| DELAWARE                                                                      |   | 51-0392750                                       |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (IRS                Employer Identification No.) |

----

----

| **River                  Capital Group, Inc. and Subsidiary**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                    |                                                                        |   |                                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|-----------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
| **Balance                  Sheet**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                    |                                                                        |   |                                                                                                                                       |
| **                                                                                                                       (Unaudited)** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       | September                  30, 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
| ** ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                    |                                                                        |   |                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Cash                                                              |                                                                        |   |                       95,016 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Other                  current assets                             |                                                                        |   |                       28,290 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |  Total                  current assets                                 |   |                                                                                                                                       |                     123,306 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Total                  assets                                     |                                                                        |   |                     123,306            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
| ** LIABILITIES                  AND STOCKHOLDERS' DEFICIT**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                    |                                                                        |   |                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Accounts                  payable and accrued expenses            |                                                                        |   |                       46,127 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Accounts                  payable to related parties              |                                                                        |   |                     115,868            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |  Total                  current liabilities                            |   |                                                                                                                                       |                     161,995 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|  Stockholders'                  deficit:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                    |                                                                        |   |                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Common                  stock, $.001 par value, 50,000,000 shares |                                                                        |   |                                                                                                                                       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |  authorized:                  38,552,749 shares issued and outstanding |   |                                                                                                                                       |                       38,552 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Additional                  paid-in capital                       |                                                                        |   |                  2,397,193                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Retained                  deficit                                 |                                                                        |   |                 (2,474,434)                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |  Total                  stockholders' deficit                          |   |                                                                                                                                       |                      (38,689) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                    |                                                                        |   |                                                                                                                                       |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  Total                  liablities and stockholders' deficit       |                                                                        |   |                     123,306            |   |

----

| ** River                  Capital Group, Inc. and Subsidiary**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** Statements                  of Operations**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |
| **                                                                                                      (Unaudited)** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |  For                  the nine                                                                                                                     |   |  For                  the nine |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |  months                  ended                                                                                                                     |   |  months                  ended |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |  September                  30,                                                                                                                    |   |  September                  30, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    | 2007                                                                                                                                                    |   | 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|  Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                      |  $                      - |                                                                                                                    |  $                      -            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |  Total                  revenue                                                                                                         |                                                                                                                    |                          - |   |                          - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|  Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  Selling                  general and administrative |                                                                                                                                         |              276,970                                   |                                                                                                                                                    |              550,600 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |  Total                  operating expenses                                                                                              |                                                                                                                    |              276,970                                                                   |   |              550,600 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |   Total                  operating loss                                                                                            |                                                                                                                    |             (276,970)                                                                       |   |             (550,600) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|   Other                  income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  Interest                  income                    |                                                                                                                                         |                  2,148             |                                                                                                                                                    |                     905 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  Other                  income                       |                                                                                                                                         |              130,000                                   |                                                                                                                                                    |                          - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  Interest                  expense                   |                                                                                                                                         |                    (322) |                                                                                                                                                    |             (126,998) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |              131,826                                                                   |   |             (126,093) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|  Net                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                      |  $         (145,144)                                                                       |                                                                                                                    |  $         (676,693)                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|  Net                  loss per share - basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                      |  $               (0.00)                                      |                                                                                                                    |  $               (0.03)                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|  Weighted                  average shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |         38,517,381                                                                                   |                                                                                                                    |         25,934,665                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      |                                                                                                                                         |                                                                                                                    |                                                                                                                                                    |   |   |
| The                  accompanying notes are an integral part of these financial                  statements.                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                      |

----

| ** River                    Capital Group, Inc. and Subsidiary**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** Statements                    of Operations**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |
| **                                                                                                        (Unaudited)** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |  For                    the three                                                                                                                  |   |  For                    the three |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |  months                    ended                                                                                                                   |   |  months                    ended |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |  September                    30,                                                                                                                  |   |  September                    30, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    | 2007                                                                                                                                                    |   | 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|  Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                        |  $                      - |                                                                                                                                                    |  $                      -            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |  Total                    revenue                                                                                                       |                                                                                                                                                    |                          - |   |                          - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|  Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  Selling                    general and administrative |                                                                                                                                         |                54,793                                                        |                                                                                                                                                    |              115,748 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |  Total                    operating expenses                                                                                            |                                                                                                                                                    |                54,793                                                        |   |              115,748 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |   Total                    operating loss                                                                                          |                                                                                                                                                    |               (54,793)                                                            |   |             (115,748) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|   Other                    income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  Interest                    income                    |                                                                                                                                         |                       10                  |                                                                                                                                                    |                     905 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  Other                    income                       |                                                                                                                                         |              130,000                                                                   |                                                                                                                                                    |                          - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  Interest                    expense                   |                                                                                                                                         |                          - |                                                                                                                                                    |               (97,448) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |              130,010                                                                   |   |               (96,543) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|  Net                    income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                        |  $            75,217                                                        |                                                                                                                                                    |  $         (212,291)                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|  Net                    income (loss) per share - basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                        |  $                0.00                                  |                                                                                                                                                    |  $               (0.01)                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|  Weighted                    average shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                        |         38,552,749                                                                                   |                                                                                                                                                    |         26,704,275                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                        |                                                                                                                                         |                                                                                                                                                    |                                                                                                                                                    |   |   |
| The                    accompanying notes are an integral part of these financial                    statements.                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                        |

----

| ** River                    Capital Group, Inc. and Subsidiary**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** Statements                    of Cash Flows**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |
| **                                                                                                                   (Unaudited)** |                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |  For                    the nine |   |  For                    the nine |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |  months                    ended |   |  months                    ended |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |  September                    30, |   |  September                    30, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          | 2007 |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|  Cash                    flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |
|     Net                    loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                   |  $          (145,144) |                                                                                                                                                          |  $          (676,693)                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  Adjustments                    to reconcile net loss to net      |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |
|        used                    in operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  cash                    provided (used) by operating activities: |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |  Stock                    given for compensation                        |                  24,050                                                  |                                                                                                                                                          |                256,250 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |  Discount                    on convertible notes                       |                           - |                                                                                                                                                          |                106,498 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |  Changes                    in operating assets and liabilities:        |                                                                                                                                                          |                                                                                                                                                          |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |  (Increase)                    decrease in other current assets                                                                                          |                (25,050)                                                            |   |                           - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |  Increase                    (decrease) in accounts payable                                                                                              |                    8,822                                       |   |                  41,536 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |  Increase                    (decrease) in accounts payable to related parties                                                                           |                (31,465)                                                            |   |                    9,929 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |   Total                    adjustments                                                                                                              |                (23,643)                                                            |   |                414,213 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |  Net                    cash used by operations                                                                                                          |              (168,787)                                                                       |   |              (262,480) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|  Cash                    flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |  Proceeds                    from convertible notes                                                                                                      |                           - |   |                300,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |      Net                    cash provided by financing activities                                                                    |  $                       -            |   |  $            300,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |         Net                    increase (decrease) in cash                                                            |              (168,787)                                                                       |   |                  37,520 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |         Cash                    at beginning of period                                                                |                263,803                                                             |   |                261,001 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |         Cash                    at end of period                                                                      |  $              95,016                                                             |   |  $            298,521 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|  Supplemental                    disclosure of cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |  Cash                    paid during the period for:                                                                                                     |                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |         Interest                                                                                                      |  $                       -            |   |  $                       - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |         Income                    taxes                                                                               |  $                       -            |   |  $                       - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                   |                                                                         |                                                                                                                                                          |                                                                                                                                                          |   |   |   |   |
|  The                    accompanying notes are an integral part of these financial                    statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                   |                                                                         |                                                                                                                                                          |

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|                                                         | Nine                Months ended September 30, 2007                                               | Nine                Months ended September 30, 2006                 |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|
| Income                tax loss at federal statutory tax rate | -34.00%                                                                                           | -34.00%                                                             |
| State                tax, net of federal benefit             | -3.63%                                                                                            | -3.63%                                                              |
| Valuation                allowance                           | 37.63%                                                                                            | 37.63%                                                              |
| Provision                for taxes                           |                 - |            - |

|                                   | September                30,2007                                                                                     |
|----------------------------------------|----------------------------------------------------------------------------------------------------------------------|
| Net                operating loss      | $       915,000                                                                   |
| Valuation                allowance     |    (915,000)                                                                                          |
| Net                deferred tax assets | $                   - |

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| **Regulation****S-B                Number** |  **Exhibit** |
|---------------------------------------------|-------------------|

| 10.1   |                                                                                                                                                                | Securities                Exchange and Additional Note Purchase Agreement, dated August 3,                2007, by                and between the Company and The Longview Fund, L.P. (“Longview”).                (incorporated by reference to the Company’s Form 8-K dated and filed                August 9, 2007)                                  |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2   |                                                                                                                                                                | Schedules                to Securities Exchange and Additional Note Purchase Agreement                (incorporated by reference to the Company’s Form 8-K dated and filed                August 9, 2007)                                                                                                                                                           |
| 10.3   |                                                                                                                                                                | Security                Agreement, dated as of July 9, 2007, between Sonterra Resources,                Inc.                (“Sonterra”) and Viking Asset Management, LLC, as Collateral Agent (the                “Collateral Agent”). (incorporated by reference to the Company’s Form 8-K                dated and filed August 9, 2007) |
| 10.4   |                                                                                                                                                                | First                Amendment to Security Agreement, dated as of August 3, 2007, between                Sonterra and the Collateral Agent (incorporated by reference to the                Company’s Form 8-K dated and filed August 9, 2007)                                                                                                                      |
| 10.5   |                                                                                                                                                                | Mortgage                dated August 3, 2007 from Sonterra to the Collateral Agent (incorporated                by reference to the Company’s Form 8-K dated and filed August 9,                2007)                                                                                                                                                               |
| 10.6   |                                                                                                                                                                | Form                of Joinder Agreement to Security Agreement (incorporated by reference                to                the Company’s Form 8-K dated and filed August 9, 2007)                                                                                                                                                                                   |
| 10.7   |                                                                                                                                                                | Form                of Guaranty from Sonterra to the Collateral Agent (incorporated by                reference to the Company’s Form 8-K dated and filed August 9,                2007)                                                                                                                                                                            |
| 10.8   |                                                                                                                                                                | Form                of Pledge Agreement between the Company and the Collateral Agent                (incorporated by reference to the Company’s Form 8-K dated and filed                August 9, 2007)                                                                                                                                                             |
| 10.9   |                                                                                                                                                                | Form                of Deposit Account Control Agreement among the Company, depositary                bank                and the Collateral Agent (incorporated by reference to the Company’s Form                8-K dated and filed August 9, 2007)                                                                                                              |
| 10.10  |                                                                                                                                                                | Form                of RCGI Warrant (incorporated by reference to the Company’s Form 8-K dated                and filed August 9, 2007)                                                                                                                                                                                                                             |
| 10.11  |                                                                                                                                                                | Form                of RCGI Note (incorporated by reference to the Company’s Form 8-K dated                and filed August 9, 2007)                                                                                                                                                                                                                                |
| 10.12  |                                                                                                                                                                | Form                of Registration Rights Agreement between the Company and Longview                (incorporated by reference to the Company’s Form 8-K dated and filed                August 9, 2007)                                                                                                                                                            |
| 10.13  |                                                                                                                                                                | Form                of Employment Agreement between the Company and Michael Pawelek                (incorporated by reference to the Company’s Form 8-K dated and filed                August 9, 2007)                                                                                                                                                              |
| 10.14  |                                                                                                                                                                | Form                of Employment between the Company and Wayne Psencik (incorporated                by                reference to the Company’s Form 8-K dated and filed August 9,                2007)                                                                                                                                                           |
| 10.15  |                                                                                                                                                                | Form                of Employment Agreement between the Company and Sherry Spurlock                (incorporated by reference to the Company’s Form 8-K dated and filed                August 9, 2007)                                                                                                                                                              |
| 10.16  |                                                                                                                                                                | Company’s                2007 Stock Option Plan (incorporated by reference to the Company’s Form                8-K dated and filed August 9, 2007)                                                                                                                                                                                                           |
| 10.17  |                                                                                                                                                                | Form                of Stock Option Agreement for Employees under the Company’s 2007 Stock                Option Plan (incorporated by reference to the Company’s Form 8-K dated and                filed August 9, 2007)                                                                                                                                     |
| 31.1   | Rule                13a-14(a) Certification                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                      |
| 32.1   | Certification                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 |                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                      |

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|                                              |   | RIVER                CAPITAL GROUP, INC.                                                                                                                                                                                            |
|---------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              |   |         /x/                Howard Taylor                                                                                                                                                    |
| Date:  November                14, 2007 |   | By:_______________________________      Howard                Taylor President      (Chief                Executive Officer and Chief Financial                Officer) |

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