|SECURITIES
AND EXCHANGE COMMISSION

Washington,
D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

(X)    Quarterly report for the quarterly period ended June 30, 2001


OR

(  )   
Transition Report Pursuant To Section 13 Or 15(d) of The Securities Exchange Act of 1934

Commission file number   1-3952

SIBONEY CORPORATION(Exact name of registrant as specified in its charter)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Maryland
(State or other jurisdiction of 
 incorporation or organization) | 73-0629975
  (I.R.S. Employer I.D. No.)
|------------------------------------------------------------------------- | ---------------------------------------

|325 North Kirkwood Road, Ste 310, P.O. Box 221029, St. Louis, MO 63122
                                      (Address of principal executive offices)
                                                     (Zip Code)
314-822-3163
 (Registrant's telephone number, including area code)

(Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the
registrant was required to file such reports) and (2) has been subject to such filing requirements for the past
90 days:      YES   [X]        NO   [   ]
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Title of class ofcommon stock | Number of Shares
   outstanding as of this Report Date
|----------------------------- | ------------------------------------------------------

|Common stock, par value
       $.10 per share | 16,687,344
|--------------------------------------------- | ----------

|INDEX
|-----

`PART I  FINANCIAL INFORMATION
-----------------------------

Item 1.   Financial Statements

          Condensed Consolidated Balance Sheet, June 30,
          2001 and December 31, 2000                                           3

          Condensed Consolidated Statement of Operations,
          Three Months and Six Months Ended June 30, 2001
          and June 30, 2000                                                    4

          Condensed Consolidated Statement of Cash Flows, Six
          Months Ended June 30, 2001 and June 30, 2000                         5

          Notes to Condensed Consolidated Financial                            6
          Statements

 Item 2.  Management's Discussion and Analysis of
          Financial Condition and Results of Operations                        8


PART II OTHER INFORMATION
-------------------------

Item 5.  Other Matters                                                        11

Item 6.  Reports on Form 8-K                                                  11

Signatures                                                                    11
----------

Exhibit Index                                                                 12
-------------`

|PART I -
FINANCIAL INFORMATION

ITEM 1.  
FINANCIAL STATEMENTS

SIBONEY CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEET
|----------------------------------------------------------------------------------------------------------------------------------------

`Assets
                                     ------
                                                                   DECEMBER 31,
                                         JUNE 30,                    2000 (SEE
                                              2001                 NOTE BELOW)
                                      -----------------            -----------

Current Assets
--------------
 Cash                                  $    363,367              $    626,554
 Investment                                   6,600                     4,500
 Accounts receivable                      1,583,796
 Inventories (Note 2)                       288,869                   699,866
 Prepaid expenses                           104,691                   224,680
 Deferred tax asset                         484,000                    67,381
                                      -------------               -----------
         Total Current Assets             2,831,323                 2,106,981
         --------------------

Property, Plant and Equipment               311,280                  271,503
(Net of accumulated depreciation
of $534,562 at June 30, 2001
and $472,606 at December 31, 2000)

Other Assets (Note 3)                     2,462,815                 1,048,628
---------------------                  ------------              ------------
                                        $ 5,605,418                $3,427,112
                                        ===========               ===========

                      Liabilities and Stockholders' Equity
                      ------------------------------------

Current Liabilities
-------------------
 Current portion of
   long-term debt                       $   414,457              $    74,783
 Current portion of
   capitalized lease obligation              15,752                   22,653
 Accounts payable                            51,220                  129,978
 Accrued expenses                           418,998                  344,177
                                       ------------              -----------
         Total Current Liabilities          900,427                  571,591
         -------------------------     ------------              -----------

Long-Term Liabilities
---------------------
 Long-term debt                             778,739                  198,685
 Capitalized lease obligation                 6,765                   11,613
 Deferred tax liability                     159,000                  159,000
                                        -----------              -----------
    Total Long-Term Liabilities             944,504                  369,298
    ---------------------------         -----------              -----------

Stockholders' Equity
--------------------
 Common stock:
   Authorized 20,000,000 shares
    at $0.10 par value; issued
    and outstanding 16,687,344
    at June 30, 2001 and
    16,658,344 at December 31, 2000        1,668,735               1,665,835
 Unrealized holding gain
    on investment                              6,600                   4,500
 Additional paid-in capital                    9,910                   8,332
 Retained earnings                         2,075,242                 807,556
                                         -----------            ------------
    Total Stockholders' Equity             3,760,487               2,486,223
    --------------------------           ------------           ------------

                                          $5,605,418             $ 3,427,112
                                         ============            ===========


NOTE:    The balance  sheet at December 31, 2000 has been taken from the audited
         financial statements at that date and condensed. See accompanying notes
         to condensed consolidated financial statements.`

---

|SIBONEY CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|----------------------------------------------------------------------------------

`Six Months Ended             Three Months Ended
                                         June 30,                       June 30,
                             -----------------------------------------------------------

                                    2001           2000          2001          2000
                                    ----           ----          ----          ----

Revenues                     $ 4,419,732     $2,800,289    $2,418,432    $1,793,162

Cost of Product Sales            610,682        347,844       312,371       214,875

Selling, General and
Administrative Expenses        2,491,907      1,419,482     1,286,986       717,786
                           -------------   ------------   -----------   -----------

Income from Operations         1,317,143      1,032,963       819,075       860,501
                            ------------    -----------   -----------   -----------

Other Income (Expense)
 Interest Income (Expense)       (51,717)          (58)       (30,088)         (521)
 Miscellaneous                     2,260         2,842          2,001        (2,480)
                           -------------   -----------    -----------   -----------
Total Other Income
  (Expense)                      (49,457)        2,784        (28,087)        1,959
                           -------------   -----------    -----------   -----------


Net Income                   $ 1,267,686   $ 1,035,747     $  790,988   $   862,460
                             ============  ===========    ===========   ===========

Weighted Average Shares
  Outstanding                 16,670,850    16,530,144     16,676,514    16,530,444
                             ===========   ===========    ===========   ===========

Basic and Diluted
  Income per Common Share        $   .08        $  .06         $  .05        $  .05
                             ===========    ==========     ==========    ==========

See accompanying notes to condensed consolidated financial statements.`

|SIBONEY CORPORATION AND SUBSIDIARIES
                                        CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWSFOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`2001              2000
                                                  ------             -----
Cash Flows from Operations
--------------------------
  Net income                                  $1,267,686          $1,035,747
  Adjustments to reconcile net
    income to net cash provided
    by continuing operations:

    Depreciation                                  61,956              41,316
     Amortization                                207,548               9,791

   Change in assets and liabilities:
     Increase in accounts and notes
        receivable                             ( 883,930)           (800,794)
     Increase in inventory                       (64,189)            (12,580)
     Increase in prepaid expenses
     and deposits                                (14,555)            (10,749)
     Increase (decrease) in accounts
       payable and accrued expenses               (3,937)             66,463
                                           -------------        ------------

Net Cash Provided by Operations                  570,579             329,194
-------------------------------             ------------         -----------

Cash Flows from Investing Activities
------------------------------------
 Payments for equipment                         (101,733)            (84,261)
 Payments for capitalized
   software development cost                    (202,056)           (155,811)
 Payments to purchase assets
   of unrelated entities                      (1,136,799)                ---
                                             -----------         ------------
Net Cash Used in Investing Activities         (1,440,588)            (240,072)
-------------------------------------        -----------         ------------

Cash Flows from Financing Activities
------------------------------------

 Proceeds from long-term debt                    725,000                   --
 Payments on capital lease obligations           (11,749)             (12,814)
 Principal payments on long-term debt           (110,907)                  --
 Proceeds from issuance of common stock            4,478                  960
                                            ------------         ------------

Net Cash Provided by
  (Used in) Financing Activities                 606,822              (11,854)
--------------------------------              ----------         ------------

Net Increase (Decrease)
  in Cash and Cash Equivalents                  (263,187)              77,268
------------------------------

Cash and Cash Equivalents -
  Beginning of Period                            626,554              383,356
-----------------------

Cash and Cash Equivalents -
  End of Period                                $ 363,367            $ 460,624
-----------------------                        =========            =========

Supplemental Disclosure of
  Cash Flow Information
---------------------------
 Interest Paid                                  $ 55,123            $   2,577
                                              ----------          -----------

See accompanying notes to condensed consolidated financial statements.`

|SIBONEY
CORPORATION AND SUBSIDIARIES

NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30,
2001 AND 2000

1.  CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

The
condensed consolidated balance sheet as of June 30, 2001, the condensed
consolidated statement of operations for the six-month and the three-month
periods ended June 30, 2001 and 2000 and the condensed consolidated statement of
cash flows for the six-month periods then ended have been prepared by the
Company, without audit. In the opinion of management, all adjustments (which
include only recurring adjustments) necessary to present fairly the financial
position and results of operations at June 30, 2001 and for all periods have
been made.

Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted. These condensed consolidated financial statements should
be read in conjunction with the financial statements and notes thereto included
in the Registrants Annual Report on Form 10-K for the year ended December
31, 2000. The results of operations for the period ended June 30, 2001 are not
necessarily indicative of the operating results for the full year.

2.  INVENTORIES

Inventories consist of the following:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`June 30, 2001             December 31, 2000
                                    -------------             -----------------
    Raw materials                      $228,509                   $ 163,473
    Finished goods                       60,360                      61,207
                                       --------                    --------
                                       $288,869                   $ 224,680
                                       ========                   =========`

|3.  OTHER ASSETS

Other assets consist of:
|------------------------------------------

`June  30, 2001      December 31, 2000
                                       --------------      -----------------
    Software development costs           $ 1,327,816      $       695,512
    Goodwill                               1,159,090              346,904
    Covenants not to compete                 300,000              100,000
    Deposits                                   3,733               26,488
                                      --------------        -------------
                                           2,790,639            1,168,904
    Less: Accumulated Amortization           327,824              120,276
                                         -----------           ----------
                                          $2,462,815           $1,048,628
                                          ==========           ==========`

|The Company capitalizes
costs associated with the development of computer software for sale. Costs are
capitalized at the point the Company determines that it is technologically
feasible to produce the software title. Such costs are amortized on a modified
declining balance method over a period of four years. Software development
amortization expense charged against earnings amounted to $66,517 for the six
months ended June 30, 2001 and $54,766 for the year ended December 31, 2000.

Goodwill represents the
purchase price of an acquired companys assets in excess of the fair value
of those net assets at the date of acquisition and is being amortized on a
straight-line basis over 5 years, which approximates the life of the acquired
assets. Amortization of such goodwill charged to operations amounted to $86,864
for the six months ended June 30, 2001 and $34,690 for the year ended December
31, 2000.

Covenants not to compete are being amortized on a straight-line basis over 2
years, which is the life of the covenant agreements.  Amortization of these
covenants charged to operations amounted to $54,167 for the six months ended
June 30, 2001 and $25,000 for the period ended December 31, 2000.

4.   BUSINESS
ACQUISITION

Effective January 1, 2001,
the Company purchased the stock of an educational software company for $850,000.
The acquisition was paid for with a $550,000 cash payment at closing and a
$300,000 non-interest-bearing note payable in 12 quarterly installments of
$25,000 each. The $550,000 cash payment was provided by funds on hand in
addition to a term loan from the Companys bank for $325,000. The loan
bears interest at 0.25% above the prime rate, with monthly principal and
interest payments of $6,771 and is due in January 2005. The acquisition was
accounted for under the purchase method of accounting.

As part of the term loan
agreement obtained for this acquisition, the Company renegotiated its revolving
line of credit agreement with the bank on January 5, 2001. Under this agreement,
outstanding balances are due on demand, and if no demand is made, then due on
January 5, 2002. The agreement, secured by accounts receivable, inventories and
equipment, requires monthly interest payments on outstanding balances at the
lenders prime rate. The new agreement requires the Company to maintain a
minimum net worth of $2,000,000.

Effective May 7, 2001, the
Company purchased the publishing assets of The Denali Project, L.L.C. The
acquisition was paid for with a $540,000 cash payment and a $50,000
non-interest-bearing note payable in full one year after the closing date. The
$540,000 cash payment was provided by funds on hand in addition to a term loan
from the Companys bank for $400,000. The loan bears interest at 7.75% with
monthly principal and interest payments of $12,511 and is due May 2004. The
acquisition was accounted for under the purchase method of accounting.
SIBONEY
CORPORATION AND SUBSIDIARIES

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
      AND RESULTS OF OPERATIONS

The Company is engaged,
through Siboney Learning Group, Inc. (SLG), a wholly-owned
subsidiary, in the publishing and distribution of educational software,
primarily for schools. The Company has 49 full-time employees.

The Company has served the
educational market for more than 35 years. Since 1986, the Companys main
business has been publishing educational software in reading, language arts,
math and science for students and teachers in grades kindergarten through adult.
The Company is best known for its software which motivates students to master
key skills correlated to state and national objectives and which keeps track of
student progress for teachers to review.

The Companys growing
portfolio of products now includes more than 150 active titles which focus on
teaching basic skills and new concepts while meeting the different learning
needs of all students through time-on-task instruction. Popular titles include
Math Concepts, Phonics Mastery, Reading Concepts, Reading for Critical
Thinking, Process Writing, Money ChallengeandTouchdown Math.

Siboney Learning Group
sells five complementary product lines which are developed, marketed and
supported by the Companys same core team. These product lines allow the
Company to offer a comprehensive product selection to schools and adult
education centers at a variety of budget levels.

GAMCO Educational Software
(GAMCO), the Companys original product line, provides schools
with highly motivating single titles and series. GAMCO titles are sold primarily
through major national and regional school software dealers, the Companys
inside sales force and its direct catalogs. These titles are known for their
effective blend of time-on-task learning with motivational games. In addition,
each GAMCO title includes a management program that tracks student progress and
allows teachers to modify the instruction to meet individual learning needs.

Orchard: Teachers
Choice Software (Orchard) offers schools and school districts a
comprehensive curriculum- and technology-based solution with universal
management and assessment. Orchard is sold through a proprietary network of
dealers and representatives who actively call on schools to sell larger
curriculum- and technology-based learning solutions. The Company believes that
Orchard is now a recognized competitor in the growing Integrated Learning
Systems market as a result of its motivating and balanced content, strong
correlation to major national tests and state objectives, and its cost-effective
pricing structure. The Company expects to introduce its first state-specific
versions of Orchard in 2001 by correlating its content to state-specific
standards and high-stakes state tests.

In July 2000, the Company
acquired the publishing assets of Teacher Support Software (TSS).
TSS is a 20 year old software publisher best known for its popular tools for
teachers, including Worksheet Magic, and its effective and comprehensive
language arts programs, including WordWorks. TSS products are sold
through all of the Companys sales channels.

In January 2001, the
Company purchased the stock of Activity Records, Inc. and in so doing acquired
Educational Activities, Inc.s software product line which is now called
Educational Activities Software (EAS). Educational Activities has
been a leading publisher of software for the middle-school to adult learner
software market for over 20 years. Best known for its Diascriptive® Reading
series, Educational Activities has traditionally sold its products to schools,
community colleges, adult learning centers and correctional facilities through a
network of independent representatives. A substantial part of EAS is adult
education products, a new market for the Company.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
      AND RESULTS OF OPERATIONS (Continued)

Effective May 7, 2001, the Company
purchased the publishing assets of The Denali Project, L.L.C. ("Denali").

Denali, based in Lansing,
Michigan, has published Summit Software, now called Journey - Guided Educational
Software, a comprehensive instructional software program with over 900
integrated lessons for grades 3-8 in reading and mathematics with management and
reporting for teachers. After almost four years of development and testing, the
product has been very well received by its early users.
The Company has also
generated sales of select products through a direct-to-the-home marketer of
educational software. This alliance allows the Company to reach families in
their homes without going through expensive retail distribution. The Company is
considering using the Internet to distribute its products to the school and home
markets, but has not yet done so. However, it believes that its entry into the
adult education market by the acquisition of EAS may be an area suited to such
distribution by the Company.

The Company also has
certain natural resource interests, including coal, oil and gas, through several
subsidiaries.

RESULTS OF
OPERATION

The following is
managements discussion and analysis of certain significant factors which
have affected the Companys financial position and operating results during
the periods covered by the accompanying condensed consolidated financial
statements.

THREE MONTHS ENDED JUNE 30, 2001 vs. JUNE 30, 2000

Total revenues increased
34.9% or $625,270 to $2,418,432 from $1,793,162 during the three month period
ended June 30, 2001 compared to the same period in 2000, reflecting higher sales
of Siboney Learning Group. Sales of Orchard increased 50.3% over the same period
in 2000. Revenues from Siboney Coal Company decreased $105,930 to $4,000 for the
quarter ended June 30, 2001.

Cost of product sales
increased 45.4% or $97,496 to $312,371 from $214,875 during the quarter compared
to the previous years quarter, primarily due to higher sales. As a
percentage of revenue, cost of product sales increased slightly to 12.9%
compared to 12.0%.
Selling, general and
administrative expenses increased 79.3% or $569,200 to $1,286,986 from $717,786
during the quarter ended June 30, 2001 compared to the same quarter in 2000,
primarily due to an increase in salaries and compensation-related expenses as
well as increased amortization expenses from acquisition and product
development. The Company has increased staffing in both its sales department and
product development group. In addition, the Companys acquisition of The
Denali Project, in May 2001 resulted in increased salaries, rent and
miscellaneous operating expenses associated with this Lansing, Michigan based
operation. The Company does not expect to generate significant revenue from this
acquisition until 2002.

Interest expense increased
$29,567 during the second quarter of 2001 compared to the same period in 2000
due to the loans incurred for the Activity Records and Denali acquisitions.

Net income for the second
quarter of 2001 was $790,988 compared to $862,460 in 2000 for the reasons stated
above.

ITEM  2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF  FINANCIAL CONDITION AND
           RESULTS  OF OPERATIONS (Continued)
SIX MONTHS ENDED JUNE 30, 2001 vs. JUNE 30, 2000
Total revenues increased
57.8% or $1,619,443 to $4,419,732 from $2,800,289 during the six month period
ended June 30, 2001 compared to the same period in 2000, primarily due to higher
sales at Siboney Learning Group. Sales of Orchard increased 104.1% over the same
period in 2000. Revenue from Siboney Coal Company was $96,330, a decrease of
$50,502 compared to the same period in 2000.

Cost of product sales
increased 75.6% or $262,838 to $610,682 from $347,844 compared to the six months
ended June 30, 2000, primarily due to higher sales. As a percentage of revenue,
cost of product sales increased to 13.8% compared to 12.4% in the prior year,
primarily due to increased royalties payable on newly released products.

Selling, general and
administrative expenses increased 75.6% or $1,072,425 to $2,491,907 from
$1,419,482 compared to the same six month period in 2000, primarily due to
higher salary, commission and marketing expenses associated with higher sales
and amortization expenses.

Interest expense increased
$51,659 due to the loans incurred for the Activity Records and Denali
acquisitions.

As a result of the above
mentioned reasons, net income for the six months ended June 30, 2001 was
$1,267,686, an increase of 22.4% or $231,939 over last year.

LIQUIDITY AND CAPITAL RESOURCES

Sales at Siboney Learning Group
increased during May and June 2001, compared with November and December 2000,
consistent with our experience in the previous year. As a result, accounts
receivable increased at June 30, 2001 compared to December 31, 2000. In
addition, cash decreased at June 30, 2001, compared to December 31, 2000, in
order to pay the increased level of expenses such as the cost of catalog
mailings during February 2001, salaries and acquisition costs related to the
purchase of Activity Records and Denali.

Long-term debt increased at
June 30, 2001 compared to December 31, 2000 due to the acquisition of Activity
Records and Denali.

The Company has a
line-of-credit available of $500,000. There was no balance outstanding at June
30, 2001 or December 31, 2000.

The net worth of the
Company at June 30, 2001 was $3,760,485 compared to $2,486,223 at December 31,
2000, as a result of the retention of earnings during the six month period.

PART II -
OTHER INFORMATION

ITEM 5. OTHER
MATTERS

The Company purchased the publishing
assets of The Denali Project, L.L.C., effective May 7, 2001, as further
described in Note 4 to the Companys condensed consolidated financial
statements and the Managements Discussion Section of this
Report.

Denali, based in Lansing,
Michigan, has published Summit Software, a comprehensive instructional software
program with over 900 integrated lessons for grades 3-8 in reading and
mathematics with management and reporting for teachers. After almost four years
of development and testing, the product has been very well received by its early
users. Siboney has renamed this product line Journey - Guided Educational
Software.

The Company believes there
is room for a structured comprehensive software program in its growing portfolio
of products that will be sold through its existing sales channels. In addition,
because Summit Software is written in Java, it can easily be web enabled and
delivered over the Internet to our customers who are looking for web-based
delivery.

The development and
web-enabling team at Denali, located in Lansing, Michigan, has joined the
Siboney team in Saint Louis as part of the Companys ongoing development
group.

ITEM 6.
REPORTS ON FORM 8-K
(a)  
Exhibits: See Exhibit Index
(b)  
Reports on Form 8-K:

1.  
Form 8-K filed May 8, 2001, announcing the purchase of the publishing assets of
The Denali Project, L.L.C.
2.    Form 8-K filed May 18, 2001, announcing the election of Ernest R. (Bodie) Marx as President and Chief
Operating Officer of the Company.


SIGNATURES

Pursuant to the
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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| | SIBONEY CORPORATION
| | -------------------

|Date: August 1, 2001 | By:  /s/ Timothy J. Tegeler
                                                  Timothy J. Tegeler
                                                  President, Chief Executive
                                                  Officer and Chief Financial
                                                  Officer
|-------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Exhibit No. | Description
|----------- | -----------

|10(a) | Asset Purchase Agreement dated as of May 4, 2001 between Siboney Learning Group, Inc. and
The Denali Project, L.L.C., filed herewith.
|----- | -------------------------------------------------------------------------------------------------------------------------------------

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