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| Delaware               | 56-2291458                      |
|------------------------|---------------------------------|
| State of Incorporation | IRS Employer Identification No. |

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| Large accelerated filer           | ¨ | Accelerated filer       | ¨ |
|-----------------------------------|--------|-------------------------|--------|
| Non–Accelerated filer  | ¨ | Small reporting company | x      |

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| FREEDOM ENVIRONMENTAL SERVICES, INC.                                                                  |
|-------------------------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                 |
|                                                                                                  |
|                                                                                                  |   |   |   |   |   |   |
|                                                                                                  |   | Years Ended December 31, |   |
|                                                                                                  |   | 2010 |   |   | 2009 |   |
|                                                                                                  |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   |   |   |
|   Net loss                                                                                  |   | $ | (2,540,899 | ) |   | $ | (4,948,484 | ) |
|   Adjustments to reconcile net loss to net cash                                             |   |   |   |   |   |   |   |   |
|    used in operating activities:                                                       |   |   |   |   |   |   |   |   |
|   Bad debt expense                                                                          |   |   | 59,243 |   |   |   | - |   |
|   Depreciation and amortization                                                             |   |   | 174,197 |   |   |   | 8,712 |   |
|   Common stock issued for services                                                          |   |   | 1,410,851 |   |   |   | 3,904,498 |   |
|   Common stock issued for services - related parties                                        |   |   | 58,125 |   |   |   | - |   |
|   Goodwill impairment                                                                       |   |   | 132,595 |   |   |   | - |   |
|   Common stock issued for conversion of debt                                                |   |   | - |   |   |   | 416,375 |   |
|    Beneficial Conversion Feature / amortization of debt discount                       |   |   | 139,144 |   |   |   | - |   |
|   Changes in operating assets and liabilities:                                              |   |   |   |   |   |   |   |   |
|     Accounts receivables                                                          |   |   | 10,310 |   |   |   | (8,277 | ) |
|     Other assets                                                                  |   |   | (5,548 | ) |   |   | 6,686 |   |
|     Inventory                                                                     |   |   | (36,392 | ) |   |   | - |   |
|    Deposits                                                                            |   |   | - |   |   |   | 5,049 |   |
|     Accounts payables                                                             |   |   | 227,258 |   |   |   | 91,899 |   |
|     Accrued expenses                                                              |   |   | 223,872 |   |   |   | 426,984 |   |
|     Accrued interest - related parties                                            |   |   | 30,937 |   |   |   | - |   |
|           Net cash used in operating activities     |   |   | (116,307 | ) |   |   | (96,558 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |
|     Cash received on acquisition of Brownies                                      |   |   | 207,163 |   |   |   | - |   |
|     Purchase of equipment                                                         |   |   | (902,494 | ) |   |   | - |   |
|           Net cash used in investing activities     |   |   | (695,331 | ) |   |   | - |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                 |   |   |   |   |   |   |   |   |
|  Bank overdraft                                                                                  |   |   | (5,037 | ) |   |   | (15,434 | ) |
|  Repayment of note payable                                                                       |   |   | (569,442 | ) |   |   | (9,994 | ) |
|  Repayment of note payable - related parties                                                     |   |   | (93,679 | ) |   |   | - |   |
|  Repayment of note payable - related parties                                                     |   |   | - |   |   |   | (1,818 | ) |
|  Proceeds from note payable                                                                      |   |   | 1,275,000 |   |   |   | - |   |
|  Proceeds from note payable - related parties                                                    |   |   | 247,430 |   |   |   | 123,804 |   |
|  Proceeds from convertible note payable                                                          |   |   | 132,500 |   |   |   | - |   |
|           Net cash provided by financing activities |   |   | 986,772 |   |   |   | 96,558 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| INCREASE IN CASH                                                                                      |   |   | 175,134 |   |   |   | - |   |
| CASH, BEGINNING OF YEAR                                                                               |   |   | - |   |   |   | - |   |
| CASH, END OF YEAR                                                                                     |   | $ | 175,134 |   |   | $ | - |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| Interest paid                                                                                         |   | $ | 29,209 |   |   | $ | 137,940 |   |
| Taxes paid                                                                                            |   | $ | - |   |   | $ | - |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| NONCASH INVESTING AND FINANCING TRANSACTIONS                                                          |   |   |   |   |   |   |   |   |
| Issuance of common stock for the conversion of debt                                                   |   | $ | 447,628 |   |   | $ | 418,041 |   |
| Extinguishment of Debt per Asset Purchase Agreement                                                   |   | $ | 1,247,155 |   |   | $ | - |   |
| Warrant issued for asset acquisition                                                                  |   | $ | 95,308 |   |   | $ | - |   |
| Common stock issued as collateral for debt                                                            |   | $ | 10,000 |   |   |   |   |   |
| Common stock issued for payables                                                                      |   | $ | 185,000 |   |   | $ | - |   |
| Preferred stock issued for payables                                                                   |   | $ | 47,657 |   |   | $ | - |   |
|                                                                                                  |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.               |

|                                                    |   | December 31, 2009Originally Stated |       |   | December 31, 2009Restated |   |    | December 31, 2009Restatement |   |
|---------------------------------------------------------|--------|------------------------------------|------------|--------|---------------------------|--------|---------|------------------------------|--------|
| Common Stock issued for services                        |   |                               | 3,902,832, |   |                      |   | 1,666   |                         |   |   | 3,904,498 |   |
| Common Stock issued for conversion of debt and services |   |                               | 418,041    |   |                      |   | (1,666) |                         |   |   | 416,375 |   |

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| RegistrantDate: July 24, 2011  |   | Freedom Environmental Services, Inc. By: /s/ Michael Borish |
|-------------------------------------|--------|------------------------------------------------------------------|
|                                |   | Michael Borish                                                   |
|                                |   | Chief Executive Officer (Principal Executive Officer), President |

| Date: July 24, 2011  |   | By: /s/ Michael Borish                                  |
|---------------------------|--------|---------------------------------------------------------|
|                      |   | Michael Borish                                          |
|                      |   | Chief Financial Officer (Principal Accounting Officer), |

| Date: July 24, 2011  |   | By: /s/ Michael Borish |
|---------------------------|--------|------------------------|
|                      |   | Michael Borish         |
|                      |   | Chairman               |

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