---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549

FORM 10-QSB

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

For the quarterly period ended July 31, 2007

[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGEACT OF 1934

For the transition period from ______________________ To
______________________

Commission file number 333-141817

TECTON CORPORATION(Exact name of registrant as specified in its charter)

|Nevada                                           | N/A                                 
|------------------------------------------------ | ------------------------------------
|(State or other jurisdiction of incorporation or | (I.R.S. Employer Identification No.)
|organization)                                    |                                     

Bettlistrasse 35 8600 Dübendorf, Switzerland(Address of principal executive offices)

(702) 387-2382(Registrants
telephone number, including area code)

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

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the registrant was require to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. [ x ]
Yes [ ] No

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). [ ] Yes [ x ] No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:

Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court. [ ] Yes [ ] No

APPLICABLE ONLY TO CORPORATE ISSUERS

As of September 18, 2007, the registrants outstanding common
stock consisted of 78, 150,610shares.

---



Table of Contents

|PART I 
      FINANCIAL INFORMATION | 1                                                                                
|------------------------------------ | ---------------------------------------------------------------------------------
|Item 1.                              | Financial Statements                                                             
|Item 2.                              | Management
      Discussion and Analysis of Financial Condition/Plan of Operation
|Item 3.                              | Control and Procedures                                                           
|                                     |                                                                                  
|PART II  OTHER
      INFORMATION    | 12                                                                               
|Item 1.                              | Legal
      Proceedings                                                          
|Item 2.                              | Unregistered Sales of Equity
      Securities                                    
|Item 3.                              | Defaults
      upon Senior Securities                                            
|Item 4.                              | Submission of Matters to a
      Vote Security Holders                           
|Item 5.                              | Other
      Information                                                          
|Item 6.                              | Exhibits                                                                         

---

PART I  FINANCIAL INFORMATION

|ITEM 1. | FINANCIAL STATEMENTS
|------- | --------------------

The unaudited interim consolidated financial statements of
Tecton Corporation (the Company, Tecton, we, our, us) follow. All
currency references in this report are in US dollars unless otherwise noted.

Tecton CorporationJuly 31, 2007 (unaudited)

|SECURITIES AND EXCHANGE COMMISSION
|----------------------------------
|WASHINGTON, D.C. 20549            
|                                  
|                                  
|FINANCIAL STATEMENTS              
|                                  
|                                  
|TECTON CORPORATION                
|(An exploration stage company)    
|                                  

1

---

TECTON CORPORATION(An exploration stage company)

FINANCIAL STATEMENTS

JULY 31, 2007

F-1

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|                              
|                              
|Index to Financial Statements 
|                              

|                                                                                                                                                                                | Page            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------
|Balance
        Sheet at July 31, 2007                                                                                                                                          | F-3             
|Statements of Losses
        for the three and six months ended July 31, 2007 and July 31,2006 and
        for the period January 19, 2006 (date of Inception) to July 31, 2007 | F-4             
|Statements
        of Stockholders' Equity for the period January 19, 2006 (date of Inception)
        to July 31, 2007                                                         | F-5 
      F-7 
|Statements of Cash Flows
        for the six months ended July 31, 2007 and July 31,2006 and for the period
        January 19, 2006 (date of Inception) to July 31, 2007       | F-8             
|Notes
        to Financial Statements                                                                                                                                           | F-9 
      F-13

F-2

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|BALANCE SHEET                 
|JULY 31, 2007                 
|(Stated in US dollars)        
|(Unaudited)                   

|ASSETS:                                                                                   |   |            |  
|----------------------------------------------------------------------------------------- | - | ---------- | -
|Cash                                                                                      | $ | 881,768    |  
|Prepaid expenses                                                                          |   | 101,206    |  
|Loans receivable, related party ( Note E )                                                |   | 929,896    |  
|Total current assets                                                                      |   | 1,912,870  |  
|Automobile (Note D )                                                                      |   | 28,810     |  
|                                                                                          |   |            |  
|                                                                                          |   |            |  
|Total assets                                                                              | $ | 1,941,680  |  
|                                                                                          |   |            |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                                                      |   |            |  
|Accounts payable and accrued expenses                                                     | $ | 62,534     |  
|Advances from related parties (Note E)                                                    |   | 3,600      |  
|Total current liabilities                                                                 |   | 66,134     |  
|                                                                                          |   |            |  
|Stockholders' equity:                                                                     |   |            |  
|                                                                                          |   |            |  
|Common stock, 80,000,000 shares authorized; par value $
      .0001 per share; 77,280,610 |   |            |  
|shares issued and outstanding                                                             |   | 7,727      |  
|Common stock issuable; 870,000 shares                                                     |   | 87         |  
|Additional paid-in capital                                                                |   | 3,632,012  |  
|Deficit accumulated during exploration stage                                              |   | (1,764,280 | )
|Total stockholders' equity                                                                |   | 1,875,546  |  
|Total liabilities and stockholders' equity                                                | $ | 1,941,680  |  

See accompanying notes to financial statements

F-3

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|STATEMENTS OF LOSSES          
|(Stated in US dollars)        
|(Unaudited)                   

|                                     |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   | For the period     |  
|------------------------------------ | - | -------------------- | - | - | -------------------- |  | - | ------------------ | - | - | ------------------ |  | - | ------------------ | -
|                                     |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   | from January 19,   |  
|                                     |   | For the Three Months |   |   | For the Three Months |  |   | For the Six Months |   |   | For the Six Months |  |   | 2006(date of       |  
|                                     |   | Ended                |   |   | Ended                |  |   | Ended July 31,     |   |   | Ended              |  |   | Inception) through |  
|                                     |   | July 31, 2007        |   |   | July 31, 2006        |  |   | 2007               |   |   | July 31, 2006      |  |   | July 31, 2007      |  
|Costs and Expenses:                  |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   |                    |  
|General and Administrative           | $ | 313,008              |   | $ | -                    |  | $ | 551,541            |   | $ | -                  |  | $ | 674,051            |  
|Exploration Costs                    |   | 41,492               |   |   | -                    |  |   | 64,181             |   |   | -                  |  |   | 64,181             |  
|Mineral property Costs               |   | 250,000              |   |   | -                    |  |   | 1,022,781          |   |   | -                  |  |   | 1,026,048          |  
|Total Operating Expenses             |   | 604,500              |   |   | -                    |  |   | 1,638,503          |   |   | -                  |  |   | 1,764,280          |  
|                                     |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   |                    |  
|Loss from Operations                 |   | (604,500             | ) |   | -                    |  |   | (1,638,503         | ) |   | -                  |  |   | (1,764,280         | )
|                                     |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   |                    |  
|Provision for Income Tax             |   | -                    |   |   | -                    |  |   | -                  |   |   | -                  |  |   | -                  |  
|Net Loss                             | $ | ( 604,500            | ) | $ | -                    |  | $ | (1,638,503         | ) | $ | -                  |  | $ | (1,764,280         | )
|                                     |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   |                    |  
|Net Loss per common share (basic and |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   |                    |  
|fully diluted) (Note F)              | $ | (0.01                | ) | $ | -                    |  | $ | (0.02              | ) | $ | -                  |  | $ | -                  |  
|                                     |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   |                    |  
|Weighted average common shares       |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   |                    |  
|outstanding                          |   | 74,385,980           |   |   | -                    |  |   | 72,070,582         |   |   | -                  |  |   |                    |  
|Options shares deemed outstanding    |   | -                    |   |   | -                    |  |   | -                  |   |   | -                  |  |   |                    |  
|Total shares outstanding for         |   |                      |   |   |                      |  |   |                    |   |   |                    |  |   |                    |  
|computation                          |   | 74,385,980           |   |   | -                    |  |   | 72,070,582         |   |   | -                  |  |   |                    |  

See accompanying notes to financial statements

F-4

---

|TECTON CORPORATION                                                             
|-------------------------------------------------------------------------------
|(An exploration stage company)                                                 
|STATEMENTS OF STOCKHOLDERS' EQUITY                                             
|FOR THE PERIOD JANUARY 19, 2006 (DATE OF INCEPTION)
      THROUGH JULY 31, 2007
|(Stated in US dollars)                                                         
|(Unaudited)                                                                    

|                     |  |              |   |   |                |   |  | Common  |  |   |        |  |   |            |  |   |              |   |   |             |  
|-------------------- |  | ------------ | - | - | -------------- | - |  | ------- |  | - | ------ |  | - | ---------- |  | - | ------------ | - | - | ----------- | -
|                     |  | Common Stock |   |   | Stock Issuable |   |  |         |  |   |        |  |   |            |  |   |              |  
|                     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   | Deficit     |  
|                     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   | Accumulated |  
|                     |  |              |   |   |                |   |  |         |  |   |        |  |   | Additional |  |   | Common       |   |   | During      |  
|                     |  |              |   |   |                |   |  |         |  |   |        |  |   | Paid-in    |  |   | Stock        |   |   | Exploration |  
|                     |  | Shares       |   |   | Amount         |   |  | Shares  |  |   | Amount |  |   | Capital    |  |   | Subscription |   |   | Stage       |  
|Issuance of          |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|common stock at      |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|inception, January   |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   | $ |             |  
|2006                 |  | 1,000,000    |   | $ | 100            |   |  | -       |  |   | -      |  |   | -          |  |   | -            |   |   | -           |  
|Shares Cancelled     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|December 2006        |  | (1,000,000   | ) |   | (100           | ) |  | -       |  |   | -      |  |   | -          |  |   | -            |   |   | -           |  
|Issuance of          |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|common stock to      |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|investors pursuant   |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|to dividend paid in  |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|December 01, 2006    |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|at $0.0001 per       |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|share                |  | 198,010      |   |   | 20             |   |  | -       |  |   | -      |  |   | -          |  |   | -            |   |   | -           |  
|Issuance of          |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|common stock for     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|cash in December     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|02, 2006 at $0.0001  |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|per share            |  | 49,000,000   |   |   | 4,900          |   |  | -       |  |   | -      |  |   | -          |  |   | -            |   |   | -           |  
|Issuance of          |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|common stock for     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|cash in December     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|10, 2006 at $0.001   |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|per share            |  | 5,220,000    |   |   | 522            |   |  | -       |  |   | -      |  |   | 4,698      |  |   | -            |   |   | -           |  
|Issuance of          |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|common stock for     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|cash in December     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|18, 2006 at $0.01    |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|per share            |  | 2,520,000    |   |   | 252            |   |  | -       |  |   | -      |  |   | 24,948     |  |   | -            |   |   | -           |  
|Common stock         |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|issuable for cash in |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|December 2006 at     |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|$.10 per share       |  | -            |   |   | -              |   |  | 4,000   |  |   | -      |  |   | 400        |  |   | -            |   |   | -           |  
|Common stock         |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|issuable for cash in |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|January 2007 at      |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|$.10 per share       |  | -            |   |   | -              |   |  | 100,000 |  |   | 10     |  |   | 9,990      |  |   | -            |   |   | -           |  
|Common stock         |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|subscription         |  | -            |   |   | -              |   |  | -       |  |   | -      |  |   | -          |  |   | (20,000      | ) |   | -           |  
|                     |  |              |   |   |                |   |  | -       |  |   | -      |  |   |            |  |   |              |   |   |             |  
|Net Loss             |  | -            |   |   | -              |   |  |         |  |   |        |  |   | -          |  |   | -            |   |   | (125,777    | )
|Balance at           |  |              |   |   |                |   |  |         |  |   |        |  |   |            |  |   |              |   |   |             |  
|January 31, 2007     |  | 56,938,010   |   | $ | 5,694          |   |  | 104,000 |  | $ | 10     |  | $ | 40,036     |  | $ | (20,000      | ) | $ | (125,777    | )

See accompanying notes to financial statements

F-5

---

|TECTON CORPORATION                                                             
|-------------------------------------------------------------------------------
|(An exploration stage company)                                                 
|STATEMENTS OF STOCKHOLDERS' DEFICIENCY                                         
|FOR THE PERIOD JANUARY 19, 2006 (DATE OF INCEPTION)
      THROUGH JULY 31, 2007
|(Stated in US dollars)                                                         

|                      |  |              |  |  |                |  |  | Common     |   |  |        |   |  |            |  |  |              |  |  |             | 
|--------------------- |  | ------------ |  |  | -------------- |  |  | ---------- | - |  | ------ | - |  | ---------- |  |  | ------------ |  |  | ----------- | 
|                      |  | Common Stock |  |  | Stock Issuable |  |  |            |   |  |        |   |  |            |  |  |              | 
|                      |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  | Deficit     | 
|                      |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  | Accumulated | 
|                      |  |              |  |  |                |  |  |            |   |  |        |   |  | Additional |  |  | Common       |  |  | During      | 
|                      |  |              |  |  |                |  |  |            |   |  |        |   |  | Paid-in    |  |  | Stock        |  |  | Exploration | 
|                      |  | Shares       |  |  | Amount         |  |  | Shares     |   |  | Amount |   |  | Capital    |  |  | Subscription |  |  | Stage       | 
|Common stock          |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|issued February       |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|02,2007               |  | 104,000      |  |  | 10             |  |  | (104,000   | ) |  | (10    | ) |  |            |  |  |              |  |  |             | 
|                      |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  | -            |  |  | -           | 
|Subscriptions         |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|Received February     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|02,2007               |  | -            |  |  | -              |  |  | -          |   |  | -      |   |  | -          |  |  | 20,000       |  |  | -           | 
|Issuance of common    |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|stock for private     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|placement in          |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|February 01,2007 at   |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|$.10 per share net of |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|finders fee          |  | 5,500,000    |  |  | 550            |  |  | -          |   |  | -      |   |  | 494,450    |  |  | -            |  |  | -           | 
|                      |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|Issuance of common    |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|stock in exchange for |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|consulting service    |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|and prepaid           |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|consulting service on |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|February 05,2007      |  | 1,000,000    |  |  | 100            |  |  | -          |   |  | -      |   |  | 99,900     |  |  | -            |  |  | -           | 
|Issuance of common    |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|stock for mineral     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|property and          |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|exploration costs in  |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|February 09, 2007 at  |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|$.10 per share        |  | 3,000,000    |  |  | 300            |  |  | -          |   |  | -      |   |  | 299,700    |  |  | -            |  |  | -           | 
|Issuance of common    |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|stock for cash in     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|February 16,2007 at   |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|$.25 per share net of |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|cost and fees         |  | 580,000      |  |  | 58             |  |  | -          |   |  | -      |   |  | 131,442    |  |  | -            |  |  | -           | 
|Issuance of common    |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|stock for cash in     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|March 12,2007 at      |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|$.25 per share net of |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|cost and fees         |  | 4,424,000    |  |  | 442            |  |  | -          |   |  | -      |   |  | 994,508    |  |  | -            |  |  | -           | 
|Issuance of common    |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|stock for cash in     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|March 27,2007 at      |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|$.25 per share net of |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|cost and fees         |  | 488,000      |  |  | 49             |  |  | -          |   |  | -      |   |  | 110,276    |  |  | -            |  |  | -           | 
|Issuance of common    |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|stock for cash in     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|April 12,2007 at $.25 |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|per share net of cost |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|and fees              |  | 490,600      |  |  | 49             |  |  | -          |   |  | -      |   |  | 110,995    |  |  | -            |  |  | -           | 
|Common stock          |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|issuable for cash     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|in February           |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|2007 at $.25 per      |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|share                 |  | -            |  |  | -              |  |  | 100,000    |   |  | 10     |   |  | 22,490     |  |  | -            |  |  | -           | 
|Common stock          |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|issuable for cash     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|in April 2007 at      |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|$.25 per share        |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|net of cost and       |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|fees                  |  | -            |  |  | -              |  |  | 640,000    |   |  | 64     |   |  | 144,703    |  |  | -            |  |  | -           | 
|Common stock          |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|issuable for cash     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|in May 2007 at        |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|$.25 per share        |  | -            |  |  | -              |  |  | 400,000    |   |  | 40     |   |  | 89,960     |  |  | -            |  |  | -           | 
|Common stock          |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|issued in May and     |  |              |  |  |                |  |  |            |   |  |        |   |  |            |  |  |              |  |  |             | 
|July 2007             |  | 1,140,000    |  |  | 114            |  |  | (1,140,000 | ) |  | (114   | ) |  |            |  |  |              |  |  |             | 

See accompanying notes to financial statements

F-6

---

|Issuance of common     |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|---------------------- |  | ---------- |  | - | ----- |  |  | ------- |  | - | -- |  | - | --------- |  | - | - |  | - | ---------- | - | - | ---------- | -
|stock for cash on      |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|May 26,2007 at $.25    |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|per share net of cost  |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|and fees               |  | 20,000     |  |   | 2     |  |  | -       |  |   | -  |  |   | 4,998     |  |   | - |  |   | -          |   |   | 5,000      |  
|Issuance of common     |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|stock for mineral      |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|property and           |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|exploration costs on   |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|June 7, 2007 at $.25   |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|per share              |  | 200,000    |  |   | 20    |  |  | -       |  |   | -  |  |   | 49,980    |  |   | - |  |   | -          |   |   | 50,000     |  
|Issuance of common     |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|stock for cash on      |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|June 07,2007 at $.25   |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|per share net of cost  |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|and fees               |  | 100,000    |  |   | 10    |  |  | -       |  |   | -  |  |   | 24,990    |  |   | - |  |   | -          |   |   | 25,000     |  
|Issuance of common     |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|stock for cash in July |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|,2007 at $.25 per      |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|share net of cost and  |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|fees                   |  | 2,494,000  |  |   | 249   |  |  | -       |  |   | -  |  |   | 615,751   |  |   | - |  |   | -          |   |   | 616,000    |  
|Issuance of common     |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|stock for cash in      |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|July 2007 at $.25 per  |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|share net of cost and  |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|fees                   |  | 802,000    |  |   | 80    |  |  | -       |  |   | -  |  |   | 180,420   |  |   | - |  |   | -          |   |   | 180,500    |  
|Common stock           |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|issuable for cash in   |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|July 2007 at $.25 per  |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|share                  |  | -          |  |   | -     |  |  | 870,000 |  |   | 87 |  |   | 217,413   |  |   | - |  |   | -          |   |   | 217,500    |  
|                       |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|Net Loss               |  | -          |  |   | -     |  |  | -       |  |   | -  |  |   | -         |  |   | - |  |   | (1,638,503 | ) |   | (1,638,503 | )
|Balance at July 31,    |  |            |  |   |       |  |  |         |  |   |    |  |   |           |  |   |   |  |   |            |   |   |            |  
|2007                   |  | 77,280,610 |  | $ | 7,727 |  |  | 870,000 |  | $ | 87 |  | $ | 3,632,012 |  | $ | - |  | $ | (1,764,280 | ) | $ | 1,875,546  |  

See Accompanying notes to the financial statements

F-7

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|STATEMENTS OF CASH FLOWS      
|(Stated in US dollars)        
|(Unaudited)                   

|                                                            |   |                     |   |   |                     |  |   | For the period from |  
|----------------------------------------------------------- | - | ------------------- | - | - | ------------------- |  | - | ------------------- | -
|                                                            |   |                     |   |   |                     |  |   | January 19, 2006    |  
|                                                            |   |                     |   |   |                     |  |   | (date of Inception) |  
|                                                            |   | For the six months  |   |   | For the six months  |  |   | through July 31,    |  
|                                                            |   | ended July 31, 2007 |   |   | ended July 31, 2006 |  |   | 2007                |  
|                                                            |   |                     |   |   |                     |  |   |                     |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                       |   |                     |   |   |                     |  |   |                     |  
|Net loss                                                    | $ | (1,638,503          | ) | $ | -                   |  | $ | (1,764,280          | )
|Depreciation                                                |   | 2,357               |   |   | -                   |  |   | 2,357               |  
|Common stock issued in exchange for services                |   | 100,000             |   |   | -                   |  |   | 100,000             |  
|Common stock issued in exchange for mineral                 |   |                     |   |   |                     |  |   |                     |  
|property and exploration costs                              |   | 350,000             |   |   | -                   |  |   | 350,000             |  
|Adjustments to reconcile net loss to net
      cash used in |   |                     |   |   |                     |  |   |                     |  
|operating activities:                                       |   |                     |   |   |                     |  |   |                     |  
|Changes in assets and liabilities:                          |   |                     |   |   |                     |  |   |                     |  
|Bank overdraft                                              |   | (2,345              | ) |   | -                   |  |   | -                   |  
|Prepaid expense                                             |   | (101,206            | ) |   | -                   |  |   | (101,206            | )
|Accounts payable and accrued expenses                       |   | (31,558             | ) |   | -                   |  |   | 62,534              |  
|                                                            |   |                     |   |   |                     |  |   |                     |  
|NET CASH (USED IN) OPERATING ACTIVITIES                     |   | (1,321,255          | ) |   | -                   |  |   | (1,350,595          | )
|                                                            |   |                     |   |   |                     |  |   |                     |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                       |   |                     |   |   |                     |  |   |                     |  
|                                                            |   |                     |   |   |                     |  |   |                     |  
|Loans, related parties                                      |   | (929,896            | ) |   | -                   |  |   | (929,896            | )
|Purchase of automobile                                      |   | (31,167             | ) |   | -                   |  |   | (31,167             | )
|                                                            |   |                     |   |   |                     |  |   |                     |  
|NET CASH (USED IN) INVESTING ACTIVITIES                     |   | ( 961,063           | ) |   | -                   |  |   | ( 961,063           | )
|                                                            |   |                     |   |   |                     |  |   |                     |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                       |   |                     |   |   |                     |  |   |                     |  
|Proceeds from sale of common stock and stock                |   |                     |   |   |                     |  |   |                     |  
|subscription, net of costs and fees                         |   | 3,164,086           |   |   | -                   |  |   | 3,189,826           |  
|Advances from related parties (Note E)                      |   | -                   |   |   | -                   |  |   | 3,600               |  
|                                                            |   |                     |   |   |                     |  |   |                     |  
|NET CASH PROVIDED BY FINANCING ACTIVITIES                   |   | 3,164,086           |   |   | -                   |  |   | 3,193,426           |  
|                                                            |   |                     |   |   |                     |  |   |                     |  
|NET CHANGE IN CASH AND CASH BALANCE END                     |   |                     |   |   |                     |  |   |                     |  
|OF PERIOD                                                   | $ | 881,768             |   | $ | -                   |  | $ | 881,768             |  
|                                                            |   |                     |   |   |                     |  |   |                     |  
|                                                            |   |                     |   |   |                     |  |   |                     |  
|Supplemental Disclosures of Cash Flow Information           |   |                     |   |   |                     |  |   |                     |  
|Cash paid during the period for interest                    | $ | -                   |   | $ | -                   |  | $ | -                   |  
|Income taxes paid                                           |   | -                   |   |   | -                   |  |   | -                   |  

See accompanying notes to financial statements

F-8

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|NOTES TO FINANCIAL STATEMENTS 
|JULY 31, 2007                 
|(Unaudited)                   

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the
preparation of the accompanying financial statements follows.

Business and Basis of Presentation

Tecton Corporation (the "Company") was incorporated under the
laws of the State of Nevada on January 19, 2006, as a wholly-owned subsidiary of
Hemis Corporation which spun off the Company on December 01, 2006. Since the
Company has not commenced significant operations it is considered an exploration
stage Company, as defined by Statement of Financial Accounting Standards No. 7
("SFAS 7"). As of July 31, 2007, the Company had entered into an agreement to
acquire a mineral claim with unknown reserves. To date the Company has generated
no revenues, has incurred expenses, and has sustained losses. Consequently, its
operations are subject to all risks inherent in the establishment of a new
business enterprise. The Company has been registered as an extraprovincial
company in British Columbia, Canada with an assumed name of Tecton Mineral
Corporation in order to register certain mineral claims in the Company's name.
For the period from inception through July 31, 2007, the Company has accumulated
losses of $1,764,280.

Cash

For purposes of the Statements of Cash Flows, the Company
considers all highly liquid debt instruments purchased with a maturity date of
three months or less to be cash equivalents. Cash at July 31, 2007 consists of a
checking account held at a bank.

Income Taxes

The Company has implemented the provisions on Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS
109"). SFAS 109 requires that income tax accounts be computed using the
liability method. Deferred taxes are determined based upon the estimated future
tax effects of differences between the financial reporting and tax reporting
bases of assets and liabilities given the provisions of currently enacted tax
laws.

Net Earnings (Losses) Per Common Share
  The Company computes earnings per share under Financial Accounting Standard
  No. 128, "Earnings Per Share" (SFAS 128). Net loss per common share
  is computed by dividing net loss by the weighted average number of shares of
  common stock and dilutive common stock equivalents outstanding during the year.
  Dilutive common stock equivalents consist of shares issuable upon the exercise
  of the Company's stock options and warrants (calculated using the treasury stock
  method). During the period January 19, 2006 (date of inception) to July 31,
  2007, the Company has no potentially dilutive common stock equivalents to consider
  in the calculation of the weighted average number of common shares outstanding.
  Common stock issuable is considered outstanding as of the original approval
  date for purposes of earnings per share computations.

Fair Value of Financial Instruments

The fair value of financial instruments, which include cash,
receivables, accounts payable and accrued expenses and advances from related
parties were estimated to approximate their carrying values due to the immediate
or short-term maturity of these financial instruments. Management is of the
opinion that the Company is not exposed to significant interest, currency or
credit risks arising from financial instruments.

F-9

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|NOTES TO FINANCIAL STATEMENTS 
|JULY 31, 2007                 
|(Unaudited)                   

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Foreign Currency Translation

The Company translates foreign currency financial statements in
accordance with the requirements of Statement of Financial Accounting Standards
No. 52, "Foreign Currency Translation." Assets and liabilities are translated at
current exchange rates in effect at the end the period. Revenues and expenses
are translated at the average rate of exchange throughout the year. Resulting
translation adjustments are recorded as a separate component in stockholder's
equity. Foreign currency transaction gains and losses are included in the
statement of operations.

Mineral Property and Exploration Costs

The Company expenses all costs related to the acquisition,
maintenance and exploration of mineral claims in which it has secured
exploration rights prior to establishment of proven and probable reserves. To
date, the Company has not established the commercial feasibility of its
exploration prospects, therefore, all costs are being expensed. Once proven
reserves are established the Company will capitalize all costs to the extent
that future cash flows from mineral reserves equals or exceeds the costs
deferred. The deferred costs will be amortized over the recoverable reserves
when a property reaches commercial production.

Comprehensive Income (Loss)

The Company adopted Statement of Financial Accounting Standards
  No. 130, "Reporting Comprehensive Income." SFAS No. 130 establishes
  standards for the reporting and displaying of comprehensive income and its components.
  Comprehensive income is defined as the change in equity of a business during
  a period from transactions and other events and circumstances from non-owner
  sources. It includes all changes in equity during a period except those resulting
  from investments by owners and distributions to owners. SFAS No. 130 requires
  other comprehensive income (loss) to include foreign currency translation adjustments
  and unrealized gains and losses on available-for-sale securities. For example,
  as of July 31, 2007 the Company has no items that represent comprehensive loss
  and, therefore, has not included a schedule of comprehensive loss in the financial
  statements.

Share Based Compensation

The Company accounts for share based compensation in accordance
  with SFAS 123 (R) "Share Based Payment," which requires measurement
  of compensation cost for all stock based awards at fair value on date of grant
  and recognition of compensation over the service period for awards expected
  to vest. The Company intends to determine the fair value of awards using the
  Black - Scholes valuation model. As of July 31, 2007, the Company has not issued
  any awards that qualify as share based compensation.

Interim Period Financial Statements

The interim period financial statements have been prepared by
the Company pursuant to the rules and regulations of the U.S. Securities and
Exchange Commission (the "SEC"). Certain information and footnote
disclosure normally included in financial statements prepared in accordance with
accounting principles generally accepted in the United States have been
condensed or omitted pursuant to such SEC rules and regulations. The interim
period financial statements should be read together with the audited financial
statements and accompanying notes included in the Company's audited financial
statements for the year ended January 31, 2007. In the opinion of the Company,
the unaudited financial statements contained herein contain all adjustments
(consisting of a normal recurring nature) necessary to present a fair statement
of the results of the interim periods presented.

Use of Estimates

The preparation of financial statements in conformity with U.S.
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.

F-10

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|NOTES TO FINANCIAL STATEMENTS 
|JULY 31, 2007                 
|(Unaudited)                   

NOTE A  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Segment Information

Statement of Financial Accounting Standards No. 131,
"Disclosures about Segments of an Enterprise and Related Information" ("SFAS
131") establishes standards for reporting information regarding operating
segments in annual financial statements and requires selected information for
those segments to be presented in interim financial reports issued to
stockholders. SFAS 131 also establishes standards for related disclosures about
products and services and geographic areas. Operating segments are identified as
components of an enterprise about which separate discrete financial information
is available for evaluation by the chief operating decision maker, or
decision-making group, in making decisions how to allocate resources and assess
performance. The information disclosed herein materially represents all of the
financial information related to the Company's principal operating segment. On
May 14, 2007 the Company incorporated Tecton Uranium Corporation a wholly owned
subsidiary. On May 23, 2007 the Companys wholly owned subsidiary Tecton Uranium
Corporation was spun off as an independent company by way of a dividend
declaration from the Company.

New Accounting Pronouncements

In June 2007, the Emerging Issues Task Force of the FASB issued
EITF Issue No. 07-3, Accounting for Nonrefundable Advance Payments for Goods
or Services to be Used in Future Research and Development Activities,(EITF
07-3)which is effective for fiscal years beginning after December 15,2007.EITF
07-3 requires that non refundable advance payments for future research and
development activities be deferred and capitalized. Such amounts will be
recognized as an expense as the goods are delivered or the related services are
performed. The Company does not expect the adoption of EITF 07-3 to have a
material impact on the financial results of the Company.

NOTE B  GOING CONCERN MATTERS

The accompanying financial statements have been prepared on a
going concern basis, which contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business. As shown in the
accompanying financial statements for the period January 19, 2006 (date of
inception) to July 31, 2007, the Company incurred losses of $1,764,280.

The Company's existence is dependent upon management's ability
to develop profitable operations and resolve its liquidity problems. The
accompanying financial statements do not include any adjustments that might
result should the Company be unable to continue as a going concern.

In order to improve the Company's liquidity, the Company is
actively pursuing additional equity financing through discussions with
investment bankers and private investors. There can be no assurance the Company
will be successful in its effort to secure additional equity financing.

If operations and cash flows continue to improve through these
efforts, management believes that the Company can continue to operate. However,
no assurance can be given that management's actions will result in profitable
operations or the resolution of its liquidity problems.

F-11

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|NOTES TO FINANCIAL STATEMENTS 
|JULY 31, 2007                 
|(Unaudited)                   

NOTE C  MINERAL PROPERTY AND EXPLORATION COSTS

On December 20, 2006 the Company acquired a 100% interest in
the Mineral Tenure (Ace of Spades mineral claim) located in the Nanaimo Mining
Division of British Columbia for cash of $3,267(CDN $3,675) which is included in
mineral property and exploration costs in the statement of operations.

On January 22, 2007, as amended on January 31, 2007, the Company
  entered into the Wapata Lake Uranium Option Agreement, whereby the Company acquired
  an option to purchase a 100% interest in 49 mineral dispositions located in
  Saskatchewan, Canada for cash of $848,032(CDN $1,000,000) of which $126,874
  (CDN $150,000) was due on or before February 05, 2007, CDN $350,000 to be paid
  on or before February 23, 2007 and CDN $500,000 to be paid on or before the
  Option expiry date. To date the Company has paid the $150,000 and the $350,000
  CDN. The Company also agreed to issue 3,000,000 common shares on or before February
  12, 2007 (these shares were issued on February 9, 2007) and to pay a 3% net
  smelter return. No amounts remain unpaid at July 31, 2007.

On May 30, 2007 the Company entered into an agreement with
GeoXplor Corp. to acquire an option to acquire the 100% mining rights to the
Firefly Properties located in San Juan County, Utah. Pursuant to the
agreement, the Company paid $200,000 in cash to GeoXplor Corp. on June 5, 2007,
and issued 200,000 shares of its common stock to GeoXplor Corp. on June 7, 2007.
The Company has agreed to issue a further 200,000 shares on May 30,2008 and
incur a further $750,000 of expenditures on the property.

NOTE D  AUTOMOBILE

| |            |   |        |  |   | Accumulated  |  |   | Net Carrying | 
| | ---------- | - | ------ |  | - | ------------ |  | - | ------------ | 
| |            |   | Cost   |  |   | Depreciation |  |   | Value        | 
| |            |   |        |  |   |              |  |   |              | 
| | Automobile | $ | 31,167 |  | $ | 2,357        |  | $ | 28,810       | 



NOTE E  ADVANCES FROM RELATED PARTIES AND RELATED PARTY
TRANSACTIONS

a) During the period ended July 31, 2007, the Company's
significant shareholders advanced funds to the Company for working capital
purposes. Total amount due to related parties was $3,600 as of July 31, 2007.
The amounts advanced are unsecured, non-interest bearing and have no specific
terms of repayment.

b) At July 31, 2007, the Company had paid $120,000 in
management fees to directors of the Company and $12,000 to a director of the
Company for consulting fees pursuant to management and consulting agreements.
Management fees expense to directors totalled $120,000 and is included in
general and administrative expenses in the statement of operations.

c) The Company loaned Hemis Corporation (the Companys CEO is
also Hemis Corporations CEO) $876,396. The loan is non-interest bearing.

d) The Company loaned Stratos Gold Corporation (the Companys
CEO is also Stratos Gold Corporations CEO) $3,500. The loan is non-interest
bearing.

e) The Company loaned Mineralogics Corporation (the Companys
CEO is also Mineralogics Corporations CEO) $50,000. The loan is non-interest
bearing.

F-12

---

|TECTON CORPORATION            
|------------------------------
|(An exploration stage company)
|NOTES TO FINANCIAL STATEMENTS 
|JULY 31, 2007                 
|(Unaudited)                   

NOTE F  COMMITMENTS AND CONTINGENCIES

The Company entered into Management agreements in December 02,
2006. Pursuant to the agreements, the Company is obligated to pay management
fees of $22,000 a month to directors of the Company. The Company also entered
into a Consulting agreement on December 22, 2006. Pursuant to the agreement, the
Company is obligated to pay fees of $10,000 a month for consulting services.

The Company entered into an independent consulting agreement
with Hudson Capital Corp. on February 1, 2007 pursuant to which the Company is
obligated to pay a consulting fee of $5,000 a month to Hudson Capital Corp. in
addition to issuing 1,000,000 common shares at a price of $0.10 per share. The
shares were issued on February 5, 2007.

NOTE G SUBSEQUENT EVENTS

Subsequent to July 31, 2007:

| | (a) | The Company has signed a service agreements with
      Mineralogics Corporation to commence August 01,2007 whereby Mineralogics
      will provide exploration office facilities ,administration of Tecton
      employees and oversight of Tectons mineral property acquisition and
      development activities.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

F-13

---

|**ITEM
    2.** | MANAGEMENT DISCUSSION AND ANALYSIS OF
      FINANCIAL **CONDITION/ PLAN OF OPERATIONS**
|--------------- | ---------------------------------------------------------------------------------------

Forward Looking Statements

This Quarterly Report on Form 10-QSB contains forward-looking
statements that involve risks and uncertainties. These statements relate to
future events or our future financial performance. In some cases, you can
identify forward-looking statements by terminology including, "could" "may",
"will", "should", "expect", "plan", "anticipate", "believe", "estimate",
"predict", "potential" and the negative of these terms or other comparable
terminology. These statements are only predictions. Actual events or results may
differ materially.

While these forward-looking statements, and any assumptions
upon which they are based, are made in good faith and reflect our current
judgment regarding the direction of our business, actual results will almost
always vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggested in this Quarterly Report.

Introduction

We were incorporated as a Nevada company on January 19, 2006,
as a wholly owned subsidiary of Hemis Corporation. On December 1, 2006 Hemis
declared a dividend in the amount of one common share of Tecton for every
$0.0001 of dividend declared, which equated to one common share of Tecton for
every 100 shares of the Hemis owned as at December 1, 2006. At the same time the
dividend was declared, Hemis cancelled its share ownership in Tecton. The effect
of this dividend declaration and share cancellation was that Tecton was spun off
as an independent company.

We formed one active wholly-owned subsidiary, Tecton Uranium
Corporation which was incorporated in Nevada on May 14, 2007. On May 23, 2007
Tecton Uranium Corporation was spun off as an independent company by way of a
dividend declaration from the Company.

We have been engaged in the acquisition, exploration and
development of mineral properties since our inception.

Overview

We are engaged in the acquisition of uranium properties that
are either past producers, have been the subject of prior work programs and, or
contain historic resources. Additionally, we are looking to acquire other
selective early stage properties. Our geographic focus is the United States and
Canada.

On December 20, 2006, we acquired the rights to the Ace of
Spades property on Texada Island, British Columbia, Canada from David Anthony
Zamida for a final purchase price of approximately $3,267 for 100% interest in
this property. We do not plan to explore this property; instead we plan to
option this property to another mining company within the next 12 months.

2

---

On January 22, 2007 we signed an agreement with the
Saskatchewan Syndicate to acquire an option to the 100% interest in the mineral
rights to a property with uranium potential in Wapata Lake, Saskatchewan, Canada
(the Wapata Lake Property). The Saskatchewan Syndicate is comprised of Timothy
Young of Vancouver, B.C., and 455702 B.C. Ltd. We signed an addendum to this
agreement on January 31, 2007 (together, the Wapata Lake Agreement). As at
September 18, 2007 we have not made the final option payment which was due to
the Saskatchewan Syndicate on September 1, 2007. This means that the Wapata Lake
Agreement has theoretically lapsed. The parties are negotiating an extension to
the Wapata Lake Agreement to allow the Company to find a joint venture partner
to participate in the exploration project. Until such an extension is agreed, it
is not our present intention that exploration of the Wapata Lake Property will
form part of our plan of operation for the next 12 months

On May 30, 2007, we entered into an agreement with GeoXplor
Corp. whereby we have acquired an option to acquire a 100% interest in the
certain mining properties, located in San Juan County, Utah (the Firefly
Properties). The Firefly Properties are comprised of mineral concessions with
uranium potential that were issued to GeoXplor by the Bureau of Land Management.

We are an exploration stage company. The Firefly Properties are
at the exploration stage and there is no assurance that they contain a
commercially viable ore body. Further exploration beyond the scope of our
planned exploration activities will be required before a final evaluation as to
the economic and legal feasibility of mining of the properties is determined. We
plan to undertake such further exploration, however we anticipate that we will
require significant additional financing in order to do so, and there is no
assurance that we will be able to obtain the necessary financing in the future.
Even if we do obtain the financing, there is no assurance that further
exploration will result in a final evaluation that a commercially viable mineral
deposit exists on the properties.

As of September 18, 2007 we have generated no revenues, have
achieved losses since inception, have been issued a going concern opinion by our
auditors and rely upon the sale of our securities to fund operations. We will
not generate revenues in the short term, even if our exploration program
indicates that a mineral deposit may exist on the Firefly Properties.
Accordingly, we will be dependent on future additional financing in order to
maintain our operations and continue our exploration activities.

Plan of Operation

Our plan of operation for the next twelve months beginning
September 2007 is to carry out exploration of the Firefly Properties and to
acquire other selective early stage properties in the US or Canada. Our plan of
operation does not include exploration of the Ace of Spades property, as we
intend to option this out to another mining company within the next 12 months.
We intend to primarily explore for uranium, but if we discover that any of our
mineral properties hold potential for other minerals that our management
determines are worth exploring further, then we will explore for those other
minerals. Our exploration programs are preliminary in nature in that their
completion will not result in a determination that any of our properties
contains commercially exploitable quantities of mineralization. Our management
estimates that over the next 12 months (beginning September 2007) we will spend
approximately $1,000,000 in exploration expenses to determine if our mineral
concessions do have commercially exploitable quantities of mineralization.

3

---

Our exploration program will be directed by our management and
will be supervised by Dr. Norman Meier, our President and Chief Executive
Officer. We will engage contractors to carry out our exploration programs under
Dr. Meier's supervision. We plan to engage project geologists, geochemical
sampling crews and drilling companies as contractors, depending on the specific
exploration program of the property. We plan to solicit bids from drilling
companies prior to selecting any drilling company to complete a drilling
program. We anticipate paying normal industry rates for core drilling.

We plan to continue exploration of the Firefly mineral claims
for so long as the results of the geological exploration that we complete
indicate further exploration of our mineral claims is recommended and we are
able to obtain the additional financing necessary to enable us to continue
exploration. All exploration activities on the Firefly Properties are presently
preliminary exploration activities. Advanced exploration activities, including
the completion of comprehensive drilling programs, will be necessary before we
are able to complete any feasibility studies on any of our mineral properties.
If our exploration activities result in an indication that the Firefly
Properties contain a potentially commercially exploitable quantity of uranium,
then we would attempt to complete feasibility studies on the property to assess
whether commercial exploitation of the property would be commercially feasible.
There is no assurance that commercial exploitation of our mineral claims would
be commercially feasible even if our initial exploration program shows evidence
of uranium mineralization.

If we determine not to proceed with further exploration of the
Firefly Properties due to results from geological exploration that indicate
further exploration is not recommended, or due to our lack of financing, we will
attempt to acquire additional interests in new mineral resource properties in
Canada and the US. Due to our limited finances, there is no assurance that we
would be able to acquire an interest in a new property that merits further
exploration. If we were to acquire an interest in a new property, then our plan
would be to conduct resource exploration of the new property. In any event, we
anticipate that our acquisition of a new property and any exploration activities
that we would undertake will be subject to our achieving additional financing,
of which there is no assurance.

Exploration

The Firefly Properties are in the early stages of exploration.
We will use a phased exploration approach by which the results of each phase
will determine the nature and level of activities for the next.

The Firefly project is a uranium-vanadium project positioned
within the La Sal mineral trend, an east-west "channel" within the Jurassic Salt
Wash Member of the Morrison Formation. The La Sal trend contains numerous small
to large uranium-vanadium deposits discovered from the 1940's through the late
1970's, but has seen little to no exploration since. We have only recently
acquired the rights to acquire the mining rights to this project. Our initial
priority will be to try to expand our land position in this area and obtain
further data and information on the surrounding La Sal trend and in this way
begin to build a GIS database. Once we have presentable data in a GIS format, we
will begin the process of applying to the United States Forest Service to obtain
the necessary permits. Following this, we will commence initial drilling with
relatively inexpensive open holes using conventional mud as a circulation medium
and gamma log the holes rather than assay. Overall, we anticipate spending $3-5
million over the next 3-5 years.

4

---

Our planned exploration expenditures for the next twelve months
(beginning September 2007) on our mineral properties, together with amounts we
expect to spend on administrative costs are summarized as follows:

Description of
      Expense
    AmountExploration of the
      Firefly Properties
    $1,000,000 (1)Obtaining
      interests in other mining rights
    $1,000,000General and
      Administrative Expenses
    $550,000Total
    $2,550,000


(1) Under the terms of our agreement with GeoXplor, we must
incur exploration expenditures of at least $200,000 by May 30, 2008.

The general and administrative expenses for the year will
consist primarily of professional fees for the audit and legal work relating to
our regulatory filings throughout the year, as well as transfer agent fees,
management fees, investor relations and general office expenses.

Firefly

The exploration expenses relating to the Firefly Properties are
calculated bearing in mind what management intends to spend on exploring the
property, in addition to amounts that we need to spend to maintain our
obligations pursuant to the Firefly Agreement. Under the terms of the Firefly
Agreement, we have the exclusive right to conduct exploration on the Firefly
Properties during the term of the agreement, provided that we pay to GeoXplor an
aggregate sum of $200,000 by June 15, 2007 (this was paid in full on June 5,
2007). In addition, we must incur minimum annual exploration expenditures and
stock issuances.

Payment Schedule: Exploration Expenditure, Shares to
be Issued, Net Smelter Payments

We are obligated to make the following minimum exploration
expenditures in order to maintain the Firefly Agreement and fully exercise the
option:

Due Date
    Minimum Amount of Exploration
      ExpendituresMay 30, 2008
    $200,000May 30, 2009
    $250,000May 30, 2010
    $300,000Total
    $750,000


We are also obligated to make the following issuances of our
capital stock to GeoXplor in order to maintain the Firefly Agreement and fully
exercise the option:

Due Date
    Shares to be IssuedOn or before June
      25, 2007
    200,000 common shares (issued June 7, 2007)On or before May
      30, 2008
    200,000 common shares


5

---

We are also obligated to pay to GeoXplor a net smelter royalty
equal to 3% of sales of uranium or other ores from the Firefly Properties. At
any time, we may acquire 50% of the rights of GeoXplor to the Net Smelter
Royalty by paying GeoXplor $1,000,000 and issuing GeoXplor 500,000 shares of our
common stock.

We have also agreed to make the following payments upon the
occurrence of the specific events indicated:

Event
    Required PaymentUpon earlier of:      a) Receipt by
      Tecton of a feasibility study recommending production; and
           b) May 30, 2010.
    $1,000,000Upon earlier of:      a)
      Commencement of construction of mine on Firefly Property; and
           b) May 30, 2011.
    $1,000,000Upon earlier of:      a)
      Commencement of commercial productionfrom Firefly Property; and
           b) May 30, 2012.
    $1,500,000Upon receipt of first $1,500,000 from commercial production
        from the Firefly Property.
      $1,500,000


As of July 31, 2007, we had approximately $881,768 in cash in
our bank accounts. Based on our planned expenditures as outlined above, we
require additional capital of approximately $618,232 to proceed with our plan of
operations over the next twelve months. We require additional financing in order
to pursue our exploration programs. If we achieve less than the full amount of
financing that we require, we will scale back our exploration programs on our
mineral properties and will proceed with scaled back exploration plans based on
our available financial resources.

From the date of this Quarterly Report for the following 30
months, we anticipate that we will not generate any revenue. Accordingly, we
will be required to obtain additional financing in order to continue our plan of
operations. We believe that debt financing from third parties will not be an
alternative for funding additional phases of exploration as we do not have
tangible assets to secure any debt financing. We anticipate that additional
funding will be in the form of equity financing from the sale of our common
stock. However, we do not have any financing arranged and we cannot provide
investors with any assurance that we will be able to raise sufficient funding
from the sale of our common stock to fund our exploration programs. In the
absence of such financing, we will not be able to continue exploration of our
mineral claims. Even if we are successful in obtaining equity financing to fund
our exploration program, there is no assurance that we will obtain the funding
necessary to pursue any advanced exploration of our mineral claim following the
completion of preliminary exploration. If we do not continue to obtain
additional financing, we will be forced to abandon the property and our plan of
operations.

6

---

Our exploration plans will be continually evaluated and
modified as exploration results become available. Modifications to our plans
will be based on many factors, including: results of exploration, assessment of
data, weather conditions, exploration costs, and the price of uranium and other
mineral resources and available capital. Further, the extent of our exploration
programs that we undertake will be dependent upon the amount of financing
available to us.

Product Research and Development

We do not anticipate spending any material amounts in
connection with product research and development activities during the next
twelve months.

Acquisition of Plant and Equipment and Other Assets

Apart from our interests in the mineral concessions, we do not
anticipate the sale or acquisition of any material property, plant or equipment
during the next twelve months. Any acquisitions are subject to obtaining
additional financing.

Number of Employees

As at September 18, 2007, our Chief Executive Officer, Chief
Financial Officer, and Chief Operating Officer work as part time consultants,
each contributing approximately 20% of their time to Tecton. We have also
retained two geologist consultants on our advisory board part time. In addition,
we also engage independent consultants in the areas of marketing, accounting,
bookkeeping and legal services.

In order for us to attract and retain quality personnel, we
anticipate we will have to offer competitive salaries to future employees. We
anticipate that it may become desirable to add additional full and or part time
employees to discharge certain critical functions during the next twelve months.
This projected increase in personnel is dependent upon our ability to generate
revenues and obtain sources of financing. There is no guarantee that we will be
successful in raising the funds required or generating revenues sufficient to
fund the projected increase in the number of employees. As we continue to
expand, we will incur additional cost for personnel.

7

---

Results of Operations for the three months ended July 31,
2007 (and 2006), six months ended July 31, 2007 (and 2006) and for the period
from January 19, 2006 (inception) to July 31, 2007

Our results of operations are presented below:

Three Months Ended July 31,
      2007
    Three Months Ended July
      31, 2006
    For the six months ended
      July 31, 2007
    For the six months ended
      July 31, 2006
    For the periodfrom January
      19, 2006 (date of Inception) through July 31, 2007Costs and
      Expenses:General and Administrative
    $ 313,008
    -
    $ 551,541
    -
    $ 674,051Mineral property and exploration costs
    $ 291,492
    -
    $ 1,086,962
    -
    $1,090,229Total Operating Expenses
    $ 604,500
    -
    $1,638,503
    -
    $1,764,280Net Loss
    $ (604,500)
    -
    $ (1,638,503)
    
    - $ (1,764,280)Loss per common share (basic and fully diluted)
    $ (0.0081)
    -
    $ (0.0227)
    -
    -Weighted average common shares outstanding
    74,385,980
    -
    72,070,582
    -
    -


Lack of Revenue

Since inception on January 19, 2006 until July 31, 2007 we have
not yet earned any revenues. We anticipate that we will not earn any revenues
during the current fiscal year or in the foreseeable future as we are presently
engaged in the exploration of our mineral properties. The auditor's report on
our fiscal year end financial statements contains an explanatory paragraph which
identifies issues that raise substantial doubt about our ability to continue as
a going concern. Our financial statements do not include any adjustment that
might result from the outcome of this uncertainty.

Expenses

From the period from inception on January 19, 2006 until July
31, 2006, our total operating expenses were $1,764,280. The major components of
our expenses for this period consist of $1,090,229 for mineral property and
exploration costs and $674,051 for general and administrative costs which
primarily included the following: accounting and legal fees, filings fees, bank
charges, consulting and management fees, payroll, investor relations fees,
marketing expenses, office and telephone expenses, stock based compensation,
travel and entertainment expenses.

8

---

For the three months ended July 31, 2007 our total operating
expenses were $604,500 compared to $1,034,003 for the previous quarter (three
months ended April 30, 2007) and $nil for the three months ended July 31, 2006.
The $604,500 of operating expenses that we incurred for the three months ended
July 31, 2007 consisted of the following: $313,008 on general and administrative
expenses; $41,492 on exploration costs; and $250,000 on mineral property costs
(together $291,492 on mineral property and exploration costs). For the six
months ended July 31, 2007, our total operating costs were $1,638,503, which
consisted of the following: $551,541 in general and administrative expenses;
$64,181 in exploration costs; and $1,022,781 in mineral property costs (together
$1,086,962 in mineral property and exploration costs). We anticipate that our
operating expenses will fluctuate from quarter to quarter depending on the level
of our mineral property and exploration costs.

The mineral property and exploration costs are incurred because
of our mineral properties, which costs are described in more detail above, under
Item 2.

Net Losses

From January 19, 2006 (date of inception) to July 31, 2007, we
incurred a net loss of $1,764,280. Our loss per share was nil for the period
from January 19, 2006 (date of inception) to July 31, 2007.

For the three months ended July 31, 2007 we incurred a net loss
of $604,500 compared to a net loss of $nil for the three months ended July, 31,
2006. For the six months ended July 31, 2007 we incurred a net loss of
$1,638,503 compared to a net loss of $nil for the same period in 2006. Our net
loss per share was $0.0081 for the three months ended July 31, 2007.

Our net loss to date is primarily due to a lack of revenue
associated with increased operating expenses as described above. We expect to
continue to incur losses for at least another two years.

Liquidity and Capital Resources

As at July 31, 2007 we had cash of approximately $881,768 and a
working capital surplus of approximately $1,846,736. This is a decrease from our
cash position 3 months ago when we had $1,253,015 in cash and a working capital
surplus of $1,393,628 (as at April 30, 2007). As at July 31, 2007, we had total
assets of $1,941,680. Our accumulated deficit was $1,764,280 as at July 31,
2007.

Our net loss of $(1,764,280) from January 19, 2006 (date of
inception) to July 31, 2007 was funded by a combination of private placements
and loans. During the six months ended July 31, 2007 we raised $3,164,086 from
the sale of our common stock. The increase in cash during the six months ended
July 31, 2007 was $881,768.

For the six month period ended July 31, 2007, we used net cash
of $1,321,255 in operating activities, and net cash of $961,063 in investing
activities. We received net cash of $3,164,086 from financing activities for the
six month period ended July 31, 2007. For the six month period ended July 31,
2007 our monthly cash requirement was approximately $380,386. As of July 31,
2007, we had cash of $881,768 which will cover our operating and investing costs
for approximately 2 months according to our current monthly burn rate.

9

---

We expect that our total expenses will increase over the next
year as we increase our business operations and seek additional mineral
interests. We have not been able to reach the break-even point since our
inception on January 19, 2006 and have had to rely on outside capital resources.
We do not anticipate making any revenues for the next year.

We anticipate that we will incur substantial losses over the
next 30 months. We estimate that we will purchase another option to acquire 100%
interest in a property, complete property purchase obligations on the Firefly
Properties, and start an exploration project on the Firefly Properties over the
next 12 months beginning September 2007. In order to exercise our option on the
Firefly Properties, we must incur exploration expenditures of $200,000 by May
30, 2008. In addition, we need approximately $550,000 for our general and
administrative expenses (including professional fees). Our total cash
requirements for the next 12 months will be approximately $2,550,000 less
whatever cash or cash equivalents we have available to us (currently $881,768 as
at July 31, 2007).

We plan to raise capital through private placements, a direct
offering or loans. There is no assurance that any additional financing will be
available or if available, on terms that will be acceptable to us. Obtaining
additional financing will be subject to a number of factors including market
conditions, investor acceptance of our business plan, and investor sentiment.
These factors may make the timing, amount, terms and conditions of additional
financing unattractive or unavailable to us.

If we are unable to achieve the necessary additional financing,
then we plan to reduce the amounts that we spend on our exploration activities
and administrative expenses in order to be within the amount of capital
resources that are available to us. Specifically, we anticipate that we would
defer any drilling programs pending our obtaining additional financing.

Future Financings

We will require additional financing in order to proceed with
the exploration of our mineral properties. We plan to complete private placement
sales of our common stock in order to raise the funds necessary to pursue our
plan of operations. Issuances of additional shares will result in dilution to
our existing shareholders. We currently do not have any arrangements in place
for the completion of any private placement financings and there is no assurance
that we will be successful in completing any private placement financings.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that is
material to stockholders.

Inflation

The effect of inflation on the Company's revenue and operating
results was not significant.

10

---

Audit Committee

The functions of the audit committee are currently carried out
by our Board of Directors. Our Board of Directors has determined that we do not
have an audit committee financial expert on our Board of Directors carrying out
the duties of the audit committee. Our Board of Directors has determined that
the cost of hiring a financial expert to act as a director of Tecton and to be a
member of the audit committee or otherwise perform audit committee functions
outweighs the benefits of having a financial expert on the audit committee.

Critical Accounting Policies

Mineral Property and Exploration Costs

The Company expenses all costs related to the acquisition,
maintenance and exploration of mineral claims in which it has secured
exploration rights prior to establishment of proven and probable reserves. To
date, the Company has not established the commercial feasibility of its
exploration prospects, therefore, all costs are being expensed. Once proven
reserves are established the Company will capitalize all costs to the extent
that future cash flows from mineral reserves equals or exceeds the costs
deferred. The deferred costs will be amortized over the recoverable reserves
when a property reaches commercial production.

|ITEM 3. | CONTROL AND PROCEDURES
|------- | ----------------------

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, we carried
out an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures as of July 31, 2007, being the date of our
second quarter end covered by this Quarterly Report. This evaluation was carried
out under the supervision and with the participation of our Chief Executive
Officer and Chief Financial Officer. Upon that evaluation, our Chief Executive
Officer and Chief Financial Officer concluded that our disclosure controls and
procedures are effective in timely alerting management to material information
relating to us required to be included in our periodic SEC filings.

Disclosure controls and procedures are controls and other
procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange Commission's rules and forms.

During our quarter ended July 31, 2007, there were no changes
in our internal control over financial reporting that have materially affected,
or are reasonably likely to affect, our internal control over financial
reporting.

11

---

The term "internal control over financial reporting" is defined
as a process designed by, or under the supervision of, the registrant's
principal executive and principal financial officers, or persons performing
similar functions, and effected by the registrant's board of directors,
management and other personnel, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles and includes those policies and procedures that:

(1)
    Pertain to the maintenance of records that in reasonable
      detail accurately and fairly reflect the transactions and dispositions of
      the assets of the registrant;(2)
    Provide reasonable assurance that transactions are
      recorded as necessary to permit preparation of financial statements in
      accordance with generally accepted accounting principles, and that
      receipts and expenditures of the registrant are being made only in
      accordance with authorizations of management and directors of the
      registrant; and(3)
    Provide reasonable assurance regarding prevention or
      timely detection of unauthorized acquisition, use or disposition of the
      registrant's assets that could have a material effect on the financial
      statements.


PART II  OTHER INFORMATION

|ITEM 1. | LEGAL PROCEEDINGS
|------- | -----------------

We are not aware of any pending or threatened legal proceedings
which involve Tecton or any of its properties or subsidiaries.

|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES
|------- | ---------------------------------------

- In May 2007 we issued an aggregate of 420,000 shares of common stock to
  various non-US investors in exchange for cash at $0.25 per share.
- In June 2007 we issued an aggregate of 100,000 shares of our common stock
  to a non- US investor in exchange for cash at $0.25 per share. We also issued
  200,000 shares of our common stock to GeoXplor Corp. in order to maintain our
  interest in the Firefly property. The shares were issued pursuant to Rule 4(2)
  of the Securities Act.
- In July 2007 we issued an aggregate of 3,296,000 shares of our common stock
  and committed to issue another 870,000 shares of our common stock to non-US
  investors in exchange for cash at $0.25 per share.

Shares issued to all U.S. residents, were exempt from
registration pursuant to Rule 4(2) of the Securities Act. All of the other stock
and warrant issuances described above were exempt from registration under
Regulation S of the Securities Act. Where the purchasers of the shares in the
issuances described above are not named, they are all non U.S. residents, unless
otherwise noted.

12

---

We completed the offerings of the common stock pursuant to Rule
903 of Regulation S of the Securities Act on the basis that the sale of the
common stock was completed in an "offshore transaction", as defined in Rule
902(h) of Regulation S. We did not engage in any directed selling efforts, as
defined in Regulation S, in the United States in connection with the sale of the
units. Each investor was not a US person, as defined in Regulation S, and was
not acquiring the shares for the account or benefit of a US person.

Our reliance upon the exemption under Section 4(2) of the
Securities Act of 1933 was based on the fact that the issuance of these shares
did not involve a public offering.The offering was not a "public
offering" as defined in Section 4(2) due to the insubstantial number of persons
involved in the deal, size of the offering, manner of the offering and number of
shares offered. We did not undertake an offering in which we sold a high number
of shares to a high number of investors. In addition, the investors had the
necessary investment intent as required by Section 4(2) since they agreed to and
received a share certificate bearing a legend stating that such shares are
restricted pursuant to Rule 144 of the Securities Act. This restriction ensures
that these shares would not be immediately redistributed into the market and
therefore not be part of a "public offering. The investors negotiated the terms
of the transactions directly with our executive officers. No general
solicitation was used, no commission or other remuneration was paid in
connection with these transactions, and no underwriter participated. Based on an
analysis of the above factors, these transactions were effected in reliance on
the exemption from registration provided in Section 4(2) of the Securities Act
for transactions not involving any public offering.

Each investor was given adequate access to sufficient
information about us to make an informed investment decision. None of the
securities were sold through an underwriter and accordingly, there were no
underwriting discounts or commissions involved. No registration rights were
granted to any of the purchasers.

|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES
|------- | -------------------------------

None

|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE SECURITY
      HOLDERS
|------- | ------------------------------------------------------

None

13

---

|ITEM 5. | OTHER INFORMATION
|------- | -----------------

On September 14, 2007 we accepted Douglas Olivers notice of
resignation as a Director, bringing our total number of directors to two. Dr.
Oliver will continue to serve as an officer in his expanded role as our Chief
Operating Officer. He will also continue to oversee all of our exploration and
day-to-day activities.

On August 7, 2007, we entered in an Advisory Board Agreement
with Akin Commodity Consulting Ltd., pursuant to which we appointed Mr. Hikmet
Akin to our Advisory Board. The agreement provides that Mr. Akin will assist us
in finding mining properties and will make introductions to mining persons and
businesses around the world. The term of the agreement is for two years and as
compensation we have agreed to pay Mr. Akin 20,000 unregistered shares of our
common stock and grant him 500,000 options to purchase unregistered shares of
our common stock, at an exercise price of $1.00 per share, exercisable for two
years.

|ITEM 6. | EXHIBITS
|------- | --------

Exhibit Number
      Exhibit Description3.1
      Certificate
          (Articles) of Incorporation as filed with the Nevada Secretary of 
          State on January 19, 2006 (1)10.1
      Norman
          Meier Management Agreement(1)10.2
      Bruno Weiss Management Agreement(1)10.3
      Canaccord
          Capital Corporation Fee Agreement(1)10.4
      Hudson Capital Corp. Consulting Agreement(1)10.5
      Emil
          Summermatter Consulting Agreement(1)10.6
      Firefly Agreement31.1
      Certification
          of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
          Act of 200231.2
      Certification
          of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
          Act of 200232.1
      Certification
          of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
          pursuant to Section 906 of the Sarbanes-Oxley Act of 200232.2
      Certification
          of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
          pursuant to Section 906 of the Sarbanes-Oxley Act of 2002


(1) Included as exhibits on our Form
SB-2/A filed April 17, 2007.

14

---

SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|                         | Tecton Corporation                          
|------------------------ | --------------------------------------------
|                         | (Registrant)                                
|                         |                                             
|                         | /s/
      Norman Meier                      
|Date: September 19, 2007 | Norman Meier                                
|                         | Director, President, Chief Executive Officer

15

---