----

|                           |                                                                                            | Page   |
|--------------------------------|-------------------------------------------------------------------------------------------------|--------|
|                           | PART      I - FINANCIAL INFORMATION                                                             |   |
|                           |                                                                                            |   |
| ITEM      1.                   | Financial      Statements                                                                       | 3      |
|                           |                                                                                            |   |
| ITEM      2.                   | Management's      Discussion and Analysis of Financial Condition and Results of      Operations | 22     |
|                           |                                                                                            |   |
| ITEM      3.                   | Quantitative      and Qualitative Disclosures About Market Risk                                 | 23     |
|                           |                                                                                            |   |
| ITEM      4.                   | Controls      and Procedures                                                                    | 23     |
|                           |                                                                                            |   |
|                           | PART      II - OTHER INFORMATION                                                                |   |
|                           |                                                                                            |   |
| ITEM      1.                   | Legal      Proceedings                                                                          | 23     |
|                           |                                                                                            |   |
| ITEM      1A.                  | Risk      Factors                                                                               | 23     |
|                           |                                                                                            |   |
| ITEM      2.                   | Unregistered      Sales of Equity Securities and Use of Proceeds                                | 24     |
|                           |                                                                                            |   |
| ITEM      3.                   | Defaults      Upon Senior Securities                                                            | 25     |
|                           |                                                                                            |   |
| ITEM      4.                   | Submission      of matters to a Vote of Security Holders                                        | 25     |
|                           |                                                                                            |   |
| ITEM      5.                   | Other      Information                                                                          | 25     |
|                           |                                                                                            |   |
| ITEM      6.    |  Exhibits                                                                                  | 25     |

----

----

----

|                                                                  |   | As      at31      July 2008(Unaudited) |   |  As      at30      April2008(Audited) |
|-----------------------------------------------------------------------|--------|---------------------------------------------|--------|--------------------------------------------|
|                                                                  |   | $                                           |   | $                                          |
| Assets                                                                |   |                                        |   |                                       |
|                                                                  |   |                                        |   |                                       |
| Current                                                               |   |                                        |   |                                       |
| Cash      and cash equivalents                                        |   | 79,567                                      |   | 91,947                                     |
| Accounts      receivable                                              |   | 217                                         |   | 219                                        |
| Prepaid      expenses                                                 |   | 93,431                                      |   | 26,072                                     |
|                                                                  |   |                                        |   |                                       |
|                                                                  |   | 173,215                                     |   | 118,238                                    |
|                                                                  |   |                                        |   |                                       |
| Patents (Note      3)                                                 |   | 108,745                                     |   | 108,745                                    |
| Property and equipment      (Note 4)                                  |   | 2,842                                       |   | -                                          |
|                                                                  |   |                                        |   |                                       |
|                                                                  |   | 284,802                                     |   | 226,983                                    |
| Liabilities                                                           |   |                                        |   |                                       |
|                                                                  |   |                                        |   |                                       |
| Current                                                               |   |                                        |   |                                       |
| Accounts      payable and accrued liabilities (Note 5)                |   | 28,375                                      |   | 10,281                                     |
| Convertible      promissory note payable (Notes 7, 13 and 16)         |   | 10,000                                      |   | 10,000                                     |
| Due      to related party (Note 9)                                    |   | 652                                         |   | 658                                        |
| Interest      payable (Notes 6 and 13)                                |   | 11,705                                      |   | 11,705                                     |
| Obligation      to issue shares (Note 13)                             |   | 4,000                                       |   | -                                          |
|                                                                  |   |                                        |   |                                       |
|                                                                  |   | 54,732                                      |   | 32,644                                     |
|                                                                  |   |                                        |   |                                       |
| Stockholders’      equity                                       |   |                                        |   |                                       |
| Capital stock (Note      11)                                          |   |                                        |   |                                       |
| Authorized                                                            |   |                                        |   |                                       |
| 75,000,000      common shares, par value $0.001                       |   |                                        |   |                                       |
| Issued      and outstanding                                           |   |                                        |   |                                       |
| 31      July 2008 – 38,033,109 common shares, par value $0.001  |   |                                        |   |                                       |
| 30      April 2008 – 36,196,442 common shares, par value $0.001 |   | 38,033                                      |   | 36,196                                     |
| Additional      paid-in capital                                       |   | 4,928,452                                   |   | 4,669,814                                  |
| Warrants                                                              |   | 280,274                                     |   | 114,303                                    |
| Accumulated      comprehensive loss                                   |   | (4,264)                                     |   | (4,268)                                    |
| Deficit,      accumulated during the development stage                |   | (5,012,425)                                 |   | (4,621,706)                                |
|                                                                  |   |                                        |   |                                       |
|                                                                  |   | 230,070                                     |   | 194,339                                    |
|                                                                  |   |                                        |   |                                       |
|                                                                  |   | 284,802                                     |   | 226,983                                    |

1

----

|                                                                                     |   |   |      |    |       |  For      the period from the date of inception on 2 September 2003 to31      July 2008(Unaudited) |       |      For      the threemonth      period  ended31      July 2008 |   |      For      the threemonth      period ended31      July 2007 |
|------------------------------------------------------------------------------------------|--------|--------|-----------|---------|------------|---------------------------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|
|                                                                                     |   |   |      |    |       | $                                                                                                       |       | $                                                                                                        |   | $                                                                                             |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Expenses                                                                                 |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| General      and administrative (Schedule 1)                                             |   |   | 4,840,213 |    | 390,719    |                                                                                                    | 65,634     |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Net      loss before other items                                                         |   |   |      |    |       | (4,840,213)                                                                                             |       | (390,719)                                                                                                |   | (65,634)                                                                                      |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Other      items                                                                         |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Excess      of consideration over net assets purchased from Rotoblock Inc. (Note      1) |   |   | (138)     |    |  -    |                                                                                                    |  -    |
| Write-off      of property and equipment                                                 |   |   | (9,870)   |    | -          |                                                                                                    | -          |
| Write-off      of related party receivable                                               |   |   | (162,204) |    | -          |                                                                                                    | -          |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Loss      for the period                                                                 |   |   |      |    |       | (5,012,425)                                                                                             |       | (390,719)                                                                                                |   | (65,634)                                                                                      |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Basic      and diluted loss per common share                                             |   |   |      |    |       | (0.010)                                                                                                 |       | (0.002)                                                                                                  |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Weighted      average number of common shares used in per share    calculations          |   |   |      |    | 37,380,210 |                                                                                                    | 30,440,886 |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Comprehensive      loss                                                                  |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Loss      for the period                                                                 |   |   |      |    |       | (5,012,425)                                                                                             |       | (390,719)                                                                                                |   | (65,634)                                                                                      |
| Foreign      currency translation adjustment                                             |   |   |      | (4,264) |       | 4                                                                                                       |       | (4)                                                                                                      |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Comprehensive      loss                                                                  |   |   |      |    |       | (5,016,689)                                                                                             |       | (390,715)                                                                                                |   | (65,638)                                                                                      |
|                                                                                     |   |   |      |    |       |                                                                                                    |       |                                                                                                     |   |                                                                                          |
| Comprehensive      loss per common share                                                 |   |   |      |    |       |                                                                                                    |       |  (0.010)                                                                                            |   |  (0.002)                                                                                 |

----

|                                                                              | For      the period from the date of inception on 2 September 2003 to31      July 2008(Unaudited) |   For      the threemonth      period ended31      July 2008                       | For      the threemonth      period ended31      July2007 |
|-----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
|                                                                              |                                                                                                   |                 $ |                                                      | $ |   | $ |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Cash      flows from operating activities                                         |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Loss      for the period                                                          |                                                                                                   | (5,012,425)                                                                                       |                                                      | (390,719) |   | (65,634) |
| Adjustments      to reconcile loss to net cash used by operating activities       |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Contributions      to capital by related party – expenses (Notes 10 and 14) |                                                                                                   | 225,000                                                                                           |                                                      | 25,000 |   | 25,000 |
| Depreciation                                                                      |                                                                                                   | 4,066                                                                                             |                                                      | 98 |   | - |
| Non-cash      interest                                                            |                                                                                                   | 11,705                                                                                            |                                                      | - |   | - |
| Shares      issued for services (Notes 10, 11, 13 and 14)                         |                                                                                                   | 1,262,019                                                                                         |                                                      | 165,641 |   | 27,571 |
| Stock-based      compensation (Notes 11 and 14)                                   |                                                                                                   | 2,523,998                                                                                         |                                                      | 147,446 |   | - |
| Write-off      of property and equipment                                          |                                                                                                   | 9,870                                                                                             |                                                      | - |   | - |
| Write-off      of related party receivable                                        |                                                                                                   | 177,204                                                                                           |                                                      | - |   | - |
| Changes      in operating assets and liabilities                                  |                                                                                                   |                                                                                              |                                                      |   |   |   |
| (Increase)      decrease in accounts receivable                                   |                                                                                                   | (217)                                                                                             |                                                      | 2 |   | (9) |
| Increase      in accounts payable and accrued liabilities                         |                                                                                                   | 28,377                                                                                            |                                                      | 18,094 |   | 11,838 |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   |   |
|                                                                              |                                                                                                   | (770,403)                                                                                         |                                                      | (34,438) |   | (1,234) |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Cash      flows from investing activities                                         |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Purchase      of equipment                                                        |                                                                                                   | (16,778)                                                                                          |                                                      | (2,940) |   | - |
| Purchase      of patents                                                          |                                                                                                   | (108,745)                                                                                         |                                                      | - |   | - |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   | - |
|                                                                              |                                                                                                   | (125,523)                                                                                         |                                                      | (2,940) |   |   |
| Cash      flows from financing activities                                         |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Common      shares issued for cash                                                |                                                                                                   | 886,941                                                                                           |                                                      | 6,475 |   | - |
| Warrants      granted for cash                                                    |                                                                                                   | 72,164                                                                                            |                                                      | 18,525 |   | - |
| Warrants      exercised                                                           |                                                                                                   | 10,000                                                                                            |                                                      | - |   | - |
| Convertible      promissory note payable                                          |                                                                                                   | 10,000                                                                                            |                                                      | - |   | - |
| Increase      in due to related party                                             |                                                                                                   | 652                                                                                               |                                                      | (6) |   | 28 |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   |   |
|                                                                              |                                                                                                   | 979,757                                                                                           |                                                      | 24,994 |   | 28 |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Foreign      exchange effect on cash                                              |                                                                                                   | (4,264)                                                                                           |                                                      | 4 |   | (4) |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Increase      (decrease) in cash and cash equivalents                             |                                                                                                   | 79,567                                                                                            |                                                      | (12,380) |   | (1,210) |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Cash      and cash equivalents, beginning of period                               |                                                                                                   | -                                                                                                 |                                                      | 91,947 |   | 1,482 |
|                                                                              |                                                                                                   |                                                                                              |                                                      |   |   |   |
| Cash      and cash equivalents, end of period                                     |                                                                                                   | 79,567                                                                                            |                                                      | 79,567 |   | 272 |

----

|                                                                                                                                                | Number      of shares issued | Capitalstock | Additional      paid-in capital | Warrants |   Accumulated      comprehensive loss | Deficit      accumulated during the development stage | Stockholders’      equity |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|--------------|---------------------------------|----------|-------------------------------------------------|-------------------------------------------------------|---------------------------------|
|                                                                                                                                                |                         |         |                            | $        |                                            | $                                                     |                            | $ |   | $ |   | $ |   | $ |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 2 September 2003                                                                                                                    |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| 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 as a result of the acquisition of net assets of Rotoblock      Inc.    (Note      1) |                         | (7,200,000)  |                            | -        |                                            | -                                                     |                            | - |   | - |   | - |   | - |
| Shares      issued in connection with the acquisition of net assets of Rotoblock Inc.      (Note 1)                                                 |                         | 15,000,000   |                            | 15,000   |                                            | (15,000)                                              |                            | - |   | - |   | - |   | - |
| Excess      of consideration over net assets purchased from Rotoblock Inc. (Note      1)                                                            |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (138) |   | (138) |
| Foreign      currency translation adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (1,918) |   | - |   | (1,918) |
| Net loss for the      period                                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (108,443) |   | (108,443) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2004 (Unaudited)                                                                                                           |                         | 15,000,000   |                            | 15,000   |                                            | 23,664                                                |                            | - |   | (1,918) |   | (108,581) |   | (71,835) |
| Shares issued for cash ($0.05      per share)                                                                                                       |                         | 10,000,000   |                            | 10,000   |                                            | 490,000                                               |                            | - |   | - |   | - |   | 500,000 |
| Foreign currency translation      adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (1,385) |   | - |   | (1,385) |
| Net loss for the      year                                                                                                                          |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (306,193) |   | (306,193) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2005 (Unaudited)                                                                                                           |                         | 25,000,000   |                            | 25,000   |                                            | 513,664                                               |                            | - |   | (3,303) |   | (414,774) |   | 120,587 |
| Shares issued for cash ($0.26      per share) (Note 11)                                                                                             |                         | 548,160      |                            | 548      |                                            | 142,893                                               |                            | - |   | - |   | - |   | 143,441 |
| Shares issued for services      rendered ($0.31 per share) (Note 11)                                                                                |                         | 2,418,130    |                            | 2,418    |                                            | 751,459                                               |                            | - |   | - |   | - |   | 753,877 |
| Shares      issued for inventory ($0.29 per share) (Note 11)                                                                                        |                         | 611,048      |                            | 611      |                                            | 176,593                                               |                            | - |   | - |   | - |   | 177,204 |
| Warrants      exercised ($0.25 per share) (Note 11)                                                                                                 |                         | 40,000       |                            | 40       |                                            | 9,960                                                 |                            | - |   | - |   | - |   | 10,000 |
| Stock-based      compensation                                                                                                                       |                         | -            |                            | -        |                                            | 1,901,177                                             |                            | - |   | - |   | - |   | 1,901,177 |
| Foreign      currency translation adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (950) |   | - |   | (950) |
| Net loss for the      year                                                                                                                          |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (2,767,259) |   | (2,767,259) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2006                                                                                                                       |                         | 28,617,338   |                            | 28,617   |                                            | 3,495,746                                             |                            | - |   | (4,253) |   | (3,182,033) |   | 338,077 |
| Shares issued for cash ($0.21      per share) (Note 11)                                                                                             |                         | 114,286      |                            | 114      |                                            | 23,886                                                |                            | - |   | - |   | - |   | 24,000 |
| Shares issued for services      rendered (Note 11)                                                                                                  |                         | 1,709,262    |                            | 1,709    |                                            | 190,356                                               |                            | - |   | - |   | - |   | 192,065 |
| Contribution      to capital by related parties – services (Notes 10 and 11)                                                                  |                         | -            |                            | -        |                                            | 100,000                                               |                            | - |   | - |   | - |   | 100,000 |
| Stock-based      compensation (Note 11)                                                                                                             |                         | -            |                            | -        |                                            | 414,711                                               |                            | - |   | - |   | - |   | 414,711 |
| Foreign      currency translation adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (5) |   | - |   | (5) |
| Net loss for the      year                                                                                                                          |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (863,582) |   | (863,582) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2007                                                                                                                       |                         | 30,440,886   |                            | 30,440   |                                            | 4,224,699                                             |                            | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |

----

|                                                                               | Number      of shares issued | Capital      stock | Additional      paid-in capital | Warrants | Accumulated      comprehensive loss | Deficit      accumulated during the development stage | Stockholders’      equity |
|------------------------------------------------------------------------------------|------------------------------|--------------------|---------------------------------|----------|-------------------------------------|-------------------------------------------------------|---------------------------------|
|                                                                               |                         |               | $                               | $        |                                |                                                  |                            |
|                                                                               |                         |               |                            |     |                                |                                                  |                            |
|                                                                               |                         |               |                            |     | $                                   | $                                                     | $                               |
|                                                                               |                         |               |                            |     |                                |                                                  |                            |
| Balance      at 30 April 2007                                                      | 30,440,886                   | 30,440             | 4,224,699                       | -        | (4,258)                             | (4,045,615)                                           | 205,266                         |
| Shares      issued for cash ($0.07 per share) (Note 11)                            | 2,580,000                    | 2,580              | 171,781                         |     | -                                   | -                                                     | 174,361                         |
|                                                                               |                         |               |                            | -        |                                |                                                  |                            |
|     Warrants      granted                                      | -                            | -                  | -                               | 53,639   |                                |                                                  | 53,639                          |
| Shares      issued for services rendered (Notes 11 and 14)                         | 3,175,556                    | 3,176              | 173,334                         |     | -                                   | -                                                     | 176,510                         |
|                                                                               |                         |               |                            | -        |                                |                                                  |                            |
| Contribution      to capital by related parties – services (Notes 10 and 14) | -                            | -                  | 100,000                         |     | -                                   | -                                                     | 100,000                         |
|                                                                               |                         |               |                            | -        |                                |                                                  |                            |
| Stock-based      compensation (Note 11)                                            | -                            | -                  | -                               | 60,664   | -                                   | -                                                     | 60,664                          |
| Foreign      currency translation adjustment                                       | -                            | -                  | -                               |     | (10)                                | -                                                     | (10)                            |
|                                                                               |                         |               |                            | -        |                                |                                                  |                            |
| Net      loss for the year                                                         | -                            | -                  | -                               | -        | -                                   | (576,091)                                             | (576,091)                       |
|                                                                               |                         |               |                            |     |                                |                                                  |                            |
| Balance      at 30 April 2008                                                      | 36,196,442                   | 36,196             | 4,669,814                       | 114,303  | (4,268)                             | (4,621,706)                                           | 194,339                         |
| Shares      issued for cash ($0.04 per share) (Note 11)                            | 166,667                      | 167                | 6,308                           |     | -                                   | -                                                     | 6,475                           |
|                                                                               |                         |               |                            | -        |                                |                                                  |                            |
| Warrants      granted                                                              | -                            | -                  | -                               | 18,525   |                                |                                                  | 18,525                          |
| Shares      issued for services rendered (Notes 11 and 14)                         | 1,670,000                    | 1,670              | 227,330                         |     | -                                   | -                                                     | 229,000                         |
|                                                                               |                         |               |                            | -        |                                |                                                  |                            |
| Contribution      to capital by related parties – services (Notes 10 and 14) | -                            | -                  | 25,000                          |     | -                                   | -                                                     | 25,000                          |
|                                                                               |                         |               |                            | -        |                                |                                                  |                            |
| Stock-based      compensation (Note 11)                                            | -                            | -                  | -                               |     | -                                   | -                                                     | 147,446                         |
|                                                                               |                         |               |                            | 147,446  |                                |                                                  |                            |
| Foreign      currency translation adjustment                                       | -                            | -                  | -                               |     | 4                                   | -                                                     | 4                               |
|                                                                               |                         |               |                            | -        |                                |                                                  |                            |
| Net      loss for the period                                                       | -                            | -                  | -                               | -        | -                                   | (390,719)                                             | (390,719)                       |
|                                                                               |                         |               |                            |     |                                |                                                  |                            |
| Balance      at 31 July 2008                                                       | 38,033,109                   | 38,033             | 4,928,452                       | 280,274  | (4,264)                             | (5,012,425)                                           | 230,070                         |

----

|                                              |   |   | For      the period from the date of inception on 2 September 2003 to31      July 2008(Unaudited) | For      the threemonth      period ended31      July 2008 | For      the threemonth      period ended31      July2007 |
|---------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------|
|                                              |   |   |                                                                                              |                                                            |                                                      | $ |   | $ |   | $ |
|                                              |   |   |                                                                                              |                                                            |                                                      |   |   |   |   |   |
| Consulting      fees (Notes 10, 13 and 14)        |   |   |                                                                                              |                                                            |                                                      | 785,649 |   | 117,877 |   | 24,197 |
| Depreciation                                      |   |   |                                                                                              |                                                            |                                                      | 4,066 |   | 98 |   | - |
| Foreign      exchange loss                        |   |   |                                                                                              |                                                            |                                                      | 1,545 |   | - |   | - |
| Interest                                          |   |   |                                                                                              |                                                            |                                                      | 16,492 |   | 34 |   | 133 |
| Investor      relations                           |   |   |                                                                                              |                                                            |                                                      | 173,862 |   | 29,984 |   | - |
| Listing,      filing and transfer agent fees      |   |   |                                                                                              |                                                            |                                                      | 40,143 |   | 3,695 |   | - |
| Management      fees (Notes 10 and 14)            |   |   |                                                                                              |                                                            |                                                      | 225,000 |   | 25,000 |   | 25,000 |
| Office      and sundry                            |   |   |                                                                                              |                                                            |                                                      | 53,043 |   | 4,231 |   | 227 |
| Professional      fees                            |   |   |                                                                                              |                                                            |                                                      | 350,873 |   | 20,535 |   | 16,077 |
| Public      relations and shareholder information |   |   |                                                                                              |                                                            |                                                      | 166,815 |   | 22,411 |   | - |
| Rent                                              |   |   |                                                                                              |                                                            |                                                      | 79,205 |   | - |   | - |
| Research      and development                     |   |   |                                                                                              |                                                            |                                                      | 314,256 |   | - |   | - |
| Stock-based      compensation                     |   |   |                                                                                              |                                                            |                                                      | 2,523,998 |   | 147,446 |   | - |
| Travel      and entertainment                     |   |   |                                                                                              |                                                            |                                                      | 105,266 |   | 19,408 |   | - |
|                                              |   |   |                                                                                              |                                                            |                                                      |   |   |   |   |   |
|                                              |   |   |                                                                                              |                                                            |                                                      | 4,840,213 |   | 390,719 |   | 65,634 |

----

| 1.   | Nature and Continuance of      Operations |
|----------------|-------------------------------------------|

| 2.   | Significant      Accounting Policies |
|----------------|--------------------------------------|

Basis of presentation

----

|   | Equipment      and depreciation |
|--------|---------------------------------|

----

----

| 3.   | Patents |
|----------------|---------|

|                                                                     |   | Balance      at31      July 2008 |   | Balance      at30      April 2008 |
|--------------------------------------------------------------------------|--------|----------------------------------|--------|-----------------------------------|
|                                                                     |   | $                                |   | (Audited)      $                  |
|                                                                     |   |                             |   |                              |
|              Patent costs to date     |   | 108,745                          |   | 108,745                           |
|              Accumulated depreciation |   | -                                |   | -                                 |
|                                                                     |   |                             |   |                              |
|                                                                     |   | 108,745                          |   | 108,745                           |

----

| 4.   | Property      and Equipment |
|----------------|-----------------------------|

|                                                      |   | Cost   |   | Accumulated      amortization |   | Net      Book Valueas      at 31 July 2008 |
|-----------------------------------------------------------|--------|--------|--------|-------------------------------|--------|--------------------------------------------|
|                                                      |   | $      |   | $                             |   | $                                          |
|              Equipment |   | 2,940  |   | 98                            |   | 2,842                                      |
|                                                      |   |   |   |                          |   |                                       |
|                                                      |   | 2,940  |   | 98                            |   | 2,842                                      |

| 5.   | Accounts Payable and Accrued      Liabilities |
|----------------|-----------------------------------------------|

| 6.   | Interest      Payable |
|----------------|-----------------------|

| 7.   | Convertible Promissory  Note |
|----------------|------------------------------|

| 8.   | Joint      Venture Agreement |
|----------------|------------------------------|

----

| 9.   | Due      to Related Party |
|----------------|---------------------------|

| 10.   | Related      Party Transactions |
|-----------------|---------------------------------|

| 11.   | Capital      Stock |
|-----------------|--------------------|

| i.   | During      the year ended 30 April 2004, the Company issued 15,000,000 common shares      pursuant to the acquisition of the net assets of Rotoblock Inc. (Note      1).  Theses shares are restricted from trading as defined in      Rule 144 of the United States Securities Act of  1933. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | During      the year ended 30 April 2005, the Company issued 10,000,000 units at a      price of $0.05 per unit.  Each unit consists of one common share      and one-half common share purchase warrant.  Each whole common      share purchase warrant entitles the holder to purchase an additional      common share at a price of $0.50 per share for a period of two years from      the date of offering.  As at 31 July 2008, none of the share      purchase warrants in this series remain  outstanding. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | During      the year ended 30 April 2006, the Company issued 548,160 common shares      valued at prices in the range of $0.14 and $0.36 per share for total cash      proceeds of $143,411. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | During      the year ended 30 April 2006, the Company issued 40,000 common shares at a      price of $0.25 per share upon the exercise of previously outstanding share      purchase warrants.  As at 31 July 2008, 2,960,000 share purchase      warrants in this series remainoutstanding. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | During      the year ended 30 April 2006, the Company issued 611,048 common shares      valued at a price of $0.29 per share for the acquisition of      inventory. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | During      the year ended 30 April 2006, the Company issued 2,418,130 common shares      for services valued at $753,877. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| vii.   | During      the year ended 30 April 2007, the Company issued 114,286 restricted common      shares at a price of $0.21 per share.  These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| viii.   | During      the year ended 30 April 2007, the Company issued 24,513 common shares at a      price of $0.19 per share for consulting  services. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ix.   | During      the year ended 30 April 2007, the Company issued 150,000 common shares at      a price of $0.19 per share for marketing  services. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| x.   | During      the year ended 30 April 2007, the Company issued 33,333 common shares for      legal services valued at $5,000.  Of this amount, $350 was      expensed during the period ended 31 July 2008 (30 April 2008 – $1,140;      Cumulative – $4,482) and the remaining $518 was classified as prepaid      expense which will be expensed as the services are received in subsequent      periods. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xi.   | During      the year ended 30 April 2007, the Company issued 57,820 common shares      valued at $5,782 for consultingservices. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| xii. | During      the year ended 30 April 2007, the Company issued 69,000 common shares      valued at $6,210 for consultingservices. |
|------|---------------------------------------------------------------------------------------------------------------------------------|

----

| xiii.   | During      the year ended 30 April 2007, the Company issued 75,000 common shares at a      price of $0.10 per share for consulting services.  These shares      are restricted from trading for a period of one year as defined by Rule      144 of the United States Securities Act of1933. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiv.   | During      the year ended 30 April 2007, the Company issued 800,000 common shares at      a price of $0.12 per share for public relations services.  These      shares are restricted from trading for a period of one year as defined by      Rule 144 of the United States Securities Act of  1933. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xv.   | During      the year ended 30 April 2007, the Company issued 192,363 common shares      valued at $15,389 for rent. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| xvi.   | During      the year ended 30 April 2007, the Company issued 135,850 common shares      valued at $10,868 for consultingservices. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| xvii.   | During      the year ended 30 April 2007, the Company issued 93,750 common shares      valued at $7,500 for public relations.  These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xviii.   | During      the year ended 30 April 2007, the Company issued 77,633 common shares      valued at $4,658 for consultingservices. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| xix.   | During      the year ended 30 April 2007, the Company issued 2,500,000 share purchase      warrants to officer and directors of the Company with fair value of      $219,824. Each share purchase warrant entitles the holder to purchase an      additional common share at a price of $0.15 up to 7 December      2011. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xx.   | During      the year ended 30 April 2008, the Company issued 1,580,000 private      placement restricted common shares at a price of $0.05 per share for total      cash proceeds of $78,000.  These shares are restricted from      trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxi.   | During      the year ended 30 April 2008, the Company issued 200,000 common shares      valued at $0.02 per share for consulting  services. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| xxii.   | During      the year ended 30 April 2008, the Company issued 1,000,000 common shares      valued at $0.05 per share for consulting services.  Of this      amount, $12,569 was expensed during the period (30 April 2008 – $25,546,      cumulative – $38,115), and the remaining $11,885 was classified as prepaid      expense which will be expensed as the consulting services are received in      subsequent periods. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxiii.   | During      the year ended 30 April 2008, the Company issued 300,000 common shares      valued at $0.05 per share for public relations services.  These      shares are restricted from trading for a period of one year as defined by      Rule 144 of the United States Securities Act of 1933. Of this amount,      $15,000 was expensed during the prioryear. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|              |                                                                                                                                                     |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| xxiv.   | During      the year ended 30 April 2008, the Company issued 200,000 common shares      valued at $0.02 per share for $4,000 for consulting    services. |

| xxv.   | During      the year ended 30 April 2008, the Company issued 380,000 share purchase      warrants with a fair value of $5,383.  Each share purchase      warrant entitles the holder to purchase an additional common share at a      price of $0.25 up to 6 September2012. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxvi.   | During      the year ended 30 April 2008, the Company issued 128,538 common shares      valued at $0.13 per share for $16,710 for consulting      services.  Of this amount, $643 was expensed during the period      (30 April 2008 – $16,067, cumulative –$16,710). |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxvii.   | During      the year ended 30 April 2008, the Company issued 84,211 common shares      valued at $0.09 per share for $8,000 for consulting    services. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxviii.   | During      the year ended 30 April 2008, the Company issued 29,474 common shares      valued at $0.09 per share for $2,800 for consulting      services.  Of this amount, $108 was expensed during the period      (30 April 2008 – $2,692, cumulative –$2,800). |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxix.   | During      the year ended 30 April 2008, the Company issued 666,666 units at a price      of $0.15 per unit for total cash proceeds of $100,000.  Each      unit consists of one restricted common share and one-half common share      purchase warrant.  Each whole common share purchase warrant      entitles the holder to purchase an additional common share at a price of      $0.25 per share for a period of five years from the date of offering with      a fair value of $25,793.  As at 30 April 2008, 333,334 of the      share purchase warrants in this series remain outstanding. These shares      are restricted from trading for a period of one year as defined by Rule      144 of the United States Securities Act of1933. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxx.   | During      the year ended 30 April 2008, the Company issued 333,334 units at a price      of $0.15 per unit for total cash proceeds of $50,000.  Each unit      consists of one restricted common share and one common share purchase      warrant.  Each whole common share purchase warrant entitles the      holder to purchase an additional common share at a price of $0.25 per      share for a period of five years from the date of offering with a fair      value of $22,463.  As at 30 April 2008, 333,334 of the share      purchase warrants in this series remain outstanding. These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxi.   | During      the year ended 30 April 2008, the Company issued 100,000 common shares      valued at $0.08 per share for $8,000 for consulting    services. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxii.   | During      the year ended 30 April 2008, the Company issued 133,333 common shares      valued at $0.06 per share for $8,000 for consulting    services. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiii.   | During      the year ended 30 April 2008, the Company issued 1,000,000 units valued at      $0.06 per unit for consulting services.  Each unit consists of      one restricted common share and one common share purchase      warrant.  Each whole common share purchase warrant entitles the      holder to purchase an additional common share at a price of $0.15 per      share for a period of five years from the date of offering with a fair      value of $60,664.  As at 30 April 2008, 1,000,000 of the share      purchase warrants in this series remain outstanding. These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| xxxiv.   | During      the three month period ended 31 July 2008, the Company issued 50,000      common shares valued at $0.08 per share for $4,000 for consulting      services.  Of this amount, $1,626 was expensed during the period      (30 April 2008 – $Nil, cumulative – $1,626), and the remaining $2,374 was      classified as prepaid expense which will be expensed as the consulting      services are received in subsequentperiods. |

| xxxv. | During      the three month period ended 31 July 2008, the Company issued 320,000      common shares valued at $0.30 per share for $96,000 in investor      relations.  Of this amount, $29,984 was expensed during the      period (30 April 2008 – $Nil, cumulative – $29,984), and the remaining      $66,016 was classified as prepaid expense which will be expensed as the      investor relations services are received in subsequent      periods.  These shares are restricted from trading for a period      of one year as defined by Rule 144 of the United States Securities Act of      1933. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| xxxvii.   | During      the three month period ended 31 July 2008, the Company issued 50,000      common shares valued at $0.15 per share for $7,500 in public      relations.  Of this amount, $4,863 was expensed during the      period (30 April 2008 – $Nil, cumulative – $2,637), and the remaining      $2,637 was classified as prepaid expense which will be expensed as the      public relations services are received in subsequent      periods.  These shares are restricted from trading for a period      of one year as defined by Rule 144 of the United States Securities Act of      1933. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxviii.   | During      the three month period ended 31 July 2008, the Company issued 133,333      common shares valued at $0.15 per share for $20,000 in consulting services      to a related party (Note 13). |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxix.   | During      the three month period ended 31 July 2008, the Company issued 250,000      common shares valued at $0.11 per share for $27,500 in bonus to a related      party.  These shares are restricted from trading for a period of      one year as defined by Rule 144 of the United States Securities Act of      1933. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxx.   | During      the three month period ended 31 July 2008, the Company issued 166,667      units valued at $0.15 per unit for total cash proceeds of      $25,000.  Each unit consists of one restricted common share and      one common share purchase warrant.  Each warrant entitles the      holder to purchase one additional common share of the Company at a cost of      $0.25 expiring 3 July 2013 with a fair value of $18,525.  As at      31 July 2008, 166,667 of the share purchase warrants in this series remain      outstanding. These shares are restricted from trading for a period of one      year as defined by Rule 144 of the United States Securities Act of      1933. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     Date      issued       |   | Numberof      shares |   | Value   |   | Priceper      share                | Service                 |
|------------------------------------------------|--------|----------------------|--------|---------|--------|------------------------------------|-------------------------|
|                                           |   |                 |   | $       |   | $                                  |                    |
|     24      August 2005    |   | 250,000              |   | 95,000  |   | 0.38                               | Consulting*             |
|     24      August 2005    |   | 25,000               |   | 9,500   |   | 0.38                               | Computer      and IT    |
|     24      August 2005    |   | 50,000               |   | 19,000  |   | 0.38                               | Public      relations   |
|     24      August 2005    |   | 25,000               |   | 9,500   |   | 0.38                               | Investor      relations |
|     24      August 2005    |   | 300,000              |   | 114,000 |   | 0.38                               | Legal                   |
|     24      August 2005    |   | 250,000              |   | 95,000  |   | 0.38                               | Consulting*             |
|     24      August 2005    |   | 25,000               |   | 9,500   |   | 0.38                               | Accounting              |
|     28      September 2005 |   | 104,171              |   | 29,168  |   | 0.28                               | Investor      relations |
|     29      September 2005 |   | 100,000              |   | 25,000  |   | 0.25                               | Consulting              |
|     29      September 2005 |   | 150,000              |   | 37,500  |   | 0.25                               | Consulting*             |
|     27      October 2005   |   | 327,586              |   | 95,000  |   | 0.29                               | Investor      relations |
|     28      October 2005   |   | 99,360               |   | 24,840  |   | 0.25                               | Rent                    |
|     1      November 2005   |   | 50,000               |   | 14,000  |   | 0.28                               | Public      relations   |
|     1      November 2005   |   | 125,000              |   | 35,000  |   | 0.28                               | Consulting              |
|     2      November 2005   |   | 80,000               |   | 23,200  |   | 0.29                               | Consulting              |
|     14      November 2005  |   | 100,000              |   | 50,000  |   | 0.50                               | Printing                |
|     12      January 2006   |   | 250,000              |   | 37,500  |   | 0.15                               | Consulting              |
|     12      January 2006   |   | 16,667               |   | 2,500   |   | 0.15                               | Legal                   |
|     25      January 2006   |   | 68,287               |   | 21,169  |   | 0.31                               | Commission      bonus   |
|     7      February 2006   |   | 22,059               |   | 7,500   |   | 0.34                               | Consulting              |
|     30 June      2006      |   | 24,513               |   | 4,658   |   | 0.19                               | Consulting              |
|     3 July      2006       |   | 150,000              |   | 28,500  |   | 0.19                               | Investor      relations |
|     10      August 2006    |   | 33,333               |   | 5,000   |   | 0.15                               | Legal                   |
|     3      October 2006    |   | 57,820               |   | 5,782   |   | 0.10                               | Consulting              |
|     20      October 2006   |   | 69,000               |   | 6,210   |   | 0.09                               | Consulting              |
|     10      November 2006  |   | 75,000               |   | 7,500   |   | 0.10                               | Public      relations   |
|     29      November 2006  |   | 800,000              |   | 96,000  |   | 0.12                               | Public      relations   |
|     22      December 2006  |   | 192,363              |   | 15,389  |   | 0.08                               | Rent                    |
|     2      January 2007    |   | 135,850              |   | 10,868  |   | 0.08                               | Consulting              |
|     7      February 2007   |   | 93,750               |   | 7,500   |   | 0.08                               | Public      relations   |
|     3 April      2007      |   | 77,633               |   | 4,658   |   | 0.06                               | Consulting              |
|     29      October 2007   |   | 400,000              |   | 8,000   |   |      0.02 | Consulting*             |
|     Subtotal               |   | 4,527,392            |   | 953,942 |   |                               |                    |

----

|     Date      issued      |   | Numberof      shares |   | Value     |   | Priceper      share | Service                 |
|-----------------------------------------------|--------|----------------------|--------|-----------|--------|---------------------|-------------------------|
|                                          |   |                 |   |      |   |                |                    |
|     30      October 2007  |   | 1,000,000            |   | 50,000    |   | 0.05                | Consulting              |
|     30      October 2007  |   | 300,000              |   | 15,000    |   | 0.05                | Public      relations   |
|     9      November 2007  |   | 128,538              |   | 16,710    |   | 0.13                | Consulting              |
|     10      December 2007 |   | 84,211               |   | 8,000     |   | 0.09                | Consulting*             |
|     11      December 2007 |   | 29,474               |   | 2,800     |   | 0.09                | Consulting              |
|     7      February 2008  |   | 100,000              |   | 8,000     |   | 0.08                | Consulting*             |
|     1 April      2008     |   | 133,333              |   | 8,000     |   | 0.06                | Consulting*             |
|     1 April      2008     |   | 1,000,000            |   | 60,000    |   | 0.06                | Consulting*             |
|     20 May      2008      |   | 50,000               |   | 4,000     |   | 0.08                | Consulting              |
|     20 May      2008      |   | 320,000              |   | 96,000    |   | 0.30                | Investor      relations |
|     20 May      2008      |   | 800,000              |   | 64,000    |   | 0.08                | Consulting*             |
|     9 June      2008      |   | 66,667               |   | 10,000    |   | 0.15                | Legal                   |
|     9 June      2008      |   | 50,000               |   | 7,500     |   | 0.15                | Public      relations   |
|     9 June      2008      |   | 133,333              |   | 20,000    |   | 0.15                | Consulting*             |
|     3 July      2008      |   | 250,000              |   | 27,500    |   | 0.11                | Consulting*             |
|     Total                 |   | 8,972,948            |   | 1,351,452 |   |                |                    |

|                             |   | Exercise      price |   | Numberof      warrants |   | Remainingcontractual      life (years) |
|----------------------------------|--------|---------------------|--------|------------------------|--------|----------------------------------------|
|                             |   | $                   |   |                   |   |                                   |
|                             |   |                |   |                   |   |                                   |
|     Warrants |   | 0.25                |   | 2,960,000              |   | 2.46                                   |
|     Warrants |   | 0.15                |   | 2,500,000              |   | 3.36                                   |
|     Warrants |   | 0.25                |   | 380,000                |   | 4.10                                   |
|     Warrants |   | 0.25                |   | 333,334                |   | 4.48                                   |
|     Warrants |   | 0.15                |   | 1,000,000              |   | 4.67                                   |
|     Warrants |   | 0.25                |   | 333,334                |   | 4.69                                   |
|     Warrants |   | 0.15                |   | 800,000                |   | 4.81                                   |
|     Warrants |   | 0.25                |   | 166,667                |   | 4.93                                   |
|                             |   |                |   |                   |   |                                   |
|                             |   |                |   | 8,473,335              |   |                                   |

----

|                                                                                                                   |   | Number      of warrants |   | Weighted      average exercise price |
|------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                                                                   |   |                    |   | $                                    |
|                                                                                                                   |   |                    |   |                                 |
|     Outstanding and      exercisable at 30 April 2007                                              |   | 11,962,160              |   | 0.45                                 |
|                                                                                                                   |   |                    |   |                                 |
|     Granted                                                                                        |   | 2,046,668               |   | 0.20                                 |
|     Exercised                                                                                      |   | -                       |   | -                                    |
|     Expired                                                                                        |   | (6,502,160)             |   | 0.50                                 |
|                                                                                                                   |   |                    |   |                                 |
|     Outstanding and      exercisable at 30 April 2008                                              |   | 7,506,668               |   | 0.34                                 |
|                                                                                                                   |   |                    |   |                                 |
|     Weighted      average fair value of warrants granted during the year ended 30 April      2008  |   |                    |   | 0.06                                 |
|                                                                                                                   |   |                    |   |                                 |
|     Outstanding and      exercisable at 30 April 2008                                              |   | 7,506,668               |   | 0.34                                 |
|                                                                                                                   |   |                    |   |                                 |
|     Granted                                                                                        |   | 966,667                 |   | 0.17                                 |
|     Exercised                                                                                      |   | -                       |   | -                                    |
|     Expired                                                                                        |   | -                       |   | -                                    |
|                                                                                                                   |   |                    |   |                                 |
|     Outstanding and      exercisable at 31 July 2008                                               |   | 8,473,335               |   | 0.32                                 |
|                                                                                                                   |   |                    |   |                                 |
|     Weighted      average fair value of warrants granted during the period ended 31 July      2008 |   |                    |   | 0.17                                 |

|                                                 |   |   |   | As      at31      July 2008 |   | As      at30      April 2008 |
|------------------------------------------------------|--------|--------|--------|----------------------------------|--------|-----------------------------------|
|                                                 |   |   |   |                             |   |                              |
|     Risk      free interest rate |   |   |   | 3.02      % - 3.28%              |   | 2.65      % - 3.72%               |
|     Expected      life           |   |   |   | 5.0      years                   |   | 5.0      years                    |
|     Annualized      volatility   |   |   |   | 146%      - 148%                 |   | 119%      - 150%                  |
|     Expected      dividends      |   |   |   | -                                |   | -                                 |

| 12.   | Income      Taxes |
|-----------------|-------------------|

|                                                                                    |   | For      the three month period ended 31      July 2008 |   | For      the three month period ended 31      July2007 |
|-----------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|------------------------------------------------------------------|
|                                                                                    |   | $                                                                      |   | $                                                                |
|                                                                                    |   |                                                                   |   |                                                             |
|     Deferred tax      asset attributable to:                        |   |                                                                   |   |                                                             |
|     Current      operations                                         |   | 132,845                                                                |   | 22,316                                                           |
|     Contributions      to capital by related party – expenses |   | (8,500)                                                                |   | (8,500)                                                          |
|     Stock-based      compensation                                   |   | (50,132)                                                               |   | -                                                                |
|     Less:      Change in valuation allowance                        |   | (74,213)                                                               |   | (13,816)                                                         |
|                                                                                    |   |                                                                   |   |                                                             |
|     Net      refundable amount                                      |   | -                                                                      |   | -                                                                |

----

|                                                           |   | As      at31      July 2008 |   | As      at30      April 2008 |
|----------------------------------------------------------------|--------|----------------------------------|--------|------------------------------|
|                                                           |   |                             |   |  (Audited)              |
|                                                           |   | $                                |   | $                            |
|                                                           |   |                             |   |                         |
|     Net      operating loss carry forward  |   | 2,263,427                        |   | 2,045,154                    |
|                                                           |   |                             |   |                         |
|     Statutory      federal income tax rate |   | 34%                              |   | 34%                          |
|     Effective      income tax rate         |   | 0%                               |   | 0%                           |
|                                                           |   |                             |   |                         |
|     Deferred tax      asset                |   | 769,565                          |   | 695,352                      |
|     Less:      Valuation allowance         |   | (769,565)                        |   | (695,352)                    |
|                                                           |   |                             |   |                         |
|     Net      deferred tax asset            |   | -                                |   | -                            |

| i.   | On      30 March 2004, the Company entered into a loan agreement, as amended, for      $500,000, of which $350,000 was received by 30 November      2004.  During the 2006 fiscal year, the principal portion of the      loan was paid out in full.  The loan was secured by all the      assets of the Company, bore interest at 5% per annum and was payable on      demand.  Accrued interest on the loan has been calculated at      $11,705; however, this amount has not yet been paid to the      lender. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | On      30 April 2007, the Company entered into a convertible promissory note      agreement for $10,000 cash.  The note is non-interest bearing,      unsecured and repayable in cash or 100,000 shares by 13 November 2008      (Notes 7 and 16). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | On      15 November 2007,      the Company filed its intention to register 5,000,000 common shares      of the Company to be covered under S8 Registration for future issuances to      any and all consultants, employees, attorneys, officers and directors of      the Company at a proposed maximum offering price of $0.09 per common share      (Note 14). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|            |                                                                                                                                                                       |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| iv.   | The      Company has an obligation to issue 26,667 common shares valued at $0.15      per share for $4,000 in consulting services to a related party (Note      11.xxxix). |

|                                                                    |   | For      the period from the date of inception on 2 September 2003 to31      July2008(Unaudited) |   |      For      the threemonth      period  ended31      July 2008 |   |      For      the threemonth      period ended31      July 2007 |
|-------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|
|                                                                    |   | $                                                                                                |   | $                                                                                                        |   | $                                                                                             |
|                                                                    |   |                                                                                             |   |                                                                                                     |   |                                                                                          |
|     Cash      paid during the year for interest     |   | 11,362                                                                                           |   | -                                                                                                        |   | -                                                                                             |
|     Cash      paid during the year for income taxes |   | -                                                                                                |   | -                                                                                                        |   | -                                                                                             |

|   | The      Company was named a defendant in a lawsuit versus a former consultant for      a breach of contract. On 3 June 2008, the lawsuit was resolved with no      financial damages to the company. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

Item 1A. RiskFactors 

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|   | During      the three month period ended July 31, 2008, we issued 50,000 shares of      common stock, valued at $0.08 per share, in exchange for      $4,000 in consulting services.  These shares are restricted      from trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | During      the three month period ended July 31, 2008, we issued 320,000 shares of      common stock, valued at $0.30 per share, in exchange for $96,000      in investor relations services.  These shares are restricted      from trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | During      the three month period ended July 31, 2008, we issued 800,000 common      stock units, valued at $0.08 per unit, in exchange for $64,000 as      compensation to our chief executive officer of the      company.  Each unit consists of one restricted share of common      stock and one common stock purchase warrant.  Each common stock      purchase warrant entitles the holder to purchase one additional share      of common stock at a cost of $0.15, expiring May 12,      2013.  As of July 31, 2008, 800,000 of the common      stock purchase warrants remain outstanding. These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | During      the three month period ended July 1, 2008, we issued 66,667 shares of      common stock, valued at $0.15 per share, in exchange for a      $10,000 legal retainer.  These shares are restricted from      trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During      the three month period ended July 31, 2008, we issued 50,000 shares of      common stock, valued at $0.15 per share, in exchange for $7,500      in public relations services.  These shares are restricted from      trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During      the three month period ended July 31, 2008, we issued 133,333 shares      of common stock, valued at $0.15 per share, in exchange for $20,000 in      consulting services to a related party. These shares are restricted from      trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | During      the three month period ended  July 31, 2008, we issued 250,000 shares      of common stock, valued at $0.11 per share, in exchange for      $27,500 in a bonus to a related party.  These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | During      the three month period ended  July 31, we issued 166,667 common      stock units, valued at $0.15 per unit, for total cash proceeds of      $25,000.  Each unit consists of one share of restricted common      stock and one common stock purchase warrant.  Each      warrant entitles the holder to purchase one additional share of our common      stock at a cost of $0.25 per share, expiring July 3,      2013.  At July 31, 2008, 166,667 of the common stock      purchase warrants remain outstanding. These shares are restricted from      trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|--|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date      issued |   | Numberof      shares |   | Value      $ |   | Priceper      share $ | Service      Rendered   |
|------------------|--------|----------------------|--------|--------------|--------|-----------------------|-------------------------|
| 20      May 2008 |   | 50,000               |   | 4,000        |   | 0.08                  | Consulting              |
| 20      May 2008 |   | 320,000              |   | 96,000       |   | 0.30                  | Investor      relations |
| 20      May 2008 |   | 800,000              |   | 64,000       |   | 0.08                  | Consulting              |
| 9      June 2008 |   | 66,667               |   | 10,000       |   | 0.15                  | Legal                   |
| 9      June 2008 |   | 50,000               |   | 7,500        |   | 0.15                  | Public      relations   |
| 9      June 2008 |   | 133,333              |   | 20,000       |   | 0.15                  | Consulting              |
| 3      July 2008 |   | 250,000              |   | 27,500       |   | 0.11                  | Consulting              |

|     |   | Exercise      price |   | Numberof      warrants |   | Remainingcontractual      life (years) |
|----------|--------|---------------------|--------|------------------------|--------|----------------------------------------|
|     |   | $                   |   |                   |   |                                   |
|     |   |                |   |                   |   |                                   |
| Warrants |   | 0.25                |   | 2,960,000              |   | 2.46                                   |
| Warrants |   | 0.15                |   | 2,500,000              |   | 3.36                                   |
| Warrants |   | 0.25                |   | 380,000                |   | 4.10                                   |
| Warrants |   | 0.25                |   | 333,334                |   | 4.48                                   |
| Warrants |   | 0.15                |   | 1,000,000              |   | 4.67                                   |
| Warrants |   | 0.25                |   | 333,334                |   | 4.69                                   |
| Warrants |   | 0.15                |   | 800,000                |   | 4.81                                   |
| Warrants |   | 0.25                |   | 166,667                |   | 4.93                                   |
|     |   |                |   |                   |   |                                   |
|     |   |                |   | 8,473,335              |   |                                   |

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