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|     |                                                                                  | Page   |
|----------|---------------------------------------------------------------------------------------|--------|
|     | PART I - FINANCIAL INFORMATION                                                        |   |
|     |                                                                                  |   |
| ITEM 1.  | Interim Consolidated Financial Statements                                             | 3      |
|     |                                                                                  |   |
| ITEM 2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations | 32     |
|     |                                                                                  |   |
| ITEM 3.  | Quantitative and Qualitative Disclosures About Market Risk                            | 33     |
|     |                                                                                  |   |
| ITEM 4T. | Controls and Procedures                                                               | 33     |
|     |                                                                                  |   |
|     | PART II - OTHER INFORMATION                                                           |   |
|     |                                                                                  |   |
| ITEM 1.  | Legal Proceedings                                                                     | 34     |
|     |                                                                                  |   |
| ITEM 1A. | Risk Factors                                                                          | 34     |
|     |                                                                                  |   |
| ITEM 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                           | 34     |
|     |                                                                                  |   |
| 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                                                                        | 36     |

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|                                                              |   | As at31 October 2010 |   |  As at30 April2010(Audited) |
|-------------------------------------------------------------------|--------|---------------------------|--------|----------------------------------|
|                                                              |   | $                         |   | $                                |
| Assets                                                            |   |                      |   |                             |
|                                                              |   |                      |   |                             |
| Current                                                           |   |                      |   |                             |
| Cash and cash equivalents                                         |   | 612,448                   |   | 925,070                          |
| Accounts receivable                                               |   | 218                       |   | 220                              |
| Prepaid expenses (Note 10)                                        |   | 54,090                    |   | 158,998                          |
|                                                              |   |                      |   |                             |
|                                                              |   | 666,756                   |   | 1,084,288                        |
|                                                              |   |                      |   |                             |
| Available-for-sale investment (Note 4)                            |   | 1,234,565                 |   | 1,231,929                        |
|                                                              |   |                      |   |                             |
| Property and equipment (Note 5)                                   |   | 116,765                   |   | 124,812                          |
|                                                              |   |                      |   |                             |
|                                                              |   | 2,018,086                 |   | 2,441,029                        |
| Liabilities                                                       |   |                      |   |                             |
|                                                              |   |                      |   |                             |
| Current                                                           |   |                      |   |                             |
| Accounts payable and accrued liabilities (Note 6)                 |   | 222,090                   |   | 215,115                          |
| Due to related party (Note 8)                                     |   | 655                       |   | 663                              |
| Convertible promissory note (Notes 4 and 7)                  |   | -                         |   | 2,025,644                        |
|                                                              |   |                      |   |                             |
|                                                              |   | 222,745                   |   | 2,241,422                        |
|                                                              |   |                      |   |                             |
| Stockholders’ equity                                        |   |                      |   |                             |
| Capital stock (Note 10)                                           |   |                      |   |                             |
| Authorized                                                        |   |                      |   |                             |
| 200,000,000 common shares, par value $0.001                       |   |                      |   |                             |
| 50,000,000 preferred shares, par value $0.001                     |   |                      |   |                             |
| Issued and outstanding                                            |   |                      |   |                             |
| 31 October 2010 – 7,453,824 common shares, par value $0.001 |   |                      |   |                             |
| 30 April 2010 – 4,622,307 common shares, par value $0.001   |   | 7,454                     |   | 4,622                            |
| Additional paid-in capital                                        |   | 7,918,772                 |   | 5,620,014                        |
| Warrants                                                          |   | 1,373,270                 |   | 1,421,526                        |
| Share subscriptions received in advance (Note 10)                 |   | -                         |   | 250,000                          |
| Accumulated other comprehensive income                            |   | 230,326                   |   | 227,684                          |
| Deficit, accumulated during the development stage                 |   | (7,734,481)               |   | (7,324,239)                      |
|                                                              |   |                      |   |                             |
|                                                              |   | 1,795,341                 |   | 199,607                          |
|                                                              |   |                      |   |                             |
|                                                              |   | 2,018,086                 |   | 2,441,029                        |

----

----

|                                                                           |          |  For the period from the date of inception on 2 September 2003 to31 October 2010 | For the three month period ended31 October2010 | For the three month period ended31 October2009 | For thesixmonth period ended31 October2010 | For thesix month period ended31 October2009 |
|--------------------------------------------------------------------------------|---------------|--------------------------------------------------------------------------------------------|-----------------------------------------------------|------------------------------------------------|-------------------------------------------------|--------------------------------------------------|
|                                                                           |          | $                                                                                          | $                                                   | $                                              | $                                               | $                                                |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Expenses                                                                       |          |                                                                                       |                                                |                                           |                                            |                                             |
| General and administrative (Schedule 1)                                        |          | 7,490,346                                                                                  | 195,677                                             | 684,248                                        | 445,680                                         | 771,884                                          |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Net loss before other items                                                    |          | (7,490,346)                                                                                | (195,677)                                           | (684,248)                                      | (445,680)                                       | (771,884)                                        |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Other items                                                                    |          |                                                                                       |                                                |                                           |                                            |                                             |
| Excess of consideration over net assets purchased from Rotoblock Inc. (Note 1) | (138)         | -                                                                                          | -                                                   | -                                              | -                                               |
| Other income                                                                   |          | 5,520                                                                                      | -                                                   | -                                              | 5,520                                           | -                                                |
| Forgiveness of debt (Notes 7 and 13)                                           |          | 29,918                                                                                     | -                                                   | -                                              | 29,918                                          | -                                                |
| Gain on disposal of property (Notes 5, 9, 10 and 13)                           | 1,384         | -                                                                                          | -                                                   | -                                              | 1,384                                           |
| Write-off of patents (Note 3)                                                  |          | (108,745)                                                                                  | -                                                   | -                                              | -                                               | -                                                |
| Write-off of property and equipment                                            |          | (9,870)                                                                                    | -                                                   | -                                              | -                                               | -                                                |
| Write-off of related party receivable                                          |          | (162,204)                                                                                  | -                                                   | -                                              | -                                               | -                                                |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Loss for the period                                                            |          | (7,734,481)                                                                                | (195,677)                                           | (684,248)                                      | (410,242)                                       | (770,500)                                        |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Basic and diluted loss per common share                                        |          |                                                                                       | (0.03)                                              | (0.56)                                         | (0.06)                                          | (0.71)                                           |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Weighted average number of common shares used in pershare calculations         | 6,586,540     | 1,220,144                                                                                  | 6,386,668                                           | 1,088,376                                      |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Comprehensive loss                                                             |          |                                                                                       |                                                |                                           |                                            |                                             |
| Loss for the period                                                            |          | (7,734,481)                                                                                | (195,677)                                           | (684,248)                                      | (410,242)                                       | (770,500)                                        |
| Foreign currency translation adjustment                                        |          | (4,239)                                                                                    | (6)                                                 | (123)                                          | 6                                               | (47)                                             |
| Unrealized gain (loss) on available-for-sale investment(Notes 4 and 14)        |  234,565 |  (162,019)                                                                            | -                                                   | 2,636                                          | -                                               |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Comprehensive loss for the period                                              |          | (7,504,155)                                                                                | (357,702)                                           | (684,371)                                      | (407,600)                                       | (770,547)                                        |
|                                                                           |          |                                                                                       |                                                |                                           |                                            |                                             |
| Comprehensive loss per common share                                            |          |                                                                                       | (0.05)                                              | (0.56)                                         | (0.06)                                          | (0.71)                                           |

----

----

|                                                                                    |        | For the period from the date of inception on 2 September 2003 to31 October 2010 |  For the three month period ended31 October2010 |    For the three month period ended31 October2009 |  For thesixmonth period ended31 October2010 |    For thesixmonth period ended31 October2009 |
|-----------------------------------------------------------------------------------------|-------------|--------------------------------------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------------------|
|                                                                                    |        | $                                                                                    | $                                                         | $                                                                     | $                                                     | $                                                                 |
| Cash used in operating activities                                                       |        |                                                                                 |                                                      |                                                                  |                                                  |                                                              |
| Loss for the period                                                                     |        | (7,734,481)                                                                          | (195,677)                                                 | (684,248)                                                             | (410,242)                                             | (770,500)                                                         |
| Adjustments to reconcile loss to net cash used by operating activities:                 |        |                                                                                 |                                                      |                                                                  |                                                  |
| Contributions to capital by related party – expenses (Notes 9 and 13)             | 300,000     | -                                                                                    | 25,000                                                    | -                                                                     | 50,000                                                |
| Depreciation (Note 5)                                                                   |        | 16,527                                                                               | 4,056                                                     | 121                                                                   | 8,047                                                 | 750                                                               |
| Forgiveness of debt (Notes 7 and 13)                                                    |        | (29,918)                                                                             | -                                                         | -                                                                     | (29,918)                                              | -                                                                 |
| Gain on disposal of property (Notes 5, 9, 10 and 13)                                    | (1,384)     | -                                                                                    | -                                                         | -                                                                     | (1,384)                                               |
| Non-cash interest (Notes 7 and 13)                                                      |        | 41,623                                                                               | -                                                         | -                                                                     | 4,274                                                 | -                                                                 |
| Shares issued for services (Notes 9, 10 and 13)                                         |        | 2,167,053                                                                            | -                                                         | 48,776                                                                | -                                                     | 89,502                                                            |
| Stock-based compensation (Notes 9, 10 and 13)                                           |        | 3,157,726                                                                            | -                                                         | 405,000                                                               | -                                                     | 408,728                                                           |
| Write-off of patents (Note 3)                                                           |        | 108,745                                                                              | -                                                         | -                                                                     | -                                                     | -                                                                 |
| 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                                              |        | (218)                                                                                | (3)                                                       | (3)                                                                   | 2                                                     | (24)                                                              |
| (Increase) decrease in prepaid expenses                                                 |        | (28,018)                                                                             | 48,769                                                    | -                                                                     | 104,908                                               | -                                                                 |
|     Increase (decrease) in accounts payable and accrued liabilities | 210,387     | (12,083)                                                                             | 124,753                                                   | 6,975                                                                 | 124,433                                               |
|     Increase (decrease) in due to related party (Note 8)            | 655         | 9                                                                                    | 8                                                         | (8)                                                                   | -                                                     |
|                                                                                    | (1,604,229) | (154,929)                                                                            | (80,593)                                                  | (315,962)                                                             | (98,495)                                              |
| Cash flows used in investing activities                                                 |        |                                                                                 |                                                      |                                                                  |                                                  |                                                              |
| Purchase of equipment (Note 5)                                                          |        | (16,778)                                                                             | -                                                         | -                                                                     | -                                                     | -                                                                 |
| Investment in Samyang Optics Co. Ltd. (Note 4)                                          |        | (1,000,000)                                                                          | -                                                         | -                                                                     | -                                                     | -                                                                 |
| Purchase of patents (Note 3)                                                            |        | (108,745)                                                                            | -                                                         | -                                                                     | -                                                     | -                                                                 |
|                                                                                    |        | (1,125,523)                                                                          | -                                                         | -                                                                     | -                                                     | -                                                                 |
| Cash flows from financing activities                                                    |        |                                                                                 |                                                      |                                                                  |                                                  |                                                              |
| Common shares issued for cash (Note 10)                                                 |        | 1,000,941                                                                            | -                                                         | 100,000                                                               | -                                                     | 114,000                                                           |
| Warrants granted for cash (Note 10)                                                     |        | 72,164                                                                               | -                                                         | -                                                                     | -                                                     | -                                                                 |
| Warrants exercised                                                                      |        | 13,334                                                                               | 2,501                                                     | -                                                                     | 3,334                                                 | -                                                                 |
| Convertible promissory note payable (Notes 7 and 13)                                    | 2,010,000   | -                                                                                    | -                                                         | -                                                                     | -                                                     |
| Advances payable                                                                        | -           | -                                                                                    | -                                                         | -                                                                     | 71                                                    |
| Share subscriptions received in advance (Note 10)                                       | 250,000     | -                                                                                    | -                                                         | -                                                                     | -                                                     |
|                                                                                    |        | 3,346,439                                                                            | 2,501                                                     | 100,000                                                               | 3,334                                                 | 114,071                                                           |
|                                                                                    |        |                                                                                 |                                                      |                                                                  |                                                  |                                                              |
| Foreign exchange effect on cash                                                         |        | (4,239)                                                                              | (6)                                                       | (5)                                                                   | 6                                                     | (47)                                                              |
|                                                                                    |        |                                                                                 |                                                      |                                                                  |                                                  |                                                              |
| Increase (decrease) in cash and cash equivalents                                        |        | 612,448                                                                              | (152,434)                                                 | 19,402                                                                | (312,622)                                             | 15,529                                                            |
|                                                                                    |        |                                                                                 |                                                      |                                                                  |                                                  |                                                              |
| Cash and cash equivalents, beginning of period                                          |        | -                                                                                    | 764,882                                                   | 912                                                                   | 925,070                                               | 4,785                                                             |
|                                                                                    |        |                                                                                 |                                                      |                                                                  |                                                  |                                                              |
| Cash and cash equivalents, end of period                                                |        | 612,448                                                                              | 612,448                                                   | 20,314                                                                | 612,448                                               | 20,314                                                            |
|                                                                                    |        |                                                                                 |                                                      |                                                                  |                                                  |                                                              |

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|                                                                                                          | Number of shares issued | Capitalstock | Additional paid-in capital | Warrants |   Accumulated other comprehensive income (loss) |  Deficit accumulated during the development stage | Stockholders’ equity |
|---------------------------------------------------------------------------------------------------------------|-------------------------|--------------|----------------------------|----------|-----------------------------------------------------------|--------------------------------------------------------|----------------------------|
|                                                                                                          |                    |         |                       | $        |                                                      | $                                                      |                       | $ |   | $ |   | $ |   | $ |
|                                                                                                          |                    |         |                       |     |                                                      |                                                   |                       |   |   |   |   |   |   |   |
| Balance at 2 September 2003 (inception)                                                                       | -                       |         | -                          |     | -                                                         |                                                   | -                          |   | - |   | - |   | - |
| Shares issued for cash                                                                                        |                    | 140,000      |                       | -        |                                                      | 534                                                    |                       | - |   | - |   | - |   | 534 |
| Shares issued for cash                                                                                        |                    | 4,000        |                       | -        |                                                      | 38,130                                                 |                       | - |   | - |   | - |   | 38,130 |
| Adjustment to number of shares issued as a result of the acquisition of net assets of Rotoblock Inc. (Note 1) | (144,000)               |         | -                          |     | -                                                         |                                                   | -                          |   | - |   | - |   | - |
| Shares issued in connection with the acquisition of net assets of Rotoblock Inc. (Note 1)                     |                    | 300,000      |                       | 300      |                                                      | (300)                                                  |                       | - |   | - |   | - |   | - |
| Excess of consideration over net assetspurchased from Rotoblock Inc. (Note 1)                                 | -                       |         | -                          |     | -                                                         |                                                   | -                          |   | - |   | (138) |   | (138) |
| Foreign currency translation adjustment                                                                       | -                       |         | -                          |     | -                                                         |                                                   | -                          |   | (1,918) |   | - |   | (1,918) |
| Net loss for the period                                                                                       |                    | -            |                       | -        |                                                      | -                                                      |                       | - |   | - |   | (108,443) |   | (108,443) |
|                                                                                                          |                    |         |                       |     |                                                      |                                                   |                       |   |   |   |   |   |   |   |
| Balance at 30 April 2004                                                                                      | 300,000                 |         | 300                        |     | 38,364                                                    |                                                   | -                          |   | (1,918) |   | (108,581) |   | (71,835) |
|     Shares issued for cash ($2.50 per share)                                              | 200,000                 |         | 200                        |     | 499,800                                                   |                                                   | -                          |   | - |   | - |   | 500,000 |
|     Foreign currency translation adjustment                                               | -                       |         | -                          |     | -                                                         |                                                   | -                          |   | (1,385) |   | - |   | (1,385) |
| Net loss for the year                                                                                         |                    | -            |                       | -        |                                                      | -                                                      |                       | - |   | - |   | (306,193) |   | (306,193) |
|                                                                                                          |                    |         |                       |     |                                                      |                                                   |                       |   |   |   |   |   |   |   |
| Balance at 30 April 2005                                                                                      | 500,000                 |         | 500                        |     | 538,164                                                   |                                                   | -                          |   | (3,303) |   | (414,774) |   | 120,587 |
|     Shares issued for cash ($13.08 per share)                                             | 10,963                  |         | 11                         |     | 143,430                                                   |                                                   | -                          |   | - |   | - |   | 143,441 |
| Shares issued for services rendered ($15.59 per share)                                                        |                    | 48,363       |                       | 48       |                                                      | 753,829                                                |                       | - |   | - |   | - |   | 753,877 |
| Shares issued for inventory ($14.50 per share)                                                                |                    | 12,221       |                       | 12       |                                                      | 177,192                                                |                       | - |   | - |   | - |   | 177,204 |
|     Warrants exercised ($12.50 per share)                                                 | 800                     |         | 1                          |     | 9,999                                                     |                                                   | -                          |   | - |   | - |   | 10,000 |
| Stock-based compensation                                                                                      |                    | -            |                       | -        |                                                      | 1,901,177                                              |                       | - |   | - |   | - |   | 1,901,177 |
|     Foreign currency translation adjustment                                               | -                       |         | -                          |     | -                                                         |                                                   | -                          |   | (950) |   | - |   | (950) |
| Net loss for the year                                                                                         |                    | -            |                       | -        |                                                      | -                                                      |                       | - |   | - |   | (2,767,259) |   | (2,767,259) |
|                                                                                                          |                    |         |                       |     |                                                      |                                                   |                       |   |   |   |   |   |   |   |
| Balance at 30 April 2006                                                                                      | 572,347                 |         | 572                        |     | 3,523,791                                                 |                                                   | -                          |   | (4,253) |   | (3,182,033) |   | 338,077 |
| Shares issued for cash ($10.50 per share)                                                                     | 2,286                   |         | 2                          |     | 23,998                                                    |                                                   | -                          |   | - |   | - |   | 24,000 |
| Shares issued for services rendered ($5.62 per share)                                                         |                    | 34,185       |                       | 34       |                                                      | 192,031                                                |                       | - |   | - |   | - |   | 192,065 |
| Contribution to capital by related parties – services                                                   |                    | -            |                       | -        |                                                      | 100,000                                                |                       | - |   | - |   | - |   | 100,000 |
| Stock-based compensation                                                                                      |                    | -            |                       | -        |                                                      | 414,711                                                |                       | - |   | - |   | - |   | 414,711 |
| Foreign currency translation adjustment                                                                       | -                       |         | -                          |     | -                                                         |                                                   | -                          |   | (5) |   | - |   | (5) |
| Net loss for the year                                                                                         |                    | -            |                       | -        |                                                      | -                                                      |                       | - |   | - |   | (863,582) |   | (863,582) |
|                                                                                                          |                    |         |                       |     |                                                      |                                                   |                       |   |   |   |   |   |   |   |
| Balance at 30 April 2007                                                                                      |                    | 608,818      |                       | 608      |                                                      | 4,254,531                                              |                       | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
|                                                                                                          |                    |         |                       |     |                                                      |                                                   |                       |   |   |   |   |   |   |   |

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|                                                                           |    | Number of shares issued |    | Capitalstock      |    | Additional paid-in capital |    |    Warrants |          | Sharesubscriptions received in advance |    | Accumulated other comprehensive income (loss) |    | Deficit accumulated during the development stage |          | Stockholders’            equity |
|--------------------------------------------------------------------------------|---------|-------------------------|---------|-------------------|---------|----------------------------|---------|----------------------------|---------------|----------------------------------------|---------|-----------------------------------------------|---------|--------------------------------------------------|---------------|---------------------------------------------------------------------------------------------------|
|                                                                           |    |                    |    | $                 |    | $                          |    | $                          |          | $                                      |    | $                                             |    | $                                                |          | $                                                                                                 |
|                                                                           |    |                    |    |              |    |                       |    |                       |          |                                   |    |                                          |    |                                             |          |                                                                                              |
| Balance at 30 April 2007                                                       |    | 608,818                 |    | 608               |    | 4,254,531                  |    | -                          |          | -                                      |    | (4,258)                                       |    | (4,045,615)                                      |          | 205,266                                                                                           |
| Shares issued for cash ($3.38 per share)                                       |    |  51,600            |    |  52          |    |  174,309              |    |  -                    |          |  -                                |    |  -                                       |    |  -                                          |          |  174,361                                                                                     |
|     Warrants granted                                       |    | -                       |    | -                 |    | -                          |    | 53,639                     |          | -                                      |    | -                                             |    | -                                                |          | 53,639                                                                                            |
| Shares issued for services rendered ($2.78 per share) (Notes 10 and 13)        |    |   63,511      |    |   64    |    |   176,446        |    |   -              |          |   -                          |    |   -                                 |    |   -                                    |          |   176,510                                                                               |
| Contribution to capital by related parties – services                    |    |   -           |    |   -     |    |   100,000        |    |   -              |          |   -                          |    |   -                                 |    |   -                                    |          |   100,000                                                                               |
| Stock-based compensation                                                       |    |  -                 |    |  -           |    |  -                    |    |  60,664               |          |  -                                |    |  -                                       |    |  -                                          |          |  60,664                                                                                      |
| Foreign currency translation adjustment                                        |    |  -                 |    |  -           |    |  -                    |    |  -                    |          |  -                                |    |  (10)                                    |    |  -                                          |          |  (10)                                                                                        |
| Net loss for the year                                                          |    | -                       |    | -                 |    | -                          |    | -                          |          | -                                      |    | -                                             |    | (576,091)                                        |          | (576,091)                                                                                         |
|                                                                           |    |                    |    |              |    |                       |    |                       |          |                                   |    |                                          |    |                                             |          |                                                                                              |
| Balance at 30 April 2008                                                       |    | 723,929                 |    | 724               |    | 4,705,286                  |    | 114,303                    |          | -                                      |    | (4,268)                                       |    | (4,621,706)                                      |          | 194,339                                                                                           |
| Shares issued for cash ($1.94 per share) (Note 10)                             |    |  3,333             |    |  3           |    |  6,472                |    |  -                    |          |  -                                |    |  -                                       |    |  -                                          |          |  6,475                                                                                       |
| Warrants granted for cash (Note 10)                                            |    |  -                 |    |  -           |    |  -                    |    |  18,525               |          |  -                                |    |  -                                       |    |  -                                          |          |  18,525                                                                                      |
| Shares issued for services rendered ($1.87 per share) (Notes 10 and 13)        |    |   190,933     |    |   191   |    |   393,809        |    |   -              |          |   -                          |    |   -                                 |    |   -                                    |          |   394,000                                                                               |
| Shares issued for property ($1.25 per share) (Notes 5, 9, 10, and 13)          |    |   200,000     |    |   200   |    |   249,800        |    |   -              |          |   -                          |    |   -                                 |    |   -                                    |          |   250,000                                                                               |
| Shares issued for debt ($5.00 per share)  (Notes 10 and 13)          |    |   2,000       |    |   2     |    |   9,998          |    |   -              |          |   -                          |    |   -                                 |    |   -                                    |          |   10,000                                                                                |
| Contribution to capital by related parties – services (Notes 9 and 13)   |    |   -           |    |   -     |    |   100,000        |    |   -              |          |   -                          |    |   -                                 |    |   -                                    |          |   100,000                                                                               |
| Stock-based compensation(Notes 9, 10 and 13)                                   |    |  -                 |    |  -           |    |  -                    |    |  147,446              |          |  -                                |    |  -                                       |    |  -                                          |          |  147,446                                                                                     |
| Foreign currency translation adjustment                                        |    |  -                 |    |  -           |    |  -                    |    |  -                    |          |  -                                |    |  70                                      |    |  -                                          |          |  70                                                                                          |
| Net loss for the year                                                          |    | -                       |    | -                 |    | -                          |    | -                          |          | -                                      |    | -                                             |    | (790,591)                                        |          | (790,591)                                                                                         |
|                                                                           |    |                    |    |              |    |                       |    |                       |          |                                   |    |                                          |    |                                             |          |                                                                                              |
| Balance at 30 April 2009                                                       |    | 1,120,195               |    | 1,120             |    | 5,465,365                  |    | 280,274                    |          | -                                      |    | (4,198)                                       |    | (5,412,297)                                      |          | 330,264                                                                                           |
| Shares issued for property rescinded ($1.25 per share) (Notes 5, 9, 10 and 13) |    |   (200,000)   |    |   (200) |    |   (249,800)      |    |   -              |          |   -                          |    |   -                                 |    |   -                                    |          |   (250,000)                                                                             |
| Shares issued for cash ($0.61 per share) (Note 10)                             |    |  6,552             |    |  6           |    |  3,994                |    |  -                    |          |  -                                |    |  -                                       |    |  -                                          |          |  4,000                                                                                       |
| Shares issued for cash ($0.75 per share) (Note 10)                             |    |  13,333            |    |  13          |    |  9,987                |    |  -                    |          |  -                                |    |  -                                       |    |  -                                          |          |  10,000                                                                                      |
| Shares issued for cash ($1.75 per share) (Note 10)                             |    |  28,572            |    |  29          |    |  49,971               |    |  -                    |          |  -                                |    |  -                                       |    |  -                                          |          |  50,000                                                                                      |
| Shares issued for cash ($1.75 per share) (Note 10)                             |    |  28,572            |    |  29          |    |  49,971               |    |  -                    |          |  -                                |    |  -                                       |    |  -                                          |          |  50,000                                                                                      |
| Shares issued for services rendered (Notes 10 and 13)                          |    |  3,500,083         |    |  3,500       |    |  673,175              |    |  -                    |          |  -                                |    |  -                                       |    |  -                                          |          |  676,675                                                                                     |
| Shares issued for property and equipment (Notes 5, 10 and 13)                  |    |   125,000     |    |   125   |    |   124,875        |    |   -              |          |   -                          |    |   -                                 |    |   -                                    |          |   125,000                                                                               |
| Fair value of warrants issued                                                  |    |  -                 |    |  -           |    |  (507,524)            |    |  507,524              |          |  -                                |    |  -                                       |    |  -                                          |          |  -                                                                                           |
| Stock-based compensation    (Notes 9, 10 and 13)           |    |  -                 |    |  -           |    |  -                    |    |  633,728              |          |  -                                |    |  -                                       |    |  -                                          |          |  633,728                                                                                     |
| Unrealized gain on available-for-sale investment (Note 4)                      |    |   -           |    |   -     |    |   -              |    |   -              |          |   -                          |    |   231,929                           |    |   -                                    |          |   231,929                                                                               |
| Share subscriptions received inadvance (Note 10)                               |  - |                    |  - |              |  - |                       |  - |                       |  250,000 |                                   |  - |                                          |  - |                                             |  250,000 |
| Foreign currency translation adjustment                                        |    |  -                 |    |  -           |    |  -                    |    |  -                    |          |  -                                |    |  (47)                                    |    |  -                                          |          |  (47)                                                                                        |
| Net loss for the year                                                          |    | -                       |    | -                 |    | -                          |    | -                          |          | -                                      |    | -                                             |    | (1,911,942)                                      |          | (1,911,942)                                                                                       |
|                                                                           |    |                    |    |              |    |                       |    |                       |          |                                   |    |                                          |    |                                             |          |                                                                                              |
| Balance at 30 April 2010                                                       |    |  4,622,307         |    |  4,622       |    |  5,620,014            |    |  1,421,526            |          |  250,000                          |    |  227,684                                 |    |  (7,324,239)                                |          |  199,607                                                                                     |

----

----

|                                                                |   | Number of shares issued |   | Capitalstock |   | Additional paid-in capital |   |    Warrants |   | Share subscriptions received in advance |   | Accumulated other comprehensive income (loss) |   | Deficit accumulated during the development stage |   | Stockholders’            equity |
|---------------------------------------------------------------------|--------|-------------------------|--------|--------------|--------|----------------------------|--------|----------------------------|--------|-----------------------------------------|--------|-----------------------------------------------|--------|--------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|
|                                                                |   |                    |   | $            |   | $                          |   | $                          |   | $                                       |   | $                                             |   | $                                                |   | $                                                                                                 |
|                                                                |   |                    |   |         |   |                       |   |                       |   |                                    |   |                                          |   |                                             |   |                                                                                              |
| Balance at 30 April 2010                                            |   | 4,622,307               |   | 4,622        |   | 5,620,014                  |   | 1,421,526                  |   | 250,000                                 |   | 227,684                                       |   | (7,324,239)                                      |   | 199,607                                                                                           |
| Warrants exercised ($0.25 per share) (Note 10)                      |   | 13,336                  |   | 13           |   | 3,321                      |   | -                          |   | -                                       |   | -                                             |   | -                                                |   | 3,334                                                                                             |
| Shares issued for conversion of promissory note (Notes 4, 7 and 10) |   | 1,818,181               |   | 1,819        |   | 1,998,181                  |   | -                          |   | -                                       |   | -                                             |   | -                                                |   | 2,000,000                                                                                         |
| Shares issued for cash ($0.25 per share) (Note 10)                  |   | 1,000,000               |   | 1,000        |   | 249,000                    |   | -                          |   | (250,000)                               |   | -                                             |   | -                                                |   | -                                                                                                 |
| Unrealized gain on available-for-sale investment (Note 4)           |   | -                       |   | -            |   | -                          |   | -                          |   | -                                       |   | 2,636                                         |   | -                                                |   | 2,636                                                                                             |
| Fair value of warrants exercised                                    |   | -                       |   | -            |   | 48,256                     |   | (48,256)                   |   | -                                       |   | -                                             |   | -                                                |   | -                                                                                                 |
| Foreign currency translation adjustment                             |   | -                       |   | -            |   | -                          |   | -                          |   | -                                       |   | 6                                             |   | -                                                |   | 6                                                                                                 |
| Net loss for the period                                             |   | -                       |   | -            |   | -                          |   | -                          |   | -                                       |   | -                                             |   | (410,242)                                        |   | (410,242)                                                                                         |
|                                                                |   |                    |   |         |   |                       |   |                       |   |                                    |   |                                          |   |                                             |   |                                                                                              |
| Balance at 31 October 2010                                          |   | 7,453,824               |   | 7,454        |   | 7,918,772                  |   | 1,373,270                  |   | -                                       |   | 230,326                                       |   | (7,734,481)                                      |   | 1,795,341                                                                                         |

----

----

|                                          |      | For the period from the date of inception on 2 September 2003 to31 October 2010 | For the three month period ended31 October2010 | For the three month period ended31 October2009 | For thesixmonth period ended31 October2010 | For thesixmonth period ended31 October2009 |
|-----------------------------------------------|-----------|--------------------------------------------------------------------------------------|-----------------------------------------------------|------------------------------------------------|-------------------------------------------------|--------------------------------------------|
|                                          |      | $                                                                                    | $                                                   | $                                              | $                                               | $                                          |
|                                          |      |                                                                                 |                                                |                                           |                                            |                                       |
| Consulting fees (Notes 9, 10 and 13)          |      | 1,263,353                                                                            | 66,303                                              | 48,776                                         | 134,908                                         | 89,502                                     |
| Depreciation (Note 5)                         |      | 16,527                                                                               | 4,056                                               | 121                                            | 8,047                                           | 750                                        |
| Foreign exchange loss                         |      | 1,545                                                                                | -                                                   | -                                              | -                                               | -                                          |
| Interest                                      |      | 47,681                                                                               | -                                                   | 800                                            | 4,334                                           | 867                                        |
| Investor relations (Notes 10 and 13)          |      | 290,284                                                                              | 406                                                 | -                                              | 406                                             | -                                          |
| Listing, filing and transfer agent fees       |      | 58,364                                                                               | 2,700                                               | 3,740                                          | 2,870                                           | 3,821                                      |
| Management fees (Notes 9 and 13)              |      | 300,000                                                                              | -                                                   | 25,000                                         | -                                               | 50,000                                     |
| Office and sundry                             |      | 71,168                                                                               | 1,212                                               | 1,133                                          | 2,328                                           | 4,932                                      |
| Professional fees                             |      | 504,798                                                                              | 10,488                                              | 21,189                                         | 18,648                                          | 32,196                                     |
| Public relations and shareholder information  | 290,846   | -                                                                                    | 8,006                                               | 100,000                                        | 8,927                                           |
| Rent                                          |      | 79,205                                                                               | -                                                   | -                                              | -                                               | -                                          |
| Research and development                      |      | 387,173                                                                              | -                                                   | -                                              | -                                               | -                                          |
| Salaries and wages (Notes 9, 10, 12 and 13)   | 661,975   | 56,717                                                                               | 133,973                                             | 87,968                                         | 133,973                                         |
| Stock-based compensation (Notes 9, 10 and 13) | 3,157,726 | -                                                                                    | 405,000                                             | -                                              | 408,728                                         |
| Travel and entertainment                      | 359,701   | 53,795                                                                               | 36,510                                              | 86,171                                         | 38,188                                          |
|                                          |      |                                                                                 |                                                |                                           |                                            |                                       |
|                                          |      | 7,490,346                                                                            | 195,677                                             | 684,248                                        | 445,680                                         | 771,884                                    |

----

----

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

----

----

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

----

----

----

----

----

----

----

----

----

----

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

| 4. | Available-for-Sale Investment |
|----|-------------------------------|

|   |                                              |   |            |   | Unrealized gain/loss |           |                                             Fair value |
|--------|---------------------------------------------------|--------|-----------------|--------|----------------------|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                              |   | Adjusted cost   |   |                 | 31 October2010 |                                                                                                                                                                                                                                                                          | 30 April 2010(Audited) |
|   |                                              |   | $               |   | $                    |           | $                                                                                                                                                                                                                                                                             |   | $ |
|   |                                              |   |            |   |                 |           |                                                                                                                                                                                                                                                                          |   |   |
|   | 977,966 common shares of Samyang Optics Co., Ltd. |   |  1,000,000 |   |  234,565        |           |  1,234,565                                                                                                                                                                                                                                                               |   |  1,231,929 |
|   |                                              |   |            |   |                 |           |                                                                                                                                                                                                                                                                          |   |   |

----

----

|  5. | Property and Equipment |
|----------|------------------------|

|   |      |   |    |   | Accumulateddepreciation |           | Net book value |
|--------|-----------|--------|---------|--------|-------------------------|----------------|----------------|
|   |      |   | Cost    |   |                    | 31 October2010 |           | 30 April 2010(Audited) |
|   |      |   | $       |   | $                       |           | $              |   | $ |
|   |      |   |    |   |                    |           |           |   |   |
|   | Equipment |   | 52,940  |   | 8,150                   |           | 44,790         |   | 49,812 |
|   | Vehicles  |   | 75,000  |   | 3,025                   |           | 71,975         |   | 75,000 |
|   |      |   |    |   |                    |           |           |   |   |
|   |      |   | 127,940 |   | 11,175                  |           | 116,765        |   | 124,812 |

| 6. | Accounts Payable and Accrued Liabilities |
|----|------------------------------------------|

----

----

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

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

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

----

----

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

|   | i. | During the year ended 30 April 2009, the Company issued 1,000 common shares valued at $4.00 per common share for $4,000 in consulting services (Note 13). |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | During the year ended 30 April 2009, the Company issued 6,400 common shares valued at $15.00 per common share for $96,000 in investor relations (Note 13).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | During the year ended 30 April 2009, the Company issued 16,000 units valued at $4.00 per common share each for $64,000 as compensation to the chief executive officer of the company.  Each unit consists of one restricted common share and one common share purchase warrant.  Each warrant entitles the holder to purchase one additional common share of the Company at a cost of $7.50 expiring 12 May 2013 with a fair value of $147,446.  As at 31 October 2010, 16,000 of the share purchase warrants in this series remain outstanding.  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933 (Notes 9 and 13). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv.  | During the year ended 30 April 2009, the Company issued 1,333 common shares valued at $7.50 per common share each for $10,000 for legal services (Note 13).   |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | v. | During the year ended 30 April 2009, the Company issued 1,000 common shares valued at $7.50 per common share for $7,500 in public relations (Note 13).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | vi. | During the year ended 30 April 2009, the Company issued 3,200 common shares valued at $7.50 per common share for $24,000 in consulting expense to a related party (Notes 9 and 13).  |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | vii. | During the year ended 30 April 2009, the Company issued 5,000 common shares valued at $5.50 per common share for $27,500 in consulting to a related party (Notes 9 and 13).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | viii. | During the year ended 30 April 2009, the Company issued 3,333 units valued at $7.50 per unit for total cash proceeds of $25,000.  Each unit consists of one restricted common share and one common share purchase warrant.  Each whole common share purchase warrant entitles the holder to purchase an additional common share at a price of $12.50 per share for a period of five years from the date of offering with a fair value of $18,525.  As at 31 October 2010, 3,333 of the share purchase warrants in this series remain outstanding.  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ix. | During the year ended 30 April 2009, the Company issued 2,000 common shares valued at $5.00 per common share for $10,000 in repayment for a convertible promissory note (Note 13). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | x. | During the year ended 30 April 2009, the Company issued 2,000 common shares valued at $3.00 per common share for $6,000 in consulting expense (Note 13).  Of this amount, $2,729 was expensed during the year ended 30 April 2010 (30 April 2009 - $3,271, cumulative - $6,000). |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xi. | During the year ended 30 April 2009, the Company issued 200,000 shares of common stock valued at $1.25 per share purchase for land and building from a Related Party valued at $250,000 (Notes 5, 9 and 13).   These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xii. | During the year ended 30 April 2009, the Company issued 5,000 common shares valued at $1.00 per common share for $5,000 in legal services (Note 13). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xiii. | During the year ended 30 April 2009, the Company issued 150,000 common shares valued $1.00 per common share at $150,000 in retainer for consulting expenses to two related parties (Notes 9 and 13).  Of this amount, $75,616 was expensed during the year ended 30 April 2010 (30 April 2009 - $74,384, cumulative - $150,000).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xiv. | During the year ended 30 April 2010, the Related Party returned to treasury 200,000 shares of common stock of the Company valued at $1.25 per common share for a total value of $250,000, related to the disposal of land and building acquired from a Related Party pursuant to the Property Agreement entered into on 24 November 2008. These shares were cancelled on 29 July 2009 (Notes 5, 9 and 13). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xv. |   During the year ended 30 April 2010, the Company issued 6,552 common shares valued at $0.61 per common share for cash of $4,000. These shares were restricted from trading for a period of one year as defined by Rule  144 of the United States Securities Act of 1933. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xvi. |   During the year ended 30 April 2010, the Company issued 13,333 common shares valued at $0.75 per common share for cash of $10,000. These shares were restricted from trading for a period of one year as defined by Rule  144 of the United States Securities Act of 1933. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | xvii. | During the year ended 30 April 2010, the Company issued 3,500,083 common shares valued at prices from $0.15 to $1.00 per common share for $676,675 in consulting expense and salaries and wages.  Of this amount, $104,908 was expensed during the six month period ended 31 October 2010 (year ended 30 April 2010 - $517,677, cumulative - $622,585) and the remaining $54,090 (30 April 2010 - $158,998) was classified as prepaid expense which will be expensed as consulting services and salaries and wages in subsequent periods (Notes 9 and 13). |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xviii. | During the year ended 30 April 2010, the Company issued 550,000 common share purchase warrants valued at $633,728 for stock-based compensation.  Each common share purchase warrant entitles the holder to purchase one common share at a price of $0.25 to $1.00 for a period of five years from the date of offering.  As at 31 October 2010, 550,000 of the share purchase warrants in these series remain outstanding (Note 13). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xix. | During the year ended 30 April 2010, the Company issued 8,585,083 common share purchase warrants valued at $469,113 for consulting services.  Each common share purchase warrant entitles the holder to purchase one common share at a price of $0.25 to $1.00 for a period of five or ten years from the date of offering.  As at 31 October 2010, 8,585,083 of the share purchase warrants in these series remain outstanding (Notes 9 and 13). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xx. | During the year ended 30 April 2010, the Company issued 28,572 units valued at $1.75 consisting of one share and two warrants for total cash proceeds of $50,000.  Each whole common share purchase warrant entitles the holder to purchase an additional common share at a price of $2.50 per share for a period of five years up to 22 July 2014.  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933.  As at 31 October 2010, 57,144 warrants in this series remain outstanding. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xxi. | During the year ended 30 April 2010, the Company issued 28,572 shares valued at $1.75 for total cash proceeds of $50,000.  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     | xxii.       |   During the year ended 30 April 2010, the Company entered into an Asset Purchase Agreement with a non-related individual to acquire security and computer equipment valued at $50,000. The purchase price of the   equipment was paid for by the issuance of 50,000 shares of common stock of the Company valued at $50,000 (Notes 5 and 13). |
|---------------|-------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xxiii. | During the year ended 30 April 2010, the Company entered into an Asset Purchase Agreement with a non-related company to acquire a number of vehicles valued at $75,000.  The purchase price of the vehicles was paid for by the issuance of 75,000 shares of common stock of the Company valued at $75,000 (Notes 5 and 13). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xxiv. | During the six month period ended 31 October 2010, the Company issued 13,336 common shares valued at $0.25 per common share for cash of $3,334 upon exercise of warrants. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | xxv. | During the six month period ended 31 October 2010, the Company issued 1,818,181 common shares valued at $1.10 per common share upon conversion of a Convertible Promissory Note by Samyang.  The value of the shares issued was $2,000,000 (Notes 4, 7 and 13). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|           xxvi.   | During the six month period ended 31 October 2010, the Company issued 1,000,000 common shares valued at $0.25 per common share related to share subscriptions received in advance in the amount of $250,000. |
|--------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     |   | Exercise price |   | Numberof warrants |   | Remainingcontractual life (years) |
|----------|--------|----------------|--------|-------------------|--------|-----------------------------------|
|     |   | $              |   |              |   |                              |
|     |   |           |   |              |   |                              |
| Warrants |   | 12.50          |   | 59,200            |   | 0.20                              |
| Warrants |   | 7.50           |   | 50,000            |   | 1.11                              |
| Warrants |   | 12.50          |   | 7,600             |   | 1.86                              |
| Warrants |   | 7.50           |   | 20,000            |   | 2.42                              |
| Warrants |   | 7.50           |   | 16,000            |   | 2.53                              |
| Warrants |   | 12.50          |   | 3,333             |   | 2.68                              |
| Warrants |   | 0.25           |   | 25,000            |   | 3.71                              |
| Warrants |   | 0.25           |   | 25,000            |   | 3.73                              |
| Warrants |   | 0.50           |   | 200,000           |   | 3.73                              |
| Warrants |   | 2.50           |   | 57,144            |   | 3.73                              |
| Warrants |   | 0.25           |   | 2,201,750         |   | 4.29                              |
| Warrants |   | 1.00           |   | 50,000            |   | 4.29                              |
| Warrants |   | 0.25           |   | 333,333           |   | 4.33                              |
| Warrants |   | 1.00           |   | 300,000           |   | 4.38                              |
| Warrants |   | 0.25           |   | 6,000,000         |   | 9.39                              |
|     |   |           |   |              |   |                              |
|     |   |           |   | 9,348,360         |   |                              |

----

----

|   |                                                              |   | Number of warrants |   | Weighted average exercise price |
|--------|-------------------------------------------------------------------|--------|--------------------|--------|---------------------------------|
|   |                                                              |   |               |   | $                               |
|   |                                                              |   |               |   |                            |
|   | Outstanding and exercisable at 1 May 2009                         |   | 169,467            |   | 15.97                           |
|   |      Granted                             |   | 9,192,227          |   | 0.30                            |
|   |      Exercised                           |   | -                  |   | -                               |
|   |      Expired                             |   | -                  |   | -                               |
|   |                                                              |   |               |   |                            |
|   | Outstanding and exercisable at 30 April 2010                      |   | 9,361,694          |   | 0.58                            |
|   |                                                              |   |               |   |                            |
|   | Weighted average fair value of warrants granted during the year   |   | 0.12               |
|   |                                                              |   |               |
|   | Outstanding and exercisable 1 May 2010                            |   | 9,361,694          |   | 0.58                            |
|   | Granted                                                           |   | -                  |   | -                               |
|   | Exercised                                                         |   | (13,334)           |   | 0.25                            |
|   | Expired                                                           |   | -                  |   | -                               |
|   |                                                              |   |               |   |                            |
|   | Outstanding and exercisable 31 October 2010                  |   | 9,348,360          |   | 0.46                            |
|   |                                                              |   |               |   |                            |
|   | Weighted average fair value of warrants granted during the period |   | -                  |

|   |                    |   |   | As at31 October 2010 | As at30 April 2010(Audited) |
|--------|-------------------------|--------|--------|--------------------------------|----------------------------------|
|   |                    |   |   |                           |                             |
|   | Risk free interest rate |   |   | -                              | 1.49% - 2.36%                    |
|   | Expected life           |   |   | -                              | 5.0 - 10.0 years                 |
|   | Annualized volatility   |   |   | -                              | 580% - 596%                      |
|   | Expected dividends      |   |   | -                              | -                                |

----

----

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

|                                |   | For the six month period ended 31 October2010 |   | For the six monthperiod ended 31 October2009 |
|-------------------------------------|--------|-----------------------------------------------|--------|----------------------------------------------|
|                                |   | $                                             |   | $                                            |
| Deferred tax asset attributable to: |   |                                          |   |                                         |
| Current operations                  |   | 143,585                                       |   | 261,970                                      |
| Permanent differences               |   | -                                             |   | (162,460)                                    |
| Change in valuation allowance       |   | (142,593)                                     |   | (99,510)                                     |
| Foreign exchange                    |   | (992)                                         |   | -                                            |
|                                |   |                                          |   |                                         |
| Net refundable amount               |   | -                                             |   | -                                            |

----

----

|   |                              |   | As at31 October 2010 |   | As at30 April 2010(Audited) |
|--------|-----------------------------------|--------|--------------------------------|--------|-----------------------------|
|   |                              |   | $                              |   | $                           |
|   |                              |   |                           |   |                        |
|   | Net operating loss carry forward  |   | 3,910,098                      |   | 3,503,823                   |
|   |                              |   |                           |   |                        |
|   | Statutory federal income tax rate |   | 25% - 35%                      |   | 25% - 35%                   |
|   | Effective income tax rate         |   | 0%                             |   | 0%                          |
|   |                              |   |                           |   |                        |
|   | Deferred tax asset                |   | 1,312,910                      |   | 1,170,317                   |
|   | Less: Valuation allowance         |   | (1,312,910)                    |   | (1,170,317)                 |
|   | Other                             |   |                           |   |                        |
|   |                              |   | -                              |   | -                           |

| 12. | Commitments and Contingency |
|-----|-----------------------------|

|   | i. | On 15 November 2007, the Company filed its intention to register 100,000 common shares of the Company to be covered under S8 Registration for future issuances to any and all consultants, employees, attorneys, officers and directors of the Company at a proposed maximum offering price of $4.50 per common share. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | The Company is committed to issuing 25,000 shares valued at $3,750 pursuant to the one-year consulting agreement for consulting services. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | The Company entered into an agreement with the corporate secretary for a salary of $50,000 per annum beginning 1 July 2009.  As of 31 October 2010, $13,000 in salaries has been paid and $54,109 has been recorded in accrued liabilities (Note 6). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv. | The Company entered into an employment agreement with the chief executive officer for a salary of $125,000 per annum and one time signing bonus of $75,000 beginning 1 July 2009. As of 31 October 2010, $93,336 in salaries has been paid and $148,276 has been recorded in accrued liabilities (Note 6). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|   |                                         | For the period from the date of inception on 2 September 2003 to31 October2010 |  For the three month period ended31 October2010 |  For the threemonth period ended31 October2009 |  For thesix month period ended31 October 2010 | For thesix month period ended31 October 2009 |
|--------|----------------------------------------------|--------------------------------------------------------------------------------|------------------------------------------------------|-----------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------|
|   |                                         | $                                                                              | $                                                    | $                                                   | $                                                            | $                                                      |
|   |                                         |                                                                           |                                                 |                                                |                                                         |                                                   |
|   | Cash paid during the period for interest     | 11,362                                                                         | -                                                    | -                                                   | -                                                            | -                                                      |
|   | Cash paid during the period for income taxes | -                                                                              | -                                                    | -                                                   | -                                                            | -                                                      |

----

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| 14. | Fair Value Measurements |
|-----|-------------------------|

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|   |                                   |      |                                        | Fair value measurement at reporting date using |
|--------|----------------------------------------|-----------|---------------------------------------------|------------------------------------------------|
|   |                                   |      |    Balance at 31 October2010 |                                           |   Quoted prices in active markets for identical assets(Level 1) |   |    Significant other observable inputs(Level 2) |   |    Significant unobservable inputs(Level 3) |   |
|   |                                   |      | $                                           |                                           | $ |   | $ |   | $ |   |
|   |                                   |      |                                        |                                           |   |   |   |   |   |   |
|   | Available-for-sale investment (Note 4) | 1,234,565 |                                        | 1,234,565                                      |   | - |   | - |   |
|   |                                   |      |                                        |                                           |   |   |   |   |   |   |

|   |                                   |      |                                                | Fair value measurement at reporting date using |
|--------|----------------------------------------|-----------|-----------------------------------------------------|------------------------------------------------|
|   |                                   |      |    Balance at 30 April 2010(Audited) |                                           |  Quoted prices in active markets for identical assets(Level 1)(Audited) |   |   Significant other observable inputs(Level 2)(Audited) |   |   Significant unobservable inputs(Level 3)(Audited) |   |
|   |                                   |      | $                                                   |                                           | $ |   | $ |   | $ |   |
|   |                                   |      |                                                |                                           |   |   |   |   |   |   |
|   | Available-for-sale investment (Note 4) | 1,231,929 |                                                | 1,231,929                                      |   | - |   | - |   |
|   |                                   |      |                                                |                                           |   |   |   |   |   |   |

| 15. | Subsequent Events |
|-----|-------------------|

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|     |   | Exercise price |   | Numberof warrants |   | Remainingcontractual life (years) |
|----------|--------|----------------|--------|-------------------|--------|-----------------------------------|
|     |   | $              |   |              |   |                              |
|     |   |           |   |              |   |                              |
| Warrants |   | 12.50          |   | 59,200            |   | 0.20                              |
| Warrants |   | 7.50           |   | 50,000            |   | 1.11                              |
| Warrants |   | 12.50          |   | 7,600             |   | 1.86                              |
| Warrants |   | 7.50           |   | 20,000            |   | 2.42                              |
| Warrants |   | 7.50           |   | 16,000            |   | 2.53                              |
| Warrants |   | 12.50          |   | 3,333             |   | 2.68                              |
| Warrants |   | 0.25           |   | 25,000            |   | 3.71                              |
| Warrants |   | 0.25           |   | 25,000            |   | 3.73                              |
| Warrants |   | 0.50           |   | 200,000           |   | 3.73                              |
| Warrants |   | 2.50           |   | 57,144            |   | 3.73                              |
| Warrants |   | 0.25           |   | 2,201,750         |   | 4.29                              |
| Warrants |   | 1.00           |   | 50,000            |   | 4.29                              |
| Warrants |   | 0.25           |   | 333,333           |   | 4.33                              |
| Warrants |   | 1.00           |   | 300,000           |   | 4.38                              |
| Warrants |   | 0.25           |   | 6,000,000         |   | 9.39                              |
|     |   |           |   |              |   |                              |
|     |   |           |   | 9,348,360         |   |                              |

----

|                                                              |   | Number of warrants |   | Weighted average exercise price |
|-------------------------------------------------------------------|--------|--------------------|--------|---------------------------------|
|                                                              |   |               |   | $                               |
|                                                              |   |               |   |                            |
| Outstanding and exercisable at May 1, 2009                        |   | 169,467            |   | 15.97                           |
|      Granted                             |   | 9,192,227          |   | 0.30                            |
|      Exercised                           |   | -                  |   | -                               |
|      Expired                             |   | -                  |   | -                               |
|                                                              |   |               |   |                            |
| Outstanding and exercisable at April 30,  2010          |   | 9,361,694          |   | 0.58                            |
|                                                              |   |               |   |                            |
| Weighted average fair value of warrants granted during the year   |   | 0.12               |
|                                                              |   |               |
| Outstanding and exercisable May 1, 2010                           |   | 9,361,694          |   | 0.58                            |
| Granted                                                           |   | -                  |   | -                               |
| Exercised                                                         |   | (13,334)           |   | 0.25                            |
| Expired                                                           |   | -                  |   | -                               |
|                                                              |   |               |   |                            |
| Outstanding and exercisable October 31, 2010                 |   | 9,348,360          |   | 0.46                            |
|                                                              |   |               |   |                            |
| Weighted average fair value of warrants granted during the period |   | -                  |

|                    |   |   | As at31 October 2010 | As at30 April 2010 |
|-------------------------|--------|--------|---------------------------|-------------------------|
|                    |   |   |                      |                    |
| Risk free interest rate |   |   | -                         | 1.49% - 2.36%           |
| Expected life           |   |   | -                         | 5.0 - 10.0 years        |
| Annualized volatility   |   |   | -                         | 580% - 596%             |
| Expected dividends      |   |   | -                         | -                       |

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