----

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|  DELAWARE                                                       |   52-2195605                           |
|----------------------------------------------------------------------|--------------------------------------------------|
|  (State or other jurisdiction of incorporation or organization) |   (I.R.S. Employer Identification No.) |

|  CAMELOT ENTERTAINMENT GROUP, INC.                   |
|-----------------------------------------------------------|
|  8001 Irvine Center Drive Suite 400                  |
|  Irvine, CA 92618                                    |
|  (Address of principal executive offices) (Zip Code) |
|                                                      |
|  (949) 754-3030                                      |
|  Registrant's telephone number, including area code  |

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|  ITEM |                                                                                                | Page   |
|------------|-----------------------------------------------------------------------------------------------------|--------|
|       |                                                                                                |   |
|       |  PART I                                                                                        |   |
|       |                                                                                                |   |
|  1.   |  Business                                                                                      | 1      |
| 1A.        |  Risk Factors                                                                                  | 20     |
| 1B.        |  Unresolved Staff Comments                                                                     | 27     |
|  2.   |  Properties                                                                                    | 27     |
|  3.   |  Legal Proceedings                                                                        | 28     |
|       |                                                                                                |   |
|       |  PART II                                                                                       |   |
|       |                                                                                                |   |
|  5.   |  Market for Common Equity and Related Stockholder Matters                                 | 29     |
|  6.   |  Selected Financial Data                                                                       | 34     |
|  7.   |  Management's Discussion and Analysis and Results of Operations                                | 34     |
| 7A.        |  Market Risk Disclosures                                                                       | 49     |
|  8.   |  Financial Statements                                                                     | 49     |
|  9.   |  Changes in & Disagreements with Accountants on Accounting and Financial Disclosures  | 49     |
|  9A.  |  Controls and Procedures                                                                  | 50     |
| 9B.        |  Other Information                                                                             | 51     |
|       |                                                                                                |   |
|       |  PART III                                                                                      |   |
|       |                                                                                                |   |
|  10.  |  Directors, Executive Officers, Promoters and Control Persons                                  | 51     |
|  11.  |  Executive Compensation                                                                        | 53     |
|  12.  |  Security Ownership of Certain Beneficial Owners and Management                                | 55     |
|  13.  |  Certain Relationships and Related Transactions and Director Independence                 | 59     |
|  14.  |  Principal Accountant Fees and Services                                                        | 60     |
|  15.  |  Exhibits, Financial Statement Schedules                                                       | 61     |
|  F-1  |  Financial Statements with Footnotes                                                           | F-1    |
|  S-1  |  Signatures                                                                               | S-1    |

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|   | · | Camelot Film Group, consisting principally of feature film, television, home video, and digital media production and distribution, including Camelot Distribution Group and DarKnight Pictures; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Camelot Studio Group, consisting principally of site acquisition, design, development and operation of Camelot Studio locations domestically and internationally; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Camelot Production Services Group, consisting principally of consulting, education, finance, production support and technology services. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Education |
|--------|--------|-----------|

|   | · | Infrastructure |
|--------|--------|----------------|

|   | · | Utilization |
|--------|--------|-------------|

|   | · | Opportunity, which leads to Success |
|--------|--------|-------------------------------------|

----

----

|   | § | Camelot Film Group (“CFG”)                |
|--------|--------|-------------------------------------------------------|
|   | § | Camelot Studio Group (“CSG”)              |
|   | § | Camelot Production Services Group (“CPS”) |

|   | · | Camelot Films®                           |
|--------|--------|-----------------------------------------------|
|   | · | Camelot Features                              |
|   | · | Camelot Television Group                      |
|   | · | Camelot Urban Entertainment                   |
|   | · | Camelot Latin Entertainment                   |
|   | · | Ferris Wheel Films                            |
|   | · | Camelot Gaming                                |
|   | · | Camelot Digital Entertainment                 |
|   | · | Camelot Distribution Group/DarKnight Pictures |

----

|   | § | Camelot Development Group, LLC  |
|--------|--------|---------------------------------|
|   | § | Camelot Studio Operations       |
|   | § | Camelot Studios Financial Group |

|   | § | Camelot Entertainment Financial Group |
|--------|--------|---------------------------------------|

|   | § | Camelot Studio Services |
|--------|--------|-------------------------|

|   | § | Camelot Technology Group |
|--------|--------|--------------------------|

|   | § | Camelot Entertainment Consulting Group |
|--------|--------|----------------------------------------|

|   | § | Camelot Post Production |
|--------|--------|-------------------------|

|   | § | Camelot Event Management |
|--------|--------|--------------------------|

|   | § | Camelot University |
|--------|--------|--------------------|

|   | § | Camelot Sales and Marketing |
|--------|--------|-----------------------------|

|   | § | Camelot Merchandising |
|--------|--------|-----------------------|

|   | § | Camelot Web |
|--------|--------|-------------|

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|                                                   |   |              |   |                  |
|--------------------------------------------------------|--------|-------------------|--------|-----------------------|
|                                                   |   | Months After      |   | Approximate      |
| Release Period                                         |   | Initial Release   |   | Release Period        |
|                                                   |   |              |   |                  |
| Theatrical                                             |   |  --          |   |  0-3 months |
| Home video/ DVD (1st cycle)                       |   | 3-6 months   |   | 1-3 months       |
| Pay-per-transaction (pay per-view and video-on-demand) |   | 4-8 months   |   | 3-4 months       |
| Pay television                                         |   | 9-12 months  |   | 18 months        |
| Network or basic cable                                 |   | 27-30 months |   | 48-72 months     |
| Syndication                                            |   | 48-70 months |   | 12-72 months     |
| Licensing and merchandising                            |   | Concurrent        |   | Ongoing               |
| All international releases                             |   | Concurrent        |   | Ongoing               |

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|   | § | compensation under employment contracts;                                                                                                      |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|   | § | election of our board of directors;                                                                                                           |
|   | § | removal of any of our directors;                                                                                                              |
|   | § | amendment of our certificate of incorporation or bylaws; and                                                                                  |
|   | § | adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving us. |

----

|   | § | Make a suitability determination prior to selling a penny stock to the purchaser; |
|--------|--------|-----------------------------------------------------------------------------------|
|   | § | Receive the purchaser’s written consent to the transaction; and             |
|   | § | Provide certain written disclosures to the purchaser.                             |

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|   | § | With a price of less than $5.00 per share; |
|--------|--------|--------------------------------------------|

|   | § | That are not traded on a “recognized” national exchange; |
|--------|--------|----------------------------------------------------------------------|

|   | § | Whose prices are not quoted on the NASDAQ automated quotation system (NASDAQ listed stock must still have a price of not less than $5.00 per share); or |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In issuers with net tangible assets less than $2.0 million (if the issuer has been in continuous operation for at least three years) or $10.0 million (if in continuous operation for less than three years), or with average revenues of less than $6.0 million for the last three years. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|                           | Closing Bid |
|--------------------------------|-------------|
| YEAR 2009                      | High Bid    | Low Bid |
| 1st Quarter Ended March 31     | $0.0002     | $0.0001 |
| 2nd Quarter Ended June 30      | $0.0001     | $0.0001 |
| 3rd Quarter Ended September 30 | $0.03       | $0.0009 |
| 4th Quarter Ended December 31  | $0.001      | $0.0001 |
|                           |        |   |
| YEAR 2008                      | High Bid    | Low Bid |
| 1st Quarter Ended March 31     | $0.01       | $0.002 |
| 2nd Quarter Ended June 30      | $0.0016     | $0.0006 |
| 3rd Quarter Ended September 30 | $0.05       | $0.0003 |
| 4th Quarter Ended December 31  | $0.003      | $0.0001 |
|                           |        |   |

----

|   | · | The conversion of notes held by the NIR note holders at a 50% discount to the market price and the resulting immediate sale of those shares into the marketplace, which resulted in stock price declines; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The conversion of notes held by various note holders at a 50% discount to the market price and the resulting sale of those shares into the marketplace at extremely low market prices; the shares in which were obtained through the sales of the obligations due to the Chief Executive Officer to the third parties; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The lack of any significant news on the Company or any sustained public relations effort. |
|--------|--------|-------------------------------------------------------------------------------------------|

----

| Stockholder           | Shares Issued | Exemption | Consideration   | Disposition/Price          |
|-----------------------|---------------|-----------|-----------------|----------------------------|
|                  |          |      |            |                       |
| AJW/New Mill Notes    | 842,865,094   | 4(2)/506  | Finance Conv    | Issued/Market/Discount (1) |
| TJM Management        | 464,646,102   | 4(2)/506  | Debt Retirement | Issued/Market/Discount (1) |
| Robert Atwell         | 250,000,000   | S8        | Services        | Issued/Market              |
| JMJ Financial         | 244,237,246   | 4(2)/506  | Finance Conv    | Issued/Market/Discount (1) |
| George Jackson        | 220,000,000   | S8        | Services        | Issued/Market              |
| Adam Reznikoff        | 215,000,000   | S8        | Services        | Issued/Market              |
| Ted Baer              | 105,000,000   | S8        | Services        | Issued/Market              |
| Camelot Escrow        | 102,000,000   | 4(2)      | Services        | Issued/Market              |
| K & L Enterprises | 94,571,429    | 4(2)/506  | Debt Retirement | Issued/Market/Discount (1) |
| Watson Investment     | 82,383,334    | 4(2)/506  | Debt Retirement | Issued/Market/Discount (1) |
| Mazuma                | 60,000,000    | 4(2)/506  | Debt Retirement | Issued/Market/Discount (1) |
| Mark Temple           | 60,000,000    | S8        | Services        | Issued/Market              |
| Epic                  | 54,500,000    | 4(2)/506  | Debt Retirement | Issued/Market/Discount (1) |
| Acacia                | 34,642,857    | 4(2)/506  | Debt Retirement | Issued/Market/Discount (1) |
| Villam Partners       | 32,478,483    | 4(2)/506  | Finance Conv    | Issued/Market/Discount (1) |
| HAL Nominees          | 30,000,000    | S8        | Services        | Issued/Market              |
| Jamie Thompson        | 25,000,000    | S8        | Services        | Issued/Market              |
| Rodger Spainhower     | 20,571,429    | S8        | Services        | Issued/Market              |
| Phil Scott            | 20,285,716    | S8        | Services        | Issued/Market              |
| HK Dyal               | 20,066,686    | S8        | Services        | Issued/Market              |
| Patrick Winn          | 20,000,000    | S8        | Services        | Issued/Market              |
| Mark Petroff          | 20,000,000    | S8        | Services        | Issued/Market              |
| Gary Bastien          | 10,000,000    | S8        | Services        | Issued/Market              |
| Robert Kerchner       | 10,000,000    | S8        | Services        | Issued/Market              |
| Mike Elliott          | 10,000,000    | S8        | Services        | Issued/Market              |
| Complete Advisory     | 7,000,000     | 4(2)/506  | Services        | Issued/Market              |
| Hope Capital          | 1,364,285     | 4(2)/506  | Debt Retirement | Issued/Market/Discount (1) |
| Phillip Parsons       | 1,071,429     | S8        | Services        | Issued/Market              |
| Falcon Financial      | 1,050,000     | 4(2)/506  | Services        | Issued/Market              |
| Primary Finance       | 285,714       | 4(2)/506  | Debt Retirement | Issued/Market/Discount (1) |
| New Media Advisors    | 71,429        | 4(2)/506  | Services        | Issued/Market              |
| Share Balance Adj     | 5,008         | 4(2)      | Bal. Adj.       | Issued/Market              |
| CEDE                  | 22            | 4(2)      | Bal. Adj.       | Issued/Market              |
|                  |          |      |            |                       |
| Total                 | 3,059,096,263 |      |            |                       |

----

| Date      |   | Title  | Exemption | Amount                                                                                                                     |   | Name       | Type        | Consid   |  Price               | Notes  |
|-----------|--------|--------|-----------|----------------------------------------------------------------------------------------------------------------------------|--------|------------|-------------|----------|---------------------------|--------|
|      |   |   |      |                                                                                                                       |   |       |        |     |                      |   |
| 1/6/2009  |   | Common | 4(2)/506  |              35,321                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 1/6/2009  |   | Common | 4(2)/506  |            142,857                                                  |   | Hope Cap   | Debt Retire | Cash     |  $  0.0385 | Conv   |
| 1/6/2009  |   | Common | 4(2)/506  |            428,571                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 1/9/2009  |   | Common | 4(2)/506  |              35,321                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 1/15/2009 |   | Common | 4(2)/506  |            157,143                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0315 | Conv   |
| 1/16/2009 |   | Common | 4(2)/506  |              35,321                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 1/23/2009 |   | Common | 4(2)/506  |                7,171                            |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 1/23/2009 |   | Common | S8        |              71,429                                       |   | Parsons    | Consulting  | Services |  $  0.0700 | CMGR   |
| 1/28/2009 |   | Common | 4(2)/506  |            649,351                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0385 | Conv   |
| 2/3/2009  |   | Common | 4(2)/506  |              14,286                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 2/11/2009 |   | Common | 4(2)/506  |            142,857                                                  |   | Acacia     | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 2/13/2009 |   | Common | 4(2)/506  |              14,286                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 2/23/2009 |   | Common | 4(2)/506  |              14,286                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 2/23/2009 |   | Common | 4(2)/506  |            364,286                                                  |   | Hope Cap   | Debt Retire | Cash     |  $  0.0490 | Conv   |
| 2/23/2009 |   | Common | 4(2)/506  |            649,351                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0385 | Conv   |
| 2/24/2009 |   | Common | 4(2)/506  |            142,857                                                  |   | Primary    | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 2/26/2009 |   | Common | 4(2)/506  |            428,571                                                  |   | Hope Cap   | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 2/26/2009 |   | Common | 4(2)/506  |            649,351                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0385 | Conv   |
| 2/26/2009 |   | Common | 4(2)/506  |            157,143                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0315 | Conv   |
| 2/27/2009 |   | Common | 4(2)/506  |              14,286                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 3/2/2009  |   | Common | 4(2)/506  |              14,286                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 3/2/2009  |   | Common | 4(2)      |         1,285,714                                                                  |   | Camelot    | Contract    | Reserve  |  $  0.0001 | Conv   |
| 3/5/2009  |   | Common | 4(2)/506  |              14,286                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 3/9/2009  |   | Common | 4(2)/506  |              14,286                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 3/11/2009 |   | Common | 4(2)/506  |            142,857                                                  |   | Primary    | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 3/16/2009 |   | Common | 4(2)/506  |            649,351                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0385 | Conv   |
| 3/18/2009 |   | Common | 4(2)      |            714,286                                                  |   | Camelot    | Contract    | Reserve  |  $  0.0001 | Conv   |
| 3/24/2009 |   | Common | 4(2)/506  |            357,143                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 3/27/2009 |   | Common | 4(2)/506  |            428,571                                                  |   | Hope Cap   | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 3/27/2009 |   | Common | 4(2)/506  |            285,714                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 3/27/2009 |   | Common | S8        |              71,429                                       |   | Phil Scott | Valuation   | Services |  $  0.0700 | CMGR   |
| 3/30/2009 |   | Common | 4(2)/506  |            342,522                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 3/31/2009 |   | Common | 4(2)/506  |              13,771                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 3/31/2009 |   | Common | 4(2)/506  |            214,286                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0350 | Conv   |
| 4/1/2009  |   | Common | 4(2)/506  |                4,286                            |   | NIR        | Fin Conv    | Cash     |  $  0.0420 | Conv   |
| 4/2/2009  |   | Common | 4(2)/506  |            428,571                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0385 | Conv   |
| 4/2/2009  |   | Common | 4(2)/506  |            220,779                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0385 | Conv   |
| 4/6/2009  |   | Common | S8        |              71,429                                       |   | Phil Scott | Valuation   | Services |  $  0.0700 | CMGR   |
| 4/6/2009  |   | Common | 4(2)/506  |              71,429                                       |   | New Media  | Consulting  | Services |  $  0.0700 | CMGR   |
| 4/7/2009  |   | Common | 4(2)/506  |            545,477                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0350 | Conv   |
| 5/6/2009  |   | Common | 4(2)/506  |            649,351                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0385 | Conv   |
| 5/9/2009  |   | Common | S8        |              71,429                                       |   | Phil Scott | Valuation   | Services |  $  0.0700 | CMGR   |
| 6/4/2009  |   | Common | S8        |              57,143                                       |   | H K Dyal   | Consulting  | Services |  $  0.0700 | CFG    |
| 6/17/2009 |   | Common | S8        |              71,429                                       |   | Spainhower | Edgar       | Services |  $  0.0700 | CMGR   |
| 6/17/2009 |   | Common | S8        |              71,429                                       |   | Phil Scott | Valuation   | Services |  $  0.0700 | CMGR   |
| 7/12/2009 |   | Common | 4(2)/506  |         1,050,000                                                                  |   | Falcon     | Consulting  | Services |  $  0.0015 | CMGR   |
| 7/14/2009 |   | Common | 4(2)/506  |         7,500,000                                                                  |   | Acacia     | Debt Retire | Cash     |  $  0.0043 | Conv   |
| 7/14/2009 |   | Common | 4(2)      |                     22 |   | Adj Cede   | Acctng      | Adj      |  $  0.0001 | CMGR   |
| 7/15/2009 |   | Common | 4(2)/506  |         1,200,000                                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0042 | Conv   |
| 7/15/2009 |   | Common | S8        |            500,000                                                  |   | Spainhower | Edgar       | Services |  $  0.0150 | CMGR   |

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| Date   |          Title | Exemption | Amount |            Name | Type   | Consid |  Price | Notes  |
|--------|--------------------------------------------------------|-----------|--------|-------------------------------------------------------------------|--------|--------|-------------|--------|
|   |                                                   |      |   |                                                              |   |   |        |   |

| 7/16/2009 |   | Common | S8       |         1,000,000                                                                  |   | Parsons    | Consulting  | Services |  $  0.0150 | CMGR |
|-----------|--------|--------|----------|----------------------------------------------------------------------------------------------------------------------------|--------|------------|-------------|----------|---------------------------|------|
| 7/17/2009 |   | Common | 4(2)/506 |            666,300                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0048 | Conv |
| 7/20/2009 |   | Common | 4(2)/506 |       11,250,000                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0020 | Conv |
| 7/23/2009 |   | Common | 4(2)/506 |         1,250,000                                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0040 | Conv |
| 7/24/2009 |   | Common | 4(2)/506 |         4,158,600                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0034 | Conv |
| 7/28/2009 |   | Common | 4(2)/506 |         4,158,600                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0032 | Conv |
| 7/28/2009 |   | Common | 4(2)/506 |       11,250,000                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0020 | Conv |
| 7/28/2009 |   | Common | 4(2)/506 |         1,666,667                                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0030 | Conv |
| 8/3/2009  |   | Common | 4(2)/506 |         8,000,000                                                                  |   | K&L    | Debt Retire | Cash     |  $  0.0025 | Conv |
| 8/4/2009  |   | Common | 4(2)/506 |         5,000,000                                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0020 | Conv |
| 8/7/2009  |   | Common | 4(2)/506 |         2,158,600                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0019 | Conv |
| 8/7/2009  |   | Common | 4(2)/506 |         5,014,179                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0018 | Conv |
| 8/7/2009  |   | Common | 4(2)/506 |         8,500,000                                                                  |   | Acacia     | Debt Retire | Cash     |  $  0.0011 | Conv |
| 8/7/2009  |   | Common | 4(2)/506 |       16,000,000                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0013 | Conv |
| 8/10/2009 |   | Common | 4(2)/506 |         6,666,667                                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0015 | Conv |
| 8/11/2009 |   | Common | 4(2)/506 |                     20 |   | NIR        | Fin Conv    | Cash     |  $  0.0017 | Conv |
| 8/12/2009 |   | Common | 4(2)/506 |         7,000,000                                                                  |   | CAP        | Consulting  | Services |  $  0.0015 | CMGR |
| 8/13/2009 |   | Common | 4(2)/506 |         8,500,000                                                                  |   | Acacia     | Debt Retire | Cash     |  $  0.0027 | Conv |
| 8/13/2009 |   | Common | 4(2)/506 |       16,000,000                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0013 | Conv |
| 8/14/2009 |   | Common | 4(2)/506 |         7,172,801                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0013 | Conv |
| 8/14/2009 |   | Common | 4(2)/506 |         5,000,000                                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0020 | Conv |
| 8/18/2009 |   | Common | 4(2)/506 |       13,000,000                                                                             |   | K&L    | Debt Retire | Cash     |  $  0.0015 | Conv |
| 8/18/2009 |   | Common | 4(2)/506 |       16,666,666                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0015 | Conv |
| 8/19/2009 |   | Common | 4(2)/506 |       10,000,000                                                                             |   | Acacia     | Debt Retire | Cash     |  $  0.0014 | Conv |
| 8/19/2009 |   | Common | S8       |       10,000,000                                                                             |   | Petroff    | Consulting  | Services |  $  0.0034 | CMGR |
| 8/20/2009 |   | Common | 4(2)/506 |         7,172,801                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv |
| 8/20/2009 |   | Common | 4(2)/506 |         6,444,447                                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0015 | Conv |
| 8/20/2009 |   | Common | 4(2)/506 |         3,555,553                                                                  |   | Watson     | Debt Retire | Cash     |  $  0.0015 | Conv |
| 8/24/2009 |   | Common | 4(2)/506 |         7,172,801                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv |
| 8/25/2009 |   | Common | 4(2)/506 |       16,666,666                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0015 | Conv |
| 8/27/2009 |   | Common | 4(2)/506 |         7,172,801                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv |
| 8/27/2009 |   | Common | 4(2)/506 |       14,000,000                                                                             |   | JMJ        | Fin Conv    | Cash     |  $  0.0005 | Conv |
| 8/28/2009 |   | Common | 4(2)/506 |       20,000,000                                                                             |   | K&L    | Debt Retire | Cash     |  $  0.0010 | Conv |
| 8/31/2009 |   | Common | 4(2)/506 |       14,500,000                                                                             |   | JMJ        | Fin Conv    | Cash     |  $  0.0005 | Conv |
| 8/31/2009 |   | Common | 4(2)/506 |       22,727,272                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0011 | Conv |
| 9/1/2009  |   | Common | 4(2)/506 |       50,000,000                                                                             |   | Watson     | Debt Retire | Cash     |  $  0.0008 | Conv |
| 9/1/2009  |   | Common | 4(2)/506 |       25,000,000                                                                             |   | Thompson   | Mngmnt      | Services |  $  0.0019 | CDG  |
| 9/1/2009  |   | Common | 4(2)     |     100,000,000                                                                                        |   | Camelot    | Contract    | Reserve  |  $  0.0019 | Conv |
| 9/2/2009  |   | Common | 4(2)/506 |         7,172,801                                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv |
| 9/2/2009  |   | Common | 4(2)/506 |       25,000,000                                                                             |   | K&L    | Debt Retire | Cash     |  $  0.0008 | Conv |
| 9/3/2009  |   | Common | 4(2)/506 |       14,600,000                                                                             |   | JMJ        | Fin Conv    | Cash     |  $  0.0005 | Conv |
| 9/8/2009  |   | Common | 4(2)/506 |       28,571,429                                                                             |   | K&L    | Debt Retire | Cash     |  $  0.0007 | Conv |
| 9/8/2009  |   | Common | 4(2)/506 |       31,250,000                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0008 | Conv |
| 9/10/2009 |   | Common | 4(2)/506 |       25,144,000                                                                             |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv |
| 9/10/2009 |   | Common | 4(2)/506 |       14,900,000                                                                             |   | JMJ        | Fin Conv    | Cash     |  $  0.0005 | Conv |
| 9/10/2009 |   | Common | 4(2)/506 |       25,000,000                                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0010 | Conv |
| 9/11/2009 |   | Common | 4(2)/506 |       32,000,000                                                                             |   | JMJ        | Fin Conv    | Cash     |  $  0.0005 | Conv |
| 9/11/2009 |   | Common | 4(2)/506 |       60,000,000                                                                             |   | Mazuma     | Debt Retire | Cash     |  $  0.0008 | Conv |
| 9/11/2009 |   | Common | S8       |       10,000,000                                                                             |   | Ted Baer   | Legal       | Services |  $  0.0016 | CMGR |
| 9/11/2009 |   | Common | S8       |       10,000,000                                                                             |   | Bastien    | Admin       | Services |  $  0.0016 | CSG  |
| 9/11/2009 |   | Common | S8       |       10,000,000                                                                             |   | Spainhower | Edgar       | Services |  $  0.0016 | CMGR |

----

| Date   |           Title | Exemption |        Amount |           Name | Type   | Consid |  Price | Notes  |
|--------|--------------------------------------------------------------|-----------|---------------------------------------------|------------------------------------------------------------------|--------|--------|-------------|--------|
|   |                                                         |      |                                        |                                                             |   |   |        |   |

| 9/14/2009  |   | Common | 4(2)/506 |       50,000,000                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0010 | Conv   |
|------------|--------|--------|----------|-------------------------------------------------------------------------------------------------|--------|------------|-------------|----------|---------------------------|--------|
| 9/14/2009  |   | Common | S8       |       30,000,000                                                  |   | HAL        | Legal       | Services |  $  0.0018 | CDG    |
| 9/15/2009  |   | Common | 4(2)/506 |       25,144,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv   |
| 9/15/2009  |   | Common | 4(2)/506 |       12,040,817                                                  |   | JMJ        | Fin Conv    | Cash     |  $  0.0005 | Conv   |
| 9/16/2009  |   | Common | 4(2)/506 |       25,144,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv   |
| 9/16/2009  |   | Common | 4(2)/506 |       16,500,000                                                  |   | JMJ        | Fin Conv    | Cash     |  $  0.0005 | Conv   |
| 9/21/2009  |   | Common | 4(2)/506 |       25,144,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv   |
| 9/21/2009  |   | Common | 4(2)/506 |       50,000,000                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0010 | Conv   |
| 9/23/2009  |   | Common | 4(2)/506 |       25,144,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv   |
| 9/23/2009  |   | Common | 4(2)/506 |       32,000,000                                                  |   | JMJ        | Fin Conv    | Cash     |  $  0.0005 | Conv   |
| 9/23/2009  |   | Common | 4(2)/506 |       32,478,483                                                  |   | Villam     | Fin Conv    | Cash     |  $  0.0007 | Conv   |
| 9/24/2009  |   | Common | 4(2)/506 |       54,500,000                                                  |   | Epic       | Debt Retire | Cash     |  $  0.0006 | Conv   |
| 9/25/2009  |   | Common | 4(2)/506 |       32,500,000                                                  |   | JMJ        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 9/25/2009  |   | Common | S8       |       50,000,000                                                  |   | Atwell     | Mngmnt      | Services |  $  0.0009 | CMGR   |
| 9/25/2009  |   | Common | S8       |       20,000,000                                                  |   | H K Dyal   | Consulting  | Services |  $  0.0009 | CFG    |
| 9/25/2009  |   | Common | S8       |       20,000,000                                                  |   | Jackson    | Mngmnt      | Services |  $  0.0009 | CMGR   |
| 9/25/2009  |   | Common | S8       |       10,000,000                                                  |   | Winn       | Admin       | Services |  $  0.0009 | CMGR   |
| 9/28/2009  |   | Common | 4(2)/506 |       11,700,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0006 | Conv   |
| 9/28/2009  |   | Common | S8       |       10,000,000                                                  |   | Phil Scott | Valuation   | Services |  $  0.0009 | CMGR   |
| 9/29/2009  |   | Common | 4(2)/506 |       61,196,429                                                  |   | JMJ        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 9/29/2009  |   | Common | 4(2)/506 |       72,727,272                                                  |   | TJM        | Debt Retire | Cash     |  $  0.0006 | Conv   |
| 9/29/2009  |   | Common | S8       |                9,543 |   | H K Dyal   | Consulting  | Services |  $  0.0011 | CFG    |
| 9/29/2009  |   | Common | S8       |       10,000,000                                                  |   | Petroff    | Consulting  | Services |  $  0.0011 | CMGR   |
| 10/5/2009  |   | Common | 4(2)/506 |     121,212,121                                                             |   | TJM        | Debt Retire | Cash     |  $  0.0006 | Conv   |
| 10/6/2009  |   | Common | 4(2)/506 |       65,272,199                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0004 | Conv   |
| 10/12/2009 |   | Common | 4(2)/506 |       37,000,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0004 | Conv   |
| 10/12/2009 |   | Common | 4(2)/506 |       28,272,199                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0004 | Conv   |
| 10/12/2009 |   | Common | S8       |       10,000,000                                                  |   | Kerchner   | Consulting  | Services |  $  0.0007 | CFG    |
| 10/12/2009 |   | Common | S8       |       10,000,000                                                  |   | Elliott    | Consulting  | Services |  $  0.0007 | CFG    |
| 10/19/2009 |   | Common | 4(2)/506 |       40,000,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 10/23/2009 |   | Common | 4(2)/506 |       25,272,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 10/30/2009 |   | Common | 4(2)/506 |       65,272,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 11/6/2009  |   | Common | 4(2)/506 |       30,000,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 11/6/2009  |   | Common | 4(2)/506 |         5,000,000                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 11/6/2009  |   | Common | 4(2)/506 |         8,000,000                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 11/6/2009  |   | Common | 4(2)/506 |         7,500,000                                       |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 11/6/2009  |   | Common | 4(2)/506 |       37,786,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 11/9/2009  |   | Common | S8       |       10,000,000                                                  |   | Spainhower | Edgar       | Services |  $  0.0008 | CMGR   |
| 11/9/2009  |   | Common | S8       |       10,000,000                                                  |   | Phil Scott | Valuation   | Services |  $  0.0008 | CMGR   |
| 11/16/2009 |   | Common | S8       |       10,000,000                                                  |   | Reznikoff  | Consulting  | Services |  $  0.0007 | CMGR   |
| 11/25/2009 |   | Common | S8       |       80,000,000                                                  |   | Reznikoff  | Consulting  | Services |  $  0.0006 | CMGR   |
| 11/30/2009 |   | Common | 4(2)/506 |       88,286,000                                                  |   | NIR        | Fin Conv    | Cash     |  $  0.0003 | Conv   |
| 11/30/2009 |   | Common | S8       |       95,000,000                                                  |   | Ted Baer   | Legal       | Services |  $  0.0005 | CMGR   |
| 12/3/2009  |   | Common | S8       |       60,000,000                                                  |   | Temple     | Legal       | Services |  $  0.0004 | CDG    |
| 12/4/2009  |   | Common | S8       |     200,000,000                                                             |   | Atwell     | Mngmnt      | Services |  $  0.0001 | CMGR   |
| 12/4/2009  |   | Common | S8       |     200,000,000                                                             |   | Jackson    | Mngmnt      | Services |  $  0.0001 | CMGR   |
| 12/9/2009  |   | Common | S8       |       10,000,000                                                  |   | Winn       | Admin       | Services |  $  0.0004 | CMGR   |
| 12/14/2009 |   | Common | S8       |     125,000,000                                                             |   | Reznikoff  | Consulting  | Services |  $  0.0003 | CMGR   |
| 12/21/2009 |   | Common | 4(2)/506 |     107,322,600                                                             |   | NIR        | Fin Conv    | Cash     |  $  0.0001 | Conv   |
| 12/30/2009 |   | Common | 4(2)/506 |     107,322,600                                                             |   | NIR        | Fin Conv    | Cash     |  $  0.0001 | Conv   |
| 12/31/2009 |   | Common | 4(2)     |                5,008 |   | Share Adj  | Acctng      | Adj      |  $  0.0001 | CMGR   |
|       |   |   |     |                                                                                            |   |       |        |     |                      |   |
| Total      |   |   |     |  3,059,096,263                                                                             |   |       |        |     |                      |   |

----

|   |  o | Plan of Operation.  This section provides a brief description of Camelot’s plan of operation for fiscal year 2010.                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Overview. This section provides a general description of our corporate structure and what the management will focus on in 2010.                                                                                                                                                                                                                                                                                                                                                                                             |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Cash requirements. This section provides a discussion of how long Camelot can satisfy its cash requirements and the need, if any, to raise additional funds in 2010.                                                                                                                                                                                                                                                                                                                                                        |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Research and Development. This section discusses the research and development activities of Camelot.                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Equipment. This section looks at if there will be any major equipment purchases in 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Change in Employees. This section discusses if there will be any significant change in the number of employees.                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Results of Operations. This section provides an analysis of Camelot’s results of operations for the two years ending December 31, 2009.                                                                                                                                                                                                                                                                                                                                                                               |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Liquidity and Capital Resources. This section provides an analysis of Camelot’s cash flows for the two years ended December 31, 2009, as well as a discussion of the Company’s outstanding debt and commitments that existed as of December 31, 2009. Included in the analysis of outstanding debt is a discussion of the amount of financial capacity available to fund the Company’s future commitments, as well as a discussion of other financing arrangements.                             |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Sources of Revenue. This section examines expected sources of revenues.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Recent Financings. This section discusses financing transactions of Camelot during 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Off-Balance Sheet Arrangements. This section discloses any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on Camelot’s financial condition.                                                                                                                                                                                                                                                                                                                     |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Critical Accounting Estimates. This section identifies those accounting estimates that are considered important to the Company’s results of operations and financial condition, require significant judgment and require estimates on the part of management in application.                                                                                                                                                                                                                                          |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Critical Accounting Policies. This section identifies those accounting policies that are considered important to the Company’s results of operations and financial condition, require significant judgment and require estimates on the part of management in application. All of the Company’s significant accounting policies, including those considered to be critical accounting policies, are summarized in Note 1 to the accompanying financial statements.                                         |
|   |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |  o | Caution Concerning Forward-Looking Statements. This section provides a description of the use of forward looking information appearing in this report, including in MD&A and the financial statements. Such information is based on management’s current expectations about future events, which are inherently susceptible to uncertainty and changes in circumstances. Refer  to “Risk Factors” in Part I of this report, for a discussion of the risk factors applicable to the Company. |

----

----

|   | 1. | Education; which leads to |
|--------|----|---------------------------|

|   | 2. | Infrastructure; which leads to |
|--------|----|--------------------------------|

|   | 3. | Utilization; which leads to |
|--------|----|-----------------------------|

|   | 4. | Opportunity; which leads to |
|--------|----|-----------------------------|

|   | 5. | Success |
|--------|----|---------|

----

----

|   | · | The major studio business model makes studios slow to react and adapt.  At the major studio level, the focus increasingly is on making a handful of $100 million-plus tentpole pictures each year, with a dramatic reduction in the overall number of pictures produced and released due to the credit crisis.  Most major studios are not adept at keeping costs down on films of any size, and as a result fewer moderate-cost, commercial films are being produced and released by the major studios. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Outside of the studios, most independent film companies are struggling to produce pictures in any significant number and a majority of the companies are burdened with substantial debt. A majority of the film finance/production firms have ceased participating in the market in the past two years.  This situation creates an opportunity for an aggressive independent to build a strong position. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Seize the moment within an industry on the verge of substantial change; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | Obtain film and media library content while the valuations are at the bottom of the cycle; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | Obtain an interest in strategically located post-production facilities in order to control product quality, cross-sell across divisions and gain a window into technology changes in real time; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Create a home for independent film producers and directors to develop superior product with a better risk/reward ratio; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | Use the exiting Camelot Entertainment Group, Inc. stock as currency to lower acquisition cost and to obtain “buy-in” by acquired company management; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Seek a move to a larger trading exchange, such as AMEX or NASDAQ in 2010/2011 to stabilize share price and obtain analyst coverage; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gain an early position in the Video-on-Demand [VOD] and Direct to Consumer aggregation, to pioneer new distribution channels not currently utilized by major studios. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | 1. | At closing on December 27, 2006 (“Closing”), the Investors purchased Notes aggregating $600,000 and Warrants to purchase 143 shares of CMEG Common Stock; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Upon effectiveness of the Registration Statement, on June 5, 2007 the Investors purchased Notes aggregating $400,000. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------|

----

|                                          |   |       |           |   | Price Decreases By |   |
|-----------------------------------------------|--------|------------|----------------|--------|--------------------|--------|
|                                          |   | 12/31/2009 |           |   |               | 25     | % |   |   | 50 | % |   |   | 75 | % |
| Average Common Stock Price (as defined above) |   | $          | 0.0001         |   |               | $      | 0.0001 |   |   | $ | 0.0001 |   |   | $ | 0.0001 |   |
| Conversion Price (50% Discount)               |   | $          | 0.00005        |   |               | $      | 0.00005 |   |   | $ | 0.00005 |   |   | $ | 0.00005 |   |
| 100% Conversion Shares:                       |   |       | 17,012,020,000 |   |               |   | 17,012,020,000 |   |   |   | 17,012,020,000 |   |   |   | 17,012,020,000 |   |
| Principal Balance of Notes:                   |   | $          | 850,601        |   |               |   |   |   |   |   |   |   |   |   |   |   |

----

|   | · | Licensing of videocassettes and digital video discs (DVDs) |
|--------|--------|------------------------------------------------------------|

|   | · | Pay-per-view cable and satellite licensing |
|--------|--------|--------------------------------------------|

|   | · | Pay television and internet licensing, including VOD and Direct to Consumer |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | Broadcast television, cable and satellite licensing |
|--------|--------|-----------------------------------------------------|

|   | · | Hotels, airlines and other non-theatrical exhibitions |
|--------|--------|-------------------------------------------------------|

|   | · | Theatrical exhibition                   |
|--------|--------|-----------------------------------------|
|   |   |                                    |
|   | · | Mobile and other forms of Digital Media |
|   |   |                                    |
|   | · | Syndicated television licensing         |
|   |   |                                    |
|   | · | internet Protocol TV (IPTV)             |

----

|         |   | Cumulative During Development |   |   | Year Ended December 31, |   |   |   |   |
|--------------|--------|-------------------------------|--------|--------|-------------------------|--------|--------|--------|--------|
|         |   | Stage                         |   |   | 2009                    |   |   | 2008   |   |   | % Change |   |
|         |   |                          |   |   |                    |   |   |   |   |   |   |   |
| Net Revenues |   | $                             | 58,568 |   |                    | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

----

|             |   | Cumulative During Development |   |   | Year Ended December 31, |   |   |   |   |
|------------------|--------|-------------------------------|--------|--------|-------------------------|--------|--------|--------|--------|
|             |   | Stage                         |   |   | 2009                    |   |   | 2008   |   |   | % Change |   |
|             |   |                          |   |   |                    |   |   |   |   |   |   |   |
| Cost of Services |   | $                             | 95,700 |   |                    | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

|                           |   | Cumulative During Development |   |   | Year Ended December 31, |   |   |   |   |
|--------------------------------|--------|-------------------------------|--------|--------|-------------------------|--------|--------|--------|--------|
|                           |   | Stage                         |   |   | 2009                    |   |   | 2008   |   |   | % Change |   |
|                           |   |                          |   |   |                    |   |   |   |   |   |   |   |
| Sales & Marketing Expenses |   | $                             | 53,959 |   |                    | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

|                                |   | Cumulative During Development |    |   | Year Ended December 31, |   |   |   |   |
|-------------------------------------|--------|-------------------------------|---------|--------|-------------------------|--------|--------|--------|--------|
|                                |   | Stage                         |    |   | 2009                    |   |   | 2008   |   |   | % Change |   |
|                                |   |                          |    |   |                    |   |   |   |   |   |   |   |
| Research & Development Expenses |   | $                             | 252,550 |   |                    | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

----

|                                  |   | Cumulative DuringDevelopment |       |   | Year Ended December 31, |   |
|---------------------------------------|--------|------------------------------|------------|--------|-------------------------|--------|
|                                  |   | Stage                        |       |   | 2009                    |   |   | 2008 | % Change |
|                                  |   |                         |       |   |                    |   |   |   |   |
| General & Administrative Expenses |   | $                            | 15,505,374 |   |                    | $      | 2,086,807 |   |   | $ | 1,406,916 |   | (48%) |

|                                         |   | Cumulative During Development |      |   | Year Ended December 31, |   |   |   |   |
|----------------------------------------------|--------|-------------------------------|-----------|--------|-------------------------|--------|--------|--------|--------|
|                                         |   | Stage                         |      |   | 2009                    |   |   | 2008   |   |   | % Change |   |
| Impairment of Assets                         |   | $                             | 2,402,338 |   |                    | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |
|                                         |   |                          |      |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Impairment of Investments in Other Companies |   | $                             | 710,868   |   |                    | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

----

|       |   | Cumulative During Development |        |   | Year Ended December 31, |   |       |   |   |
|------------|--------|-------------------------------|-------------|--------|-------------------------|--------|------------|--------|--------|
|       |   | Stage                         |        |   | 2009                    |   |       | 2008   |   |   | % Change |   |
| Net (loss) |   | $                             | (20,964,823 | )      |                    | $      | (4,259,802 | )      |   | $ | (428,575 | ) |   |   | 893% |   |
|       |   |                          |        |   |                    |   |       |   |   |   |   |   |   |   |   |   |
|       |   |                          |        |   |                    |   |       |   |   |   |   |   |   |   |   |   |

----

----

----

----

----

| Name             |   | Age    |   | Position                                     |   | Date of Appointment |
|------------------|--------|--------|--------|----------------------------------------------|--------|---------------------|
|             |   |   |   |                                         |   |                |
| Robert P. Atwell |   | 56     |   | President, Chief Executive Officer, Chairman |   | March 19, 2003      |
|             |   |   |   |                                         |   |                |
| George Jackson   |   | 49     |   | Secretary, Chief Financial Officer, Director |   | April 1, 2005       |
|             |   |   |   |                                         |   |                |

----

----

| Name and Principal Position           | Year   |   | Salary($) |    |   | Bonus($) |   |   | Stock Awards($) |   |   | Option Awards($) |   |   | Non-Equity Incentive Plan Compensation ($) |   |   | Non-Qualified Deferred Compensation Earnings($) |   |   | All Other Compensation($) |   |   | Totals($) |   |
|---------------------------------------|--------|--------|-----------|---------|--------|----------|--------|--------|-----------------|--------|--------|------------------|--------|--------|--------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|---------------------------|--------|--------|-----------|--------|
|                                  |   |   |      |    |   |     |   |   |            |   |   |             |   |   |                                       |   |   |                                            |   |   |                      |   |   |      |   |
| Robert P. Atwell, (1)President, Chief | 2009   |   | $         | 420,000 |   |     |   | 0      |            |   |   | 0                |   |   |                                       | 0      |   |                                            |   | 0      |                      |   |   | 0         |   |   |   | 15,000 |   |   | $ | 435,000 |   |
| Executive Officer                     | 2008   |   | $         | 420,000 |   |     |   | 0      |            |   |   | 0                |   |   |                                       | 0      |   |                                            |   | 0      |                      |   |   | 0         |   |   |   | 0 |   |   | $ | 420,000 |   |
|                                  |   |   |      |    |   |     |   |   |            |   |   |             |   |   |                                       |   |   |                                            |   |   |                      |   |   |      |   |   |   |   |   |   |   |   |   |
| George Jackson, (2)Secretary, Chief   | 2009   |   | $         | 150,000 |   |     |   | 0      |            |   |   | 0                |   |   |                                       | 0      |   |                                            |   | 0      |                      |   |   | 0         |   |   |   | 0 |   |   | $ | 150,000 |   |
| Financial Officer                     | 2008   |   | $         | 100,000 |   |     |   | 0      |            |   |   | 0                |   |   |                                       | 0      |   |                                            |   | 0      |                      |   |   | 0         |   |   |   | 0 |   |   | $ | 100,000 |   |
|                                  |   |   |      |    |   |     |   |   |            |   |   |             |   |   |                                       |   |   |                                            |   |   |                      |   |   |      |   |   |   |   |   |   |   |   |   |

----

|                                                                                                   |   |   |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Annual retainer for each Director, paid quarterly in advance                                                |   | $      | 5,000  |   |
| Additional annual retainer for Chairs of the Compensation Committee and Nominating and Governance Committee |   | $      | 1,000  |   |
| Additional annual retainer for Chair of the Audit Committee                                                 |   | $      | 1,000  |   |

----

|        |         |                               |         |                                |                                 |                  |   |   |
|------------------|--------------|------------------------------------|--------------|-------------------------------------|--------------------------------------|-----------------------|--------|--------|
|  Name  |    | Fees Earnedor Paid inCash ($) |    | Value of OptionAwards ($) | Non-equityIncentive PlanCompensation | All OtherCompensation | Total  |
| None             |    | $                                  | 0            |                           | 0                                    | 0                     | 0      | 0      |
|             |    |                               |         |                           |                                 |                  |   |   |
| Total            |    | $                                  | 0            |                           | 0                                    | 0                     | 0      | 0      |
|             |    |                               |         |                           |                                 |                  |   |   |

----

|  Name of BeneficialOwner                                                                                                                                                                                                                             |  Shares BeneficiallyOwned |  Percent |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------------|
|                                                                                                                                                                                                                                                      |                           |          |
| Robert P. Atwell, Inc. (1)8001 Irvine Center Drive, Suite 400Irvine, CA 92618                                                                                                                                                                             | 125,759,666                    | 4%            |
|                                                                                                                                                                                                                                                      |                           |          |
| George Jackson (2)8001 Irvine Center Drive, Suite 400Irvine, CA 92618                                                                                                                                                                                     | 95,583,622                     | 3%            |
|                                                                                                                                                                                                                                                      |                           |          |
| TOTAL 5% Stockholders as a Group                                                                                                                                                                                                                          | 221,343,288                    | 7%            |
|                                                                                                                                                                                                                                                      |                           |          |
|  (1) Includes all shares owned and or under the control of the Beneficial Owner. Robert P. Atwell is the owner of The Atwell Group, Inc. and other entities that have holdings in Camelot. Mr. Atwell is an officer and a director of Camelot.  |                           |          |
| (2) Includes all shares owned and or under the control of the Beneficial Owner. Mr. Jackson is an officer and director of Camelot.                                                                                                                        |                           |          |

|  Name of Beneficial Owner                                                |  Shares Beneficially Owned |  Percent (3) |
|-------------------------------------------------------------------------------|---------------------------------|-------------------|
|                                                                          |                            |              |
| Robert P. Atwell, Inc. (1)8001 Irvine Center Drive, Suite 400Irvine, CA 92618 | 125,759,666                     | 4%                |
|                                                                          |                            |              |
| George Jackson (2)8001 Irvine Center Drive, Suite 400Irvine, CA 92618         | 95,583,622                      | 3%                |
|  Totals:                                                                 |  221,343,288               |  7%          |
|                                                                          |                            |              |
| Note (1): Includes direct and indirect affiliate ownership.                   |                            |              |
| Note (2): Includes direct and indirect affiliate ownership.                   |                            |              |
| Note (3): Based on 3,061,330,703 shares issued as of 12/31/09.                |                            |              |

----

|  Name of Beneficial Owner                                                                                                                                                            | Class A Preferred Shares Beneficially Owned |  Percent (3) |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|-------------------|
|                                                                                                                                                                                      |                                                  |              |
| Robert P. Atwell (1)Chairman, President, CEO8001 Irvine Center Drive, Suite 400Irvine, CA 92618                                                                                           |  8,625,010                                       |  85%         |
|                                                                                                                                                                                      |                                                  |              |
| George Jackson (2)Secretary, CFO8001 Irvine Center Drive, Suite 400Irvine, CA 92618                                                                                                       |  1,410,000                                       |  14%         |
| Totals:                                                                                                                                                                                   | 10,035,010                                            | 99%               |
| Note (1): Includes shares held directly and indirectly. Converts to 34,500,040 shares of Common Stock. Equals 431,250,500 votes.                                                     |                                                  |              |
| Note (2): Includes shares held directly and indirectly. Converts to 5,640,000 shares of Common Stock. Equals 70,500,000 votes Note (3) Based on 10,147,511 total Class A Shares |                                                  |              |

----

|  Name of Beneficial Owner                                                                                                                                                      | Class B Preferred Shares Beneficially Owned |  Percent (3) |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|-------------------|
|                                                                                                                                                                                |                                             |              |
| Robert P. Atwell (1)Chairman, President, CEO8001 Irvine Center Drive, Suite 400Irvine, CA 92618                                                                                     |  8,560,809                                  |  86%         |
|                                                                                                                                                                                |                                             |              |
| George Jackson (2)Secretary, CFO8001 Irvine Center Drive, Suite 400Irvine, CA 92618                                                                                                 |  1,410,000                                  |  14%         |
| Totals:                                                                                                                                                                             | 9,970,809                                        | 100%              |
|                                                                                                                                                                                |                                             |              |
| Note (1): Includes shares held directly and indirectly. Converts to 85,608,090 shares of Common Stock. Equals 8,560,809,000 votes.                                                  |
| Note (2): Includes shares held directly and indirectly. Converts to 14,100,000 shares of Common Stock. Equals 1,410,000,000 votes.Note (3): Based on 9,996,510 total Class B Shares |
|  Name of Beneficial Owner                                                                                                                                                      | Class C Preferred Shares Beneficially Owned |  Percent (3) |
|                                                                                                                                                                                |                                             |              |
| Robert P. Atwell (1)Chairman, President, CEO8001 Irvine Center Drive, Suite 400Irvine, CA 92618                                                                                     |  6,030,000                                  |  84%         |
|                                                                                                                                                                                |                                             |              |
| George Jackson (2)Secretary, CFO8001 Irvine Center Drive, Suite 400Irvine, CA 92618                                                                                                 |  1,101,000                                  |  15%         |
|                                                                                                                                                                                |                                             |              |
| Totals:                                                                                                                                                                             | 7,131,000                                        | 99%               |
|                                                                                                                                                                                |                                             |              |
| Note (1): Includes shares held directly and indirectly. Converts to 6,030,000 shares of Common Stock. Equals 6,030,000 votes.                                                       |                                             |
| Note (2): Includes shares held directly and indirectly. Converts to 1,101,000 shares of Common Stock. Equals 1,101,000 votes.                                                       |                                             |
|  Note (3): Based on 7,151,500 total Class C Shares.                                                                                                                            |                                             |              |

| Common     |   | Shares |          |   | Common Equivalent |   |          | Votes  |   |   | Percentage     |   |
|------------|--------|--------|---------------|--------|-------------------|--------|---------------|--------|--------|--------|----------------|--------|
| Management |   |   | 221,343,288   |   |              |   | 221,343,288   |   |   |   | 221,343,288    |   |   |   | 7 | % |
| Others     |   |   | 2,839,987,415 |   |              |   | 2,839,987,415 |   |   |   | 2,839,987,415  |   |   |   | 93 | % |
| Total      |   |   | 3,061,330,703 |   |              |   | 3,061,330,703 |   |   |   | 3,061,330,703  |   |   |   | 100 | % |
|       |   |   |          |   |              |   |          |   |   |   |           |   |   |   |   |   |
| Class A    |   | Shares |          |   | Common Equivalent |   |          | Votes  |   |   | Percentage     |   |
| Management |   |   | 10,035,010    |   |              |   | 38,940,040    |   |   |   | 486,750,500    |   |   |   | 99 | % |
| Others     |   |   | 112,501       |   |              |   | 450,004       |   |   |   | 5,625,050      |   |   |   | 1 | % |
| Total      |   |   | 10,147,511    |   |              |   | 39,390,044    |   |   |   | 492,375,550    |   |   |   | 100 | % |
|       |   |   |          |   |              |   |          |   |   |   |           |   |   |   |   |   |
| Class B    |   | Shares |          |   | Common Equivalent |   |          | Votes  |   |   | Percentage     |   |
| Management |   |   | 9,970,809     |   |              |   | 99,708,090    |   |   |   | 9,670,809,000  |   |   |   | 100 | % |
| Others     |   |   | 25,701        |   |              |   | 257,010       |   |   |   | 25,701,000     |   |   |   | 0 | % |
| Total      |   |   | 9,996,510     |   |              |   | 99,965,100    |   |   |   | 9,696,510,000  |   |   |   | 100 | % |
|       |   |   |          |   |              |   |          |   |   |   |           |   |   |   |   |   |
| Class C    |   | Shares |          |   | Common Equivalent |   |          | Votes  |   |   | Percentage     |   |
| Management |   |   | 7,131,000     |   |              |   | 7,131,000     |   |   |   | 7,131,000      |   |   |   | 99 | % |
| Others     |   |   | 20,500        |   |              |   | 20,500        |   |   |   | 20,500         |   |   |   | 1 | % |
| Total      |   |   | 7,151,500     |   |              |   | 7,151,500     |   |   |   | 7,151,500      |   |   |   | 100 | % |
|       |   |   |          |   |              |   |          |   |   |   |           |   |   |   |   |   |
| Total      |   | Shares |          |   | Common Equivalent |   |          | Votes  |   |   | Percentage     |   |
| Management |   |   | 248,480,107   |   |              |   | 367,122,418   |   |   |   | 10,386,033,788 |   |   |   | 78 | % |
| Others     |   |   | 2,840,146,117 |   |              |   | 2,840,714,929 |   |   |   | 2,871,333,965  |   |   |   | 22 | % |
| Total      |   |   | 3,088,626,224 |   |              |   | 3,207,837,347 |   |   |   | 13,257,367,753 |   |   |   | 100 | % |

----

| Name of Beneficial Owner (1)                                                                | Total Votes    | Percent   |
|---------------------------------------------------------------------------------------------|----------------|-----------|
|                                                                                        |           |      |
| Robert P. AtwellChairman, President, CEO8001 Irvine Center Drive, Suite 400Irvine, CA 92618 | 9,123,849,166  |  69% |
|                                                                                        |           |      |
| George JacksonSecretary, CFO8001 Irvine Center Drive, Suite 400Irvine, CA 92618             | 1,262,184,622  | 9%        |
|                                                                                        |           |      |
| Management and Beneficial Owners of 5% or More of the Common Stock                          | 10,386,033,788 | 78%       |
|                                                                                        |           |      |
| All Other Common Stockholders                                                               | 2,871.333.965  | 22%       |
|                                                                                        |           |      |
| Totals:                                                                                     | 13,257,367,753 | 100%      |
|                                                                                        |           |      |
| Note (1): Includes direct and indirect affiliate ownership.                                 |           |      |

----

----

| Exhibit No. |   |   Title of Document |                                                                                                                                                                                                         | Location |
|------------------|--------|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|             | 3.1.1  |                     | Certificate of Incorporation                                                                                                                                                                                 |     | Incorporated by reference as Exhibit 2.1 to Form 10-K filed April 17, 2001 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 3.1.2  |                     | Amended Certificate of Incorporation                                                                                                                                                                         |     | Incorporated by reference to Form 8-K filed June 29, 2004 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 3.2    |                     | By-laws                                                                                                                                                                                                      |     | Incorporated by reference as Exhibit 2.1 to Form 10-K filed April 17, 2001 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.1    |                     | Entry Into a Material Definitive Agreement with New Millennium Capital Partners II LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                                                |     | Incorporated by reference to Form 8-K filed on January 4, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.2    |                     | Form of Stock Purchase Warrant issued to New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                                                      |     | Incorporated by reference as Exhibit 4.3 to Form 8-K filed on January 4, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.3    |                     | Registration Rights Agreement dated December 27, 2006 by and among New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                            |     | Incorporated by reference as Exhibit 4.4 to Form 8-K filed on January 4, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.4    |                     | Security Agreement dated December 27, 2006 by and among the Company and New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                       |     | Incorporated by reference as Exhibit 4.5 to Form 8-K filed on January 4, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.5    |                     | Intellectual Property Security Agreement dated December 27, 2006 by and among the Company and New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC |     | Incorporated by reference as Exhibit 4.6 to Form 8-K filed on January 4, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.6    |                     | Structuring Agreement with Lionheart                                                                                                                                                                         |     | Incorporated by reference as Exhibit 4.7 to Form 8-K filed on January 4, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.7    |                     | Change in Registrant’s Certifying Accountant                                                                                                                                                           |     | Incorporated by reference to Form 8-K filed on January 31, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.8    |                     | Change in Registrant’s Certifying Accountant                                                                                                                                                           |     | Incorporated by reference to Form 8-K/A-1 filed on January 31, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.9    |                     | Entry Into a Material Definitive Agreement with New Millennium Capital Partners II LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                                                |     | Incorporated by reference to Amendment No. 1 to Form 8-K filed on January 31, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.1    |                     | Securities Purchase Agreement dated December 27, 2006, by and among the Company and New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC           |     | Incorporated by reference as Exhibit 4.1 to Form 8-K filed on February 1, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.11   |                     | Form of Callable Convertible Secured Note by and among New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                                        |     | Incorporated by reference as Exhibit 4.2 to Form 8-K filed on February 1, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.12   |                     | Entry Into a Material Definitive Agreement                                                                                                                                                                   |     | Incorporated by reference to Amendment No. 2 to Form 8-K filed on February 2, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.13   |                     | Stock Purchase Warrant issued to Lionheart Associates LLC d/b/a Fairhills Capital                                                                                                                            |     | Incorporated by reference as Exhibit 4.8 to Form 8-K filed on February 2, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.14   |                     | SB-2 Registration                                                                                                                                                                                            |     | Incorporated by reference to SB-2 Registration Statement Form SB-2 filed on February 2, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.15   |                     | SB-2 Registration                                                                                                                                                                                            |     | Incorporated by reference to SB-2 Registration Statement Form SB-2/A filed on May 11, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.16   |                     | SB-2 Registration                                                                                                                                                                                            |     | Incorporated by reference to SB-2 Registration Statement Form SB-2/2A filed on May 31, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.17   |                     | Departure of Directors                                                                                                                                                                                       |     | Incorporated by reference to Form 8-K filed on July 31, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.18   |                     | Departure of Directors                                                                                                                                                                                       |     | Incorporated by reference to Form 8-K filed on August 31, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.19   |                     | S-8 Registration                                                                                                                                                                                             |     | Incorporated by reference to Form S-8 filed on October 19, 2007 |
|             |   |                     |                                                                                                                                                                                                         |     |   |
|             | 4.20   |                     | 2007 Stock Option Plan                                                                                                                                                                                       |     | Incorporated by reference as Exhibit 4.1 to Form S-8 filed on October 19, 2007 |

----

|   | 4.20   |   | 2007 Stock Option Plan                                                                                                                                                                         |   | Incorporated by reference as Exhibit 4.1 to Form S-8 filed on October 19, 2007 |
|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                           |   |                                                                           |
|   | 4.21   |   | Changes in Registrant’s Certifying Accountant                                                                                                                                            |   | Incorporated by reference to Form 8-K filed on February 1, 2008                |
|   |   |   |                                                                                                                                                                                           |   |                                                                           |
|   | 4.22   |   | Changes in Registrant’s Certifying Accountant                                                                                                                                            |   | Incorporated by reference to Form 8-K/A filed on February 7, 2008              |
|   |   |   |                                                                                                                                                                                           |   |                                                                           |
|   | 4.23   |   | Appointment of Directors                                                                                                                                                                       |   | Incorporated by reference to form 8-K filed on February 19, 2008               |
|   |   |   |                                                                                                                                                                                           |   |                                                                           |
|   | 4.24   |   | Departure of Directors                                                                                                                                                                         |   | Incorporated by reference to form 8-K filed on May 19, 2008                    |
|   |   |   |                                                                                                                                                                                           |   |                                                                           |
|   | 4.25   |   | Departure of Directors                                                                                                                                                                         |   | Incorporated by reference to form 8-K filed on May 30, 2008                    |
|   |   |   |                                                                                                                                                                                           |   |                                                                           |
|   | 4.26   |   | Reverse Stock Split                                                                                                                                                                            |   | Incorporated by reference to form 14-C filed on August 14, 2008                |
|   |   |   |                                                                                                                                                                                           |   |                                                                           |
|   | 4.27   |   | Entry Into a Material Definitive Agreement with New Millennium Capital Partners II LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                                  |   | Incorporated by reference to Form 8-K filed on August 21, 2008                 |
|   |   |   |                                                                                                                                                                                           |   |                                                                           |
|   | 4.28   |   | Securities Purchase Agreement dated July 31, 2008, by and among the Company and New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC |   | Incorporated by reference as Exhibit 4.1 to Form 8-K filed on August 21, 2008  |

|   | 4.29   |   | Form of Callable Convertible Secured Note dated July 31, 2008, by and among New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC               |   | Incorporated by reference as Exhibit 4.2 to Form 8-K filed on August 21, 2008 |
|--------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.30   |   | Form of Stock Purchase Warrant issued to New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                                                  |   | Incorporated by reference as Exhibit 4.3 to Form 8-K filed on August 21, 2008 |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.31   |   | Registration Rights Agreement dated July 31, 2008 by and among New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                            |   | Incorporated by reference as Exhibit 4.4 to Form 8-K filed on August 21, 2008 |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.32   |   | Security Agreement dated July 31, 2008 by and among the Company and New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                       |   | Incorporated by reference as Exhibit 4.5 to Form 8-K filed on August 21, 2008 |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.33   |   | Intellectual Property Security Agreement dated July 31, 2008 by and among the Company and New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC |   | Incorporated by reference as Exhibit 4.6 to Form 8-K filed on August 21, 2008 |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.34   |   | Subsidiary Security Agreement dated July 31, 2008 by and among the Company and New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC            |   | Incorporated by reference as Exhibit 4.7 to Form 8-K filed on August 21, 2008 |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.35   |   | Amendment to Previous Notes by and among the Company and New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC                                  |   | Incorporated by reference as Exhibit 4.8 to Form 8-K filed on August 21, 2008 |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.36   |   | Form of Callable Convertible Secured Note dated August 15, 2008 by and among New Millennium Capital Partners II, LLC, AJW Qualified Partners, LLC, AJW Offshore, Ltd. and AJW Partners, LLC              |   | Incorporated by reference as Exhibit 4.9 to Form 8-K filed on August 21, 2008 |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.37   |   | Change of Trading Symbol to CMLT                                                                                                                                                                         |   | Incorporated by reference to Form 8-K filed on August 29, 2008                |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.38   |   | Increase in Authorized to 850,000,000                                                                                                                                                                    |   | Incorporated by reference to Form 14-C filed on December 19, 2008             |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.39   |   | Increase in Authorized to 3,000,000,000                                                                                                                                                                  |   | Incorporated by reference to Form 14-C filed on December 19, 2008             |
|   |   |   |                                                                                                                                                                                                     |   |                                                                          |
|   | 4.40   |   | Change of Address to Irvine                                                                                                                                                                              |   | Incorporated by reference to Form 8-K filed on February 4, 2009               |

----

|   |   |   |                                                                                                                                |   |                                                                            |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|
|   | 4.41   |   | Increase in Authorized to 6,000,000,000                                                                                             |   | Incorporated by reference to Form 14-C filed on March 26, 2009                  |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.42   |   | Increase in Authorized to 10,000,000,000                                                                                            |   | Incorporated by reference to Form 14-C filed on March 27, 2009                  |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.43   |   | Annual Stockholders Meeting May 13, 2009                                                                                            |   | Incorporated by reference to Form 14-A filed on April 3, 2009                   |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.44   |   | Annual Report for 2008                                                                                                              |   | Incorporated by reference to Form 10-K filed on April 15, 2009                  |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.45   |   | Changes in Registrant’s Certifying Accountant                                                                                 |   | Incorporated by reference to Form 8-K filed on May 4, 2009                      |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.46   |   | Quarterly Report for 1st Quarter 2009                                                                                               |   | Incorporated by reference to Form 10-Q filed on May 20, 2009                    |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.47   |   | Increase in Authorized to 20,000,000,000                                                                                            |   | Incorporated by reference to Form 14-C filed on June 5, 2009                    |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.48   |   | Increase in Authorized to 20,000,000,000                                                                                            |   | Incorporated by reference to Form 14-C filed on June 9, 2009                    |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.49   |   | Change of Trading Symbol to CMGR and Reverse Stock Split                                                                            |   | Incorporated by reference to Form 8-K filed on July 9, 2009                     |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.50   |   | Retention of Investment Banking Firms                                                                                               |   | Incorporated by reference to Form 8-K filed on August 19, 2009                  |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.51   |   | Quarterly Report for 2nd  Quarter 2009                                                                                    |   | Incorporated by reference to Form 10-Q filed on August 19, 2009                 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.52   |   | Amended Quarterly Report for 2nd  Quarter 2009                                                                            |   | Incorporated by reference to Form 10-QA filed on August 20, 2009                |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.53   |   | Entry Into a Material Definitive Agreement with JMJ Financial                                                                       |   | Incorporated by reference to Form 8-K filed on September 3, 2009                |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.54   |   | Convertible Promissory Note dated August 18, 2009, by and among the Company and JMJ Financial                                       |   | Incorporated by reference as Exhibit 4.1 to Form 8-K filed on September 3, 2009 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.55   |   | Secured Collateralized Promissory Note dated August 18, 2009 by and among JMJ Financial and the Company                             |   | Incorporated by reference as Exhibit 4.2 to Form 8-K filed on September 3, 2009 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.56   |   | Entry Into a Material Definitive Agreement with New Millennium Capital Partners III LLC                                             |   | Incorporated by reference to Form 8-K filed on September 4, 2009                |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.57   |   | Securities Purchase Agreement dated August 31, 2009, by and among the Company and New Millennium Capital Partners III LLC           |   | Incorporated by reference as Exhibit 4.1 to Form 8-K filed on September 4, 2009 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.58   |   | Form of Callable Convertible Secured Note dated August 31, 2009, by and among New Millennium Capital Partners III LLC               |   | Incorporated by reference as Exhibit 4.2 to Form 8-K filed on September 4, 2009 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.59   |   | Registration Rights Agreement dated August 31, 2009 by and among New Millennium Capital Partners III LLC                            |   | Incorporated by reference as Exhibit 4.3 to Form 8-K filed on September 4, 2009 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.60   |   | Security Agreement dated August 31, 2009 by and among the Company and New Millennium Capital Partners III LLC                       |   | Incorporated by reference as Exhibit 4.4 to Form 8-K filed on September 4, 2009 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.61   |   | Intellectual Property Security Agreement dated August 31, 2009 by and among the Company and New Millennium Capital Partners II, LLC |   | Incorporated by reference as Exhibit 4.5 to Form 8-K filed on September 4, 2009 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.62   |   | Subsidiary Security Agreement dated August 31, 2009 by and among the Company and New Millennium Capital Partners III LLC            |   | Incorporated by reference as Exhibit 4.6 to Form 8-K filed on September 4, 2009 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.63   |   | Entry Into a Material Definitive Agreement Universal City Office Space                                                              |   | Incorporated by reference to Form 8-K filed on September 16, 2009               |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.64   |   | Entry Into a Material Definitive Agreement and Unregistered Sale of Equity Securities                                               |   | Incorporated by reference to Form 8-K filed on October 2, 2009                  |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.65   |   | Notice of Acquisition LOI’s                                                                                                   |   | Incorporated by reference to Form 8-K filed on October 5, 2009                  |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.66   |   | S-8 Registration                                                                                                                    |   | Incorporated by reference to Form S-8 filed on November 5, 2009                 |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.67   |   | Quarterly Report for 3rd Quarter 2009                                                                                               |   | Incorporated by reference to Form 10-Q filed on October 16, 2009                |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.68   |   | Unregistered Sale of Equity Securities                                                                                              |   | Incorporated by reference to Form 8-K filed on December 31, 2009                |
|   |   |   |                                                                                                                                |   |                                                                            |
|   | 4.69   |   | Unregistered Sale of Equity Securities                                                                                              |   | Incorporated by reference to Form 8-K filed on February 11, 2010                |
|   |   |   |                                                                                                                                |   |                                                                            |

----

|   | 4.70   |   | Unregistered Sale of Equity Securities                                                                                                                                                                                        |   | Incorporated by reference to Form 8-K filed on February 11, 2010             |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.71   |   | Unregistered Sale of Equity Securities                                                                                                                                                                                        |   | Incorporated by reference to Form 8-K filed on February 11, 2010             |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.72   |   | Acquisition of Beneficial Ownership                                                                                                                                                                                           |   | Incorporated by reference to Form 13-D filed on February 18, 2010            |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.73   |   | Unregistered Sale of Equity Securities                                                                                                                                                                                        |   | Incorporated by reference to Form 8-K filed on February 19, 2010             |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.74   |   | Funding Freeze Notice Due to DTCC Chill                                                                                                                                                                                       |   | Incorporated by reference to Form 8-K filed on March 5, 2010                 |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.75   |   | Unregistered Sale of Equity Securities                                                                                                                                                                                        |   | Incorporated by reference to Form 8-K filed on March 16, 2010                |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.76   |   | Entry Into a Material Definitive Agreement with New Millennium Capital Partners III LLC, AJW Master Fund II, LLC, AJW Master Fund, LLC. and AJW Partners, LLC, AJW Partners II, LLC                                           |   | Incorporated by reference to Form 8-K filed on March 24, 2010                |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.77   |   | Securities Purchase Agreement dated July 31, 2008, by and among the Company and New Millennium Capital Partners III LLC, AJW Master Fund II, LLC, AJW Master Fund, LLC. and AJW Partners, LLC, AJW Partners II, LLC           |   | Incorporated by reference as Exhibit 4.1 to Form 8-K filed on March 24, 2010 |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.78   |   | Form of Callable Convertible Secured Note dated July 31, 2008, by and among New Millennium Capital Partners III LLC, AJW Master Fund II, LLC, AJW Master Fund, LLC. and AJW Partners, LLC, AJW Partners II, LLC               |   | Incorporated by reference as Exhibit 4.2 to Form 8-K filed on March 24, 2010 |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.79   |   | Registration Rights Agreement dated July 31, 2008 by and among New Millennium Capital Partners III LLC, AJW Master Fund II, LLC, AJW Master Fund, LLC. and AJW Partners, LLC, AJW Partners II, LLC                            |   | Incorporated by reference as Exhibit 4.3 to Form 8-K filed on March 24, 2010 |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.80   |   | Security Agreement dated July 31, 2008 by and among the Company and New Millennium Capital Partners III LLC, AJW Master Fund II, LLC, AJW Master Fund, LLC. and AJW Partners, LLC, AJW Partners II, LLC                       |   | Incorporated by reference as Exhibit 4.4 to Form 8-K filed on March 24, 2010 |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.81   |   | Intellectual Property Security Agreement dated July 31, 2008 by and among the Company and New Millennium Capital Partners III LLC, AJW Master Fund II, LLC, AJW Master Fund, LLC. and AJW Partners, LLC, AJW Partners II, LLC |   | Incorporated by reference as Exhibit 4.5 to Form 8-K filed on March 24, 2010 |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 4.82   |   | Subsidiary Security Agreement dated July 31, 2008 by and among the Company and New Millennium Capital Partners III LLC, AJW Master Fund II, LLC, AJW Master Fund, LLC. and AJW Partners, LLC, AJW Partners II, LLC            |   | Incorporated by reference as Exhibit 4.6 to Form 8-K filed on March 24, 2010 |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 31.1   |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                             |   |                                                                         |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 31.2   |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                             |   |                                                                         |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 32.1   |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                             |   |                                                                         |
|   |   |   |                                                                                                                                                                                                                          |   |                                                                         |
|   | 32.2   |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                             |   |                                                                         |

----

|                                                                                 |               |
|--------------------------------------------------------------------------------------|--------------------|
|  REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                        |  F-2 AND 3    |
|                                                                                 |               |
|  BALANCE SHEETS AS OF DECEMBER 31, 2009 and 2008                                |  F-4          |
|                                                                                 |               |
|  STATEMENTS OF OPERATIONS FOR 2009, 2008 AND FOR INCEPTION TO DECEMBER 31, 2009 |  F-5          |
|                                                                                 |               |
|  STATEMENTS OF STOCKHOLDERS' DEFICIT FOR INCEPTION TO DECEMBER 31, 2009         |  F-6 - F-24   |
|                                                                                 |               |
|  STATEMENTS OF CASH FLOWS FOR 2009, 2008 AND FOR INCEPTION TO DECEMBER 31, 2009 |  F-25 AND 21  |
|                                                                                 |               |
|  NOTES TO FINANCIAL STATEMENTS                                                  |  F-22 TO F-46 |

----

----

----

| Camelot Entertainment Group, Inc.(A Development Stage Company)                                                 |   |         |        |   |         |   |
|----------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|--------------|--------|
| Balance Sheets                                                                                                 |   |         |        |   |         |   |
|                                                                                                           |   |         |        |   |         |   |
| ASSETS                                                                                                         |   |
|                                                                                                           |   | December 31, |        |   | December 31, |   |
|                                                                                                           |   | 2009         |        |   | 2008         |   |
|                                                                                                           |   |         |        |   |         |   |
| Current Assets                                                                                                 |   |         |        |   |         |   |
| Cash                                                                                                           |   | $            | 56,320      |   |         | $      | 175 |   |
| Prepaid Expenses                                                                                               |   |         | 53,345      |   |         |   | 1,733 |   |
| Total Current Assets                                                                                           |   |         | 109,665     |   |         |   | 1,908 |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
| Total other assets                                                                                             |   |         | 37,350      |   |         |   | - |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
|     Total Assets                                                                           |   | $            | 147,015     |   |         | $      | 1,908 |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                          |   |         |
|                                                                                                           |   |         |        |   |         |   |   |   |
| Current Liabilities                                                                                            |   |         |        |   |         |   |   |   |
| Accounts Payable and Accrued Liabilities                                                                       |   | $            | 529,759     |   |         | $      | 206,847 |   |
| Accrued expenses to related parties                                                                            |   |         | 627,584     |   |         |   | 722,000 |   |
| Secured Convertible Notes Payable, net of discount of $166,954  and $394,506  respectively |   |         | 364,504     |   |         |   | 92,070 |   |
| Derivative Liability - Conversion Feature                                                                      |   |         | 121,828     |   |         |   | 147,838 |   |
| Note Payable to Shareholder                                                                                    |   |         | -           |   |         |   | 215,598 |   |
| Stockholder advances                                                                                           |   |         | -           |   |         |   | 22,830 |   |
| Convertible Notes Payable                                                                                      |   |         | -           |   |         |   | 15,000 |   |
| Total Current Liabilities                                                                                      |   |         | 1,643,675   |   |         |   | 1,422,183 |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
| Long Term Liabilities                                                                                          |   |         |        |   |         |   |   |   |
| Derivative Liability - Preferred Stock Class A, B, and C                                                  |   |         | 21,620      |   |         |   | 65,630 |   |
| Secured Convertible Note Payable, net of Discount  $409,486 and $407,246, respectively               |   |         | 309,657     |   |         |   | 311,897 |   |
| Derivative Liability – Embedded Conversion Feature                                                       |   |         | 512,198     |   |         |   | 218,500 |   |
| Derivative Liability - Warrant                                                                                 |   |         | -           |   |         |   | 3,992 |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
| Total Long Term Liabilities                                                                                    |   |         | 843,475     |   |         |   | 600,019 |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
| Total Liabilities                                                                                              |   |         | 2,487,150   |   |         |   | 2,022,202 |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
| Class A, B, C Convertible Preferred Stock                                                                 |   |         | 56,505      |   |         |   | 50,905 |   |
| par value $0.0001 per share, 50,000,000 shares authorized: 10,147,510, 9,896,510 and 7,151,500                 |   |         |        |   |         |   |   |   |
| shares issued and outstanding as of December 31, 2009                                                          |   |         |        |   |         |   |   |   |
| par value $0.0001 per share, 50,000,000 shares authorized: 7,347,510, 7,196,510 and 7,151,500                  |   |         |        |   |         |   |   |   |
| shares issued and outstanding as of December 31, 2008                                                          |   |         |        |   |         |   |   |   |
| Stockholders' Deficit                                                                                          |   |         |        |   |         |   |   |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
|   Common Stock; Par Value $0.0001 Per Share; Authorized                                              |   |         |        |   |         |   |   |   |
|    19,900,000,000 Shares;  3,061,330,703 Shares                                       |   |         |        |   |         |   |   |   |
|      Issued and 2,961,330,703 Outstanding as of December 31, 2009                |   |         | 296,133     |   |         |   | 223 |   |
| Authorized 2,950,000,000 shares; 2,234,254 issued and                                                     |   |         |        |   |         |   |   |   |
| 2,233,814 shares outstanding as of December 31, 2008                                                      |   |         |        |   |         |   |   |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
|   Additional Paid-In Capital                                                                         |   |         | 18,272,050  |   |         |   | 14,633,599 |   |
|   Deficit Accumulated During the Development Stage                                                   |   |         | (20,964,823 | )      |         |   | (16,705,021 | ) |
|                                                                                                           |   |         | -           |   |         |   |   |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
| Total Stockholders' Deficit                                                                                    |   |         | (2,396,640  | )      |         |   | (2,071,199 | ) |
|                                                                                                           |   |         |        |   |         |   |   |   |
|     Total Liabilities and Stockholders' Deficit                                            |   | $            | 147,015     |   |         | $      | 1,908 |   |
|                                                                                                           |   |         |        |   |         |   |   |   |
| The accompanying notes are an integral part of theses financial statements.                                    |   |         |        |   |         |

----

| Camelot Entertainment Group, Inc.                     |
|-------------------------------------------------------|
| (A Development Stage Company)Statements of Operations |
|                                                  |   |
|                                                  |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |   |   | From |   |
|                                                  |   |   |   |   |   |   |   | Inception on |   |
|                                                  |   |   |   |   |   For Year |   |   | April 21, 1999 |   |
|                                                  |   | For Year ended |   |   |   ended |   |   | through |   |
|                                                  |   | December 31, |   |   | December 31, |   |   | December 31, |   |
|                                                  |   | 2009 |   |   | 2008 |   |   | 2009 |   |
|                                                  |   |   |   |   |   |   |   | (Unaudited) |   |
| REVENUE                                               |   | $ | - |   |   | $ | - |   |   | $ | 58,568 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total Revenue           |   |   | - |   |   |   | - |   |   |   | 58,568 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs of services                                     |   |   | - |   |   |   | - |   |   |   | 95,700 |   |
| Sales and marketing                                   |   |   | - |   |   |   | - |   |   |   | 53,959 |   |
| Research and development                              |   |   | - |   |   |   | - |   |   |   | 252,550 |   |
| General and administrative                            |   |   | 2,086,807 |   |   |   | 1,406,916 |   |   |   | 15,505,374 |   |
| Impairment of assets                                  |   |   | - |   |   |   | - |   |   |   | 2,402,338 |   |
| Impairment of investments in                          |   |   |   |   |   |   |   |   |   |   |   |   |
| other companies                                       |   |   | - |   |   |   | - |   |   |   | 710,868 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total Expenses                |   |   | 2,086,807 |   |   |   | 1,406,916 |   |   |   | 19,020,789 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| NET OPERATING LOSS                                    |   |   | (2,086,807 | ) |   |   | (1,406,916 | ) |   |   | (18,962,221 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest (Expense)                                    |   |   | (2,284,364 | ) |   |   | (625,711 | ) |   |   | (4,459,831 | ) |
| Gain/ (loss) on derivative liabilities                |   |   | 111,369 |   |   |   | 1,404,052 |   |   |   | 2,001,729 |   |
| Other income - CSI investors                          |   |   | - |   |   |   | 200,000 |   |   |   | 200,000 |   |
| Gain on extinguishment of debt                        |   |   | - |   |   |   | - |   |   |   | 255,500 |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total Other Income (Expenses) |   |   | (2,172,995 | ) |   |   | 978,341 |   |   |   | (2,002,602 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                              |   | $ | (4,259,802 | ) |   | $ | (428,575 | ) |   | $ | (20,964,823 | ) |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC AND DILUTIVE LOSS PER COMMON SHARE         |   | $ | (0.01 | ) |   | $ | (3.39 | ) |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF                            |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARES OUTSTANDING                                    |   |   | 626,419,938 |   |   |   | 126,591 |   |   |   |   |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   |  Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   |  Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2004                               |   |   | 484 |   |   | - |   |   | - |   |   | - |   |   | 5,498,396 |   |   | (6,059,442 | )  |   | - |   |   | - |   |   | (561,046 | )  |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services                               |   |   | 1 |   |   | - |   |   | - |   |   | - |   |   | 3,000 |   |   | - |   |   | - |   |   | - |   |   | 3,000 |   |
| Shares issued for financing                              |   |   | 97 |   |   | - |   |   | - |   |   | - |   |   | 203,739 |   |   | - |   |   | - |   |   | - |   |   | 203,739 |   |
| Subscriptions receivable for financing agreement         |   | - |   |   | - |   |   | - |   |   | - |   |   |   |   |   | - |   |   | (116,069 | )  |   | - |   |   | (116,069 | )  |
| Share issued for services                                |   |   | 343 |   |   | - |   |   | - |   |   | - |   |   | 1109509 |   |   |   |   |   | - |   |   | - |   |   | 1,109,509 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share issued for financing                               |   |   | 109 |   |   | - |   |   | - |   |   | - |   |   | 229065 |   |   | - |   |   | (316,003 | ) |   | - |   |   | (86,938 | ) |
| Advances offset sub a/r                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 174,000 |   |   | - |   |   | 174,000 |   |
| Shares issued for debt                                   |   |   | 14 |   |   | - |   |   | - |   |   | - |   |   | 40000 |   |   | - |   |   | - |   |   | - |   |   | 40,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for amt due                                |   |   | 23 |   |   | - |   |   | - |   |   |   |   |   | 48590 |   |   | - |   |   | - |   |   | - |   |   | 48,590 |   |
| Value of option exercised                                |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 351000 |   |   | - |   |   | - |   |   | - |   |   | 351,000 |   |
| Net (loss)                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,265,278 | ) |   |   |   |   | - |   |   | (1,265,278 | ) |
| Balance as of December 31, 2004                          |   |   | 1,071 |   |   | - |   |   | - |   |   | - |   |   | 7483299 |   |   | (7,324,720 | ) |   | (258,072 | ) |   | - |   |   | (99,493 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for                                        |   |   | 57 |   |   | - |   |   | - |   |   | - |   |   | 220000 |   |   | - |   |   |   |   |   | - |   |   | 220,000 |   |
| consulting services                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for                                        |   |   | 33 |   |   | - |   |   | - |   |   | - |   |   | 189,844 |   |   | - |   |   |   |   |   | - |   |   | 189,844 |   |
| officers salaries                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to                                         |   |   | 26 |   |   | - |   |   | - |   |   | - |   |   | 80927 |   |   | - |   |   |   |   |   | - |   |   | 80,927 |   |
| Eagle for expenses paid                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for                                        |   |   | 3 |   |   | - |   |   | - |   |   | - |   |   | 10,000 |   |   | - |   |   |   |   |   | - |   |   | 10,000 |   |
| consulting services                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Camelot Entertainment Group, Inc.                        |   |
|----------------------------------------------------------|--------|
| (a Development Stage Company)                            |   |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |   |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for                                        |   |   | 51 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 175,000 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 175,000 |   |
| officers salaries                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to                                         |   |   | 21 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 119,672 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 119,672 |   |
| Eagle for expenses paid                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Eagle                                   |   |   | 25 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 122,753 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 122,753 |   |
| 20% of shares issued                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for                                        |   |   | 51 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 259,941 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 259,941 |   |
| Shareholder loans 2005                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class A Preferred Stock issued                           |   |   | - |   |   |   |   |   |   |   | 51,000 |   |   |   | 5 |   |   |   | 560,995 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 561,000 |   |
| Class B Preferred Stock issued                           |   |   | - |   |   |   | - |   |   |   | 51,000 |   |   |   | 5 |   |   |   | 2,804,995 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 2,805,000 |   |
| Net Loss                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,500,139 | ) |   |   |   |   |   | - |   |   |   | (4,500,139 | )  |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Dec 31, 2005                                  |   |   | 1,338 |   |   |   | - |   |   |   | 102,000 |   |   |   | 10 |   |   |   | 12,027,426 |   |   |   | (11,824,859 | ) |   |   | (258,072 | ) |   |   | - |   |   |   | (55,496 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss at December 31, 2006                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,348,352 | ) |   |   | - |   |   |   | - |   |   |   | (2,348.353 | )  |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for                                        |   |   | 74 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 470,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 470,000 |   |
| officers salaries                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Consultants                             |   |   | 29 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 181,088 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 181,088 |   |
| Shares issued to Eagle                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for expenses paid                                        |   |   | 17 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 114,321 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 114,321 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Eagle                                   |   |   | 18 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 118,182 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 118,182 |   |

----

| Camelot Entertainment Group, Inc.                        |   |
|----------------------------------------------------------|--------|
| (a Development Stage Company)                            |   |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |   |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Eagle                                   |   |   | 26 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 170,444 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 170,444 |   |
| per agreement 20%                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Scorpion Bay LLC                        |   |   | 21 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 135,150 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 135,150 |   |
| Imputed interest on related notes payable                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 19,238 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 19,238 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Dec 31, 2006                                  |   |   | 1,524 |   |   |   | - |   |   |   | 102,000 |   |   |   | 10 |   |   |   | 13,235,848 |   |   |   | (14,173,211 | ) |   |   | (258,072 | ) |   |   | - |   |   |   | (1,195,425 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Nucore                                  |   |   | 71 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500,000 |   |   |   | - |   |   |   | (500,000 | ) |   |   | - |   |   |   | - |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for interest on Note Payable               |   |   | 100 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 339,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 339,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for expenses paid                          |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,078 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,078 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services                               |   |   | 18 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 50,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for conversion of notes payable            |   |   | 18 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 29,424 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 29,424 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives liability relieved by conversions on N/P     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,399 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,399 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Imputed interest on Shareholders loans                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,246 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,246 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for service - Bastien & Associates     |   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,083 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,083 |   |
|                                                     |   |   | 39 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,376 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,376 |   |
| NIR Fairhill Capital                                     |   |   | 129 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,755 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,755 |   |
| Shares issued for interest on Notes payable              |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,100 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,100 |   |
| Scorpion Bay LLC                                         |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,500 |   |
|                                                     |   |   | 40 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,800 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services -  Patrick Winn     |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,800 |   |
| Shares issued for services -  Susan Sanchez    |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,800 |   |
| Cancelled Subscription Receivable 2003                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (258,072 | ) |   |   | - |   |   |   | 258,072 |   |   |   | - |   |   |   | - |   |
| Shares issued to Scorpin Bay, LLC                        |   |   | 130 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 31,137 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 31,137 |   |
| Shares issued for Services - Patrick Winn                |   |   | 40 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,134 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 9,134 |   |
| Shares issued for Services - Susan Sanchez               |   |   | 49 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11,372 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 11,372 |   |
| Preferred Stock - Series A                               |   |   | - |   |   |   | - |   |   |   | 144,010 |   |   |   | 14 |   |   |   | 190,080 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 190,094 |   |
| Shares issued to Dolpin Communities                      |   |   | 71 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,772 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 8,772 |   |
| Preferred Stock - Series B                               |   |   | - |   |   |   | - |   |   |   | 35,510 |   |   |   | 4 |   |   |   | 117,178 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 117,182 |   |
| Shares issued to NIR                                     |   |   | 43 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,535 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 5,535 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for legal services - Chris Flannery        |   |   | 36 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to John Kozmur - investment                |   |   | 286 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 60,000 |   |
| Shares issued to Jeff Zuckerman - investment             |   |   | 286 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 60,000 |   |
| Shares issued to Joseph Petrucelli - legal services      |   |   | 36 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Chris Davis - services                  |   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,192 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 1,192 |   |
| Shares issued to Micheal Ellis - services                |   |   | 68 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 70,000 |   |
| Shares issued to Lewis Consulting - services             |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Craig Prater - services                 |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 729 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 729 |   |
| Shares issued to Scorpin Bay, LLC                        |   |   | 210 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 52,928 |   |   |   | - |   |   |   |   |   |   | - |   |   |   | 52,928 |   |
| Cancelled Subscription Receivable to Nucore              |   |   | (71 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (500,000 | ) |   |   | - |   |   |   | 500,000 |   |   |   | - |   |   |   | - |   |
| Derivative Liability - Preferred Stock A & B         |   |   | - |   |   |   | - |   |   |   | (281,520 | )  |   |   | (28 | )  |   |   | (307,039 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (307,067 | )  |
| Interest Expense for Shareholders Loans                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,103,235 | ) |   |   | - |   |   |   | - |   |   |   | (2,103,235 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2007                             |   |   | 3,207 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,862,155 |   |   |   | (16,276,446 | ) |   |   | - |   |   |   | - |   |   |   | (2414,291 | )  |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Schubert Flint for services             |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to NIR                                     |   |   | 79 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,495 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,495 |   |
| Preferred shares issued to Scorpion Bay                  |   |   |   |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | 5,829 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,829 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt conversion 2nd qtr                                  |   |   |   | 450 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 25,646 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 25,646 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Corporate Solution, Inc.                | 8/13/2008 |   |   | 143 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |
| Shares issued to investors escrow                        | 8/1/2008 |   |   | 1,429 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Shares issued to Scorpion Bay, LLC                       | 8/13/2008 |   |   | 132 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,611 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,611 |   |
| Shares issued to George Jackson                          | 8/13/2008 |   |   | 286 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Atwell Group, Inc.                      | 8/13/2008 |   |   | 400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,000 |   |
| Shares issued to Jeff Brown                              | 8/27/2008 |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 300 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 300 |   |
| Shares issued to investors escrow adjustment             | 8/27/2008 |   |   | (14 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (10 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (10 | )  |
| Shares at stock split                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to CEDE                                    | 9/8/2008 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to NIR                                     | 8/29/2008 |   |   | 178 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 749 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 749 |   |
| Shares issued to NIR                                     | 9/3/2008 |   |   | 178 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,372 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,372 |   |
| Shares issued to NIR                                     | 9/12/2008 |   |   | 178 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 936 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 936 |   |
| Shares issued to NIR                                     | 9/17/2008 |   |   | 178 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 842 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 842 |   |
| Shares issued to NIR                                     | 9/18/2008 |   |   | 79 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 160 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 160 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to NIR                                     | 9/22/2008 |   |   | 100 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 244 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 244 |   |
| Shares issued to NIR                                     | 9/24/2008 |   |   | 178 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 964 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 964 |   |
| Shares issued to NIR                                     | 9/26/2008 |   |   | 1,141 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,017 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,017 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to K&L Enterprises                     | 9/12/2008 |   |   | 2,857 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Patrick Winn                            | 9/5/2008 |   |   | 357 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |
| Shares issued to Robert Atwell                           | 9/18/2008 |   |   | 2,857 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |
| Shares issued to George Jackson                          | 9/18/2008 |   |   | 429 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 900 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 900 |   |
| Shares issued to George Jackson                          | 9/19/2008 |   |   | 1,429 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |
| Shares issued to Patrick Winn                            | 9/19/2008 |   |   | 357 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500 |   |
| Shares issued to Patrick Winn                            | 9/19/2008 |   |   | 357 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500 |   |
| Shares issued to Robert Atwell                           | 9/19/2008 |   |   | 7,143 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 9,999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to George Jackson                          | 9/26/2008 |   |   | 2,857 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
| Shares issued to Robert Atwell                           | 9/26/2008 |   |   | 45,455 |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | 69,995 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |
| Shares issued to Chris Flannery                          | 9/26/2008 |   |   | 1,429 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Thomas Stepp                            | 9/26/2008 |   |   | 714 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,100 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,100 |   |
| Shares issued to Patrick Winn                            | 9/26/2008 |   |   | 714 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,100 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,100 |   |
| Shares issued to Joe Petrucelli                          | 9/26/2008 |   |   | 1,429 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Vince Monaco                            | 9/26/2008 |   |   | 1,429 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Phillip Parsons                         | 9/26/2008 |   |   | 1,429 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Douglas Warner                          | 9/27/2008 |   |   | 2,857 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
| Shares issued to Bastien Living Trust                    | 9/27/2008 |   |   | 2,857 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
| Shares issued to Lewis Consulting Group                  | 9/27/2008 |   |   | 2,857 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
| Shares issued to Jeffory Smith                           | 9/27/2008 |   |   | 1,429 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Tamara Atwell                           | 9/27/2008 |   |   | 3,247 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Susan Sanchez                           | 9/27/2008 |   |   | 3,247 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Patrick Winn                            | 9/27/2008 |   |   | 3,247 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Phillip Parsons                         | 9/27/2008 |   |   | 3,247 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to CEDE                                    | 9/30/2008 |   |   | 71 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Hope Capital, Inc                       | 11/14/2008 |   |   | 25,714 |   |   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | 12,597 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,600 |   |
| Shares issued to Hope Capital, Inc                       | 11/18/2008 |   |   | 28,571 |   |   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | 15,997 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |
| Shares issued to K&L international,  Inc   | 11/19/2008 |   |   | 31,429 |   |   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | 15,397 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,400 |   |
| Shares issued to K&L international,  inc   | 11/25/2008 |   |   | 48,571 |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | 13,595 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,600 |   |
| Shares issued to Hope Capital, Inc/                      | 11/25/2008 |   |   | 48,571 |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | 13,595 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,600 |   |
| K&L international,  inc                    | 12/2/2008 |   |   | 57,143 |   |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | 15,994 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |
| Hope Capital, Inc/                                       | 12/3/2008 |   |   | 35,714 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 9,996 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Hope Capital, Inc/                                       | 12/8/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 19,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| K&L international,  inc                    | 12/8/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 19,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Hope Capital, Inc/                                       | 12/17/2008 |   |   | 85,714 |   |   |   | 9 |   |   |   | - |   |   |   | - |   |   |   | 11,991 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,000 |   |
| K&L international,  inc                    | 12/17/2008 |   |   | 7,143 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Watson Investment Enterprises, Inc.                      | 12/18/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 9,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Watson Investment Enterprises, Inc.                      | 12/18/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 9,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Watson Investment Enterprises, Inc.                      | 12/29/2008 |   |   | 142,857 |   |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | 19,986 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to La Jolla Investment                     | 10/1/2008 |   |   | 10,000 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 20,999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,000 |   |
| Shares issued to Tania Babeshoff                         | 10/1/2008 |   |   | 10,000 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 20,999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,000 |   |
| Shares issued to ATG, Inc                                | 10/2/2008 |   |   | 10,000 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 33,799 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 33,800 |   |
| Shares issued to Ongkaruck Sripetch                      | 10/2/2008 |   |   | 10,000 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 38,499 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 38,500 |   |
| Shares issued to Robert Atwell                           | 10/8/2008 |   |   | 50,000 |   |   |   | 5 |   |   |   | - |   |   |   | - |   |   |   | 13,995 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,000 |   |
| Shares issued to Rodger Spainhower                       | 10/14/2008 |   |   | 2,857 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 800 |   |
| Shares issued to Alpha Trade                             | 11/7/2008 |   |   | 12,500 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 16,860 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,861 |   |
| Shares issued to Philip Parsons                          | 11/10/2008 |   |   | 7,143 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 8,999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |
| Shares issued to Patrick Winn                            | 11/10/2008 |   |   | 3,571 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,500 |   |
| Shares issued to Tamara Atwell                           | 11/10/2008 |   |   | 7,143 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 8,999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |
| Shares issued to Phil Scott                              | 11/19/2008 |   |   | 7,143 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 3,499 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,500 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Tamara Atwell                           | 11/21/2008 |   |   | 35,714 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 9,996 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Philip Parsons                          | 11/21/2008 |   |   | 35,714 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 9,996 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to George Jackson                          | 11/21/2008 |   |   | 35,714 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 9,996 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Robert Atwell                           | 11/21/2008 |   |   | 35,714 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 9,996 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Phil Scott                              | 12/2/2008 |   |   | 7,143 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 1,999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |
| Shares issued to Doug Warner                             | 12/31/2008 |   |   | 28,571 |   |   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | 3,997 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,000 |   |
| Shares issued to Rodger Spainhower                       | 12/31/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 9,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Philip Parsons                          | 12/31/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 9,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Tamara Atwell                           | 12/31/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 9,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to George Jackson                          | 12/31/2008 |   |   | 42,857 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 5,996 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |
| Shares issued to Robert Atwell                           | 12/31/2008 |   |   | 500,000 |   |   |   | 50 |   |   |   | - |   |   |   | - |   |   |   | 69,950 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |
| Shares issued to Phil Scott                              | 12/31/2008 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 1,999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |
| Shares issued to Vince Monaco                            | 12/31/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 9,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Chris Flannery                          | 12/31/2008 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 9,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Shares to NIR                           | 10/1/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 1,421 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,422 |   |
| Shares issued  to NIR                          | 10/3/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 1,262 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,263 |   |
| Shares issued  to NIR                          | 10/8/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 783 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 784 |   |
| Shares issued  to NIR                          | 10/13/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 143 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 144 |   |
| Shares issued to NIR                                     | 10/14/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (176 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (175 | ) |
| Shares issued  to NIR                          | 10/16/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (176 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (175 | ) |

----

| Camelot Entertainment Group, Inc.                        |       |
|----------------------------------------------------------|------------|
| (a Development Stage Company)                            |       |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |       |
| For the Period from January 1, 2004 to December 31, 2009 |       |
|                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |       |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |       |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued  to NIR                          | 10/27/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (176 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (175 | ) |
| Shares issued to NIR                                     | 10/31/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (191 | ) |
| Shares issued to NIR                                     | 11/5/2008  |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (191 | ) |
| Shares issued to NIR                                     | 11/7/2008  |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (191 | ) |
| Shares issued to NIR                                     | 11/10/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (191 | ) |
| Shares issued  to NIR                          | 11/11/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (188 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (187 | ) |
| Shares issued to NIR                                     | 11/14/2008 |   |   | 1,141 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (191 | ) |
| Shares issued to NIR                                     | 11/14/2008 |   |   | 1,929 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |
| Shares issued to NIR                                     | 11/18/2008 |   |   | 1,929 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |
| Shares issued to NIR                                     | 11/19/2008 |   |   | 1,929 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |
| Shares issued to NIR                                     | 11/20/2008 |   |   | 1,929 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (298 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (298 | ) |
| Shares issued to NIR                                     | 11/21/2008 |   |   | 4,286 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (660 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (660 | ) |
| Shares issued to NIR                                     | 11/25/2008 |   |   | 4,286 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (660 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (660 | ) |
| Shares issued to NIR                                     | 11/26/2008 |   |   | 6,246 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (1,050 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,049 | ) |
| Shares issued to NIR                                     | 12/1/2008  |   |   | 11,916 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (1,837 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,836 | ) |
| Shares issued to NIR                                     | 12/8/2008  |   |   | 11,916 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (2,004 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,003 | ) |
| Shares issued to NIR                                     | 12/23/2008 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | (2,403 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,402 | ) |
| Shares issued to NIR                                     | 12/30/2008 |   |   | 35,320 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 8,464 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,460 |   |
|                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NIR difference                                           |       |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) as of 12/31/08                         |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (428,575 | ) |   |   | - |   |   |   | - |   |   |   | (428,575 | ) |
|                                                     |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2008                             |       |   |   | 2,233,812 |   |   |   | 231 |   |   |   | - |   |   |   | - |   |   |   | 14,633,599 |   |   |   | (16,705,021 | ) |   |   | - |   |   |   | - |   |   |   | (2,071,199 | )  |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to NIR                                     | 1/6/2009 |   |   | 35,321 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 973 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 977 |   |
| Shares issued to NIR                                     | 1/9/2009 |   |   | 35,321 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 973 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 977 |   |
| Shares issued to NIR                                     | 1/16/2009 |   |   | 35,321 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 487 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 491 |   |
| Shares issued to NIR                                     | 1/23/2009 |   |   | 7,171 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 99 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 100 |   |
| Shares issued to NIR                                     | 2/3/2009 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 197 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 198 |   |
| Shares issued to NIR                                     | 2/13/2009 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 197 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 198 |   |
| Shares issued to NIR                                     | 2/23/2009 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 394 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 395 |   |
| Shares issued to NIR                                     | 2/27/2009 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 394 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 395 |   |
| Shares issued to NIR                                     | 3/2/2009 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 197 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 198 |   |
| Shares issued to NIR                                     | 3/5/2009 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 197 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 198 |   |
| Shares issued to NIR                                     | 3/9/2009 |   |   | 14,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 197 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 198 |   |
| Shares issued to NIR                                     | 3/20/2009 |   |   | 342,522 |   |   |   | 34 |   |   |   | - |   |   |   | - |   |   |   | 9,437 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,471 |   |
| Shares issued to NIR                                     | 3/31/2009 |   |   | 13,771 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 190 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 191 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Hope Capital                            | 1/6/2009 |   |   | 142,857 |   |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | 19,986 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Shares issued to Hope Capital                            | 2/23/2009 |   |   | 364,286 |   |   |   | 36 |   |   |   | - |   |   |   | - |   |   |   | 50,964 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51,000 |   |
| Shares issued to Hope Capital                            | 2/26/2009 |   |   | 428,571 |   |   |   | 43 |   |   |   | - |   |   |   | - |   |   |   | 59,957 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |
| Shares issued to Hope Capital                            | 3/2/2009 |   |   | 428,571 |   |   |   | 43 |   |   |   | - |   |   |   | - |   |   |   | 59,957 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |
| Shares issued to Hope Capital                            | 3/27/2009 |   |   | 428,571 |   |   |   | 43 |   |   |   | - |   |   |   | - |   |   |   | 29,957 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 30,000 |   |
| Shares issued to Watson Investment                       | 1/6/2009 |   |   | 428,571 |   |   |   | 43 |   |   |   | - |   |   |   | - |   |   |   | 59,957 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |
| Shares issued to Watson Investment                       | 1/15/2009 |   |   | 157,143 |   |   |   | 16 |   |   |   | - |   |   |   | - |   |   |   | 21,984 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,000 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Watson Investment                       | 2/26/2009 |   |   | 157,143 |   |   |   | 16 |   |   |   | - |   |   |   | - |   |   |   | 21,984 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,000 |   |
| Shares issued to Watson Investment                       | 3/19/2009 |   |   | 285,714 |   |   |   | 29 |   |   |   | - |   |   |   | - |   |   |   | 19,971 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Shares issued to Watson Investment                       | 3/24/2009 |   |   | 357,143 |   |   |   | 36 |   |   |   | - |   |   |   | - |   |   |   | 24,964 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 25,000 |   |
| Shares issued to Watson Investment                       | 3/27/2009 |   |   | 285,714 |   |   |   | 29 |   |   |   | - |   |   |   | - |   |   |   | 19,971 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Shares issued to Watson Investment                       | 3/31/2009 |   |   | 214,286 |   |   |   | 21 |   |   |   | - |   |   |   | - |   |   |   | 14,979 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |
| Shares issued to TJM Management                          | 1/28/2009 |   |   | 649,351 |   |   |   | 65 |   |   |   | - |   |   |   | - |   |   |   | 45,390 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 45,455 |   |
| Shares issued to TJM Management                          | 2/23/2009 |   |   | 649,351 |   |   |   | 65 |   |   |   | - |   |   |   | - |   |   |   | 90,844 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 90,909 |   |
| Shares issued to TJM Management                          | 2/26/2009 |   |   | 649,351 |   |   |   | 65 |   |   |   | - |   |   |   | - |   |   |   | 90,844 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 90,909 |   |
| Shares issued to TJM Management                          | 3/16/2009 |   |   | 649,351 |   |   |   | 65 |   |   |   | - |   |   |   | - |   |   |   | 45,390 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 45,455 |   |
| Shares issued to TJM Management                          | 3/24/2009 |   |   | 649,351 |   |   |   | 65 |   |   |   | - |   |   |   | - |   |   |   | 45,390 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 45,455 |   |
| Shares issued to Acacia Investors                        | 2/11/2009 |   |   | 142,857 |   |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | 9,986 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Acacia Investors                        | 2/24/2009 |   |   | 142,857 |   |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | 19,986 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Shares issued to Acacia Investors                        | 3/11/2009 |   |   | 142,857 |   |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | 9,986 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Phil Scott                              | 3/27/2009 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 4,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Phillip Parsons                         | 1/23/2009 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 4,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Camelot                                 |   |   |   | 8,128 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 568 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 569 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to NIR                                     | 4/1/2009 |   |   | 4,286 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 299 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 300 |   |
| Shares issued to NIR                                     | 4/7/2009 |   |   | 545,477 |   |   |   | 53 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Shares issued to TJ Management                           | 4/2/2009 |   |   | 428,571 |   |   |   | 43 |   |   |   | - |   |   |   | - |   |   |   | 29,957 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 30,000 |   |
| Shares issued to TJ Management                           | 4/2/2009 |   |   | 220,779 |   |   |   | 22 |   |   |   | - |   |   |   | - |   |   |   | 15,432 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,454 |   |
| Shares issued to TJ Management                           | 5/6/2009 |   |   | 649,351 |   |   |   | 65 |   |   |   | - |   |   |   | - |   |   |   | 45,390 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 45,455 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to New Media advisors                      | 4/6/2009 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 4,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Phil Scott                              | 4/6/2009 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 4,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Phil Scott                              | 5/6/2009 |   |   | 71,429 |   |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | 4,993 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to H. Kaye Dyal                            | 6/4/2009 |   |   | 57,143 |   |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | 3,994 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,000 |   |
| Shares issued to Rodger Spainhower                       | 6/17/2009 |   |   | 71,429 |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | 4,992 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Phil Scott                              | 6/17/2009 |   |   | 71,429 |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | 4,992 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Falcon Financial                        | 6/29/2009 |   |   | 642,857 |   |   |   | 64 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 64 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to NIR                                     | 7/17/2009 |   |   | 666,300 |   |   |   | 67 |   |   |   | - |   |   |   | - |   |   |   | 1,947 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,014 |   |
| Shares issued to NIR                                     | 7/24/2009 |   |   | 4,158,600 |   |   |   | 416 |   |   |   | - |   |   |   | - |   |   |   | 8,534 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,119 |   |
| Shares issued to NIR                                     | 7/28/2009 |   |   | 4,158,600 |   |   |   | 416 |   |   |   | - |   |   |   | - |   |   |   | 8,017 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,264 |   |
| Shares issued to NIR                                     | 8/7/2009 |   |   | 2,158,600 |   |   |   | 216 |   |   |   | - |   |   |   | - |   |   |   | 2,416 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,632 |   |
| Shares issued to NIR                                     | 8/7/2009 |   |   | 5,014,179 |   |   |   | 502 |   |   |   | - |   |   |   | - |   |   |   | 4,989 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,490 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to NIR                                     | 8/14/2009 |   |   | 7,172,801 |   |   |   | 717 |   |   |   | - |   |   |   | - |   |   |   | 5,352 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,070 |   |
| Shares issued to NIR                                     | 8/20/2009 |   |   | 7,172,801 |   |   |   | 717 |   |   |   | - |   |   |   | - |   |   |   | 2,230 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,948 |   |
| Shares issued to NIR                                     | 8/24/2009 |   |   | 7,172,801 |   |   |   | 717 |   |   |   | - |   |   |   | - |   |   |   | 2,230 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,948 |   |
| Shares issued to NIR                                     | 8/27/2009 |   |   | 7,172,801 |   |   |   | 717 |   |   |   | - |   |   |   | - |   |   |   | 2,230 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,948 |   |
| Shares issued to NIR                                     | 9/2/2009 |   |   | 7,172,801 |   |   |   | 717 |   |   |   | - |   |   |   | - |   |   |   | 2,230 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,948 |   |
| Shares issued to NIR                                     | 9/10/2009 |   |   | 25,144,000 |   |   |   | 2,514 |   |   |   | - |   |   |   | - |   |   |   | 7,818 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,332 |   |
| Shares issued to NIR                                     | 9/15/2009 |   |   | 25,144,000 |   |   |   | 2,514 |   |   |   | - |   |   |   | - |   |   |   | 7,818 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11,052 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to NIR                                     | 9/16/2009 |   |   | 25,144,000 |   |   |   | 2,514 |   |   |   | - |   |   |   | - |   |   |   | 7,818 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11,052 |   |
| Shares issued to NIR                                     | 9/21/2009 |   |   | 25,144,000 |   |   |   | 2,514 |   |   |   | - |   |   |   | - |   |   |   | 7,818 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11,052 |   |
| Shares issued to NIR                                     | 9/23/2009 |   |   | 25,144,000 |   |   |   | 2,514 |   |   |   | - |   |   |   | - |   |   |   | 7,818 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11,052 |   |
| Shares issued to NIR                                     | 9/28/2009 |   |   | 11,700,000 |   |   |   | 1,170 |   |   |   | - |   |   |   | - |   |   |   | 3,492 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,662 |   |
| Shares issued to JMJ                                     | 8/27/2009 |   |   | 14,000,000 |   |   |   | 1,400 |   |   |   | - |   |   |   | - |   |   |   | 5,460 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,860 |   |
| Shares issued to JMJ                                     | 8/31/2009 |   |   | 14,500,000 |   |   |   | 1,450 |   |   |   | - |   |   |   | - |   |   |   | 5,655 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,105 |   |
| Shares issued to JMJ                                     | 9/3/2009 |   |   | 14,600,000 |   |   |   | 1,460 |   |   |   | - |   |   |   | - |   |   |   | 5,694 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,154 |   |
| Shares issued to JMJ                                     | 9/10/2009 |   |   | 14,900,000 |   |   |   | 1,490 |   |   |   | - |   |   |   | - |   |   |   | 5,811 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,301 |   |
| Shares issued to JMJ                                     | 9/11/2009 |   |   | 32,000,000 |   |   |   | 3,200 |   |   |   | - |   |   |   | - |   |   |   | 12,480 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,680 |   |
| Shares issued to JMJ                                     | 9/15/2009 |   |   | 12,040,817 |   |   |   | 1,204 |   |   |   | - |   |   |   | - |   |   |   | 4,696 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,900 |   |
| Shares issued to JMJ                                     | 9/16/2009 |   |   | 16,500,000 |   |   |   | 1,650 |   |   |   | - |   |   |   | - |   |   |   | 6,435 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,085 |   |
| Shares issued to JMJ                                     | 9/23/2009 |   |   | 32,000,000 |   |   |   | 3,200 |   |   |   | - |   |   |   | - |   |   |   | 12,480 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,680 |   |
| Shares issued to JMJ                                     | 9/25/2009 |   |   | 32,500,000 |   |   |   | 3,250 |   |   |   | - |   |   |   | - |   |   |   | 5,850 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,100 |   |
| Shares issued to JMJ                                     | 9/29/2009 |   |   | 61,196,429 |   |   |   | 6,120 |   |   |   | - |   |   |   | - |   |   |   | 48,956 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 55,076 |   |
| Shares issued to Villam                                  | 9/23/2009 |   |   | 32,478,483 |   |   |   | 3,248 |   |   |   | - |   |   |   | - |   |   |   | 20,137 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 23,385 |   |
| Shares issued to Acacia/Primary                          | 7/14/2009 |   |   | 7,500,000 |   |   |   | 750 |   |   |   | - |   |   |   | - |   |   |   | 82,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 83,250 |   |
| Shares issued to Acacia/Primary                          | 8/7/2009 |   |   | 8,500,000 |   |   |   | 850 |   |   |   | - |   |   |   | - |   |   |   | 28,900 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 29,750 |   |
| Shares issued to Acacia/Primary                          | 8/13/2009 |   |   | 8,500,000 |   |   |   | 850 |   |   |   | - |   |   |   | - |   |   |   | 65,450 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 66,300 |   |
| Shares issued to Acacia/Primary                          | 8/19/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 33,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 34,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Epic                                    | 9/24/2009 |   |   | 54,500,000 |   |   |   | 5,450 |   |   |   | - |   |   |   | - |   |   |   | 54,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 59,950 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to K & L                               | 8/3/2009 |   |   | 8,000,000 |   |   |   | 800 |   |   |   | - |   |   |   | - |   |   |   | 36,800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 37,600 |   |
| Shares issued to K & L                               | 8/18/2009 |   |   | 13,000,000 |   |   |   | 1,300 |   |   |   | - |   |   |   | - |   |   |   | 49,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 50,700 |   |
| Shares issued to K & L                               | 8/28/2009 |   |   | 20,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 40,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 42,000 |   |
| Shares issued to K & L                               | 9/2/2009 |   |   | 25,000,000 |   |   |   | 2,500 |   |   |   | - |   |   |   | - |   |   |   | 40,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 42,500 |   |
| Shares issued to K & L                               | 9/8/2009 |   |   | 28,571,429 |   |   |   | 2,857 |   |   |   | - |   |   |   | - |   |   |   | 42,857 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 45,714 |   |
| Shares issued to Mazuma                                  | 9/11/2009 |   |   | 60,000,000 |   |   |   | 6,000 |   |   |   | - |   |   |   | - |   |   |   | 90,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 96,000 |   |
| Shares issued to Falcon Financial                        | 7/13/2009 |   |   | 1,050,000 |   |   |   | 105 |   |   |   | - |   |   |   | - |   |   |   | (7,368 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (7,263 | ) |
| Shares issued to TJ Management                           | 7/20/2009 |   |   | 11,250,000 |   |   |   | 1,125 |   |   |   | - |   |   |   | - |   |   |   | 133,875 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 135,000 |   |
| Shares issued to TJ Management                           | 7/28/2009 |   |   | 11,250,000 |   |   |   | 1,125 |   |   |   | - |   |   |   | - |   |   |   | 145,125 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 146,250 |   |
| Shares issued to TJ Management                           | 8/7/2009 |   |   | 16,000,000 |   |   |   | 1,600 |   |   |   | - |   |   |   | - |   |   |   | 54,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56,000 |   |
| Shares issued to TJ Management                           | 8/13/2009 |   |   | 16,000,000 |   |   |   | 1,600 |   |   |   | - |   |   |   | - |   |   |   | 123,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 124,800 |   |
| Shares issued to TJ Management                           | 8/18/2009 |   |   | 16,666,666 |   |   |   | 1,667 |   |   |   | - |   |   |   | - |   |   |   | 63,333 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 65,000 |   |
| Shares issued to TJ Management                           | 8/25/2009 |   |   | 16,666,666 |   |   |   | 1,667 |   |   |   | - |   |   |   | - |   |   |   | 41,667 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 43,334 |   |
| Shares issued to TJ Management                           | 8/31/2009 |   |   | 22,727,272 |   |   |   | 2,273 |   |   |   | - |   |   |   | - |   |   |   | 47,727 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 50,000 |   |
| Shares issued to TJ Management                           | 9/8/2009 |   |   | 31,250,000 |   |   |   | 3,125 |   |   |   | - |   |   |   | - |   |   |   | 46,875 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 50,000 |   |
| Shares issued to TJ Management                           | 9/10/2009 |   |   | 25,000,000 |   |   |   | 2,500 |   |   |   | - |   |   |   | - |   |   |   | 40,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 42,500 |   |
| Shares issued to TJ Management                           | 9/14/2009 |   |   | 50,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | 85,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 90,000 |   |
| Shares issued to TJ Management                           | 9/21/2009 |   |   | 50,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 75,000 |   |
| Shares issued to TJ Management                           | 9/29/2009 |   |   | 72,727,272 |   |   |   | 7,273 |   |   |   | - |   |   |   | - |   |   |   | 58,182 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 65,455 |   |
| Shares issued to Watson                                  | 7/15/2009 |   |   | 1,200,000 |   |   |   | 120 |   |   |   | - |   |   |   | - |   |   |   | 17,880 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 18,000 |   |
| Shares issued to Watson                                  | 7/23/2009 |   |   | 1,250,000 |   |   |   | 125 |   |   |   | - |   |   |   | - |   |   |   | 16,125 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,250 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Watson                                  | 7/28/2009 |   |   | 1,666,667 |   |   |   | 167 |   |   |   | - |   |   |   | - |   |   |   | 21,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,667 |   |
| Shares issued to Watson                                  | 8/4/2009 |   |   | 5,000,000 |   |   |   | 500 |   |   |   | - |   |   |   | - |   |   |   | 22,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,500 |   |
| Shares issued to Watson                                  | 8/10/2009 |   |   | 6,666,667 |   |   |   | 667 |   |   |   | - |   |   |   | - |   |   |   | 14,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,667 |   |
| Shares issued to Watson                                  | 8/14/2009 |   |   | 5,000,000 |   |   |   | 500 |   |   |   | - |   |   |   | - |   |   |   | 44,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 44,500 |   |
| Shares issued to Watson                                  | 8/20/2009 |   |   | 6,444,447 |   |   |   | 644 |   |   |   | - |   |   |   | - |   |   |   | 23,844 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24,488 |   |
| Shares issued to Watson                                  | 8/20/2009 |   |   | 3,555,553 |   |   |   | 356 |   |   |   | - |   |   |   | - |   |   |   | 13,155 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,511 |   |
| Shares issued to Watson                                  | 9/1/2009 |   |   | 50,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | 90,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 95,000 |   |
| Shares issued to Robert Atwell                           | 9/25/2009 |   |   | 50,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | 40,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 45,000 |   |
| Shares issued to HK Dyal                                 | 9/25/2009 |   |   | 20,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 18,000 |   |
| Shares issued to George Jackson                          | 9/25/2009 |   |   | 20,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 18,000 |   |
| Shares issued to Phillip Parsons                         | 7/16/2009 |   |   | 1,000,000 |   |   |   | 100 |   |   |   | - |   |   |   | - |   |   |   | 14,900 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |
| Shares issued to Complete Advisory                       | 8/13/2009 |   |   | 7,000,000 |   |   |   | 700 |   |   |   | - |   |   |   | - |   |   |   | 53,900 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 54,600 |   |
| Shares issued to Patrick Winn                            | 9/25/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 8,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |
| Shares issued to Mark Petroff                            | 8/19/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 33,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 34,000 |   |
| Shares issued to Jamie Thompson                          | 9/1/2009 |   |   | 25,000,000 |   |   |   | 2,500 |   |   |   | - |   |   |   | - |   |   |   | 45,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 47,500 |   |
| Shares issued to Ted Baer                                | 9/11/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |
| Shares issued to Bastien living trust                    | 9/11/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |
| Shares issued to Rodger Spainhower                       | 7/15/2009 |   |   | 500,000 |   |   |   | 50 |   |   |   | - |   |   |   | - |   |   |   | 7,450 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,500 |   |
| Shares issued to Rodger Spainhower                       | 9/11/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 15,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |
| Shares issued to Mark Petroff                            | 9/30/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 8,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |
| Shares issued to HAL Nominees ltd                        | 9/14/2009 |   |   | 30,000,000 |   |   |   | 3,000 |   |   |   | - |   |   |   | - |   |   |   | 51,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 54,000 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Camelot                                 | 7/15/2009 |   |   | 23 |   |   |   | 0 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Shares issued to Phil Scott                              | 9/28/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 8,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to TJ Management                           | 10/5/2009 |   |   | 121,212,121 |   |   |   | 12,121 |   |   |   | - |   |   |   | - |   |   |   | 84,848 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 96,969 |   |
| Shares issued to NIR                                     | 10/6/2009 |   |   | 65,272,199 |   |   |   | 6,527 |   |   |   | - |   |   |   | - |   |   |   | 10,052 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,579 |   |
| Shares issued to NIR                                     | 10/12/2009 |   |   | 37,000,000 |   |   |   | 3,700 |   |   |   | - |   |   |   | - |   |   |   | 5,698 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,398 |   |
| Shares issued to NIR                                     | 10/12/2009 |   |   | 28,272,199 |   |   |   | 2,827 |   |   |   | - |   |   |   | - |   |   |   | 3,732 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,559 |   |
| Shares issued to NIR                                     | 10/19/2009 |   |   | 40,000,000 |   |   |   | 4,000 |   |   |   | - |   |   |   | - |   |   |   | 6,160 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,160 |   |
| Shares issued to NIR                                     | 10/22/2009 |   |   | 25,272,000 |   |   |   | 2,527 |   |   |   | - |   |   |   | - |   |   |   | 4,448 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,975 |   |
| Shares issued to NIR                                     | 10/30/2009 |   |   | 65,272,000 |   |   |   | 6,527 |   |   |   | - |   |   |   | - |   |   |   | 10,052 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,579 |   |
| Shares issued to NIR                                     | 11/6/2009 |   |   | 30,000,000 |   |   |   | 3,000 |   |   |   | - |   |   |   | - |   |   |   | 3,960 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,960 |   |
| Shares issued to NIR                                     | 11/6/2009 |   |   | 5,000,000 |   |   |   | 500 |   |   |   | - |   |   |   | - |   |   |   | 660 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,160 |   |
| Shares issued to NIR                                     | 11/6/2009 |   |   | 8,000,000 |   |   |   | 800 |   |   |   | - |   |   |   | - |   |   |   | 1,056 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,856 |   |
| Shares issued to NIR                                     | 11/6/2009 |   |   | 7,500,000 |   |   |   | 750 |   |   |   | - |   |   |   | - |   |   |   | 990 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,740 |   |
| Shares issued to NIR                                     | 11/6/2009 |   |   | 37,786,000 |   |   |   | 3,779 |   |   |   | - |   |   |   | - |   |   |   | 4,988 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,767 |   |
| Shares issued to NIR                                     | 11/30/2009 |   |   | 88,286,000 |   |   |   | 8,829 |   |   |   | - |   |   |   | - |   |   |   | 11,693 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,522 |   |
| Shares issued to NIR                                     | 12/21/2009 |   |   | 107,323,175 |   |   |   | 10,732 |   |   |   | - |   |   |   | - |   |   |   | 4,709 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,441 |   |
| Shares issued to NIR                                     | 12/30/2009 |   |   | 107,322,600 |   |   |   | 10,732 |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,732 |   |
| Shares issued to Robert Kerchner                         | 10/12/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,000 |   |
| Shares issued to Mike Elliott                            | 10/12/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,000 |   |

----

| Camelot Entertainment Group, Inc.                        |
|----------------------------------------------------------|
| (a Development Stage Company)                            |
| STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)  |
| For the Period from January 1, 2004 to December 31, 2009 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |   | Common Stock |   |   | Preferred Stock |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   | Total |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   | Stockholders' |   |
|                                                     |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   | Deficit |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Rodger Spainhower                       | 11/9/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 7,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,000 |   |
| Shares issued to Phil Scott                              | 11/9/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 7,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,000 |   |
| Shares issued to Adam Reznikoff                          | 11/16/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,000 |   |
| Shares issued to Adam Reznikoff                          | 11/25/2009 |   |   | 80,000,000 |   |   |   | 8,000 |   |   |   | - |   |   |   | - |   |   |   | 40,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,000 |   |
| Shares issued to Ted Baer                                | 11/30/2009 |   |   | 95,000,000 |   |   |   | 9,500 |   |   |   | - |   |   |   | - |   |   |   | 38,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 47,500 |   |
| Shares issued to Mark Temple                             | 12/3/2009 |   |   | 60,000,000 |   |   |   | 6,000 |   |   |   | - |   |   |   | - |   |   |   | 18,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24,000 |   |
| Shares issued to Robert Atwell                           | 12/4/2009 |   |   | 200,000,000 |   |   |   | 20,000 |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 80,000 |   |
| Shares issued to George Jackson                          | 12/4/2009 |   |   | 200,000,000 |   |   |   | 20,000 |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 80,000 |   |
| Shares issued to Patrick Winn                            | 12/9/2009 |   |   | 10,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,000 |   |
| Shares issued to Adam Reznikoff                          | 12/14/2009 |   |   | 125,000,000 |   |   |   | 12,500 |   |   |   | - |   |   |   | - |   |   |   | 25,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 37,500 |   |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) as of 12/31/09                         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,259,802 | ) |   |   | - |   |   |   | - |   |   |   | (4,259,802 | ) |
|                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of 12/31/2009                                 |   |   |   | 2,961,330,703 |   |   | $ | 296,133 |   |   |   | - |   |   |  $ | - |   |   |  $ | 18,272,050 |   |   |  $ | (20,964,823 | ) |   |  $ | - |   |   |  $ | - |   |   |  $ | 2,396,640 |   |

----

| Camelot Entertainment Group, Inc                                         |   |
|--------------------------------------------------------------------------|--------|
| (A Development Stage Company)                                            |   |
| Statements of Cash Flows                                                 |   |
|                                                                     |   |   |   |   |   |   |   | From |   |
|                                                                     |   |   |   |   |   |   |   | Inception on |   |
|                                                                     |   |   |   |   |  For Year |   |   | April 21, 1999 |   |
|                                                                     |   | For Year Ended, |   |   |  Ended |   |   | through |   |
|                                                                     |   | December 31, |   |   | December 31, |   |   | December 31, |   |
|                                                                     |   | 2009 |   |   | 2008 |   |   | 2009 |   |
|                                                                     |   |   |   |   |   |   |   | (Unaudited) |   |
| OPERATING ACTIVITIES                                                     |   |   |   |   |   |   |   |   |   |
| Net loss                                                                 |   | $ | (4,259,802 | ) |   | $ | (428,575 | ) |   | $ | (20,964,823 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net loss to cash used in operating activities:  |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of discounts on notes payable                               |   |   | 552,163 |   |   |   | 344,987 |   |   |   | 1,193,374 |   |
| Imputed Interest on Note Payable                                         |   |   | - |   |   |   | 17,000 |   |   |   | 38,484 |   |
| Gain (loss) on derivative liability                                      |   |   | (111,369 | )  |   |   | (1,404,052 | ) |   |   | (1,356,620 | ) |
| Common Stock issued for interest expenses                                |   |   | - |   |   |   | 138,450 |   |   |   | 703,909 |   |
| Common stock issued per dilution agreement                               |   |   | - |   |   |   | - |   |   |   | 368,508 |   |
| Value of options expensed                                                |   |   | - |   |   |   | - |   |   |   | 351,000 |   |
| Gain on extinguishment of debt                                           |   |   | - |   |   |   | - |   |   |   | (255,500 | ) |
| Depreciation                                                             |   |   | - |   |   |   |   - |   |   |   | 3,997 |   |
| Amortization of deferred compensation                                    |   |   | - |   |   |   | - |   |   |   | 1,538,927 |   |
| Common stock issued for services                                         |   |   | 768,409 |   |   |   | 363,138 |   |   |   | 4,322,976 |   |
| Common stock issued for related party services and wraparound agreements |   |   | 1,759,489 |   |   |   |   - |   |   |   | 1,781,489 |   |
| Common stock issued for technology                                       |   |   | - |   |   |   | - |   |   |   | 19,167 |   |
| Impairment of investments in other companies                             |   |   | - |   |   |   | - |   |   |   | 710,868 |   |
| Impairment of assets                                                     |   |   | - |   |   |   | 129,700 |   |   |   | 2,758,060 |   |
| Prepaid services expensed                                                |   |   | - |   |   |   | - |   |   |   | 530,000 |   |
| Expenses paid through notes payable proceeds                             |   |   | - |   |   |   | - |   |   |   | 66,439 |   |
| Loss on disposal of property and equipment                               |   |   | - |   |   |   |   - |   |   |   | 5,854 |   |
| Preferred stock issued to shareholder                                    |   |   | - |   |   |   | - |   |   |   | 3,366,000 |   |
| Change in assets and liabilities:                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| (increase) decrease in other current assets                              |   |   | (51,613) |   |   |   | 4,691 |   |   |   | (53,779 | ) |
| Increase (decrease) in accounts payable and accrued liabilities          |   |   | 322,724 |   |   |   | 173,993 |   |   |   | 880,906 |   |
| Increase (decrease) in due to officers                                   |   |   | 426,255 |   |   |   | 633,300 |   |   |   | 1,409,555 |   |
| Net Cash used in operating activities                                    |   |   | (593,744 | ) |   |   | (27,368 | ) |   |   | (2,581,209 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of fixed assets                                                 |   |   | - |   |   |   | - |   |   |   | (6,689 | ) |
| Purchase of assets-script costs/business deposits                        |   |   | (37,350 | ) |   |   | - |   |   |   | (167,050 | ) |
| Cash used in investing activities                                        |   |   | (37,350 | ) |   |   | - |   |   |   | (173,739 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from Convertible notes payable                                  |   |   | 500,000 |   |   |   | - |   |   |   | 500,000 |   |
| Contributed capital                                                      |   |   | - |   |   |   | - |   |   |   | 25,500 |   |
| Proceeds from related party note payable                                 |   |   | - |   |   |   | - |   |   |   | 1,316,613 |   |
| Payments on related party notes payable                                  |   |   | - |   |   |   | (20,652 | ) |   |   | (145,652 | ) |
| Proceeds from notes payable                                              |   |   | - |   |   |   | 150,000 |   |   |   | 1,317,998 |   |
| Advances to affiliate / shareholders loans                               |   |   | 735,457 |   |   |   | 40,737 |   |   |   | 1,011,319 |   |
| Payments from shareholder advances                                       |   |   | (548,218 | ) |   |   | (142,664 | ) |   |   | (961,173 | ) |
| Payable on notes payable                                                 |   |   | - |   |   |   | - |   |   |   | (254,477 | ) |
| Cash provided by financing activities                                    |   |   | 687,239 |   |   |   | 27,421 |   |   |   | 2,810,128 |   |
|                                                                     |   |   | - |   |   |   |   |   |   |   |   |   |
| Increase in cash                                                         |   |   | 56,145 |   |   |   | 53 |   |   |   | 55,180 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at beginning of period                                              |   |   | 175 |   |   |   | 122 |   |   |   | 1,140 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at the end of the period                                            |   | $ | 56,320 |   |   | $ | 175 |   |   | $ | 56,320 |   |

----

|                                                      |   |   |      |   |   |   |    |   |   |   |      |   |
|-----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|-----------|--------|
| Non-cash investing and financing transactions:            |   |   |      |   |   |   |    |   |   |   |      |   |
| Stock issued for related party liabilities                |   | $      | -         |   |   | $      | -       |   |   | $      | 248,541   |   |
| Creation of additional debt discount                      |   | $      | 455,342   |   |   | $      | -       |   |   | $      | 1,375,657 |   |
| Stock issued for debt conversion                          |   | $      | 1,563,069 |   |   | $      | 101,560 |   |   | $      | 1,721,077 |   |
| Derivative liability relieved by conversion               |   | $      | 122,607   |   |   | $      | 19,722  |   |   | $      | 190,728   |   |
| Accrued interest converted into convertible notes payable |   | $      | -         |   |   | $      | 144,143 |   |   | $      | 144,143   |   |
| Accrued salaries relieved with issuance of common stock   |   | $      | 223,000   |   |   | $      | 261,300 |   |   | $      | 484,300   |   |
| Stock issued per finance agreement                        |   | $      | -         |   |   | $      | -       |   |   | $      | 500,000   |   |

----

|   | · | Camelot Film Group, consisting principally of feature film, television, home video, and digital media production and distribution, including Camelot Distribution Group and DarKnight Pictures; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Camelot Studio Group, consisting principally of site acquisition, design, development and operation of Camelot Studio locations domestically and internationally; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Camelot Production Services Group, consisting principally of consulting, education, finance, production support and technology services. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                      |   | December 31, 2009 |                  |   | December 31, 2008 |
|-------------------------------------------------------------------------------------------|--------|-------------------|-----------------------|--------|-------------------|
|                                                                                      |   |              |                  |   |              |
|  Weighted average common shares outstanding                                          |   |              |                  |   |              |
|  Used in calculating basic loss per share                                       |   |              |   626,419,838    |   |              |   | 126,591 |
|  Effect of dilutive convertible preferred stock, convertible notes and warrants |   |              |   19,273,580,162 |   |              |   | 2,949,873,409 |
|                                                                                      |   |              |                  |   |              |   |   |
|  Weighted average common shares outstanding used in                                  |   |              |                  |   |              |   |   |
|  Calculating diluted loss per share                                   |   |              | 19,900,000,000        |   |              |   | 2,950,000,000 |

----

----

----

----

----

----

----

----

| Common Stock for Related Party Services |       |   |
|-----------------------------------------|------------|--------|
|                                    |       |   |   |   |   |   |   |   |
|                                    |       |   |   |   |   |   |   |   |
| Services                                | Issue Date |   | Issue Price |   |   | Shares |   | Issued Amount |
|                                    |       |   |   |   |   |   |   |   |
| Robert Atwell                           | 9/25/2009  |   |   | 0.0009 |   |   |   | 50,000,000 |   | 45,000 |
| George Jackson                          | 9/25/2009  |   |   | 0.0009 |   |   |   | 20,000,000 |   | 18,000 |
| Robert Atwell                           | 12/4/2009  |   |   | 0.0004 |   |   |   | 200,000,000 |   | 80,000 |
| George Jackson                          | 12/4/2009  |   |   | 0.0004 |   |   |   | 200,000,000 |   | 80,000 |
|                                    |       |   |   |   |   |   |   |   |   |   |
| Totals                                  |       |   |   |   |   |   |   | 470,000,000 |   | 223,000 |

----

----

|         |       |                                                                            |                                                                                                          |                      |  Amount                                                                                                 |                                                                                              |                                                                                                         |
|--------------|------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------|--------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| Debt Wrap    | Issue Date |  Issued Price                                                              |  Shares                                                                                                  |  Bid Close           |  Paid                                                                                                   |  Issued amt                                                                                  |  Int exp                                                                                                |
|         |       |                                                                            |                                                                                                          |                      |                                                                                                         |                                                                                              |                                                                                                         |
| Hope Capital | 1/6/2009   |  $           0.0385 |                  142,857 |  $  0.1400 |  $                5,500 |  $              29,955 |  $              24,455            |
| Watson       | 1/6/2009   |  $           0.0350 |                  428,571 |  $  0.1400 |  $              15,000            |  $              60,000 |  $              45,000            |
| Watson       | 1/15/2009  |  $           0.0315 |                  157,143 |  $  0.1400 |  $                5,000 |  $              22,000 |  $              17,000            |
| TJM          | 1/28/2009  |  $           0.0385 |                  649,351 |  $  0.0700 |  $              23,300            |  $              45,455 |  $              22,155            |
| Acacia       | 2/11/2009  |  $           0.0350 |                  142,857 |  $  0.0700 |  $                5,000 |  $              10,000 |  $                5,000 |
| Hope Capital | 2/23/2009  |  $           0.0490 |                  364,286 |  $  0.1400 |  $              18,000            |  $              51,000 |  $              33,000            |
| TJM          | 2/23/2009  |  $           0.0385 |                  649,351 |  $  0.1400 |  $              23,300            |  $              90,909 |  $              67,609            |
| Primary      | 2/24/2009  |  $           0.0350 |                  142,857 |  $  0.1400 |  $                5,000 |  $              20,000 |  $              15,000            |
| Hope Capital | 2/26/2009  |  $           0.0350 |                  428,571 |  $  0.1400 |  $              15,000            |  $              60,000 |  $              45,000            |
| TJM          | 2/26/2009  |  $           0.0385 |                  649,351 |  $  0.1400 |  $              23,300            |  $              90,909 |  $              67,609            |
| Watson       | 2/26/2009  |  $           0.0315 |                  157,143 |  $  0.1400 |  $                5,000 |  $              22,000 |  $              17,000            |
| Primary      | 3/11/2009  |  $           0.0350 |                  142,857 |  $  0.0700 |  $                5,000 |  $              10,000 |  $                5,000 |
| TJM          | 3/16/2009  |  $           0.0385 |                  649,351 |  $  0.0700 |  $              23,300            |  $              45,455 |  $              22,155            |
| Watson       | 3/24/2009  |  $           0.0350 |                  357,143 |  $  0.0700 |  $              12,500            |  $              25,000 |  $              12,500            |
| Hope Capital | 3/27/2009  |  $           0.0350 |                  428,571 |  $  0.0700 |  $              15,000            |  $              60,000 |  $              45,000            |
| Watson       | 3/27/2009  |  $           0.0350 |                  285,714 |  $  0.0700 |  $              10,000            |  $              20,000 |  $              10,000            |
| Watson       | 3/31/2009  |  $           0.0350 |                  214,286 |  $  0.0700 |  $                7,500 |  $              15,000 |  $                7,500 |
| TJM          | 4/2/2009   |  $           0.0385 |                  649,351 |  $  0.0700 |  $              23,300            |  $              45,455 |  $              22,155            |
| Watson       | 3/19/2009  |  $         0.03500            |                  285,714 |  $  0.0700 |  $              10,000            |  $              20,000 |  $              10,000            |
| TJM          | 3/24/2009  |  $         0.03850            |                  649,351 |  $  0.0700 |  $              23,300            |  $              45,455 |  $              22,155            |
| Hope         | 3/2/2009   |  $         0.03500            |                  428,571 |  $  0.0700 |  $                6,666 |  $              10,985 |  $                2,191 |
| TJM          | 5/6/2009   |  $           0.0385 |                  649,351 |  $  0.0700 |  $              23,300            |  $              45,455 |  $              22,155            |
| Acacia       | 7/14/2009  |  $           0.0043 |               7,500,000                 |  $  0.0111 |  $              41,625            |  $              83,250 |  $              41,625            |
| Watson       | 7/15/2009  |  $           0.0042 |               1,200,000                 |  $  0.0150 |  $                5,040 |  $              18,000 |  $              12,960            |
| TJM          | 7/20/2009  |  $           0.0020 |            11,250,000                                  |  $  0.0120 |  $              22,500            |  $            135,000            |  $            112,500                       |
| Watson       | 7/23/2009  |  $           0.0040 |               1,250,000                 |  $  0.0130 |  $                5,000 |  $              16,250 |  $              11,250            |
| TJM          | 7/28/2009  |  $           0.0020 |            11,250,000                                  |  $  0.0130 |  $              22,500            |  $            146,500            |  $            124,000                       |
| Watson       | 7/28/2009  |  $           0.0030 |               1,666,667                 |  $  0.0130 |  $                5,000 |  $              21,667 |  $              16,667            |
| K&L      | 8/3/2009   |  $           0.0025 |               8,000,000                 |  $  0.0047 |  $              20,000            |  $              37,600 |  $              17,600            |
| Watson       | 8/4/2009   |  $           0.0020 |               5,000,000                 |  $  0.0045 |  $              10,000            |  $              22,500 |  $              12,500            |
| Acacia       | 8/7/2009   |  $           0.0011 |               8,500,000                 |  $  0.0035 |  $              14,450            |  $              29,750 |  $              15,300            |
| TJM          | 8/7/2009   |  $           0.0013 |            16,000,000                                  |  $  0.0035 |  $              20,000            |  $              56,000 |  $              36,000            |
| Watson       | 8/10/2009  |  $           0.0015 |               6,666,667                 |  $  0.0022 |  $              10,000            |  $              14,667 |  $                4,667 |
| Acacia       | 8/13/2009  |  $           0.0027 |               8,500,000                 |  $  0.0078 |  $              29,750            |  $              66,300 |  $              36,550            |
| TJM          | 8/13/2009  |  $           0.0013 |            16,000,000                                  |  $  0.0078 |  $              20,000            |  $            124,000            |  $            104,000                       |
| Watson       | 8/14/2009  |  $           0.0020 |               5,000,000                 |  $  0.0089 |  $              10,000            |  $              44,500 |  $              34,500            |
| K&L      | 8/18/2009  |  $           0.0015 |            13,000,000                                  |  $  0.0039 |  $              19,500            |  $              50,700 |  $              31,200            |
| TJM          | 8/18/2009  |  $           0.0015 |            16,666,666                                  |  $  0.0039 |  $              25,000            |  $              65,000 |  $              40,000            |
| Acacia       | 8/19/2009  |  $           0.0014 |            10,000,000                                  |  $  0.0034 |  $              23,000            |  $              34,000 |  $              11,000            |
| Watson       | 8/20/2009  |  $           0.0015 |               6,444,447                 |  $  0.0038 |  $                9,667 |  $              24,489 |  $              14,822            |
| Watson       | 8/20/2009  |  $           0.0015 |               3,555,553                 |  $  0.0038 |  $                5,333 |  $              13,511 |  $                8,178 |
| TJM          | 8/25/2009  |  $           0.0015 |            16,666,666                                  |  $  0.0026 |  $              25,000            |  $              43,333 |  $              18,333            |
| K&L      | 8/28/2009  |  $           0.0010 |            20,000,000                                  |  $  0.0021 |  $              25,000            |  $              50,000 |  $              25,000            |
| TJM          | 8/31/2009  |  $           0.0011 |            22,727,272                                  |  $  0.0022 |  $              25,000            |  $              50,000 |  $              25,000            |
| Watson       | 9/1/2009   |  $           0.0008 |            50,000,000                                  |  $  0.0019 |  $              37,500            |  $              95,000 |  $              57,500            |
| K&L      | 9/2/2009   |  $           0.0008 |            25,000,000                                  |  $  0.0017 |  $              20,000            |  $              42,500 |  $              22,500            |
| K&L      | 9/8/2009   |  $           0.0007 |            28,571,429                                  |  $  0.0016 |  $              25,000            |  $              50,000 |  $              25,000            |
| TJM          | 9/8/2009   |  $           0.0008 |            31,250,000                                  |  $  0.0016 |  $              25,000            |  $              50,000 |  $              25,000            |
| TJM          | 9/10/2009  |  $           0.0010 |            25,000,000                                  |  $  0.0017 |  $              25,000            |  $              42,500 |  $              17,500            |
| Mazuma       | 9/11/2009  |  $           0.0008 |            60,000,000                                  |  $  0.0016 |  $              45,000            |  $              96,000 |  $              51,000            |
| TJM          | 9/14/2009  |  $           0.0010 |            50,000,000                                  |  $  0.0018 |  $              50,000            |  $              90,000 |  $              40,000            |
| TJM          | 9/21/2009  |  $           0.0010 |            50,000,000                                  |  $  0.0015 |  $              50,000            |  $              75,000 |  $              25,000            |
| Epic         | 9/24/2009  |  $           0.0006 |            54,500,000                                  |  $  0.0011 |  $              29,975            |  $              59,500 |  $              29,525            |
| TJM          | 9/29/2009  |  $           0.0006 |            72,727,272                                  |  $  0.0010 |  $              40,000            |  $              65,455 |  $              25,455            |
| TJM          | 10/5/2009  |  $           0.0003 |          121,212,121                                             |  $  0.0008 |  $              40,000            |  $              96,970 |  $              56,970            |
|         |       |                                                                            |                                                                                                          |                      |                                                                                                         |                                                                                              |                                                                                                         |
| 2009 Totals  |       |                                                                            |          793,757,358                                             |                      |  $        1,084,106                                             |  $        2,752,847                                  |  $        1,668,741                                             |

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| Services                   | Issue Date |  Issued Price                          |  Shares                                                             |  Issued amt                           | Type                    |
|----------------------------|------------|---------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------|-------------------------|
|                       |       |                                        |                                                                     |                                       |                    |
| Phillip Parsons            | 1/23/2009  |  $     0.0700 |            71,429 |  $     5,000 | Business Services       |   |
| Phil Scott                 | 3/27/2009  |  $     0.0700 |            71,429 |  $     5,000 | Valuation Services      |   |
| Phil Scott                 | 4/6/2009   |  $     0.0700 |            71,429 |  $     5,000 | Valuation Services      |   |
| New Media Advisors         | 4/6/2009   |  $     0.0700 |            71,429 |  $     5,000 | Business Consulting     |   |
| Phil Scott                 | 5/9/2009   |  $     0.0700 |            71,429 |  $     5,000 | Valuation Services      |   |
| H K Dyal                   | 6/4/2009   |  $     0.0700 |            57,143 |  $     4,000 | Production Consulting   |   |
| Rodger Spainhower          | 6/17/2009  |  $     0.0700 |            71,429 |  $     5,000 | Edgar Services          |   |
| Phil Scott                 | 6/17/2009  |  $     0.0700 |            71,429 |  $     5,000 | Valuation Services      |   |
| Falcon Financial           | 7/12/2009  |  $     0.0015 |       1,050,000                            |  $     1,575 | Business Consulting     |   |
| Rodger Spainhower          | 7/15/2009  |  $     0.0150 |          500,000            |  $     7,500 | Edgar Services          |   |
| Phillip Parsons            | 7/16/2009  |  $     0.0150 |       1,000,000                            | $   15,000                  | Business Services       |   |
| Complete Advisory Partners | 8/12/2009  |  $     0.0015 |       7,000,000                            | $   10,500                  | Business Consulting     |   |
| Mark Petroff               | 8/19/2009  |  $     0.0034 |     10,000,000                                       | $   34,000                  | Business Consulting     |   |
| Jamie Thompson             | 9/1/2009   |  $     0.0019 |     25,000,000                                       | $   47,500                  | Distribution Services   |   |
| Ted Baer                   | 9/11/2009  |  $     0.0016 |     10,000,000                                       | $   16,000                  | Legal Services          |   |
| Bastien Living Trust       | 9/11/2009  |  $     0.0016 |     10,000,000                                       | $   16,000                  | Studio Services         |   |
| Rodger Spainhower          | 9/11/2009  |  $     0.0016 |     10,000,000                                       | $   16,000                  | Edgar Services          |   |
| HAL Nominees Ltd           | 9/14/2009  |  $     0.0018 |     30,000,000                                       | $   54,000                  | Legal Services          |   |
| H K Dyal                   | 9/25/2009  |  $     0.0009 |     20,000,000                                       |  $   18,000            | Production Consulting   |   |
| Patrick Winn               | 9/25/2009  |  $     0.0009 |     10,000,000                                       | $     ,000        | Administrative Services |   |
| Phil Scott                 | 9/28/2009  |  $     0.0009 |     10,000,000                                       | $     ,000        | Valuation Services      |   |
| H K Dyal                   | 9/29/2009  |  $     0.0011 |         9,543                    | $      10    | Production Consulting   |   |
| Mark Petroff               | 9/29/2009  |  $     0.0011 |     10,000,000                                       | $   11,000                  | Business Consulting     |   |
| Robert Kerchner            | 10/12/2009 |  $     0.0007 |     10,000,000                                       | $    7,000             | Production Consulting   |   |
| Mike Elliott               | 10/12/2009 |  $     0.0007 |     10,000,000                                       | $    7,000             | Production Consulting   |   |
| Rodger Spainhower          | 11/9/2009  |  $     0.0008 |     10,000,000                                       | $    8,000             | Edgar Services          |   |
| Phil Scott                 | 11/9/2009  |  $     0.0008 |     10,000,000                                       |  $    8,000       | Valuation Services      |   |
| Adam Reznikoff             | 11/16/2009 |  $     0.0007 |     10,000,000                                       | $    7,000             | Administrative Services |   |
| Adam Reznikoff             | 11/25/2009 |  $     0.0006 |     80,000,000                                       | $   48,000                  | Administrative Services |   |
| Ted Baer                   | 11/30/2009 |  $     0.0005 |     95,000,000                                       | $   47,500                  | Legal Services          |   |
| Mark Temple                | 12/3/2009  |  $     0.0004 |     60,000,000                                       | $   24,000                  | Legal Services          |   |
| Patrick Winn               | 12/9/2009  |  $     0.0004 |     10,000,000                                       | $    4,000             | Administrative Services |   |
| Adam Reznikoff             | 12/14/2009 |  $     0.0003 |   125,000,000                                                  | $   37,500                  | Administrative Services |   |
|                       |       |                                        |                                                                     |                                       |                    |   |
| Total Service Issuances    |       |                                        |   575,116,689                                                  |  $ 502,086                            |                    |   |

----

----

----

----

|                    |   |   |                          |   |
|-------------------------|--------|--------|-------------------------------|--------|
| /s/Robert P. Atwell     |   |   | /s/ George Jackson            |   |
| Robert P. Atwell        |   |   | George Jackson                |   |
| Chief Executive Officer |   |   | Chief Financial Officer  |   |

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