,901,177 |
| Write-off                of property and equipment                                                     |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | 9,870 |
| Write-off                of related party receivable *(Note                7)*                         |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | 177,204 |
|                                                                                                   |   | **(81,337)**                                                                                       |   | (86,701)                                                                           |                                                                                                                                     | (670,608) |
| Change                in non cash items:                                                               |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Accounts                receivable                                                                     |   | **490**                                                                                            |   | (728)                                                                              |                                                                                                                                     | (196) |
| Prepaid                expenses                                                                        |   | **67,972**                                                                                         |   | (295)                                                                              |                                                                                                                                     | 66,603 |
| Accounts                payable                                                                        |   | **(6,203)**                                                                                        |   | 39,256                                                                             |                                                                                                                                     | 405 |
| Accrued                liabilities                                                                     |   | **7,417**                                                                                          |   | (4,590)                                                                            |                                                                                                                                     | 28,291 |
|                                                                                                   |   | **(11,661)**                                                                                       |   | (53,058)                                                                           |                                                                                                                                     | (575,505) |
| **Investing                Activities**                                                                |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Purchase                of equipment                                                                   |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | (13,838) |
| Deficiency                of purchase of net assets                                                    |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | (138) |
| Purchase                of patents                                                                     |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | (108,745) |
|                                                                                                   |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | (122,721) |
| **Financing                Activities**                                                                |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Issuance                of common stock                                                                |   | **24,000**                                                                                         |   | -                                                                                  |                                                                                                                                     | 706,105 |
| Issuance                of shares for warrants exercised                                               |   | **-**                                                                                              |   | -                                                                                  |                                                                                                                                     | 10,000 |
| Advances                payable                                                                        |   | **-**                                                                                              |   | 30                                                                                 |                                                                                                                                     | - |
| Due                to related party                                                                    |   | **(7)**                                                                                            |   | 5,423                                                                              |                                                                                                                                     | 590 |
|                                                                                                   |   | **23,993**                                                                                         |   | 5,453                                                                              |                                                                                                                                     | 716,695 |
|                                                                                                   |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| **Foreign                Exchange Effect on Cash**                                                     |   | **-**                                                                                              |   | (1,923)                                                                            |                                                                                                                                     | (4,253) |
|                                                                                                   |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| **Net                Increase (Decrease) in Cash**                                                     |   | **12,332**                                                                                         |   | (49,528)                                                                           |                                                                                                                                     | 14,216 |
| Cash                - Beginning of period                                                              |   | **1,884**                                                                                          |   | 51,860                                                                             |                                                                                                                                     | - |
| **Cash                - End of Period**                                                                | **$**  | **14,216**                                                                                         | $      | 2,332                                                                              | $                                                                                                                                        | 14,216 |
|                                                                                                   |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| **Supplemental                Schedule of Non-cash Investing and Financing                Activities** |   |                                                                                               |   |                                                                               |                                                                                                                                     |   |
| Shares                issued for services *(Note                9a)*                                   | **$**  | **33,158**                                                                                         | $      | -                                                                                  | $                                                                                                                                        | 787,035 |
| Shares                issued for inventory *(Notes                7 and 9a)*                           | **$**  | **-**                                                                                              | $      | -                                                                                  | $                                                                                                                                        | 177,204 |
| Consulting                expense - stock-based compensation*(Notes 9b and 9c)*                        | **$**  | **-**                                                                                              | $      | -                                                                                  | $                                                                                                                                        | 1,901,177 |
| Shares                issued for acquisition of Rotoblock Inc.                                         | **$**  | **-**                                                                                              | $      | -                                                                                  | $                                                                                                                                        | (138) |

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

| **1.  ** | **CONTINUED              OPERATIONS** |
|--------------------|---------------------------------------|

*(Note      4)*

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

**2.**
**SIGNIFICANT      ACCOUNTING POLICIES **

**3.** **ACQUISITION      OF ROTOBLOCK INC.**

| Current                Assets       | $      | 149,862   |
|-------------------------------------|--------|-----------|
| Current                Liabilities  |   | (150,000) |
|                                |   |      |
| Net                Asset Deficiency | $      | (138)     |

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

**4.**
**PATENTS**

| Patent                costs to date     | $      | 108,745 |
|-----------------------------------------|--------|---------|
| Accumulated                depreciation |   | -       |
|                                    | $      | 108,745 |

**5.**
**JOINT      VENTURE AGREEMENTS**

|   | a) | On                January 27, 2006, the Company signed a letter of intent for a joint                venture agreement with Apollo Energy Systems, Inc. This joint venture                would be formed for the purpose of developing Hybrid Electric Car                Technology. All administrative and legal costs would be shared and                an                operational cost sharing plan will be developed based on partner                contribution. During the period, no significant activities occurred                in the                joint venture. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | On                July 18, 2006, the Company entered into an Engine Development and                License                Agreement with an unrelated party, Obvio ! Automotoveiculos S.A.                (“Obvio                !”), located in Brazil. Obvio ! will be incorporating the Oscillating                Piston Engine (“OPE”) into their vehicles. The parties have agreed to                enter into a non-exclusive joint venture to develop a third generation                OPE                suitable for hybrid applications. The Company will grant the unrelated                party with the license for the OPE technology for $5,000,000, which                will                be payable in increments of $500 for each engine installed or sold.                Upon                receiving the $5,000,000 from the Obvio !, the Company will also                receive                royalties of $100 per vehicle sold that incorporated the OPE                technology. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**6.**
**LOAN      PAYABLE**

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

**7**
**.**
**RELATED      PARTY BALANCES AND TRANSACTIONS**

*(Note      9a) *

**8.**
**INCOME      TAX**

| Future                income tax assets: |   | **July                31,****2006** |   | April                30,2006 |
|------------------------------------------|--------|-------------------------------------|--------|------------------------------|
| Non-capital                tax loss      | **$**  | **451,951**                         | $      | 414,158                      |
| Valuation                allowance       |   | **(451,951)**                       |   | (414,158)                    |
|                                     | **$**  | **-**                               | $      | -                            |

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

| **9.** | **SHARE                CAPITAL** |
|--------|----------------------------------|

| a)   | Common              Stock |
|----------------|---------------------------|

*(Note      3)*

*(Note      7)*

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

| **9.** | **SHARE                CAPITAL**                -                *Continued* |
|--------|------------------------------------------------------------------------------|

| **Date                Issued**                                      |   | **Number****of                shares** |   | **Price**                |   | **Price****per                share** | **Service**                       |
|---------------------------------------------------------------------|--------|----------------------------------------|--------|--------------------------|--------|---------------------------------------|-----------------------------------|
| August                24, 2005                                      |   | 250,000                                |   | 95,000                   |   | 0.38                                  | Consulting*                       |
| August                24, 2005                                      |   | 25,000                                 |   | 9,500                    |   | 0.38                                  | Computer                and IT    |
| August                24, 2005                                      |   | 50,000                                 |   | 19,000                   |   | 0.38                                  | Public                relations   |
| August                24, 2005                                      |   | 25,000                                 |   | 9,500                    |   | 0.38                                  | Investor                relations |
| August                24, 2005                                      |   | 300,000                                |   | 114,000                  |   | 0.38                                  | Legal                             |
| August                24, 2005                                      |   | 250,000                                |   | 95,000                   |   | 0.38                                  | Consulting*                       |
| August                24, 2005                                      |   | 25,000                                 |   | 9,500                    |   | 0.38                                  | Accounting                        |
| September                28, 2005                                   |   | 104,171                                |   | 29,168                   |   | 0.28                                  | Investor                relations |
| September                29, 2005                                   |   | 100,000                                |   | 25,000                   |   | 0.25                                  | Consulting                        |
| September                29, 2005                                   |   | 150,000                                |   | 37,500                   |   | 0.25                                  | Consulting*                       |
| October                27, 2005                                     |   | 327,586                                |   | 95,000                   |   | 0.29                                  | Investor                relations |
| October                28, 2005                                     |   | 99,360                                 |   | 24,840                   |   | 0.25                                  | Rent                              |
| November                1, 2005                                     |   | 50,000                                 |   | 14,000                   |   | 0.28                                  | Public                relations   |
| November                1, 2005                                     |   | 125,000                                |   | 35,000                   |   | 0.28                                  | Consulting                        |
| November                2, 2005                                     |   | 80,000                                 |   | 23,200                   |   | 0.29                                  | Consulting                        |
| November                14, 2005                                    |   | 100,000                                |   | 50,000                   |   | 0.50                                  | Printing                          |
| January                12, 2006                                     |   | 250,000                                |   | 37,500                   |   | 0.15                                  | Consulting                        |
| January                12, 2006                                     |   | 16,667                                 |   | 2,500                    |   | 0.15                                  | Legal                             |
| January                25, 2006                                     |   | 68,287                                 |   | 21,169                   |   | 0.31                                  | Commission                bonus   |
| February                7, 2006                                     |   | 22,059                                 |   | 7,500                    |   | 0.34                                  | Consulting                        |
| June                28, 2006                                        |   | 24,513                                 |   | 4,658                    |   | 0.19                                  | Consulting                        |
| June                29, 2006                                        |   | 150,000                                |   | 28,500                   |   | 0.19                                  | Public                relations   |
| Total                                                               |   | 2,592,643                              |   | $                787,035 |   |                                  |                              |
|                                                                |   |                                   |   |                     |   |                                  |                              |
| **                Shares issued for services from related parties.* |   |                                   |   |                     |   |                                  |                              |

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

**9.      SHARE CAPITAL**
***-***
*Continued*

|                                                 |    Number                of warrants |   | Weighted                average exercise price per share |
|------------------------------------------------------|-----------------------------------------------------|--------|----------------------------------------------------------|
| Warrants                outstanding, April 30, 2006* | 14,462,160                                          | $      | 0.45                                                     |
| Warrants                granted                      | -                                                   |   |                                                     |
| Warrants                exercised                    | -                                                   |   |                                                     |
| Warrants                cancelled                    | -                                                   |   |                                                     |
| Warrants                outstanding, July 31, 2006   | 14,462,160                                          | $      | 0.45                                                     |
|                                                 |                                                |   |                                                     |

**      Of      this, 6,900,000 warrants were granted to related parties.*

| Warrants | Number     | Price                per Share                                                                                                | Expiry                Date                                   |
|----------|------------|-------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|
|     |       |                                                                                                                          |                                                         |
|     | 5,000,000  | $0.50                                                                                                                         | November                26, 2006                             |
|     | 2,000,000  | $0.50                                                                                                                         | August                11, 2007                               |
|     | 1,125,000  | $0.50                                                                                                                         | August                23, 2007                               |
|     | 3,000,000  | $0.50                                                                                                                         | August                24, 2007                               |
|     | 250,000    |                     $0.50 |   September                28,                2007 |
|     | 1,154      | $0.50                                                                                                                         | November                29, 2007                             |
|     | 125,000    | $0.50                                                                                                                         | December                5, 2007                              |
|     | 1,006      | $0.50                                                                                                                         | December                23, 2007                             |
|     | 2,960,000  | $0.25                                                                                                                         | January                12, 2011                              |
|     | 14,462,160 |                                                                                                                          |                                                         |

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

**9**
**.      SHARE CAPITAL**
***-***
*Continued*

| Expected                dividend yield         |   | 0.00%                        |
|------------------------------------------------|--------|------------------------------|
| Expected                stock price volatility |   | 134-141%                     |
| Risk-free                interest rate         |   | 4.04-4.42%                   |
| Expected                life of options        |   | 2.0-5.0                years |

| **10.** | **SUPPLEMENTARY                CASH FLOW INFORMATION** |
|---------|--------------------------------------------------------|

|                             |   | **Three                Months Ended****July                31, 2006** |   | Three                Months EndedJuly                31, 2005 |   | Period                from Commencement of Operations September 2, 2003 toJuly                31, 2006 |
|----------------------------------|--------|-----------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
| Interest                paid     | **$**  |                                                                  | $      | 200                                                           | $      | 11,362                                                                                                 |
| Income                taxes paid | **$**  | **-**                                                                 | $      | -                                                             | $      | -                                                                                                      |

----

**ROTOBLOCK      CORPORATION**

*(A      Development Stage Company)*

**Notes      to Interim Consolidated Financial Statements**

**July      31, 2006**

*(Stated      in U.S. Dollars)*

*(Unaudited)*

**11.**
**SUBSEQUENT      EVENTS**

----

**ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION.**

***Results      of Operations***

----

| Warrants | Number     | Price                per Share | Expiration                Date    |
|----------|------------|--------------------------------|-----------------------------------|
|     |       |                           |                              |
|     | 5,000,000  | $0.50                          | November                26, 2006  |
|     | 2,000,000  | $0.50                          | August                11, 2007    |
|     | 1,125,000  | $0.50                          | August                23, 2007    |
|     | 3,000,000  | $0.50                          | August                24, 2007    |
|     | 250,000    | $0.50                          | September                28, 2007 |
|     | 1,154      | $0.50                          | November                29, 2007  |
|     | 125,000    | $0.50                          | December                5, 2007   |
|     | 1,006      | $0.50                          | December                23, 2007  |
|     | 2,960,000  | $0.25                          | January                12, 2011   |
|     | 14,462,160 |                           |                              |

***Liquidity      and Capital Resources***

----

***Plan      of Operation***

*      (“Agreement”)*
*      (“Obvio!”)*
*      (“OPE”) *

----

***Critical      Accounting Policies***

**ITEM      3. CONTROLS AND PROCEDURES**

----

**PART      II - OTHER INFORMATION**

**TEM      6. EXHIBITS AND REPORTS ON FORM 8-K**

**SIGNATURES**

**Rotoblock      Corporation**