|   | [X]  QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|------------------------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION  REPORT  PURSUANT  TO      SECTION 13 OR 15 (d) OF THE  SECURITIES EXCHANGE ACT OF      1934 |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| Nevada                                                                                    | 62-1655508                                   |
|-------------------------------------------------------------------------------------------|----------------------------------------------|
| (State      or other jurisdiction of  incorporation or      organization)  | (IRS      Employer Identification No.)  |

----

| ETERNAL      TECHNOLOGIES GROUP, INC.            |
|--------------------------------------------------|
| 10-QSB      FOR THE QUARTER ENDED MARCH 31, 2008 |
| INDEX                                            |
|                                             |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| PART      I - FINANCIAL STATEMENTS               |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Item      1.                                     | Consolidated      Financial Statements |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   | Unaudited      Consolidated Condensed Balance Sheets at |   |   |   |   |   |   |   |
|                                             |   |   |   |  March      31, 2008 and December 31, 2007 |   |   |   |   |   | 3 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   | Unaudited      Consolidated Condensed Statements of Income |   |   |   |   |   |   |   |
|                                             |   |   |   | for      the three months ended March 31, 2008 and 2007 |   |   |   |   |   | 5 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   | Unaudited      Consolidated Condensed Statements of Cash |   |   |   |   |   |   |   |
|                                             |   |   |   | Flows      for the three months ended March 31, 2008 and 2007 |   |   |   |   |   | 7 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   | Notes      to Unaudited Consolidated Condensed Financial Statements |   |   |   |   |   | 8 |   |
| Item      2.                                     | Management      Discussion and Analysis of Financial Condition and Result of      Operations |   |   |   |   |   | 11 |   |
| Item      3.                                     | Quantitative      and Qualitative Disclosure About Market Risk |   |   |   |   |   | 12 |   |
| Item      4.                                     | Controls      and Procedures |   |   |   |   |   | 13 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| PART      II - OTHER INFORMATION                 |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Item      1.                                     | Legal      Proceedings |   |   |   |   |   | 14 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Item      2.                                     | Unregistered      Sale of Equity Securities and Use of Proceeds |   |   |   |   |   | 14 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Item      3.                                     | Defaults      Upon Senior Securities |   |   |   |   |   | 14 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Item      4.                                     | Submission      of Matters to a Vote of Security Holders |   |   |   |   |   | 14 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Item      5.                                     | Other      Information |   |   |   |   |   | 14 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Item      6.                                     |  Exhibits |   |   |   |   |   | 15 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   | Signatures |   |   |   |   |   | 15 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   | Certifications |   |   |   |   |   | 16 |   |

----

| ETERNAL      TECHNOLOGIES GROUP, INC.                                                                                |   |
|----------------------------------------------------------------------------------------------------------------------|--------|
| UNAUDITED      CONSOLIDATED CONDENSED BALANCE SHEETS                                                                 |   |
| March      31, 2008 and December 31, 2007                                                                            |   |
| (Amounts      in United States Dollars)                                                                              |   |
|                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                 |   | March      31, |   |   | December      31, |   |
|                                                                                                                 |   | 2008 |   |   | 2007 |   |
| ASSETS                                                                                                               |   |   |   |   |   |   |
|  Current      assets:                                                                                           |   |   |   |   |   |   |
|  Cash      and cash equivalents                                                                                 |   | $ | 23,524,291 |   |   | $ | 12,692,479 |   |
|  Short-term      investments                                                                                    |   |   | 14,644,034 |   |   |   | 13,827,174 |   |
|  Accounts      receivable                                                                                       |   |   | 4,884,509 |   |   |   | 6,274,866 |   |
|  Inventories                                                                                                    |   |   | 1,048,876 |   |   |   | 6,312,236 |   |
|  Prepayments      and deposits                                                                                  |   |   | 14,668 |   |   |   | 14,082 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|  Total      current assets                                                                                      |   |   | 44,116,378 |   |   |   | 39,120,837 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|  Property      and equipment, net of accumulated depreciation                                                   |   |   |   |   |   |   |   |   |
|  of      $4,699,958 and $4,296,083 at March 31, 2008 and                                                        |   |   |   |   |   |   |   |   |
|  December      31, 2007, respectively                                                                           |   |   | 7,232,485 |   |   |   | 7,161,773 |   |
|  Land      use rights, net of accumulated amortization                                                          |   |   |   |   |   |   |   |   |
|  of      $2,201,601 and $2,043,266 at March 31, 2008 and                                                        |   |   |   |   |   |   |   |   |
|  December      31, 2007, respectively                                                                           |   |   | 4,890,194 |   |   |   | 4,765,501 |   |
|  Intangible      assets                                                                                         |   |   | 1,404,474 |   |   |   | 6,571,098 |   |
|  Accounts      receivable-Long Term                                                                             |   |   | 3,132,921 |   |   |   | - |   |
|  Patent      held for lease, net of accumulated amortization                                                    |   |   |   |   |   |   |   |   |
|  of      $105,617 at March 31, 2008                                                                             |   |   | 2,429,201 |   |   |   | - |   |
|  Other      Assets                                                                                              |   |   | 18,563,947 |   |   |   | 17,433,0887 |   |
|  Total      assets                                                                                              |   | $ | 81,769,600 |   |   | $ | 75,052,297 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                            |   |   |   |   |   |   |   |   |
|  Current      liabilities:                                                                                      |   |   |   |   |   |   |   |   |
|  Notes      payable                                                                                             |   | $ | 443,366 |   |   | $ | 443,366 |   |
|  Accounts      payable and accrued liabilities                                                                  |   |   | 1,328,181 |   |   |   | 1,294,310 |   |
|  Amounts      due to related parties                                                                            |   |   | 215,732 |   |   |   | 215,295 |   |
|  Payable      due to Income Taxes                                                                               |   |   | 174,667 |   |   |   | 167,764 |   |
|  Deferred      lease revenue                                                                                    |   |   | 712,028 |   |   |   | - |   |
|  Deferred      gain – sale of patents  Derivative      financial instrument liability           |   |   | 1,079,544 53,180 |   |   |   | - |   |
|                                                                                                                 |   | 109,300 |   |
|  Total      current liabilities                                                                                 |   |   | 4,006,698 |   |   |   | 2,230,035 |   |
|  Stockholders'      equity:                                                                                     |   |   |   |   |   |   |   |   |
|  Preferred      shares - $0.001 par value, 5,000,000                                                            |   |   |   |   |   |   |   |   |
|  authorized,      none issued or outstanding                                                                    |   |   | - |   |   |   | - |   |
|  Common      shares - $0.001 par value; 95,000,000                                                              |   |   |   |   |   |   |   |   |
|  authorized;      52,138,034 shares issued and                                                                  |   |   |   |   |   |   |   |   |
|  Outstanding                                                                                                    |   |   | 52,138 |   |   |   | 52,138 |   |
|  Additional      paid - in capital                                                                              |   |   | 21,303,505 |   |   |   | 21,303,505 |   |
|  Retained      earnings                                                                                         |   |   | 46,865,282 |   |   |   | 44,848,766 |   |
| Treasury      shares at cost 1,509,703 shares                                                                        |   |   | (882,090 | ) |   |   | (882,090 | ) |
|  Accumulated      other comprehensive income                                                                    |   |   | 10,424,067 |   |   |   | 7,499,943 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|  Total      stockholders' equity                                                                                |   |   | 77,762,902 |   |   |   | 72,822,262 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|  Total      liabilities and stockholders' equity                                                                |   | $ | 81,769,600 |   |   | $ | 75,052,297 |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these unaudited consolidated      condensed financial statements |   |

----

| ETERNAL      TECHNOLOGIES GROUP, INC.                                                                                |
|----------------------------------------------------------------------------------------------------------------------|
| UNAUDITED      CONSOLIDATED CONDENSED STATEMENTS OF INCOME                                                           |
| For      the Three Months Ended March 31, 2008 and 2007                                                         |
| (Amounts      in United States Dollars)                                                                              |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   | March      31, |
|                                                                                                                 |   |   |   |   | 2008 |   | 2007 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Revenue:                                                                                                             |  $ |   |   |  $ |   |
|                                                                                                                 | Agricultural      and genetics sales |   |         7,753,969 |   |   |         5,726,797 |
|                                                                                                                 | Medical      device sales and services |   |         1,844,022 |   |   |         1,498,065 |
|                                                                                                                 | Land      lease |   |            160,960 |   |   |            297,245 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   | Total      revenue |   |         9,758,951 |   |   |         7,522,107 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Cost      of sales and services                                                                                      |   |   |   |   |   |
|                                                                                                                 | Agricultural      and genetics sales |   |         6,976,900 |   |   |         5,192,527 |
|                                                                                                                 | Medical      device sales and services |   |            585,880 |   |   |            532,182 |
|                                                                                                                 | Land      lease |   |            149,300 |   |   |            137,855 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   | Total      cost of sales and services |   |         7,712,080 |   |   |         5,862,564 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                                                    |   |         2,046,871 |   |   |         1,659,543 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Depreciation      Expense                                                                                            |   |            330,360 |   |   |            136,883 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expenses                                                                    |   |            781,804 |   |   |            669,031 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Income      from operations                                                                                          |   |            934,707 |   |   |            853,629 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Other      income (expense)                                                                                          |   |   |   |   |   |
|                                                                                                                 | Interest      income |   |              46,196 |   |   |              49,885 |
|                                                                                                                 | Gain      on Sale of Assets |   |   |   |            266,302 |   |   |                  (844) |
|                                                                                                                 | Investment      Income |   |            860,546 |   |   |            443,938 |
|                                                                                                                 | Change      in value of derivative |   |   |   |   |   |
|                                                                                                                 |   | financial      instruments |   |               56,120 |   |   |              (38,880) |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                 | Other      income (expense), net |   |         1,229,164 |   |   |            454,099 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Income      before provision for                                                                                     |   |   |   |   |   |
|                                                                                                                 | income      taxes |   |         2,163,871 |   |   |         1,307,728 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Provision      for income taxes                                                                                      |   |            147,354 |   |   |              88,690 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                      |  $ |         2,016,517 |   |  $ |         1,219,038 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Net      income per common share                                                                                     |   |   |   |   |   |
|                                                                                                                 | Basic      and diluted |  $ |                  0.04 |   |  $ |                  0.03 |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Weighted      average number of                                                                                      |   |   |   |   |   |
|                                                                                                                 | Common      shares outstanding, basic and diluted |   |       52,138,034 |   |   |       47,073,579 |
|                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                 |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these unaudited consolidated      condensed financial statements |

----

| ETERNAL      TECHNOLOGIES GROUP, INC.UNAUDITED      CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWSFor      the Three Months Ended March 31, 2008 and 2007(Amounts      in United States Dollars) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                              |   | 2008 |   |   | 2007 |   |
| Cash      from operating activities                                                                                                                                                               |   |   |   |   |   |   |
| Net      income                                                                                                                                                                                   |   | $ | 2,016,517 |   |   | $ | 1,219,038 |   |
| Adjustments      to reconcile net income to net cash                                                                                                                                              |   |   |   |   |   |   |   |   |
|      Provided      by operating activities:                                                                                                                              |   |   |   |   |   |   |   |   |
|      Depreciation      and amortization                                                                                                                                  |   |   | 479,660 |   |   |   | 274,738 |   |
|      Gain      from sales of intangible assets                                                                                                                           |   |   | (266,301 | ) |   |   | - |   |
|      Equity      in earnings  long term investment                                                                                                             |   |   | (623,634 | ) |   |   | (96,508 | ) |
|      Earnings      of short term investment                                                                                                                              |   |   | (236,911 | ) |   |   | - |   |
|      Change      in value of derivative financial instruments                                                                                                            |   |   | (56,120 | ) |   |   | 38,880 |   |
|      Compensatory      stock issuances                                                                                                                                   |   |   | - |   |   |   | 264,000 |   |
|      Changes      in operating assets and liabilities:                                                                                                                   |   |   |   |   |   |   |   |   |
|           Inventories                                                                                                                           |   |   | 5,525,748 |   |   |   | 4,295,433 |   |
|           Accounts      receivable                                                                                                              |   |   | 1,739,485 |   |   |   | 3,218,448 |   |
| Prepayments      and deposits                                                                                                                                                                     |   |   | 706,207 |   |   |   | 196,451 |   |
|           Accounts      payable and accrued expenses                                                                                            |   |   | (20,002 | ) |   |   | 1,614,602 |   |
|                Net      cash provided by operating activities                                                          |   |   | 9,264,649 |   |   |   | 11,025,082 |   |
| Cash      flows from investing  activities:                                                                                                                                             |   |   |   |   |   |   |   |   |
|      Proceeds      from sales of intangible assets                                                                                                                       |   |   | 1,039,560 |   |   |   | - |   |
|      Investment      in Changsha Hong Yuan                                                                                                                               |   |   | - |   |   |   | (1,918,382 | ) |
|               Net      cash provided/(used) by investing activities                                                         |   |   | 1,039,560 |   |   |   | (1,918,382 | ) |
| Cash      flows from financing activities:                                                                                                                                                        |   |   |   |   |   |   |   |   |
|      Capital      contributed                                                                                                                                            |   |   | - |   |   |   | 10,176 |   |
|                Net      cash provided by financing activities                                                          |   |   | - |   |   |   | 10,176 |   |
| Effect      of exchange rate changes on cash                                                                                                                                                      |   |   | 527,603 |   |   |   | 158,566 |   |
| Net      increase in cash and cash equivalents                                                                                                                                                    |   |   | 10,831,812 |   |   |   | 9,275,442 |   |
| Cash      and cash equivalents, beginning of period                                                                                                                                               |   |   | 12,692,479 |   |   |   | 16,024,123 |   |
| Cash      and cash equivalents, end of period                                                                                                                                                     |   | $ | 23,524,291 |   |   | $ | 25,299,565 |   |
| Supplemental      disclosure of cash flow information:                                                                                                                                            |   |   |   |   |   |   |   |   |
|      Interest      paid                                                                                                                                                  |   | $ | - |   |   | $ | - |   |
|      Tax      paid                                                                                                                                                       |   | $ | 147,354 |   |   | $ | 88,690 |   |
| Non-cash      investing  and financing activities                                                                                                                                       |   |   |   |   |   |   |   |   |
|      Amounts      receivable from sale of intangible assets                                                                                                              |   | $ | 4,172,482 |   |   | $ | - |   |
|      Deferred      gain from sale of intangible assets                                                                                                                   |   | $ | 1,351,666 |   |   | $ | - |   |

----

----

| ETERNAL      TECHNOLOGIES GROUP, INC.                              |
|--------------------------------------------------------------------|
| NOTES      TO UNAUDITED CONSOLIDATED CONDENSED FINANCIALSTATEMENTS |
| For      the Three Months Ended March 31, 2008 and 2007            |
| (Amounts      in United States Dollars)                            |

| 1. | REPORTING      ENTITY |
|----|-----------------------|

| 2. | CONDENSED      FINANCIAL STATEMENTS AND FOOTNOTES |
|----|---------------------------------------------------|

----

| ETERNAL      TECHNOLOGIES GROUP, INC.                              |
|--------------------------------------------------------------------|
| NOTES      TO UNAUDITED CONSOLIDATED CONDENSED FINANCIALSTATEMENTS |
| For      the Three Months Ended March 31, 2008 and 2007            |
| (Amounts      in United States Dollars)                            |

| 3. | CASH      AND CASH EQUIVALENTS |
|----|--------------------------------|

| 4. | OTHER      ASSETS |
|----|-------------------|

| 5. | INCOME      TAXES |
|----|-------------------|

----

| 5. | INCOME      TAXES, continued |
|----|------------------------------|

|                                                          | 2008      | 2007    |
|---------------------------------------------------------------|-----------|---------|
|                                                          | Amount    | Percent | Amount | Percent |
| Income      taxes at federal statutory rate                   | $648,733  | 34%     | $384,318 | 34% |
| Effect      of United States and British Virgin Island losses | 31,123    | 2%      | 23,992 | 2% |
| Income      tax exemption in the Peoples Republic of China    | (410,423) | (22%)   | (221,641) | (20)% |
| Difference      in United States and foreign rates            | (122,079) | (6%)    | (97,979) | (9)% |
| Income      tax expense                                       | 147,354   | 8%      | $88,690 | 7% |

| 6. | SEGMENT      INFORMATION |
|----|--------------------------|

| 2007                               | Agricultural      Genetics |  Leasing                                                             | MedicalDevices                                            | Other     | Total      |
|------------------------------------|----------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------|-----------|------------|
| Revenues                           | 5,726,797                  | 297,245                                                                   | 1,498,065                                                 | -         | 7,522,107  |
| Income      from operations        | 185,763                    | 159,390                                                                   | 588,450                                                   | (79,974)  | 853,629    |
| Depreciation      and amortization | 66,378                     |    137,855                                                 | 70,505                                                    | -         | 274,738    |
| Total      assets                  | 42,610,522                 | 10,187,555                                                                | 8,738,219                                                 | 1,928,018 | 63,465,314 |
|                               |                       |                                                                      |                                                      |      |       |
|  2008                         |                       |                                                                      |                                                      |      |       |
| Revenues                           | 7,753,969                  |            160,960 |         1,844,022 | -         | 9,758,951  |
| Income      from operations        | 456,464                    | 11,660                                                                    | 626,446                                                   | (159,863) | 934,707    |
| Depreciation      and amortization |  -                    |  149,300                                                             | 330,360                                                   | -         | 479,660    |
| Total      assets                  | 50,283,984                 | 10,619,967                                                                | 15,275,813                                                | 5,589,836 | 81,769,600 |
|                               |                       |                                                                      |                                                      |      |       |

----

----

|                                                 | Three Months Ended                                 |
|------------------------------------------------------|----------------------------------------------------|
| Category                                             |       March 31, 2008 |          March 31, 2007 |
| Lamb      Meat                                       | $2,653,407                                         | $1,724,923 |
| Embryo’s                                       | 5,100,562                                          | 4,001,874 |
| Land      Lease                                      | 160,960                                            | 297,245 |
| E-Sea                                                | 1,844,022                                          | 1,498,065 |
|       Total      sales | $9,758,951                                         | $7,522,107 |

|                                                   | Three Months Ended                                 |
|--------------------------------------------------------|----------------------------------------------------|
| Category                                               |       March 31, 2008 |          March 31, 2007 |
| Lamb      Meat                                         | $1,959,954                                         | $1,254,992 |
| Embryos                                                | 5,016,946                                          | 3,937,535 |
| Land      Lease                                        | 149,300                                            | 137,855 |
| E-Sea                                                  | 585,880                                            | 532,182 |
|      Total      Cost of Sales | $7,712,080                                         | $5,862,564 |

|                                  | Three Months Ended |
|---------------------------------------|--------------------|
| Category                              | March 31, 2008     |       March 31,,2007 |
| Lamb      Meat                        | 26%                | 27% |
| Embryos                               | 2%                 | 2% |
| Land      Lease                       | 7%                 | 54% |
| E-Sea                                 | 68%                | 40% |
|      Overall | 21.0%              | 22% |

----

----

----

----

| EXHIBIT      NO. |   | IDENTIFICATION      OF EXHIBIT                                                                                                  |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
| 31.1             |   | Certification      Pursuant to 18 U.S.C Section 1350, as adopted Pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002 |
| 31.2             |   | Certification      Pursuant to 18 U.S.C Section 1350, as adopted Pursuant to Section 302 of      the Sarbanes-Oxley Act of 2002 |
| 32.1             |   | Certification      Pursuant to 18 U.S.C Section 1350, as adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002 |
| 32.2             |   | Certification      Pursuant to 18 U.S.C Section 1350, as adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002 |

|                    | ETERNAL      TECHNOLOGIES GROUP, INC. |                         |
|-------------------------|---------------------------------------|------------------------------|
|                    |                                  |                         |   |
| Date:      May 13, 2008 | By:                                   | /s/ Jiansheng      Wei  |   |
|                    |                                  | Jiansheng      Wei      |   |
|                    |                                  | Chief      Executive Officer |   |
|                    |                                  |                         |   |

|                    |        |                         |
|-------------------------|--------|------------------------------|
|                    |   |                         |   |
| Date:      May 13, 2008 | By:    | /s/ Zheng      Shen     |   |
|                    |   | Zheng      Shen              |   |
|                    |   | Chief      Financial Officer |   |
|                    |   |                         |   |

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| 1. | I  have  reviewed  this   quarterly   report  on  Form  10-Q  of  Eternal      Technologies Group, Inc.; |
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| 2. | Based      on my knowledge, this report does not contain any untrue statement of a      material  fact or omit to state      a  material  fact  necessary  to      make the statements made, in light of the circumstances  under      which such statements were      made,  not  misleading  with  respect  to      the  period  covered by this  report; |
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| 3. | Based      on      my  knowledge,  the  financial  statements,  and  other  financial      information  included  in  this  report,  fairly  present  in      all  material respects the      financial  condition,  results of operations and cash      flows of the registrant as of, and for, the periods presented in this      report; |
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| 4. | The  registrant's  other  certifying  officers  and      I are  responsible  for establishing and maintaining      disclosure controls and procedures (as defined in Exchange Act      Rules  13a-15(e) and 15d-15(e))  and      internal  control over      financial  reporting  (as  defined  in  Exchange  Act      Rules  13a-15(f)  and 15d-15(f)) for the registrant      and have: |
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| (a) | Designed      such disclosure controls and procedures, or caused such disclosure      controls and  procedures to be designed  under      our  supervision,  to ensure      that  material  information  relating  to  the  registrant,  including  its      consolidated  subsidiaries,  is made  known      to us by others  within  those      entities,  particularly  during the  period      in which  this  report is being    prepared; |
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| (b) | Designed      such  internal  control  over  financial  reporting,  or      caused such      internal  control  over  financial  reporting  to  be  designed  under  our      supervision,  to provide reasonable  assurance      regarding the reliability of      financial  reporting  and  the  preparation  of  financial  statements  for      external  purposes  in  accordance  with  generally   accepted   accounting      principles; |
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| (c) | Evaluated      the  effectiveness  of the      registrant's  disclosure  controls and      procedures  and  presented  in  this  report  our  conclusions   about  the      effectiveness of the disclosure controls and procedures,  as of      the end of the period covered by this report based on such evaluation;      and |
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| (d) | Disclosed      in this report any change in the registrant's  internal control      over financial  reporting that occurred during the registrant's      most recent fiscal  quarter      (the  registrant's  fourth fiscal quarter in the case      of an annual report) that      has  materially  affected,  or is      reasonably  likely to      materially  affect,  the  registrant's   internal  control  over  financial      reporting; and |
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| 5. | The      registrant's other certifying  officers and I have      disclosed,  based on our most recent evaluation of internal      control over financial reporting, to the registrant's auditors and the      audit committee of the registrant's board of directors (or persons      performing the equivalentfunctions): |
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| (a) | All  significant  deficiencies  and  material  weaknesses  in      the design or operation of internal control over financial reporting which      are reasonably likely to adversely affect      the  registrant's  ability to      record,  process, summarize and report financial information;      and |
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|   | (b)  Any      fraud, whether or not material, that involves management or other      employees who have a significant role in the registrant's internal control      over financial reporting. |
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----

| 1. | I  have  reviewed  this   quarterly   report  on  Form  10-Q  of  Eternal      Technologies Group, Inc.; |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Based      on my knowledge, this report does not contain any untrue statement of a      material  fact or omit to state      a  material  fact  necessary  to      make the statements made, in light of the circumstances  under      which such statements were      made,  not  misleading  with  respect  to      the  period  covered by this  report; |
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| 3. | Based      on      my  knowledge,  the  financial  statements,  and  other  financial      information  included  in  this  report,  fairly  present  in      all  material respects the      financial  condition,  results of operations and cash      flows of the registrant as of, and for, the periods presented in this      report; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The  registrant's  other  certifying  officers  and      I are  responsible  for establishing and maintaining      disclosure controls and procedures (as defined in Exchange Act      Rules  13a-15(e) and 15d-15(e))  and      internal  control over      financial  reporting  (as  defined  in  Exchange  Act      Rules  13a-15(f)  and 15d-15(f)) for the registrant      and have: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Designed      such disclosure controls and procedures, or caused such      disclosure     controls and  procedures      to be designed  under our  supervision,  to      ensure      that  material  information  relating  to  the  registrant,  including  its      consolidated  subsidiaries,  is made  known      to us by  others  within  those      entities,  particularly  during the  period      in which  this  report is being    prepared; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Designed      such  internal  control  over  financial  reporting,  or      caused such      internal  control  over  financial  reporting  to  be  designed  under  our      supervision,  to provide reasonable  assurance      regarding the reliability of      financial  reporting  and  the  preparation  of  financial  statements  for      external  purposes  in  accordance  with  generally   accepted   accounting      principles; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Evaluated      the  effectiveness  of the      registrant's  disclosure  controls and      procedures  and  presented  in  this  report  our  conclusions   about  the      effectiveness of the disclosure controls and procedures,  as of      the end of the period covered by this report based on such evaluation;      and |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | Disclosed      in this report any change in the      registrant's  internal  control over financial      reporting that occurred during the registrant's most recent      fiscal  quarter (the  registrant's  fourth      fiscal quarter in the case of an annual report) that has      materially  affected, or is reasonably likely to materially      affect,      the  registrant's   internal  control  over  financial      reporting; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The      registrant's other certifying  officers and I have      disclosed,  based on our most recent evaluation of internal      control over financial reporting, to the registrant's auditors and the      audit committee of the registrant's board of directors (or persons      performing the equivalentfunctions): |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | All  significant  deficiencies  and  material  weaknesses  in      the design or operation of internal control over financial reporting which      are reasonably likely to adversely  affect      the  registrant's  ability to      record,  process, summarize and report financial information;      and |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)  Any      fraud, whether or not material, that involves management or other      employees who have a significant role in the registrant's internal control      over financial reporting. |
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----

| (i) | the  Quarterly  Report      on Form  10-Q of the  Company  for the      quarterly period ended March 31, 2008, as filed with the Securities and      Exchange  Commission on the date hereof      (the  "Report")  fully  complies with      the  requirements  of section 13(a) or 15(d) of the      Securities Exchange Act of 1934;and |
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| (ii) | the  information  contained      in the Report fairly  presents,  in all material      respects, the financial condition and results of operations of the      Company. |
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| (i) | the  Quarterly  Report      on Form  10-Q of the  Company  for the      quarterly period ended March 31, 2008, as filed with the Securities and      Exchange  Commission on  the date hereof      (the  "Report")  fully  complies with      the  requirements  of  section 13(a) or      15(d) of the Securities Exchange Act of 1934;  and |
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| (ii) | the      information  contained in the Report      fairly  presents,  in all material respects, the      financial condition and results of operations of the    Company. |
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