----

|                           |                                                                                            | 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 | 31     |
|                           |                                                                                            |   |
| ITEM      3.                   | Quantitative      and Qualitative Disclosures About Market Risk                                 | 32     |
|                           |                                                                                            |   |
| ITEM      4.                   | Controls      and Procedures                                                                    | 32     |
|                           |                                                                                            |   |
|                           | PART      II - OTHER INFORMATION                                                                |   |
|                           |                                                                                            |   |
| ITEM      1.                   | Legal      Proceedings                                                                          | 32     |
|                           |                                                                                            |   |
| ITEM      1A.                  | Risk      Factors                                                                               | 32     |
|                           |                                                                                            |   |
| ITEM      2.                   | Unregistered      Sales of Equity Securities and Use of Proceeds                                | 33     |
|                           |                                                                                            |   |
| ITEM      3.                   | Defaults      Upon Senior Securities                                                            | 35     |
|                           |                                                                                            |   |
| ITEM      4.                   | Submission      of matters to a Vote of Security Holders                                        | 35     |
|                           |                                                                                            |   |
| ITEM      5.                   | Other      Information                                                                          | 35     |
|                           |                                                                                            |   |
| ITEM      6.    |  Exhibits                                                                                  | 35     |

----

----

----

|                                                                    |   | As      at31      January 2009  |   |  As      at30      April2008(Audited) |
|-------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------------------------------------------|
|                                                                    |   | $                                         |   | $                                          |
| Assets                                                                  |   |                                      |   |                                       |
|                                                                    |   |                                      |   |                                       |
| Current                                                                 |   |                                      |   |                                       |
| Cash      and cash equivalents                                          |   | 12,196                                    |   | 91,947                                     |
| Accounts      receivable                                                |   | 180                                       |   | 219                                        |
| Prepaid      expenses                                                   |   | 29,165                                    |   | 26,072                                     |
|                                                                    |   |                                      |   |                                       |
|                                                                    |   | 41,541                                    |   | 118,238                                    |
|                                                                    |   |                                      |   |                                       |
| Patents (Note      3)                                                   |   | 108,745                                   |   | 108,745                                    |
| Property and equipment      (Note 4)                                    |   | 252,172                                   |   | -                                          |
|                                                                    |   |                                      |   |                                       |
|                                                                    |   | 402,458                                   |   | 226,983                                    |
| Liabilities                                                             |   |                                      |   |                                       |
|                                                                    |   |                                      |   |                                       |
| Current                                                                 |   |                                      |   |                                       |
| Accounts      payable and accrued liabilities (Note 5)                  |   | 16,100                                    |   | 10,281                                     |
| Convertible      promissory note payable (Note 7)                       |   | -                                         |   | 10,000                                     |
| Due      to related party (Note 9)                                      |   | 542                                       |   | 658                                        |
| Interest      payable (Note 6)                                          |   | 11,705                                    |   | 11,705                                     |
| Obligation      to issue shares (Notes 13 and 15)                       |   | 37,500                                    |   | -                                          |
|                                                                    |   |                                      |   |                                       |
|                                                                    |   | 65,847                                    |   | 32,644                                     |
|                                                                    |   |                                      |   |                                       |
| Stockholders’      equity                                         |   |                                      |   |                                       |
| Capital stock (Note      11)                                            |   |                                      |   |                                       |
| Authorized                                                              |   |                                      |   |                                       |
| 75,000,000      common shares, par value $0.001                         |   |                                      |   |                                       |
| Issued      and outstanding                                             |   |                                      |   |                                       |
| 31      January 2009 – 48,509,776 common shares, par value $0.001 |   |                                      |   |                                       |
| 30      April 2008 – 36,196,442 common shares, par value $0.001   |   | 48,510                                    |   | 36,196                                     |
| Additional      paid-in capital                                         |   | 5,242,975                                 |   | 4,669,814                                  |
| Warrants                                                                |   | 280,274                                   |   | 114,303                                    |
| Accumulated      comprehensive loss                                     |   | (4,192)                                   |   | (4,268)                                    |
| Deficit,      accumulated during the development stage                  |   | (5,230,956)                               |   | (4,621,706)                                |
|                                                                    |   |                                      |   |                                       |
|                                                                    |   | 336,611                                   |   | 194,339                                    |
|                                                                    |   |                                      |   |                                       |
|                                                                    |   | 402,458                                   |   | 226,983                                    |

----

|                                                                                     |   |  For      the period from the date of inception on 2 September 2003 to31      January 2009 (Unaudited) |   | For      the three months ended31      January 2009 |   | For      the three months  ended31      January 2008 |   |      For      the nine months ended31      January 2009 |   |      For      the nine months ended31      January 2008 |
|------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
|                                                                                     |   | $                                                                                                           |   | $                                                   |   | $                                                              |   | $                                                                                     |   | $                                                                                     |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Expenses                                                                                 |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| General      and administrative (Schedule 1)                                             |   | 5,058,744                                                                                                   |   | 116,211                                             |   | 84,302                                                         |   |  609,250                                                                         |   |  248,425                                                                         |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Net      loss before other items                                                         |   | (5,058,744)                                                                                                 |   | (116,211)                                           |   | (84,302)                                                       |   | (609,250)                                                                             |   | (248,425)                                                                             |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Other      items                                                                         |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Excess      of consideration over net assets purchased from Rotoblock Inc. (Note      1) |   | (138)                                                                                                       |   | -                                                   |   | -                                                              |   |   -                                                                         |   |   -                                                                         |
| Write-off      of property and equipment                                                 |   | (9,870)                                                                                                     |   | -                                                   |   | -                                                              |   |  -                                                                               |   |  -                                                                               |
| Write-off      of related party receivable                                               |   | (162,204)                                                                                                   |   | -                                                   |   | -                                                              |   |  -                                                                               |   |  -                                                                               |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Loss      for the period                                                                 |   | (5,230,956)                                                                                                 |   | (116,211)                                           |   | (84,302)                                                       |   | (609,250)                                                                             |   | (248,425)                                                                             |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
|  Basic      and diluted loss per common share                                       |   |                                                                                                        |   | (0.003)                                             |   | (0.002)                                                        |   |   (0.015)                                                                   |   |   (0.008)                                                                   |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
|  Weighted      average number of common shares used in per share    calculations    |   |                                                                                                        |   | 45,466,298                                          |   | 33,914,909                                                     |   |    40,340,090                                                          |   |    30,782,759                                                          |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Comprehensive      loss                                                                  |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Loss      for the period                                                                 |   | (5,230,956)                                                                                                 |   | (116,211)                                           |   | (84,302)                                                       |   | (609,250)                                                                             |   | (248,425)                                                                             |
| Foreign      currency translation adjustment                                             |   | (4,192)                                                                                                     |   | 6                                                   |   | (23)                                                           |   |  76                                                                              |   |  (19)                                                                            |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Comprehensive      loss                                                                  |   | (5,235,148)                                                                                                 |   | (116,205)                                           |   | (84,325)                                                       |   | (609,174)                                                                             |   | (248,444)                                                                             |
|                                                                                     |   |                                                                                                        |   |                                                |   |                                                           |   |                                                                                  |   |                                                                                  |
| Comprehensive      loss per common share                                                 |   |                                                                                                        |   | (0.003)                                             |   | (0.002)                                                        |   |  (0.015)                                                                         |   |  (0.008)                                                                         |

----

|                                                                              | For      the period from the date of inception on 2 September 2003 to31      January 2009(Unaudited) |   For      the ninemonths      ended31      January 2009                           | For      the ninemonths      ended31      January2008 |
|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-------------------------------------------------------|
|                                                                              |                                                                                                      |                 $ |                                                  | $ |   | $ |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Cash      flows from operating activities                                         |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Loss      for the period                                                          |                                                                                                      | (5,230,956)                                                                                       |                                                  | (609,250) |   | (248,425) |
| Adjustments      to reconcile loss to net cash used by operating activities       |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Contributions      to capital by related party – expenses (Notes 10 and 14) |                                                                                                      | 275,000                                                                                           |                                                  | 75,000 |   | 75,000 |
| Depreciation                                                                      |                                                                                                      | 4,736                                                                                             |                                                  | 768 |   | - |
| Non-cash      interest                                                            |                                                                                                      | 11,705                                                                                            |                                                  | - |   | - |
| Shares      issued for services (Notes 11, 13 and 14)                             |                                                                                                      | 1,374,785                                                                                         |                                                  | 278,407 |   | 117,092 |
| Stock-based      compensation (Notes 11 and 14)                                   |                                                                                                      | 2,523,998                                                                                         |                                                  | 147,446 |   | 5,383 |
| 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                                   |                                                                                                      | (180)                                                                                             |                                                  | 39 |   | (23) |
| Increase      (decrease) in accounts payable and accrued liabilities              |                                                                                                      | 16,102                                                                                            |                                                  | 5,819 |   | (22,677) |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
|                                                                              |                                                                                                      | (837,736)                                                                                         |                                                  | (101,771) |   | (73,650) |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Cash      flows used in investing activities                                      |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Purchase      of equipment                                                        |                                                                                                      | (16,778)                                                                                          |                                                  | (2,940) |   | - |
| Purchase      of patents                                                          |                                                                                                      | (108,745)                                                                                         |                                                  | - |   | - |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
|                                                                              |                                                                                                      | (125,523)                                                                                         |                                                  | (2,940) |   | - |
| Cash      flows from financing activities                                         |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Common      shares issued for cash                                                |                                                                                                      | 886,941                                                                                           |                                                  | 6,475 |   | 152,207 |
| Warrants      granted for cash                                                    |                                                                                                      | 72,164                                                                                            |                                                  | 18,525 |   | 25,793 |
| Warrants      exercised                                                           |                                                                                                      | 10,000                                                                                            |                                                  | - |   | - |
| Convertible      promissory note payable                                          |                                                                                                      | 10,000                                                                                            |                                                  | - |   | - |
| Increase      (decrease) in due to related party                                  |                                                                                                      | 542                                                                                               |                                                  | (116) |   | 71 |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
|                                                                              |                                                                                                      | 979,647                                                                                           |                                                  | 24,884 |   | 178,071 |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Foreign      exchange effect on cash                                              |                                                                                                      | (4,192)                                                                                           |                                                  | 76 |   | (19) |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Increase      (decrease) in cash and cash equivalents                             |                                                                                                      | 12,196                                                                                            |                                                  | (79,751) |   | 104,402 |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Cash      and cash equivalents, beginning of period                               |                                                                                                      | -                                                                                                 |                                                  | 91,947 |   | 1,482 |
|                                                                              |                                                                                                      |                                                                                              |                                                  |   |   |   |
| Cash      and cash equivalents, end of period                                     |                                                                                                      | 12,196                                                                                            |                                                  | 12,196 |   | 105,884 |

----

|                                                                                                                                                | Number      of shares issued | CapitalStock | Additional      Paid-in capital | Warrants |   Accumulated      comprehensive loss | Deficit      accumulated during the development stage | Stockholders’      equity |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|--------------|---------------------------------|----------|-------------------------------------------------|-------------------------------------------------------|---------------------------------|
|                                                                                                                                                |                         |         |                            | $        |                                            | $                                                     |                            | $ |   | $ |   | $ |   | $ |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 2 September 2003                                                                                                                    |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Shares issued for      cash                                                                                                                         |                         | 7,000,000    |                            | -        |                                            | 534                                                   |                            | - |   | - |   | - |   | 534 |
| Shares issued for      cash                                                                                                                         |                         | 200,000      |                            | -        |                                            | 38,130                                                |                            | - |   | - |   | - |   | 38,130 |
| Adjustment to number of shares      issued as a result of the acquisition of net assets of Rotoblock      Inc.    (Note      1) |                         | (7,200,000)  |                            | -        |                                            | -                                                     |                            | - |   | - |   | - |   | - |
| Shares      issued in connection with the acquisition of net assets of Rotoblock Inc.      (Notes 1 and 11)                                         |                         | 15,000,000   |                            | 15,000   |                                            | (15,000)                                              |                            | - |   | - |   | - |   | - |
| Excess      of consideration over net assets purchased from Rotoblock Inc. (Note      1)                                                            |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (138) |   | (138) |
| Foreign      currency translation adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (1,918) |   | - |   | (1,918) |
| Net loss for the      period                                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (108,443) |   | (108,443) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2004 (Unaudited)                                                                                                           |                         | 15,000,000   |                            | 15,000   |                                            | 23,664                                                |                            | - |   | (1,918) |   | (108,581) |   | (71,835) |
| Shares issued for cash ($0.05      per share)(Note 11)                                                                                              |                         | 10,000,000   |                            | 10,000   |                                            | 490,000                                               |                            | - |   | - |   | - |   | 500,000 |
| Foreign currency translation      adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (1,385) |   | - |   | (1,385) |
| Net loss for the      year                                                                                                                          |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (306,193) |   | (306,193) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2005 (Unaudited)                                                                                                           |                         | 25,000,000   |                            | 25,000   |                                            | 513,664                                               |                            | - |   | (3,303) |   | (414,774) |   | 120,587 |
| Shares issued for cash ($0.26      per share) (Note 11)                                                                                             |                         | 548,160      |                            | 548      |                                            | 142,893                                               |                            | - |   | - |   | - |   | 143,441 |
| Shares issued for services      rendered ($0.31 per share) (Note 11)                                                                                |                         | 2,418,130    |                            | 2,418    |                                            | 751,459                                               |                            | - |   | - |   | - |   | 753,877 |
| Shares      issued for inventory ($0.29 per share) (Note 11)                                                                                        |                         | 611,048      |                            | 611      |                                            | 176,593                                               |                            | - |   | - |   | - |   | 177,204 |
| Warrants      exercised ($0.25 per share) (Note 11)                                                                                                 |                         | 40,000       |                            | 40       |                                            | 9,960                                                 |                            | - |   | - |   | - |   | 10,000 |
| Stock-based      compensation                                                                                                                       |                         | -            |                            | -        |                                            | 1,901,177                                             |                            | - |   | - |   | - |   | 1,901,177 |
| Foreign      currency translation adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (950) |   | - |   | (950) |
| Net loss for the      year                                                                                                                          |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (2,767,259) |   | (2,767,259) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2006                                                                                                                       |                         | 28,617,338   |                            | 28,617   |                                            | 3,495,746                                             |                            | - |   | (4,253) |   | (3,182,033) |   | 338,077 |
| Shares issued for cash ($0.21      per share) (Note 11)                                                                                             |                         | 114,286      |                            | 114      |                                            | 23,886                                                |                            | - |   | - |   | - |   | 24,000 |
| Shares issued for services      rendered (Note 11)                                                                                                  |                         | 1,709,262    |                            | 1,709    |                                            | 190,356                                               |                            | - |   | - |   | - |   | 192,065 |
| Contribution      to capital by related parties – services                                                                                    |                         | -            |                            | -        |                                            | 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                                                                                                                       |                         | 30,440,886   |                            | 30,440   |                                            | 4,224,699                                             |                            | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |

----

|                                                                               | Number      of shares issued | CapitalStock | Additional      Paid-in capital |     Warrants | Accumulated      comprehensive loss | Deficit      accumulated during the development stage | Stockholders’            equity |
|------------------------------------------------------------------------------------|------------------------------|--------------|---------------------------------|----------------------------------|-------------------------------------|-------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                                                               |                         |         |                            | $                                |                                | $                                                     |                                                                                              | $ |   | $ |   | $ |   | $ |
|                                                                               |                         |         |                            |                             |                                |                                                  |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 30 April 2007                                                      |                         | 30,440,886   |                            | 30,440                           |                                | 4,224,699                                             |                                                                                              | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
| Shares issued for cash ($0.07      per share) (Note 11)                            |                         | 2,580,000    |                            | 2,580                            |                                | 171,781                                               |                                                                                              |  - |   | - |   | - |   | 174,361 |
|     Warrants      granted                                      |                         | -            |                            | -                                |                                | -                                                     |                                                                                              | 53,639 |   |   |   |   |   | 53,639 |
| Shares issued for services      rendered (Notes 11 and 14)                         |                         | 3,175,556    |                            | 3,176                            |                                | 173,334                                               |                                                                                              |  - |   | - |   | - |   | 176,510 |
| Contribution      to capital by related parties – services (Notes 10 and 14) |                         | -            |                            | -                                |                                | 100,000                                               |                                                                                              |  - |   | - |   | - |   | 100,000 |
| Stock-based      compensation (Notes      11 and 14)                               |                         | -            |                            | -                                |                                | -                                                     |                                                                                              | 60,664 |   | - |   | - |   | 60,664 |
| Foreign      currency translation adjustment                                       |                         | -            |                            | -                                |                                | -                                                     |                                                                                              |  - |   | (10) |   | - |   | (10) |
| Net      loss for the year                                                         |                         | -            |                            | -                                |                                | -                                                     |                                                                                              | - |   | - |   | (576,091) |   | (576,091) |
|                                                                               |                         |         |                            |                             |                                |                                                  |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 30 April 2008                                                      |                         | 36,196,442   |                            | 36,196                           |                                | 4,669,814                                             |                                                                                              | 114,303 |   | (4,268) |   | (4,621,706) |   | 194,339 |
| Shares      issued for cash ($0.04 per share) (Note 11)                            |                         | 166,667      |                            | 167                              |                                | 6,308                                                 |                                                                                              |  - |   | - |   | - |   | 6,475 |
| Warrants      granted (Note 11)                                                    |                         | -            |                            | -                                |                                | -                                                     |                                                                                              | 18,525 |   |   |   |   |   | 18,525 |
| Shares      issued for services rendered (Note 11)                                 |                         | 2,046,667    |                            | 2,047                            |                                | 241,953                                               |                                                                                              |  - |   | - |   | - |   | 244,000 |
| Shares      issued for property (Notes 4, 10,  11, and 14)               |                         | 10,000,000   |                            | 10,000                           |                                | 240,000                                               |                                                                                              |  - |   | - |   | - |   | 250,000 |
| Shares      issued for debt (Note 11)                                              |                         | 100,000      |                            | 100                              |                                | 9,900                                                 |                                                                                              | - |   | - |   | - |   | 10,000 |
| Contribution      to capital by related parties – services (Notes 11 and 14) |                         | -            |                            | -                                |                                | 75,000                                                |                                                                                              |  - |   | - |   | - |   | 75,000 |
| Stock-based      compensation(Notes      10, 11 and 14)                            |                         | -            |                            | -                                |                                | -                                                     |                                                                                              |  147,446 |   | - |   | - |   | 147,446 |
| Foreign      currency translation adjustment                                       |                         | -            |                            | -                                |                                | -                                                     |                                                                                              |  - |   | 76 |   | - |   | 76 |
| Net      loss for the period                                                       |                         | -            |                            | -                                |                                | -                                                     |                                                                                              | - |   | - |   | (609,250) |   | (609,250) |
|                                                                               |                         |         |                            |                             |                                |                                                  |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 31 January 2009                                                    |                         | 48,509,776   |                            | 48,510                           |                                | 5,242,975                                             |                                                                                              | 280,274 |   | (4,192) |   | (5,230,956) |   | 336,611 |

----

|                                                    | For      the period from the date of inception on 2 September 2003 to31      January 2009(Unaudited) | For      the threemonths      ended31      January 2009 | For      the threemonths      ended31      January2008 | For      the ninemonths      ended31      January 2009 | For      the ninemonths      ended31      January2008 |
|---------------------------------------------------------|------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------|
|                                                    |                                                                                                 | $                                                            |                                                   | $                                                           |                                                  | $ |   | $ |   | $ |
|                                                    |                                                                                                 |                                                         |                                                   |                                                        |                                                  |   |   |   |   |   |
| Consulting      fees (Notes 10, 11 and 14)              |                                                                                                 | 827,331                                                      |                                                   | 39,320                                                      |                                                  | 39,973 |   | 159,559 |   | 109,363 |
| Depreciation                                            |                                                                                                 | 4,736                                                        |                                                   | 521                                                         |                                                  | - |   | 768 |   | - |
| Foreign      exchange loss                              |                                                                                                 | 1,545                                                        |                                                   | -                                                           |                                                  | - |   | - |   | - |
| Interest                                                |                                                                                                 | 16,663                                                       |                                                   | 93                                                          |                                                  | 482 |   | 205 |   | 714 |
| Investor      relations (Note 11 and 14)                |                                                                                                 | 222,256                                                      |                                                   | 24,197                                                      |                                                  | - |   | 78,378 |   | - |
| Listing,      filing and transfer agent fees            |                                                                                                 | 44,523                                                       |                                                   | 1,320                                                       |                                                  | 4,650 |   | 8,075 |   | 6,525 |
| Management      fees (Notes 10 and 14)                  |                                                                                                 | 275,000                                                      |                                                   | 25,000                                                      |                                                  | 25,000 |   | 75,000 |   | 75,000 |
| Office      and sundry                                  |                                                                                                 | 60,165                                                       |                                                   | 2,504                                                       |                                                  | 259 |   | 11,353 |   | 818 |
| Professional      fees                                  |                                                                                                 | 383,352                                                      |                                                   | 17,580                                                      |                                                  | 10,958 |   | 53,014 |   | 47,642 |
| Public      relations and shareholder information       |                                                                                                 | 181,437                                                      |                                                   | -                                                           |                                                  | - |   | 37,033 |   | - |
| Rent                                                    |                                                                                                 | 79,205                                                       |                                                   | -                                                           |                                                  | - |   | - |   | - |
| Research      and development                           |                                                                                                 | 314,256                                                      |                                                   | -                                                           |                                                  | - |   | - |   | - |
| Stock-based      compensation(Notes      10, 11 and 14) |                                                                                                 | 2,523,998                                                    |                                                   | -                                                           |                                                  | - |   | 147,446 |   | 5,383 |
| Travel      and entertainment                           |                                                                                                 | 124,277                                                      |                                                   | 5,676                                                       |                                                  | 2,980 |   | 38,419 |   | 2,980 |
|                                                    |                                                                                                 |                                                         |                                                   |                                                        |                                                  |   |   |   |   |   |
|                                                    |                                                                                                 | 5,058,744                                                    |                                                   | 116,211                                                     |                                                  | 84,302 |   | 609,250 |   | 248,425 |

----

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

----

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

Basis of presentation

----

----

----

----

----

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

----

|                                                                     |   | Balance      at31      January 2009 |   | Balance      at30      April 2008 (Audited) |
|--------------------------------------------------------------------------|--------|-------------------------------------|--------|---------------------------------------------|
|                                                                     |   | $                                   |   | $                                           |
|                                                                     |   |                                |   |                                        |
|              Patent costs to date     |   | 108,745                             |   | 108,745                                     |
|              Accumulated depreciation |   | -                                   |   | -                                           |
|                                                                     |   |                                |   |                                        |
|                                                                     |   | 108,745                             |   | 108,745                                     |

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

|                                                      |   |    |   | Accumulated  |   | Net      book value  |
|-----------------------------------------------------------|--------|---------|--------|--------------|--------|----------------------|
|                                                      |   | Cost    |   | amortization |   | 31      January 2009 |   | 30      April 2008(Audited) |
|                                                      |   | $       |   | $            |   | $                    |   | $ |
|                                                      |   |    |   |         |   |                 |   |   |
|              Equipment |   | 2,940   |   | 395          |   | 2,545                |   | - |
|              Property  |   | 68,750  |   | 373          |   | 68,377               |   | - |
|              Land      |   | 181,250 |   | -            |   | 181,250              |   | - |
|                                                      |   |    |   |         |   |                 |   |   |
|                                                      |   | 252,940 |   | 768          |   | 252,172              |   | - |

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

----

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

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

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

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

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

----

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

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

| ii.   | During      the year ended 30 April 2005, the Company issued 10,000,000 units at a      price of $0.05 per unit.  Each unit consists of one common share      and one-half common share purchase warrant.  Each whole common      share purchase warrant entitles the holder to purchase an additional      common share at a price of $0.50 per share for a period of two years from      the date of offering.  As at 31 January 2009, none of the share      purchase warrants in this series remain  outstanding. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| iv.   | During      the year ended 30 April 2006, the Company issued 40,000 common shares at a      price of $0.25 per share upon the exercise of previously outstanding share      purchase warrants.  As at 31 January 2009,  2,960,000      share purchase warrants in this series remain  outstanding. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

----

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

| x.   | During      the year ended 30 April 2007, the Company issued 33,333 common shares for      legal services valued at $5,000. Of this amount, $868 was expensed during      the nine months ended 31 January 2009 (30 April 2008 - $1,140; cumulative      - $5,000). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

----

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

| xxii.   | During      the year ended 30 April 2008, the Company issued 1,000,000 common shares      valued at $0.05 per share for $50,000 in consulting services. Of this      amount, $24,454 was expensed during the nine months ended 31 January 2009      (30 April 2008 - $25,546, cumulative -$50,000). |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxiii.   | During      the year ended 30 April 2008, the Company issued 300,000 common shares      valued at $0.05 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. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| xxvi.   | During      the year ended 30 April 2008, the Company issued 128,538 common shares      valued at $0.13 per share for $16,710 for consulting services. Of this      amount, $643 was expensed during the nine month period ended 31 January      2009 (30 April 2008 - $16,067, cumulative -  $16,710). |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| xxviii.   | During      the year ended 30 April 2008, the Company issued 29,474 common shares      valued at $0.09 per share for $2,800 for consulting services. Of this      amount, $108 was expensed during the nine month period ended 31 January      2009 (30 April 2008 – $2,692, cumulative –  $2,800). |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxix.   | During      the year ended 30 April 2008, the Company issued 666,666 units at a price      of $0.15 per unit for total cash proceeds of $100,000.  Each      unit consists of one restricted common share and one-half common share      purchase warrant.  Each whole common share purchase warrant      entitles the holder to purchase an additional common share at a price of      $0.25 per share for a period of five years from the date of offering with      a fair value of $25,793.  As at 31 January 2009, 333,334 of the      share purchase warrants in this series remain outstanding. These shares      are restricted from trading for a period of one year as defined by Rule      144 of the United States Securities Act of1933. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxx.   | During      the year ended 30 April 2008, the Company issued 333,334 units at a price      of $0.15 per unit for total cash proceeds of $50,000.  Each unit      consists of one restricted common share and one common share purchase      warrant.  Each whole common share purchase warrant entitles the      holder to purchase an additional common share at a price of $0.25 per      share for a period of five years from the date of offering with a fair      value of $22,463.  As at 31 January 2009, 333,334 of the share      purchase warrants in this series remain outstanding. These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

| xxxiii.   | During      the year ended 30 April 2008, the Company issued 1,000,000 units valued at      $0.06 per unit for consulting services.  Each unit consists of      one restricted common share and one common share purchase      warrant.  Each whole common share purchase warrant entitles the      holder to purchase an additional common share at a price of $0.15 per      share for a period of five years from the date of offering with a fair      value of $60,664.  As at 31 January 2009, 1,000,000 of the share      purchase warrants in this series remain outstanding. These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiv.   | During      the nine month period ended 31 January 2009, the Company issued 50,000      common shares valued at $0.08 per share for $4,000 for consulting      services. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxv.         | During      the nine month period ended 31 January 2009, the Company issued 320,000      common shares valued at $0.30 per share for $96,000 in investor      relations.  Of this amount, $78,378 was expensed during the      period ended 31 January 2009 (30 April 2008 - $Nil, cumulative - $78,378),      and the remaining $17,622 was classified as prepaid expense which will be      expensed as investor relations services are received in subsequent      periods.  These shares are restricted from trading for a period      of one year as defined by Rule 144 of the United States Securities Act of      1933. |
|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxvi.   | During      the nine month period ended 31 January 2009, the Company issued 800,000      units valued at $0.08 per unit 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 $0.15 expiring 12 May      2013 with a fair value of $147,446.  As at 31 January 2009,      800,000 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      10 and 14). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxvii.   | During      the nine month period ended 31 January 2009, the Company issued 66,667      common shares valued at $0.15 per share for a $10,000 legal      retainer.  Of this amount, $7,648 was expensed during the period      ended 31 January 2009 (30 April 2008 - $Nil, cumulative - $7,648), and the      remaining $2,352 was classified as prepaid expense which will be expensed      as the legal services are received in subsequent  periods. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxviii.   | During      the nine month period ended 31 January 2009, the Company issued 50,000      common shares valued at $0.15 per 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. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxix.   | During      the nine month period ended 31 January 2009, the Company issued 160,000      common shares valued at $0.15 per share for $24,000 in consulting expense      to a related party.  (Note10) |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|            |                                                                                                                                                                                                                                                                                                                                                |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| xl.   | During      the nine month period ended 31 January 2009, the Company issued 250,000      common shares valued at $0.11 per share for $27,500 in bonus to a related      party.  These shares are restricted from trading for a period of      one year as defined by Rule 144 of the United States Securities Act of      1933. (Note 10) |

----

| xli.   | During      the nine month period ended 31 January 2009, the Company issued 166,667      units valued at $0.15 per unit for total cash proceeds of      $25,000.  Each unit consists of one restrricted common share and      one common share purchase warrant. Each whole common share purchase      warrant entitles the holder to purchase an additional common share at a      price of $0.25 per share for a period of five years from the offer date      with a fair value of $18,525. As at 31 January 2009, 166,667 of the      share purchase warrants in this series remain outstanding. These shares      are restricted from trading for a period of one year as defined by Rule      144 of the United States Securities Act of1933. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xlii.   | During      the nine month period ended 31 January 2009, the Company issued 100,000      common shares valued at $0.10 per share for $10,000 in convertible      promissory notes (Note 7). |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xliii.   | During      the nine month period ended 31 January 2009, the Company issued 100,000      common shares valued at $0.06 per share for $6,000 in consulting      expense.  Of this amount, $1,808 was expensed during the period      (30 April 2008 - $Nil, cumulative - $1,808), and the remaining $4,192 was      classified as prepaid expense which will be expensed as consulting      services in subsequent periods. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xliv.   | During      the nine month period ended 31 January 2009, the Company issued 10,000,000      shares of common stock valued at $0.025 per share purchase for land and      building from a related party valued at $250,000 (Notes 4, 10 and      14).   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. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xlv.   | During      the nine month period ended 31 January 2009, the Company issued 250,000      common shares valued at $0.02 per share for a $5,000 legal      retainer.  Of this amount, $Nil was expensed during the period      ended 31 January 2009 (30 April 2008 - $Nil, cumulative - $Nil), and the      remaining $5,000 was classified as prepaid expense which will be expensed      as the legal services are received in subsequent  periods. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Date      Issued       |   | Numberof      shares |   | Value     |   | Priceper      share                | Service                 |
|------------------------|--------|----------------------|--------|-----------|--------|------------------------------------|-------------------------|
|                   |   |                 |   | $         |   | $                                  |                    |
| 24      August 2005    |   | 250,000              |   | 95,000    |   | 0.38                               | Consulting*             |
| 24      August 2005    |   | 25,000               |   | 9,500     |   | 0.38                               | Computer      and IT    |
| 24      August 2005    |   | 50,000               |   | 19,000    |   | 0.38                               | Public      relations   |
| 24      August 2005    |   | 25,000               |   | 9,500     |   | 0.38                               | Investor      relations |
| 24      August 2005    |   | 300,000              |   | 114,000   |   | 0.38                               | Legal                   |
| 24      August 2005    |   | 250,000              |   | 95,000    |   | 0.38                               | Consulting*             |
| 24      August 2005    |   | 25,000               |   | 9,500     |   | 0.38                               | Accounting              |
| 28      September 2005 |   | 104,171              |   | 29,168    |   | 0.28                               | Investor      relations |
| 29      September 2005 |   | 100,000              |   | 25,000    |   | 0.25                               | Consulting              |
| 29      September 2005 |   | 150,000              |   | 37,500    |   | 0.25                               | Consulting*             |
| 27      October 2005   |   | 327,586              |   | 95,000    |   | 0.29                               | Investor      relations |
| 28      October 2005   |   | 99,360               |   | 24,840    |   | 0.25                               | Rent                    |
| 1      November 2005   |   | 50,000               |   | 14,000    |   | 0.28                               | Public      relations   |
| 1      November 2005   |   | 125,000              |   | 35,000    |   | 0.28                               | Consulting              |
| 2      November 2005   |   | 80,000               |   | 23,200    |   | 0.29                               | Consulting              |
| 14      November 2005  |   | 100,000              |   | 50,000    |   | 0.50                               | Printing                |
| 12      January 2006   |   | 250,000              |   | 37,500    |   | 0.15                               | Consulting              |
| 12      January 2006   |   | 16,667               |   | 2,500     |   | 0.15                               | Legal                   |
| 25      January 2006   |   | 68,287               |   | 21,169    |   | 0.31                               | Commission      bonus   |
| 7      February 2006   |   | 22,059               |   | 7,500     |   | 0.34                               | Consulting              |
| 30      June 2006      |   | 24,513               |   | 4,658     |   | 0.19                               | Consulting              |
| 3      July 2006       |   | 150,000              |   | 28,500    |   | 0.19                               | Investor      relations |
| 10      August 2006    |   | 33,333               |   | 5,000     |   | 0.15                               | Legal                   |
| 3      October 2006    |   | 57,820               |   | 5,782     |   | 0.10                               | Consulting              |
| 20      October 2006   |   | 69,000               |   | 6,210     |   | 0.09                               | Consulting              |
| 10      November 2006  |   | 75,000               |   | 7,500     |   | 0.10                               | Public      relations   |
| 29      November 2006  |   | 800,000              |   | 96,000    |   | 0.12                               | Public      relations   |
| 22      December 2006  |   | 192,363              |   | 15,389    |   | 0.08                               | Rent                    |
| 2      January 2007    |   | 135,850              |   | 10,868    |   | 0.08                               | Consulting              |
| 7      February 2007   |   | 93,750               |   | 7,500     |   | 0.08                               | Public      relations   |
| 3      April 2007      |   | 77,633               |   | 4,658     |   | 0.06                               | Consulting              |
| 29      October 2007   |   | 400,000              |   | 8,000     |   |      0.02 | Consulting*             |
| 30      October 2007   |   | 1,000,000            |   | 50,000    |   | 0.05                               | Consulting              |
| 30      October 2007   |   | 300,000              |   | 15,000    |   | 0.05                               | Public      relations   |
| 9      November 2007   |   | 128,538              |   | 16,710    |   | 0.13                               | Consulting              |
| 10      December 2007  |   | 84,211               |   | 8,000     |   | 0.09                               | Consulting*             |
| 11      December 2007  |   | 29,474               |   | 2,800     |   | 0.09                               | Consulting              |
| 7      February 2008   |   | 100,000              |   | 8,000     |   | 0.08                               | Consulting*             |
| 1      April 2008      |   | 133,333              |   | 8,000     |   | 0.06                               | Consulting*             |
| 1      April 2008      |   | 1,000,000            |   | 60,000    |   | 0.06                               | Consulting*             |
| 20      May 2008       |   | 50,000               |   | 4,000     |   | 0.08                               | Consulting              |
| 20      May 2008       |   | 320,000              |   | 96,000    |   | 0.30                               | Investor      relations |
| 20      May 2008       |   | 800,000              |   | 64,000    |   | 0.08                               | Consulting*             |
| 9      June 2008       |   | 66,667               |   | 10,000    |   | 0.15                               | Legal                   |
| 9      June 2008       |   | 50,000               |   | 7,500     |   | 0.15                               | Public      relations   |
| 9      June 2008       |   | 133,333              |   | 20,000    |   | 0.15                               | Consulting*             |
| 3      July 2008       |   | 250,000              |   | 27,500    |   | 0.11                               | Consulting*             |
| 4      September 2008  |   | 26,667               |   | 4,000     |   | 0.15                               | Consulting*             |
| 20      October 2008   |   | 100,000              |   | 6,000     |   | 0.06                               | Consulting              |
| 19      January 2009   |   | 250,000              |   | 5,000     |   | 0.02                               | Legal                   |
| Total                  |   | 9,349,615            |   | 1,366,452 |   |                               |                    |

----

|                             |   | Exercise      price |   | Numberof      warrants |   | Remainingcontractual      life (years) |
|----------------------------------|--------|---------------------|--------|------------------------|--------|----------------------------------------|
|                             |   | $                   |   |                   |   |                                   |
|                             |   |                |   |                   |   |                                   |
|     Warrants |   | 0.25                |   | 2,960,000              |   | 1.96                                   |
|     Warrants |   | 0.15                |   | 2,500,000              |   | 2.86                                   |
|     Warrants |   | 0.25                |   | 380,000                |   | 3.60                                   |
|     Warrants |   | 0.25                |   | 333,334                |   | 3.98                                   |
|     Warrants |   | 0.15                |   | 1,000,000              |   | 4.17                                   |
|     Warrants |   | 0.25                |   | 333,334                |   | 4.19                                   |
|     Warrants |   | 0.15                |   | 800,000                |   | 4.31                                   |
|     Warrants |   | 0.25                |   | 166,667                |   | 4.43                                   |
|                             |   |                |   |                   |   |                                   |
|                             |   |                |   | 8,473,335              |   |                                   |

|                                                                                                                                 |   | Number      of warrants |   | Weighted      average exercise price |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                                                                                 |   |                    |   | $                                    |
|                                                                                                                                 |   |                    |   |                                 |
|     Outstanding and      exercisable at 30 April 2007                                                            |   | 11,962,160              |   | 0.45                                 |
|                                                                                                                                 |   |                    |   |                                 |
|     Granted                                                                                                      |   | 713,334                 |   | 0.25                                 |
|     Exercised                                                                                                    |   | -                       |   | -                                    |
|     Expired                                                                                                      |   | (1,502,160)             |   | 0.50                                 |
|                                                                                                                                 |   |                    |   |                                 |
|     Outstanding and      exercisable at 31 January 2008                                                          |   | 11,173,334              |   | 0.43                                 |
|                                                                                                                                 |   |                    |   |                                 |
|     Weighted      average fair value of warrants granted during the period ended      31 January 2008  |   |                    |   | 0.04                                 |
|                                                                                                                                 |   |                    |   |                                 |
|     Outstanding and      exercisable at 30 April 2008                                                            |   | 7,506,668               |   | 0.34                                 |
|                                                                                                                                 |   |                    |   |                                 |
|     Granted                                                                                                      |   | 966,667                 |   | 0.17                                 |
|     Exercised                                                                                                    |   | -                       |   | -                                    |
|     Expired                                                                                                      |   | -                       |   | -                                    |
|                                                                                                                                 |   |                    |   |                                 |
|     Outstanding and      exercisable at 31 January 2009                                                          |   | 8,473,335               |   | 0.32                                 |
|                                                                                                                                 |   |                    |   |                                 |
|     Weighted      average fair value of warrants granted during the nine month period ended      31 January 2009 |   |                    |   | 0.17                                 |

----

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

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

|                                                                                    |   | For      the nine month period ended 31      January 2009 |   | For      the nine month period ended 31      January2008 |
|-----------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                                                                                    |   | $                                                                   |   | $                                                                  |
|                                                                                    |   |                                                                |   |                                                               |
|     Deferred tax      asset attributable to:                        |   |                                                                |   |                                                               |
|     Current      operations                                         |   | 207,145                                                             |   | 84,465                                                             |
|     Contributions      to capital by related party – expenses |   | (25,500)                                                            |   | (25,500)                                                           |
|     Stock-based      compensation                                   |   | (50,132)                                                            |   | (1,830)                                                            |
|     Non-deductible      meals and entertainment                     |   | (6,531)                                                             |   | -                                                                  |
|     Less:      Change in valuation allowance                        |   | (124,982)                                                           |   | (57,135)                                                           |
|                                                                                    |   |                                                                |   |                                                               |
|     Net      refundable amount                                      |   | -                                                                   |   | -                                                                  |

----

|                                                                        |   | As      at31      January 2009  |   | As      at30      April 2008 (Audited) |
|-----------------------------------------------------------------------------|--------|-------------------------------------------|--------|----------------------------------------|
|                                                                        |   | $                                         |   | $                                      |
|                                                                        |   |                                      |   |                                   |
|             Net operating loss carry forward  |   | 2,412,749                                 |   | 2,045,154                              |
|                                                                        |   |                                      |   |                                   |
|             Statutory federal income tax rate |   | 34%                                       |   | 34%                                    |
|             Effective income tax rate         |   | 0%                                        |   | 0%                                     |
|                                                                        |   |                                      |   |                                   |
|             Deferred tax asset                |   | 820,334                                   |   | 695,352                                |
|             Less: Valuation allowance         |   | (820,334)                                 |   | (695,352)                              |
|                                                                        |   |                                      |   |                                   |
|             Net deferred tax asset            |   | -                                         |   | -                                      |

| i.   | On      30 March 2004, the Company entered into a loan agreement, as amended, for      $500,000, of which $350,000 was received by 30 November      2004.  During the 2006 fiscal year, the principal portion of the      loan was paid out in full.  The loan was secured by all the      assets of the Company, bore interest at 5% per annum and was payable on      demand.  Accrued interest on the loan has been calculated at      $11,705; however, this amount has not yet been paid to the lender (Note      6). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| iii.   | The      Company has an obligation to issue 1,875,000 common shares valued at $0.02      per share for $37,500 to related parties for consulting services received      during the nine month period ended 31 January 2009 (Note      15).  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. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                            |   | For      the period from the date of inception on 2 September 2003 to31      January2009(Unaudited) |   |      For      the ninemonth      period ended31      January 2009 |   |      For      the ninemonth      periodended31      January 2008 |
|-------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|
|                                            |   | $                                                                                                   |   | $                                                                                               |   | $                                                                                              |
|                                            |   |                                                                                                |   |                                                                                            |   |                                                                                           |
| Cash      paid during the year for interest     |   | 11,362                                                                                              |   | -                                                                                               |   | -                                                                                              |
| Cash      paid during the year for income taxes |   | 1,790                                                                                               |   | 1,790                                                                                           |   | -                                                                                              |

| ·   | Increase      the authorized capital stock to 200,000,000 shares of common stock and      50,000,000 shares of preferredstock. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Grant      authority to the Board of Directors to establish the rights, preferences,      privileges and limitations of any class of common stock or preferred stock      without any further approval of the  stockholders. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Grant      authority to the Board of Directors to undertake future reverse stock      splits of the Company’s issued and outstanding common stock or preferred      stock without further approval of the stockholders as permitted under the      Nevada Business Corporation Act. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

Item 1A. RiskFactors 

----

----

|     |   | Exercise      price |   | Number      of      warrants |   | Remaining      contractual      life (years) |
|----------|--------|---------------------|--------|------------------------------|--------|----------------------------------------------|
|     |   | $                   |   |                         |   |                                         |
|     |   |                |   |                         |   |                                         |
| Warrants |   | 0.25                |   | 2,960,000                    |   | 1.96                                         |
| Warrants |   | 0.15                |   | 2,500,000                    |   | 2.86                                         |
| Warrants |   | 0.25                |   | 380,000                      |   | 3.60                                         |
| Warrants |   | 0.25                |   | 333,334                      |   | 3.98                                         |
| Warrants |   | 0.15                |   | 1,000,000                    |   | 4.17                                         |
| Warrants |   | 0.25                |   | 333,334                      |   | 4.19                                         |
| Warrants |   | 0.15                |   | 800,000                      |   |  4.31                                   |
| Warrants |   | 0.25                |   | 166,667                      |   | 4.43                                         |
|     |   |                |   |                         |   |                                         |
|     |   |                |   | 8,473,335                    |   |                                         |

|                                                                                                         |   | Number      of warrants |   | Weighted      average exercise price |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                                                         |   |                    |   | $                                    |
|                                                                                                         |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2007                                                            |   | 11,962,160              |   | 0.45                                 |
|                                                                                                         |   |                    |   |                                 |
| Granted                                                                                                      |   | 713,334                 |   | 0.25                                 |
| Exercised                                                                                                    |   | -                       |   | -                                    |
| Expired                                                                                                      |   | (1,502,160)             |   | 0.50                                 |
|                                                                                                         |   |                    |   |                                 |
| Outstanding      and exercisable at 31 January 2008                                                          |   | 11,173,334              |   | 0.43                                 |
|                                                                                                         |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the period ended      31 January 2008       |   |                    |   | 0.04                                 |
|                                                                                                         |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2008                                                            |   | 7,506,668               |   | 0.34                                 |
|                                                                                                         |   |                    |   |                                 |
| Granted                                                                                                      |   | 966,667                 |   | 0.17                                 |
| Exercised                                                                                                    |   | -                       |   | -                                    |
| Expired                                                                                                      |   | -                       |   | -                                    |
|                                                                                                         |   |                    |   |                                 |
| Outstanding      and exercisable at 31 January 2009                                                          |   | 8,473,335               |   | 0.32                                 |
|                                                                                                         |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the nine month period ended      31 January 2009 |   |                    |   | 0.17                                 |

----

| ·   | Increase      the authorized capital stock to 200,000,000 shares of common stock and      50,000,000 shares of preferred stock; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                            |

| ·   | Grant      authority to the Board of Directors to establish the rights, preferences,      privileges and limitations of any class of common stock or preferred stock      without any further approval of the stockholders; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                                                                                                                            |

| ·   | Grant      authority to the Board of Directors to undertake future reverse stock      splits of the company’s issued and outstanding common stock or preferred      stock without further approval of the stockholders as permitted under the      Nevada Business Corporation Act. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----