----

----

|   |   |                                                                                                   |
|--------|--------|--------------------------------------------------------------------------------------------------------|
| þ |   | Quarterly      Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act      of 1934 |

|   |   |                                                                                                    |
|--------|--------|---------------------------------------------------------------------------------------------------------|
| o      |   | Transition      Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act      of 1934 |

|                                 |   |                                      |
|--------------------------------------|--------|-------------------------------------------|
| Delaware                        |   | 22-3091075                                |
| (State      or Other Jurisdiction of |   | (I.R.S.      Employer Identification No.) |
| Incorporation      or Organization)  |   |                                      |

| 410      Park Avenue, 15th      Floor                     |
|-----------------------------------------------------------|
| New      York, New York 10022                             |
| (Address      of principal executive offices and zipcode) |

| Large      accelerated filer   ̈ |    | Accelerated      filer   ̈ |
|------------------------------------------------|--------------|------------------------------------------|

| Non-accelerated      filer   ̈(Do      not check if smaller reporting company) |    | Smaller      reporting company  x |
|----------------------------------------------------------------------------------------------|--------------|---------------------------------------------|

----

----

----

| DOMINION      MINERALS CORP. AND SUBSIDIARIES                         |
|-----------------------------------------------------------------------|
| (FORMERLY      EMPIRE MINERALS CORP.)                                 |
| (AN      EXPLORATION COMPANY)                                         |
| CONSOLIDATED      BALANCE SHEET                                       |
| AS      OF JUNE 30, 2008                                              |
|                                                                  |   |   |   |
| ASSETS                                                                |
|                                                                  |   | JUNE      30, |   |
|                                                                  |   | 2008 |   |
|                                                                  |   | (UNAUDITED) |   |
|                                                                  |   | (Restated) |   |
| CURRENT      ASSETS:                                                  |   |   |   |
| Cash      and cash equivalents                                        |   | $ | 770,103 |   |
| Prepaid      expense                                                  |   |   | 23,529 |   |
| Total      current assets                                             |   |   | 793,632 |   |
|                                                                  |   |   |   |   |
| EQUIPMENT,      net                                                   |   |   | 40,821 |   |
|                                                                  |   |   |   |   |
| OTHER      ASSETS:                                                    |   |   |   |   |
| Notes      issuance cost, net                                         |   |   | 63,525 |   |
| Other      assets                                                     |   |   | 12,000 |   |
| Long      term investment                                             |   |   | 4,643,259 |   |
| Total      other assets                                               |   |   | 4,718,784 |   |
|                                                                  |   |   |   |   |
| Total      assets                                                     |   | $ | 5,553,237 |   |
|                                                                  |   |   |   |   |
| LIABILITIES AND      SHAREHOLDERS' EQUITY                             |
| CURRENT      LIABILITIES:                                             |   |   |   |   |
| Accrued      liabilities                                              |   | $ | 749,241 |   |
| Short-term      loan                                                  |   |   | 1,725,949 |   |
| Convertible      note payable                                         |   |   | 550,000 |   |
| Liquidated      damages payable                                       |   |   | 196,050 |   |
| Total      current liabilities                                        |   |   | 3,221,240 |   |
|                                                                  |   |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                    |   |   | - |   |
|                                                                  |   |   |   |   |
| SHAREHOLDERS'      EQUITY:                                            |   |   |   |   |
| Preferred      stock, $0.0001 par value; 5,000,000 shares authorized; |   |   |   |   |
| 100      shares issued and outstanding as of June 30, 2008            |   |   | - |   |
| Common      stock, $0.0001 par value; 700,000,000 shares authorized   |   |   |   |   |
| 47,405,696      issued and outstanding as of June 30, 2008            |   |   | 4,741 |   |
| Escrowed      common stock                                            |   |   | (134 | ) |
| Additional      paid-in capital                                       |   |   | 19,017,899 |   |
| Stock      subscription receivable                                    |   |   | (1,560 | ) |
| Shares      to be returned for services not received                  |   |   | (1,654,167 | ) |
| Deficit      accumulated during the exploration  stage      |   |   | (15,091,281 | ) |
| Accumulated      other comprehensive income                           |   |   | 56,499 |   |
| Total      shareholders' equity                                       |   |   | 2,331,997 |   |
|                                                                  |   |   |   |   |
| Total      liabilities and shareholders' equity                       |   | $ | 5,553,237 |   |

----

| DOMINION      MINERALS CORP. AND SUBSIDIARIES                                          |
|----------------------------------------------------------------------------------------|
| (FORMERLY      EMPIRE MINERALS CORP.)                                                  |
| (AN      EXPLORATION COMPANY)                                                          |
| CONSOLIDATED      STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS                |
| FOR      THE THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007                         |
| AND      FROM INCEPTION (MARCH 1, 2006) TO JUNE 30, 2008                               |
| (UNAUDITED)                                                                            |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   | From      inception |   |
|                                                                                   |   | Three      months ended |   |   | Six      months ended |   |   | (March      1, 2006) |   |
|                                                                                   |   | June      30, |   |   | June      30, |   |   | to      June 30, |   |
|                                                                                   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |
|                                                                                   |   |   |   |   | (Restated) |   |   |   |   |   | (Restated) |   |   | (Restated) |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REVENUE                                                                                |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| COST      OF SALES                                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS      PROFIT                                                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| RESEARCH      AND DEVELOPMENT COSTS                                                    |   |   | 57,747 |   |   |   | 76,776 |   |   |   | 104,336 |   |   |   | 275,735 |   |   |   | 884,688 |   |
| GENERAL      AND  ADMINISTRATIVE EXPENSES                                    |   |   | 2,769,235 |   |   |   | 350,121 |   |   |   | 4,133,049 |   |   |   | 2,545,411 |   |   |   | 11,181,182 |   |
| LOSS      FROM EXPECTED SERVICES NOT RECEIVED                                          |   |   | - |   |   |   | 2,205,492 |   |   |   | - |   |   |   | 2,205,492 |   |   |   | 2,205,492 |   |
| LIQUIDATED      DAMAGE EXPENSE                                                         |   |   | 84,225 |   |   |   | - |   |   |   | 196,050 |   |   |   | -  |   |   |   | 196,050 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      FROM OPERATIONS                                                              |   |   | (2,911,207 | ) |   |   | (2,632,389 | ) |   |   | (4,433,435 | ) |   |   | (5,026,638 | ) |   |   | (14,467,412 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      (EXPENSE) INCOME, NET                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Non-operating      income, net                                 |   |   | 2,516 |   |   |   | 10,117 |   |   |   | (25,000 | ) |   |   | 10,117 |   |   |   | (14,670 | ) |
|     Interest      (expense) income, net                            |   |   | (106,215 | ) |   |   | 1,995 |   |   |   | (116,229 | ) |   |   | 4,354 |   |   |   | (210,110 | ) |
|     Finance      expense                                           |   |   | (177,242 | ) |   |   | - |   |   |   | (399,089 | ) |   |   |   |   |   |   | (399,089 | ) |
|         Total      other (expense) income, net |   |   | (280,941 | ) |   |   | 12,112 |   |   |   | (540,318 | ) |   |   | 14,471 |   |   |   | (623,869 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      BEFORE PROVISION FOR INCOME TAXES                                            |   |   | (3,192,148 | ) |   |   | (2,620,277 | ) |   |   | (4,973,753 | ) |   |   | (5,012,167 | ) |   |   | (15,091,281 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PROVISION      FOR INCOME TAXES                                                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                                                                          |   |   | (3,192,148 | ) |   |   | (2,620,277 | ) |   |   | (4,973,753 | ) |   |   | (5,012,167 | ) |   |   | (15,091,281 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      COMPREHENSIVE INCOME                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Foreign      currency translation adjustment                   |   |   | 7,591 |   |   |   | 1,338 |   |   |   | 31,333 |   |   |   | 5,413 |   |   |   | 56,499 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      LOSS                                                                |   | $ | (3,184,557 | ) |   | $ | (2,618,939 | ) |   | $ | (4,942,420 | ) |   | $ | (5,006,754 | ) |   | $ | (15,034,782 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      PER SHARE                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted loss per share                                                  |   | $ | (0.07 | ) |   | $ | (0.07 | ) |   | $ | (0.11 | ) |   | $ | (0.17 | ) |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted weighted average shares outstanding                             |   |   | 46,479,585 |   |   |   | 39,667,252 |   |   |   | 44,531,939 |   |   |   | 29,776,607 |   |   |   |   |   |

----

| DOMINION      MINERALS CORP. AND SUBSIDIARIES(FORMERLY      EMPIRE MINERALS CORP.)(AN      EXPLORATION COMPANY)STATEMENT OF      SHAREHOLDERS' EQUITY |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       | SHARES      TOBE             |   |       |         |   |       |        ACCUMU-LATED |    |           |                |       |
|--------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|-----------|-------------------|--------|-----------|-----------------------|--------|--------|-------------------|--------|--------|--------------------|--------|------------|------------------------------|--------|------------|--------------|--------|------------|--------------------------|---------|----------------|---------------------|------------|
|                                                                                                         |   | PREFERRED      STOCK |   |      | COMMON      STOCK |   |      | SHARES      IN ESCROW |   |   | ADDITIONALPAID-IN |   |   | STOCKSUBSCRIP-TION |   |       | RETURNEDFOR      SERVICESNOT |   |       | ACCUMU-LATED |   |       | OTHERCOMPRE-HENSIVEGAIN  |    |           | TOTALSHARE-HOLDERS' |       |
|                                                                                                         |   | SHARES               |   | PAR       |              |   | SHARES    |                  |   | PAR    |              |   | SHARES |               |   | PAR        |                         |   | CAPITAL    |         |   | RECEIVABLE |                     |    |  RECEIVED |                |       | DEFICIT |   |   |  (LOSS) |   |   | EQUITY |   |
| Balance      at inception, March 1, 2006                                                                     |   |                 | -      |      |              | $      | -         |                  |   |   | -                 |   |   | $                  | -      |       |                         |   | -          |         |   | $          | -                        |    |           | $                   | -          |   |   | $ | - |   |   |   |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Founders      stock issued for cash, $0.001      per share                                                   |   |                 |   |      |              |   | 6,460,000 |                  |   |   | 646               |   |   |               |   |       |                         |   |       |         |   |       | 5,814                    |    |           |                | (3,060     | ) |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,400 |   |
| Shares      issued March 29, 2006 for      $76,500 in services and $8,500 cash, at      $0.01 per share |   |                 |   |      |              |   |      |                  |   |   | 8,500,000         |   |   |               | 850    |       |                         |   |       |         |   |       |                     |    |           |                | 84,150     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 85,000 |   |
| Stock      sold through subscription agreements      April      through December 2006 at $0.50 per share     |   |                 |   |      |              |   |      |                  |   |   | 5,505,000         |   |   |               | 551    |       |                         |   |       |         |   |       |                     |    |           |                | 2,751,949  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,752,500 |   |
| Stock      issued through the exercise      of warrants                                                      |   |                 |   |      |              |   |      | 20,000                |   |   |              | 2      |   |               |   |       |                         |   |       |         |   |       |                     | 1,998   |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,000 |   |
| Stock      warrants issued to employees                                                                      |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | 474        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 474 |   |
| Stock      warrants issued to consultants      for advisory services                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       | 197,113      |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   | 197,113 |   |
| Foreign      currency translation loss                                                                       |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,651 | ) |   |   | (2,651 | ) |
| Net      loss                                                                                                |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   | (2,123,672 | ) |   |   |   |   |   |   | (2,123,672 | ) |
|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2006                                                                              |   |                 | -      |      |              | $      | -         |                  |   |   | 20,485,000        |   |   | $                  | 2,049  |       |                         |   | -          |         |   | $          | -                        |    |           | $                   | 3,041,498  |   |   | $ | (3,060 | ) |   | $ | - |   |   | $ | (2,123,672 | ) |   | $ | (2,651 | ) |   | $ | 914,164 |   |
|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      issued                                                                                            |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $0.10      per share, conversion of      warrants for cash                                                   |   |                 |   | 450,000   |              |   |      | 45                    |   |   |              |   |   |               |   |       |                         |   |       | 44,955       |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   | 45,000 |   |
| $0.10      per share, cashless conversion      of warrants                                                   |   |                 |   | 1,600,000 |              |   |      | 160                   |   |   |              |   |   |               |   |       |                         |   |       | (160         | )      |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| $0.50      per share, CEO for compensation                                                                   |   |                 |   |      |              |   |      | 1,500,000             |   |   |              | 150    |   |               |   |       |                         |   |       |         |   |       |                     | 749,850 |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 750,000 |   |
| $0.50      per share, for cash                                                                               |   |                 |   |      |              |   |      |                  |   |   | 1,994,000         |   |   |               | 199    |       |                         |   |       |         |   |       |                     |    |           |                | 996,801    |   |   |   | (210,000 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 787,000 |   |
| $0.50      per share, for consulting      services                                                           |   |                 |   |      |              |   |      | 1,475,000             |   |   |              | 148    |   |               |   |       |                         |   |       |         |   |       |                     | 737,352 |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 737,500 |   |
| $0.50      per share, for investment      in Cuprum                                                          |   |                 |   |      |              |   |      | 4,000,000             |   |   |              | 400    |   |               |   | (2,666,667 | )                            |   |       | (267         | )      |       |                     | 666,533 |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 666,666 |   |
| $0.50      per share, for conversion      of notes                                                           |   |                 |   |      |              |   |      | 100,000               |   |   |              | 10     |   |               |   |       |                         |   |       |         |   |       |                     | 49,990  |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 50,000 |   |
| $0.50      per share, for services      and conversion of note                                          |   |                 |   |      |              |   | 7,925,000 |                  |   |   | 793               |   |   |               |   |       |                         |   |       |         |   |       | 3,961,707                |    |           |                |       |   |   |   | (1,654,167 | ) |   |   |   |   |   |   |   |   |   |   | 2,308,333 |   |
| Shares      assumed pursuant to reverse merger                                                               |   |                 | 100    |      |              |   |      |                  |   |   | 232,696           |   |   |               | 23     |       |                         |   |       |         |   |       |                     |    |           |                | (135,230   | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (135,207 | ) |
| Repurchase      preferred stock                                                                              |   |                 | (100   | )         |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | (10,000    | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (10,000 | ) |
| Warrants      issued with convertible note                                                                   |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | 14,276     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 14,276 |   |
| Proceeds      on subscription receivable                                                                     |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   | 200 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 200 |   |
| Foreign      currency translation gain                                                                       |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,413 |   |   |   | 5,413 |   |
| Net      loss                                                                                                |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   | (5,012,167 | ) |   |   |   |   |   |   | (5,012,167 | ) |
|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      June 30, 2007, unaudited, Restated                                                             |   |                 | -      |      |              |   | -         |                  |   |   | 39,761,696        |   |   |               | 3,977  |       |                         |   | (2,666,667 | )            |   |       | (267                     | )       |           |                | 10,117,572 |   |   |   | (212,860 | ) |   |   | (1,654,167 | ) |   |   | (7,135,839 | ) |   |   | 2,762 |   |   |   | 1,121,178 |   |
|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      on subscription receivable                                                                     |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   | 1,300 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,300 |   |
| Stock      issued                                                                                            |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $0.50      per share, for cash                                                                               |   |                 |   |      |              |   |      |                  |   |   | 1,320,000         |   |   |               | 132    |       |                         |   |       |         |   |       |                     |    |           |                | 659,868    |   |   |   | 210,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 870,000 |   |
| $0.50      per share, for consulting      services                                                           |   |                 |   |      |              |   |      | 824,000               |   |   |              | 82     |   |               |   |       |                         |   |       |         |   |       |                     | 411,918 |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 412,000 |   |
| $0.50      per share, for loan issuance      cost                                                            |   |                 |   |      |              |   |      | 700,000               |   |   |              | 70     |   |               |   |       |                         |   |       |         |   |       |                     | 349,930 |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 350,000 |   |
| Warrants      issued with convertible note                                                                   |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | 53,151     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 53,151 |   |
| Special      warrants issued                                                                                 |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issued      for cash                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | 2,230,000  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,230,000 |   |
| Issued      with convertible promissory      note                                                            |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     | 500,000 |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 500,000 |   |
| Preferred      stock issued for compensation expense                                                         |   |                 | 100    |      |              |   | -         |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | 10,000     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 10,000 |   |
| Stock      compensation expense                                                                              |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | 594,370    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 594,370 |   |
| Foreign      currency translation gain                                                                       |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 22,404 |   |   |   | 22,404 |   |
| Net      loss                                                                                                |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   | (2,981,689 | ) |   |   |   |   |   |   | (2,981,689 | ) |
|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2007, Restated                                                                    |   |                 | 100    |      |              | $      | -         |                  |   |   | 42,605,696        |   |   | $                  | 4,261  |       |                         |   | (2,666,667 | )            |   | $          | (267                     | )       |           | $                   | 14,926,809 |   |   | $ | (1,560 | ) |   | $ | (1,654,167 | ) |   | $ | (10,117,528 | ) |   | $ | 25,166 |   |   | $ | 3,182,714 |   |
|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Release      of escrow shares                                                                                |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   | 1,333,334  |         |   |       | 133                      |    |           |                | 666,534    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 666,667 |   |
| Shares      issued to extend convertible note                                                                |   |                 |   |      |              |   |      |                  |   |   | 250,000           |   |   |               | 25     |       |                         |   |       |         |   |       |                     |    |           |                | 124,975    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 125,000 |   |
| Shares      issued as employee compensation                                                                  |   |                 |   |      |              |   |      |                  |   |   | 4,550,000         |   |   |               | 455    |       |                         |   |       |         |   |       |                     |    |           |                | 2,274,545  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,275,000 |   |
| Special      warrants issued for cash                                                                        |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | 77,500     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 77,500 |   |
| Stock      compensation expense                                                                              |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                | 947,536    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 947,536 |   |
| Foreign      currency translation gain                                                                       |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 31,333 |   |   |   | 31,333 |   |
| Net      loss                                                                                                |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   | (4,973,753 | ) |   |   |   |   |   |   | (4,973,753 | ) |
|                                                                                                         |   |                 |   |      |              |   |      |                  |   |   |              |   |   |               |   |       |                         |   |       |         |   |       |                     |    |           |                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      June 30, 2008, unaudited, Restated                                                             |   |                 | 100    |      |              | $      | -         |                  |   |   | 47,405,696        |   |   | $                  | 4,741  |       |                         |   | (1,333,333 | )            |   | $          | (134                     | )       |           | $                   | 19,017,899 |   |   | $ | (1,560 | ) |   | $ | (1,654,167 | ) |   | $ | (15,091,281 | ) |   | $ | 56,499 |   |   | $ | 2,331,997 |   |

----

| DOMINION      MINERALS CORP. AND SUBSIDIARIES                                                                 |
|---------------------------------------------------------------------------------------------------------------|
| (FORMERLY      EMPIRE MINERALS CORP.)                                                                         |
| (AN      EXPLORATION COMPANY)                                                                                 |
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                                                    |
| FOR      THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007 AND FROM INCEPTION (MARCH 1,      2006) TO JUNE 30, 2008 |
|                                                                                                          |   |   |   |   |   |   |   |   |   |
| (UNAUDITED)                                                                                                   |
|                                                                                                          |
|                                                                                                          |   |   |   |   |   |   |   | From      inception |   |
|                                                                                                          |   | Six      months ended |   |   | (March      1, 2006) |   |
|                                                                                                          |   | June      30, |   |   | to      June 30, |   |
|                                                                                                          |   | 2008 |   |   | 2007 |   |   | 2008 |   |
|                                                                                                          |   |   |   |   | (Restated) |   |   | (Restated) |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                    |   |   |   |   |   |   |   |
|  Net      loss                                                                                           |   | $ | (4,973,753 | ) |   | $ | (5,012,167 | ) |   | $ | (15,091,281 | ) |
| Adjustments      to reconcile net loss to net cash                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| used      in operating activities:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                                                  |   |   | 6,302 |   |   |   | 4,637 |   |   |   | 15,649 |   |
| Bad      debt expense                                                                                         |   |   | - |   |   |   | - |   |   |   | 80,000 |   |
| Warrants      issued for services                                                                             |   |   | - |   |   |   | - |   |   |   | 197,587 |   |
| Amortization      of debt discount                                                                            |   |   | - |   |   |   | - |   |   |   | 31,641 |   |
| Amortization      of loan issuance cost                                                                       |   |   | 240,090 |   |   |   | - |   |   |   | 446,262 |   |
| Common      stock issued for advisory services                                                                |   |   | - |   |   |   | 1,487,500 |   |   |   | 1,906,479 |   |
|  Loss      from write-off of services due from note holders                                              |   |   |   | 2,202,262 |   |   |   | 2,202,262 |   |
| Stock      option expense                                                                                     |   |   | 947,536 |   |   |   | - |   |   |   | 1,541,906 |   |
| Common      stock issued for notes                                                                            |   |   | 125,000 |   |   |   | - |   |   |   | 125,000 |   |
| Common      stock issued for employee compensation                                                            |   |   | 2,275,000 |   |   |   | - |   |   |   | 2,275,000 |   |
| Preferred      stock issued for employee compensation                                                         |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Loss      on currency exchange                                                                                |   |   | 1,048 |   |   |   | - |   |   |   | 12,128 |   |
| Change      in operating assets and liabilities:                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepaid      expense                                                                                          |   |   | 45,992 |   |   |   | - |   |   |   | 45,992 |   |
| Other      assets                                                                                             |   |   | (12,000 | ) |   |   | - |   |   |   | (12,000 | ) |
| Accrued      liabilities                                                                                      |   |   | 219,789 |   |   |   | 101,700 |   |   |   | 749,323 |   |
| Liquidated      damage expense                                                                                |   |   | 196,050 |   |   |   | - |   |   |   | 196,050 |   |
| Net      cash used in operating activities                                                                    |   |   | (928,946 | ) |   |   | (1,216,068 | ) |   |   | (5,268,002 | ) |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                    |   |   |   |   |   |   |   |   |   |
| Equipment      purchase                                                                                       |   |   | (3,271 | ) |   |   | (2,098 | ) |   |   | (49,759 | ) |
| Long      term investment                                                                                     |   |   | (1,256,314 | ) |   |   | (978,065 | ) |   |   | (3,309,928 | ) |
| Advances      for notes receivable                                                                            |   |   | - |   |   |   | - |   |   |   | (80,000 | ) |
| Net      cash used in investing activities                                                                    |   |   | (1,259,585 | ) |   |   | (980,163 | ) |   |   | (3,439,687 | ) |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                    |   |   |   |   |   |   |   |   |   |
| Proceeds      from sale of common stock                                                                       |   |   | - |   |   |   | 997,000 |   |   |   | 4,421,400 |   |
| Proceeds      from special warrants                                                                           |   |   | 77,500 |   |   |   | 45,000 |   |   |   | 2,298,420 |   |
| Proceeds      from exercise of warrants                                                                       |   |   | - |   |   |   | - |   |   |   | 45,000 |   |
| Payment      of note issuance cost                                                                            |   |   | - |   |   |   | - |   |   |   | (74,000 | ) |
| Payment      on notes payables                                                                                |   |   | (100,000 | ) |   |   | (25,000 | ) |   |   | (425,000 | ) |
| Proceeds      from short term loan                                                                            |   |   | 75,868 |   |   |   | - |   |   |   | 75,868 |   |
| Proceeds      from notes payable                                                                              |   |   | 2,000,000 |   |   |   | 455,000 |   |   |   | 3,105,000 |   |
| Proceeds      from subscription receivable                                                                    |   |   | - |   |   |   | 200 |   |   |   | 1,500 |   |
| Payment      to repurchase preferred stock                                                                    |   |   | - |   |   |   | (10,000 | ) |   |   | (10,000 | ) |
| Net      cash provided by financing activities                                                                |   |   | 2,053,368 |   |   |   | 1,462,200 |   |   |   | 9,438,188 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| EFFECT      OF EXCHANGE RATE CHANGES ON CASH                                                                  |   |   | 27,150 |   |   |   | (6,316 | ) |   |   | 39,604 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                     |   |   | (108,013 | ) |   |   | (740,347 | ) |   |   | 770,103 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS, beginning of the period                                                       |   |   | 878,116 |   |   |   | 1,047,877 |   |   |   | - |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS, end of period                                                                 |   | $ | 770,103 |   |   | $ | 307,530 |   |   | $ | 770,103 |   |
|                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES:                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      paid                                                                                            |   | $ | - |   |   | $ | - |   |   | $ | 66,024 |   |
| Income      taxes paid                                                                                        |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Net      liabilities assumed in reverse acquisition                                                           |   | $ | - |   |   | $ | - |   |   | $ | 135,207 |   |
| Conversion      of notes and interest for common stock                                                        |   | $ | - |   |   | $ | - |   |   | $ | 106,071 |   |
| Issuance      of founders stock for subscription receivable                                                   |   | $ | - |   |   | $ | - |   |   | $ | 14,960 |   |
| Shares      issued for exploration and development of investment                                              |   | $ | 666,666 |   |   | $ | - |   |   | $ | 1,333,332 |   |
| Common      stock issued to prepay for consulting services                                                    |   | $ | - |   |   | $ | - |   |   | $ | 69,521 |   |
| Special      warrants issued for repayment of convertible promissory    note                                  |   | $ | - |   |   | $ | - |   |   | $ | 500,000 |   |
| Warrants      issued for discount on debt                                                                     |   | $ | - |   |   | $ | - |   |   | $ | 31,641 |   |
| Warrants      issued for loan issuance costs                                                                  |   | $ | - |   |   | $ | - |   |   | $ | 35,786 |   |
| Common      stock issued for loan issuance cost                                                               |   | $ | - |   |   | $ | - |   |   | $ | 400,000 |   |

----

| 1.         | Nature of Business and      Significant AccountingPolicies |
|----------------------------------------------------|------------------------------------------------------------|

| a.   | Nature of      business – Dominion Minerals Corp. (“Company”) (formerly Empire      Minerals Corp.) was incorporated January 4, 1996 under the laws of      Delaware. The Company is engaged in the exploration of precious and base      metals including gold and copper.  All potential properties      currently under exploration are located in the People’s Republic of China      (“PRC”) and Panama. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Basis of      presentation – The accompanying consolidated financial statements      have been prepared in accordance with accounting principles generally      accepted in the United States of America.  The consolidated      financial statements include the financial statements of the Company, its      wholly owned subsidiaries Empire Minerals Corp., 50% owned Zhaoyuan      Dongxing Gold Mining Co., Ltd. (“Dongxing”), and 70% owned Empire      (Tianjin) Resources Co., Ltd. (“Tianjin”) (together the “Subsidiaries”).      All significant inter-company transactions and balances are eliminated      upon consolidation.  Minority interest has not been presented on      the consolidated balance sheet because accumulated losses have exceeded      the minority shareholders’ equity.  In accordance with APB No.      18, the minority interest has been written down to zero on the      accompanying balance sheet. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| c.   | Use of      estimates – The preparation of financial statements in conformity      with accounting principles generally accepted in the United States of      America requires management to make estimates and assumptions that affect      certain reported amounts and disclosures, such as the fair value of      warrants and stock issued for services as well as various accruals, for      example, we must calculate the fair value of options granted based on      various assumptions.  Accordingly, the actual results could      differ from those estimates. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Fair value of      financial instruments – On January 1, 2008, the Company adopted      SFAS No. 157.  SFAS No. 157, Fair Value Measurements, defines      fair value, establishes a three-level valuation hierarchy for disclosures      of fair value measurement and enhances disclosures requirements for fair      value measures.  The carrying amounts reported in the balance      sheets for current assets and current liabilities qualify as financial      instruments are a reasonable estimate of fair value because of the short      period of time between the origination of such instruments and their      expected realization and their current market rate of      interest.  The three levels are defined as    follow: |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●       | Level      1   inputs to the valuation methodology are quoted prices      (unadjusted) for identical assets or liabilities in active      markets. |
|---------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●       | Level      2   inputs to the valuation methodology include quoted      prices for similar assets and liabilities in active markets, and inputs      that are observable for the assets or liability, either directly or      indirectly, for substantially the full term of the financial      instruments. |
|---------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●       | Level      3   inputs to the valuation methodology are unobservable      and significant to the fair value. |
|---------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|

| e.   | Cash and cash      equivalents – For purposes of the statements of cash flows, the      Company defines cash equivalents as all highly liquid debt instruments      purchased with an original maturity of three months or    less. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f.   | Advances – From      time to time, the Company advances funds to its consultants and business      partners to further the Company’s business plans.  Management      monitors these advances to ensure appropriate progress is made pursuant to      the funding terms.  Additionally, management evaluates the      collectability of these monies and records reserves if collections are in      doubt. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| g.   | Concentration of      risk – Financial instruments, which potentially subject the Company      to concentrations of credit risk, consist of cash and cash equivalents.      The Company places its cash with high quality financial institutions and      at times may exceed the FDIC $100,000 insurance limit. The Company has      limited experience as it is an exploration stage company but does not      anticipate incurring any losses related to this credit risk.  As      of June 30, 2008, the Company had amounts in bank accounts in excess of      FDIC insurance of $884,597. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h.   | Net loss per      share – In accordance with Statement of Financial Accounting      Standard (SFAS) No. 128, Earnings Per Share, an      basic earnings/loss per common share (EPS) is computed by dividing net      loss for the period by the weighted average number of common shares      outstanding during the period.  Under SFAS 128, diluted      earnings/loss per share is computed similar to basic loss per share except      that the denominator is increased to include the number of additional      common shares that would have been outstanding if the potential common      shares had been issued anddilutive. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | 2008   |       |   | 2007       |   |
|----------------------------------------------------------|--------|--------|------------|--------|------------|--------|
| Three      months ended June 30,                         |   |   |       |   | (Restated) |   |
| Net      loss                                            |   | $      | 3,192,148  |   |       | $      | 2,620,277 |   |
|                                                     |   |   |       |   |       |   |   |   |
| Weighted      average shares used in basic computation   |   |   | 46,479,585 |   |       |   | 39,667,252 |   |
| Diluted      effect of stock options, warrants           |   |   | -          |   |       |   | - |   |
| Weighted      average shares used in diluted computation |   |   | 46,479,585 |   |       |   | 39,667,252 |   |
|                                                     |   |   |       |   |       |   |   |   |
| Losses      per share:                                   |   |   |       |   |       |   |   |   |
| Basic                                                    |   | $      | 0.07       |   |       | $      | 0.07 |   |
| Diluted                                                  |   | $      | 0.07       |   |       | $      | 0.07 |   |

----

| Six      months ended June 30,                           |   | 2008   |       |   | 2007       |   |
|----------------------------------------------------------|--------|--------|------------|--------|------------|--------|
|                                                     |   |   |       |   | (Restated) |   |
| Net      loss                                            |   | $      | 4,973,753  |   |       | $      | 5,012,167 |   |
|                                                     |   |   |       |   |       |   |   |   |
| Weighted      average shares used in basic computation   |   |   | 44,531,939 |   |       |   | 32,445,025 |   |
| Diluted      effect of stock options, warrants           |   |   | -          |   |       |   | - |   |
| Weighted      average shares used in diluted computation |   |   | 44,531,939 |   |       |   | 32,445,025 |   |
|                                                     |   |   |       |   |       |   |   |   |
| Losses      per share:                                   |   |   |       |   |       |   |   |   |
| Basic                                                    |   | $      | (0.11      | )      |       | $      | (0.15 | ) |
| Diluted                                                  |   | $      | (0.11      | )      |       | $      | (0.15 | ) |

| i.   | Income Taxes –      The Company provides for income taxes under SFAS 109, “Accounting for Income      Taxes,” which requires the recognition of deferred tax liabilities      and assets for the expected future tax consequences of temporary      differences between the carrying amounts and the tax bases of assets and      liabilities using the enacted income tax rate expected to apply to taxable      income in the period in which the deferred tax liability or assets is      expected to be settled or realized.  SFAS 109 requires that a      valuation allowance be established if necessary, to reduce the deferred      tax assets to the amount that management believes is more likely than not      to be realized.  The provision for federal income tax differs      from that computed amount by applying federal statutory rates to income      before federal income tax expense mainly due to expenses that are not      deductible and income that is not taxable for federal income taxes,      including permanent differences such as non-deductible meals and      entertainment. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| j.   | Stock based      compensation – For stock, options and warrants issued to service      providers, employees and founders, the Company follows SFAS No. 123(R),      Share-Based Payment,      and EITF 96-18,      Accounting for Equity Instruments That Are Issued to Other Than Employees      for Acquiring, or in Conjunction with Selling, Goods or Services,      which requires recording the options and warrants at the fair value of the      service provided and expensing over the related service      period. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k.   | Recently issued      accounting pronouncements |
|----------------|------------------------------------------------|

----

----

| l.   | Equipment –      Equipment is stated at cost and is depreciated using the straight-line      method over their estimated useful lives of five      years.  Expenditures for maintenance and repairs are charged to      operations as incurred.  The estimated service lives of      equipment and vehicles are asfollows: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                             | Depreciable      life |   |
|--------|----------------------------------|-----------------------|--------|
|   | Exploration      equipment  | 5    years            |   |
|   | Office      equipment       | 5    years            |   |
|   | Vehicles                    | 5    years            |   |

| m.   | Impairment for long      lived assets – SFAS No. 144, “Accounting for the Impairment or      Disposal of Long−Lived Assets” requires that long−lived assets to be      disposed of by sale, including those of discontinued operations, be      measured at the lower of carrying amount or fair value less cost to sell,      whether reported in continuing operations or in discontinued operations.      SFAS No. 144 broadens the reporting of discontinued operations to include      all components of an entity with operations that can be distinguished from      the rest of the entity and that will be eliminated from the ongoing      operations of the entity in a disposal transaction. SFAS No. 144 also      establishes a "primary−asset" approach to determine the cash flow      estimation period for a group of assets and liabilities that represents      the unit of accounting for a long−lived asset to be held and used. The      Company has no impairment issues todisclose. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| n.   | Foreign currency      translation – The reporting currency of the Company is US      dollar.  Dongxing and Tianjin use their local currency RMB, as      their functional currency. Results of operations and cash flows are      translated at average exchange rates during the period, assets and      liabilities are translated at the unified exchange rate as quoted by the      People’s Bank of China at the end of the period, and equity is translated      at historical exchange rates. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Translation      adjustments amounted to $56,499 gain as of June 30, 2008. Asset and      liability accounts at June 30, 2008 were translated at 6.85 RMB to $1.00.      Equity accounts were stated at their historical rate. The average      translation rates applied to income statement accounts and cash flows for      the six months ended June 30, 2008 and 2007, and from inception (March 1,      2006) to June 30, 2008 were 7.05 RMB, 7.71 RMB and 7.63 RMB to $1.00,      respectively. In accordance with Statement of Financial Accounting      Standards No. 95, "Statement of Cash Flows," cash flows from the Company's      operations is calculated based upon the local currencies using the average      translation rate. Because cash flows are translated at average translation      rates for the period, amounts reported on the statement of cash flows will      not necessarily agree with changes in the corresponding balances on the      balance sheet. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Transaction      gains and losses that arise from exchange rate fluctuations on      transactions denominated in a currency other than the functional currency      are included in the results of operations as incurred. For the six months      ended June 30, 2008 and 2007, and from inception (March 1, 2006) to June      30, 2008, total transaction loss amounted to $1,048, $0 and $12,128      respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Going      Concern |
|----------------|--------------------|

| 3.   | Restatement –      Conversion of Promissory Note, Issuance of Common Stock,      Litigation      and Partial Recovery of      Common Stock Shares issued |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                          |   | Six      Months Ended June 30, 2007 |       |   | From      inception (March 1, 2006) to      June 30, 2008 |   |
|-----------------------------------------------|--------|-------------------------------------|------------|--------|-----------------------------------------------------------|--------|
|                                          |   | As      PreviouslyReported          |       |   | As      Restated                                          |   |   | As      PreviouslyReported |   |   | As      Restated |   |
|                                          |   |                                |       |   |                                                      |   |   |   |   |   |   |   |
| Loss      from expected services not received |   |                                | -          |   |                                                      | $      | (2,205,492 | ) |   |   | - |   |   | $ | (2,205,492 | ) |
|                                          |   |                                |       |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from operations                     |   |                                | (2,821,146 | )      |                                                      |   | (5,026,638 | ) |   |   | (12,261,920 | ) |   |   | (14,467,412 | ) |
|                                          |   |                                |       |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss      before provision for income taxes   |   |                                | (2,806,675 | )      |                                                      |   | (5,012,167 | ) |   |   | (12,885,789 | ) |   |   | (15,091,281 | ) |
|                                          |   |                                |       |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                 |   | $                                   | (2,806,675 | )      |                                                      | $      | (5,012,167 | ) |   | $ | (12,885,789 | ) |   | $ | (15,091,281 | ) |
|                                          |   |                                |       |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss                       |   | $                                   | (2,801,262 | )      |                                                      | $      | (5,006,754 | ) |   | $ | (12,829,290 | ) |   | $ | (15,034,782 | ) |
|                                          |   |                                |       |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss per share                       |   | $                                   | (0.09      | )      |                                                      | $      | (0.17 | ) |   |   |   |   |   |   |   |   |
|                                          |   |                                |       |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |                                |       |   |                                                      |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | June      30, 2008                  |       |   |                                                           |   |
|                                          |   |  As      PreviouslyReported    |       |   |  As      Restated                                    |   |   |   |   |   |   |   |   |   |
| Shareholders’      Equity               |   | $                                   | 2,335,227  |   |                                                      | $      | 2,331,997 |   |   |   |   |   |   |   |   |   |

----

| 4.   | Equipment |
|----------------|-----------|

|   | Equipment      consists of the following at June 30,2008: |
|--------|-----------------------------------------------------------|

|   | Exploration      equipment                        |   | $      | 21,622 |   |   |
|--------|---------------------------------------------------|--------|--------|--------|--------|--------|
|   | Office      equipment                             |   |   | 4,916  |   |   |
|   | Vehicles                                          |   |   | 30,172 |   |   |
|   |      Total               |   |   | 56,710 |   |   |
|   | Less:      accumulated depreciation               |   |   | 15,889 |   |   |
|   |      Equipment,      net |   | $      | 40,821 |   |   |

| 5.   | Long term      investment |
|----------------|---------------------------|

|   | Zhaoyuan      Dongxing Gold Mining Co., Ltd. (“Zhaoyuan Dongxing”) – The Company entered      into a joint venture agreement with Zhaoyuan Dongxing Gold Minerals Co.,      Ltd. (“Dongxing”) to conduct gold mining activities in the PRC. The      agreement calls for a total capital contribution of $500,000 from the      Company. Dongxing will contribute various mining licenses and other assets      such as instruments and equipment. The Company will receive a 50% equity      stake in the joint venture in exchange for its $500,000 contribution.      Dongxing will receive the remaining 50% stake in the joint venture in      exchange for its contribution of mining licenses and other assets. The      amount was due and payable when Dongxing acquired the required business      license approvals in the People’s Republic of China. On December 20, 2006,      the joint venture company, Zhaoyuan Dongxing was approved by the Chinese      government and the business license was granted on December 21,      2006.  The Company has contributed the full $500,000 capital      contribution as per the joint venture agreement.  The Company      consolidates the financial statements of Zhaoyuan Dongxing into its      financial statements because the Company exercises control over the      Zhaoyuan Dongxing through its 50% ownership; additionally, the Company has      the right to appoint three of the five board of director members and has      control over the selection of key management  personnel. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Empire      (Tianjin) Resources Co., Ltd. (“Tianjin”) – In November 2006, the Company      and Tianjin Institute of Geology and Mineral Resources (“TIGMR”) signed a      cooperative joint venture agreement to form Tianjin. The purpose of the      joint venture is to engage in the exploration and development of gold and      other mineral products in the People’s Republic of China. The agreement      calls for a $1,000,000 total capital contribution. The Company obtained a      70% equity stake in the joint venture in exchange for $1,000,000. The      $1,000,000 contribution is required to be paid in installments after the      approval by the Chinese government. The approval and the business license      were received on April 12, 2007. The Company’s made the first two      installment payments of $200,000 on July 5, 2007 and $300,000 on September      5, 2007, and was required to make a third installment of $500,000 on or      before May 30, 2008. TIGMR was required to contribute mining licenses and      mineral data to the joint venture for the remaining 30% interest per      Amendment Number 2, by May 30, 2008. As of June 30, 2008, TIGMR had not      transferred the licenses and therefore the Company did not transfer the      third installment into Tianjin.  The Company and TIGMR are      currently negotiating an extension for the transfer of the      licenses.  The term of the joint venture is 30 years beginning      on April 12, 2007, the date the business license was issued. The Company      has consolidated the financial statements of the joint venture into the      its financial statements as the Company exercise control over the joint      venture by its 70% of ownership. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Convertible Note      Payable and Short Term Loan |
|----------------|---------------------------------------------------|

| a.           | In      February 2001, the Company executed a Promissory Note (“Note”) in the      amount of $100,000 to Jay N. Goldberg (“Holder”). See Note 3 for further      discussion on this Note. |
|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.          | On      June 25, 2007, the Company executed a Convertible Promissory Note (“Note”)      in the amount of $300,000.  The Note was payable in 90 days,      bearing a total of $26,000 interest during the term of the      Note.  The Company also incurred additional fees associated with      the Note in the amount of $34,000 and warrants to purchase 300,000 shares      of the Company’s common stock at an exercise price of $1.00 for a two-year      term. The Note is secured by 600,000 shares of the Company’s common stock,      and the Company’s interest in income generated from the operations and      sales of certain identified exploration / mining leases in Panama and      China. The Holder of the Note may at any time convert the principal amount      for shares of the Company’s common stock at a rate of $1.00 per      share.  On September 19, 2007, the Company and the Holder      executed an Amendment to the Note. Pursuant to the amended agreement, the      maturity date was extended to December 15, 2007. In addition, the warrant      granted to the holder to purchase 300,000 shares of common stock at $1.00      for a two-year term was canceled and new warrant was granted to the holder      to purchase 300,000 shares of common stock at $0.65 for a two-year term.      On December 15, 2007, the Company and the Holder executed Amendment 2 to      Convertible Promissory Note (“Amendment 2”). Pursuant to Amendment 2, the      interest rate became 9% and the maturity date was extended to May 31,      2008. Additionally, the Company issued the Holder 600,000 shares of common      stock at $0.65 per share for a two-year term. On January 28, 2008, the      Company repaid $100,000 of the principal.  On July 16, 2008, the      Company paid the full remaining principal balance of $200,000 plus an      additional amount of $69,000 and 200,000 shares of common stock, which      represented late fees pursuant to the Amendment. See Note 11 – subsequent      event for more detail. |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| c.    | On      June 26, 2007, the Company executed a Convertible Promissory Note (“Note”)      in the amount of $300,000. The Company received $150,000 which represents      the first half of the proceeds on the same date and the remaining $150,000      in July, 2007. The Note is payable in 120 days and bears a total of      $15,000 interest during the term of the Note.  The Company also      incurred additional fees associated with the Note in the amount of $15,000      and 100,000 shares of the Company’s common stock. The Note is secured by      600,000 shares of the Company’s common stock, and the Company’s interest      in income generated from the operations and sales of certain identified      exploration / mining leases in Panama and China. The Holder of the Note      may at any time convert the principal amount for shares of the Company’s      Common Stock at a rate of $1.00 per share. On October 29, 2007, the      Company repaid the entire principal in cash to the Note Holder. On October      30, 2007, the Company paid the Note Holder $15,000, which represented the      additional fees incurred in connection with the  Note. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | On      July 2, 2007, the Company executed a Convertible Promissory Note (“Note”)      in the amount of $500,000.  The Note is payable in 90 days and      bears a total of $25,000 interest during the term of the      Note.  The Company also incurred additional fees associated with      the Note in the amount of $25,000 and 100,000 shares of the Company’s      common stock.  The holder of the Note may at any time convert      the principal amount for shares of the Company’s common stock at a rate of      $1.00 per share. On July 5, 2007, the Company paid the interest and      additional fees and issued 100,000 shares of common stock to the holder      pursuant to the Note. On September 19, 2007, the Company repaid the entire      principal by issuing 1,000,000 Special Warrants to the Note      Holder. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | On      January 22, 2008, the Company executed a Convertible Promissory Note      (“Note”) in the amount of $350,000.  The note is payable in 30      days and bears interest at a rate of 6% annum.  The Company also      incurred additional fees associated with the Note in the amount of      $33,000.  The holder may at any time convert the principal      amount for shares of the Company’s common stock at a rate of $1.00 per      share.  On February 22, 2008, the Company and the Holder      executed an Amendment to the Note (“Amendment”). Pursuant to the      Amendment, the maturity date was extended to May 31 2008 (“Amended      Maturity Date”), bearing interest at a rate of 6% annum.  On      April 25, 2008, the Company and the Holder executed Amendment No. 2 to the      Note (“Amendment 2”). Pursuant to Amendment 2, the maturity date was      extended to July 31, 2008 (“Amended Maturity Date 2”), bearing interest at      a rate of 6% annum.  The Company also incurred additional fees      associated with Amendment 2 in the amount 250,000 shares of the Company’s      common stock.  On July 22, 2008, the Company paid the full      amount of principal to the Note Holder to satisfy the  Note. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| f.   | Loan      Payable – On March 10, 2008, the Company entered into a Loan Agreement in      the amount of $1,650,000 with Balstone Investments Ltd.  The      loan bears interest at a rate of 3-monthly LIBOR (approximately 4.6% at      March 10, 2008) plus 1% and is payable in full on September 11,      2008.  As security for the prompt and complete payment of the      loan, a personal guarantee was granted by the Chief Executive Officer of      the Company including a share charge over the Chief Executive Officer’s      entire shareholding in the Company. On July 28, 2008, the Company paid the      full balance of the loan and interest due to Balstone Investments      Ltd. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Total      interest expense for the above convertible notes payable and short term      loans for the three months ended June 30, 2008 and 2007, and for the six      months ended June 30, 2008 and 2007, and from inception (March 1, 2006) to      June 30, 2008 amounted to $108,608 and $0, $122,358 and $0, and $249,408,      respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Related Party      Transactions |
|----------------|---------------------------------|

| a.         | Saddle      River Associates – The Company entered into three agreements with Saddle      River Associates (SRA), a shareholder in the Company. The first      transaction dated March 26, 2006 relates to a one year Advisory Agreement      in which SRA will provide consulting services related to locating and      evaluating financing alternatives, corporate structuring and other      business issues for $15,000 per month. The agreement automatically renews      annually, unless either party gives 90 days notice to terminate. The      Company paid SRA $0 for the period ended June 30, 2008 and 2007, and for      the period from inception (March 1, 2006) through June 30, 2008, under the      terms of this agreement. On April 15, 2008 the Company canceled the      agreement. |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |       The      second agreement, an Acquisition Services Agreement, dated April 9, 2006      amended December 15, 2006 and June 1, 2007 relates to additional      consulting services whereby SRA will identify and introduce prospective      merger entities and will assist the Company with the business aspects of      the transaction.  Pursuant to this agreement, SRA introduced the      Company to Xacord; SRA had no relationship to Xacord prior to identifying      and introducing them to the Company as a potential merger partner. The      Company paid SRA $250,000 upon signing the agreement and a total of      $550,000 which represents payment in full for the services as per the      agreement. The related expense is included in the accompanying statement      of operations. The Company was also required to issue 500,000 warrants      when and if the Company obtained at least $3,000,000 in financing and for      each $1,000,000 in financing received over $3 million, the Company was to      issue an additional 100,000 warrants up to a total of 1,000,000 warrants.      The warrants were to have a 5 year life, would vest upon grant and would      be exercisable at $0.50 per share. The warrants were canceled pursuant to      Amendment Number 2, executed on June 1,2007. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| b.         | Chief      Financial Officer – The Company’s Chief Financial Officer (“CFO”) provided      consulting services to the Company prior to the merger to assist in merger      preparations at $5,000 per month on a month to month basis beginning in      November 2006 through February 21, 2007. As of April 1, 2007, the CFO      resumed providing consulting services to the Company at $8,000 per month      on a month to month basis. The services provided include the day to day      financial management of the company and any related functions related to      the financial operations of theCompany. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Euro      Centro Consulting Corp – The Company entered into 2 agreements with Euro      Centro Consulting Corp (“Euro”), as shareholder in the Company. The first      transaction dated July 15, 2007, the Company and Euro Centro Consulting      Corp (“Euro”), a shareholder of the Company entered into a consulting      agreement. Pursuant to the agreement, the Company received a one-time      referral services from Euro in exchange for a cash fee of $50,000 and      100,000 shares of common stock. The shares were valued at $0.50 per share,      for a total amount of $50,000, which was expensed as of December 31,      2007. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | Shareholders’      equity |
|----------------|---------------------------------|

| a.   | Effective      August 11, 2006, the Company amended the Articles of Incorporation as      follows: Each twenty (20) shares of Common Stock then issued was      automatically combined into one share of Common Stock of the Company      (“20-1 reverse split”).  No fractional shares or scrip      representing fractions of a share were issued, but in lieu thereof, each      fraction of a share that any stockholder would otherwise be entitled to      receive was rounded up to the nearest whole share.  As a result      of the 20 to 1 reverse split, the issued number of shares of Common Stock      was reduced by 88,377,055, from 93,028,479 shares of Common Stock issued      prior to the 20-1 reverse split to 4,651,424 shares of Common Stock issued      subsequent to the 20-1 reverse split.  The rounding of      fractional shares to the nearest whole share resulted in an additional 661      shares being issued to stockholders who would have been entitled to      receive a fraction of a share.  The total number of shares of      Common Stock issued after the issuance of the rounding of fractional      shares was 4,652,085. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| b.   | Effective      January 22, 2007, the Company amended the Articles of Incorporation as      follows: Each twenty (20) shares of Common Stock then issued was      automatically combined into one share of Common Stock of the Company      (“20-1 reverse split”). No fractional shares or scrip representing      fractions of a share were issued, but in lieu thereof, each fraction of a      share that any stockholder would otherwise be entitled to receive was      rounded up to the nearest whole share.  As a result of the 20 to      1 reverse split, the issued number of shares of Common Stock was reduced      by 4,419,481, from 4,652,085 to 232,604 shares of Common Stock. The      rounding of fractional shares to the nearest whole share resulted in an      additional 248 shares being issued to stockholders who would have been      entitled to receive a fraction of a share.  The total number of      shares of Common Stock issued after the issuance of the rounding of      fractional shares was 232,852. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | On      February 20, 2007, the Company issued 26,504,000 shares of its common      stock for 26,504,000 shares of common stock, representing all of the      outstanding stock of its subsidiary pursuant to the triangular merger      accounted for as a reverse merger and recapitalization. Additionally, all      warrants issued by the subsidiary and outstanding at the date of the mere      were exchanged for warrants in the Company.  Prior to the      merger, the Subsidiary had entered into several agreements which accounted      for the shares of common stockoutstanding: |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       (1) | Upon      the formation of the Subsidiary, the founding shareholders received      6,460,000 shares of common stock for $6,460. During the quarter ended      March 31, 2008, the Company received $4,900 as payment for the shares.      Therefore, subscriptions receivable totaled $1,560 at June 30,      2008. |
|-----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  (2) | On      March 29, 2006, the Subsidiary issued managements and key consultants      8,500,000 shares for services valued at $76,500 and cash $8,500, totaling      $0.01 per share. As of March 31, 2007, the Subsidiary received $8,500 in      cash for payment. The Subsidiary recorded $76,500 of consulting expense      during the year ended December 31, 2006.  Additionally, the      Subsidiary issued warrants to purchase up to a total of 5,970,000 to      management and consultants. The warrants were vested upon grant, have a 3      year life, and are exercisable at $0.10 per share. Warrants to purchase up      to 3,500,000 shares of common stock issued to management contained a      cashless exercise provision. The eight warrants were valued at $197,587      using the Black-Scholes Option Pricing Model, using a volatility rate of      62% based on the volatility of a publicly traded exploration stage company      in a similar stage of development, and a risk free rate of 4.79%. The      Subsidiary recognized $197,587 of compensation expense during the year      ended December 31, 2006.  As of June 30, 2008, four warrants      with options to purchase a total of 450,000 were exercised for      cash.  The Subsidiary received $45,000 in cash for the exercise      of the four warrants.  Two warrants with options to purchase a      total of up to 2,000,000 were exercised utilizing the cashless exercise      provision. A total of 1,600,000 shares of common stock were issued to      management in the transaction. Two warrants to purchase a total of up to      3,500,000 shares of common stock were canceled pursuant to an Agreement      for Cancellation of Warrants entered into by and between the      parties. |
|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                       (3)  | During      the period from April 2006 through February 19, 2007, the Subsidiary sold      7,499,000 shares of common stock at a price of $0.50 per share for cash      totaling $3,749,500. |
|-----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                       (4) | During      the period from January 2007 to December 2007, the Subsidiary issued      2,299,000 shares of its common stock to various individuals and entities      in exchange for consulting services to the Subsidiary. The Company      recorded consulting expenses in the amount of $1,079,979 in the      accompanying statement of operations and $69,521 prepaid for consulting      services. |
|-----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  (5)  | On      February 19, 2007, the Subsidiary issued to its President and Chief      Executive Officer, 1,500,000 shares of common stock as a bonus for his      services to the Subsidiary and as incentive compensation for future      services.  The Company recorded consulting expenses in the      amount of $750,000 in the accompanying statement of      operations. |
|-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | On      March 9, 2007, the Company issued 4,000,000 shares of Common Stock to      Bellhaven Gold & Copper, Inc. (“Bellhaven”) as part of an Exploration      Development Agreement entered into by and between the Company, Bellhaven      and its wholly owned subsidiary, Cuprum Resources Corp (“Cuprum”)      (“agreement”).  The agreement grants the Company an option to      acquire up to 75% of the authorized and outstanding stock of Cuprum, the      holder of a Mineral Concession from the Republic of Panama on a copper      prospect located in the Republic of Panama.  The agreement calls      for the Company to pay Cuprum or Bellhaven $2,000,000 in annual      installments of $500,000 each, issue Bellhaven shares of the Company’s      common stock as valued under an escrow agreement with a total value of      $4,000,000 and expend $15,000,000 in exploration and development work on      the copper prospect underlying Cuprum’s Mineral Concession. As per the      agreement, the Company has delivered a certificate in the amount of      2,666,667 shares of common stock to Bellhaven and deposited 1,333,333      shares of its common stock into escrow. The Company has recorded      $1,333,334 as investment on the accompanying balance  sheet. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | On      April 1, 2007, the Company issued 7,925,000 shares of Common Stock to West      Greenwood Foundation (“WGF”) and various entities and individuals      (“designees”), pursuant to the conversion of the Convertible Promissory      Note executed by the Company in February 2001 (“Note”).  See      Note 3 for further discussion on this stock  issuance. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f.   | On      May 4, 2007, the Company completed a Private Placement to sell 4,000,000      shares of Common Stock at a price of $0.50 per share for cash totaling      $2,000,000. The transaction was completed in the form of a Restricted      Equity Purchase Agreement and called for the Company to deposit the Stock      Certificate representing the sold shares with a Custodial Bank selected by      the purchaser.  The closing date of the transaction was      scheduled for 30 days from the date of the deposit of the Stock      Certificate with the Custodial Bank. The agreement has since been canceled      and the shares have been recalled from the Custodial  Bank. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| g.   | On      June 18, 2007, the Company and the Chief Financial Officer (“CFO”) entered      into a Stock Repurchase Agreement in which the Company repurchased from      the CFO, 100 shares of the Company’s outstanding Series I Preferred Stock      (“Preferred Shares”) held by the CFO.  The Preferred Shares were      repurchased by the Company from the CFO for $10,000. The Preferred Shares      repurchased represented the total amount of Preferred Stock issued and      outstanding. Subsequent to the repurchase of the Preferred Shares, the      Company filed a Certificate of Designation with the State of Delaware and      canceled the Series I PreferredStock. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| h.   | On      June 26, 2007, the Company issued 100,000 shares of common stock as a form      of payment for additional fees directly related to a Convertible      Promissory Note (see Note 6c). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | On      July 2, 2007, the Company issued 100,000 shares of common stock as a form      of payment for additional fees directly related to a Convertible      Promissory Note (see Note 6d). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| j.   | On      July 31, 2007, the Company completed a Private Placement to sell 1,000,000      shares of Common Stock at a price of $0.50 per share for cash totaling      $500,000.  The transaction was completed in the form of a      Subscription Agreement and called for the Company to issue warrants to      purchase 1,000,000 shares of common stock at $1.00 per share for a 2 year      term. Pursuant to the agreement, the Company is required to file a      registration statement within 150 days and it be declared effective within      210 days.  As of June 30, 2008, the Company has not filed the      registration statement and has accrued $30,000 in liquidated damages which      were expensed during the currentperiod. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k.   | From      August 2007 to October 2007, the Company sold a total of 320,000 shares of      common stock in the form of Subscription Agreements at $.50 per      share.  The total proceeds to the Company for the sale of the      shares were $160,000. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l.   | On      December 15, 2007, the Company issued 600,000 shares of common stock as a      form of payment for additional fees directly related to a Convertible      Promissory Note (see Note 6b). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| m.   | In      December 2007, the Company issued 100 shares of preferred stock at par      value of $0.0001 to the Company’s CEO Mr. Pinchas Althaus for compensation      and expensed $10,000.  The value of the preferred stock was      determined by the recent buy-back from the Company’s CFO at $100 per      share. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| n.   | On      April 18, 2008, the Company agreed to issue 4,550,000 shares of common      stock to its directors in consideration of their past      services.  The Company recorded directors’ compensation expenses      in the amount of $2,275,000 in the accompanying statement of      operations. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o.   | On      April 25, 2008, the Company agreed to issue 250,000 shares of common stock      as a form of payment for additional fees directly related to a Convertible      Promissory Note (see Note 6e). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Expected      Life |   | Expected      Volatility |   |   | Dividend      Yield |   |   | Risk      Free Interest      Rate |   |   | Grant      Date Fair      Value |   |
|--------------------|--------|--------------------------|--------|--------|---------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------|--------|
| 2 years       |   |                     | 48.69  | %      |                |   | -      |                              |   |   | 4.78                            | %      |   | $ | 31,641 |   |

----

|                              |   |           |       |   |           |   |       | Weighted- |   |   |                  |   |
|-----------------------------------|--------|----------------|------------|--------|----------------|--------|------------|-----------|--------|--------|-----------------------|--------|
|                              |   | Number      of |       |   | Number      of |   |       | Average   |   |   | Average               |   |
|                              |   | Warrants       |       |   | Warrants       |   |       | Exercise  |   |   | Remaining             |   |
|                              |   | Outstanding    |       |   | Exercisable    |   |       | Price     |   |   | Contractual      Life |   |
| Balance      at December 31, 2006 |   |           | 5,950,000  |   |           |   | 5,950,000  |      |   | $      | 0.10                  |   |   | 2.75      years |   |
| Granted                           |   |           | 300,000    |   |           |   | 300,000    |      |   |   | 1.00                  |   |   | 2.00      years |   |
| Forfeited                         |   |           | (5,500,000 | )      |           |   | (5,500,000 | )         |   |   | -                     |   |   |   |   |
| Exercised                         |   |           | (450,000   | )      |           |   | (450,000   | )         |   |   | 0.10                  |   |   |   |   |
| Balance      at June 30, 2007     |   |           | 300,000    |   |           |   | 300,000    |      |   | $      | 1.00                  |   |   | 2.00      years |   |
| Granted,                          |   |           | 5,760,000  |   |           |   | -          |      |   |   | 0.51                  |   |   | 2      years |   |
| Forfeited                         |   |           | -          |   |           |   | -          |      |   |   | -                     |   |   |   | - |   |
| Exercised                         |   |           | -          |   |           |   | -          |      |   |   | -                     |   |   |   | - |   |
| Balance      at December 31, 2007 |   |           | 6,060,000  |   |           |   | 600,000    |      |   | $      | 0.58                  |   |   | 1.63      years |   |
| Granted                           |   |           | 155,000    |   |           |   | -          |      |   |   | -                     |   |   | 2.75      years |   |
| Forfeited                         |   |           | -          |   |           |   | -          |      |   |   | -                     |   |   |   |   |   |
| Exercised                         |   |           | -          |   |           |   | -          |      |   |   | -                     |   |   |   |   |   |
| Balance      at June 30, 2008     |   |           | 6,215,000  |   |           |   | 600,000    |      |   | $      | 0.58                  |   |   | 1.15      years |   |

|                        | Expected      Life |   | Expected      Volatility |   |   | Dividend      Yield |   |   | Risk      Free Interest      Rate |   |   | Grant      Date Fair      Value |   |
|-----------------------------|--------------------|--------|--------------------------|--------|--------|---------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------|--------|
| Employees      – 2007 | 5.0      years     |   |                     | 61     | %      |                |   | 0      | %                                 |   |   | 3.52                            | %      |   |   | 8,100,000 |   |

----

|                                     |   | Options      Outstanding |      |   | Weighted      Average Exercise      Price |   |   | Aggregate      Intrinsic Value |   |
|------------------------------------------|--------|--------------------------|-----------|--------|-------------------------------------------|--------|--------|--------------------------------|--------|
| Outstanding      as of December 31, 2006 |   |                     | -         |   |                                      | $      | -      |                           |   | $ | - |   |
|    Granted                |   |                     | -         |   |                                      |   | -      |                           |   |   | - |   |
|    Forfeited              |   |                     | -         |   |                                      |   | -      |                           |   |   | - |   |
|    Exercised              |   |                     | -         |   |                                      |   | -      |                           |   |   | - |   |
| Outstanding      as of June 30, 2007     |   |                     | -         |   |                                      | $      | -      |                           |   | $ | - |   |
|    Granted                |   |                     | 5,400,000 |   |                                      |   | 0.5    |                           |   |   | - |   |
|    Forfeited              |   |                     | -         |   |                                      |   | -      |                           |   |   | - |   |
|    Exercised              |   |                     | -         |   |                                      |   | -      |                           |   |   | - |   |
| Outstanding      as of December 31, 2007 |   |                     | 5,400,000 |   |                                      | $      | 0.5    |                           |   | $ | - |   |
|    Granted                |   |                     | 200,000   |   |                                      |   | 0.5    |                           |   |   | - |   |
|    Forfeited              |   |                     | -         |   |                                      |   | -      |                           |   |   | - |   |
|    Exercised              |   |                     | -         |   |                                      |   | -      |                           |   |   | - |   |
| Outstanding      as of June 30, 2008     |   |                     | 5,600,000 |   |                                      | $      | 0.5    |                           |   | $ | - |   |

| 9.   | Income      Taxes |
|----------------|-------------------|

|   | Deferred      income taxes reflect the net tax effects of temporary differences between      the carrying amounts of assets and liabilities for financial statement      purposes and the amounts used for income tax      purposes.  Significant components of the Company’s deferred tax      assets and liabilities at June 30, 2008 are as  follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Net      operating loss for the six months ended June 30, 2008                                           |   | $      | 4,973,753  |   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|
| Effective      income tax rate                                                                           |   |   | 40         | %      |   |
|          Total      deferred tax assets                     |   |   | 1,989,501  |   |   |
| Less:      valuation allowance                                                                           |   |   | (1,989,501 | )      |   |
|          Total      deferred tax assets as of June 30, 2008 |   | $      | --         |   |   |

| Net      operating loss for the six months ended June 30, 2007,      Restated        |   | $      | 5,012,167  |   |   |
|--------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|
| Effective      income tax rate                                                       |   |   | 40         | %      |   |
|          Total      deferred tax assets |   |   | 2,004,867  |   |   |
| Less:      valuation allowance                                                       |   |   | (2,004,867 | )      |   |
| Total      deferred tax assets as of June 30, 2007                                   |   | $      | -          |   |   |

----

| Net      operating loss from inception (March 1, 2006) to June 30, 2008,      Restated                                                     |   | $      | 15,091,281 |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|
| Effective      income tax rate                                                                                                             |   |   | 40         | %      |   |
|                   Total      deferred tax assets |   |   | 6,036,512  |   |   |
| Less:      valuation allowance                                                                                                             |   |   | (6,036,512 | )      |   |
|          Total      deferred tax assets as of June 30, 2008                                   |   | $      | -          |   |   |

| Federal      income tax rate           |   |   | 34  | %        |
|----------------------------------------|--------|--------|-----|----------|
| State      tax, net of federal benefit |   |   | 6   | %        |
| Increase      in valuation allowance   |   |   | (40 | )      % |
| Effective      income tax rate         |   |   | -   | %        |

|   | The      deferred tax assets result from net operating loss carry-forwards. These      assets will therefore reverse either upon their utilization against      taxable income or upon their statutory expiration. Net operating loss      carry-forwards will expire beginning in 2020 through  2028. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Commitments –      The Company and its Subsidiary entered into various agreements during the      period beginning March 2006 (Subsidiary’s inception date) and ending June      30, 2008.  These include: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Empire      (Tianjin) Resources Co., Ltd. – The Company is to pay $500,000 on or      before May 31, 2008 to Tianjin pursuant to the cooperative joint venture      agreement.  (See Note 5).  The Company is currently      negotiating an extension for thepayment. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Employment      Agreements – On April 12, 2006, the Company entered into employment      agreements with its Chief Executive Officer and its Vice President of      Exploration. The agreements have a term of 2 years and are automatically      renewed for 2 year terms unless the Company or the employee gives 90 days      prior written notice to terminate the agreement. On December 1, 2007, the      Company entered into a new employment agreement with its Chief Executive      Officer and its Chief Financial Officer. The agreements have terms of 5      years and 3 years, respectively. The agreements are automatically renewed      for 1 year terms unless the Company or Executive gives 90 days prior      written notice to terminate theagreement. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Office      Lease – The Company is subject to a six month license agreement dated      February 14, 2008 for office space requiring monthly payments of $6,450.      The agreement expires August 31, 2008 and is automatically renewed for an      additional six month term unless the Company gives written notice of      cancellation on or before June 1, 2008.  The Company did not      provide written notice prior to June 1, 2008, therefore, the agreement has      been automatically renewed for an additional six month period or through      February 28, 2009. The Company leased additional space at another      location.  The additional space is leased on a month to month      basis at a rate of $1,445 permonth. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d.  | Cuprum      Resources Corp. – In March 2007, the Company, Bellhaven Copper & Gold,      Inc. (“Bellhaven”) and Cuprum Resources Corp (“Cuprum) entered into an      Exploration Development Agreement (“agreement”).  The agreement      requires the Company over the next three years to issue 4 million shares      of the Company’s common stock and make cash payments in the amount of      $17,000,000.  At June 30, 2008, the Company released 2,666,667      shares of its common stock from escrow and made cash payments of      $3,309,927.  |
|--------|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | Commitments are summarized as      below: |
|--------------|-------------------------------------------|

| Period      ending December 31, |   |   |      |   |
|---------------------------------|--------|--------|-----------|--------|
| 2008                            |   | $      | 7,005,000 |   |   |
| 2009                            |   |   | 7,166,666 |   |   |
| 2010      and thereafter        |   |   | 500,000   |   |   |

| 11.   | Subsequent      Events |
|-----------------|------------------------|

| a.           | On      July 10, 2008, pursuant to a binding term sheet, the Company agreed to      issue 21,840,000 shares of common stock and warrants to purchase up to      10,920,000 shares of common stock at an exercise price of $0.46 per share      and additional warrants to purchase up to 3,283,000 shares of common stock      at an exercise price of $0.50 per share for $10,046,400 payable in two      tranches, with the first tranche of 85% of the gross proceeds due July 15,      2008 and with the balance due October 13, 2008.  The Company      received the first tranche totaling $8,539,440 and issued 18,564,000      shares of common stock to the investors;  no warrants were      issued with this tranche. The Company and the investors are finalizing the      terms of the agreements related to this      transaction.   |
|----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.          | On      July 11, 2008, the Company granted a warrant to purchase up to 1,200,000      shares of common stock to Excellion Advisors LLP as compensation for the      services rendered in connection with the private placement consummated on      July 10, 2008. |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.          | On      July 11, 2008, the Company entered into a consulting agreement with Muscat      Consulting for services directly related with the private placement      consummated on July 10, 2008.  Pursuant to the agreement, the      Company issued 650,000 shares of common stock to Muscat      Consulting. |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.          | On      July 16, 2008, the Company paid the full remaining principal balance of      $200,000 plus an additional amount of $69,000 and 200,000 shares of common      stock, which represented late fees pursuant to the Amendment. For details      of the loan, refer to note 6b. |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (A) | The      Company acquired all of the outstanding stock of the Nevada      Subsidiary; |
|-----|---------------------------------------------------------------------------------------|

| (B) | A      Nevada corporation named Xacord Acquisitions Sub Corp. formed and wholly      owned by the Company to be used as a vehicle for the transaction was      merged into the Nevada Subsidiary; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (C) | The      outstanding shares of the common stock of the Nevada Subsidiary as of the      Effective Time of the merger were converted into shares of the common      stock of the Company on a share for share basis with a total of 26,504,000      shares of the Company's stock issued in this  conversion; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (D) | The      Company assumed four warrants issued by the Nevada Subsidiary to purchase      up to a total of 4,500,000 shares of the Company's Common Stock at $0.10      per share during a three year term. These warrants were held as follows:      (i) a warrant for 2,000,000 shares was held by Saddle River Associates,      Inc., a financial and business consultant to the Company; (ii) an      additional warrant for 500,000 shares was held by Saddle River Associates,      Inc.; (iii) a warrant for 1,500,000 shares was held by Pinchas Althaus,      President and a director of the Company; and (iv) a warrant for 50,000      shares was held by Chaya Schreiber, a former shareholder of the Nevada      Subsidiary. The warrant to purchase 50,000 shares was exercised on March      2, 2007. The remaining three warrants for 4,000,000 were canceled by      mutual agreement of the parties on June 1,2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 Nevada Subsidiary.Messrs. Althaus, Roca and Minsky became the three directors and three of theofficers of the Company and the Nevada Subsidiary upon completion of thebusiness combination.

----

 company named Empire (Tianjin) Resources Co., Ltd. This entitywas formed to acquire mineral interests in and explore, develop and, ifwarranted, conduct mining operations on mineral properties located in the InnerMongolian Autonomous Region of Tianjin Province in the Peoples Republic ofChina. The Nevada Subsidiary holds a 70% interest in this entity subject tofuture adjustment to reflect the parties' respective capitalcontributions.

----

|   | ● | Supervising,      and if necessary providing or procuring additional financing for, the      operations of the two Chinese JointVentures; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Acquiring      the majority interest in the Panamanian corporation holding the mineral      concession and providing financing for and supervising its      operations; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Exploring      and evaluating additional mineral and natural resource acquisitions;      and |
|--------|---------|----------------------------------------------------------------------------------------------|

|   | ● | Seeking      the necessary additional capital to finance  activities. |
|--------|---------|-----------------------------------------------------------------------|

----

|                                          |   | For      the three months ended |      |   | For      the three months ended |   |
|-----------------------------------------------|--------|---------------------------------|-----------|--------|---------------------------------|--------|
|                                          |   | June      30, 2008              |      |   | June      30, 2007              |   |
|                                          |   |                            |      |   | Restated                        |   |
| REVENUE                                       |   |                            | -         |   |                            | Nil    |   |   |   | - |   |   | Nil |   |
| EXPENSES                                      |   |                            |      |   |                            |   |   |   |   |   |   |   |   |   |
|                                          |   |                            |      |   |                            |   |   |   |   |   |   |   |   |   |
| Research      & development               |   | $                               | 57,747    |   |                            |   | 1.81 | % |   | $ | 76,776 |   |   |   | 2.93 | % |
|                                          |   |                            |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Consulting      fees                          |   |                            | 112,537   |   |                            |   | 3.52 | % |   |   | 116,300 |   |   |   | 4.44 | % |
| Professional      fees                        |   |                            | 49,734    |   |                            |   | 1.56 | % |   |   | 70,050 |   |   |   | 2.67 | % |
| Other      employee compensation              |   |                            | 16,172    |   |                            |   | 0.51 | % |   |   | - |   |   | Nil |   |
| Directors      compensation                   |   |                            | 2,275,000 |   |                            |   | 71.24 | % |   |   | - |   |   | Nil |   |
| General      & administrative             |   |                            | 312,909   |   |                            |   | 9.80 | % |   |   | 159,135 |   |   |   | 6.08 | % |
| Loss      from expected services not received |   |                            | -         |   |                            | Nil    |   |   |   | 2,205,492 |   |   |   | 84.21 | % |
| Liquidated      damage expense                |   |                            | 84,225    |   |                            |   | 2.64 | % |   |   | - |   |   | Nil |   |
| Depreciation                                  |   |                            | 2,883     |   |                            |   | 0.09 | % |   |   | 4,636 |   |   |   | 0.18 | % |
|                                          |   |                            |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      EXPENSES                           |   | $                               | 2,911,207 |   |                            |   | 91.42 | % |   | $ | 2,632,389 |   |   |   | 100.51 | % |
| LOSS      BEFORE OTHER ITEM                   |   |                            |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Other      expense (income)                   |   |                            | 280,941   |   |                            |   | 8.82 | % |   |   | (12,112 | ) |   |   | -0.46 | % |
| Other      comprehensive loss (income)        |   |                            | (7,591    | )      |                            |   | 0.24 | % |   |   | (1,338 | ) |   |   | -0.05 | % |
| LOSS      BEFORE INCOME TAXES                 |   |                            | 3,192,148 |   |                            |   | 100.00 | % |   |   | 2,620,277 |   |   |   | 100.00 | % |
| Income      tax benefit (expense)             |   |                            | -         |   |                            | Nil    |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      LOSS                       |   | $                               | 3,184,557 |   |                            |   | 100.00 | % |   | $ | 2,618,939 |   |   |   | 100.00 | % |

----

|                                          |   | For      the six months ended |      |   | For      the six months ended |   |
|-----------------------------------------------|--------|-------------------------------|-----------|--------|-------------------------------|--------|
|                                          |   | June      30, 2008            |      |   | June      30, 2007            |   |
|                                          |   |                          |      |   | Restated                      |   |
| REVENUE                                       |   |                          | -         |   |                          | Nil    |   |   |   | - |   |   | Nil |   |
| EXPENSES                                      |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |
|                                          |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |
| Research      & development               |   | $                             | 104,336   |   |                          |   | 2.11 | % |   | $ | 275,735 |   |   |   | 5.51 | % |
|                                          |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Consulting      fees                          |   |                          | 281,925   |   |                          |   | 5.69 | % |   |   | 2,022,442 |   |   |   | 40.39 | % |
| Professional      fees                        |   |                          | 123,717   |   |                          |   | 2.50 | % |   |   | 159,860 |   |   |   | 3.19 | % |
| Other      employee compensation              |   |                          | 947,536   |   |                          |   | 19.14 | % |   |   | - |   |   | Nil |   |
| Directors      compensation                   |   |                          | 2,275,000 |   |                          |   | 45.95 | % |   |   | - |   |   | Nil |   |
| General      & administrative             |   |                          | 499,319   |   |                          |   | 10.08 | % |   |   | 358,473 |   |   |   | 7.16 | % |
| Loss      from expected services not received |   |                          | -         |   |                          | Nil    |   |   |   | 2,205,492 |   |   |   | 44.05 | % |
| Liquidated      damage expense                |   |                          | 196,050   |   |                          |   | 3.96 | % |   |   | - |   |   | Nil |   |
| Depreciation                                  |   |                          | 5,552     |   |                          |   | 0.11 | % |   |   | 4,636 |   |   |   | 0.09 | % |
|                                          |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL      EXPENSES                           |   | $                             | 4,443,435 |   |                          |   | 89.70 | % |   | $ | 5,026,638 |   |   |   | 100.40 | % |
|                                          |   |                          |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Other      expense (income)                   |   |                          | 540,318   |   |                          |   | 10.93 | % |   |   | (14,471 | ) |   |   | -0.29 | % |
| LOSS      BEFORE INCOME TAXES                 |   |                          | 4,942,420 |   |                          |   | 100.00 | % |   |   | 5,012,167 |   |   |   | 100.00 | % |
| Income      tax benefit (expense)             |   |                          | -         |   |                          | Nil    |   |   |   |   |   |   |   |   |   |
| Other      comprehensive loss (income)        |   |                          | (31,333   | )      |                          | -0.63  | % |   |   | (5,413 | ) |   |   | -0.11 | % |
| COMPREHENSIVE      LOSS                       |   | $                             | 4,942,420 |   |                          |   | 100.00 | % |   | $ | 5,006,754 |   |   |   | 100.00 | % |

----

----

|   | ● | Required      work expenditure by March 7, 2009; $9,000,000 of which $3,375,960 has been      paid. The exploration and development plan for Phase 1 was completed as of      March 6, 2008; a work plan for the period of March 7, 2008 to March 7,      2009 has been formulated and approved jointly by Bellhaven Copper and      Gold, Inc. and us. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Annual      payment: $500,000 due March 7, 2008 was paid on March 14, 2008; $500,000      due March 7, 2009. |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

----

|   | ● | Joint      Venture Contribution (Installments 1 and 2): $500,000; due September 2007,      paid September 2007; Joint Venture Contribution (Installment 3) due May      31, 2008; we are currently negotiating an amendment to the Joint Venture      agreement with our Joint Venture Partner in order to obtain an extension      for the payment of our Joint Venture  contribution. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Exhibit      No. |   | Description      of Exhibits                                                                             |
|------------------|--------|----------------------------------------------------------------------------------------------------------|
| 3.1              |   | Amendment      2 to Convertible Promissory Note*                                                         |
|             |   |                                                                                                     |
| 31.1             |   | Officers      Certifications under Section 302 of the Sarbanes-Oxley Act of      2002*                   |
|             |   |                                                                                                     |
| 31.2             |   | Officers      Certifications under Section 302 of the Sarbanes-Oxley Act of      2002*                   |
|             |   |                                                                                                     |
| 32.1             |   | Certification      of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of      2002.* |

----

|   |                 |   | DOMINION      MINERALS CORP. |                                           |
|--------|----------------------|--------|------------------------------|------------------------------------------------|
|   |                 |   |                         |                                           |   |
|   |                 |   |                         |                                           |   |
|   |                 |   |                         |                                           |   |
| Date:  | August      14, 2008 |   | By:                          | /s/ Pinchas      Althaus                  |   |
|   |                 |   |                         | PINCHAS      ALTHAUS                           |   |
|   |                 |   |                         | Chief      Executive Officer                   |   |
|   |                 |   |                         |                                           |   |
|   |                 |   |                         |                                           |   |
| Date:  | August      14, 2008 |   | By:                          | /s/ Diego      Roca                       |   |
|   |                 |   |                         | DIEGO      ROCA                                |   |
|   |                 |   |                         | Executive      Vice President, Chief Financial |   |
|   |                 |   |                         | Officer      and Treasurer                     |   |