**Introductory        statement**

----

**Thorium        Power, Inc.**

**Interim        Balance Sheet**

**September        30, 2006**

| **ASSETS**                                                                                                                          |   |            |        |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-------------|
|                                                                                                                                |   | **(Unaudited)** |        |
| **CURRENT                  ASSETS**                                                                                                 |   |            |        |   |
| Cash                  and cash equivalents                                                                                          |   | $               | 56,169      |   |
| Prepaid                  expenses and other current assets                                                                          |   |            | 9           |   |
| Due                  from Novastar Resources Ltd.                                                                                   |   |            | 505,824     |   |
|                                                                                                                                |   |            |        |   |
| **Total                  Current Assets**                                                                                           |   |            | 562,002     |   |
|                                                                                                                                |   |            |        |   |
| **PROPERTY,                  PLANT AND EQUIPMENT**                                                                                  |   |            |        |   |
| Property,                  plant and equipment                                                                                      |   |            | 47,057      |   |
| Accumulated                  depreciation                                                                                           |   |            | (21,420     | ) |
|                                                                                                                                |   |            |        |   |
| **Total                  Property, Plant and Equipment**                                                                            |   |            | 25,637      |   |
|                                                                                                                                |   |            |        |   |
| **OTHER                  ASSETS**                                                                                                   |   |            |        |   |
| Patent                  costs - net of accumulated amortization of $206,839                                                         |   |            | 204,830     |   |
| Security                  deposits                                                                                                  |   |            | 7,567       |   |
|                                                                                                                                |   |            |        |   |
| **Total                  Other Assets**                                                                                             |   |            | 212,397     |   |
|                                                                                                                                |   |            |        |   |
| **TOTAL                  ASSETS**                                                                                                   |   | $               | 800,037     |   |
|                                                                                                                                |   |            |        |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                                     |   |            |        |   |
|                                                                                                                                |   |            |        |   |
| **CURRENT                  LIABILITIES**                                                                                            |   |            |        |   |
| Current                  portion of long-term debt                                                                                  |   |            | 3,217       |   |
| Accrued                  expenses and accounts payable                                                                              |   |            | 600,665     |   |
| Note                  payable                                                                                                       |   |            | -           |   |
| Other                  current liabilities                                                                                          |   |            | 101         |   |
|                                                                                                                                |   |            |        |   |
| **Total                  Current Liabilities**                                                                                      |   |            | 603,982     |   |
|                                                                                                                                |   |            |        |   |
| **LONG-TERM                  LIABILITIES**                                                                                          |   |            |        |   |
| Note                  payable                                                                                                       |   |            | 12,657      |   |
|                                                                                                                                |   |            |        |   |
| **Total                  Liabilities**                                                                                              |   |            | 616,640     |   |
|                                                                                                                                |   |            |        |   |
| **STOCKHOLDERS'                  EQUITY**                                                                                           |   |            |        |   |
| Common                  Stock-$.05 par value-authorized 20,000,000 shares; issued and outstanding                  4,535,566 shares |   |            | 226,778     |   |
| Common                  stock and warrants - Additonal paid-in capital                                                              |   |            | 16,797,554  |   |
| Deficit                  accumulated during the development stage                                                                   |   |            | (16,840,935 | ) |
|                                                                                                                                |   |            |        |   |
| **Total                  Stockholders' Equity**                                                                                     |   |            | 183,397     |   |
|                                                                                                                                |   |            |        |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS' EQUITY**                                                                     |   | $               | 800,037     |   |

----

**Thorium        Power, Inc.**

**Interim        Statements of Operations**

**September        30, 2006**

|                                                                        |   | **(Unaudited)**                   |       | **(Unaudited)**                   |   | **(Unaudited)**        |   |
|-----------------------------------------------------------------------------|--------|-----------------------------------|------------|-----------------------------------|--------|------------------------|--------|
|                                                                        |   |                              |       |                              |   | **Cumulative**         |   |
|                                                                        |   |                              |       |                              |   | **From**               |   |
|                                                                        |   | **For the nine**        |       | **For the three**       |   | **Inception**          |   |
|                                                                        |   | **months                  ended** |       | **months                  ended** |   | **Through**            |   |
|                                                                        |   | **September 30,**            |       | **September 30,**            |   | **September 30,** |   |
|                                                                        |   | **2006**                          |       | **2006**                          |   | **2006**               |   |
|                                                                        |   |                              |       |                              |   |                   |   |
| **Revenue**                                                                 |   |                              |       |                              |   |                   |   |   |   |   |
| License                  revenue                                            |   | $                                 | -          |                              |   | -                      |   | $ | 624,985 |   |
|                                                                        |   |                              |            |                              |   |                        |   |   |  |   |
| **Total                  Revenue**                                          |   |                              | -          |                              |   | -                      |   |   | 624,985 |   |
|                                                                        |   |                              |       |                              |   |                   |   |   |   |   |
| **Costs                  and expenses**                                     |   |                              |       |                              |   |                   |   |   |   |   |
| Research                  and development                                   |   |                              | 10,000     |                              |   | 0                      |   |   | 3,902,158 |   |
| Salaries                                                                    |   |                              | 221,100    |                              |   | 73,700                 |   |   | 3,726,114 |   |
| Professional                  fees                                          |   |                              | 694,531    |                              |   | 509,682                |   |   | 2,757,656 |   |
| Allocated                  expenses - Thorium Power, Ltd.                   |   |                              | (505,824   | )                                 |   | (505,824               | )      |   | (505,824 | ) |
| Other                  selling, general and administrative expenses         |   |                              | 287,658    |                              |   | 124,591                |   |   | 4,723,838 |   |
|                                                                        |   |                              |       |                              |   |                   |   |   |   |   |
| **Total                  operating expenses**                               |   |                              | 707,465    |                              |   | 202,149                |   |   | 14,603,942 |   |
| Loss                  from operations                                       |   |                              | 707,465    |                              |   | 202,149                |   |   | 13,978,957 |   |
|                                                                        |   |                              |       |                              |   |                   |   |   |   |   |
| **Other                  (income) expenses**                                |   |                              |       |                              |   |                   |   |   |   |   |
| Interest                  (income) expense - net                            |   |                              | 4,508      |                              |   | 4,508                  |   |   | (103,634 | ) |
| Other                  (income) expense                                     |   |                              | (200       | )                                 |   | 0                      |   |   | (359 | ) |
| Foreign                  currency translation                               |   |                              | 4,500      |                              |   | 4,500                  |   |   | 4,500 |   |
| Stock                  based compensation                                   |   |                              | 105,000    |                              |   | 105,000                |   |   | 2,334,871 |   |
| Settlement                  costs                                           |   |                              | -          |                              |   | 0                      |   |   | 76,600 |   |
| Contributions                                                               |   |                              | 550,000    |                              |   | 0                      |   |   | 550,000 |   |
|                                                                        |   |                              |       |                              |   |                   |   |   |  |   |
| **Net                  Loss**                                               |   | $                                 | 1,371,273  |                              |   | 316,157                |   | $ | 16,840,935 |   |
|                                                                        |   |                              |       |                              |   |                   |   |   |   |   |
| Basic                  and diluted net loss per share                       |   |                              | 0.01       |                              |   | 0.00                   |   |   |   |   |
| Number                  of equivalent shares used to compute per share data |   |                              | 98,818,395 |                              |   | 98,818,395             |   |   |   |   |

----

**Thorium        Power, Inc.**

**Interim        Statements of Cash Flows**

**September        30, 2006**

|                                                                       |   |  **(Unaudited)**            |       |  **(Unaudited)**        |   |
|----------------------------------------------------------------------------|--------|----------------------------------|------------|------------------------------|--------|
|                                                                       |   |                        |       |  **Cumulative**         |   |
|                                                                       |   |                        |       |  **From**               |   |
|                                                                       |   |  **For the nine** |       |  **Inception**          |   |
|                                                                       |   |  **months ended**      |       |  **Through**            |   |
|                                                                       |   |  **September 30,**     |       |  **September 30,** |   |
|                                                                       |   | **2006**                         |       | **2006**                     |   |
|                                                                       |   |                        |       |                    |   |
| **Cash                  flows from operating activities:**                 |   |                             |       |                         |   |   |   |
| Net                  (loss)                                                |   | $                                | (1,371,273 | )                            | $      | (16,840,935 | ) |
| Adjustments                  to reconcile net (loss) to net cash           |   |                             |       |                         |   |   |   |
| provided                  by (used by) operating activities:               |   |                             |       |                         |   |   |   |
| Write-off                  of foreign patent, including amortization       |   |                             | -          |                         |   | 75,000 |   |
| Depreciation                  and amortization                             |   |                             | 19,584     |                         |   | 290,909 |   |
| (Gain)                  loss on disposition of fixed assets                |   |                             | -          |                         |   | 86,855 |   |
| Issuance                  of stock in exchange for technology and services |   |                             | -          |                         |   | 88,250 |   |
| Due                  from Novastar Resources, Ltd.                         |   |                             | (505,824   | )                            |   | (505,824 | ) |
| Stock                  based compensation                                  |   |                             | 105,000    |                         |   | 2,334,870 |   |
| (Increase)                  decrease in prepaid and other expenses         |   |                             | 6,271      |                         |   | (9 | ) |
| Increase                  (decrease) in accrued and other expenses         |   |                             | (338,010   | )                            |   | 600,767 |   |
|                                                                       |   |                             |       |                         |   |   |   |
| Net                  cash used by operating activities                     |   |                             | (2,084,252 | )                            |   | (13,870,117 | ) |
|                                                                       |   |                             |       |                         |   |   |   |
| **Cash                  flows from investing activities:**                 |   |                             |       |                         |   |   |   |
| Patent                  costs                                              |   |                             | (6,664     | )                            |   | (411,669 | ) |
| Security                  deposits                                         |   |                             | -          |                         |   | (7,567 | ) |
| Fixed                  assets                                              |   |                             | (10,961    | )                            |   | (285,145 | ) |
| Loans                  granted - related parties                           |   |                             | -          |                         |   | (160,365 | ) |
| Repayment                  of loans - related parties                      |   |                             | -          |                         |   | 160,365 |   |
| Proceeds                  from sale of fixed assets                        |   |                             | -          |                         |   | 13,583 |   |
|                                                                       |   |                             |       |                         |   |   |   |
| Net                  cash used by investing activities                     |   |                             | (17,626    | )                            |   | (690,799 | ) |
|                                                                       |   |                             |       |                         |   |   |   |
| **Cash                  flows from financing activities:**                 |   |                             |       |                         |   |   |   |
| Proceeds                  from issuance of stock                           |   |                             | 2,202,673  |                         |   | 14,498,011 |   |
| Proceeds                  from loans – related parties          |   |                             | 4,100      |                         |   | 388,790 |   |
| Repayment                  of loans – related parties           |   |                             | (45,931    | )                            |   | (285,590 | ) |
| Proceeds                  from loan from payroll service                   |   |                             | -          |                         |   | 42,663 |   |
| Repayment                  of loan from payroll service                    |   |                             | -          |                         |   | (42,663 | ) |
| Net                  changes in current portion of long-term debt          |   |                             | (918       | )                            |   | 3,217 |   |
| Proceeds                  from issuance of long-term debt                  |   |                             | -          |                         |   | 18,082 |   |
| Principal                  repayments of long-term debt                    |   |                             | (2,161     | )                            |   | (5,426 | ) |
|                                                                       |   |                             |       |                         |   |   |   |
| Net                  cash provided by financing activities                 |   |                             | 2,157,763  |                         |   | 14,617,084 |   |
|                                                                       |   |                             |       |                         |   |   |   |
| Net                  increase in cash and cash equivalents                 |   |                             | 55,886     |                         |   | 56,169 |   |
|                                                                       |   |                             |       |                         |   |   |   |
| Cash                  and cash equivalents - beginning of period           |   |                             | 283        |                         |   | - |   |
|                                                                       |   |                             |       |                         |   |   |   |
| Cash                  and cash equivalents - end of period                 |   | $                                | 56,169     |                         | $      | 56,169 |   |
|                                                                       |   |                             |       |                         |   |   |   |
| Supplemental                  disclosures                                  |   |                             |       |                         |   |   |   |
| Cash                  paid - interest                                      |   | $                                | 687        |                         | $      | 5,497 |   |
|                                                                       |   |                             |       |                         |   |   |   |
| Non-Cash                  Transactions:                                    |   |                             |       |                         |   |   |   |
| Conversion                  of debt to equity                              |   |                             | 4,100      |                         |   | 103,200 |   |

----

| Thorium                    Power, Inc.**(A                      Development Stage Enterprise)****Notes                        to Financial Statements** | Exhibit                    99.1 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|

----

|   | 1. | **The                  Company and Business                  Operations** |
|--------|----|---------------------------------------------------------------------------|

*Continued*

----

| Thorium                  Power, Inc.**(A                    Development Stage Enterprise)****Notes                      to Financial Statements** | Exhibit                  99.1 |
|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|

----

|   | 2. | **Summary                  of Significant Accounting                  policies** |
|--------|----|----------------------------------------------------------------------------------|

|  | *a.* | *Revenue                  Recognition*                  -  |
|--|------|-----------------------------------------------------------------|

|   | a). | *Patent                  Costs -*Patent                  costs represent legal fees and filing costs capitalized and amortized                  over                  their estimated useful lives of 20 years. Amortization expense                  for Patents                  was $13,055 and $13,022 for the nine month periods ended September                  30,                  2006 and 2005 and $206,839 for the cumulative period from January                  8, 1992                  (Inception) to September 30, 2006. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b). | *Cash                  Equivalents -*Cash                  equivalents consist of cash and cash investments with maturities                  of three                  months or less at the time of                  purchase. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c). | *Start-Up                  Costs -*                  The Company, in accordance with the provisions of the American                  Institute                  of Certified Public Accountants' Statement of Position (SOP) 98-5,                  "Reporting on the Costs of Start-up Activities”, expenses all start-up and                  organizational costs as they are                  incurred. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d). | *Property,                  Plant and Equipment -*Property,                  Plant and Equipment is comprised of leasehold improvements, an                  automobile,                  and office equipment and is stated at cost less accumulated depreciation.                  Depreciation of furniture, computer and office equipment is computed                  over                  the estimated useful life of the asset, generally five and seven                  years                  respectively, utilizing the double declining balance methodology.                  Depreciation for the leasehold improvements is computed using the                  straight-line method over the 5 year term of the lease. Upon disposition                  of assets, the related cost and accumulated depreciation are eliminated                  and any gain or loss is included in the statement of income. Expenditures                  for major improvements are capitalized. Maintenance and repairs                  are                  expensed as incurred. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e). | *Long-Lived                  Assets*-                  Long-lived assets are reviewed for impairment whenever events or                  changes                  in circumstances indicate that the carrying amount of the assets                  might not                  be recoverable. Conditions that would necessitate an impairment                  assessment                  include a significant decline in the observable market value of                  an asset,                  a significant change in the extent or manner in which an asset                  is used, or                  any other significant adverse change that would indicate that the                  carrying                  amount of an asset or group of assets is not                  recoverable. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Continued*

----

| Thorium                    Power, Inc.**(A                      Development Stage Enterprise)****Notes                        to Financial Statements** | Exhibit                    99.1 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|

----

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

|   | g). | *Stock-based                  Compensation -*Employees.                  When stock based compensation is issued to employees and directors,                  in                  connection with their services as directors, the revised Statement                  of                  Financial Accounting Standards No. 123 ‘Accounting for Stock Based                  Compensation’ (“SFAS 123(R)”) requires companies to record compensation                  cost for stock based employee compensation plans at fair value.                  From                  inception through 2003, the Company accounted for stock based compensation                  using the intrinsic value method prescribed in Accounting Principles                  Board                  Opinion No. 25, ‘Accounting for Stock Issued to Employees’ (“APB No. 25”).                  APB No. 25 requires no recognition of compensation expense for                  the stock                  based compensation arrangements provided by the Company where the                  exercise                  price is equal to the market price at the date of the grants. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*,        *
*,        *
*.        *

|   | h). | *Income                  Taxes -*Deferred                  tax assets and liabilities are recognized for the future tax consequences                  attributable to differences between the financial statement carrying                  amounts of existing assets and liabilities and their respective                  tax bases.                  Deferred tax assets, including tax loss and credit carry-forwards,                  and                  liabilities are measured using enacted tax rates expected to apply                  to                  taxable income in the years in which those temporary differences                  are                  expected to be recovered or settled. The effect on deferred tax                  assets and                  liabilities of a change in tax rates is recognized in income in                  the period                  that includes the enactment date. Deferred income tax expense represents                  the change during the period in the deferred tax assets and deferred                  tax                  liabilities. The components of the deferred tax assets and liabilities                  are                  individually classified as current and non-current based on their                  characteristics. Deferred tax assets are reduced by a valuation                  allowance                  when, in the opinion of management, it is more likely than not                  that some                  portion or all of the deferred tax assets will not be                  realized. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Continued*

----

| Thorium                    Power, Inc.**(A                      Development Stage Enterprise)****Notes                        to Financial Statements** | Exhibit                    99.1 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|

----

|   | j. | *Earnings                  per Share -*Basic                  net earnings (loss) per common share is computed by dividing net                  earnings                  (loss) applicable to common shareholders by the weighted-average                  number of                  common shares outstanding during the period. Diluted net earnings                  (loss)                  per common share is determined using the weighted-average number                  of common                  shares outstanding during the period, adjusted for the dilutive                  effect of                  common stock equivalents. In periods where losses are reported,                  the                  weighted-average number of common shares outstanding excludes common                  stock                  equivalents because their inclusion would be                  anti-dilutive. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k. | *New                  Accounting Pronouncements -*In                  December 2004, the FASB issued SFAS No. 153, “Exchanges of Nonmonetary                  Assets, an amendment of APB Opinion No. 29”.* *SFAS                  153 is effective for nonmonetary asset exchanges occurring in fiscal                  periods beginning after June 15, 2005, with earlier application                  permitted.                  The adoption of SFAS 153 is not expected to have a material impact                  on our                  results of operations or financial                  position. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Continued*

----

| Thorium                  Power, Inc.**(A                    Development Stage Enterprise)****Notes                      to Financial Statements** | Exhibit                  99.1 |
|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|

----

|   | 3. | **Status                  of the Company** |
|--------|----|--------------------------------------------|

|  | 4. | **Research                  and Development Costs** |
|--|----|-----------------------------------------------------|

|   | 5. | **Property                  Plant and Equipment** |
|--------|----|---------------------------------------------------|

*The        following represents the detail of Thorium Power’s property, plant and equipment        at September 30, 2006:*

|                                                      |   | Original |   |   | Accumulated  |   |   | Net                  Book |
|-----------------------------------------------------------|--------|----------|--------|--------|--------------|--------|--------|---------------------------|
|                                                      |   | Cost     |   |   | Depreciation |   |   | Value                     |
|                                                      |   |     |   |   |         |   |   |                      |
| Furniture,                  computer and office equipment | $      | 24,840   |   | $      | 12,645       |   | $      | 12,195                    |
| Automobile                                                |   | 22,217   |   |   | 8,775        |   |   | 13,442                    |
|                                                      | $      | 47,057   |   | $      | 21,420       |   | $      | 25,637                    |

|   | 6. | **Stock                  Options and Warrants** |
|--------|----|-------------------------------------------------|

|                                      |   | **2002                  and prior** |   | **2003**                     | **2004-2005**                |
|-------------------------------------------|--------|-------------------------------------|--------|------------------------------|------------------------------|
| Expected                  life of options |   | Actual                  life        |   | Actual                  life | Actual                  life |
| Risk-free                  interest rate  |   | 5%                                  |   | 4%                           | 4%                           |
| Volatility                  of stock      |   | 100%                                |   | 100%                         | 32%                          |
| Expected                  dividend yield  |   | -                                   |   | -                            | -                            |

*Continued*

----

| Thorium                  Power, Inc.**(A                    Development Stage Enterprise)****Notes                      to Financial Statements** | Exhibit                  99.1 |
|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|

----

*Continued*

----

| **Thorium              Power, Inc.**                 |  Exhibit                99.1 |
|------------------------------------------------------|-----------------------------------|
| **(A              Development Stage Enterprise)**    |                              |
| **Notes              to Financial Statements**  |                              |

----

|                         |   |      |      |                        |   | In Connection      |   | Issued    |    | Converted      |   |    |   |     |    |    |   |
|------------------------------|--------|-----------|-----------|-----------------------------|--------|-------------------------|--------|-----------|---------|----------------|--------|---------|--------|----------|---------|---------|--------|
|                         |   | Beginning |      | In Exchange            |   | with purchase      |   | as        |    | to stock/ |   |    |   |     |    | Ending  |   |
|                         |   | Balance   |      | for                Services |   | of                stock |   | Incentive |    | Exercised      |   | Expired |   | Repriced |    | Balance |   |
| **1/1/1993**                 |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | **12/31/1993** |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 0         |                        |   | 1,040,000               |   |      | 35,000  |           |   | 15,000  |   |     | (10,000 | )       |   |   |   |   |   |   |   | 1,080,000 |   |
| $5                per share  |   |      | 0         |                        |   |                    |   |      | 220,000 |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 220,000 |   |
| $10 per share      |   |      | 0         |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 0 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 1,300,000 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| **1/1/1994**                 |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | **12/31/1994** |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 1,080,000 |                        |   | 95,000                  |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 1,175,000 |   |
| $5                per share  |   |      | 220,000   |                        |   | 50,000                  |   |      | 25,000  |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 295,000 |   |
| $10                per share |   |      | 0         |                        |   | 55,000                  |   |      | 36,100  |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 91,100 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 1,561,100 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| **1/1/1995**                 |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | **12/31/1995** |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 1,175,000 |                        |   |                    |   |      |    |           |   |    |   |     | (10,000 | )       |   |   |   |   | 25,000 |   |   | 1,190,000 |   |
| $5                per share  |   |      | 295,000   |                        |   | 155,000                 |   |      |    |           |   |    |   |     |    |    |   |   |   |   | (25,000 | ) |   | 425,000 |   |
| $10                per share |   |      | 91,100    |                        |   | 30,000                  |   |      | 41,500  |           |   | 5,000   |   |     |    |    |   |   |   |   |   |   |   | 167,600 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |         |   |     |    |    |   |   |   |   |   |   |   | 1,782,600 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| **1/1/1996**                 |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | **12/31/1996** |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 1,190,000 |                        |   |                    |   |      |    |           |   |    |   |     | (34,000 | )       |   |   |   |   | 100,000 |   |   | 1,256,000 |   |
| $5                per share  |   |      | 425,000   |                        |   | 60,000                  |   |      |    |           |   |    |   |     |    |    |   |   |   |   | (82,500 | ) |   | 402,500 |   |
| $10                per share |   |      | 167,600   |                        |   | 25,000                  |   |      | 30,300  |           |   | 14,000  |   |     |    |    |   |   |   |   | (17,500 | ) |   | 219,400 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 1,877,900 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| **1/1/1997**                 |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | **12/31/1997** |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 1,256,000 |                        |   |                    |   |      |    |           |   |    |   |     | (47,500 | )       |   |   |   |   | 81,000 |   |   | 1,289,500 |   |
| $5                per share  |   |      | 402,500   |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   | (42,500 | ) |   | 360,000 |   |
| $10                per share |   |      | 219,400   |                        |   | 118,000                 |   |      | 56,700  |           |   |    |   |     | (3,500  | )       |   |   |   |   | (38,500 | ) |   | 352,100 |   |
|                         |   |      |      |                        |   |                    |   |      |    |           |   |    |   |     |    |    |   |   |   |   |   |   |   | 2,001,600 |   |

*Continued*

----

| **Thorium                Power, Inc.**                 |  Exhibit                  99.1 |
|--------------------------------------------------------|-------------------------------------|
| **(A                Development Stage Enterprise)**    |                                |
| **Notes                to Financial Statements**  |                                |

----

|                         |   |      |      |              |   | In Connection      |   | Issued    |    | Converted      |   |     |   |     |     |    |   |
|------------------------------|--------|-----------|-----------|-------------------|--------|-------------------------|--------|-----------|---------|----------------|--------|----------|--------|----------|----------|---------|--------|
|                         |   | Beginning |      | In Exchange  |   | with purchase      |   | as        |    | to stock/ |   |     |   |     |     | Ending  |   |
|                         |   | Balance   |      | for Services |   | of                stock |   | Incentive |    | Exercised      |   | Expired  |   | Repriced |     | Balance |   |
| **01/01/1998**               |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | **12/31/1998** |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 1,289,500 |              |   |                    |   |      |    |           |   |     |   |     | (232,500 | )       |   | (95,000 | ) |   | 55,000 |   |   | 1,017,000 |   |
| $5                per share  |   |      | 360,000   |              |   |                    |   |      |    |           |   |     |   |     | (47,500  | )       |   | (172,500 | ) |   | (50,000 | ) |   | 90,000 |   |
| $10                per share |   |      | 352,100   |              |   | 2,500                   |   |      | 9,500   |           |   |     |   |     |     |    |   |   |   |   | (5,000 | ) |   | 359,100 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | 1,466,100 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| **01/01/1999**               |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | **12/31/1999** |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 1,017,000 |              |   |                    |   |      |    |           |   |     |   |     | (5,000   | )       |   | (20,000 | ) |   |   |   |   | 992,000 |   |
| $5                per share  |   |      | 90,000    |              |   |                    |   |      |    |           |   |     |   |     | (25,000  | )       |   |   |   |   |   |   |   | 65,000 |   |
| $10                per share |   |      | 359,100   |              |   |                    |   |      |    |           |   |     |   |     | (5,250   | )       |   | (26,850 | ) |   |   |   |   | 327,000 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | 1,384,000 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| **01/01/2000**               |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | **12/31/2000** |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 992,000   |              |   |                    |   |      |    |           |   |     |   |     | (60,000  | )       |   |   |   |   |   |   |   | 932,000 |   |
| $5                per share  |   |      | 65,000    |              |   |                    |   |      | 600,000 |           |   |     |   |     | (5,000   | )       |   |   |   |   |   |   |   | 660,000 |   |
| $10                per share |   |      | 327,000   |              |   |                    |   |      |    |           |   |     |   |     | (37,000  | )       |   | (13,500 | ) |   |   |   |   | 276,500 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | 1,868,500 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| **01/01/2001**               |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | **12/31/2001** |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 932,000   |              |   |                    |   |      |    |           |   |     |   |     | (5,000   | )       |   |   |   |   |   |   |   | 927,000 |   |
| $5                per share  |   |      | 660,000   |              |   |                    |   |      |    |           |   |     |   |     | (20,000  | )       |   |   |   |   |   |   |   | 640,000 |   |
| $10                per share |   |      | 276,500   |              |   | 223,000                 |   |      | 700,000 |           |   | 625,000  |   |     | (3,600   | )       |   | (51,200 | ) |   |   |   |   | 1,769,700 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | 3,336,700 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| **01/01/2002**               |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | **12/31/2002** |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   |   |   |
| $1                per share  |   |      | 927,000   |              |   | -                       |   |      | -       |           |   | -        |   |     | (3,000   | )       |   | (7,000 | ) |   | - |   |   | 917,000 |   |
| $5                per share  |   |      | 640,000   |              |   | -                       |   |      | -       |           |   | -        |   |     | -        |    |   | - |   |   | - |   |   | 640,000 |   |
| $10 per share      |   |      | 1,769,700 |              |   | -                       |   |      | 10,000  |           |   | (625,000 | )      |     | (2,000   | )       |   | (97,700 | ) |   | **-** |   |   | 1,055,000 |   |
|                         |   |      |      |              |   |                    |   |      |    |           |   |     |   |     |     |    |   |   |   |   |   |   |   | 2,612,000 |   |

*Continued*

----

| **Thorium                Power, Inc.**                 |  Exhibit                  99.1 |
|--------------------------------------------------------|-------------------------------------|
| **(A                Development Stage Enterprise)**    |                                |
| **Notes                to Financial Statements**  |                                |

----

| **1/1/2003**                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |     |   |   |    |   |   |      |   |   | **12/31/2003** |   |
|-----------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|--------|--------|---------|--------|--------|-----------|--------|--------|----------------|--------|
|                        |   |   |      |   |   |   |   |   |   |   |   |   |   |   |     |   |   |    |   |   |      |   |   |           |   |
| $1                per share |   |   | 917,000   |   |   | -      |   |   | -      |   |   | -      |   |   | (100,000 | )      |   | -       |   |   | 1,200,000 |   |   | 2,017,000      |   |
| $5                per share |   |   | 640,000   |   |   | -      |   |   | 40,000 |   |   | -      |   |   | -        |   |   | -       |   |   | (600,000  | )      |   | 80,000         |   |
| $10 per share     |   |   | 1,055,000 |   |   | -      |   |   | 20,000 |   |   | 1,590  |   |   | (1,300   | )      |   | (62,795 | )      |   | (600,000  | )      |   | 412,495        |   |
|                        |   |   |      |   |   |   |   |   |   |   |   |   |   |   |     |   |   |    |   |   |      |   |   | 2,509,495      |   |

|                               |   |      |      |              |   | In Connection      |   | Issued    |   | Converted                |   |    |   |     |     |    |   |
|------------------------------------|--------|-----------|-----------|-------------------|--------|-------------------------|--------|-----------|--------|--------------------------|--------|---------|--------|----------|----------|---------|--------|
|                               |   | Beginning |      | In Exchange  |   | with purchase      |   | as        |   | to                stock/ |   |    |   |     |     | Ending  |   |
|                               |   | Balance   |      | for Services |   | of                stock |   | Incentive |   | Exercised                |   | Expired |   | Repriced |     | Balance |   |
| **01/01/2004**                     |   |      |      |              |   |                    |   |      |   |                     |   |    |   |     |     |    |   |   |   |   |   |   |   | **12/31/2004** |   |
|                               |   |      |      |              |   |                    |   |      |   |                     |   |    |   |     |     |    |   |   |   |   |   |   |   |   |   |
| $1                per share        |   |      | 2,017,000 |              |   | -                       |   |      | -      |                     |   | -       |   |     | -        |    |   | - |   |   | - |   |   | 2,017,000 |   |
| $4                per share        |   |      | 0         |              |   | 250,000                 |   |      | -      |                     |   | -       |   |     | -        |    |   | - |   |   | - |   |   | 250,000 |   |
| $5                per share        |   |      | 80,000    |              |   | -                       |   |      | -      |                     |   | -       |   |     | -        |    |   | - |   |   | - |   |   | 80,000 |   |
| $9.73-$10                per share |   |      | 412,495   |              |   | -                       |   |      | -      |                     |   | 600     |   |     | -        |    |   | - |   |   | - |   |   | 413,095 |   |
|                               |   |      |      |              |   |                    |   |      |   |                     |   |    |   |     |     |    |   |   |   |   |   |   |   | 2,760,095 |   |
|                               |   |      |      |              |   |                    |   |      |   |                     |   |    |   |     |     |    |   |   |   |   |   |   |   |   |   |
| **01/01/2005**                     |   |      |      |              |   |                    |   |      |   |                     |   |    |   |     |     |    |   |   |   |   |   |   |   | **12/31/2005****& 9/30/2006** |   |
|                               |   |      |      |              |   |                    |   |      |   |                     |   |    |   |     |     |    |   |   |   |   |   |   |   |   |   |
| $1                per share        |   |      | 2,017,000 |              |   | -                       |   |      | -      |                     |   | -       |   |     | (820,000 | )       |   | - |   |   | - |   |   | 1,197,000 |   |
| $4                per share        |   |      | 250,000   |              |   | 225,000                 |   |      | -      |                     |   | -       |   |     | -        |    |   | - |   |   | - |   |   | 475,000 |   |
| $5                per share        |   |      | 80,000    |              |   | -                       |   |      | -      |                     |   | -       |   |     | -        |    |   | - |   |   | - |   |   | 80,000 |   |
| $9.60-$10                per share |   |      | 413,095   |              |   | -                       |   |      | -      |                     |   | 705     |   |     | -        |    |   | - |   |   | - |   |   | 413,800 |   |
|                               |   |      |      |              |   |                    |   |      |   |                     |   |    |   |     |     |    |   |   |   |   |   |   |   | 2,165,800 |   |

*Continued*

----

| **Thorium                Power, Inc.**                 |  Exhibit                  99.1 |
|--------------------------------------------------------|-------------------------------------|
| **(A                Development Stage Enterprise)**    |                                |
| **Notes                to Financial Statements**  |                                |

----

| September 30, 2006   |   | Number    |   | Weighted                average Remaining Life |   | Weighted-                averageexercise price |
|--------------------------------|--------|-----------|--------|-----------------------------------------------------|--------|-----------------------------------------------------|
|                           |   |      |   |                                                |   |                                                |
| Range                of Prices |   |      |   |                                                |   |                                                |
| $1.00                          |   | 1,197,000 |   | 1.8                years                            |   | $1.00                                               |
| $4.00                          |   | 475,000   |   | 4.3                years                            |   | $4.00                                               |
| $5.00                          |   | 80,000    |   | 1.7                years                            |   | $5.00                                               |
| $9.60-10.00                    |   | 413,800   |   | 1.1                years                            |   | $9.95                                               |
|                           |   |      |   |                                                |   |                                                |
|                           |   | 2,165,800 |   |                                                |   | $2.83                                               |

|  | 7. | **Income                Taxes** |
|--|----|---------------------------------|

| ***Assets***                                              |   |   |       |   |
|-----------------------------------------------------------|--------|--------|------------|--------|
| Approximate                net operating loss   |   |   | 6,736,374  |   |
| Less:                valuation allowance                  |   |   | (6,736,374 | )      |
|                                                      |   | $      | -          |   |

----

| **Thorium                  Power, Inc.**                 |  Exhibit                    99.1 |
|----------------------------------------------------------|---------------------------------------|
| **(A                  Development Stage Enterprise)**    |                                  |
| **Notes                  to Financial Statements**  |                                  |

----

|  | 8. | **Profit                Sharing Plan** |
|--|----|----------------------------------------|

|  | 9. | **Research                    Agreement** |
|--|----|-------------------------------------------|

|  | 10. | **Commitments                    and Contingencies** |
|--|-----|------------------------------------------------------|

* *

*Firm          Price Commitments*

|  | 11. | **Related                Parties** |
|--|-----|------------------------------------|

|  | **12.** | **Capital                Stock Transactions** |
|--|---------|-----------------------------------------------|

----