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|          |                                                                                            | Page   |
|---------------|-------------------------------------------------------------------------------------------------|--------|
|          | PART      I - FINANCIAL INFORMATION                                                             |   |
|          |                                                                                            |   |
| ITEM      1.  | Consolidated      Financial Statements                                                          | 3      |
|          |                                                                                            |   |
| ITEM      2.  | Management's      Discussion and Analysis of Financial Condition and Results of      Operations | 28     |
|          |                                                                                            |   |
| ITEM      3.  | Quantitative      and Qualitative Disclosures About Market Risk                                 | 29     |
|          |                                                                                            |   |
| ITEM      4T. | Controls      and Procedures                                                                    | 30     |
|          |                                                                                            |   |
|          | PART      II - OTHER INFORMATION                                                                |   |
|          |                                                                                            |   |
| ITEM      1.  | Legal      Proceedings                                                                          | 30     |
|          |                                                                                            |   |
| ITEM      1A. | Risk      Factors                                                                               | 30     |
|          |                                                                                            |   |
| ITEM      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                | 31     |
|          |                                                                                            |   |
| ITEM      3.  | Defaults      Upon Senior Securities                                                            | 32     |
|          |                                                                                            |   |
| ITEM      4.  | Submission      of Matters to a Vote of Security Holders                                        | 32     |
|          |                                                                                            |   |
| ITEM      5.  | Other      Information                                                                          | 32     |
|          |                                                                                            |   |
| ITEM      6.  |  Exhibits                                                                                  | 33     |

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|                                                                        |   | As      at31      October 2009 |   |  As      at30      April2009(Audited) |
|-----------------------------------------------------------------------------|--------|-------------------------------------|--------|--------------------------------------------|
|                                                                        |   | $                                   |   | $                                          |
| Assets                                                                      |   |                                |   |                                       |
|                                                                        |   |                                |   |                                       |
| Current                                                                     |   |                                |   |                                       |
| Cash      and cash equivalents                                              |   | 20,314                              |   | 4,786                                      |
| Accounts      receivable                                                    |   | 207                                 |   | 183                                        |
| Prepaid      expenses (Note 10)                                             |   | 25,844                              |   | 78,345                                     |
|                                                                        |   |                                |   |                                       |
|                                                                        |   | 46,365                              |   | 83,314                                     |
|                                                                        |   |                                |   |                                       |
| Patents (Note      3)                                                       |   | 108,745                             |   | 108,745                                    |
|                                                                        |   |                                |   |                                       |
| Property and equipment      (Note 4)                                        |   | 2,160                               |   | 251,526                                    |
|                                                                        |   |                                |   |                                       |
|                                                                        |   | 157,270                             |   | 443,585                                    |
|                                                                        |   |                                |   |                                       |
| Liabilities                                                                 |   |                                |   |                                       |
|                                                                        |   |                                |   |                                       |
| Current                                                                     |   |                                |   |                                       |
| Accounts      payable and accrued liabilities (Note 5)                      |   | 165,203                             |   | 40,770                                     |
| Due      to related party (Note 8)                                          |   | 622                                 |   | 551                                        |
| Provision      for legal dispute (Note 12 ii)                               |   | 72,000                              |   | 72,000                                     |
|                                                                        |   |                                |   |                                       |
|                                                                        |   | 237,825                             |   | 113,321                                    |
|                                                                        |   |                                |   |                                       |
| Stockholders’      equity                                             |   |                                |   |                                       |
| Capital stock (Note      10)                                                |   |                                |   |                                       |
| Authorized                                                                  |   |                                |   |                                       |
| 200,000,000      common shares, par value $0.001                            |   |                                |   |                                       |
| 50,000,000      preferred shares, par value $0.001                          |   |                                |   |                                       |
| Issued      and outstanding                                                 |   |                                |   |                                       |
| 31 October      2009 – 1,237,224 common shares, par value $0.001 |   |                                |   |                                       |
| 30      April 2009 – 1,120,195 common shares, par value $0.001        |   | 1,237                               |   | 1,120                                      |
| Additional      paid-in capital                                             |   | 5,377,837                           |   | 5,465,365                                  |
| Warrants (Note      10)                                                     |   | 727,413                             |   | 280,274                                    |
| Accumulated      comprehensive loss                                         |   | (4,245)                             |   | (4,198)                                    |
| Deficit,      accumulated during the development stage                      |   | (6,182,797)                         |   | (5,412,297)                                |
|                                                                        |   |                                |   |                                       |
|                                                                        |   | (80,555)                            |   | 330,264                                    |
|                                                                        |   |                                |   |                                       |
|                                                                        |   | 157,270                             |   | 443,585                                    |

----

----

|                                                                                     |   | For      the period from the date of inception on 2 September 2003 to31      October 2009 |   | For      thethree      months ended31      October2009 |   | For      thethree      months ended31      October2008 |   | For      thesix      months ended31      October2009 |   | For      thesix      months ended31      October2008 |
|------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-----------------------------------------------------------|--------|-----------------------------------------------------------|
|                                                                                     |   | $                                                                                              |   | $                                                           |   | $                                                           |   | $                                                         |   | $                                                         |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Expenses                                                                                 |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| General      and administrative (Schedule 1)                                             |   | 5,939,969                                                                                      |   | 684,248                                                     |   | 102,320                                                     |   | 771,884                                                   |   | 493,039                                                   |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Net      loss before other items                                                         |   | (5,939,969)                                                                                    |   | (684,248)                                                   |   | (102,320)                                                   |   | (771,884)                                                 |   | (493,039)                                                 |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Other      items                                                                         |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Excess      of consideration over net assets purchased from Rotoblock Inc. (Note      1) |   | (138)                                                                                          |   | -                                                           |   | -                                                           |   | -                                                         |   | -                                                         |
| Gain      on disposal of property (Notes 4, 9 and 10)                                    |   | 1,384                                                                                          |   | -                                                           |   | -                                                           |   | 1,384                                                     |   | -                                                         |
| Provision      for legal dispute (Note 12 ii)                                            |   | (72,000)                                                                                       |   | -                                                           |   | -                                                           |   | -                                                         |   | -                                                         |
| Write-off      of property and equipment                                                 |   | (9,870)                                                                                        |   | -                                                           |   | -                                                           |   | -                                                         |   | -                                                         |
| Write-off      of related party receivable                                               |   | (162,204)                                                                                      |   | -                                                           |   | -                                                           |   | -                                                         |   | -                                                         |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Loss      for the period                                                                 |   | (6,182,797)                                                                                    |   | (684,248)                                                   |   | (102,320)                                                   |   | (770,500)                                                 |   | (493,039)                                                 |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Basic      and diluted loss per common share                                             |   |                                                                                           |   | (0.56)                                                      |   | (0.13)                                                      |   | (0.71)                                                    |   | (0.65)                                                    |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Weighted      average number of common shares used in per share    calculations          |   |                                                                                           |   | 1,220,144                                                   |   | 763,174                                                     |   | 1,088,376                                                 |   | 755,540                                                   |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Comprehensive      loss                                                                  |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Loss      for the period                                                                 |   |                                                                                           |   | (684,248)                                                   |   | (102,320)                                                   |   | (770,500)                                                 |   | (493,039)                                                 |
| Foreign      currency translation adjustment                                             |   |                                                                                           |   | (123)                                                       |   | 66                                                          |   | (47)                                                      |   | 70                                                        |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Comprehensive      loss                                                                  |   |                                                                                           |   | (684,371)                                                   |   | (102,254)                                                   |   | (770,547)                                                 |   | (492,969)                                                 |
|                                                                                     |   |                                                                                           |   |                                                        |   |                                                        |   |                                                      |   |                                                      |
| Comprehensive      loss per common share                                                 |   |                                                                                           |   | (0.56)                                                      |   | (0.13)                                                      |   | (0.71)                                                    |   | (0.65)                                                    |

----

----

|                                                                               |   | For      the period from the date of inception on 2 September 2003 to31      October 2009 |   |   For      the three months ended31      October2009 |   |   For      the three months ended31      October2008 |   |   For      the six months ended31      October2009 |   |    For      the six months ended31      October2008 |
|------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------------|
|                                                                               |   | $                                                                                              |   | $                                                                   |   | $                                                                   |   | $                                                                 |   | $                                                                       |
|                                                                               |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Cash      used in operating activities                                             |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Loss      for the period                                                           |   | (6,182,797)                                                                                    |   | (684,248)                                                           |   | (102,320)                                                           |   | (770,500)                                                         |   | (493,039)                                                               |
| Adjustments      to reconcile loss to net cash used by operating activities        |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Contributions      to capital by related party – expenses (Notes 9 and 13)   |   | 350,000                                                                                        |   | 25,000                                                              |   | 25,000                                                              |   | 50,000                                                            |   | 50,000                                                                  |
| Depreciation      (Note 4)                                                         |   | 6,132                                                                                          |   | 121                                                                 |   | 148                                                                 |   | 750                                                               |   | 246                                                                     |
| Gain      on disposal of property (Notes 4, 9 and 10)                              |   | (1,384)                                                                                        |   | -                                                                   |   | -                                                                   |   | (1,384)                                                           |   | -                                                                       |
| Non-cash      interest                                                             |   | 11,705                                                                                         |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | -                                                                       |
| Shares      issued for services (Notes 10 and 13)                                  |   | 1,527,607                                                                                      |   | 48,776                                                              |   | 43,103                                                              |   | 89,502                                                            |   | 208,744                                                                 |
| Stock-based      compensation (Notes 10 and 13)                                    |   | 2,932,726                                                                                      |   | 405,000                                                             |   | -                                                                   |   | 408,728                                                           |   | 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                                    |   | (207)                                                                                          |   | (3)                                                                 |   | 34                                                                  |   | (24)                                                              |   | 36                                                                      |
| Increase      (decrease) in accounts payable and accrued liabilities (Note      5) |   | 153,500                                                                                        |   | 124,753                                                             |   | (18,275)                                                            |   | 124,433                                                           |   | (181)                                                                   |
| Increase      in provision for legal dispute (Note 12 ii)                          | 72,000 |                                                                                           | -      |                                                                | -      |                                                                | -      |                                                              | -      |
|                                                                               |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
|                                                                               |   | (943,644)                                                                                      |   | (80,601)                                                            |   | (52,310)                                                            |   | (98,495)                                                          |   | (86,748)                                                                |
| Cash      flows used in investing activities                                       |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Purchase      of equipment (Note 4)                                                |   | (16,778)                                                                                       |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | (2,940)                                                                 |
| Purchase      of patents (Note 3)                                                  |   | (108,745)                                                                                      |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | -                                                                       |
|                                                                               |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
|                                                                               |   | (125,523)                                                                                      |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | (2,940)                                                                 |
| Cash      flows from (used in) financing activities                                |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Common      shares issued for cash (Note 10)                                       |   | 1,000,941                                                                                      |   | 100,000                                                             |   | -                                                                   |   | 114,000                                                           |   | 6,475                                                                   |
| Warrants      granted for cash (Note 10)                                           |   | 72,164                                                                                         |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | 18,525                                                                  |
| Warrants      exercised                                                            |   | 10,000                                                                                         |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | -                                                                       |
| Convertible      promissory note payable (Note 6)                                  |   | 10,000                                                                                         |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | -                                                                       |
| Increase      (decrease) in due to related party (Note 8)                          |   | 622                                                                                            |   | 8                                                                   |   | (100)                                                               |   | 71                                                                |   | (106)                                                                   |
|                                                                               |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
|                                                                               |   | 1,093,727                                                                                      |   | 100,008                                                             |   | (100)                                                               |   | 114,071                                                           |   | 24,894                                                                  |
|                                                                               |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Foreign      exchange effect on cash                                               |   | (4,246)                                                                                        |   | (5)                                                                 |   | 66                                                                  |   | (47)                                                              |   | 70                                                                      |
|                                                                               |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Increase      (decrease) in cash and cash equivalents                              |   | 20,314                                                                                         |   | 19,402                                                              |   | (52,344)                                                            |   | 15,529                                                            |   | (64,724)                                                                |
|                                                                               |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Cash      and cash equivalents, beginning of period                                |   | -                                                                                              |   | 912                                                                 |   | 79,567                                                              |   | 4,785                                                             |   | 91,947                                                                  |
|                                                                               |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                                    |
| Cash      and cash equivalents, end of period                                      |   | 20,314                                                                                         |   | 20,314                                                              |   | 27,223                                                              |   | 20,314                                                            |   | 27,223                                                                  |

----

----

|                                                                                                                               | Numberof      shares issued | Capitalstock | Additionalpaid-incapital | Warrants |    Accumulated      comprehensiveloss |   Deficitaccumulatedduring      the developmentstage | Stockholders’equity |
|------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|--------------|--------------------------|----------|------------------------------------------------------|----------------------------------------------------------------|---------------------------|
|                                                                                                                               |                        |         |                     | $        |                                                 | $                                                              |                      | $ |   | $ |   | $ |   | $ |
|                                                                                                                               |                        |         |                     |     |                                                 |                                                           |                      |   |   |   |   |   |   |   |
| Balance      at 2 September 2003 (inception)                                                                                       | -                           |         | -                        |     | -                                                    |                                                           | -                         |   | - |   | - |   | - |
| Shares      issued for cash                                                                                                        |                        | 140,000      |                     | -        |                                                 | 534                                                            |                      | - |   | - |   | - |   | 534 |
| Shares      issued for cash                                                                                                        |                        | 4,000        |                     | -        |                                                 | 38,130                                                         |                      | - |   | - |   | - |   | 38,130 |
| Adjustment      to number of shares issued as a result of the acquisition of net assets of      Rotoblock Inc. (Note 1)            | (144,000)                   |         | -                        |     | -                                                    |                                                           | -                         |   | - |   | - |   | - |
| Shares      issued in connection with the acquisition of net assets of Rotoblock Inc.      (Note 1)                                |                        | 300,000      |                     | 300      |                                                 | (300)                                                          |                      | - |   | - |   | - |   | - |
|          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                                                                                                      | 300,000                     |         | 300                      |     | 38,364                                               |                                                           | -                         |   | (1,918) |   | (108,581) |   | (71,835) |
|     Shares      issued for cash ($2.50 per share)                                                              | 200,000                     |         | 200                      |     | 499,800                                              |                                                           | -                         |   | - |   | - |   | 500,000 |
|     Foreign      currency translation adjustment                                                               | -                           |         | -                        |     | -                                                    |                                                           | -                         |   | (1,385) |   | - |   | (1,385) |
|          Net loss for the year                                                                                      |                        | -            |                     | -        |                                                 | -                                                              |                      | - |   | - |   | (306,193) |   | (306,193) |
|                                                                                                                               |                        |         |                     |     |                                                 |                                                           |                      |   |   |   |   |   |   |   |
| Balance      at 30 April 2005                                                                                                      | 500,000                     |         | 500                      |     | 538,164                                              |                                                           | -                         |   | (3,303) |   | (414,774) |   | 120,587 |
|     Shares      issued for cash ($13.08 per share)                                                             | 10,963                      |         | 11                       |     | 143,430                                              |                                                           | -                         |   | - |   | - |   | 143,441 |
|          Shares issued for services rendered ($15.59 per share)                                                     |                        | 48,363       |                     | 48       |                                                 | 753,829                                                        |                      | - |   | - |   | - |   | 753,877 |
| Shares      issued for inventory ($14.50 per share)                                                                                |                        | 12,221       |                     | 12       |                                                 | 177,192                                                        |                      | - |   | - |   | - |   | 177,204 |
|     Warrants      exercised ($12.50 per share)                                                                 | 800                         |         | 1                        |     | 9,999                                                |                                                           | -                         |   | - |   | - |   | 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                                                                                                      | 572,347                     |         | 572                      |     | 3,523,791                                            |                                                           | -                         |   | (4,253) |   | (3,182,033) |   | 338,077 |
| Shares      issued for cash ($10.50 per share) (Note 10)                                                                           |                        | 2,286        |                     | 2        |                                                 | 23,998                                                         |                      | - |   | - |   | - |   | 24,000 |
|          Shares issued for services rendered ($5.62 per share) (Note      10)                                       |                        | 34,185       |                     | 34       |                                                 | 192,031                                                        |                      | - |   | - |   | - |   | 192,065 |
| Contribution      to capital by related parties – services                                                                   |                        | -            |                     | -        |                                                 | 100,000                                                        |                      | - |   | - |   | - |   | 100,000 |
| Stock-based      compensation                                                                                                      |                        | -            |                     | -        |                                                 | 414,711                                                        |                      | - |   | - |   | - |   | 414,711 |
| Foreign      currency translation adjustment                                                                                       | -                           |         | -                        |     | -                                                    |                                                           | -                         |   | (5) |   | - |   | (5) |
|          Net loss for the year                                                                                      |                        | -            |                     | -        |                                                 | -                                                              |                      | - |   | - |   | (863,582) |   | (863,582) |
|                                                                                                                               |                        |         |                     |     |                                                 |                                                           |                      |   |   |   |   |   |   |   |
| Balance      at 30 April 2007                                                                                                      |                        | 608,818      |                     | 608      |                                                 | 4,254,531                                                      |                      | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
|                                                                                                                               |                        |         |                     |     |                                                 |                                                           |                      |   |   |   |   |   |   |   |

----

----

|                                                                                                                        | Numberof      shares issued | Capitalstock | Additionalpaid-incapital |    Warrants | Accumulated      comprehensiveloss | Deficitaccumulatedduring      the developmentstage | Stockholders’            equity |
|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------|--------------|--------------------------|----------------------------|------------------------------------|----------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                                                                                                        |                        |         |                     | $                          |                               | $                                                  |                                                                                              | $ |   | $ |   | $ |   | $ |
|                                                                                                                        |                        |         |                     |                       |                               |                                               |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 30 April 2007                                                                                               |                        | 608,818      |                     | 608                        |                               | 4,254,531                                          |                                                                                              | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
|     Shares      issued for cash ($3.38 per share) (Note 10)                                             |                        | 51,600       |                     | 52                         |                               | 174,309                                            |                                                                                              |  - |   | - |   | - |   | 174,361 |
|     Warrants      granted                                                                               |                        | -            |                     | -                          |                               | -                                                  |                                                                                              | 53,639 |   |   |   |   |   | 53,639 |
|          Shares issued for services rendered ($2.78 per share) (Notes 10 and      13)                        |                        | 63,511       |                     | 64                         |                               | 176,446                                            |                                                                                              |  - |   | - |   | - |   | 176,510 |
| Contribution      to capital by related parties – services (Notes 9 and 13)                                           |                        | -            |                     | -                          |                               | 100,000                                            |                                                                                              |  - |   | - |   | - |   | 100,000 |
| Stock-based      compensation (Notes 10 and 13)                                                                             |                        | -            |                     | -                          |                               | -                                                  |                                                                                              | 60,664 |   | - |   | - |   | 60,664 |
|          Foreign currency translation adjustment                                                             | -                           |         | -                        |                       | -                                  |                                               | -                                                                                                 |   | (10) |   | - |   | (10) |
| Net      loss for the year                                                                                                  |                        | -            |                     | -                          |                               | -                                                  |                                                                                              | - |   | - |   | (576,091) |   | (576,091) |
|                                                                                                                        |                        |         |                     |                       |                               |                                               |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 30 April 2008                                                                                               |                        | 723,929      |                     | 724                        |                               | 4,705,286                                          |                                                                                              | 114,303 |   | (4,268) |   | (4,621,706) |   | 194,339 |
| Shares      issued for cash ($1.94 per share) (Note 10)                                                                     |                        | 3,333        |                     | 3                          |                               | 6,472                                              |                                                                                              |  - |   | - |   | - |   | 6,475 |
| Warrants      granted for cash (Note 10)                                                                                    |                        | -            |                     | -                          |                               | -                                                  |                                                                                              | 18,525 |   |   |   |   |   | 18,525 |
| Shares      issued for services rendered ($1.87 per share) (Note 10)                                                        |                        | 190,933      |                     | 191                        |                               | 393,809                                            |                                                                                              |  - |   | - |   | - |   | 394,000 |
| Shares      issued for property ($1.25 per share) (Notes 4, 9, 10, and    13)                                               |                        | 200,000      |                     | 200                        |                               | 249,800                                            |                                                                                              |  - |   | - |   | - |   | 250,000 |
| Shares      issued for debt ($5.00 per share)  (Notes 6 and    10)                                                |                        | 2,000        |                     | 2                          |                               | 9,998                                              |                                                                                              | - |   | - |   | - |   | 10,000 |
| Contribution      to capital by related parties – services (Notes 10 and 13)                                          |                        | -            |                     | -                          |                               | 100,000                                            |                                                                                              |  - |   | - |   | - |   | 100,000 |
| Stock-based      compensation (Notes 9, 10 and 13)                                                                          |                        | -            |                     | -                          |                               | -                                                  |                                                                                              |  147,446 |   | - |   | - |   | 147,446 |
|          Foreign currency translation adjustment                                                             | -                           |         | -                        |                       | -                                  |                                               | -                                                                                                 |   | 70 |   | - |   | 70 |
| Net      loss for the year                                                                                                  |                        | -            |                     | -                          |                               | -                                                  |                                                                                              | - |   | - |   | (790,591) |   | (790,591) |
|                                                                                                                        |                        |         |                     |                       |                               |                                               |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 30 April 2009                                                                                               |                        | 1,120,195    |                     | 1,120                      |                               | 5,465,365                                          |                                                                                              | 280,274 |   | (4,198) |   | (5,412,297) |   | 330,264 |
| Shares      issued for property rescinded ($1.25 pershare)      (Notes 4, 9, 10 and 13)                                     |                        | (200,000)    |                     | (200)                      |                               | (249,800)                                          |                                                                                              |   - |   | - |   | - |   | (250,000) |
| Shares      issued for cash ($0.70 per share) (Note 10)                                                                     |                        | 77,029       |                     | 77                         |                               | 113,923                                            |                                                                                              |  - |   | - |   | - |   | 114,000 |
| Shares      issued for services rendered ($0.15 pershare)      (Notes 10 and 13)                                            |                        | 190,000      |                     | 190                        |                               | 28,310                                             |                                                                                              |  - |   | - |   | - |   | 28,500 |
|          Shares issued for services rendered ($0.17 per         share) (Notes 10 and 13) |                        | 50,000  |                     | 50                    |                               | 8,450                                         |                                                                                              |  - |   | -  |   | -  |   | 8,500  |
| Contribution      to capital by related parties – services (Notes 10 and 13)                                          |                        | -            |                     | -                          |                               | 50,000                                             |                                                                                              |  - |   | - |   | - |   | 50,000 |
|          Fair value of warrants issued                                                                       |                        |  -      |                     | -                          |                               | (38,411)                                           |                                                                                              | 38,411 |   | - |   | - |   | - |
| Stock-based      compensation (Notes 10 and 13)                                                                        |                        | -            |                     | -                          |                               | -                                                  |                                                                                              |  408,728 |   | - |   | - |   | 408,728 |
|     Foreign      currency translation adjustment                                                        | -                           |         | -                        |                       | -                                  |                                               | -                                                                                                 |   | (47) |   | - |   | (47) |
| Net      loss for the period                                                                                                |                        | -            |                     | -                          |                               | -                                                  |                                                                                              | - |   | - |   | (770,500) |   | (770,50052) |
|                                                                                                                        |                        |         |                     |                       |                               |                                               |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 31 October 2009                                                                                        |                        | 1,237,224    |                     | 1,237                      |                               | 5,377,837                                          |                                                                                              | 727,413 |   | (4,245) |   | (6,182,797) |   | (80,555) |

----

----

|                                              |   | For      the period from the date of inception on 2 September 2003 to31      October 2009 |   |   For      the three months ended31      October2009 |   |   For      the three months ended31      October2008 |   |   For      the six months ended31      October2009 |   |   For      the six months ended31      October2008 |
|---------------------------------------------------|--------|------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------|
|                                              |   | $                                                                                              |   | $                                                                   |   | $                                                                   |   | $                                                                 |   | $                                                                 |
|                                              |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                              |
| Consulting      fees (Notes 9, 10 and 13)         |   | 955,179                                                                                        |   | 48,776                                                              |   | 2,362                                                               |   | 89,502                                                            |   | 120,239                                                           |
| Depreciation                                      |   | 6,132                                                                                          |   | 121                                                                 |   | 148                                                                 |   | 750                                                               |   | 246                                                               |
| Foreign      exchange loss                        |   | 1,545                                                                                          |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | -                                                                 |
| Interest                                          |   | 17,590                                                                                         |   | 800                                                                 |   | 79                                                                  |   | 867                                                               |   | 113                                                               |
| Investor      relations (Notes 10 and 13)         |   | 239,878                                                                                        |   | -                                                                   |   | 24,197                                                              |   | -                                                                 |   | 54,181                                                            |
| Listing,      filing and transfer agent fees      |   | 51,734                                                                                         |   | 3,740                                                               |   | 3,060                                                               |   | 3,821                                                             |   | 6,755                                                             |
| Management      fees (Notes 9 and 13)             |   | 350,000                                                                                        |   | 25,000                                                              |   | 25,000                                                              |   | 50,000                                                            |   | 50,000                                                            |
| Office      and sundry                            |   | 65,453                                                                                         |   | 1,133                                                               |   | 4,618                                                               |   | 4,932                                                             |   | 8,849                                                             |
| Professional      fees                            |   | 439,469                                                                                        |   | 21,189                                                              |   | 14,899                                                              |   | 32,196                                                            |   | 35,434                                                            |
| Public      relations and shareholder information |   | 190,364                                                                                        |   | 8,006                                                               |   | 14,622                                                              |   | 8,927                                                             |   | 37,033                                                            |
| Rent                                              |   | 79,205                                                                                         |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | -                                                                 |
| Research      and development                     |   | 314,256                                                                                        |   | -                                                                   |   | -                                                                   |   | -                                                                 |   | -                                                                 |
| Salaries      and wages                           |   | 133,973                                                                                        |   | 133,973                                                             |   | -                                                                   |   | 133,973                                                           |   | -                                                                 |
| Stock-based      compensation (Notes 10 and 13)   |   | 2,932,726                                                                                      |   | 405,000                                                             |   | -                                                                   |   | 408,728                                                           |   | 147,446                                                           |
| Travel      and entertainment                     |   | 162,465                                                                                        |   | 36,510                                                              |   | 13,335                                                              |   | 38,188                                                            |   | 32,743                                                            |
|                                              |   |                                                                                           |   |                                                                |   |                                                                |   |                                                              |   |                                                              |
|                                              |   | 5,939,969                                                                                      |   | 684,248                                                             |   | 102,320                                                             |   | 771,884                                                           |   | 493,039                                                           |

----

----

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

----

----

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

Basis of presentation

----

----

----

----

| 3.  | Property,      equipment and depreciation |
|----------|-------------------------------------------|

----

----

----

----

----

----

----

----

----

----

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

|                                                              |   | Balance      at31      October 2009 |   | Balance      at30      April2009(Audited) |
|-------------------------------------------------------------------|--------|-------------------------------------|--------|-------------------------------------------|
|                                                              |   | $                                   |   | $                                         |
|                                                              |   |                                |   |                                      |
|       Patent      costs to date     |   | 108,745                             |   | 108,745                                   |
|       Accumulated      depreciation |   | -                                   |   | -                                         |
|                                                              |   |                                |   |                                      |
|                                                              |   | 108,745                             |   | 108,745                                   |

| 4.   | Property,      Plant and Equipment |
|----------------|------------------------------------|

|                                          |   |   |   | Accumulatedamortization |                            | Net      book value |
|-----------------------------------------------|--------|--------|--------|-------------------------|---------------------------------|---------------------|
|                                          |   | Cost   |   |                    |  31 October      2009 |                | 30      April 2009(Audited) |
|                                          |   | $      |   | $                       |                            | $                   |   | $ |
|                                          |   |   |   |                    |                            |                |   |   |
|       Equipment |   | 2,940  |   | 780                     |                            | 2,160               |   | 2,402 |
|       Property  |   | -      |   | -                       |                            | -                   |   | 67,874 |
|       Land      |   | -      |   | -                       |                            | -                   |   | 181,250 |
|                                          |   |   |   |                    |                            |                |   |   |
|                                          |   | 2,940  |   | 780                     |                            | 2,160               |   | 251,526 |

----

----

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

| 6.   | Convertible Promissory Note    Payable |
|----------------|----------------------------------------|

| 7.   | Joint      Venture Agreement |
|----------------|------------------------------|

| 8.   | Due      to Related Party |
|----------------|---------------------------|

----

----

| 9.   | Related      Party Transactions |
|----------------|---------------------------------|

| 10.   | Capital      Stock |
|-----------------|--------------------|

| i.   | During      the year ended 30 April 2008, the Company issued 31,600 private placement      restricted common shares at a price of $2.50 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. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | During      the year ended 30 April 2008, the Company issued 4,000 common shares      valued at $1.00 per share for consulting  services. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | During      the year ended 30 April 2008, the Company issued 20,000 common shares      valued at $2.50 per share for $50,000 in consulting    services. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | During      the year ended 30 April 2008, the Company issued 6,000 common shares      valued at $2.50 per share for $15,000 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. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | During      the year ended 30 April 2008, the Company issued 4,000 common shares      valued at $1.00 per share for $4,000 in consulting    services. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | During      the year ended 30 April 2008, the Company issued 7,600 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 $12.50 up to 6 September2012. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vii.   | During      the year ended 30 April 2008, the Company issued 2,571 common shares      valued at $6.50 per share for $16,710 for consulting    services. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| viii.   | During      the year ended 30 April 2008, the Company issued 1,684 common shares      valued at $4.50 per share for $8,000 for consulting    services. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ix.   | During      the year ended 30 April 2008, the Company issued 589 common shares valued      at $4.50 per share for $2,800 for consulting  services. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| x.   | During      the year ended 30 April 2008, the Company issued 13,333 units at a price      of $7.50 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      $12.50 per share for a period of five years from the date of offering with      a fair value of $25,793.  As at 31 October 2009, 6,667 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 of1933. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xi.   | During      the year ended 30 April 2008, the Company issued 6,667 units at a price of      $7.50 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 $12.50 per      share for a period of five years from the date of offering with a fair      value of $22,463.  As at 31 October 2009, 6,667 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. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xii.   | During      the year ended 30 April 2008, the Company issued 2,000 common shares      valued at $4.00 per share for $8,000 for consulting    services. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiii.   | During      the year ended 30 April 2008, the Company issued 2,667 common shares      valued at $3.00 per share for $8,000 for consulting    services. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiv.   | During      the year ended 30 April 2008, the Company issued 20,000 units valued at      $3.00 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 $7.50 per      share for a period of five years from the date of offering with a fair      value of $60,664.  As at 31 October 2009, 20,000 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 of  1933. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xv.   | During      the year ended 30 April 2009, the Company issued 1,000 common shares      valued at $4.00 per common share for $4,000 in consulting      services. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  xvi.        | During      the year ended 30 April 2009, the Company issued 6,400 common shares      valued at $15.00 per common share for $96,000 in investor      relations.  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. |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  xvii.        | During      the year ended 30 April 2009, the Company issued 16,000 units valued at      $4.00 per common share each for $64,000 as compensation to the chief      executive officer of the company.  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 $7.50 expiring 12 May      2013 with a fair value of $147,446.  As at 31 October 2009,      16,000 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 of 1933 (Notes 9 and 13). |
|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xviii.   | During      the year ended 30 April 2009, the Company issued 1,333 common shares      valued at $7.50 per common share each for $10,000 for legal      services. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xix.   | During      the year ended 30 April 2009, the Company issued 1,000 common shares      valued at $7.50 per common share  for $7,500 in 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 of 1933. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xx.   | During      the year ended 30 April 2009, the Company issued 3,200 common shares      valued at $7.50 per common share $24,000 in consulting expense to a      related party (Note 9). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxi.   | During      the year ended 30 April 2009, the Company issued 5,000 common shares      valued at $5.50 per common share for $27,500 in consulting 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 (Note 9). |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxii.   | During      the year ended 30 April 2009, the Company issued 3,333 units valued at      $7.50 per unit for total cash proceeds of $25,000.  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 $12.50 per      share for a period of five years from the date of offering with a fair      value of $18,525.  As at 31 October 2009, 3,333 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. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxiii.   | During      the year ended 30 April 2009, the Company issued 2,000 common shares      valued at $5.00 per common share for $10,000 in repayment for a      convertible promissory note (Note6). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxiv.   | During      the year ended 30 April 2009, the Company issued 2,000 common shares      valued at $3.00 per common share for $6,000 in consulting      expense.  Of this amount, $1,513 was expensed during the period      (30 April 2009 - $3,271, cumulative - $4,784), and the remaining $1,216      was classified as prepaid expense which will be expensed as consulting      services in subsequent periods. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxv.   | During      the year ended 30 April 2009, the Company issued 200,000 shares of common      stock valued at $1.25 per share purchase for land and building from a      related party valued at $250,000 (Notes 4, 9 and      13).   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.  These shares were cancelled in the current      period. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxvi.   | During      the year ended 30 April 2009, the Company issued 5,000 common shares      valued at $1.00 per common share for $5,000 in legal    services. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| xxvii.   | During      the year ended 30 April 2009, the Company issued 150,000 common shares      valued $1.00 per common share at $150,000 in retainer for consulting      expenses to two related parties.  Of this amount, $37,808 was      expensed during the period (30 April 2009 - $74,384, cumulative -      $112,192), and the remaining $37,808 was classified as prepaid expense      which will be expensed as consulting services 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 (Notes 9 and 13). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxviii.   | During      the six month period ended 31 October 2009, the Related Party      returned to treasury 200,000 shares of common stock of the Company      valued at $1.25 per common share for a total value of $250,000, related to      the disposal of land and building acquired from a Related Party pursuant      to the Agreement entered into on 24 November 2008.  These shares      were cancelled on 29 July 2009 (Notes 4, 9 and  13). |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxix.   | During      the six month period ended 31 October 2009, the Company issued      6,552 common shares valued at $0.61 per common share for cash of      $4,000.  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. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxx.   | During      the six month period ended 31 October 2009, the Company issued      13,333 common shares valued at $0.75 per common share for cash of      $10,000.  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. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxi.   | During      the six month period ended 31 October 2009, the Company issued      190,000 common shares valued at $0.15 per common share for $28,500 in      consulting expense.  Of this amount, $8,722 was expensed during      the period and the remaining $19,778 was classified as prepaid expense      which will be expensed as consulting services in subsequent      periods. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxii.   | During      the six month period ended 31 October 2009, the Company issued 50,000      common shares valued at $0.17 per common share for $8,500 in consulting      expense.  Of this amount, $2,434 was expensed during the period      and the remaining $6,066 was classified as prepaid expense which will be      expensed as consulting services in subsequent  periods. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiii.   | During      the period ended 31 October 2009, the Company issued 200,000 warrants      valued at $1.80 with an exercise price of $0.50 per share as stock-based      compensation. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiv.   | During      the period ended 31 October 2009, the Company issued 28,572 units valued      at $1.75 consisting of one share and two warrants with an exercise price      of $2.50 per share for total cash proceeds of $50,000.  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. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxv.   | During      the period ended 31 October 2009, the Company issued 28,572 shares valued      at $1.75 for total cash proceeds of $50,000.  These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|     |   | Exercise      price |   | Numberof      warrants |   | Remainingcontractual      life (years) |
|----------|--------|---------------------|--------|------------------------|--------|----------------------------------------|
|     |   | $                   |   |                   |   |                                   |
|     |   |                |   |                   |   |                                   |
| Warrants |   | 12.50               |   | 59,200                 |   | 1.20                                   |
| Warrants |   | 7.50                |   | 50,000                 |   | 2.10                                   |
| Warrants |   | 12.50               |   | 7,600                  |   | 2.86                                   |
| Warrants |   | 12.50               |   | 6,667                  |   | 3.23                                   |
| Warrants |   | 7.50                |   | 20,000                 |   | 3.42                                   |
| Warrants |   | 12.50               |   | 6,667                  |   | 3.44                                   |
| Warrants |   | 7.50                |   | 16,000                 |   | 3.56                                   |
| Warrants |   | 12.50               |   | 3,333                  |   | 3.68                                   |
| Warrants |   | 0.25                |   | 25,000                 |   | 4.71                                   |
| Warrants |   | 0.25                |   | 25,000                 |   | 4.73                                   |
| Warrants |   | 0.50                |   | 200,000                |   | 4.73                                   |
| Warrants |   | 2.50                |   | 57,144                 |   | 4.73                                   |
|     |   |                |   |                   |   |                                   |
|     |   |                |   | 476,611                |   |                                   |

|                                                                                                             |   | Number      of warrants |   | Weighted      average exercise price |
|------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                                                             |   |                    |   | $                                    |
|                                                                                                             |   |                    |   |                                 |
|             Outstanding and exercisable at 1 May 2008                              |   | 150,134                 |   | 16.93                                |
|                                                                                                             |   |                    |   |                                 |
|             Granted                                                                |   | 19,333                  |   | 8.50                                 |
|             Exercised                                                              |   | -                       |   | -                                    |
|             Expired                                                                |   | -                       |   | -                                    |
|                                                                                                             |   |                    |   |                                 |
|             Outstanding and exercisable at 30 April 2009                           |   | 169,467                 |   | 15.97                                |
|                                                                                                             |   |                    |   |                                 |
|             Weighted average fair value of warrants granted during the      year   |   | 8.58                    |
|                                                                                                             |   |                    |   |                                 |
|             Outstanding and exercisable at 1 May 2009                              |   | 169,467                 |   | 15.97                                |
|                                                                                                             |   |                    |   |                                 |
|             Granted                                                                |   | 307,144                 |   | 0.63                                 |
|             Exercised                                                              |   | -                       |   | -                                    |
|             Expired                                                                |   | -                       |   | -                                    |
|                                                                                                             |   |                    |   |                                 |
|             Outstanding and exercisable at 31 October 2009                    |   | 476,611                 |   | 4.08                                 |
|                                                                                                             |   |                    |   |                                 |
|             Weighted average fair value of warrants granted during the      period |   | 1.87                    |

----

----

|                                                             |   |   |   | As      at31      October 2009 |   | As      at30      April 2009(Audited) |   | As      at30      April 2008(Audited)  |
|------------------------------------------------------------------|--------|--------|--------|-------------------------------------|--------|--------------------------------------------|--------|--------------------------------------------------|
|                                                             |   |   |   |                                |   |                                       |   |                                             |
|       Risk      free interest rate |   |   |   | 1.55%      - 2.36%                  |   | 3.02      % - 3.28%                        |   | 2.65%      - 3.72%                               |
|       Expected      life           |   |   |   | 5.0      years                      |   | 5.0      years                             |   | 5.0      years                                   |
|       Annualized      volatility   |   |   |   | 629%                                |   | 153%      - 158%                           |   | 119%      - 150%                                 |
|       Expected      dividends      |   |   |   | -                                   |   | -                                          |   | -                                                |

| 11.        | Income      Taxes |
|-----------------|-------------------|

|                                                                                                 |   | For      the six months ended 31      October2009 |   | For      the six monthsended 31      October2008 |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|-------------------------------------------------------|
|                                                                                                 |   | $                                                           |   | $                                                     |
|                                                                                                 |   |                                                        |   |                                                  |
|             Deferred tax asset attributable to:                        |   |                                                        |   |                                                  |
|             Current operations                                         |   | 261,970                                                |   | 167,633                                               |
|             Contributions to capital by related party – expenses |   | (17,000)                                                    |   | (17,000)                                              |
|             Stock-based compensation                                   |   | (138,968)                                                   |   | (50,132)                                              |
|             Non-deductiblemeals and entertainment                      |   | (6,492)                                                     |   | -                                                     |
|             Change in valuation allowance                              |   | (99,510)                                                    |   | (100,501)                                             |
|                                                                                                 |   |                                                        |   |                                                  |
|             Net refundable amount                                      |   | -                                                           |   | -                                                     |

|                                                                              |   | As      at31      October 2009 |   | As      at30      April 2009(Audited) |
|-----------------------------------------------------------------------------------|--------|-------------------------------------|--------|---------------------------------------|
|                                                                              |   | $                                   |   | $                                     |
|                                                                              |   |                                |   |                                  |
|              Net operating loss carry forward  |   | 2,537,654                           |   | 2,244,976                             |
|                                                                              |   |                                |   |                                  |
|              Statutory federal income tax rate |   | 34%                                 |   | 35%                                   |
|              Effective income tax rate         |   | 0%                                  |   | 0%                                    |
|                                                                              |   |                                |   |                                  |
|              Deferred tax asset                |   | 862,802                             |   | 785,742                          |
|              Less: Valuation allowance         |   | (862,802)                           |   | (785,742)                             |
|                                                                              |   |                                |   |                                  |
|              Net deferred tax asset            |   | -                                   |   | -                                     |

----

----

| i.   | On      15 November 2007, the Company filed its intention to register 100,000      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 $4.50 per common share (Note13). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | The      Company is in a dispute with a former director for services previously      rendered. In the opinion of management, this claim is without merit and      the Company will be successful in its defense of this claim. A total of      $Nil (30 April 2009 – $72,000) related to this amount was accrued in the      consolidated financial statements of the Company during the six month      period ended 31 October 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | The      Company entered into an employment agreement with the corporate secretary      for a salary of $50,000 per annum beginning 1 July 2009.  No      salaries have been paid and $16,849 has been recorded in accrued      liabilities. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | The      Company entered into an employment agreement with the chief executive      office for a salary of $120,000 per annum beginning 1 July      2009.  No salaries have been paid and $42,124 has been recorded      in accrued liabilities. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | The      Company is committed to issuing 1,000,000 employee stock options to an      executive of the Company under an employment agreement dated 13 July      2009. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                  | For      the periodfrom      thedate      of inception on2      September 2003to31      October2009 |  For      thethree      monthsended31      October 2009 |   For      thethree      monthsended31      October 2008 |  For      thesix      monthsended31      October 2009 |   For      thesix      monthsended31      October 2008 |
|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------------|
|                                                                                  | $                                                                                                   | $                                                                 | $                                                                       | $                                                               | $                                                                     |
|                                                                                  |                                                                                                |                                                              |                                                                    |                                                            |                                                                  |
|     Cash      paid during the period for  interest | 11,362                                                                                              | -                                                                 | -                                                                       | -                                                               | -                                                                     |
|     Cash      paid during the period for income taxes        | 1,790                                                                                               | -                                                                 | -                                                                       | -                                                               | -                                                                     |

----

----

----

Item 1A. Risk Factors 

----

|     |   | Exercise      price$ |   | Numberof      warrants |   | Remainingcontractual      life (years) |
|----------|--------|----------------------|--------|------------------------|--------|----------------------------------------|
|     |   |                 |   |                   |   |                                   |
| Warrants |   | 12.50                |   | 59,200                 |   | 1.20                                   |
| Warrants |   | 7.50                 |   | 50,000                 |   | 2.10                                   |
| Warrants |   | 12.50                |   | 7,600                  |   | 2.86                                   |
| Warrants |   | 12.50                |   | 6,667                  |   | 3.23                                   |
| Warrants |   | 7.50                 |   | 20,000                 |   | 3.42                                   |
| Warrants |   | 12.50                |   | 6,667                  |   | 3.44                                   |
| Warrants |   | 7.50                 |   | 16,000                 |   | 3.56                                   |
| Warrants |   | 12.50                |   | 3,333                  |   | 3.68                                   |
| Warrants |   | 0.25                 |   | 25,000                 |   | 4.71                                   |
| Warrants |   | 0.25                 |   | 25,000                 |   | 4.73                                   |
| Warrants |   | 0.50                 |   | 200,000                |   | 4.73                                   |
| Warrants |   | 2.50                 |   | 57,144                 |   | 4.73                                   |
|     |   |                 |   |                   |   |                                   |
|     |   |                 |   | 476,611                |   |                                   |

|                                                                   |   | Number      of warrants |   | Weighted      average exercise price |
|------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                   |   |                    |   | $                                    |
|                                                                   |   |                    |   |                                 |
| Outstanding      and exercisable at 1 May 2008                         |   | 150,134                 |   | 16.93                                |
|      Granted                                  |   | 19,333                  |   | 8.50                                 |
|      Exercised                                |   | -                       |   | -                                    |
|      Expired                                  |   | -                       |   | -                                    |
|                                                                   |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2009                      |   | 169,467                 |   | 15.97                                |
|                                                                   |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the year   |   | 8.58                    |
|                                                                   |   |                    |   |                                 |
| Outstanding      and exercisable at 1 May 2009                         |   | 169,467                 |   | 15.97                                |
|      Granted                                  |   | 307,144                 |   | 0.63                                 |
|      Exercised                                |   | -                       |   | -                                    |
|      Expired                                  |   | -                       |   | -                                    |
|                                                                   |   |                    |   |                                 |
| Outstanding      and exercisable at 31 October 2009                    |   | 476,611                 |   | 4.08                                 |
|                                                                   |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the period |   | 1.87                    |

----

|                         | As      at31      October 2009 |   | As      at30      April 2009      (Audited) | As      at30      April 2008      (Audited) |
|------------------------------|-------------------------------------|--------|--------------------------------------------------|--------------------------------------------------|
|                         |                                |   |                                             |                                             |
| Risk      free interest rate | 1.55%      - 2.36%                  |   | 3.02      % - 3.28%                              | 2.65      % - 3.72%                              |
| Expected      life           | 5.0      years                      |   | 5.0      years                                   | 5.0      years                                   |
| Annualized      volatility   | 629%                                |   | 153%      - 158%                                 | 119%      - 150%                                 |
| Expected      dividends      | -                                   |   | -                                                | -                                                |

----

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