----

----

| x      | QUARTERLY REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended MARCH 31, 2010              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                    |
|  ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15 (d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______to_______ |

| Nevada                          | 88-0448626          |
|---------------------------------|---------------------|
| (State or other jurisdiction of | (IRS Employer       |
| incorporation or organization)  | Identification No.) |

| Large accelerated filer  ̈ | Accelerated filer  ̈   |
|--------------------------------|----------------------------|
| Non-accelerated filer  ̈   | Smaller reporting companyx |

----

|                                                                            |                                                             | Page   |
|---------------------------------------------------------------------------------|------------------------------------------------------------------|--------|
|                                                                            |                                                             |   |
| Consolidated Balance Sheets at March 31, 2010 (Unaudited) and December 31, 2009 | F-2                                                              |
|                                                                            |                                                             |   |
| Consolidated Statement of Operations for the three months ended                 |                                                             |
|                                                                            | March 31, 2010 and three months ended March 31, 2009 (Unaudited) | F-3    |
|                                                                            |                                                             |   |
| Consolidated Statement of Changes in Shareholders' Deficit for the              |                                                             |
|                                                                            | three months ended March 31, 2010 (Unaudited)                    | F-4    |
|                                                                            |                                                             |   |
| Consolidated Statement of Cash Flows for three months ended                     |                                                             |
|                                                                            | March 31, 2010 and 2009 (Unaudited)                              | F-5    |
|                                                                            |                                                             |   |
| Notes to Financial Statements                                                   | F-6                                                              |
|                                                                            |                                                             |
| Item 2. Management’s Discussion and Analysis of Financial Condition       |                                                             |
|                                                                            | and Results of Operations                                        | 17     |
|                                                                            |                                                             |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk              | 20                                                               |
|                                                                            |                                                             |
| Item 4T. Controls and Procedures                                                | 20                                                               |
|                                                                            |                                                             |
| Part II – Other Information                                               | 21                                                               |
|                                                                            |                                                             |
| Signatures                                                                      | 23                                                               |
|                                                                            |                                                             |

----

|                                                            |   | March 31,   |        |   | December 31, |   |
|-----------------------------------------------------------------|--------|-------------|-------------|--------|--------------|--------|
|                                                            |   | 2010        |        |   | 2009         |   |
|                                                            |   | (Unaudited) |        |   | (Audited)    |   |
| Assets                                                          |   |        |        |   |         |   |
| Cash                                                            |   | $           | 56,002      |   |         | $      | 17,262 |   |
| Accounts receivable                                             |   |        | 38,940      |   |         |   | — |   |
| Deposits                                                        |   |        | 2,920       |   |         |   | — |   |
| Prepaid expenses                                                |   |        | 1,554       |   |         |   | 24,721 |   |
| Notes receivable (Note 5)                                       |   |        | 467         |   |         |   | 467 |   |
| Other current assets                                            |   |        | 34          |   |         |   | 26 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Total current assets                                            |   |        | 99,917      |   |         |   | 42,476 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Property and equipment, less accumulated depreciation           |   |        |        |   |         |   |   |   |
| of $1,763 (2010) and $1,301 (2009)                              |   |        | 12,344      |   |         |   | 7,937 |   |
| Deferred debt issuance costs (Note 4)                           |   |        | 158,619     |   |         |   | 166,922 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Total long-term assets                                          |   |        | 170,963     |   |         |   | 174,859 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Total assets                                                    |   | $           | 270,881     |   |         | $      | 217,335 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Liabilities and Shareholders’ Deficit                     |   |        |        |   |         |   |   |   |
| Current liabilities:                                            |   |        |        |   |         |   |   |   |
| Accounts and notes payable:                                     |   |        |        |   |         |   |   |   |
| Accounts payable, related party (Note 3)                        |   | $           | 94,765      |   |         | $      | 68,619 |   |
| Accounts payable, other                                         |   |        | 345,107     |   |         |   | 287,349 |   |
| Derivative liability, convertible notes payable (Note 4)        |   |        | 507,500     |   |         |   | 643,834 |   |
| Notes payable, related party (Note 3)                           |   |        | 118,453     |   |         |   | 132,537 |   |
| Notes payable, other (Note 4)                                   |   |        | 122,246     |   |         |   | 32,991 |   |
| Convertible notes payable (Note 4)                              |   |        | 30,000      |   |         |   | 30,000 |   |
| Payroll liabilities (Note 7)                                    |   |        | 70,539      |   |         |   | 67,166 |   |
| Accrued expenses                                                |   |        | 9,423       |   |         |   | 5,768 |   |
| Accrued interest payable:                                       |   |        |        |   |         |   |   |   |
| Interest payable, convertible notes (Note 4)                    |   |        | 13,379      |   |         |   | 6,792 |   |
| Interest payable, related party notes (Note 3)                  |   |        | 29,428      |   |         |   | 27,256 |   |
| Interest payable, notes payable other (Note 4)                  |   |        | 13,312      |   |         |   | 11,656 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Total current liabilities                                       |   |        | 1,354,152   |   |         |   | 1,313,968 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Long-term convertible notes payable net of current portion,     |   |        |        |   |         |   |   |   |
| net of discount of $374,861 (2010) and $354,583 (2009) (Note 4) |   |        | 60,139      |   |         |   | 25,417 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Total long-term liabilities                                     |   |        | 60,139      |   |         |   | 25,417 |   |
|                                                            |   |        |        |   |         |   |   |   |
|                                                            |   |        | 1,414,291   |   |         |   | 1,339,385 |   |
|                                                            |   |        |        |   |         |   |   |   |
| Commitments and contingencies                                   |   |        | —     |   |         |   | — |   |
|                                                            |   |        |        |   |         |   |   |   |
| Shareholders’ deficit: (Notes 1 & 9)                  |   |        |        |   |         |   |   |   |
| Preferred stock, $.001 par value; 10,000,000 shares authorized, |   |        |        |   |         |   |   |   |
| -0- (2010) and -0- (2009) shares                                |   |        |        |   |         |   |   |   |
| issued and outstanding                                          |   |        | —     |   |         |   | — |   |
| Common stock, $.001 par value; 500,000,000 shares authorized,   |   |        |        |   |         |   |   |   |
| 306,210,045 (2010) and 289,936,993 (2009) shares                |   |        |        |   |         |   |   |   |
| issued and outstanding                                          |   |        | 306,210     |   |         |   | 289,937 |   |
| Additional paid-in capital                                      |   |        | 10,790,719  |   |         |   | 9,459,316 |   |
| Accumulated deficit                                             |   |        | (12,242,298 | )      |         |   | (10,871,303 | ) |
|                                                            |   |        |        |   |         |   |   |   |
| Total shareholders' deficit of the Company                      |   |        | (1,145,369  | )      |         |   | (1,122,050 | ) |
|                                                            |   |        |        |   |         |   |   |   |
| Non-controlling interest (Note 1)                               |   |        | 1,958       |   |         |   | — |   |
|                                                            |   |        |        |   |         |   |   |   |
| Total shareholders' deficit                                     |   |        | (1,143,411  | )      |         |   | (1,122,050 | ) |
|                                                            |   |        |        |   |         |   |   |   |
| Total liabilities and shareholders' deficit                     |   | $           | 270,881     |   |         | $      | 217,335 |   |

----

|                                                       |   | Three months |        |   | Three months |   |
|------------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|
|                                                       |   | ended        |        |   | ended        |   |
|                                                       |   | March 31,    |        |   | March 31,    |   |
|                                                       |   | 2010         |        |   | 2009         |   |
|                                                       |   |         |        |   |         |   |
| Revenue                                                    |   | $            | 38,940      |   |         | $      | - |   |
|                                                       |   |         |        |   |         |   |   |   |
| Operating costs and expenses:                              |   |         |        |   |         |   |   |   |
| Reactor production                                         |   |         | 35,399      |   |         |   | — |   |
| Product development expense                                |   |         | 14,433      |   |         |   | 13,813 |   |
| Selling, general and administrative expenses               |   |         |        |   |         |   |   |   |
| Related party (Note 3)                                     |   |         | 55,196      |   |         |   | 43,500 |   |
| Stock-based compensation (Note 9)                          |   |         | 989,350     |   |         |   | - |   |
| Other (Note 6)                                             |   |         | 392,303     |   |         |   | 225,273 |   |
|                                                       |   |         |        |   |         |   |   |   |
| Total operating costs and expenses                         |   |         | (1,486,681  | )      |         |   | (282,586 | ) |
|                                                       |   |         |        |   |         |   |   |   |
| Loss from operations                                       |   |         | (1,447,741  | )      |         |   | (282,586 | ) |
|                                                       |   |         |        |   |         |   |   |   |
| Other income (expense)                                     |   |         |        |   |         |   |   |   |
| Unrealized gain on investments (Note 1)                    |   |         | -           |   |         |   | 35,000 |   |
| Interest (expense) income, amortization                    |   |         |        |   |         |   |   |   |
| of convertible note discount (Note 4)                      |   |         | (34,722     | )      |         |   | - |   |
| Interest expense (Notes 3 & 4)                         |   |         | (79,866     | )      |         |   | (4,382 | ) |
| Fair value adjustment of derivative liabilities (Note 4)   |   |         | 191,334     |   |         |   | - |   |
|                                                       |   |         |        |   |         |   |   |   |
|                                                       |   |         | 76,746      |   |         |   | 30,618 |   |
|                                                       |   |         |        |   |         |   |   |   |
| Loss before income taxes                                   |   |         | (1,370,995  | )      |         |   | (251,968 | ) |
|                                                       |   |         |        |   |         |   |   |   |
| Income tax provision (Note 8)                              |   |         | -           |   |         |   | - |   |
|                                                       |   |         |        |   |         |   |   |   |
| Net loss                                                   |   |         | (1,370,995  | )      |         |   | (251,968 | ) |
|                                                       |   |         |        |   |         |   |   |   |
| Net loss attributable to non-controlling interest (Note 1) |   |         | 1,877       |   |         |   | - |   |
|                                                       |   |         |        |   |         |   |   |   |
| Net loss attributable to Company                           |   | $            | (1,369,118  | )      |         | $      | (251,968 | ) |
|                                                       |   |         |        |   |         |   |   |   |
|                                                       |   |         |        |   |         |   |   |   |
| Basic and diluted loss per common share                    |   | $            | (0.00       | )      |         | $      | (0.00 | ) |
|                                                       |   |         |        |   |         |   |   |   |
| Weighted average common shares                             |   |         |        |   |         |   |   |   |
| outstanding (Notes 1 & 9)                              |   |         | 296,441,877 |   | *       |   | 153,582,276 |   |
|                                                       |   |         |        |   |         |   |   |   |
| * Restated, see Note 1                                     |   |         |        |   |         |   |   |   |

----

|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |   Common stock                                                        |                                                                                                                                              |    Additional paid-in                                                                                                                   |                                                            |   Accumulated                                                                          |                                                                                                                                              |    Non-controlling                     |                                                                                                                                              |  Total shareholders                              |
|------------------------------------------------------|-----------------------------------------------------------|--------|-------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                | Shares                                                                          |                                                                                                                                              | Par value                                                                                                                                         |                                                            | capital                                                                                          |                                                                                                                                              | deficit                                          |                                                                                                                                              | interest                                              |   | deficit |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| Balance at January 1, 2010                           |                                                      |   |       289,936,993       |                                                                                                                                                                |  $                                                                                                                                                             |            289,937       |                                                                                                                                              |                                                                                                                                              |          9,459,316 |                                                                                             |  $                                                                                                                                           |       (10,871,303) |                                                                                                                                              |  $                                               |                         - |   |  $ |          (1,122,050) |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| January through March 2010, issuance of              |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |
|                                                 | common stock in private placements (Note 9)               |   |                                                  |           12,037,500                                                                                              |                                                                                                                                                                |                                                                            |                12,037                                                  |                                                                                                                                              |                                                            |             197,763                  |                                                                                                                                              |                                             |                         - |                                                  |   |                         - |   |   |             209,800 |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| March 2010, issuance of stock options to             |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |
|                                                 | officers, directors & consultants (Note 9)            |   |                                                  |                            - |                                                                                                                                                                |                                                                            |                         - |                                                                                                                                              |                                                            |            354,650                        |                                                                                                                                              |                                             |                         - |                                                  |   |                         - |   |   |             354,650 |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| March 2010, issuance of common stock                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |
|                                                 | for consulting agreements (Note 9)                        |   |                                                  |            2,875,000                                                                                         |                                                                                                                                                                |                                                                            |                 2,875                                             |                                                                                                                                              |                                                            |              115,000            |                                                                                                                                              |                                             |                         - |                                                  |   |                         - |   |   |               117,875 |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| March 2010, issuance of common stock to              |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |
|                                                 | convertible noteholders (Note 9)                          |   |                                                  |             1,360,552                                                                                   |                                                                                                                                                                |                                                                            |                   1,361                                 |                                                                                                                                              |                                                            |                61,224 |                                                                                                                                              |                                             |                         - |                                                  |   |                         - |   |   |                62,585 |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| March 2010, issuance of warrants to subsidiary       |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |
|                                                 | officers and consultants in May 2009 (Note 9)             |   |                                                  |                            - |                                                                                                                                                                |                                                                            |                         - |                                                                                                                                              |                                                            |             516,825                  |                                                                                                                                              |                                             |                         - |                                                  |   |                         - |   |   |              516,825 |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| Issuance of equity by AlumiFuel Power International, |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |
|                                                 | Inc. subsidiary, net of non-controlling interest (Note 1) |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                85,941 |                                                                                                                                              |                                             |                         - |                                                  |   |                        81 |   |   |                86,022 |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| Net loss                                             |                                                      |   |                                                  |                                                                                                                                                                |                            - |                                                                            |                                                                                                                                              |                         - |                                                            |                                                                                             |                         - |                                             |                                                                                                                                              |        (1,370,995) |   |   |                  1,877 |   |   |           (1,369,118) |
|                                                 |                                                      |   |                                                  |                                                                                                                                                                |                                                                                                                                                                |                                                                            |                                                                                                                                              |                                                                                                                                              |                                                            |                                                                                             |                                                                                                                                              |                                             |                                                                                                                                              |                                                  |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                            |                                                      |   |        306,210,045 |                                                                                                                                                                |  $                                                                                                                                                             |             306,210 |                                                                                                                                              |                                                                                                                                              |        10,790,719            |                                                                                             |  $                                                                                                                                           |      (12,242,298)       |                                                                                                                                              |  $                                               |                  1,958 |   |  $ |            (1,143,411) |

----

|                                                    |   | 2010   |       |   | 2009   |   |
|---------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                    |   |   |       |   |   |   |
| Cash flows from operating activities:                   |   |   |       |   |   |   |
| Net loss                                                |   | $      | (1,370,995 | )      |   | $      | (251,968 | ) |
| Adjustments to reconcile net loss to net cash           |   |   |       |   |   |   |   |   |
| used by operating activities:                           |   |   |       |   |   |   |   |   |
| Stock based compensation (Note 9)                       |   |   | 989,350    |   |   |   | - |   |
| Shares issued for services (Note 9)                     |   |   | 62,585     |   |   |   | - |   |
| Allowance for bad debt (Note 5)                         |   |   | 16,403     |   |   |   | - |   |
| Depreciation and amortization                           |   |   | 15,995     |   |   |   | 115 |   |
| Unrealized (gain) loss on investments (Note 1)          |   |   | -          |   |   |   | (35,000 | ) |
| (Decrease) increase in derivative liability (Note 4)    |   |   | (191,334   | )      |   |   | - |   |
| Amortization of discount on debentures payable (Note 4) |   |   | 34,722     |   |   |   | - |   |
| Changes in operating assets and liabilities:            |   |   |       |   |   |   |   |   |
| Accounts and other receivables                          |   |   | (38,949    | )      |   |   | 17,250 |   |
| Prepaid expenses and other assets                       |   |   | 20,247     |   |   |   | - |   |
| Accounts payable and accrued expenses                   |   |   | 36,083     |   |   |   | 71,212 |   |
| Related party payables (Note 3)                         |   |   | 54,847     |   |   |   | - |   |
| Interest payable                                        |   |   | 10,416     |   |   |   | - |   |
| Net cash used in operating activities                   |   |   | (360,630   | )      |   |   | (198,391 | ) |
|                                                    |   |   |       |   |   |   |   |   |
| Cash flows from investing activities:                   |   |   |       |   |   |   |   |   |
| Purchase of equipment                                   |   |   | (4,869     | )      |   |   | - |   |
| Issuance of notes receivable (Note 5)                   |   |   | (16,403    | )      |   |   | (31,600 | ) |
| Net cash used in investing activities                   |   |   | (21,272    | )      |   |   | (31,600 | ) |
|                                                    |   |   |       |   |   |   |   |   |
| Cash flows from financing activities:                   |   |   |       |   |   |   |   |   |
| Proceeds from debentures (Note 4)                       |   |   | 55,000     |   |   |   | - |   |
| Proceeds from notes payable, related (Note 3)           |   |   | 26,000     |   |   |   | 13,500 |   |
| Proceeds from notes payable, other (Note 4)             |   |   | 91,500     |   |   |   | - |   |
| Proceeds from sales of common stock (Note 9)            |   |   | 209,800    |   |   |   | 239,800 |   |
| Prodeeds from sales of subsidiary equity (Note 1)       |   |   | 87,900     |   |   |   | - |   |
| Payments on notes payable (Note 4)                      |   |   | (2,245     | )      |   |   | - |   |
| Payments on notes payable, related (Note 3)             |   |   | (40,083    | )      |   |   | (14,466 | ) |
| Payments to placement agents (Note 4)                   |   |   | (7,230     | )      |   |   | - |   |
| Net cash provided by financing activities               |   |   | 420,642    |   |   |   | 238,834 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Net change in cash and cash equivalents                 |   |   | 38,740     |   |   |   | 8,843 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Cash and cash equivalents:                              |   |   |       |   |   |   |   |   |
| Beginning of period                                     |   |   | 17,262     |   |   |   | 292 |   |
|                                                    |   |   |       |   |   |   |   |   |
| End of period                                           |   | $      | 56,002     |   |   | $      | 9,135 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Supplemental disclosure of cash flow information:       |   |   |       |   |   |   |   |   |
| Cash paid during the period for:                        |   |   |       |   |   |   |   |   |
| Income taxes                                            |   | $      | -          |   |   | $      | - |   |
| Interest                                                |   | $      | 4,224      |   |   | $      | 1,007 |   |
|                                                    |   |   |       |   |   |   |   |   |
| Noncash financing transactions:                         |   |   |       |   |   |   |   |   |
| Notes and interest payable converted to stock           |   | $      | -          |   |   | $      | 360,900 |   |

----

----

----

----

| Management fees, rent and bonus payable to officers |   | $      | 93,898 |   |
|-----------------------------------------------------|--------|--------|--------|--------|
|                                                |   |   |   |   |
| Accrued expenses payable to subsidiary officer      |   |   | 867    |   |
|                                                |   |   |   |   |
| Total accounts payable, related party               |   | $      | 94,765 |   |

----

| Notes payable to officers; interest at 8% and due on demand                       |   | $      | 35      |   |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                                                              |   |   |    |   |
| Notes payable to affiliates of Company officers; interest at 8% and due on demand |   |   | 118,418 |   |
|                                                                              |   |   |    |   |
| Notes payable, related party                                                      |   |   | 118,453 |   |
|                                                                              |   |   |    |   |
| Interest payable related party                                                    |   |   | 29,428  |   |
|                                                                              |   |   |    |   |
| Total principal and interest payable, related party                               |   | $      | 147,881 |   |

----

| Notes payable, non-affiliates; interest at 8% and due on demand |   | $      | 122,246 |   |
|-----------------------------------------------------------------|--------|--------|---------|--------|
|                                                            |   |   |    |   |
| Interest payable, non-affiliates                                |   |   | 13,312  |   |
|                                                            |   |   |    |   |
| Total principal and interest payable, other                     |   | $      | 135,558 |   |

----

----

| Issuance Date | Fair Value | Term    | AssumedConversion Price | Market Price onGrant Date | Volatility Percentage | Interest Rate |
|---------------|------------|---------|-------------------------|---------------------------|-----------------------|---------------|
| 1/19/2010     | $67,667    | 3 years | $0.03                   | $0.04                     | 195%                  | 1.38%         |
| 1/28/2010     | $20,317    | 3 years | $0.04                   | $0.05                     | 195%                  | 1.38%         |

| Fair Value | Term          | AssumedConversion Price | Volatility Percentage | Interest Rate |
|------------|---------------|-------------------------|-----------------------|---------------|
| $507,500   | 2.5 - 3 years | $0.05                   | 194%                  | 1.38%         |

|                           |   | Three months ended March 31, 2010 |    |   | Three months ended March 31, 2009 |   |
|--------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|
| General and administrative     |   | $                                 | 98,604  |   |                              | $      | 29,505 |   |
| Salaries and employee benefits |   |                              | 102,798 |   |                              |   | 93,625 |   |
| Legal and accounting           |   |                              | 33,068  |   |                              |   | 64,851 |   |
| Professional services          |   |                              | 157,833 |   |                              |   | 37,292 |   |
|                           |   | $                                 | 392,303 |   |                              | $      | 225,273 |   |

----

----

| Issuance Date | Fair Value | Term    | Conversion Price | Market Price onGrant Date | Volatility Percentage | Interest Rate |
|---------------|------------|---------|------------------|---------------------------|-----------------------|---------------|
| May 5, 2009   | $1,374,647 | 5 years | $0.13            | $0.12                     | 225%                  | 1.9%          |
| May 5, 2009   | $1,374,646 | 6 years | $0.13            | $0.12                     | 225%                  | 2.3%          |
| May 5, 2009   | $1,385,302 | 7 years | $0.13            | $0.12                     | 225%                  | 2.6%          |

|                                             |   | Warrants   |   | Weighted-average exercise price                                   |   | Weighted-average grant date fair value          |
|--------------------------------------------------|--------|------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------|
| Outstanding and exercisable at December 31, 2009 |   | 60,490,263 |   | $          0.15 |   | $       0.10 |
|                                             |   |       |   |                                                              |   |                                            |
| Granted                                          |   | -          |   | -                                                                 |   | -                                               |
| Expired                                          |   | 1,094,356  |   | 0.50                                                              |   | 0.00                                            |
| Exercised                                        |   | -          |   | -                                                                 |   | -                                               |
|                                             |   |       |   |                                                              |   |                                            |
| Outstanding and exercisable at March 31, 2010    |   | 59,395,907 |   | $          0.15 |   | $       0.10 |

| Exercise price range |   | Number of options outstanding |   | Weighted-average exercise price                 |   | Weighted-average remaining life |
|----------------------|--------|-------------------------------|--------|-------------------------------------------------|--------|---------------------------------|
|                 |   |                          |   |                                            |   |                            |
| $0.50                |   | 1,841,863                     |   | $       0.50 |   | 0.7 years                       |
|                 |   |                          |   |                                            |   |                            |
| $0.25                |   | 27,500                        |   |        0.25  |   | 1.1 years                       |
|                 |   |                          |   |                                            |   |                            |
| $0.10 to $0.18       |   | 56,376,544                    |   | 0.13                                            |   | 4.0 years                       |
|                 |   |                          |   |                                            |   |                            |
| $0.06                |   | 1,150,000                     |   |       0.06        |   | 2.0 years                       |
|                 |   |                          |   |                                            |   |                            |
|                 |   | 59,395,907                    |   | $       0.14 |   | 2.7 years                       |

----

| Issuance Date | Fair Value | Term    | Exercise Price | Market Price onGrant Date | Volatility Percentage | Interest Rate |
|---------------|------------|---------|----------------|---------------------------|-----------------------|---------------|
| March 2010    | $354,650   | 5 years | $0.041         | $0.041                    | 236%                  | 2.38%         |

|                             | Options |   | Weighted-average exercise price |   | Weighted-average remaining contractual life (years) |   | Aggregate intrinsic value |
|----------------------------------|---------|--------|---------------------------------|--------|-----------------------------------------------------|--------|---------------------------|
| Outstanding at December 31, 2009 | 425,000 |   | $0.35                           |   | 2.8                                                 |   | $0                        |
|                             |    |   |                            |   |                                                |   |                      |
| Options granted                  | -       |   | -                               |   | -                                                   |   | -                         |
|                             |    |   |                            |   |                                                |   |                      |
| Outstanding atMarch 31, 2010     | 425,000 |   | $0.35                           |   | 2.8                                                 |   | $0                        |

|                             | Options    |   | Weighted-average exercise price |   | Weighted-average remaining contractual life (years) |   | Aggregate intrinsic value |
|----------------------------------|------------|--------|---------------------------------|--------|-----------------------------------------------------|--------|---------------------------|
| Outstanding at December 31, 2009 | 11,350,000 |   | $0.10                           |   | 4.5                                                 |   | $0                        |
|                             |       |   |                            |   |                                                |   |                      |
| Options granted                  | 8,650,000  |   | $0.04                           |   | 5.0                                                 |   | $43,250                   |
|                             |       |   |                            |   |                                                |   |                      |
| Outstanding atMarch 31, 2010     | 20,000,000 |   | $0.06                           |   | 4.4                                                 |   | $43,250                   |

----

----

----

|                           |   | Three months endedMarch 31, 2010 |    |   | Three months endedMarch 31, 2009 |   |
|--------------------------------|--------|----------------------------------|---------|--------|----------------------------------|--------|
| General and administrative     |   | $                                | 98,604  |   |                             | $      | 29,505 |   |
| Salaries and employee benefits |   |                             | 102,798 |   |                             |   | 93,625 |   |
| Legal and accounting           |   |                             | 33,068  |   |                             |   | 64,851 |   |
| Professional services          |   |                             | 157,833 |   |                             |   | 37,292 |   |
|                           |   | $                                | 392,303 |   |                             | $      | 225,273 |   |

----

| •   | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Provide reasonable assurance our transactions are recorded as necessary to permit preparation of our financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statement. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Exhibits: |                                                                                                                                                 |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1      | License Agreement between AlumiFuel Power Corporation and AlumiFuel Power International, Inc. dated March 26, 2010.  Filed herewith.  |
| 31.1      | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  Filed herewith.                                             |
| 32.1      | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  Filed herewith.                                                  |

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|   | ALUMIFUEL POWER CORPORATION |
|--------|-----------------------------|
|   | (Registrant)                |

| Date: May 24, 2010 | By: /s/ Henry Fong                                         |
|--------------------|------------------------------------------------------------|
|               | Henry Fong                                                 |
|               | Principal Executive Officer andPrincipal Financial Officer |
|               |                                                       |