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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended February 28,
2011

or

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________________________to
_________________________

Commission File Number 000-52796

FORZA ENVIRONMENTAL BUILDING PRODUCTS,
INC.(Exact name of registrant as specified in its charter)

|Nevada                                           | 71-1046926                       
|------------------------------------------------ | ---------------------------------
|(State or other jurisdiction of incorporation or | (IRS Employer Identification No.)
|organization)                                    |                                  
|                                                 |                                  
|5927 Balfour Court, Suite 112, Carlsbad, CA      | 92008                            
|(Address of principal executive offices)         | (Zip Code)                       

760.585.1900(Registrants telephone number, including
area code)

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

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

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a small
reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act

|Large accelerated filer [ ] |                            | Accelerated filer [ ]        
|--------------------------- | -------------------------- | -----------------------------
|Non-accelerated filer [ ]   | (Do not check if a smaller | Smaller reporting company [X]
|                            | reporting company)         |                              

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act)
[ ] YES [X] NO

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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 Exchange Act after the
distribution of securities under a plan confirmed by a court.
[ ] YES [ ] NO

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
[
] YES [ ] NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date. 42,985,000
common shares issued and outstanding as of April 19, 2011.

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Our unaudited interim financial statements for the nine month
period ended February 28, 2011, form part of this quarterly report. They are
stated in United States Dollars (US$) and are prepared in accordance with United
States generally accepted accounting principles.

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|FORZA ENVIRONMENTAL BUILDING PRODUCTS, INC.
|-------------------------------------------
|(FORMERLY GURATA GOLD, INC.)               
|(A DEVELOPMENT STAGE COMPANY)              
|BALANCE SHEETS                             

|                                                                                                                                                                                               |   | (UNAUDITED)  |   |   |          |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------ | - | - | -------- | -
|                                                                                                                                                                                               |   | February 28, |   |   | May 31,  |  
|                                                                                                                                                                                               |   | 2011         |   |   | 2010     |  
|ASSETS                                                                                                                                                                                         |  
|Current assets:                                                                                                                                                                                |   |              |   |   |          |  
|Cash                                                                                                                                                                                           | $ | 68           |   | $ | 50,890   |  
|Accounts receivable                                                                                                                                                                            |   | -            |   |   | 109      |  
|                                                                                                                                                                                               |   |              |   |   |          |  
|Total current assets                                                                                                                                                                           |   | 68           |   |   | 50,999   |  
|                                                                                                                                                                                               |   |              |   |   |          |  
|Construction in progress                                                                                                                                                                       |   | 32,613       |   |   | -        |  
|                                                                                                                                                                                               |   |              |   |   |          |  
|Total assets                                                                                                                                                                                   | $ | 32,681       |   | $ | 50,999   |  
|                                                                                                                                                                                               |   |              |   |   |          |  
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                          |  
|Current liabilities:                                                                                                                                                                           |   |              |   |   |          |  
|Accounts payable                                                                                                                                                                               | $ | 80,039       |   | $ | 46,829   |  
|Accrued
      liabilities                                                                                                                                                                      |   | 15,576       |   |   | 5,000    |  
|Advances payable                                                                                                                                                                               |   | 35,107       |   |   | 33,183   |  
|Due to related parties                                                                                                                                                                         |   | 24,390       |   |   | 813      |  
|                                                                                                                                                                                               |   |              |   |   |          |  
|Total current
      liabilities                                                                                                                                                                |   | 155,112      |   |   | 85,825   |  
|                                                                                                                                                                                               |   |              |   |   |          |  
|                                                                                                                                                                                               |   |              |   |   |          |  
|Total liabilities                                                                                                                                                                              |   | 155,112      |   |   | 85,825   |  
|Commitments and contingencies                                                                                                                                                                  |   | -            |   |   | -        |  
|Stockholders' deficit:                                                                                                                                                                         |   |              |   |   |          |  
|Common stock; authorized 75,000,000; $0.001
      par value; 
           42,550,000 and 39,000,000 shares
      issued and outstanding at 
           February 28, 2011
      and May 31, 2010 |   | 42,550       |   |   | 39,000   |  
|Additional paid in capital                                                                                                                                                                     |   | 912,700      |   |   | 76,250   |  
|Common stock subscribed                                                                                                                                                                        |   | 225,000      |   |   | 205,000  |  
|Deficit accumulated during the exploration stage                                                                                                                                               |   | (327,027     | ) |   | (327,027 | )
|Deficit accumulated during the development stage                                                                                                                                               |   | (975,654     | ) |   | (28,049  | )
|                                                                                                                                                                                               |   |              |   |   |          |  
|                                                                                                                                                                                               |   |              |   |   |          |  
|Total
      stockholders' deficit                                                                                                                                                              |   | (122,431     | ) |   | (34,826  | )
|                                                                                                                                                                                               |   |              |   |   |          |  
|Total liabilities
      and stockholders' deficit                                                                                                                                              | $ | 32,681       |   | $ | 50,999   |  

The accompanying notes are an integral part of these interim
  financial statements

---

|**FORZA ENVIRONMENTAL BUILDING
      PRODUCTS, INC.**
|-----------------------------------------------------
|(FORMERLY GURATA GOLD, INC.)                         
|(A DEVELOPMENT STAGE COMPANY)                        
|STATEMENTS OF OPERATIONS                             
|(UNAUDITED)                                          

|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   | From May 18,           |  
|------------------------------------------------------------------------ | - | ------------------ | - | - | ------------------ | - | - | ----------- | - | - | ---------- | - | - | ---------------------- | -
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   | **2010 (Inception of** |  
|                                                                         |   | Three Months       |   |   | Nine Months        |   |   | development |  
|                                                                         |   | Ended February 28, |   |   | Ended February 28, |   |   | stage) to   |  
|                                                                         |   | 2011               |   |   | 2010               |   |   | 2011        |   |   | 2010       |   |   | February 28,           |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Revenue:                                                                 |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Sales                                                                    | $ | 41,073             |   | $ | -                  |   | $ | 41,073      |   | $ | -          |   | $ | 41,073                 |  
|Cost of Goods Sold                                                       |   | (36,375            | ) |   | -                  |   |   | (36,375     | ) |   | -          |   |   | (36,375                | )
|Gross Profit                                                             |   | 4,698              |   |   | -                  |   |   | 4,698       |   |   | -          |   |   | 4,698                  |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Operating Expenses:                                                      |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Administrative fees                                                      |   | 13,500             |   |   | -                  |   |   | 33,500      |   |   | -          |   |   | 37,000                 |  
|Bank charges and interest                                                |   | 671                |   |   | -                  |   |   | 1,830       |   |   | -          |   |   | 1,925                  |  
|Consulting                                                               |   | 23,042             |   |   | -                  |   |   | 118,958     |   |   | -          |   |   | 126,271                |  
|Entertainment                                                            |   | 224                |   |   | -                  |   |   | 1,383       |   |   | -          |   |   | 1,383                  |  
|Office                                                                   |   | 3,859              |   |   | -                  |   |   | 19,623      |   |   | -          |   |   | 24,208                 |  
|Professional fees                                                        |   | 4,685              |   |   | -                  |   |   | 32,914      |   |   | -          |   |   | 36,155                 |  
|Regulatory                                                               |   | 1,709              |   |   | -                  |   |   | 5,401       |   |   | -          |   |   | 5,401                  |  
|Rent                                                                     |   | 5,100              |   |   | -                  |   |   | 15,300      |   |   | -          |   |   | 17,000                 |  
|Repairs and maintenance                                                  |   | -                  |   |   | -                  |   |   | 855         |   |   | -          |   |   | 855                    |  
|Travel                                                                   |   | 1,410              |   |   | -                  |   |   | 10,575      |   |   | -          |   |   | 10,575                 |  
|Wages and salaries                                                       |   | 563,084            |   |   | -                  |   |   | 711,964     |   |   | -          |   |   | 719,579                |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Total operating expenses                                                 |   | 617,284            |   |   | -                  |   |   | 952,303     |   |   | -          |   |   | 980,352                |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Net loss before discontinued operations                                  |   | 612,586            |   |   | -                  |   |   | 947,605     |   |   | -          |   |   | 975,654                |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Discontinued operations                                                  |   | -                  |   |   | 5,446              |   |   | -           |   |   | 22,614     |   |   | -                      |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Net loss for the period                                                  | $ | (612,586           | ) | $ | (5,446             | ) | $ | (947,605    | ) | $ | (22,614    | ) | $ | (975,654               | )
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Net loss per
      share from continuing operations: Basic and diluted   | $ | (0.01              | ) | $ | (0.00              | ) | $ | (0.02       | ) | $ | (0.00      | ) |   |                        |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Net loss per
      share from discontinued operations: Basic and diluted | $ | (0.00              | ) | $ | (0.00              | ) | $ | (0.00       | ) | $ | (0.00      | ) |   |                        |  
|                                                                         |   |                    |   |   |                    |   |   |             |   |   |            |   |   |                        |  
|Weighted average
      number of shares outstanding: Basic and diluted   |   | 41,350,000         |   |   | 39,000,000         |   |   | 40,482,637  |   |   | 39,000,000 |   |   |                        |  

The accompanying notes are an integral part of these interim
  financial statements

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|FORZA ENVIRONMENTAL BUILDING PRODUCTS, INC.
|-------------------------------------------
|(FORMERLY GURATA GOLD, INC.)               
|(A DEVELOPMENT STAGE COMPANY)              
|STATEMENTS OF CASH FLOWS                   
|(UNAUDITED)                                

|                                                                                  |   |                   |   |   |                   |   |   | From May 18, 2010  |  
|--------------------------------------------------------------------------------- | - | ----------------- | - | - | ----------------- | - | - | ------------------ | -
|                                                                                  |   |                   |   |   |                   |   |   | (Inception of      |  
|                                                                                  |   |                   |   |   |                   |   |   | Development Stage) |  
|                                                                                  |   | Nine Months Ended |   |   | to                |  
|                                                                                  |   | February 28, 2011 |   |   | February 28, 2010 |   |   | February 28, 2011  |  
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Cash flow from operating activities:                                              |   |                   |   |   |                   |   |   |                    |  
|Net loss                                                                          | $ | (947,605          | ) | $ | (22,614           | ) | $ | (975,654           | )
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Adjustments to reconcile net loss to net cash used in
      operating activities: |   |                   |   |   |                   |   |   |                    |  
|Stock based compensation                                                          |   | 540,000           |   |   | -                 |   |   | 540,000            |  
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Changes in operating assets and
      liabilities:                                |   |                   |   |   |                   |   |   |                    |  
|Accounts receivable                                                               |   | 109               |   |   | -                 |   |   | 109                |  
|Accounts payable                                                                  |   | 33,210            |   |   | -                 |   |   | 41,090             |  
|Accrued liabilities                                                               |   | 10,576            |   |   | -                 |   |   | (75                | )
|Advances payable                                                                  |   | 1,924             |   |   | -                 |   |   | 1,924              |  
|Due to related parties                                                            |   | 23,577            |   |   | -                 |   |   | 24,065             |  
|Accounts receivable related to discontinued
      operations                      |   | -                 |   |   | (4                | ) |   | -                  |  
|Accounts payable related to discontinued operations                               |   | -                 |   |   | 4,804             |   |   | -                  |  
|Accrued liabilities related to discontinued
      operations                      |   | -                 |   |   | (475              | ) |   | -                  |  
|Advances payable
      related to discontinued operations                         |   | -                 |   |   | 18,075            |   |   | -                  |  
|Net cash used in operating activities                                             |   | (338,209          | ) |   | (214              | ) |   | (368,541           | )
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Cash flows from investing activities:                                             |   |                   |   |   |                   |   |   |                    |  
|Payments for
      construction in progress                                       |   | (32,613           | ) |   | -                 |   |   | (32,613            | )
|Net cash used in investing activities                                             |   | (32,613           | ) |   | -                 |   |   | (32,613            | )
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Cash flows from financing activities:                                             |   |                   |   |   |                   |   |   |                    |  
|Cash from issuance of common stock                                                |   | 200,000           |   |   | -                 |   |   | 250,000            |  
|Cash from subscription to common stock                                            |   | 120,000           |   |   | -                 |   |   | 120,000            |  
|Net cash provided
      by financing activities                                   |   | 320,000           |   |   | -                 |   |   | 370,000            |  
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Net decrease in cash during the period                                            |   | (50,822           | ) |   | (214              | ) |   | (31,154            | )
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Cash, beginning of
      period                                                   |   | 50,890            |   |   | 1,339             |   |   | 31,222             |  
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Cash, end of
      period                                                         | $ | 68                |   | $ | 1,125             |   | $ | 68                 |  
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Supplemental disclosure of cash flow information:                                 |   |                   |   |   |                   |   |   |                    |  
|Cash paid during the period                                                       |   |                   |   |   |                   |   |   |                    |  
|Taxes                                                                             | $ | -                 |   | $ | -                 |   | $ | -                  |  
|Interest                                                                          | $ | -                 |   | $ | -                 |   | $ | -                  |  
|                                                                                  |   |                   |   |   |                   |   |   |                    |  
|Non cash items:                                                                   |   |                   |   |   |                   |   |   |                    |  
|Common shares issued for
      services                                           | $ | 540,000           |   |   |                   |   | $ | 540,000            |  
|Common
      shares subscribed                                                    | $ | (100,000          | ) |   | -                 |   | $ | (100,000           | )
|Common shares issued                                                              | $ | 100,000           |   |   | -                 |   | $ | 100,000            |  

The accompanying notes are an integral part of these interim
  financial statements

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|FORZA ENVIRONMENTAL BUILDING PRODUCTS, INC.
|-------------------------------------------
|(FORMERLY GURATA GOLD, INC.)               
|(A DEVELOPMENT STAGE COMPANY)              
|NOTES TO THE FINANCIAL STATEMENTS          
|FEBRUARY 28, 2011                          

NOTE 1  ORGANIZATION AND BASIS OF PRESENTATION

Nature of Operations

Forza Environmental Building Products, Inc. (Forza) was
incorporated on May 26, 2006, under the laws of the State of Nevada. Until May
17, 2010, Forzas principal business was the acquisition and exploration of
mineral resources in northwestern British Columbia, Canada. On May 18, 2010,
Forza announced a change in its direction to manufacture, market and distribute
the Artzer Z-Panel building product. Accordingly, the Company exited the
Exploration Stage and entered the Development Stage on that date. On July 19,
2010, the company changed its name to Forza Environmental Building Products,
Inc. In these notes, the terms Company, we, us or our mean Forza.

Development Stage

These financial statements and related notes are presented in
accordance with accounting principles generally accepted in the United States of
America. The Company has produced minimal revenues from its principal business
and is a development stage company, and follows Accounting Standard 915
Development Stage Entities (AS 915), where applicable.

The Company is in the early development stage. In a development
stage company, management devotes most of its time to conducting set up work and
developing its business. These financial statements have been prepared on a
going concern basis, which implies the Company will continue to realize its
assets and discharge its liabilities in the normal course of business. The
Company has never paid any dividends and is unlikely to pay dividends or
generate earnings in the immediate or foreseeable future. The Companys
continuation as a going concern and its ability to emerge from the development
stage with any planned principal business activity is dependent upon the
continued financial support of its shareholders and its ability to obtain the
necessary equity financing and attain profitable operations.

Since the acquisition of the Artzer Z-Panel the Company has
determined it will not continue to proceed with its exploration activities.

Basis of Presentation

The accompanying unaudited financial statements included herein
have been prepared in accordance with accounting principles generally accepted
in the United States for interim financial information and with the instructions
to Form 10-Q. They do not include all information and notes required by
generally accepted accounting principles for complete financial statements.
However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial
statements included on Form 10-K of Forza Environmental Building Products, Inc.
for the year ended May 31, 2010. In the opinion of management, all adjustments
considered necessary for a fair presentation have been included, and are of a
normal recurring nature. Operating results for the three and nine months ended
February 28, 2011, are not necessarily indicative of the results that may be
expected for any other interim period or the entire year. For further
information, these unaudited financial statements and the related notes should
be read in conjunction with the Companys audited financial statements for the
year ended May 31, 2010, included in the Companys annual report on Form
10-K.

---

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents

For purposes of the balance sheet and statement of cash flows,
the Company considers all amounts on deposit with financial institutions and
highly liquid investments with maturities of 90 days or less to be cash
equivalents. At February 28, 2011 and May 31, 2010, the Company did not have any
cash equivalents.

Financial Instruments

Concentration of Credit Risk

Financial instruments that potentially subject the Company to
significant concentrations of credit risk consist principally of cash. At
February 28, 2011 and May 31, 2010 the Company had $20 and $500 respectively, in
cash that was not insured. The Company has not experienced any losses in cash
balances and does not believe it is exposed to any significant credit risk on
its cash.

Foreign Exchange Risk

The Company is subject to foreign exchange risk for
transactions denominated in foreign currencies. Foreign currency risk arises
from the fluctuation of foreign exchange rates and the degree of volatility of
these rates relative to the United States dollar. The Company does not believe
that it has any material risk due to foreign currency exchange.

Fair Value of Financial
Instruments

On June 1, 2007, the Company adopted Accounting Standard 820
Fair Value Measurement and Disclosure(AS 820). AS 820 relates to
financial assets and financial liabilities. AS 820 defines fair value,
establishes a framework for measuring fair value in accounting principles
generally accepted in the United States of America (GAAP), and expands
disclosures about fair value measurements. The provisions of this standard apply
to other accounting pronouncements that require or permit fair value
measurements and are to be applied prospectively with limited exceptions. The
adoption of AS 820, as it relates to financial assets and financial liabilities,
had no impact on the Companys financial statements.

---

AS 820 defines fair value as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. This standard is now the
single source in GAAP for the definition of fair value, except for the fair value of leased property as defined in ASC 840. AS 820
establishes a fair value hierarchy that distinguishes between (1) market
participant assumptions developed based on market data obtained from independent
sources (observable inputs) and (2) an entitys own assumptions about market
participant assumptions developed based on the best information available in the
circumstances (unobservable inputs). The fair value hierarchy consists of three
broad levels, which gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1) and the lowest
priority to unobservable inputs (Level 3). The three levels of the fair value
hierarchy under AS 820 are described below:

|Level 1 - | Unadjusted quoted prices in active markets that are
      accessible at the measurement date for identical, unrestricted assets or
      liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Level 2 - | Inputs other than quoted prices included within Level 1
      that are observable for the asset or liability, either directly or
      indirectly, including quoted prices for similar assets or liabilities in
      active markets; quoted prices for identical or similar assets or
      liabilities in markets that are not active; inputs other than quoted
      prices that are observable for the asset or liability (e.g., interest
      rates); and inputs that are derived principally from or corroborated by
      observable market data by correlation or other means.
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Level 3 - | Inputs that are both significant to the fair value
      measurement and unobservable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

The Companys financial instruments include cash, accounts
payable, accrued administrative fees, professional fees and advances payable.
The fair value of these financial instruments approximates their carrying values
due to their short maturities.

Foreign Currency Translation

The Companys functional and reporting currency is the United
States dollar. Monetary assets and liabilities denominated in foreign currencies
are translated in accordance with Accounting Standard 830 Foreign Currency
Matters (AS 830), using the exchange rate prevailing at the balance sheet
date. Gains and losses arising on settlement of foreign currency denominated
transactions or balances are included in the determination of income. Foreign
currency transactions are primarily undertaken in Canadian dollars. The Company
has not to the date of these financial statements, entered into derivative
instruments to offset the impact of foreign currency fluctuations.

ReclassificationsCertain prior period amounts in the
accompanying financial statements have been reclassified to conform to the
current periods presentation. These reclassifications had no effect on the
results of operations or financial position for any period presented.

Accounting Estimates

The preparation of the financial statements in conformity with
accounting principles generally accepted in the United States of America
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 revenues and expenses during the reporting period.
Actual results could differ from those estimates.

---

The Companys financial statements are based on a number of
estimates, including accruals for estimated professional fees.

Inventory

Inventory consists of finished goods and is valued at the lower
of cost determined by a first-in, fist-out basis and net realizable value.

Revenue Recognition

The Company recognizes revenue from product sales when the
following criteria are met: persuasive evidence of an arrangement exists,
delivery has occurred, the selling price is fixed or determinable, and
collectability is reasonably assured. During the nine months ended February 28,
2011, the Company generated $41,073 in revenue from the sales of Artzer
Z-Panels. The Company did not generate any revenue during the nine months ended
February 28, 2010.

Comprehensive Income (Loss)

Comprehensive Income (loss) reflects changes in equity that
result from transactions and economic events from non-owner sources. At February
28, 2011 and May 31, 2010, the Company has no items that represent a
comprehensive income (loss) and, therefore, has not included a schedule of
comprehensive income (loss) in the financial statements.

Basic and Diluted Net Loss Per Common Share (EPS)

Basic net loss per share is computed by dividing the net loss
attributable to the common stockholders by the weighted average number of common
shares outstanding during the reporting period. Diluted net income per common
share includes the potential dilution that could occur upon exercise of the
options and warrants to acquire common stock computed using the treasury stock
method which assumes that the increase in the number of shares is reduced by the
number of shares which could have been repurchased by the Company with the
proceeds from the exercise of the options and warrants (which were assumed to
have been made at the average market price of the common shares during the
reporting period).

Potential common shares are excluded from the diluted loss per
share computation in net loss periods as their inclusion would be
anti-dilutive.

At February 28, 2011, the Company had issued 42,550,000 common
shares and had no outstanding options or warrants.

Stock-Based Compensation

In December 2004 Accounting Standard 718, Compensation 
Stock Compensation(AS 718) was brought into effect. AS 718 eliminates the
option to use the intrinsic value method of accounting and requires recording
expense for stock compensation based on a fair value based method.

---

At February 28, 2011 the Company had issued 2,250,000 shares as
stock compensation to its CFO, at a market value of $0.24 per share.

Recent Accounting Pronouncements

We do not expect the adoption of any new accounting
pronouncements to have a material impact on our financial statements.

NOTE 3  GOING CONCERN

These financial statements have been prepared on a going
concern basis, which implies the Company will continue to realize its assets and
discharge its liabilities in the normal course of business. The Company has
generated approximately $41,000 in revenues since inception and has never paid
any dividends and is unlikely to pay dividends in the immediate or foreseeable
future. The continuation of the Company as a going concern is dependent upon the
continued financial support from its shareholders, the ability of the Company to
obtain necessary equity financing to continue operations, confirmation of the
Companys interests in the underlying properties, and the attainment of
profitable operations. The Companys ability to achieve and maintain
profitability and positive cash flows is dependent upon its ability to generate
revenues from its manufacturing and distribution business and control production
costs. Based upon current plans, the Company expects to incur operating losses
in future periods. At February 28, 2011, the Company had an accumulated deficit
of $1,302,681 since inception. These factors raise substantial doubt regarding
the Companys ability to continue as a going concern. There is no assurance that
the Company will be able to generate sufficient revenues to cover operating
costs in the future. These financial statements do not give any effect to any
adjustments that would be necessary should the Company be unable to continue as
a going concern and therefore be required to realize its assets and discharge
its liabilities in other than the normal course of business and at amounts
different from those reflected in the accompanying financial statements.

NOTE 4  CONSTRUCTION IN PROGRESS

The Company has made payments of $32,613 for welding process
machinery, which has not been placed in service as of February 28, 2011. The
payments are related to an asset purchase agreement the Company has executed
with a related party (the related party is a Company controlled by an officer of
the Company) (Note 5).

NOTE 5 - RELATED PARTY TRANSACTIONS

The following amounts were due to related parties:

|                                             |   | February 28, |  |   | May 31, | 
|-------------------------------------------- | - | ------------ |  | - | ------- | 
|                                             |   | 2011         |  |   | 2010    | 
|                                             |   |              |  |   |         | 
|Due to the President of the Company (b)      | $ | 325          |  | $ | 325     | 
|                                             |   |              |  |   |         | 
|Due to the CFO of the Company (c), (f)       |   | 11,042       |  |   | 488     | 
|                                             |   |              |  |   |         | 
|Due to the VP of R&D (d)                     |   | 10,734       |  |   | -       | 
|                                             |   |              |  |   |         | 
|Due to a relative of a major shareholder (e) |   | 2,289        |  |   | -       | 
|                                             |   |              |  |   |         | 
|Total due to related parties (a)             | $ | 24,390       |  | $ | 813     | 

---

(a) Amounts due to related parties are unsecured, bear no
interest and are due on demand. (b) During the nine months ended February
28, 2011, the Company paid the President $27,000 for consulting services he
provided.(c) During the nine months ended February 28, 2011, the Company
paid the CFO $23,745 for consulting services he provided.(d) During the nine
months ended February 28, 2011, the Company paid the VP of Research &
Development $20,000 pursuant to an asset purchase agreement. (Note 4) (e)
During the nine months ended February 28, 2011, the Company paid the relative of
a major shareholder of the Company $13,000 for consulting services he
provided.(f) On January 18, 2011, 2,250,000 common shares were issued to the
CFO at a deemed price of $0.24 per share as per an executive employment
agreement. $540,000 was recorded as wages expense. (Note 6)

NOTE 6 - COMMON STOCK

On July 8, 2010, 500,000 common shares at $0.20 per share were
issued for deposits received in May, 2010.

On July 8, 2010, 120,000 common shares were issued at $0.25 per
share for cash of $30,000.

On July 29, 2010, 280,000 common shares were issued
  at $0.25 per share for cash of $70,000.

On August 2, 2010, 400,000 common shares
  were issued at $0.25 per share for cash of $100,000.

On January 18, 2011, 2,250,000 common shares were issued at a
deemed price of $0.24 per share as per an executive employment agreement.
$540,000 was recorded as wages expense (Note 5).

Common Stock Subscribed

On May 1, 2010, the Company agreed to issue 500,000 common
shares valued at $105,000 or $0.21 per share as part of an employment agreement.
The Company recorded the $105,000 as wages expense in the May 31, 2010 financial
statements. As of the date of these financials statements, these shares have not
been issued.

---

On October 10, 2010, the Company received a deposit of $49,000
for 245,000 shares at $0.20. As of the date of these financial statements, these
shares have not been issued. (Note 8)

On November 9, 2010, the Company received a deposit of $38,000
for 190,000 shares at $0.20. As of the date of these financial statements, these
shares have not been issued. (Note 8)

On December 9, 2010, the Company received a deposit of $5,000
for 25,000 shares at $0.20. As of the date of these financial statements, these
shares have not been issued.

On December 22, 2010, the Company received a deposit of $18,000
for 90,000 shares at $0.20. As of the date of these financial statements, these
shares have not been issued.

On January 13, 2011, the Company received a deposit of $10,000
for 50,000 shares at $0.20. As of the date of these financial statements, these
shares have not been issued.

NOTE 7 - DISCONTINUED OPERATIONS

On May 17, 2010 the Company changed its focus from exploration
of mineral properties, to manufacturing, marketing and distributing building
products. The Company had the following losses from discontinued operations for
the three and nine months ended February 28, 2010 and 2011.

Discontinued Operations:

|                          |   | Three months ended |  |   | Nine months ended | 
|------------------------- | - | ------------------ |  | - | ----------------- | 
|                          |   | February 28,       |  |   | February 28,      | 
|                          |   | 2011               |  |   | 2010              | 
|Administrative fees       | $ | -                  |  | $ | 1,500             | 
|Bank charges and interest |   | -                  |  |   | 103               | 
|Professional fees         |   | -                  |  |   | 2,655             | 
|Regulatory                |   | -                  |  |   | 1,188             | 
|Discontinued operations   | $ | -                  |  | $ | 5,446             | 

NOTE 8 – SUBSEQUENT EVENTS

Subsequent to February 28, 2011, 245,000 common shares at $0.20 per share were issued for deposit received on October 10, 2010. (Note 6)

Subsequent to February 28, 2011, 190,000 common shares at $0.20 per share were issued for deposit received on November 9, 2010. (Note 6)

---

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

Forward-looking statements

This quarterly report contains forward-looking statements.
These are statements regarding financial and operating performance and results
and other statements that are not historical facts. The words expect,
project, estimate, believe, anticipate, intend, plan, forecast,
and similar expressions are intended to identify forward-looking statements.
Certain important risks could cause results to differ materially from those
anticipated by some of the forward-looking statements. Some, but not all, of
these risks include, among other things:

- general economic conditions, because they may affect our ability to raise
  money,
- our ability to raise enough money to continue our operations,
- changes in regulatory requirements that adversely affect our business,
- other uncertainties, all of which are difficult to predict and many of
  which are beyond our control.

We caution you not to place undue reliance on these
forward-looking statements, which reflect our managements view only as of the
date of this report. We are not obligated to update these statements or publicly
release the results of any revisions to them to reflect events or circumstances
after the date of this report or to reflect the occurrence of unanticipated
events. You should refer to and carefully review the information in future
documents we file with the Securities and Exchange Commission.

In this quarterly report, unless otherwise specified, all
dollar amounts are expressed in United States dollars. All references to "US$"
refer to United States dollars and all references to "common stock" refer to the
common shares in our capital stock.

This discussion and analysis should be read in conjunction with
our interim unaudited financial statements and related notes included in this
Form 10-Q and the audited financial statements and related notes thereto
included in our Annual Report on Form 10-K for the fiscal year ended May 31,
2010. The inclusion of supplementary analytical and related information herein
may require us to make estimates and assumptions to enable us to fairly present,
in all material respects, our analysis of trends and expectations with respect
to our results of operations and financial position taken as a whole. Actual
results may vary from the estimates and assumptions we make.

As used in this quarterly report, the terms "we", "us", "our"
and "our company" mean Forza Environmental Building Products, Inc., unless
otherwise indicated.

General Overview and Business Development over the Last
Three Years

We were incorporated in the state of Nevada on May 26, 2006. On
January 17, 2007, we acquired the Gate 1 Claim, a mineral claim in the Province
of British Columbia. Until May 17, 2010 we were in the business of mineral
exploration. Significant amounts of mineralization were not found and we decided
to change our business focus.

---

The cost of the Gate 1 Claim charged to operations by Forza was
$1,000, which represented the cost to acquire the Gate 1 Claim via a property
agreement with Kenneth Ralfs.

On May 18, 2010, we announced that we had acquired the
worldwide exclusive rights to manufacture, market and distribute the Artzer
Z-Panel building product. The panels will be used for housing projects around the
world. Our company intends to provide environmentally sound, energy-efficient
materials for safe, sustainable shelter to disaster replacement building
projects.

We have not been involved in any bankruptcy, receivership or
similar proceedings. There have been no material reclassifications, mergers,
consolidations or purchases or sales of a significant amount of assets not in
the ordinary course of our business.

Results of Operations

Three months ended February 28, 2011 and 2010

Our operating results for the three months ended February 28,
2011 and 2010 and the changes between those periods are summarized as
follows:

|                          |   | Three months ended |   |   |                   |  
|------------------------- | - | ------------------ | - | - | ----------------- | -
|                          |   |                    |   |   |                   |  
|                          |   |                    |   |   |                   |  
|                          |   |                    |   |   |                   |  
|                          |   | February 28, 2011  |   |   | February 28, 2010 |  
|Revenue                   |   |                    |   |   |                   |  
|Sales                     | $ | 41,073             |   | $ | -                 |  
|Cost of Goods Sold        |   | (36,375            | ) |   | -                 |  
|Gross Profit              |   | 4,698              |   |   | -                 |  
|                          |   |                    |   |   |                   |  
|Operating Expenses        |   |                    |   |   |                   |  
|Administrative fees       |   | 13,500             |   |   | -                 |  
|Bank charges and interest |   | 671                |   |   | -                 |  
|Consulting                |   | 23,042             |   |   | -                 |  
|Entertainment             |   | 224                |   |   | -                 |  
|Office                    |   | 3,859              |   |   | -                 |  
|Professional fees         |   | 4,685              |   |   | -                 |  
|Regulatory                |   | 1,709              |   |   | -                 |  
|Rent                      |   | 5,100              |   |   | -                 |  
|Travel                    |   | 1,410              |   |   | -                 |  
|Wages and salaries        |   | 563,084            |   |   | -                 |  
|Discontinued operations   |   | -                  |   |   | 5,446             |  
|Total operating expenses  |   | 617,284            |   |   | 5,446             |  
|Net loss for the period   | $ | (612,586           | ) | $ | (5,446            | )

---

Revenues:During the three months ended February 28,
2011 we generated $4,698 in gross profits from the sales of Artzer Z-Panels.

A portion of this revenue was a result of the Agreement to
Purchase contract which we entered into with an unrelated company on November
27, 2010. This contract is for the sale of up to 40,000 Artzer Z-Panels which we
agreed to sell on an as needed basis at $50 per panel for a total of $2,000,000;
it is in effect for two years.

We did not generate any revenue during the three months ended
February 28, 2010.

Operating expenses:During the three months ended
February 28, 2011, we have incurred $617,284 in operating expenses. These
expenses were primarily caused by the change in direction of our business. There
were increases in consulting expenses, office expenses, professional fees,
regulatory fees, rent, administrative fees, travel and wages and salaries. Part
of increase in wages and salaries was represented by $540,000 in stock based
compensation to our former CFO, who we agreed to issue 2,250,000 restricted
shares of common stock at $0.24 per share. All of these expenses increased in
conjunction with setting up our new project of manufacturing, marketing and
distributing the Artzer Z-Panel.

During the three months ended February 28, 2010 we have
incurred $5,446 in operating expenses. These expenses are listed under
discontinued operations and refer to expenses incurred while our focus was on
the development of our Gate 1 mineral claim in Northern British Columbia.

Net Loss:During the three months ended February 28,
2011, our net loss increased from $5,446 for the three months ended February 28,
2010 to $612,586 for the three months ended February 28, 2011. The $607,140 or
11,148% increase was due to the change in direction of our business.

Nine months ended February 28, 2011 and 2010

Our operating results for the nine months ended February 28,
2011 and 2010 and the changes between those periods are summarized as
follows:

|                          |   | Nine months ended |   |   | Changes between  |  
|------------------------- | - | ----------------- | - | - | ---------------- | -
|                          |   |                   |   |   |                  |  
|                          |   |                   |   |   |                  |  
|                          |   | February 28,2011  |   |   | February 28,2010 |  
|Revenue:                  |   |                   |   |   |                  |  
|Sales                     | $ | 41,073            |   | $ | -                |  
|Cost of Goods Sold        |   | (36,375           | ) |   | -                |  
|Gross Profit              |   | 4,698             |   |   | -                |  
|                          |   |                   |   |   |                  |  
|Operating Expenses        |   |                   |   |   |                  |  
|Administrative fees       |   | 33,500            |   |   | -                |  
|Bank charges and interest |   | 1,830             |   |   | -                |  
|Consulting                |   | 118,958           |   |   | -                |  
|Entertainment             |   | 1,383             |   |   | -                |  
|Office                    |   | 19,623            |   |   | -                |  
|Professional fees         |   | 32,914            |   |   | -                |  
|Regulatory                |   | 5,401             |   |   | -                |  
|Rent                      |   | 15,300            |   |   | -                |  
|Repairs and maintenance   |   | 855               |   |   | -                |  
|Travel                    |   | 10,575            |   |   | -                |  
|Wages and salaries        |   | 711,964           |   |   | -                |  
|Discontinued operations   |   | -                 |   |   | 22,614           |  
|Total operating expenses  |   | 952,303           |   |   | 22,614           |  
|Net loss for the period   | $ | (947,605          | ) | $ | (22,614          | )

---

Revenues:During the nine months ended February 28,
2011, we generated $4,698 in gross profits from the sales of Artzer Z-Panels.

A portion of this revenue was a result of the Agreement to
Purchase contract which we entered into with an unrelated company on November
27, 2010. This contract is for the sale of up to 40,000 Artzer Z-Panels which we
agreed to sell on an as needed basis at $50 per panel for a total of $2,000,000;
it is in effect for two years.

We did not generate any revenue during the nine months ended
February 28, 2010.

Operating Expenses: During the nine months ended
February 28, 2011, we have incurred $952,303 in operating expenses. These
expenses were primarily caused by the change in direction of our business. There
were increases in consulting expenses, office expenses, professional fees,
regulatory fees, rent, administrative fees, travel and wages and salaries. Part
of increase in wages and salaries was represented by $540,000 in stock based
compensation to our former CFO, who we agreed to issue 2,250,000 restricted
shares of common stock at $0.24 per share. All of these expenses increased in
conjunction with setting up our new project of manufacturing, marketing and
distributing the Artzer Z-Panel.

During the nine months ended February 28, 2010 we have incurred
$22,614 in operating expenses. These expenses are listed under discontinued
operations and refer to expenses incurred while our focus was on the development
of our Gate 1 mineral claim in Northern British Columbia.

Net Loss:During the nine months ended February 28,
2011, our net loss increased from $22,614 for the nine months ended February 28,
2010 to $947,605 for the nine months ended February 28, 2011. The $924,991 or
4,090% increase was mainly due to the change in direction of our business.

---

Liquidity and Financial Condition

At February 28, 2011, we had a cash balance of $68 and negative
cash flows from operations of $338,209. During the nine months ended February
28, 2011, we funded our operations with cash that we received from the sale of
common stock.

Cash Flows

|                                          |   | As at        |  
|----------------------------------------- | - | ------------ | -
|                                          |   | February 28, |  
|                                          |   | 2011         |  
|Net Cash Used In Operating Activities     | $ | (338,209     | )
|Net Cash Used In Investing Activities     |   | (32,613      | )
|Net Cash Provided by Financing Activities |   | 320,000      |  
|Decrease in
      Cash During the Period  | $ | (50,822      | )

Net Cash Used in Operating Activities

Net cash used in operating activities during the nine months
ended February 28, 2011, was $338,209. We used cash primarily to cover our net
loss of $947,605. This use of cash was offset by a decrease in accounts
receivable of $109 and increases in accounts payable and accrued liabilities of
$33,210 and $10,576, respectively. Our advances payable and due to related
parties also increased by $1,924 and $23,577, respectively. We have also
recorded $540,000 in stock-based compensation to our former CFO, who resigned on
March 18, 2011.

Net cash used in operating activities during the nine months
ended February 28, 2010, was $214. We used cash primarily to fund our net loss
related to discontinued operations of $22,614. Cash was also used to reduce
accrued liabilities related to discontinued operations of $475. These uses were
primarily offset by increases in accounts payable and advances payable to
related parties related to discontinued operations of $4,804 and 18,075,
respectively.

Net Cash Used in Investing Activities

During the nine months ended February 28, 2011, we spent
$32,613 on construction in progress with respect to the installation of a panel
welding machine.

We did not have any investing activities during the nine months
ended February 28, 2010.

Net Cash Provided By Financing Activities

During the nine months ended February 28, 2011, $200,000 cash
was provided through the sale of 800,000 shares at $0.25 per share; $120,000
cash was provided through subscription to purchase 600,000 shares at $0.20 per
share.

During the nine months ended February 28, 2010 we did not have
any financing activities.

---

Working Capital

|                          |   | At           |   |   | At      |  
|------------------------- | - | ------------ | - | - | ------- | -
|                          |   | February 28, |   |   | May 31, |  
|                          |   | 2011         |   |   | 2010    |  
|Current assets            | $ | 68           |   | $ | 50,999  |  
|Current
      liabilities |   | (155,112     | ) |   | (85,825 | )
|Working capital           | $ | (155,044     | ) | $ | (34,826 | )

Unproved Mineral Property

Gate 1 Claim

On December 15, 2006 we purchased the Gate 1 Claim near Atlin,
British Columbia, Canada, comprising an area of 376.488 hectares for $1,000. The
Gate 1 Claim is registered in the name of a former director and pursuant to a
trust agreement is held in trust on our behalf.

At May 31, 2010, we had spent $21,058 on exploration work
including a helicopter-supported magnetic survey on the Gate 1 Claim. On
December 15, 2008, our company registered exploration work performed on its
unproved mineral property with the Government of British Columbia, which allows
our company to retain title to the claim until February 10, 2012.

Exploration of the property did not find significant
mineralization and the claim was abandoned.

Challenges and Risks

On February 28, 2011, we had cash of $68. If we are to proceed
with the manufacturing and marketing of the Artzer Z-Panel, we will have to
raise additional funds to cover the costs associated with manufacturing and
marketing of the panel.

Over the next 12 months, aside from the Agreement to Purchase
contract, we do not anticipate generating any significant revenue and we expect
our operating losses to be approximately $700,000. We anticipate that the
additional funding required for operating activities will come from equity
financing from the sale of our common stock, private loans or advances. If we
are successful in completing an equity financing, existing shareholders will
experience dilution of their interest. We do not have any financing arranged and
cannot provide investors with any assurance that we will be able to raise
sufficient funding from the sale of our common stock or obtain private loans or
advances to fund our manufacturing and marketing program. In the absence of such
financing, our business will fail.

The start-up costs associated with manufacturing the Artzer
Z-Panels will initially outpace the revenues received. Our future financial
results are also uncertain due to a number of factors, some of which are outside
our control. These factors include, but are not limited to:

---

- our ability to raise additional funding;
- our ability to find markets for the Artzer Z-Panel;
- our ability to control the costs in production of the Artzer Z-Panel.

Foreign Exchange

We are subject to foreign exchange risk for transactions
denominated in foreign currencies. Foreign currency risk arises from the
fluctuation of foreign exchange rates and the degree of volatility of these
rates relative to the United States dollar. We do not believe that we have any
material risk due to foreign currency exchange.

Other Trends, Events or Uncertainties that may Impact
Results of Operations or Liquidity Trends, Events, and Uncertainties

The economic crisis in the United States and the resulting
economic uncertainty and market instability may make it harder for us to raise
capital as and when we need it and have made it difficult for us to assess the
impact of the crisis on our operations or liquidity. If we are unable to raise
cash, we may be required to cease our operations. Other than as discussed in
this annual report, we know of no other trends, events or uncertainties that
have or are reasonably likely to have a material impact on our short-term or
long-term liquidity.

Contractual Obligations

As a smaller reporting company, we are not required to
provide tabular disclosure obligations.

Going Concern

These financial statements have been prepared on a going
concern basis, which implies our company will continue to realize its assets and
discharge its liabilities in the normal course of business. Our company has
generated only minimal revenues since inception and has never paid any dividends
and is unlikely to pay dividends or generate significant earnings in the
immediate or foreseeable future. The continuation of our company as a going
concern is dependent upon the continued financial support from its shareholders,
the ability of our company to obtain necessary equity financing to continue
operations, confirmation of our companys interests in the underlying
properties, and the attainment of profitable operations. Our companys ability
to achieve and maintain profitability and positive cash flows is dependent upon
its ability to manufacture and market the Artzer Z-Panels. Based upon current
plans, our company expects to incur operating losses in future periods. At
February 28, 2011, our company had an accumulated deficit of $1,302,681 since
inception. These factors raise substantial doubt regarding our companys ability
to continue as a going concern. There is no assurance that our company will be
able to generate revenues in the future. These financial statements do not give
any effect to any adjustments that would be necessary should our company be
unable to continue as a going concern and therefore be required to realize its
assets and discharge its liabilities in other than the normal course of business
and at amounts different from those reflected in the accompanying financial
statements.

---

Off-Balance Sheet Arrangements

We have no 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.

Contingencies and Commitments

We had no commitments or contingencies at February 28,
2011.

Internal and External Sources of Liquidity

To date, we have funded our operations from the sale of our
common stock and from advances from an unrelated party.

Recently Adopted and Recently Issued Accounting
Standards

We do not expect the adoption of any new accounting
pronouncements to have a material impact on our financial statements.

Critical Accounting Policies

Our consolidated financial statements and accompanying notes
are prepared in accordance with generally accepted accounting principles in the
United States. Preparing financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities, revenue, and expenses. These estimates and assumptions are affected
by management's application of accounting policies. We believe that
understanding the basis and nature of the estimates and assumptions involved
with the following aspects of our consolidated financial statements is critical
to an understanding of our financials.

Cash and Cash Equivalents

For purposes of the balance sheet and statement of cash flows,
our company considers all amounts on deposit with financial institutions and
highly liquid investments with maturities of 90 days or less to be cash
equivalents. At February 28, 2011 and May 31, 2010, our company did not have any
cash equivalents.

Financial Instruments

Concentration of Credit Risk

Financial instruments that potentially subject our company to
significant concentrations of credit risk consist principally of cash. At
February 28, 2011 and May 31, 2010 our company had $20 and $500, respectively,
in cash that was not insured. This cash was held by our former CFO. Our company has not experienced any losses in cash balances and
does not believe it is exposed to any significant credit risk on its cash.

---

Foreign Exchange Risk

Our company is subject to foreign exchange risk for
transactions denominated in foreign currencies. Foreign currency risk arises
from the fluctuation of foreign exchange rates and the degree of volatility of
these rates relative to the United States dollar. Our company does not believe
that it has any material risk due to foreign currency exchange.

Fair Value of Financial
Instruments

On June 1, 2007, our company adopted Accounting Standard 820
Fair Value Measurement and Disclosure(AS 820). AS 820 relates to
financial assets and financial liabilities. AS 820 defines fair value,
establishes a framework for measuring fair value in accounting principles
generally accepted in the United States of America (GAAP), and expands
disclosures about fair value measurements. The provisions of this standard apply
to other accounting pronouncements that require or permit fair value
measurements and are to be applied prospectively with limited exceptions. The
adoption of AS 820, as it relates to financial assets and financial liabilities,
had no impact on our companys financial statements.

AS 820 defines fair value as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. This standard is now the
single source in GAAP for the definition of fair value, except for the fair
value of leased property as defined in ASC 840. AS 820 establishes a fair value
hierarchy that distinguishes between (1) market participant assumptions
developed based on market data obtained from independent sources (observable
inputs) and (2) an entitys own assumptions about market participant assumptions
developed based on the best information available in the circumstances
(unobservable inputs). The fair value hierarchy consists of three broad levels,
which gives the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). The three levels of the fair value hierarchy
under AS 820 are described below:

|Level 1 - | Unadjusted quoted prices in active markets that are
      accessible at the measurement date for identical, unrestricted assets or
      liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Level 2 - | Inputs other than quoted prices included within Level 1
      that are observable for the asset or liability, either directly or
      indirectly, including quoted prices for similar assets or liabilities in
      active markets; quoted prices for identical or similar assets or
      liabilities in markets that are not active; inputs other than quoted
      prices that are observable for the asset or liability (e.g., interest
      rates); and inputs that are derived principally from or corroborated by
      observable market data by correlation or other means.
|Level 3 - | Inputs that are both significant to the fair value
      measurement and unobservable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

Our companys financial instruments include cash, deposit
receivable, accounts payable, accrued administrative fees, professional fees and
advances payable. The fair values of these financial instruments approximate
their carrying values due to their short maturities.

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Foreign Currency Translation

Our companys functional and reporting currency is the United
States dollar. Monetary assets and liabilities denominated in foreign currencies
are translated in accordance with Accounting Standard 830 Foreign Currency
Matters (AS 830), using the exchange rate prevailing at the balance sheet
date. Gains and losses arising on settlement of foreign currency denominated
transactions or balances are included in the determination of income. Foreign
currency transactions are primarily undertaken in Canadian dollars. Our company
has not to the date of these financial statements, entered into derivative
instruments to offset the impact of foreign currency fluctuations.

Inventory

Inventory consists of finished goods and is valued at the lower
of cost determined by a first-in, fist-out basis, and net realizable value.

Revenue Recognition

The Company recognizes revenue from product sales or services
rendered when the following criteria are met: persuasive evidence of an
arrangement exists, delivery has occurred, the selling price is fixed or
determinable, and collectability is reasonably assured.

Accounting Estimates

The preparation of the financial statements in conformity with
accounting principles generally accepted in the United States of America
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
revenues and expenses during the reporting period. Actual results could differ
from those estimates.

Our companys financial statements are based on a number of
estimates, including accruals for estimated administrative and professional
fees.

Comprehensive Income (Loss)

Comprehensive Income (loss) reflects changes in equity that
result from transactions and economic events from non-owner sources. At February
31, 2011 and May 31, 2010, our company had no items that represented a
comprehensive income (loss) and, therefore, did not include a schedule of
comprehensive income (loss) in the financial statements.

Basic and Diluted Net Loss Per Common Share (EPS)

Basic net loss per share is computed by dividing the net loss
attributable to the common stockholders by the weighted average number of common
shares outstanding during the reporting period. Diluted net income per common
share includes the potential dilution that could occur upon exercise of the
options and warrants to acquire common stock computed using the treasury stock method which assumes that the increase in the number of
shares is reduced by the number of shares which could have been repurchased by
our company with the proceeds from the exercise of the options and warrants
(which were assumed to have been made at the average market price of the common
shares during the reporting period).

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Potential common shares are excluded from the diluted loss per
share computation in net loss periods as their inclusion would be
anti-dilutive.

At February 28, 2011, our company had issued 42,550,000 common
shares and had no outstanding options or warrants.

Common Stock

On July 8, 2010 our company issued 250,000 shares for the
$50,000 deposit that was received on May 13, 2010.

On July 8, 2010 our company issued 250,000 shares for the
$50,000 deposit that was received on May 27, 2010.

On July 8, 2010 our company issued 120,000 shares at $0.25 per
share for proceeds of $30,000.

On July 29, 2010 our company issued 280,000 shares at $0.25 per
share for proceeds of $70,000.

On August 2, 2010 our company issued 400,000 shares at $0.25
per share for proceeds of $100,000.

On October 10, 2010, a deposit of $49,000 was received for
245,000 common shares subscribed, at $0.20 per share. These shares were issued subsequent to February 28, 2011.

On November 9, 2010, a deposit of $38,000 was received for
190,000 common shares subscribed, at $0.20 per share. These shares were issued subsequent to February 28, 2011.

On December 3, 2010, the Company agreed to issue 2,250,000
common shares valued at $540,000 or $0.24 per share as part of an employment
agreement. These shares were issued on January 18, 2011.

On December 9, 2010, the Company received a deposit of $5,000
for 25,000 shares at $0.20. As of the date of the filing of these financials
statements, these shares have not been issued.

On December 22, 2010, the Company received a deposit of $18,000
for 90,000 shares at $0.20. As of the date of the filing of these financials
statements, these shares have not been issued.

On January 13, 2011, the Company received a deposit of $10,000
for 50,000 shares at $0.20. As of the date of the filing of these financials
statements, these shares have not been issued.

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Stock-Based Compensation

In December 2004 Accounting Standard 718, Compensation 
Stock Compensation(AS 718) was brought into effect. AS 718 eliminates the
option to use the intrinsic value method of accounting and requires recording
expense for stock compensation based on a fair value based method.

On December 3, 2010, the Company agreed to issue 2,250,000
common shares valued at $540,000 or $0.24 per share as stock-based compensation
pursuant to an employment agreement. These shares were issued on January 18,
2011.

Item 3. Quantitative Disclosures About Market Risks

As a smaller reporting company, we are not required to
provide the information required by this Item.

Item 4. Controls and Procedures.

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and that such information
is accumulated and communicated to our management, including our president (also
our principal executive officer) and our chief financial officer (also our
principal financial officer and principal accounting officer) to allow for
timely decisions regarding required disclosure.

As of February 28, 2011, the end of our third quarter covered
by this report, we carried out an evaluation, under the supervision and with the
participation of our president (also our principal executive officer) of the
effectiveness of the design and operation of our disclosure controls and
procedures. Based on the foregoing, our president (also our principal executive
officer) concluded that our disclosure controls and procedures were not
effective in providing reasonable assurance in the reliability of our reports as
of the end of the period covered by this quarterly report.

Changes in Internal Control over Financial
Reporting

There have been no changes in our internal controls over
financial reporting that occurred during the quarter ended February 28, 2011
that have materially or are reasonably likely to materially affect, our internal
controls over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, existing or pending legal proceedings
against our company, nor are we involved as a plaintiff in any material
proceeding or pending litigation. There are no proceedings in which any of our
directors, officers or affiliates, or any registered or beneficial shareholder,
is an adverse party or has a material interest adverse to our interest.

Item 1A. Risk Factors

Much of the information included in this quarterly report
includes or is based upon estimates, projections or other "forward looking
statements". Such forward looking statements include any projections or
estimates made by us and our management in connection with our business
operations. 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 herein.

Such estimates, projections or other "forward looking
statements" involve various risks and uncertainties as outlined below. We
caution the reader that important factors in some cases have affected and, in
the future, could materially affect actual results and cause actual results to
differ materially from the results expressed in any such estimates, projections
or other "forward looking statements".

Our common shares are considered speculative during the
development of our new business operations. Prospective investors should
consider carefully the risk factors set out below.

Our common shares are considered speculative as our business is
still in an early growth stage of its development. Prospective investors should
consider carefully the risk factors set out below.

Because our auditors have issued a going concern opinion,
there is substantial uncertainty we will continue activities in which case you
could lose your investment.

Our auditors have issued a going concern opinion. This means
that there is substantial doubt that we can continue as an ongoing business for
the next twelve months. As such we may have to cease activities and you could
lose your investment.

We lack an operating history and have losses which we expect
to continue into the future. As a result, we may have to suspend or cease
activities.

We were incorporated on May 26, 2006 and have realized only
minimal revenues. We have no operating history upon which an evaluation of our
future success or failure can be made. Our net loss from inception of
development stage to February 28, 2011 is $975,654. Our ability to achieve and
maintain profitability and positive cash flow is dependent upon:

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- our ability to market the Artzer Z-PanelTM
- our ability to generate revenues
- our ability to control production costs of the Artzer Z-PanelTM

Based upon current plans, we expect to incur operating losses
in future periods. This will happen because there are expenses associated with
the startup of manufacturing and marketing programs. As a result, we may not
generate revenues in the future. Failure to generate revenues will cause us to
suspend or cease activities.

Trading in our common shares on the OTC Bulletin Board is
limited and sporadic making it difficult for our shareholders to sell their
shares or liquidate their investments.

Our common shares are currently listed for public trading on
the OTC Bulletin Board. The trading price of our common shares has been subject
to wide fluctuations. Trading prices of our common shares may fluctuate in
response to a number of factors, many of which will be beyond our control. The
stock market has generally experienced extreme price and volume fluctuations
that have often been unrelated or disproportionate to the operating performance
of companies with no current business operation. There can be no assurance that
trading prices and price earnings ratios previously experienced by our common
shares will be matched or maintained. These broad market and industry factors
may adversely affect the market price of our common shares, regardless of our
operating performance.

In the past, following periods of volatility in the market
price of a companys securities, securities class-action litigation has often
been instituted. Such litigation, if instituted, could result in substantial
costs for us and a diversion of managements attention and resources.

Our stock is a penny stock. Trading of our stock may be
restricted by the SECs penny stock regulations which may limit a stockholders
ability to buy and sell our stock.

Our stock is a penny stock. The Securities and Exchange
Commission has adopted Rule 15g-9 which generally defines penny stock to be
any equity security that has a market price (as defined) less than $5.00 per
share or an exercise price of less than $5.00 per share, subject to certain
exceptions. Our securities are covered by the penny stock rules, which impose
additional sales practice requirements on broker-dealers who sell to persons
other than established customers and accredited investors. The term
accredited investor refers generally to institutions with assets in excess of
$5,000,000 or individuals with a net worth in excess of $1,000,000 or annual
income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock
rules require a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from the rules, to deliver a standardized risk disclosure
document in a form prepared by the SEC which provides information about penny
stocks and the nature and level of risks in the penny stock market. The
broker-dealer also must provide the customer with current bid and offer
quotations for the penny stock, the compensation of the broker-dealer and its
salesperson in the transaction and monthly account statements showing the market
value of each penny stock held in the customers account. The bid and offer
quotations, and the broker-dealer and salesperson compensation information, must
be given to the customer orally or in writing prior to effecting the transaction
and must be given to the customer in writing before or with the customers confirmation. In addition, the penny stock rules require that
prior to a transaction in a penny stock not otherwise exempt from these rules,
the broker-dealer must make a special written determination that the penny stock
is a suitable investment for the purchaser and receive the purchasers written
agreement to the transaction. These disclosure requirements may have the effect
of reducing the level of trading activity in the secondary market for the stock
that is subject to these penny stock rules. Consequently, these penny stock
rules may affect the ability of broker-dealers to trade our securities. We
believe that the penny stock rules discourage investor interest in and limit the
marketability of our common stock.

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The Financial Industry Regulatory Authority, or FINRA, has
adopted sales practice requirements which may also limit a stockholder's ability
to buy and sell our stock.

In addition to the "penny stock" rules described above, FINRA
has adopted rules that require that in recommending an investment to a customer,
a broker-dealer must have reasonable grounds for believing that the investment
is suitable for that customer. Prior to recommending speculative low priced
securities to their non-institutional customers, broker-dealers must make
reasonable efforts to obtain information about the customer's financial status,
tax status, investment objectives and other information. Under interpretations
of these rules, FINRA believes that there is a high probability that speculative
low priced securities will not be suitable for at least some customers.

FINRA requirements make it more difficult for broker-dealers to
recommend that their customers buy our common stock, which may limit your
ability to buy and sell our stock and have an adverse effect on the market for
our shares.

Trends, Risks and Uncertainties

We have sought to identify what we believe to be the most
significant risks to our business, but we cannot predict whether, or to what
extent, any of such risks may be realized nor can we guarantee that we have
identified all possible risks that might arise. Investors should carefully
consider all of such risk factors before making an investment decision with
respect to our common stock.

Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. [Removed and Reserved]

Item 5. Other Information

None.

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Item 6. Exhibits.

Exhibits required by Item 601 of Regulation S-K

|Exhibit | **Description**                                                                                                                                                                                                             
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3)     | Articles of Incorporation and Bylaws                                                                                                                                                                                        
|3.1     | Articles of Incorporation (incorporated by reference to
  our registration statement on Form SB-2 filed on August 16, 2007).                                                                                                
|3.2     | By-Laws (incorporated by reference to our registration
      statement on Form SB-2 filed on August 16, 2007).                                                                                                              
|3.3     | Articles of Merger (incorporated by reference from our
      Current Report on Form 8-K filed on August 3, 2010).                                                                                                           
|(10)    | Material Contracts                                                                                                                                                                                                          
|10.1    | Property agreement dated December 15, 2006 between
      Kenneth Ralfs and Feliberto Gurat as Trustee for Forza (incorporated by
      reference to our registration statement on Form SB-2 filed on August 16,
      2007).
|10.2    | Trust agreement dated January 17, 2007 (incorporated by
      reference to our registration statement on Form SB-2 filed on August 16,
      2007).                                                                         
|10.3    | Executive Employment Agreement dated May 1, 2010 between
      Paul J. Artzer (incorporated by reference from our Current Report on Form
      8-K filed on June 24, 2010).                                                 
|10.4    | Agreement and Plan of Merger dated July 12, 2010.
      (incorporated by reference from our Annual Report on Form 10-K filed on
      September 14, 2010)                                                                   
|10.5    | Letter of Intent with MALAMA Composites, LLC, dated
      September 15, 2010 (incorporated by reference from our Current Report on
      Form 8-K filed on September 17, 2010)                                              
|10.6    | Agreement to Purchase dated November 27, 2010.
      (incorporated by reference from our Current Report on Form 8-K filed on
      December 1, 2010).                                                                       
|10.7    | Executive Employment Agreement dated December 3, 2010
      between Michael Lee and the Company.                                                                                                                            
|(14)    | Code of Ethics                                                                                                                                                                                                              
|14      | Financial Code of Ethics (incorporated by reference to
  our registration statement on Form SB-2 filed on August 16, 2007).                                                                                                 
|(31)    | Section 302 Certifications                                                                                                                                                                                                  
|31.1*   | Certification pursuant to Section 302
    of the Sarbanes-Oxley Act of 2002 Charles Thompson Slay.                                                                                                                          
|(32)    | Section 906 Certification                                                                                                                                                                                                   
|32.1*   | Certification pursuant to 18 U.S.C.
      Section 1350, as adopted pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002 of Charles Thompson Slay.                                                                  

* Filed herewith

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SIGNATURES

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

|                      | FORZA ENVIRONMENTAL BUILDING PRODUCTS, INC.                    
|--------------------- | ---------------------------------------------------------------
|                      | (Registrant)                                                   
|                      |                                                                
|Dated: April 19, 2011 | /s/Charles Thompson Slay                                       
|                      | Charles Thompson Slay                                          
|                      | President, Secretary and director                              
|                      | (Principal Executive Officer, Principal
      Financial Officer
|                      | and Principal Accounting Officer)                              

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