----

----

|   | Nevada                               | 91-1980526                                |   |
|--------|--------------------------------------|-------------------------------------------|--------|
|   | (Jurisdiction      of Incorporation) | (I.R.S.      Employer Identification No.) |   |

|   | 604-700      West Pender Street, Vancouver, BC | V6C      1G8    |   |
|--------|------------------------------------------------|-----------------|--------|
|   | (Address      of principal executive offices)  | (Zip      Code) |   |

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----

| TURNER      VALLEY OIL & GAS, INC.                                                                              |   |
|---------------------------------------------------------------------------------------------------------------------|--------|
| (A      Development Stage Company)                                                                                  |   |
| Consolidated      Balance Sheets                                                                                    |   |
|                                                                                                                |   |   |   |   |   |   |
| ASSETS                                                                                                              |   |
|                                                                                                                |   | September      30 |   |   | December      31, |   |
|                                                                                                                |   | 2008 |   |   | 2007 |   |
|                                                                                                                |   | Unaudited |   |   |   |   |
| CURRENT      ASSETS                                                                                                 |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |
| Cash                                                                                                                |   | $ | 6,506 |   |   | $ | 75,688 |   |
| Accounts      receivable                                                                                            |   |   | 17,904 |   |   |   | 8,088 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Total      Current Assets                                                                                           |   |   | 24,410 |   |   |   | 83,776 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| OIL      AND GAS PROPERTIES USING  FULL COST ACCOUNTING                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Properties      subject to amortization                                                                             |   |   | 10,675 |   |   |   | 18,175 |   |
| Unproved      properties                                                                                            |   |   | - |   |   |   | - |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Net      Oil and Gas Properties                                                                                     |   |   | 10,675 |   |   |   | 18,175 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| OTHER      ASSETS                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Investments      - Marketable Securities available for sale                                                         |   |   | - |   |   |   | - |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Total      Other Assets                                                                                             |   |   | - |   |   |   | - |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                   |   | $ | 35,085 |   |   | $ | 101,951 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY      (DEFICIT)                                                                 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Accounts      payable                                                                                               |   | $ | 35,822 |   |   | $ | 4,211 |   |
| Notes      payable, related party                                                                                   |   |   | 23,658 |   |   |   | 23,658 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Total      Current Liabilities                                                                                      |   |   | 59,480 |   |   |   | 27,869 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Total      Liabilities                                                                                              |   |   | 59,480 |   |   |   | 27,869 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Other      Commitments or Contingencies                                                                             |   |   | - |   |   |   | - |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY (DEFICIT)                                                                                 |   |   |   |   |   |   |   |   |
| Common      stock, 100,000,000 shares authorized of $0.001 par value, 61,335,984      shares issued and outstanding |   |   | 61,337 |   |   |   | 61,337 |   |
| Capital      in excess of par value                                                                                 |   |   | 4,741,873 |   |   |   | 4,741,873 |   |
| Accumulated      other comprehensive income                                                                         |   |   | (3,357 | ) |   |   | (3,356 | ) |
| Deficit      accumulated during the development stage                                                               |   |   | (4,824,248 | ) |   |   | (4,725,772 | ) |
|                                                                                                                |   |   |   |   |   |   |   |   |
| Total      Stockholders' Equity (Deficit)                                                                           |   |   | (24,395 | ) |   |   | 74,082 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY                                                                     |   | $ | 35,085 |   |   | $ | 101,951 |   |

----

| TURNER      VALLEY OIL & GAS, INC.                                     |   |
|----------------------------------------------------------------------------|--------|
| (A      Development Stage Company)                                         |   |
| Consolidated      Statements of Operations and Comprehensive Income/(Loss) |   |
|                                                                       |   |
|                                                                       |   | For      the Three Months      EndedSeptember      30, |   |   | For      the Nine months      EndedSeptember      30, |   |   | From      Inception on      April      21, 1999 Through September,      30 |   |
|                                                                       |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |
| REVENUE                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Royalties      received                                                    |   | $ | 5,205 |   |   | $ | 1,121 |   |   | $ | 8,946 |   |   | $ | 1,522 |   |   | $ | 33,985 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of production                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51,753 |   |
| Depletion                                                                  |   |   | 2,500 |   |   |   | 2,500 |   |   |   | 7,500 |   |   |   | 7,500 |   |   |   | 38,267 |   |
| Abandonment      of natural gas and oil property                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 525,544 |   |
| General      and administrative                                            |   |   | 6,643 |   |   |   | 53,458 |   |   |   | 99,924 |   |   |   | 157,031 |   |   |   | 5,037,887 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Expenses                                                        |   |   | 9,143 |   |   |   | 55,958 |   |   |   | 107,424 |   |   |   | 164,531 |   |   |   | 5,653,451 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      OPERATING LOSS                                                    |   |   | (3,938 | ) |   |   | (54,837 | ) |   |   | (98,478 | ) |   |   | (163,009 | ) |   |   | (5,619,466 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSE)                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain      on sale of investments                                           |   |   |   |   |   |   | 39,669 |   |   |   | - |   |   |   | 97,799 |   |   |   | 798,510 |   |
| Rent      Received                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest      expense                                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,292 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Other Income (Expense)                                          |   |   | - |   |   |   | 39,669 |   |   |   | - |   |   |   | 97,799 |   |   |   | 795,218 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      PROFIT/(LOSS) BEFORE INCOME TAX                                   |   | $ | (3,938 | ) |   | $ | (15,168 | ) |   | $ | (98,478 | ) |   | $ | (65,210 | ) |   | $ | (4,824,248 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax                                                            |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      PROFIT/(LOSS)                                                     |   | $ | (3,938 | ) |   | $ | (15,168 | ) |   | $ | (98,478 | ) |   | $ | (65,210 | ) |   | $ | (4,824,248 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      LOSS PER COMMON SHARE                                           |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                  |   |   | 61,335,984 |   |   |   | 58,535,984 |   |   |   | 61,335,984 |   |   |   | 58,535,984 |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      INCOME (LOSS)                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                                                              |   | $ | (3,938 | ) |   | $ | (15,168 | ) |   | $ | (98,478 | ) |   | $ | (65,210 | ) |   | $ | (4,824,248 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      COMPREHENSIVE INCOME (LOSS)                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      Gain on Marketable Securities                              |   |   |   |   |   |   | 21,347 |   |   |   | - |   |   |   | (407,310 | ) |   |   | (725 | ) |
| Foreign      Currency Translation                                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 725 |   |   |   | (3,357 | ) |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      INCOME (LOSS)                                           |   | $ | (3,938 | ) |   | $ | 6,179 |   |   | $ | (98,478 | ) |   | $ | (471,795 | ) |   | $ | (4,828,330 | ) |

----

| Turner Valley      Oil & Gas Corporation(A      Development Stage Company)Statement      of Stockholders' Equity and Comprehensive IncomeFor      the period from inception to September 30, 2008  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                        |   |   |   |   |   |   |   | Additional |   |   | Comprehensive |   |   | Retained |   |   | Subscription |   |
|                                                                                                                                                                                                        |   | Shares |   |   | Amount |   |   | Paid-in-Capital |   |   | Income/(Loss) |   |   | Earnings |   |   | Receivable |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at inception April 21, 1999                                                                                                                                                                    |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services during 1999                                                                                                                                                                 |   |   | 41,080 |   |   |   | 41 |   |   |   | 5,094 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for cash during 1999                                                                                                                                                                     |   |   | 16,000 |   |   |   | 16 |   |   |   | 99,984 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss for the period ended December 31, 1999                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (96,935 | ) |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 1999                                                                                                                                                                           |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (96,935 | ) |   |   | 0 |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss for the period ended December 31, 2000                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (27,242 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2000                                                                                                                                                                           |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (124,177 | ) |   |   | 0 |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss for the period ended December 31, 2001                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (65,380 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2001                                                                                                                                                                           |   |   | 57,080 |   |   |   | 57 |   |   |   | 105,078 |   |   |   | 0 |   |   |   | (189,557 | ) |   |   | 0 |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for debt reduction during 2002                                                                                                                                                           |   |   | 8,000 |   |   |   | 8 |   |   |   | 99,992 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services during 2002                                                                                                                                                                 |   |   | 2,190,150 |   |   |   | 2,190 |   |   |   | 1,092,885 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss for the period ended December 31, 2002                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,240,008 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2002                                                                                                                                                                           |   |   | 2,255,230 |   |   |   | 2,255 |   |   |   | 1,297,955 |   |   |   | 0 |   |   |   | (1,429,565 | ) |   |   | 0 |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services at $.02 per share                                                                                                                                                           |   |   | 1,500,000 |   |   |   | 1,500 |   |   |   | 298,500 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rounding      of shares from reverse split                                                                                                                                                                  |   |   | 2,000 |   |   |   | 2 |   |   |   | (2 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for accounts payable at $.05 Per share                                                                                                                                                   |   |   | 8,000,000 |   |   |   | 8,000 |   |   |   | 392,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services at $.015 per share                                                                                                                                                          |   |   | 31,729,200 |   |   |   | 31,729 |   |   |   | 444,209 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services at $.015 per share                                                                                                                                                          |   |   | 9,487,504 |   |   |   | 9,488 |   |   |   | 132,825 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.05 per share                                                                                                                                           |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 98,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.05 per share                                                                                                                                           |   |   | 650,000 |   |   |   | 650 |   |   |   | 31,850 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation      of Common Stock                                                                                                                                                                           |   |   | (16,691,520 | ) |   |   | (16,692 | ) |   |   | (220,459 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for cash at $.05 per share                                                                                                                                                               |   |   | 3,000,000 |   |   |   | 3,000 |   |   |   | 147,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for cash at $.30 per share                                                                                                                                                               |   |   | 100,000 |   |   |   | 100 |   |   |   | 29,900 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for cash at $.35 per share                                                                                                                                                               |   |   | 528,570 |   |   |   | 529 |   |   |   | 184,471 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      Currency Translation                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,718 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss for the period ended December 31, 2003                                                                                                                                                        |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   |   |   |   |   | (1,137,760 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2003                                                                                                                                                                           |   |   | 42,560,984 |   |   |   | 42,561 |   |   |   | 2,836,249 |   |   |   | (1,718 | ) |   |   | (2,567,325 | ) |   |   | 0 |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.20 per share                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.08 per share                                                                                                                                           |   |   | 1,597,500 |   |   |   | 1,598 |   |   |   | 126,202 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.08 per share                                                                                                                                           |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | 79,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.11 per share      9/30/2004                                                                                                                            |   |   | 85,000 |   |   |   | 85 |   |   |   | 9,265 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.20 per share                                                                                                                                           |   |   | 1,385,000 |   |   |   | 1,385 |   |   |   | 275,615 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for Cash at $.05 per share                                                                                                                                                               |   |   | 975,000 |   |   |   | 975 |   |   |   | 47,775 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription      Recievable                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (48,750 | ) |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      Currency Translation                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,367 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss for the period ended December 31, 2004                                                                                                                                                        |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | (784,001 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2004                                                                                                                                                                           |   |   | 48,535,984 |   |   |   | 48,537 |   |   |   | 3,559,673 |   |   |   | (4,085 | ) |   |   | (3,351,325 | ) |   |   | (48,750 | ) |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.13 per share                                                                                                                                           |   |   | 2,850,000 |   |   |   | 2,850 |   |   |   | 367,650 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.13 per share                                                                                                                                           |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 258,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      Currency Translation                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (725 | ) |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscription      Recievable                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 48,750 |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss for the period ended December 31, 2005                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (472,917 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2005                                                                                                                                                                           |   |   | 53,385,984 |   |   |   | 53,387 |   |   |   | 4,185,323 |   |   |   | (4,810 | ) |   |   | (3,824,242 | ) |   |   | 0 |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.13 per share                                                                                                                                           |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | 258,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.08 per share                                                                                                                                           |   |   | 1,600,000 |   |   |   | 1,600 |   |   |   | 126400 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued pursuant to S-8 registration at $.08 per share                                                                                                                                           |   |   | 1,450,000 |   |   |   | 1,450 |   |   |   | 114,550 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued under Rule 144 at $0.13 per share                                                                                                                                                        |   |   | 100,000 |   |   |   | 100 |   |   |   | 12,900 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income for the year ended December 31, 2006                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 500,093 |   |   |   | (287,236 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      as at December 31, 2006                                                                                                                                                                        |   |   | 58,535,984 |   |   |   | 58,537 |   |   |   | 4,697,173 |   |   |   | 495,283 |   |   |   | (4,111,478 | ) |   |   | 0 |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realization      of unrealized gains on investments                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (500,093 | ) |   |   |   |   |   |   |   |   |
| Foreign      currency transalation                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,453 |   |   |   |   |   |   |   |   |   |
| Issuance      of S-8 stock for services at $0.01                                                                                                                                                            |   |   | 1,500,000 |   |   |   | 1,500 |   |   |   | 13,500 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of S-8 stock for services at $0.025                                                                                                                                                           |   |   | 1,300,000 |   |   |   | 1,300 |   |   |   | 31,200 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income/(loss) for the year ended December 31, 2007                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (614,292 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      as at December 31, 2007                                                                                                                                                                        |   |   | 61,335,984 |   |   |   | 61,337 |   |   |   | 4,741,873 |   |   |   | (3,357 | ) |   |   | (4,725,770 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income/(loss) for the nine months ended September 30,      2008                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (98,478 | ) |   |   |   |   |
|                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      as at September 30, 2008                                                                                                                                                                       |   |   | 61,335,984 |   |   |   | 61,337 |   |   |   | 4,741,873 |   |   |   | (3,357 | ) |   |   | (4,824,248 | ) |   |   | 0 |   |

----

| TURNER      VALLEY OIL & GAS, INC.                                                           |   |
|--------------------------------------------------------------------------------------------------|--------|
| (A      Development Stage Company)                                                               |   |
| Consolidated      Statements of Cash Flows                                                       |   |
|                                                                                             |   |
|                                                                                             |   |   |   |   |   |   |   | From |   |
|                                                                                             |   |   |   |   |   |   |   | Inception      on |   |
|                                                                                             |   |   |   |   |   |   |   | April      21, 1999 |   |
|                                                                                             |   | For      the 9 months Ended |   |   | Through |   |
|                                                                                             |   | September      30, |   |   | September      30, |   |
|                                                                                             |   | 2008 |   |   | 2007 |   |   | 2008 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                       |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                    |   | $ | (98,478 | ) |   | $ | (65,210 | ) |   | $ | (4,824,248 | ) |
| Adjustments      to reconcile net loss to net cash  used in operating      activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Depletion                                                                                        |   |   | 7,500 |   |   |   | 7,500 |   |   |   | 38,267 |   |
| Loss      on abandonment of property                                                             |   |   | - |   |   |   | - |   |   |   | 551,025 |   |
| Gain      on sale of Investment                                                                  |   |   | - |   |   |   | (97,799 | ) |   |   | (834,085 | ) |
| Common      stock issued for services rendered                                                   |   |   | - |   |   |   | 15,000 |   |   |   | 4,289,460 |   |
| Non-cash      Effect from Foreign Currency Translation and change in comphrehensive      income  |   |   | - |   |   |   | - |   |   |   | 1,274 |   |
| Changes      in operating assets and liabilities:                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase      (Decrease) in bank Overdraft                                                       |   |   | - |   |   |   | - |   |   |   | (4,085 | ) |
| (Increase)      Decrease in accounts receivable                                                  |   |   | (9,815 | ) |   |   | 1,394 |   |   |   | (10,536 | ) |
| Increase      (Decrease) in accounts payable - related Party                                     |   |   |   |   |   |   | - |   |   |   | 23,659 |   |
| Increase      in accounts payable and accrued expenses                                           |   |   | 31,611 |   |   |   | 11,977 |   |   |   | 327,201 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Used in Operating Activities                                                       |   |   | (69,182 | ) |   |   | (127,138 | ) |   |   | (442,068 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from sale of investments                                                           |   |   | - |   |   |   | 141,640 |   |   |   | 1,073,082 |   |
| Investing      in new Oil & Gas working interests                                            |   |   | - |   |   |   | - |   |   |   | (825,544 | ) |
| Expenditures      for oil and gas property development                                           |   |   |   |   |   |   | - |   |   |   | (312,714 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Used in Investing Activities                                                       |   |   | - |   |   |   | 141,640 |   |   |   | (65,176 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from issuance of common stock                                                      |   |   | - |   |   |   | - |   |   |   | 465,000 |   |
| Receipt      of subscription receivable                                                          |   |   | - |   |   |   | - |   |   |   | 48,750 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Provided by Financing Activities                                                   |   |   | - |   |   |   | - |   |   |   | 513,750 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH                                                             |   |   | (69,182 | ) |   |   | 14,502 |   |   |   | 6,506 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                            |   |   | 75,688 |   |   |   | - |   |   |   | - |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH      AND CASH EQUIVALENTS AT END OF PERIOD                                                  |   | $ | 6,506 |   |   | $ | 14,502 |   |   | $ | 6,506 |   |

----

|                                                  |   | For      the nine months ended September 30 |   |   | From      Inception on April 21, 1999 Through September 30, |   |
|-------------------------------------------------------|--------|---------------------------------------------|--------|--------|-------------------------------------------------------------|--------|
|                                                  |   | 2008                                        |   |   | 2007                                                        |   |   | 2008 |   |
|                                                  |   |                                        |   |   |                                                        |   |   |   |   |
| SUPPLEMENTAL      CASH FLOW INFORMATION               |   |                                        |   |   |                                                        |   |   |   |   |
|                                                  |   |                                        |   |   |                                                        |   |   |   |   |
| CASH      PAID FOR:                                   |   |                                        |   |   |                                                        |   |   |   |   |
|                                                  |   |                                        |   |   |                                                        |   |   |   |   |
| Interest                                              |   | $                                           | -      |   |                                                        | $      | - |   |   | $ | - |   |
| Income      taxes                                     |   | $                                           | -      |   |                                                        | $      | - |   |   | $ | - |   |
|                                                  |   |                                        |   |   |                                                        |   |   |   |   |   |   |   |
| NON-CASH      FINANCING ACTIVITIES                    |   |                                        |   |   |                                                        |   |   |   |   |   |   |   |
|                                                  |   |                                        |   |   |                                                        |   |   |   |   |   |   |   |
| Common      stock issued for services rendered        |   | $                                           | -      |   |                                                        | $      | 15,000 |   |   | $ | 3,724,460 |   |
| Common      stock issued for retirement of payables   |   | $                                           | -      |   |                                                        | $      | - |   |   | $ | 532,500 |   |
| Transfer      of working interest for payment of debt |   | $                                           | -      |   |                                                        | $      | 400,000 |   |   | $ | 400,000 |   |

----

| NOTE      1 - | BASIS      OF PRESENTATION |
|---------------|----------------------------|

| NOTE      2 - | LOSS      PER SHARE |
|---------------|---------------------|

|                                                           |   | For      the Three Months Ended September      30, |       |
|----------------------------------------------------------------|--------|----------------------------------------------------|------------|
|                                                           |   | 2008                                               |       |   | 2007 |   |
| Net      (loss) available to common shareholders               |   | $                                                  | (3,938     | ) |   | $ | (15,168 | ) |
|                                                           |   |                                               |       |   |   |   |   |   |
| Weighted      average shares                                   |   |                                               | 61,335,984 |   |   |   | 58,535,984 |   |
|                                                           |   |                                               |       |   |   |   |   |   |
| Basic      income per share (based on weighted average shares) |   | $                                                  | 0.00       |   |   | $ | 0.00 |   |

|                                                           |   | For      the Nine Months Ended September      30, |       |
|----------------------------------------------------------------|--------|---------------------------------------------------|------------|
|                                                           |   | 2008                                              |       |   | 2007 |   |
| Net      (loss) available to common shareholders               |   | $                                                 | (98,478    | ) |   | $ | (65,210 | ) |
|                                                           |   |                                              |       |   |   |   |   |   |
| Weighted      average shares                                   |   |                                              | 61,335,984 |   |   |   | 58,535,984 |   |
|                                                           |   |                                              |       |   |   |   |   |   |
| Basic      income per share (based on weighted average shares) |   | $                                                 | 0.00       |   |   | $ | 0.00 |   |

----

| NOTE      3 - | OIL      AND GAS PROPERTIES |
|---------------|-----------------------------|

----

| NOTE      4 – | GOING      CONCERN |
|---------------------|--------------------|

----

|  | (A)   | PLAN OF      OPERATION. |
|--|-----------------|-------------------------|

----

----

----

Exhibit 31

Exhibit 32

----

| /s/Kulwant      Sandher                        |   | /s/Donald      Jackson Wells      |   | /s/Joseph      Kane      |
|------------------------------------------------|--------|-----------------------------------|--------|--------------------------|
| Kulwant      Sandher President      / CFO |   | Donald      Jackson Wellsdirector |   | Joseph      Kanedirector |

----