----

----

|  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 areacode   |

----

----

----

----

|  ITEM |                                                                                                        | Page   |
|------------|-------------------------------------------------------------------------------------------------------------|--------|
|       |                                                                                                        |   |
|       |  PART      I                                                                                           | 1      |
|       |                                                                                                        |   |
|  1.   |  Description      of Business                                                                          | 1      |
|  2.   |  Description      of Properties                                                                        | 32     |
|  3.   |  Legal      Proceedings                                                                           | 32     |
|  4.   |  Submission      of Matters to a Vote of Security Holders                                              | 32     |
|       |                                                                                                        |   |
|       |  PART      II                                                                                          | 32     |
|       |                                                                                                        |   |
|  5.   |  Market      for Common Equity and Related Stockholder Matters                                    | 32     |
|  6.   |  Management's      Discussion and Analysis                                                             | 40     |
|  7.   |  Financial      Statements                                                                        | 54     |
|  8.   |  Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosures  | 54     |
|  8A.  |  Controls      and Procedures                                                                     | 54     |
|       |                                                                                                        |   |
|       |  PART      III                                                                                         | 55     |
|       |                                                                                                        |   |
|  9.   |  Directors,      Executive Officers, Promoters and Control Persons                                     | 55     |
|  10.  |  Executive      Compensation                                                                           | 56     |
|  11.  |  Security      Ownership of Certain Beneficial Owners and Management                                   | 58     |
|  12.  |  Certain      Relationships and Related Transactions                                              | 62     |
|  13.  |  Exhibits      and Reports on Form 8-K                                                            | 63     |
|  14.  |  Principal      Accountant Fees and Services                                                           | 66     |
|  F-1  |  Financial      Statements with Footnotes                                                              | F-1    |
|  S-1  |  Signatures                                                                                       | S-1    |

----

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

|   | · | 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 and Media 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 (formerly Camelot Digital  Media) |

|   | § | Camelot      Distribution Group |
|--------|--------|---------------------------------|

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

|   | § | Camelot      Studios Financial Group |
|--------|--------|--------------------------------------|

----

----

----

----

----

----

----

----

----

| Competitor      Film and Television Companies 2008 |                 |                  |               |                |             |        |            |
|----------------------------------------------------|----------------------|-----------------------|--------------------|---------------------|------------------|-------------|-----------------|
|                                               |                 |                  |               |                |             |        |            |
| Major      Parent                                  | Divisions            |                  |               |                |             |        |            |
|                                               |                 |                  |               |                |             |        |            |
| Universal                                          | Focus                | Rogue                 | NBC                | Telemundo           | USA              | Sci      Fi | Bravo           |
| Sony                                               | Columbia             | MGM                   | UA                 | Sony      Classics  | Screen      Gems | TriStar     | Destination     |
| Paramount                                          | DreamWorks           | Vantage               | P.      Classics   | Nickelodeon         | CBS              | BET         | Comedy      C   |
| Warner                                             | New      Line        | Telepicture           | Castle      Rock   | W.      Independent | Picturehouse     | HBO         | W.      Premier |
| Disney                                             | Buena      Vista     | Touchstone            | Miramax            | Hollywood           | Pixar            | ABC         | Spyglass        |
| Fox                                                | Fox      Searchlight | Faith                 | Atomic             | Fox      TV         | Telecolombia     |        |            |
|                                               |                 |                  |               |                |             |        |            |
| Independents                                       | Divisions            |                  |               |                |             |        |            |
|                                               |                 |                  |               |                |             |        |            |
| Camelot      Ent Gp                                | Camelot      Films   | Camelot      Features | Camelot      Urban | Ferris      Wheel   |             |        |            |
| Weinstein                                          | Dimension            |                  |               |                |             |        |            |
| Nu      Image                                      | Millennium           | First      Look       |               |                |             |        |            |
| Yari      Film Group                               |                 |                  |               |                |             |        |            |
| Lionsgate                                          | Ghost      House     | Mandate               |               |                |             |        |            |
| Newmarket                                          |                 |                  |               |                |             |        |            |
| RKO      Radio Pictures                            | Roseblood            |                  |               |                |             |        |            |
| IFC      Films                                     |                 |                  |               |                |             |        |            |
| Samuel      Goldwyn                                |                 |                  |               |                |             |        |            |
| 2929                                               | Magnolia             | Truly      Indie      | HDNet              | HDNet      Films    | Landmark         |        |            |
| Palm                                               |                 |                  |               |                |             |        |            |
| Tartan      Films                                  |                 |                  |               |                |             |        |            |
| ThinkFilm                                          |                 |                  |               |                |             |        |            |
| Troma      Entertainment                           |                 |                  |               |                |             |        |            |
| Giant      Screen Films                            |                 |                  |               |                |             |        |            |
|                                               |                 |                  |               |                |             |        |            |
| Others                                             |                 |                  |               |                |             |        |            |
|                                               |                 |                  |               |                |             |        |            |
| CBS                                                |                 |                  |               |                |             |        |            |
| Cable      and Satellite                           |                 |                  |               |                |             |        |            |
| Smaller      Independents                          |                 |                  |               |                |             |        |            |

|                                                        |   |                 |             |   |                |   |            |   |
|-------------------------------------------------------------|--------|----------------------|------------------|--------|---------------------|--------|-----------------|--------|
|                                                        |   | 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           |   |

|   | *  | These      patterns may not be applicable to every film, and may change with the      emergence of new technologies. Does not include day and date release      patterns. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | §  | In      2008, the number of moviegoers dropped 2.6% over the previous year, with      1,364,000,000 admissions. In 2007, the number of moviegoers had reached      its highest point in five years, topping 1,400,000,000      admissions. |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | For      the past eight years, each U.S. resident attended an average of at least      5.5 movies per year. In 2007, the average was 6.0, up from 4.4 in 1985. In      2005, the average was 5.4. Admissions per capita reached an all time high      of 6.2 in 2002. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The      average annual admission price for 2008 was $7.18, up 4.4% over the      previous year. |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | § | The      average box office revenue for all new film releases was $16.1 million in      2007, compared to $15.4 million in 2006 and $16.7 million in      2005.  The average box office revenue for major studio film      releases was $45.7 million in 2007, compared to $40.2 million in 2006 and      $39.7 million in 2005. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | §  | The      average budget of a major studio film in 2007 was $70.8 million. In 1983,      the average was $11.9 million. The average marketing budget was $35.9      million in 2007, as compared to $34.5 million in 2006. In 1983, the      average was $5.2 million.  As a comparison, in 2001 the average      budget was $47.7 million. The average marketing budget was $31 million in      2001. |
|--------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | §  | The      total average cost to produce and launch a studio film in 2007 was $106.6      million compared to $100.3 million in 2006. In 1983, the total average      cost to produce and launch a studio film was $17.1 million.  As      a comparison, the average total cost was $78.7 million in      2001. |
|--------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | §  | Between      1993 and 1999, the average budget of a studio film increased 97.7%, from      $29.9 million in 1993 to $51.5 million in 1999.           |
|--------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |  §Between 2001 and      2007, the average budget of a studio film increased 48.4% from $47.7      million in 2001 to $70.8 million in2007. |

|   | § | The      average budget of a major studio subsidiary/classic or      specialty/independent type film (i.e. Fox Searchlight, New Line, Fine      Line, Miramax, Sony Pictures Classics, and Lionsgate etc.) in 2007 was      $49.2 million. The average marketing cost was $25.7 million. The combined      negative and marketing costs was $74.8 million., contributing to a 54%      increase in combined negative and marketing costs when compared to 2006,      when the combined costs was $48.5 million. The average cost in 2003 was      $46.9 million, a 154.9% increase over the 1999 average of $18.4 million      and a 37.7% increase over 2002’s average of $34 million. The average      marketing budget was $15.2 million in 2005.The average marketing budget      was $11.4 million in 2004. The average marketing budget was $14.7 million      in 2003. In 1999, the average was $6.5million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The      total average cost to produce and launch a major studio subsidiary or      specialty/independent type film in 2007 was $74.8 million, the highest      ever. In 1999, the total average cost to produce and launch a major studio      subsidiary or specialty/independent type film was $24.9      million. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Between      1986 and 2007, there was a 75.2% increase in the total number of screens.      There was a 95.2% increase in the number of indoor screens and a 74.3%      decrease in the number of drive-inscreens. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Between      2006 and 2007 the total number of theaters in the U.S. decreased by 1.2%.      Between 2000 and 2004, the total number of theaters in the U.S. decreased      by 2.1%. Between 1994 and 2004 the total number of theaters in the U.S.      increased by 38%. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In      2007, there were 6,277 total theaters in the U.S. 1,748 of the theaters      had single screens. 2,296 theaters had 2 to 7 screens. 1,617 theaters had      8 to 15 screens and 616 theaters had more than 16 screens, a 4.2% increase      in megaplexes screens. In 2006, there were 6,356 total theaters in the      U.S. 1,742 of the theaters had single screens. 2,362 theaters had 2 to 7      screens. 1,661 theaters had 8 to 15 screens and 591 theaters had more than      16 screens. In 2004, there were 6,012 total theaters in the U.S. 5,620      were indoor theaters, 392 were drive-in theaters. In 1980, there were      17,590 total theaters, with 14,029 indoor and 3,561 drive-in      theaters. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | § | In      2007, approximately 36% of the screens were miniplexes (2 to 7 screens),      28% were single screen, 26% were multiplexes (8 to 15 screens) and 10%      were megaplexes (16 or more screens). In 2006, approximately 37% of the      screens were miniplexes (2 to 7 screens), 27% were single screen, 27% were      multiplexes (8 to 15 screens) and 9% were megaplexes (16 or more      screens). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In      2007, preliminary estimates show a total of 357,300 employees in the U.S.      motion picture industry and associated fields. Of that number, 192,800 are      involved in production and services, with 136,200 in the theater and      video/DVD rental sector and 28,300 employed in related fields. In 2006,      there were a a total of 354,400 employees in the U.S. motion picture      industry and associated fields. Of that number, 192,200 were involved in      production and services, with 133,700 in the theater and video/DVD rental      sector and 28,500 employed in relatedfields. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In      2007, the number of cable and satellite television stations eclipsed 400.      Between 1990 and 2004, the number of cable and satellite television      channels increased 372% from 60 cable channels in 1990 to 324 cable and      satellite channels in 2004. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Total      rental and sell-through of motion picture video DVDs to dealers in the      United States decreased from 1,309.2 billion units in 2007 to 1,255.8      billion in 2006, a decrease of 4.1%, reflecting the stagnant growth in DVD      use by consumers, due in part to format confusion between Blue-Ray and HD      DVD formats. Previously, this sector had been robust. Since 2002, this      sector has seen an increase of 113.9% in DVD sales to dealers. Total      rental and sell-through of motion picture video DVDs to dealers in the      United States increased from 1,292.9 billion units in 2005 to 1,324.7      billion in 2006, an increase of 2.5%, reflecting at the time the continued      growth in DVD use by consumers. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Total      sales of motion picture video cassettes to dealers in the United States      decreased from 7.4 million in 2006 to 300,000 in 2007, a 95.4% decrease.      Total sales had previously decreased from 48.7 million in 2005 to 7.4      million in 2006, a 84.8% decrease. This followed a 61.2% decrease between      2005 and 2004. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | There      are currently over 84,000 titles available on DVD, a 19% increase over      2006. In 2006, there were 68,000 titles available on DVD, a 51% increase      over 2005. In 1999, there were 5,000.                                                                          |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | § | There      were 12,050 new titles available on DVD during 2007, a 11.4% decrease from      2006, when there were 13,604 new titles available. This is the second      consecutive year that the number of new titles has decreased. In 2005,      there were 13,922 new titlesavailable. |

|   | § | In      2007, 21,200,000 DVD players were purchased by retailers, a 7.4% increase      over 2006, when 19,800,000 were purchased.  In 2006, 19,800,000      DVD players were purchased by retailers, a 23% increase over 2005, when      16,100,000 were purchased. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In      2007, 33,500,000 DVD players were sold to U.S. consumers, a decrease of      1.19% from 2003, when 33,900,000 were sold. In 2006, 33,900,000 DVD      players were sold to U.S. consumers, a decrease of 1.45% from 2003, when      34,400,000 were sold. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The      average price of a DVD title in 2007 was $22.11. The average price of a      DVD title in 2006 was $22.29. In 2003 the average was $20.15. In 1999 the      average was $25.53.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | § | The      average price of a DVD player in 2007 was $72. The average price of a DVD      player in 2006 was $100. In 2002 the average was  $136.                                                |

|   | § | Factory      sales of digital TV sets and displays continue to rise, with 27.1 million      units sold in 2007, compared to 4.1 million units sold in 2002. The      average unit has dropped in price from $1,540 in 2002 to $954 in 2007.      Total sales in 2007 reached $25.866 billion. In 2003, total sales were      $8.692 billion. 23.9 million units were sold in 2006. The average unit      price was $989 in 2006. Total sales in 2006 reached $23.661      billion. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In      the U.S., of the 114.9 million homes accounted for in 2007, 112.8 million,      or 98.2%, have television. Of the 112.8 million homes that have      television, 98 million, or 86.9%, have DVD players. That represents an      increase of 5% over 2006, and 50.6% increase since 2002. In comparison,      86.9 million homes have internet access, an increase of 3% over 2006. 60.8      million homes have broadband services, an increase of 15% over      2006. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | 34.4      million homes, or 30.5% of the 114.9 million homes with television, have      basic cable. That represents a decrease of 3.9% from 2006. 34.8 million      have pay cable services, a decrease of 2.2% from  2006. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Preliminary      reports show that at the end of 2006, 33.2 million homes subscribed to      digital cable, a 4.7% increase over 2006. 29.6 million homes have      satellite service, a 8% increase over2006. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Video      on Demand (“VOD”), an advanced pay-per-view programming service which      enables viewers to order and watch movies on demand and to pause, rewind      or fast-forward them, according to 2007 preliminary numbers, is available      in 31 million households, or approximately 27.5% of homes with      televisions. That represents a 7.3% increase over  2006. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|   | § | Miramax      Films Corporation, now owned by The Walt Disney Company, which produced      Chicago , The Hours, Gangs of New York,      Scary Movie , the Scream film series,      Shakespeare in Love      and Chocolat      ; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | New      Line Cinema Corporation/Fine Line Features, now owned by AOL/Time Warner,      which produced the Lord      of the Rings series, the Austin Powers films,      The Mask, Teenage Mutant      Ninja Turtles and the Nightmare on Elm Street      series; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | U.S.A      Films (formerly October Films and now owned by Vivendi/Universal), which      produced Traffic,      Secrets & Lies and Breaking the Waves      together with Gramercy Pictures, which produced Dead Man Walking and      Fargo , is part      of U.S.A Films and U.S.A Network; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Lion's      Gate Films, which produced and distributed Narc, Frailty, Monster's Ball      and American      Psycho ; and its subsidiary, Artisan Entertainment Inc., which      distributed Boat Trip,      National Lampoon's Van Wilder and The Blair Witch Project      . |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | The      Weinstein Company, founded by the Weinstein brothers, who formerly      controlled and founded Miramax. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

----

----

|   | § | advance      any sums in excess of the budget required to complete and deliver the      film; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | § | complete      and deliver the film itself; or |
|--------|--------|-----------------------------------------------|

|   | § | shut-down      the production and repay the financier all monies spent thus far to      produce the film. |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | § | 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 thepurchaser.                                   |

----

----

----

----

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

|   | § | 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. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                | Closing      Bid |
|-------------------------------------|------------------|
| 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 |
|                                |             |   |
| YEAR      2007                      | High      Bid    | Low      Bid |
| 1st      Quarter Ended March 31     | $0.110           | $0.051 |
| 2nd      Quarter Ended June 30      | $0.100           | $0.015 |
| 3rd      Quarter Ended September 30 | $0.015           | $0.002 |
| 4th      Quarter Ended December 31  | $0.007           | $0.003 |
|                                |             |   |

|   | · | Management’s      decision to devote considerable time and financial resources to the      development of Camelot Studios at ATEP without being able to publicly      announce progress on that project due to contractual restraints;      and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      conversion of notes held by the NIR note holders 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 and the resulting sale of      those shares into the marketplace at extremely low market prices;      and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      lack of any significant news on the Company or any sustained public      relations effort due in part to the inability to release news on the      studio project. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Stockholder                            | Shares      Issued                                                                    | Exemption | Consideration        | Disposition/Price               |
|----------------------------------------|---------------------------------------------------------------------------------------|-----------|----------------------|---------------------------------|
|                                   |                                                                                  |      |                 |                            |
| Robert      P. Atwell                  | 248,818,180                                                                           | 144       | Loans;Services       | Issued/Market                   |
| Hope      Capital, Inc.                | 207,000,000                                                                           | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| Watson      Investment Enterprises     | 200,000,000                                                                           | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| The      Atwell Group                  | 178,000,000                                                                           | 144       | Loans;Services       | Issued/Market                   |
| K&L      International Enterprises | 153,000,000                                                                           | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| Camelot      Escrow                    | 100,000,000                                                                           | 144       | Escrow               | Held      in Reserve            |
| AJW      Offshore LLC                  | 86,665,515                                                                            | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| Phillip      Parsons                   | 83,272,727                                                                            | S8        | Services             | Issued/Market                   |
| Tamara      Atwell                     | 82,272,727                                                                            | S8        | Services             | Issued/Market                   |
| George      Jackson                    | 78,300,000                                                                            | S8        | Services             | Issued/Market                   |
| The      Corporate Solution, Inc.      | 60,000,000                                                                            | S8        | Services             | Issued/Market                   |
| Rodger      Spainhower                 | 52,000,000                                                                            | S8        | Services             | Issued/Market                   |
| Chris      Flannery                    | 51,000,000                                                                            | S8        | Services             | Issued/Market                   |
| Vince      Monaco                      | 51,000,000                                                                            | S8        | Services             | Issued/Market                   |
| Douglas      Warner                    | 22,000,000                                                                            | S8        | Services             | Issued/Market                   |
| Phil      Scott                        | 20,000,000                                                                            | S8        | Services             | Issued/Market                   |
| AJW      Qualified LLC                 | 17,952,480                                                                            | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| AJW      Partners LLC                  | 10,101,849                                                                            | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| Scorpion      Bay LLC                  | 9,221,000                                                                             | 144       | Services             | Issued/Market                   |
| AlphaTrade.com                         | 8,750,000                                                                             | 144       | Debt      Retirement | Issued/Market                   |
| La      Jolla Investment Partners      | 7,000,000                                                                             | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| Tania      Babeshoff                   | 7,000,000                                                                             | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| ATG,      Inc.                         | 7,000,000                                                                             | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| Ongkaruck      Sripetch                | 7,000,000                                                                             | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| Patrick      Winn                      | 6,022,727                                                                             | S8        | Services             | Issued/Market                   |
| Susan      Sanchez                     | 2,272,727                                                                             | S8        | Services             | Issued/Market                   |
| Bastien      Living Trust              | 2,000,000                                                                             | S8        | Services             | Issued/Market                   |
| Lewis      Consulting Group            | 2,000,000                                                                             | S8        | Services             | Issued/Market                   |
| New      Millennium Capital LLC        | 1,393,356                                                                             | 144       | Debt      Retirement | Issued/Market/Discount      (1) |
| Schubert      Flint                    | 1,000,000                                                                             | S8        | Services             | Issued/Market                   |
| Joseph      Petrucelli                 | 1,000,000                                                                             | S8        | Services             | Issued/Market                   |
| Jeffory      Smith                     | 1,000,000                                                                             | S8        | Services             | Issued/Market                   |
| Thomas      Stepp                      |    500,000                                                             | S8        | Services             | Issued/Market                   |
| CEDE                                   |               4 | 42        | Bal.      Adj.       | Issued/Market                   |
|                                   |                                                                                  |      |                 |                            |
| Total                                  | 1,764,543,292                                                                         |      |                 |                            |

| Date      | Title  | Exemption | Amount    | Name                        | Type                 | Consideration | Price  | Note       |
|-----------|--------|-----------|-----------|-----------------------------|----------------------|---------------|--------|------------|
| 2/22/2008 | Common | 144       | 43,500    | AJW      Partners           | Debt      Retirement | Cash          | .0024  | Conversion |
| 2/22/2008 | Common | 144       | 6,000     | New      Millennium         | Debt      Retirement | Cash          | .0024  | Conversion |
| 2/22/2008 | Common | 144       | 299,000   | AJW      Offshore           | Debt      Retirement | Cash          | .0024  | Conversion |
| 2/22/2008 | Common | 144       | 151,500   | AJW      Qualified Partners | Debt      Retirement | Cash          | .0024  | Conversion |
| 2/25/2008 | Common | 144       | 1,000,000 | Schubert      Flint         | Consulting           | Services      | .005   | CSG        |
|      |   |      |      |                        |                 |          |   |       |
| 3/03/2008 | Common | 144       | 43,500    | AJW      Partners           | Debt      Retirement | Cash          | .003   | Conversion |
| 3/03/2008 | Common | 144       | 6,000     | New      Millennium         | Debt      Retirement | Cash          | .003   | Conversion |
| 3/03/2008 | Common | 144       | 299,000   | AJW      Offshore           | Debt      Retirement | Cash          | .003   | Conversion |
| 3/03/2008 | Common | 144       | 151,500   | AJW      Qualified Partners | Debt      Retirement | Cash          | .003   | Conversion |
| 3/06/2008 | Common | 144       | 43,500    | AJW      Partners           | Debt      Retirement | Cash          | .0024  | Conversion |
| 3/06/2008 | Common | 144       | 6,000     | New      Millennium         | Debt      Retirement | Cash          | .0024  | Conversion |
| 3/06/2008 | Common | 144       | 299,000   | AJW      Offshore           | Debt      Retirement | Cash          | .0024  | Conversion |

----

| Date | Title | Exemption | Amount | Name | Type | Consideration | Price | Note |
|------|-------|-----------|--------|------|------|---------------|-------|------|

| 3/06/2008 | Common | 144    | 151,500     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0024  | Conversion |
|-----------|--------|--------|-------------|-----------------------------|----------------------|----------|--------|------------|
| 3/11/2008 | Common | 144    | 43,500      | AJW      Partners           | Debt      Retirement | Cash     | .0021  | Conversion |
| 3/11/2008 | Common | 144    | 6,000       | New      Millennium         | Debt      Retirement | Cash     | .0021  | Conversion |
| 3/11/2008 | Common | 144    | 299,000     | AJW      Offshore           | Debt      Retirement | Cash     | .0021  | Conversion |
| 3/11/2008 | Common | 144    | 151,500     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0021  | Conversion |
| 3/14/2008 | Common | 144    | 43,500      | AJW      Partners           | Debt      Retirement | Cash     | .0016  | Conversion |
| 3/14/2008 | Common | 144    | 6,000       | New      Millennium         | Debt      Retirement | Cash     | .0016  | Conversion |
| 3/14/2008 | Common | 144    | 299,000     | AJW      Offshore           | Debt      Retirement | Cash     | .0016  | Conversion |
| 3/14/2008 | Common | 144    | 151,500     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0016  | Conversion |
| 3/20/2008 | Common | 144    | 43,500      | AJW      Partners           | Debt      Retirement | Cash     | .0013  | Conversion |
| 3/20/2008 | Common | 144    | 6,000       | New      Millennium         | Debt      Retirement | Cash     | .0013  | Conversion |
| 3/20/2008 | Common | 144    | 299,000     | AJW      Offshore           | Debt      Retirement | Cash     | .0013  | Conversion |
| 3/20/2008 | Common | 144    | 151,500     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0013  | Conversion |
| 3/26/2008 | Common | 144    | 43,500      | AJW      Partners           | Debt      Retirement | Cash     | .0012  | Conversion |
| 3/26/2008 | Common | 144    | 6,000       | New      Millennium         | Debt      Retirement | Cash     | .0012  | Conversion |
| 3/26/2008 | Common | 144    | 299,000     | AJW      Offshore           | Debt      Retirement | Cash     | .0012  | Conversion |
| 3/26/2008 | Common | 144    | 151,500     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0012  | Conversion |
| 3/31/2008 | Common | 144    | 174,000     | AJW      Partners           | Debt      Retirement | Cash     | .0012  | Conversion |
| 3/31/2008 | Common | 144    | 24,000      | New      Millennium         | Debt      Retirement | Cash     | .0012  | Conversion |
| 3/31/2008 | Common | 144    | 1,502,000   | AJW      Offshore           | Debt      Retirement | Cash     | .0012  | Conversion |
| 3/31/2008 | Common | 144    | 300,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0012  | Conversion |
|      |   |   |        |                        |                 |     |   |       |
| 4/04/2008 | Common | 144    | 174,000     | AJW      Partners           | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/04/2008 | Common | 144    | 24,000      | New      Millennium         | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/04/2008 | Common | 144    | 1,502,000   | AJW      Offshore           | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/04/2008 | Common | 144    | 300,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/11/2008 | Common | 144    | 174,000     | AJW      Partners           | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/11/2008 | Common | 144    | 24,000      | New      Millennium         | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/11/2008 | Common | 144    | 1,502,000   | AJW      Offshore           | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/11/2008 | Common | 144    | 300,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/16/2008 | Common | 144    | 174,000     | AJW      Partners           | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/16/2008 | Common | 144    | 24,000      | New      Millennium         | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/16/2008 | Common | 144    | 1,502,000   | AJW      Offshore           | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/16/2008 | Common | 144    | 300,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/22/2008 | Common | 144    | 174,000     | AJW      Partners           | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/22/2008 | Common | 144    | 24,000      | New      Millennium         | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/22/2008 | Common | 144    | 1,502,000   | AJW      Offshore           | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/22/2008 | Common | 144    | 300,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | .0012  | Conversion |
| 4/25/2008 | Common | 144    | 174,000     | AJW      Partners           | Debt      Retirement | Cash     | .0013  | Conversion |
| 4/25/2008 | Common | 144    | 24,000      | New      Millennium         | Debt      Retirement | Cash     | 0013   | Conversion |
| 4/25/2008 | Common | 144    | 1,502,000   | AJW      Offshore           | Debt      Retirement | Cash     | 0013   | Conversion |
| 4/25/2008 | Common | 144    | 300,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | 0013   | Conversion |
|      |   |   |        |                        |                 |     |   |       |
| 5/01/2008 | Common | 144    | 174,000     | AJW      Partners           | Debt      Retirement | Cash     | .001   | Conversion |
| 5/01/2008 | Common | 144    | 24,000      | New      Millennium         | Debt      Retirement | Cash     | .001   | Conversion |
| 5/01/2008 | Common | 144    | 1,502,000   | AJW      Offshore           | Debt      Retirement | Cash     | .001   | Conversion |
| 5/01/2008 | Common | 144    | 300,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | .001   | Conversion |
| 5/05/2008 | Common | 144    | 174,000     | AJW      Partners           | Debt      Retirement | Cash     | .001   | Conversion |
| 5/05/2008 | Common | 144    | 24,000      | New      Millennium         | Debt      Retirement | Cash     | .001   | Conversion |
| 5/05/2008 | Common | 144    | 1,502,000   | AJW      Offshore           | Debt      Retirement | Cash     | .001   | Conversion |
| 5/05/2008 | Common | 144    | 300,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | .001   | Conversion |
| 5/09/2008 | Common | 144    | 1,035,300   | AJW      Partners           | Debt      Retirement | Cash     | .001   | Conversion |
| 5/09/2008 | Common | 144    | 142,800     | New      Millennium         | Debt      Retirement | Cash     | .001   | Conversion |
| 5/09/2008 | Common | 144    | 8,936,900   | AJW      Offshore           | Debt      Retirement | Cash     | .001   | Conversion |
| 5/09/2008 | Common | 144    | 1,785,000   | AJW      Qualified Partners | Debt      Retirement | Cash     | .001   | Conversion |
|      |   |   |        |                        |                 |     |   |       |
| 6/10/2008 | Common | 144    | 487,200     | AJW      Partners           | Debt      Retirement | Cash     | .001   | Conversion |
| 6/10/2008 | Common | 144    | 67,200      | New      Millennium         | Debt      Retirement | Cash     | .001   | Conversion |
| 6/10/2008 | Common | 144    | 4,205,600   | AJW      Offshore           | Debt      Retirement | Cash     | .001   | Conversion |
| 6/10/2008 | Common | 144    | 840,000     | AJW      Qualified Partners | Debt      Retirement | Cash     | .001   | Conversion |
|      |   |   |        |                        |                 |     |   |       |
| 8/01/2008 | Common | 144    | 100,000,000 | Camelot                     | Financial            | Escrow   | .001   | Reserve    |
| 8/13/2008 | Common | 144    | 9,221,000   | Scorpion      Bay LLC       | Consulting           | Services | .0005  | CSG        |
| 8/13/2008 | Common | S8     | 20,000,000  | George      Jackson         | Management           | Services | .0005  | CMLT       |

----

| Date | Title | Exemption | Amount | Name | Type | Consideration | Price | Note |
|------|-------|-----------|--------|------|------|---------------|-------|------|

| 8/13/2008 | Common | 144    | 28,000,000 | The      Atwell Group        | Manage/Fiscal         | Cash/Services | .0005  | CMLT         |
|-----------|--------|--------|------------|------------------------------|-----------------------|---------------|--------|--------------|
| 8/13/2008 | Common | S8     | 10,000,000 | The      Corporate Solution  | Consulting            | Services      | .0005  | CMLT         |
| 8/29/2008 | Common | 144    | 10,849     | AJW      Partners            | Debt      Retirement  | Cash          | .01    | Conversion   |
| 8/29/2008 | Common | 144    | 1,496      | New      Millennium          | Debt      Retirement  | Cash          | .01    | Conversion   |
| 8/29/2008 | Common | 144    | 93,650     | AJW      Offshore            | Debt      Retirement  | Cash          | .01    | Conversion   |
| 8/29/2008 | Common | 144    | 18,705     | AJW      Qualified Partners  | Debt      Retirement  | Cash          | .01    | Conversion   |
|      |   |   |       |                         |                  |          |   |         |
| 9/03/2008 | Common | 144    | 10,849     | AJW      Partners            | Debt      Retirement  | Cash          | .009   | Conversion   |
| 9/03/2008 | Common | 144    | 1,496      | New      Millennium          | Debt      Retirement  | Cash          | .009   | Conversion   |
| 9/03/2008 | Common | 144    | 93,650     | AJW      Offshore            | Debt      Retirement  | Cash          | .009   | Conversion   |
| 9/03/2008 | Common | 144    | 18,705     | AJW      Qualified Partners  | Debt      Retirement  | Cash          | .009   | Conversion   |
| 9/05/2008 | Common | S8     | 250,000    | Patrick      Winn            | Administrative        | Services      | .012   | CMLT         |
| 9/08/2008 | Common | 144    | 4          | CEDE                         | Share      Adjustment | Adj           | .00    | Bal      Adj |
| 9/12/2008 | Common | 144    | 10,849     | AJW      Partners            | Debt      Retirement  | Cash          | .002   | Conversion   |
| 9/12/2008 | Common | 144    | 1,496      | New      Millennium          | Debt      Retirement  | Cash          | .002   | Conversion   |
| 9/12/2008 | Common | 144    | 93,650     | AJW      Offshore            | Debt      Retirement  | Cash          | .002   | Conversion   |
| 9/12/2008 | Common | 144    | 18,705     | AJW      Qualified Partners  | Debt      Retirement  | Cash          | .002   | Conversion   |
| 9/12/2008 | Common | 144    | 2,000,000  | K      & L International | Debt      Retirement  | Cash          | .005   | Conversion   |
| 9/16/2008 | Common | 144    | 10,849     | AJW      Partners            | Debt      Retirement  | Cash          | .0025  | Conversion   |
| 9/16/2008 | Common | 144    | 1,496      | New      Millennium          | Debt      Retirement  | Cash          | .0025  | Conversion   |
| 9/16/2008 | Common | 144    | 93,650     | AJW      Offshore            | Debt      Retirement  | Cash          | .0025  | Conversion   |
| 9/16/2008 | Common | 144    | 18,705     | AJW      Qualified Partners  | Debt      Retirement  | Cash          | .0025  | Conversion   |
| 9/16/2008 | Common | 144    | 2,000,000  | Robert      P. Atwell        | Manage/Fiscal         | Cash/Services | .003   | CMLT         |
| 9/16/2008 | Common | S8     | 300,000    | George      Jackson          | Management            | Services      | .003   | CMLT         |
| 9/18/2008 | Common | 144    | 4,785      | AJW      Partners            | Debt      Retirement  | Cash          | .0015  | Conversion   |
| 9/18/2008 | Common | 144    | 660        | New      Millennium          | Debt      Retirement  | Cash          | .0015  | Conversion   |
| 9/18/2008 | Common | 144    | 41,305     | AJW      Offshore            | Debt      Retirement  | Cash          | .0015  | Conversion   |
| 9/18/2008 | Common | 144    | 8,250      | AJW      Qualified Partners  | Debt      Retirement  | Cash          | .0015  | Conversion   |
| 9/18/2008 | Common | S8     | 1,000,000  | George      Jackson          | Management            | Services      | .002   | CMLT         |
| 9/18/2008 | Common | S8     | 250,000    | Patrick      Winn            | Administrative        | Services      | .002   | CMLT         |
| 9/18/2008 | Common | S8     | 250,000    | Patrick      Winn            | Administrative        | Services      | .002   | CMLT         |
| 9/18/2008 | Common | 144    | 1,000,000  | Robert      P. Atwell        | Manage/Fiscal         | Cash/Services | .002   | CMLT         |
| 9/18/2008 | Common | 144    | 1,000,000  | Robert      P. Atwell        | Manage/Fiscal         | Cash/Services | .002   | CMLT         |
| 9/18/2008 | Common | 144    | 1,000,000  | Robert      P. Atwell        | Manage/Fiscal         | Cash/Services | .002   | CMLT         |
| 9/18/2008 | Common | 144    | 1,000,000  | Robert      P. Atwell        | Manage/Fiscal         | Cash/Services | .002   | CMLT         |
| 9/18/2008 | Common | 144    | 1,000,000  | Robert      P. Atwell        | Manage/Fiscal         | Cash/Services | .002   | CMLT         |
| 9/22/2008 | Common | 144    | 6,064      | AJW      Partners            | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/22/2008 | Common | 144    | 836        | New      Millennium          | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/22/2008 | Common | 144    | 52,345     | AJW      Offshore            | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/22/2008 | Common | 144    | 10,455     | AJW      Qualified Partners  | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/24/2008 | Common | 144    | 10,849     | AJW      Partners            | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/24/2008 | Common | 144    | 1,496      | New      Millennium          | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/24/2008 | Common | 144    | 93,650     | AJW      Offshore            | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/24/2008 | Common | 144    | 18,705     | AJW      Qualified Partners  | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/26/2008 | Common | S8     | 1,000,000  | George      Jackson          | Management            | Services      | .002   | CMLT         |
| 9/26/2008 | Common | S8     | 1,000,000  | George      Jackson          | Management            | Services      | .002   | CMLT         |
| 9/26/2008 | Common | 144    | 15,909,090 | Robert      P. Atwell        | Manage/Fiscal         | Cash/Services | .002   | CMLT         |
| 9/26/2008 | Common | 144    | 15,909,090 | Robert      P. Atwell        | Manage/Fiscal         | Cash/Services | .002   | CMLT         |
| 9/26/2008 | Common | S8     | 1,000,000  | Chris      Flannery          | Legal                 | Services      | .002   | CMLT         |
| 9/26/2008 | Common | S8     | 500,000    | Thomas      Stepp            | Legal                 | Services      | .002   | CMLT         |
| 9/26/2008 | Common | S8     | 500,000    | Patrick      Winn            | Administrative        | Cash          | .002   | CMLT         |
| 9/26/2008 | Common | S8     | 1,000,000  | Joe      Petrucelli          | Legal                 | Services      | .002   | CMLT         |
| 9/26/2008 | Common | S8     | 1,000,000  | Vince      Monaco            | Consulting            | Services      | .002   | CMLT         |
| 9/26/2008 | Common | S8     | 1,000,000  | Phil      Parsons            | Consulting            | Services      | .002   | CMLT         |
| 9/26/2008 | Common | 144    | 69,513     | AJW      Partners            | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/26/2008 | Common | 144    | 9,588      | New      Millennium          | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/26/2008 | Common | 144    | 600,049    | AJW      Offshore            | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/26/2008 | Common | 144    | 119,850    | AJW      Qualified Partners  | Debt      Retirement  | Cash          | .001   | Conversion   |
| 9/27/2008 | Common | S8     | 2,272,727  | Phil      Parsons            | Consulting            | Services      | .002   | CMLT         |
| 9/27/2008 | Common | S8     | 2,272,727  | Patrick      Winn            | Administrative        | Services      | .002   | CMLT         |
| 9/27/2008 | Common | S8     | 2,272,727  | Susan      Sanchez           | Administrative        | Services      | .002   | CMLT         |
| 9/27/2008 | Common | S8     | 2,272,727  | Tamara      Atwell           | Administrative        | Services      | .002   | CMLT         |
| 9/27/2008 | Common | S8     | 1,000,000  | Jeffory      Smith           | Consulting            | Services      | .002   | CMLT         |
| 9/27/2008 | Common | S8     | 2,000,000  | Lewis      Consulting Gp     | Consulting            | Services      | .002   | CSG          |

----

| Date | Title | Exemption | Amount | Name | Type | Consideration | Price | Note |
|------|-------|-----------|--------|------|------|---------------|-------|------|

| 9/27/2008  | Common | S8     | 2,000,000  | Bastien      Living Trust   | Consulting           | Services      | .002   | CSG        |
|------------|--------|--------|------------|-----------------------------|----------------------|---------------|--------|------------|
| 9/27/2008  | Common | S8     | 2,000,000  | Doug      Warner            | Consulting           | Services      | .002   | CMLT       |
|       |   |   |       |                        |                 |          |   |       |
| 10/01/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .0011  | Conversion |
| 10/01/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .0011  | Conversion |
| 10/01/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .0011  | Conversion |
| 10/01/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .0011  | Conversion |
| 10/01/2008 | Common | 144    | 7,000,000  | La      Jolla Investment    | Debt      Retirement | Cash/Services | .002   | Conversion |
| 10/01/2008 | Common | 144    | 7,000,000  | Tania      Babeshoff        | Debt      Retirement | Cash/Services | .002   | Conversion |
| 10/01/2008 | Common | 144    | 7,000,000  | ATG,      Inc.              | Debt      Retirement | Cash/Services | .002   | Conversion |
| 10/01/2008 | Common | 144    | 7,000,000  | Ongkaruck      Sripetch     | Debt      Retirement | Cash/Services | .002   | Conversion |
| 10/03/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .001   | Conversion |
| 10/03/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .001   | Conversion |
| 10/03/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .001   | Conversion |
| 10/03/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .001   | Conversion |
| 10/07/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .0007  | Conversion |
| 10/07/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .0007  | Conversion |
| 10/07/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .0007  | Conversion |
| 10/07/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .0007  | Conversion |
| 10/08/2008 | Common | 144    | 35,000,000 | Robert      P. Atwell       | Manage/Fiscal        | Cash/Services | .0004  | CMLT       |
| 10/13/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .0003  | Conversion |
| 10/13/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .0003  | Conversion |
| 10/13/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .0003  | Conversion |
| 10/13/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .0003  | Conversion |
| 10/14/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/14/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/14/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/14/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/14/2008 | Common | S8     | 2,000,000  | Rodger      Spainhower      | Edgar      Fees      | Services      | .0004  | CMLT       |
| 10/16/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/16/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/16/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/16/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/27/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/27/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/27/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/27/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .0001  | Conversion |
| 10/31/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .00009 | Conversion |
| 10/31/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .00009 | Conversion |
| 10/31/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .00009 | Conversion |
| 10/31/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .00009 | Conversion |
|       |   |   |       |                        |                 |          |   |       |
| 11/04/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/04/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/04/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/04/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/06/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/06/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/06/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/06/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/06/2008 | Common | 144    | 8,750,000  | AlphaTrade.com              | Debt      Retirement | Services      | .0017  | Conversion |
| 11/10/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/10/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/10/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/10/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/10/2008 | Common | S8     | 5,000,000  | Phil      Parsons           | Consulting           | Services      | .0016  | CMLT       |
| 11/10/2008 | Common | S8     | 2,500,000  | Patrick      Winn           | Administrative       | Services      | .0016  | CMLT       |
| 11/10/2008 | Common | S8     | 5,000,000  | Tamara      Atwell          | Administrative       | Services      | .0016  | CMLT       |
| 11/11/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/11/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/11/2008 | Common | 144    | 600,049    | AJW      Offshore           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/11/2008 | Common | 144    | 119,850    | AJW      Qualified Partners | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/13/2008 | Common | 144    | 69,513     | AJW      Partners           | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/13/2008 | Common | 144    | 9,588      | New      Millennium         | Debt      Retirement | Cash          | .00009 | Conversion |

----

| Date | Title | Exemption | Amount | Name | Type | Consideration | Price | Note |
|------|-------|-----------|--------|------|------|---------------|-------|------|

| 11/13/2008 | Common | 144    | 600,049     | AJW      Offshore            | Debt      Retirement | Cash          | .00009 | Conversion |
|------------|--------|--------|-------------|------------------------------|----------------------|---------------|--------|------------|
| 11/13/2008 | Common | 144    | 119,850     | AJW      Qualified Partners  | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/13/2008 | Common | 144    | 18,000,000  | Hope      Capital, Inc.      | Debt      Retirement | Cash          | .0008  | Conversion |
| 11/14/2008 | Common | 144    | 117,450     | AJW      Partners            | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/14/2008 | Common | 144    | 16,200      | New      Millennium          | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/14/2008 | Common | 144    | 1,013,850   | AJW      Offshore            | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/14/2008 | Common | 144    | 202,500     | AJW      Qualified Partners  | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/18/2008 | Common | 144    | 117,450     | AJW      Partners            | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/18/2008 | Common | 144    | 16,200      | New      Millennium          | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/18/2008 | Common | 144    | 1,013,850   | AJW      Offshore            | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/18/2008 | Common | 144    | 202,500     | AJW      Qualified Partners  | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/18/2008 | Common | 144    | 20,000,000  | Hope      Capital, Inc.      | Debt      Retirement | Cash          | .0008  | Conversion |
| 11/19/2008 | Common | 144    | 117,450     | AJW      Partners            | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/19/2008 | Common | 144    | 16,200      | New      Millennium          | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/19/2008 | Common | 144    | 1,013,850   | AJW      Offshore            | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/19/2008 | Common | 144    | 202,500     | AJW      Qualified Partners  | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/19/2008 | Common | 144    | 22,000,000  | K      & L International | Debt      Retirement | Cash          | .0002  | Conversion |
| 11/19/2008 | Common | S8     | 5,000,000   | Phil      Scott              | Valuation            | Services      | .0005  | CMLT       |
| 11/20/2008 | Common | 144    | 117,450     | AJW      Partners            | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/20/2008 | Common | 144    | 16,200      | New      Millennium          | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/20/2008 | Common | 144    | 1,013,850   | AJW      Offshore            | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/20/2008 | Common | 144    | 202,500     | AJW      Qualified Partners  | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/21/2008 | Common | 144    | 261,000     | AJW      Partners            | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/21/2008 | Common | 144    | 36,000      | New      Millennium          | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/21/2008 | Common | 144    | 2,253,000   | AJW      Offshore            | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/21/2008 | Common | 144    | 450,000     | AJW      Qualified Partners  | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/21/2008 | Common | S8     | 25,000,000  | Tamara      Atwell           | Administrative       | Services      | .0002  | CMLT       |
| 11/21/2008 | Common | S8     | 25,000,000  | Phil      Parsons            | Consulting           | Services      | .0002  | CMLT       |
| 11/21/2008 | Common | S8     | 25,000,000  | George      Jackson          | Management           | Services      | .0002  | CMLT       |
| 11/21/2008 | Common | 144    | 25,000,000  | Robert      P. Atwell        | Manage/Fiscal        | Cash/Services | .0002  | CMLT       |
| 11/24/2008 | Common | 144    | 261,000     | AJW      Partners            | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/24/2008 | Common | 144    | 36,000      | New      Millennium          | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/24/2008 | Common | 144    | 2,253,000   | AJW      Offshore            | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/24/2008 | Common | 144    | 450,000     | AJW      Qualified Partners  | Debt      Retirement | Cash          | .0001  | Conversion |
| 11/25/2008 | Common | 144    | 34,000,000  | K      & L International | Debt      Retirement | Cash          | .0002  | Conversion |
| 11/25/2008 | Common | 144    | 34,000,000  | Hope      Capital, Inc.      | Debt      Retirement | Cash          | .0002  | Conversion |
| 11/26/2008 | Common | 144    | 380,364     | AJW      Partners            | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/26/2008 | Common | 144    | 52,464      | New      Millennium          | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/26/2008 | Common | 144    | 3,283,372   | AJW      Offshore            | Debt      Retirement | Cash          | .00009 | Conversion |
| 11/26/2008 | Common | 144    | 655,800     | AJW      Qualified Partners  | Debt      Retirement | Cash          | .00009 | Conversion |
|       |   |   |        |                         |                 |          |   |       |
| 12/01/2008 | Common | 144    | 725,667     | AJW      Partners            | Debt      Retirement | Cash          | .0001  | Conversion |
| 12/01/2008 | Common | 144    | 100,092     | New      Millennium          | Debt      Retirement | Cash          | .0001  | Conversion |
| 12/01/2008 | Common | 144    | 6,264,091   | AJW      Offshore            | Debt      Retirement | Cash          | .0001  | Conversion |
| 12/01/2008 | Common | 144    | 1,251,150   | AJW      Qualified Partners  | Debt      Retirement | Cash          | .0001  | Conversion |
| 12/02/2008 | Common | 144    | 40,000,000  | K      & L International | Debt      Retirement | Cash          | .0002  | Conversion |
| 12/02/2008 | Common | S8     | 5,000,000   | Phil      Scott              | Valuation            | Services      | .0002  | CMLT       |
| 12/03/2008 | Common | 144    | 25,000,000  | Hope      Capital, Inc.      | Debt      Retirement | Cash          | .0002  | Conversion |
| 12/08/2008 | Common | 144    | 725,667     | AJW      Partners            | Debt      Retirement | Cash          | .00009 | Conversion |
| 12/08/2008 | Common | 144    | 100,092     | New      Millennium          | Debt      Retirement | Cash          | .00009 | Conversion |
| 12/08/2008 | Common | 144    | 6,264,091   | AJW      Offshore            | Debt      Retirement | Cash          | .00009 | Conversion |
| 12/08/2008 | Common | 144    | 1,251,150   | AJW      Qualified Partners  | Debt      Retirement | Cash          | .00009 | Conversion |
| 12/08/2008 | Common | 144    | 50,000,000  | Hope      Capital, Inc.      | Debt      Retirement | Cash          | .0002  | Conversion |
| 12/08/2008 | Common | 144    | 50,000,000  | K      & L International | Debt      Retirement | Cash          | .0002  | Conversion |
| 12/16/2008 | Common | 144    | 60,000,000  | Hope      Capital, Inc.      | Debt      Retirement | Cash          | .0002  | Conversion |
| 12/17/2008 | Common | 144    | 5,000,000   | K      & L International | Debt      Retirement | Cash          | .0002  | Conversion |
| 12/18/2008 | Common | 144    | 50,000,000  | Watson      Investment       | Debt      Retirement | Cash          | .0001  | Conversion |
| 12/18/2008 | Common | 144    | 50,000,000  | Watson      Investment       | Debt      Retirement | Cash          | .0001  | Conversion |
| 12/23/2008 | Common | 144    | 870,000     | AJW      Partners            | Debt      Retirement | Cash          | .00009 | Conversion |
| 12/23/2008 | Common | 144    | 120,000     | New      Millennium          | Debt      Retirement | Cash          | .00009 | Conversion |
| 12/23/2008 | Common | 144    | 7,510,000   | AJW      Offshore            | Debt      Retirement | Cash          | .00009 | Conversion |
| 12/23/2008 | Common | 144    | 1,500,000   | AJW      Qualified Partners  | Debt      Retirement | Cash          | .00009 | Conversion |
| 12/29/2008 | Common | 144    | 100,000,000 | Watson      Investment       | Debt      Retirement | Cash          | .0001  | Conversion |
| 12/30/2008 | Common | 144    | 2,151,075   | AJW      Partners            | Debt      Retirement | Cash          | .00006 | Conversion |

----

| Date | Title | Exemption | Amount | Name | Type | Consideration | Price | Note |
|------|-------|-----------|--------|------|------|---------------|-------|------|

| 12/30/2008 | Common | 144    | 296,700       | New      Millennium         | Debt      Retirement | Cash          | .00006 | Conversion |
|------------|--------|--------|---------------|-----------------------------|----------------------|---------------|--------|------------|
| 12/30/2008 | Common | 144    | 18,568,475    | AJW      Offshore           | Debt      Retirement | Cash          | .00006 | Conversion |
| 12/30/2008 | Common | 144    | 3,708,750     | AJW      Qualified Partners | Debt      Retirement | Cash          | .00006 | Conversion |
| 12/31/2008 | Common | S8     | 20,000,000    | Doug      Warner            | Consulting           | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 50,000,000    | Rodger      Spainhower      | Edgar      Fees      | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 50,000,000    | Phil      Parsons           | Consulting           | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 50,000,000    | Tamara      Atwell          | Administrative       | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 30,000,000    | George      Jackson         | Management           | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | 144    | 50,000,000    | Robert      P. Atwell       | Manage/Fiscal        | Cash/Services | .0001  | CMLT       |
| 12/31/2008 | Common | 144    | 50,000,000    | Robert      P. Atwell       | Manage/Fiscal        | Cash/Services | .0001  | CMLT       |
| 12/31/2008 | Common | 144    | 50,000,000    | Robert      P. Atwell       | Manage/Fiscal        | Cash/Services | .0001  | CMLT       |
| 12/31/2008 | Common | 144    | 50,000,000    | The      Atwell Group       | Manage/Fiscal        | Cash/Services | .0001  | CMLT       |
| 12/31/2008 | Common | 144    | 50,000,000    | The      Atwell Group       | Manage/Fiscal        | Cash/Services | .0001  | CMLT       |
| 12/31/2008 | Common | 144    | 50,000,000    | The      Atwell Group       | Manage/Fiscal        | Cash/Services | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 50,000,000    | The      Corporate Solution | Manage/Fiscal        | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 5,000,000     | Phil      Scott             | Valuation            | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 5,000,000     | Phil      Scott             | Valuation            | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 50,000,000    | Vince      Monaco           | Consulting           | Services      | .0001  | CMLT       |
| 12/31/2008 | Common | S8     | 50,000,000    | Chris      Flannery         | Legal                | Services      | .0001  | CMLT       |
|       |   |   |          |                        |                 |          |   |       |
| Total      | Common |   | 1,764,543,292 |                        |                 |          |   |       |

| Date     | Title         | Exemption | Amount    | Name                          | Type       | Consideration | Price | Note |
|----------|---------------|-----------|-----------|-------------------------------|------------|---------------|-------|------|
| 8/13/08  | Series      A | 4.2       | 1,000,000 | George      Jackson           | Management | Services      | .0005 | CMLT |
| 8/13/08  | Series      A | 4.2       | 3,000,000 | Robert      Atwell            | Management | Cash/Services | .0005 | CMLT |
| 8/13/08  | Series      B | 4.2       | 1,000,000 | George      Jackson           | Management | Services      | .0005 | CMLT |
| 8/13/08  | Series      C | 4.2       | 750,000   | Scorpion      Bay LLC         | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 3,000,000 | The      Atwell Group         | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 50,000    | Sea      Castle LLC           | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 100,000   | Joseph      Petrucelli        | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 250,000   | Pacific      Surf Partners LP | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 775,000   | OCTY,      Inc.               | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 50,000    | Tim      McCullium            | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 100,000   | George      Jackson           | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 50,000    | Jeff      Brown               | CDG        | Cash          | .0005 | CSG  |
| 8/13/08  | Series      C | 4.2       | 25,000    | Irene      Aurand             | CDG        | Cash          | .0005 | CSG  |
| 9/26/08  | Series      A | 4.2       | 100,000   | George      Jackson           | Management | Services      | .0022 | CMLT |
| 9/26/08  | Series      A | 4.2       | 1,000,000 | Robert      Atwell            | Management | Cash/Services | .0022 | CMLT |
| 9/26/08  | Series      B | 4.2       | 100,000   | George      Jackson           | Management | Services      | .0022 | CMLT |
| 9/26/08  | Series      B | 4.2       | 1,000,000 | Robert      Atwell            | Management | Cash/Services | .0022 | CMLT |
| 9/26/08  | Series      C | 4.2       | 100,000   | George      Jackson           | Management | Services      | .0022 | CMLT |
| 9/26/08  | Series      C | 4.2       | 1,000,000 | Robert      Atwell            | Management | Cash/Services | .0022 | CMLT |
| 12/20/08 | Series      A | 4.2       | 1,000,000 | George      Jackson           | Management | Services      | .0001 | CMLT |
| 12/20/08 | Series      A | 4.2       | 5,000,000 | Robert      Atwell            | Management | Cash/Services | .0001 | CMLT |
| 12/20/08 | Series      B | 4.2       | 1,000,000 | George      Jackson           | Management | Services      | .0001 | CMLT |
| 12/20/08 | Series      B | 4.2       | 5,000,000 | Robert      Atwell            | Management | Cash/Services | .0001 | CMLT |
| 12/20/08 | Series      C | 4.2       | 1,000,000 | George      Jackson           | Management | Services      | .0001 | CMLT |
| 12/20/08 | Series      C | 4.2       | 5,000,000 | Robert      Atwell            | Management | Cash/Services | .0001 | CMLT |

|   |   |   |       |   |   |   |   |   |
|--------|--------|--------|------------|--------|--------|--------|--------|--------|
| Totals |   |   | 31,450,000 |   |   |   |   |   |

----

|   | o | Plan      of Operation.  This section provides a brief description of      Camelot’s plan of operation for fiscal year  2009. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Overview. This section      provides a general description of our corporate structure and what the      management will focus on in 2009. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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      2009. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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      2009. |
|--------|---|----------------------------------------------------------------------------------------------------|

|   | 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,  2008. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Liquidity and Capital      Resources. This section provides an analysis of Camelot’s cash      flows for the two years ended December 31, 2008, as well as a      discussion of the Company’s outstanding debt and commitments that existed      as of December 31, 2008. 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      2008. |
|--------|---|----------------------------------------------------------------------------------------------------|

|   | 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 financialcondition. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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 inapplication. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 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      “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 |
|--------|----|---------|

----

----

----

|   | 1. | At      closing on December 27, 2006 (“Closing”), the Investors purchased Notes      aggregating $600,000 and Warrants to purchase 100,000 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 |
|----------------------------------------------------|----------------|-------------------------|
|                                               | 12/31/2008     | 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:                       | 24,114,380,000 | 24,114,380,000          | 24,114,380,000 | 24,114,380,000 |
| Principal      Balance of Notes:                   | $1,205,719     |                    |   |   |

----

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

----

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

|   | · | Pay      television and internet licensing |
|--------|--------|--------------------------------------------|

|   | · | Broadcast      television, cable and satellitelicensing |
|--------|--------|---------------------------------------------------------|

|   | · | Hotels,      airlines and other non-theatricalexhibitions |
|--------|--------|-----------------------------------------------------------|

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

----

|              |   | Cumulative      During Development |   |   | Year      Ended December 31, |   |   |   |   |
|-------------------|--------|------------------------------------|--------|--------|------------------------------|--------|--------|--------|--------|
|              |   | Stage                              |   |   | 2008                         |   |   | 2007   |   |   | %      Change |   |
|              |   |                               |   |   |                         |   |   |   |   |   |   |   |
| Net      Revenues |   | $                                  | 58,568 |   |                         | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

|                  |   | Cumulative      During Development |   |   | Year      Ended December 31, |   |   |   |   |
|-----------------------|--------|------------------------------------|--------|--------|------------------------------|--------|--------|--------|--------|
|                  |   | Stage                              |   |   | 2008                         |   |   | 2007   |   |   | %      Change |   |
|                  |   |                               |   |   |                         |   |   |   |   |   |   |   |
| Cost      of Services |   | $                                  | 95,700 |   |                         | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

|                                |   | Cumulative      During Development |   |   | Year      Ended December 31, |   |   |   |   |
|-------------------------------------|--------|------------------------------------|--------|--------|------------------------------|--------|--------|--------|--------|
|                                |   | Stage                              |   |   | 2008                         |   |   | 2007   |   |   | %      Change |   |
|                                |   |                               |   |   |                         |   |   |   |   |   |   |   |
| Sales      & Marketing Expenses |   | $                                  | 53,959 |   |                         | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

----

|                                     |   | Cumulative      During Development |    |   | Year      Ended December 31, |   |   |   |   |
|------------------------------------------|--------|------------------------------------|---------|--------|------------------------------|--------|--------|--------|--------|
|                                     |   | Stage                              |    |   | 2008                         |   |   | 2007   |   |   | %      Change |   |
|                                     |   |                               |    |   |                         |   |   |   |   |   |   |   |
| Research      & Development Expenses |   | $                                  | 252,550 |   |                         | $      | 0      |   |   | $ | 0 |   |   |   | (0%) |   |

|                                       |   | Cumulative      DuringDevelopment |       |   | Year      Ended December 31, |   |
|--------------------------------------------|--------|-----------------------------------|------------|--------|------------------------------|--------|
|                                       |   | Stage                             |       |   | 2008                         |   |   | 2007 | %      Change |
|                                       |   |                              |       |   |                         |   |   |   |   |
| General      & Administrative Expenses |   | $                                 | 13,418,567 |   |                         | $      | 1,406,916 |   |   | $ | 1,864,178 |   | (25%) |

|                                              |   | Cumulative      During Development |      |   | Year      Ended December 31, |   |   |   |   |
|---------------------------------------------------|--------|------------------------------------|-----------|--------|------------------------------|--------|--------|--------|--------|
|                                              |   | Stage                              |      |   | 2008                         |   |   | 2007   |   |   | %      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                              |        |   | 2008                         |   |     | 2007   |   |   | %      Change |   |
| Net      (loss)                          |   | $                                  | (16,705,021 | )      |                         | $      | (428,575 | )      |   | $ | (2,103,235 | ) |   |   | 80% |   |
| Net      (loss) per share                |   |                               |        |   |                         | $      | (0.02    | )      |   | $ | (0.02 | ) |   |   |   |   |
| Weighted      average shares outstanding |   |                               |        |   |                         |   |     |   |   |   | 1,231,640 |   |   |   |   |   |

----

----

----

----

----

| Name                  |   | Age    |   | Position                                          |   | Date      of Appointment |
|-----------------------|--------|--------|--------|---------------------------------------------------|--------|--------------------------|
|                  |   |   |   |                                              |   |                     |
| Robert      P. Atwell |   | 55     |   | President,      Chief Executive Officer, Chairman |   | March      19, 2003      |
|                  |   |   |   |                                              |   |                     |
| George      Jackson   |   | 48     |   | 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 |   |   | 2008   |   | $      | 420,000      |   |   | 0        |   |   | 0                    |   |   | 0                     |   |   | 0                                               |   |   | 0                                                    |   |   | 0                              | $      | 420,000   |
| Executive      Officer                               |   |   | 2007   |   | $      | 250,000      |   |   | 0        |   |   | 0                    |   |   | 0                     |   |   | 0                                               |   |   | 0                                                    |   |   | 0                              | $      | 250,000   |
|                                                 |   |   |   |   |   |         |   |   |     |   |   |                 |   |   |                  |   |   |                                            |   |   |                                                 |   |   |                           |   |      |
| George      Jackson, (2)Secretary,      Chief        |   |   | 2008   |   | $      | 150,000      |   |   | 0        |   |   | 0                    |   |   | 0                     |   |   | 0                                               |   |   | 0                                                    |   |   | 0                              | $      | 150,000   |
| Financial      Officer                               |   |   | 2007   |   | $      | 100,000      |   |   | 0        |   |   | 0                    |   |   | 0                     |   |   | 0                                               |   |   | 0                                                    |   |   | 0                              | $      | 100,000   |
|                                                 |   |   |   |   |   |         |   |   |     |   |   |                 |   |   |                  |   |   |                                            |   |   |                                                 |   |   |                           |   |      |
| Michael      Ellis, (3)Chief      Operating          |   |   | 2008   |   | $      |  0      |   |   | 0        |   |   | 0                    |   |   | 0                     |   |   | 0                                               |   |   | 0                                                    |   |   | 0                              | $      | 0         |
| Officer                                              |   |   | 2007   |   | $      |  70,000 |   |   | 0        |   |   | 70,000               |   |   | 0                     |   |   | 0                                               |   |   | 0                                                    |   |   | 0                              | $      | 140,000   |

|                                                                                                             |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| 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)130      Vantis, Suite 140Aliso      Viejo, CA 92656 |  531,766,319                   |  34%     |
|                                                                                |                                |          |
| George      Jackson (2)130      Vantis, Suite 140Aliso      Viejo, CA 92656         | 58,535,599                          | 4%            |
|                                                                                |                                |          |
| TOTAL      5% Stockholders as a Group                                               | 590,301,918                         | 38%           |
|                                                                                |                                |          |

----

| (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 (1)Chairman,      President, CEO130      Vantis, Suite 140Aliso      Viejo, CA 92656 |  531,766,319                    |  34%              |
|                                                                                                       |                                 |                   |
| George      Jackson (2)Secretary,      CFO130      Vantis, Suite 140Aliso      Viejo, CA 92656             | 58,535,599                           | 4%                     |
|  Totals:                                                                                              |  590,301,918                    |  38%              |
|                                                                                                       |                                 |                   |
| Note      (1): Includes direct and indirect affiliate ownership.                                           |                                 |                   |
| Note      (2): Includes direct and indirect affiliate ownership.                                           |                                 |                   |
| Note      (3): Based on 1,563,669,608 shares issued as of 12/31/08.                                        |                                 |                   |

----

|  Name      of Beneficial Owner | Series      A Preferred Shares      Beneficially Owned |  Percent      (3) |
|-------------------------------------|-------------------------------------------------------------|------------------------|
|                                |                                                        |                   |

| Robert      P. Atwell (1)Chairman,      President, CEO130      Vantis, Suite 140Aliso      Viejo, CA 92656                                                                                 |  6,125,010 |  83% |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-----------|
|                                                                                                                                                                                       |            |      |
| George      Jackson (2)Secretary,      CFO130      Vantis, Suite 140Aliso      Viejo, CA 92656                                                                                             |  1,110,000 |  15% |
| Totals:                                                                                                                                                                                    | 7,235,010       | 98%       |
| Note      (1): Includes shares held directly and indirectly. Converts to 24,500,040      common shares. Equals 306,250,500 votes.                                                          |            |      |
| Note      (2): Includes shares held directly and indirectly. Converts to 4,440,000      common shares. Equals55,500,000      votes. (3)      Based on 7,347,511 total Series A Shares |            |      |

|  Name      of Beneficial Owner                                                                                                                                                        | Series      B Preferred Shares      Beneficially Owned |  Percent      (3) |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|------------------------|
|                                                                                                                                                                                       |                                                        |                   |
| Robert      P. Atwell (1)Chairman,      President, CEO130      Vantis, Suite 140Aliso      Viejo, CA 92656                                                                                 |  6,060,809                                             |  84%              |
|                                                                                                                                                                                       |                                                        |                   |
|  George      Jackson (2)Secretary,      CFO130      Vantis, Suite 140Aliso      Viejo, CA 92656                                                                                       |  1,110,000                                             |  15%              |
| Totals:                                                                                                                                                                                    | 7,170,809                                                   | 99%                    |
|                                                                                                                                                                                       |                                                        |                   |
| Note      (1): Includes shares held directly and indirectly. Converts to 60,608,090      common shares. Equals 6,060,809,000 votes.                                                        |                                                        |                   |
| Note      (2): Includes shares held directly and indirectly. Converts to 11,100,000      common shares. Equals 1,110,000,000 votes.Note      (3): Based on 7,196,510 total Series B Shares |                                                        |                   |
|  Name of Beneficial Owner                                                                                                                                                             | Series C Preferred Shares Beneficially Owned           |  Percent (3)      |
|                                                                                                                                                                                       |                                                        |                   |
| Robert      P. Atwell (1)Chairman,      President, CEO130      Vantis, Suite 140Aliso      Viejo, CA 92656                                                                                 |  6,030,000                                             |  84%              |
|                                                                                                                                                                                       |                                                        |                   |
|  George      Jackson (2)Secretary,      CFO130      Vantis, Suite 140Aliso      Viejo, CA 92656                                                                                       |  1,101,000                                             |  15%              |
|   Totals:                                                                                                                                                                        |   7,131,000                                       |   99%        |
|                                                                                                                                                                                       |                                                        |                   |
| Note      (1): Includes shares held directly and indirectly. Converts to 6,030,000      common shares. Equals 6,030,000 votes.                                                        |                                                        |                   |

| Note      (2): Includes shares held directly and indirectly. Converts to 1,101,000      common shares. Equals 1,101,000 votes.  |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|  Note      (3): Based on 7,151,500 total Series C Shares.                                                                       |   |   |

----

| Common     |   | Shares |          |   | Common Equivalent |   |          | Votes  |   |   | Percentage    |   |
|------------|--------|--------|---------------|--------|-------------------|--------|---------------|--------|--------|--------|---------------|--------|
| Management |   |   | 590,301,918   |   |              |   | 590,301,918   |   |   |   | 590,301,918   |   |   |   | 38 | % |
| Others     |   |   | 973,367,690   |   |              |   | 973,367,690   |   |   |   | 973,367,690   |   |   |   | 62 | % |
| Total      |   |   | 1,563,669,608 |   |              |   | 1,563,669,608 |   |   |   | 1,563,669,608 |   |   |   | 100 | % |
|       |   |   |          |   |              |   |          |   |   |   |          |   |   |   |   |   |
| Series A   |   | Shares |          |   | Common Equivalent |   |          | Votes  |   |   | Percentage    |   |
| Management |   |   | 7,235,010     |   |              |   | 28,940,040    |   |   |   | 361,750,500   |   |   |   | 98 | % |
| Others     |   |   | 112,501       |   |              |   | 450,004       |   |   |   | 5,625,050     |   |   |   | 2 | % |
| Total      |   |   | 7,347,511     |   |              |   | 29,390,044    |   |   |   | 367,375,550   |   |   |   | 100 | % |
|       |   |   |          |   |              |   |          |   |   |   |          |   |   |   |   |   |
| Series B   |   | Shares |          |   | Common Equivalent |   |          | Votes  |   |   | Percentage    |   |
| Management |   |   | 7,170,809     |   |              |   | 71,708,090    |   |   |   | 7,170,809,000 |   |   |   | 99 | % |
| Others     |   |   | 25,701        |   |              |   | 257,010       |   |   |   | 25,701,000    |   |   |   | 1 | % |
| Total      |   |   | 7,196,510     |   |              |   | 71,965,100    |   |   |   | 7,196,510,000 |   |   |   | 100 | % |
|       |   |   |          |   |              |   |          |   |   |   |          |   |   |   |   |   |
| Series 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 |   |   | 611,838,737   |   |              |   | 698,081,048   |   |   |   | 8,129,992,418 |   |   |   | 89 | % |
| Others     |   |   | 973,526,392   |   |              |   | 974,095,204   |   |   |   | 1,004,714,240 |   |   |   | 11 | % |
| Total      |   |   | 1,585,365,129 |   |              |   | 1,672,176,252 |   |   |   | 9,134,706,658 |   |   |   | 100 | % |

| Name      of Beneficial Owner (1)                                                                      | Total      Votes    | Percent   |
|--------------------------------------------------------------------------------------------------------|---------------------|-----------|
|                                                                                                   |                |      |
| Robert      P. AtwellChairman,      President, CEO130      Vantis, Suite 140Aliso      Viejo, CA 92656 |  6,904,855,819 |  76% |
|                                                                                                   |                |      |
| George      JacksonSecretary,      CFO130      Vantis, Suite 140Aliso      Viejo, CA 92656             |  1,225,136,599 |  13% |
|                                                                                                   |                |      |
| All      Other Common Stockholders                                                                     | 1,004,714,240       | 11%       |
|                                                                                                   |                |      |
| Totals:                                                                                                | 9,134,706,658       | 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                    |
|             |         |                                                                                                                                                                                                                        |

----

| ITEM13. |  EXHIBITS AND      REPORTS ON FORM 8-K LIST OF EXHIBITS ATTACHED OR INCORPORATED BY REFERENCE      PURSUANT TO ITEM 601 OF REGULATION S-B. -continued |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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           |
|   |   |                                                                                                                                                                                                              |
| 4.10   |   | 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  |
|   |   |                                                                                                                                                                                                          |   |                                                                                     |

----

| ITEM13. |  EXHIBITS AND      REPORTS ON FORM 8-K LIST OF EXHIBITS ATTACHED OR INCORPORATED BY REFERENCE      PURSUANT TO ITEM 601 OF REGULATION S-B. -continued |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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                      |
|   |   |                                                                                                                                                                                                                    |         |                                                                                    |
| 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                                                             |         |                                                                                    |
|   |   |                                                                                                                                                                                                                    |         |                                                                                    |

----

| ITEM13. |  EXHIBITS AND      REPORTS ON FORM 8-K LIST OF EXHIBITS ATTACHED OR INCORPORATED BY REFERENCE      PURSUANT TO ITEM 601 OF REGULATION S-B. -continued  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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               |
|                                                                                           |                    |
|  BALANCE      SHEETS AS OF DECEMBER 31, 2008 and 2007                                     |  F-3               |
|                                                                                           |                    |
|  STATEMENTS      OF OPERATIONS FOR 2008, 2007 AND FOR INCEPTION TO DECEMBER 31,      2008 |  F-4               |
|                                                                                           |                    |
|  STATEMENTS      OF STOCKHOLDERS' DEFICIT FOR INCEPTION TO DECEMBER 31,2008               |  F-5      - F-10   |
|                                                                                           |                    |
|  STATEMENTS      OF CASH FLOWS FOR 2008, 2007 AND FOR INCEPTION TO DECEMBER 31,      2008 |  F-11              |
|                                                                                           |                    |
|  NOTES      TO FINANCIAL STATEMENTS                                                       |  F-12      TO F-36 |

----

----

| Camelot      Entertainment Group, Inc.                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|
|        (A      Development Stage Company)                                                                                |   |
| Balance      Sheets                                                                                                           |   |
|                                                                                                                          |   |   |   |   |   |   |   |
|                                                                                                                          |   |   |   |   |   |   |   |
|            ASSETS                                                      |   |
|                                                                                                                          |   |   | December      31, |   |   | December      31, |   |
|                                                                                                                          |   |   | 2008 |   |   | 2007 |   |
| Current Assets:                                                                                                               |   |   |   |   |   |   |   |
| Cash                                                                                                                          |   |   | $ | 175 |   |   | $ | 122 |   |
| Prepaid      Expenses                                                                                                         |   |   |   | 1,733 |   |   |   | 6,424 |   |
| Total      Current Assets                                                                                                     |   |   |   | 1,908 |   |   |   | 6,546 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
| School      District Deposit                                                                                                  |   |   |   | - |   |   |   | 50,000 |   |
| Deferred      Financing Costs                                                                                                 |   |   |   | - |   |   |   | 54,984 |   |
| Scripts      Costs                                                                                                            |   |   |   | - |   |   |   | 79,700 |   |
| Total      Other Assets                                                                                                       |   |   |   | - |   |   |   | 184,684 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
|     Total      Assets                                                                                     |   |   | $ | 1,908 |   |   | $ | 191,230 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      DEFICIT                                                                                    |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                                                           |   |   |   |   |   |   |   |   |   |
| Accounts      Payable and Accured Liabilities                                                                                 |   |   | $ | 206,847 |   |   | $ | 176,999 |   |
| Accrued      Wages to Related Parties                                                                                         |   |   |   | 722,000 |   |   |   | 350,000 |   |
| Secured      Convertible Notes Payable, net of discount of $394,506 and $0,      respectively                                 |   |   | 92,070 |   |   |   | - |   |
| Derivative      Liability - Conversion Feature                                                                                |   |   |   | 147,838 |   |   |   | - |   |
| Note      Payable to Shareholder                                                                                              |   |   |   | 215,598 |   |   |   | 300,000 |   |
| Shareholder      Advances                                                                                                     |   |   |   | 22,830 |   |   |   | 134,757 |   |
| Other      Current Liabilities                                                                                                |   |   |   | 15,000 |   |   |   | - |   |
| Total      Current Liabilities                                                                                                |   |   |   | 1,422,183 |   |   |   | 961,756 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Long Term Liabilities:                                                                                                        |   |   |   |   |   |   |   |   |   |
| Derivative      Liability - Series A, B and C Convertible Preferred Stock Conversion      Feature                             |   |   |   | 65,630 |   |   |   | 726,223 |   |
| Secured      Convertible Notes Payable, net of current portion and discount of $407,246      and $647,762, respectively       |   |   | 311,897 |   |   |   | 295,970 |   |
| Derivative      Liability - Conversion Feature                                                                                |   |   |   | 218,500 |   |   |   | 542,661 |   |
| Derivative      Liability - Warrant                                                                                           |   |   |   | 3,992 |   |   |   | 50,759 |   |
|   Total      Long Term Liabilities                                                                                  |   |   |   | 600,019 |   |   |   | 1,615,613 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
|        Total      Liabilities                                                              |   |   |   | 2,022,202 |   |   |   | 2,577,369 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Series      A, B, C Convertible Preferred Stock                                                                               |   |   |   | 50,905 |   |   |   | 28,152 |   |
| Par      value $.001 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                                                        |   |   |   |   |   |   |   |   |   |
|   35,000,000      shares authorized: 195,011, 86,510 and 0                                                          |   |   |   |   |   |   |   |   |   |
|   shares      issued and outstanding as of December 31, 2007                                                        |   |   |   |   |   |   |   |   |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
| Stockholders' Deficit:                                                                                                        |   |   |   |   |   |   |   |   |   |
|   Common      Stock                                                                                                 |   |   |   | 1,563,670 |   |   |   | 2,245 |   |
|     Par      Value $.001 Per Share; Authorized  2,950,000,000 Shares;      1,563,977,942 Shares |   |   |   |   |   |   |   |   |
|      Issued      and 1,563,669,608 Outstanding as of December 31, 2008                               |   |   |   |   |   |   |   |   |   |
|      Authorized      300,000,000 shares;  2,553,397 issued and                                  |   |   |   |   |   |   |   |   |   |
|      2,245,063      shares outstanding as of December 31, 2007                                       |   |   |   |   |   |   |   |   |   |
|   Additional      Paid-in Capital                                                                                   |   |   |   | 13,070,152 |   |   |   | 13,859,910 |   |
|   Deficit      Accumulated During the Development Stage                                                             |   |   |   | (16,705,021 | ) |   |   | (16,276,446 | ) |
| Total      Stockholders' Deficit                                                                                              |   |   |   | (2,071,199 | ) |   |   | (2,414,291 | ) |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
|     Total      Liabilities and Stockholders' Deficit                                                      |   |   | $ | 1,908 |   |   | $ | 191,230 |   |
|                                                                                                                          |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integal part of theses financial      statements.                                          |   |   |   |   |   |

----

|        Camelot      Entertainment Group, Inc.          |   |
|-------------------------------------------------------------|--------|
|  (A      Development Stage Company)                    |
|  Statements      of Operations                         |   |
|                                                        |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   | From |   |
|                                                        |   |   |   |   |   |   |   | Inception      on |   |
|                                                        |   |   |   |   |   |   |   | April      21, 1999 |   |
|                                                        |   | For      Year Ended, |   |   | For      Year Ended, |   |   | through |   |
|                                                        |   | December      31, |   |   | December      31, |   |   | December      31, |   |
|                                                        |   | 2008 |   |   | 2007 |   |   | 2008 |   |
|                                                        |   |   |   |   |   |   |   |   |   |
| 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                             |   |   | 1,406,916 |   |   |   | 1,864,178 |   |   |   | 13,418,567 |   |
| Impairment      of Assets                                   |   |   | - |   |   |   | - |   |   |   | 2,402,338 |   |
| Impairment      of Investments in Other Companies           |   |   | - |   |   |   | - |   |   |   | 710,868 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total      Expenses                 |   |   | 1,406,916 |   |   |   | 1,864,178 |   |   |   | 16,933,982 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      OPERATING LOSS                                     |   |   | (1,406,916 | ) |   |   | (1,864,178 | ) |   |   | (16,875,414 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSES):                               |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest      Expense               |   |   | (625,711 | ) |   |   | (717,537 | ) |   |   | (2,175,467 | ) |
|     Gain      on Derivative Liabilities |   |   | 1,404,052 |   |   |   | 478,480 |   |   |   | 1,890,360 |   |
|     Other      Income - CSI Investors   |   |   | 200,000 |   |   |   | - |   |   |   | 200,000 |   |
|     Gain      on Extinguishment of Debt |   |   | - |   |   |   | - |   |   |   | 255,500 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total      Other Income (Expenses)  |   |   | 978,341 |   |   |   | (239,057 | ) |   |   | 170,393 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                                               |   | $ | (428,575 | ) |   | $ | (2,103,235 | ) |   | $ | (16,705,021 | ) |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Dilutive Loss Per Common Share               |   | $ | (0.00 | ) |   | $ | (1.71 | ) |   |   |   |   |
| Weighted      Average Number of Shares Outstanding          |   |   | 88,613,681 |   |   |   | 1,231,640 |   |   |   |   |   |

----

|  Camelot      Entertainment Group, Inc.                 |   |
|--------------------------------------------------------------|--------|
|  (A      Development Stage Company)                     |   |
| STATEMENTS      OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) |   |
| For      the Period from January1, 2004 to December 31, 2008 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Deficit |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   |   |  Total |   |
|                                                         |   |  Common    Stock |   |   |  Preferred      Stock |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   |  Stockholders' |   |
|                                                         |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at January 1, 2004                              |   |   | 338,564 |   |   |   | 339 |   |   |   | - |   |   |   | - |   |   |   | 5,498,057 |   |   |   | (6,059,442 | ) |   |   | - |   |   |   | - |   |   |   | (561,046 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services                              |   |   | 1,000 |   |   |   | 1 |   |   |   | - |   |   |   |   |   |   |   | 2,999 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |
| Shares      issued for financing                             |   |   | 67,913 |   |   |   | 68 |   |   |   | - |   |   |   |   |   |   |   | 203,671 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 203,739 |   |
| Subscriptions      receivable for financing agreement        |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (116,069 | ) |   |   | - |   |   |   | (116,069 | ) |
| Share      issued for services                               |   |   | 240,090 |   |   |   | 240 |   |   |   | - |   |   |   | - |   |   |   | 1,109,267 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,109,509 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share      issued for financing                              |   |   | 76,046 |   |   |   | 76 |   |   |   | - |   |   |   | - |   |   |   | 228,989 |   |   |   | - |   |   |   | (316,003 | ) |   |   | - |   |   |   | (86,938 | ) |
| Advances      offset sub a/r                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 174,000 |   |   |   | - |   |   |   | 174,000 |   |
| Shares      issued for debt                                  |   |   | 10,000 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 39,990 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 40,000 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for amt due                               |   |   | 15,899 |   |   |   | 16 |   |   |   | - |   |   |   | - |   |   |   | 48,574 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,590 |   |
| Value      of option exercised                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 351,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 351,000 |   |
| Net      (loss)                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,265,278 | ) |   |   | - |   |   |   | - |   |   |   | (1,265,278 | ) |
| Balance      as of December 31, 2004                         |   |   | 749,512 |   |   |   | 750 |   |   |   | - |   |   |   | - |   |   |   | 7,482,547 |   |   |   | (7,324,720 | ) |   |   | (258,072 | ) |   |   | - |   |   |   | (99,493 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for consulting      services              |   |   | 40,000 |   |   |   | 40 |   |   |   | - |   |   |   | - |   |   |   | 219,960 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 220,000 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for officers      salaries                |   |   | 22,760 |   |   |   | 22 |   |   |   | - |   |   |   | - |   |   |   | 189,822 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 189,844 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Eagle      for expenses paid           |   |   | 18,487 |   |   |   | 18 |   |   |   | - |   |   |   | - |   |   |   | 80,908 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 80,926 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for consulting      services              |   |   | 2,335 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 9,998 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for officers      salaries                |   |   | 35,383 |   |   |   | 35 |   |   |   | - |   |   |   | - |   |   |   | 174,965 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 175,000 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Eagle      for expenses paid           |   |   | 14,527 |   |   |   | 15 |   |   |   | - |   |   |   | - |   |   |   | 119,657 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 119,672 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Eagle 20%      of shares issued        |   |   | 17,623 |   |   |   | 18 |   |   |   | - |   |   |   | - |   |   |   | 122,738 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 122,753 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for Shareholder      loans 2005           |   |   | 35,869 |   |   |   | 36 |   |   |   | - |   |   |   | - |   |   |   | 259,905 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 259,941 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class      A Preferred Stock issued                          |   |   | - |   |   |   | - |   |   |   | 51,000 |   |   |   | 51 |   |   |   | 560,949 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 561,000 |   |
| Class      B Preferred Stock issued                          |   |   |   |   |   |   |   |   |   |   | 51,000 |   |   |   | 51 |   |   |   | 2,804,949 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,805,000 |   |
| Net      Loss                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,500,139 | ) |   |   | - |   |   |   | - |   |   |   | (4,500,139 | )  |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at Dec 31, 2005                                 |   |   | 936,496 |   |   |   | 936 |   |   |   | 102,000 |   |   |   | 102 |   |   |   | 12,026,397 |   |   |   | (11,824,859 | ) |   |   | (258,072 | ) |   |   | - |   |   |   | (55,496 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss at December 31, 2006                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,348,352 | ) |   |   | - |   |   |   | - |   |   |   | (2,348,352 | )  |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for officers      salaries                |   |   | 51,915 |   |   |   | 52 |   |   |   | - |   |   |   | - |   |   |   | 469,948 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 470,000 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Consultants                            |   |   | 20,098 |   |   |   | 20 |   |   |   | - |   |   |   | - |   |   |   | 181,068 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 181,088 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Eagle for expenses paid           |   |   | 12,013 |   |   |   | 12 |   |   |   | - |   |   |   | - |   |   |   | 114,309 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 114,321 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Eagle Shareholder      loans           |   |   | 12,708 |   |   |   | 13 |   |   |   | - |   |   |   | - |   |   |   | 118,169 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 118,182 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Eagle per      agreement 20%           |   |   | 18,327 |   |   |   | 18 |   |   |   | - |   |   |   | - |   |   |   | 170,426 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 170,444 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Scorpion      Bay LLC                  |   |   | 15,000 |   |   |   | 15 |   |   |   | - |   |   |   | - |   |   |   | 135,135 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 135,150 |   |
| Imputed      interest on related notes payable               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 19,238 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 19,238 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at Dec 31, 2006                                 |   |   | 1,066,557 |   |   |   | 1,067 |   |   |   | 102,000 |   |   |   | 102 |   |   |   | 13,234,690 |   |   |   | (14,173,211 | ) |   |   | (258,072 | ) |   |   | - |   |   |   | (1,195,425 | ) |

----

| Camelot      Entertainment Group, Inc.                                   |   |
|--------------------------------------------------------------------------|--------|
|  (A      Development Stage Company)                                 |   |
| STATEMENTS      OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - continued |   |
| For      the Period from January1, 2004 to December 31, 2008             |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Deficit |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   |   |  Total |   |
|                                                                     |   |  Common    Stock |   |   |  Preferred      Stock |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   |  Stockholders' |   |
|                                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Nucore                                             |   |   | 50,000 |   |   |   | 50 |   |   |   | - |   |   |   | - |   |   |   | 499,950 |   |   |   | - |   |   |   | (500,000 | ) |   |   | - |   |   |   | - |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for interest on Note Payable                          |   |   | 70,000 |   |   |   | 70 |   |   |   | - |   |   |   | - |   |   |   | 338,930 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 339,000 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for expenses paid                                     |   |   | 4,020 |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | 16,074 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 16,078 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services                                          |   |   | 12,500 |   |   |   | 13 |   |   |   | - |   |   |   |   |   |   |   | 49,987 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 50,000 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for conversion of notes payable                       |   |   | 12,508 |   |   |   | 13 |   |   |   | - |   |   |   | - |   |   |   | 29,411 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 29,424 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives      liability relieved by conversions on N/P                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,399 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 48,399 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Imputed      interest on Shareholders loans                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,246 |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 2,246 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for service - Bastien & Associates                |   |   | 2,084 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 2,081 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | 2,083 |   |
|                                                                     |   |   | 27,289 |   |   |   | 27 |   |   |   | - |   |   |   | - |   |   |   | 22,349 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22,376 |   |
| NIR      Fairhill Capital                                                |   |   | 90,000 |   |   |   | 90 |   |   |   | - |   |   |   | - |   |   |   | 12,665 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,755 |   |
| Shares      issued for interest on Notes payable - Scorpion      Bay LLC |   |   | 10,000 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 3,090 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,100 |   |
| Shares      issued to Scorpion      Bay LLC                              |   |   | 10,000 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 5,490 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,500 |   |
| Shares      issued for interest on notes payable - Scorpion      Bay LLC |   |   | 28,000 |   |   |   | 28 |   |   |   | - |   |   |   | - |   |   |   | 9,772 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,800 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued for services -  Patrick Winn                |   |   | 10,000 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 3,790 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,800 |   |
| Shares      issued for services -  Susan Sanchez               |   |   | 10,000 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 3,790 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,800 |   |
| Cancelled      Subscription Receivable 2003                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (258,072 | ) |   |   | - |   |   |   | 258,072 |   |   |   | - |   |   |   |   |   |
| Shares      issued to Scorpion Bay, LLC                                  |   |   | 91,000 |   |   |   | 91 |   |   |   | - |   |   |   | - |   |   |   | 31,046 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 31,137 |   |
| Shares      issued for Services - Patrick Winn                           |   |   | 27,680 |   |   |   | 28 |   |   |   | - |   |   |   | - |   |   |   | 9,106 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,134 |   |
| Shares      issued for Services - Susan Sanchez                          |   |   | 34,460 |   |   |   | 34 |   |   |   | - |   |   |   | - |   |   |   | 11,338 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 11,372 |   |
| Preferred      Stock - Series A                                          |   |   |   |   |   |   |   |   |   |   | 144,010 |   |   |   | 144 |   |   |   | 189,950 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 190,094 |   |
| Shares      issued to Dolpin Communities                                 |   |   | 50,000 |   |   |   | 50 |   |   |   | - |   |   |   | - |   |   |   | 8,722 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,772 |   |
| Preferred      Stock - Series B                                          |   |   | - |   |   |   |   |   |   |   | 35,510 |   |   |   | 36 |   |   |   | 117,146 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 117,182 |   |
| Shares      issued to NIR                                                |   |   | 30,200 |   |   |   | 30 |   |   |   | - |   |   |   | - |   |   |   | 5,505 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,535 |   |
| Shares      issued for legal services - Chris Flannery                   |   |   | 25,000 |   |   |   | 25 |   |   |   | - |   |   |   | - |   |   |   | 9,975 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares      issued to John Kozmur - investment                           |   |   | 200,000 |   |   |   | 200 |   |   |   | - |   |   |   | - |   |   |   | 59,800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |
| Shares      issued to Jeff Zuckerman - investment                        |   |   | 200,000 |   |   |   | 200 |   |   |   | - |   |   |   | - |   |   |   | 59,800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 60,000 |   |

----

| Camelot      Entertainment Group, Inc.                                   |   |
|--------------------------------------------------------------------------|--------|
| (A      Development Stage Company)                                       |   |
| STATEMENTS      OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - continued |   |
| For      the Period from January1, 2004 to December 31, 2008             |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Deficit |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   |   |  Total |   |
|                                                                     |   |  Common    Stock |   |   |  Preferred      Stock |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   |  Stockholders' |   |
|                                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Joseph Petrucelli - legal services                 |   |   | 25,000 |   |   |   | 25 |   |   |   | - |   |   |   | - |   |   |   | 9,975 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares      issued to Chris Davis - services                             |   |   | 2,384 |   |   |   | 2 |   |   |   | - |   |   |   | - |   |   |   | 1,190 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,192 |   |
| Shares      issued to Micheal Ellis - services                           |   |   | 47,924 |   |   |   | 48 |   |   |   | - |   |   |   | - |   |   |   | 69,952 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |
| Shares      issued to Lewis Consulting - services                        |   |   | 10,000 |   |   |   | 10 |   |   |   | - |   |   |   |   |   |   |   | 4,990 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares      issued to Craig Prater - services                            |   |   | 1,458 |   |   |   | 1 |   |   |   | - |   |   |   |   |   |   |   | 728 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 729 |   |
| Shares      issued to Scorpin Bay, LLC                                   |   |   | 147,000 |   |   |   | 147 |   |   |   | - |   |   |   |   |   |   |   | 52,781 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 52,928 |   |
| Cancelled      Subscription Receivable to Nucore                         |   |   | (50,000 | ) |   |   | (50 | ) |   |   | - |   |   |   |   |   |   |   | (499,950 | ) |   |   | - |   |   |   | 500,000 |   |   |   | - |   |   |   | - |   |
| Derivative      Liability - Preferred Stock A & B                    |   |   |   |   |   |   |   |   |   |   | (281,520 | )  |   |   | (282 | ) |   |   | (306,785 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (307,067 | ) |
| Net      Loss                                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,103,235 | ) |   |   | - |   |   |   | - |   |   |   | (2,103,235 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2007                                        |   |   | 2,245,063 |   |   |   | 2,245 |   |   |   | - |   |   |   | - |   |   |   | 13,859,910 |   |   |   | (16,276,446 | ) |   |   | - |   |   |   | - |   |   |   | (2,414,291 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      issued to Schubert Flint for services                        |   |   | 10,000 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 4,990 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares      issued to NIR                                                |   |   | 55,000 |   |   |   | 55 |   |   |   | - |   |   |   | - |   |   |   | 8,440 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,495 |   |
| Preferred      shares issued to Scorpion Bay                             |   |   |   |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | 5,829 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,829 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt      conversion 2nd qtr                                             |   |   | 315,000 |   |   |   | 315 |   |   |   | - |   |   |   | - |   |   |   | 25,331 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 25,646 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Corporate      Solution, Inc.8/13/2008                  |   |   | 100,000 |   |   |   | 100 |   |   |   | - |   |   |   | - |   |   |   | 2,900 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |
| Shares issued to investors      escrow8/1/2008                           |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Shares issued to Scorpion Bay,      LLC8/13/2008                         |   |   | 92,210 |   |   |   | 92 |   |   |   | - |   |   |   | - |   |   |   | 4,519 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,611 |   |
| Shares issued to George      Jackson8/13/2008                            |   |   | 200,000 |   |   |   | 200 |   |   |   | - |   |   |   | - |   |   |   | 9,800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Atwell Group,      Inc.8/13/2008                        |   |   | 280,000 |   |   |   | 280 |   |   |   | - |   |   |   | - |   |   |   | 13,720 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,000 |   |
| Shares issued to Jeff      Brown8/27/2008                                |   |   | 10,000 |   |   |   | 10 |   |   |   | - |   |   |   | - |   |   |   | 290 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 300 |   |
| Shares issued to investors escrow      adjustment8/27/2008               |   |   | (10,000 | ) |   |   | (10 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (10 | ) |
| at      stock split                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to CEDE9/8/2008                                            |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to NIR8/29/2008                                            |   |   | 124,700 |   |   |   | 125 |   |   |   | - |   |   |   | - |   |   |   | 624 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 749 |   |
| Shares issued to NIR9/3/2008                                             |   |   | 124,700 |   |   |   | 125 |   |   |   | - |   |   |   | - |   |   |   | 1,247 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,372 |   |
| Shares issued to NIR9/12/2008                                            |   |   | 124,700 |   |   |   | 125 |   |   |   | - |   |   |   | - |   |   |   | 811 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 936 |   |
| Shares issued to NIR9/17/2008                                            |   |   | 124,700 |   |   |   | 125 |   |   |   | - |   |   |   | - |   |   |   | 717 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 842 |   |
| Shares issued to NIR9/18/2008                                            |   |   | 55,000 |   |   |   | 55 |   |   |   | - |   |   |   | - |   |   |   | 105 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 160 |   |
| Shares issued to NIR9/22/2008                                            |   |   | 69,700 |   |   |   | 70 |   |   |   | - |   |   |   | - |   |   |   | 174 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 244 |   |
| Shares issued to NIR9/24/2008                                            |   |   | 124,700 |   |   |   | 125 |   |   |   | - |   |   |   | - |   |   |   | 839 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 964 |   |
| Shares issued to NIR9/26/2008                                            |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | 218 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,017 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to K&L      Enterprises9/12/2008                       |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 22,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 24,000 |   |

----

| Camelot      Entertainment Group, Inc.                                   |   |
|--------------------------------------------------------------------------|--------|
| (A Development      Stage Company)                                       |   |
| STATEMENTS      OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - continued |   |
| For      the Period from January1, 2004 to December 31, 2008             |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Deficit |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   |   |  Total |   |
|                                                                     |   |  Common    Stock |   |   |  Preferred      Stock |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   |  Stockholders' |   |
|                                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Patrick      Winn9/5/2008                               |   |   | 250,000 |   |   |   | 250 |   |   |   | - |   |   |   | - |   |   |   | 2,750 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,000 |   |
| Shares issued to Robert      Atwell9/18/2008                             |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 4,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |
| Shares issued to George      Jackson9/18/2008                            |   |   | 300,000 |   |   |   | 300 |   |   |   | - |   |   |   | - |   |   |   | 600 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 900 |   |
| Shares issued to George      Jackson9/19/2008                            |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |
| Shares issued to Patrick      Winn9/19/2008                              |   |   | 250,000 |   |   |   | 250 |   |   |   | - |   |   |   | - |   |   |   | 250 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500 |   |
| Shares issued to Patrick      Winn9/19/2008                              |   |   | 250,000 |   |   |   | 250 |   |   |   | - |   |   |   | - |   |   |   | 250 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500 |   |
| Shares issued to Robert      Atwell9/19/2008                             |   |   | 5,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to George      Jackson9/26/2008                            |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 2,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
| Shares issued to Robert      Atwell9/26/2008                             |   |   | 31,818,180 |   |   |   | 31,818 |   |   |   | - |   |   |   | - |   |   |   | 38,182 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |
| Shares issued to Chris      Flannery9/26/2008                            |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 1,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Thomas      Stepp9/26/2008                              |   |   | 500,000 |   |   |   | 500 |   |   |   | - |   |   |   | - |   |   |   | 600 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,100 |   |
| Shares issued to Patrick      Winn9/26/2008                              |   |   | 500,000 |   |   |   | 500 |   |   |   | - |   |   |   | - |   |   |   | 600 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,100 |   |
| Shares issued to Joe      Petrucelli9/26/2008                            |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 1,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Vince      Monaco9/26/2008                              |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 1,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Phillip      Parsons9/26/2008                           |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 1,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Douglas      Warner9/27/2008                            |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 2,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
| Shares issued to Bastien Living      Trust9/27/2008                      |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 2,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
| Shares issued to Lewis Consulting      Group9/27/2008                    |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | 2,400 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,400 |   |
| Shares issued to Jeffory      Smith9/27/2008                             |   |   | 1,000,000 |   |   |   | 1,000 |   |   |   | - |   |   |   | - |   |   |   | 1,200 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,200 |   |
| Shares issued to Tamara      Atwell9/27/2008                             |   |   | 2,272,727 |   |   |   | 2,273 |   |   |   | - |   |   |   | - |   |   |   | 2,727 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Susan      Sanchez9/27/2008                             |   |   | 2,272,727 |   |   |   | 2,273 |   |   |   | - |   |   |   | - |   |   |   | 2,727 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Patrick      Winn9/27/2008                              |   |   | 2,272,727 |   |   |   | 2,273 |   |   |   | - |   |   |   | - |   |   |   | 2,727 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to Phillip      Parsons9/27/2008                           |   |   | 2,272,727 |   |   |   | 2,273 |   |   |   | - |   |   |   | - |   |   |   | 2,727 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,000 |   |
| Shares issued to CEDE9/30/2008                                           |   |   | 50,043 |   |   |   | 51 |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 51 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Hope Capital,      Inc11/14/2008                        |   |   | 18,000,000 |   |   |   | 18,000 |   |   |   | - |   |   |   | - |   |   |   | (5,400 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,600 |   |
| Shares issued to Hope Capital,      Inc11/18/2008                        |   |   | 20,000,000 |   |   |   | 20,000 |   |   |   | - |   |   |   | - |   |   |   | (4,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |
| Shares issued to K&L      international,  Inc11/19/2008    |   |   | 22,000,000 |   |   |   | 22,000 |   |   |   | - |   |   |   | - |   |   |   | (6,600 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15,400 |   |
| Shares issued to K&L      international,  inc11/25/2008    |   |   | 34,000,000 |   |   |   | 34,000 |   |   |   | - |   |   |   | - |   |   |   | (20,400 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,600 |   |
| Shares issued to Hope Capital,      Inc/11/25/2008                       |   |   | 34,000,000 |   |   |   | 34,000 |   |   |   | - |   |   |   | - |   |   |   | (20,400 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 13,600 |   |
| K&L      international,  inc12/2/2008                      |   |   | 40,000,000 |   |   |   | 40,000 |   |   |   | - |   |   |   | - |   |   |   | (24,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,000 |   |
| Hope Capital, Inc/12/3/2008                                              |   |   | 25,000,000 |   |   |   | 25,000 |   |   |   | - |   |   |   | - |   |   |   | (15,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Hope Capital, Inc/12/8/2008                                              |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (30,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| K&L      international,  inc12/8/2008                      |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (30,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Hope Capital, Inc/12/17/2008                                             |   |   | 60,000,000 |   |   |   | 60,000 |   |   |   | - |   |   |   | - |   |   |   | (48,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,000 |   |

----

| Camelot      Entertainment Group, Inc.                                   |   |
|--------------------------------------------------------------------------|--------|
|  (A      Development Stage Company)                                 |   |
| STATEMENTS      OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - continued |   |
| For      the Period from January1, 2004 to December 31, 2008             |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Deficit |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   |   |  Total |   |
|                                                                     |   |  Common    Stock |   |   |  Preferred      Stock |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   |  Stockholders' |   |
|                                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| K&L      international,  inc12/17/2008                     |   |   | 5,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | (4,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |
| Watson Investment Enterprises,      Inc.12/18/2008                       |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (40,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Watson Investment Enterprises,      Inc.12/18/2008                       |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (40,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Watson Investment Enterprises,      Inc.12/29/2008                       |   |   | 100,000,000 |   |   |   | 100,000 |   |   |   | - |   |   |   | - |   |   |   | (80,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |
| Shares issued to La Jolla      Investment10/1/2008                       |   |   | 7,000,000 |   |   |   | 7,000 |   |   |   | - |   |   |   | - |   |   |   | 14,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,000 |   |
| Shares issued to Tania      Babeshoff10/1/2008                           |   |   | 7,000,000 |   |   |   | 7,000 |   |   |   | - |   |   |   | - |   |   |   | 14,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21,000 |   |
| Shares issued to ATG, Inc10/2/2008                                       |   |   | 7,000,000 |   |   |   | 7,000 |   |   |   | - |   |   |   | - |   |   |   | 26,800 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 33,800 |   |
| Shares issued to Ongkaruck      Sripetch10/2/2008                        |   |   | 7,000,000 |   |   |   | 7,000 |   |   |   | - |   |   |   | - |   |   |   | 31,500 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 38,500 |   |
| Shares issued to Robert      Atwell10/8/2008                             |   |   | 35,000,000 |   |   |   | 35,000 |   |   |   | - |   |   |   | - |   |   |   | (21,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 14,000 |   |
| Shares issued to Rodger      Spainhower10/14/2008                        |   |   | 2,000,000 |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | (1,200 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 800 |   |
| Shares issued to Alpha      Trade11/7/2008                               |   |   | 8,750,000 |   |   |   | 8,750 |   |   |   | - |   |   |   | - |   |   |   | 8,111 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,861 |   |
| Shares issued to Philip      Parsons11/10/2008                           |   |   | 5,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | 4,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |
| Shares issued to Patrick      Winn11/10/2008                             |   |   | 2,500,000 |   |   |   | 2,500 |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,500 |   |
| Shares issued to Tamara      Atwell11/10/2008                            |   |   | 5,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | 4,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,000 |   |
| Shares issued to Phil      Scott11/19/2008                               |   |   | 5,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | (1,500 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,500 |   |
| Shares issued to Tamara      Atwell11/21/2008                            |   |   | 25,000,000 |   |   |   | 25,000 |   |   |   | - |   |   |   | - |   |   |   | (15,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Philip      Parsons11/21/2008                           |   |   | 25,000,000 |   |   |   | 25,000 |   |   |   | - |   |   |   | - |   |   |   | (15,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to George      Jackson11/21/2008                           |   |   | 25,000,000 |   |   |   | 25,000 |   |   |   | - |   |   |   | - |   |   |   | (15,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Robert      Atwell11/21/2008                            |   |   | 25,000,000 |   |   |   | 25,000 |   |   |   | - |   |   |   | - |   |   |   | (15,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Phil      Scott12/2/2008                                |   |   | 5,000,000 |   |   |   | 5,000 |   |   |   | - |   |   |   | - |   |   |   | (3,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |
| Shares issued to Doug      Warner12/31/2008                              |   |   | 20,000,000 |   |   |   | 20,000 |   |   |   | - |   |   |   | - |   |   |   | (16,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,000 |   |
| Shares issued to Rodger      Spainhower12/31/2008                        |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (40,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Philip      Parsons12/31/2008                           |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (40,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Tamara      Atwell12/31/2008                            |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (40,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to George      Jackson12/31/2008                           |   |   | 30,000,000 |   |   |   | 30,000 |   |   |   | - |   |   |   | - |   |   |   | (24,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |
| Shares issued to Robert      Atwell12/31/2008                            |   |   | 350,000,000 |   |   |   | 350,000 |   |   |   | - |   |   |   | - |   |   |   | (280,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 70,000 |   |
| Shares issued to Phil      Scott12/31/2008                               |   |   | 10,000,000 |   |   |   | 10,000 |   |   |   | - |   |   |   | - |   |   |   | (8,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,000 |   |
| Shares issued to Vince      Monaco12/31/2008                             |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (40,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
| Shares issued to Chris      Flannery12/31/2008                           |   |   | 50,000,000 |   |   |   | 50,000 |   |   |   | - |   |   |   | - |   |   |   | (40,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,000 |   |

----

| Camelot      Entertainment Group, Inc.                                   |   |
|--------------------------------------------------------------------------|--------|
|  (A      Development Stage Company)                                 |   |
| STATEMENTS      OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - continued |   |
| For      the Period from January1, 2004 to December 31, 2008             |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Deficit |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | During |   |   |   |   |   |   |   |   |   |  Total |   |
|                                                                     |   |  Common    Stock |   |   |  Preferred      Stock |   |   | Paid-In |   |   | Development |   |   | Subscription |   |   | Deferred |   |   |  Stockholders' |   |
|                                                                     |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Stage |   |   | Receivable |   |   | Compensation |   |   | Deficit |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued to Shares to      NIR10/1/2008                             |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | 623 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,422 |   |
| Shares issued  to      NIR10/3/2008                            |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | 463 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,262 |   |
| Shares issued  to      NIR10/8/2008                            |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (16 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 783 |   |
| Shares issued  to      NIR10/13/2008                           |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (656 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 143 |   |
| Shares issued to NIR10/14/2008                                           |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (975 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (176 | ) |
| Shares issued  to      NIR10/16/2008                           |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (975 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (176 | ) |
| Shares issued  to      NIR10/27/2008                           |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (975 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (176 | ) |
| Shares issued to NIR10/31/2008                                           |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (991 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |
| Shares issued to NIR11/5/2008                                            |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (991 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |
| Shares issued to NIR11/7/2008                                            |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (991 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |
| Shares issued to NIR11/10/2008                                           |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (991 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |
| Shares issued  to      NIR11/11/2008                           |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (987 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (188 | ) |
| Shares issued to NIR11/14/2008                                           |   |   | 799,000 |   |   |   | 799 |   |   |   | - |   |   |   | - |   |   |   | (991 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (192 | ) |
| Shares issued to NIR11/14/2008                                           |   |   | 1,350,000 |   |   |   | 1,350 |   |   |   | - |   |   |   | - |   |   |   | (1,675 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |
| Shares issued to NIR11/18/2008                                           |   |   | 1,350,000 |   |   |   | 1,350 |   |   |   | - |   |   |   | - |   |   |   | (1,675 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |
| Shares issued to NIR11/19/2008                                           |   |   | 1,350,000 |   |   |   | 1,350 |   |   |   | - |   |   |   | - |   |   |   | (1,675 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (325 | ) |
| Shares issued to NIR11/20/2008                                           |   |   | 1,350,000 |   |   |   | 1,350 |   |   |   | - |   |   |   | - |   |   |   | (1,648 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (298 | ) |
| Shares issued to NIR11/21/2008                                           |   |   | 3,000,000 |   |   |   | 3,000 |   |   |   | - |   |   |   | - |   |   |   | (3,660 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (660 | ) |
| Shares issued to NIR11/25/2008                                           |   |   | 3,000,000 |   |   |   | 3,000 |   |   |   | - |   |   |   | - |   |   |   | (3,660 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (660 | ) |
| Shares issued to NIR11/26/2008                                           |   |   | 4,372,000 |   |   |   | 4,372 |   |   |   | - |   |   |   | - |   |   |   | (5,421 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,049 | ) |
| Shares issued to NIR12/1/2008                                            |   |   | 8,341,000 |   |   |   | 8,341 |   |   |   | - |   |   |   | - |   |   |   | (10,177 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,836 | ) |
| Shares issued to NIR12/8/2008                                            |   |   | 8,341,000 |   |   |   | 8,341 |   |   |   | - |   |   |   | - |   |   |   | (10,344 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,003 | ) |
| Shares issued to NIR12/23/2008                                           |   |   | 10,000,000 |   |   |   | 10,000 |   |   |   | - |   |   |   | - |   |   |   | (12,402 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,402 | ) |
| Shares issued to NIR12/30/2008                                           |   |   | 24,725,000 |   |   |   | 24,723 |   |   |   | - |   |   |   | - |   |   |   | (33,177 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (8,455 | ) |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (428,575 | ) |   |   |   |   |   |   |   |   |   |   | (428,575 | ) |
| Balance      at December 31, 2008                                        |   |   | 1,563,669,608 |   |   |   | 1,563,670 |   |   |   | - |   |   |   | - |   |   |   | 13,070,152 |   |   |   | (16,705,021 | ) |   |   | - |   |   |   | - |   |   |   | (2,071,199 | ) |

----

| Camelot      Entertainment Group, Inc.                                       |   |
|------------------------------------------------------------------------------|--------|
| (A      Development Stage Company)                                           |   |
| Statements      of Cash Flows                                                |   |
|                                                                         |   |   |   |   |   |   |   | From |   |
|                                                                         |   |   |   |   |   |   |   | Inception      on |   |
|                                                                         |   |   |   |   |   |   |   | April      21, 1999 |   |
|                                                                         |   | For      Year Ended, |   |   | For      Year Ended, |   |   | through |   |
|                                                                         |   | December      31, |   |   | December      31, |   |   | December      31, |   |
|                                                                         |   | 2008 |   |   | 2007 |   |   | 2008 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                    |   |   |   |   |   |   |   |   |   |
| Net      loss:                                                               |   | $ | (428,575 | ) |   | $ | (2,103,235 | ) |   | $ | (16,705,021 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustments      to reconcile net loss to cash used in operatingactivities:  |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization      of deferred financing costs and discounts on notes payable |   |   | 344,987 |   |   |   | 294,447 |   |   |   | 641,211 |   |
| Imputed      interest on related party advances                              |   |   | 17,000 |   |   |   | 2,246 |   |   |   | 38,484 |   |
| Gain      on change of derivative liabilities                                |   |   | (1,404,052 | ) |   |   | (478,480 | ) |   |   | (1,245,251 | ) |
| Common      stock issued for interest expense                                |   |   | 138,450 |   |   |   | 430,309 |   |   |   | 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                                        |   |   | 363,138 |   |   |   | 657,494 |   |   |   | 3,554,567 |   |
| Common      Stock issued for related party services                          |   |   | - |   |   |   | - |   |   |   | 22,000 |   |
| Common      Stock issued for technology                                      |   |   | - |   |   |   | - |   |   |   | 19,167 |   |
| Impairment      of investments in other companies                            |   |   | - |   |   |   | - |   |   |   | 710,868 |   |
| Impairment      of assets                                                    |   |   | 129,700 |   |   |   | 17,500 |   |   |   | 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 prepaids and other current assets                |   |   | 4,691 |   |   |   | - |   |   |   | (2,167 | ) |
| Increase      (decrease) in accounts payable and accrued liabilities         |   |   | 173,993 |   |   |   | 36,374 |   |   |   | 558,183 |   |
| Increase      (decrease) in due to officers                                  |   |   | 633,300 |   |   |   | 350,000 |   |   |   | 983,300 |   |
|   Cash      used in operating activities                           |   |   | (27,368 | ) |   |   | (793,345 | ) |   |   | (1,987,465 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase      of fixed assets                                                |   |   | - |   |   |   | - |   |   |   | (6,689 | ) |
| Purchase      of scripts and deposits                                        |   |   | - |   |   |   | (43,900 | ) |   |   | (129,700 | ) |
|   Cash      used in investing activities                           |   |   | - |   |   |   | (43,900 | ) |   |   | (136,389 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed      capital                                                     |   |   | - |   |   |   | - |   |   |   | 25,500 |   |
| Proceeds      from related party note payable                                |   |   | - |   |   |   | 300,000 |   |   |   | 1,316,613 |   |
| Payments      on related party note payable                                  |   |   | (20,652 | ) |   |   | - |   |   |   | (145,652 | ) |
| Proceeds      from note payable                                              |   |   | 150,000 |   |   |   | 400,000 |   |   |   | 1,317,998 |   |
| Payments      on notes payable                                               |   |   | - |   |   |   | (250,000 | ) |   |   | (254,477 | ) |
| Deferred      financing costs                                                |   |   | - |   |   |   | (13,000 | ) |   |   | (88,000 | ) |
| Advances      from shareholder                                               |   |   | 40,737 |   |   |   | 235,125 |   |   |   | 275,862 |   |
| Payments      on shareholder advances                                        |   |   | (142,664 | ) |   |   | (270,291 | ) |   |   | (412,955 | ) |
|   Cash      provided by financing activities                       |   |   | 27,421 |   |   |   | 401,834 |   |   |   | 2,034,889 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase      (decrease) in cash                                             |   |   | 53 |   |   |   | (435,411 | ) |   |   | (88,965 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      at beginning of year                                               |   |   | 122 |   |   |   | 435,533 |   |   |   | 1,140 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      at the end of the year                                             |   | $ | 175 |   |   | $ | 122 |   |   | $ | (87,825 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow information:                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      paid for interest                                                  |   | $ | - |   |   | $ | - |   |   |   |   |   |
| Cash      paid for income taxes                                              |   | $ | - |   |   | $ | - |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-cash      investing and financing transactions:                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      issued for related party liabilities                              |   | $ | - |   |   | $ | 16,078 |   |   | $ | 248,581 |   |
| Creation      of additional debt discount                                    |   | $ | - |   |   | $ | 320,315 |   |   | $ | 920,315 |   |
| Stock      issued for debt conversion                                        |   | $ | 101,560 |   |   | $ | 56,448 |   |   | $ | 158,008 |   |
| Derivative      liability relieved by conversion                             |   | $ | 19,722 |   |   | $ | 48,399 |   |   | $ | 68,121 |   |
| Accrued      interest converted into convertible notes payable               |   | $ | 144,143 |   |   | $ | - |   |   | $ | 144,143 |   |
| Accrued      salaries relieved with issuance of common stock                 |   | $ | 261,300 |   |   | $ | - |   |   | $ | 261,300 |   |
| Stock      issued per finance agreement                                      |   | $ | - |   |   | $ | - |   |   | $ | 500,000 |   |

----

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

|   | · | 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, 2008 |                   |   | December      31, 2007 |   |
|-----------------------------------------------------------|--------|------------------------|------------------------|--------|------------------------|--------|
|                                                      |   |                   |                   |   |                   |   |
|  Weighted      average common shares outstanding     |   |                   |                   |   |                   |   |
|  Used      in calculating basic loss per share  |   |                   |        88,613,681 |   |                   |   | 6,294,927 |   |

|  Effect      of dilutive convertible preferred stock convertible notes and      warrants |   |   |        2,861,386,319 |   |   |   | 1,647,151 |   |
|----------------------------------------------------------------------------------------------------|--------|--------|---------------------------|--------|--------|--------|-----------|--------|
|                                                                                               |   |   |                      |   |   |   |      |   |
|  Weighted      average common shares outstanding used in                                      |   |   |                      |   |   |   |      |   |
|  Calculating      diluted loss per share                                       |   |   | 2,950,000,000             |   |   |   | 7,942,078 |   |

----

----

----

----

----

----

----

----

----

----

| Date     | Title         | Amount  | Name                  | Type     | Consideration  | Price |
|----------|---------------|---------|-----------------------|----------|----------------|-------|
| 12/31/07 | Series      A | 100,000 | Scorpion      Bay     | Services | Consulting     | $1.32 |
| 12/31/07 | Series      A | 44,011  | The      Atwell Group | Services | Administrative | $1.32 |
| 12/31/07 | Series      B | 27,500  | Scorpion      Bay     | Services | Consulting     | $3.30 |
| 12/31/07 | Series      B | 9,810   | The      Atwell Group | Services | Administrative | $3.30 |

----

----

----

----

----

----

----

----

| Stockholder                      | Shares      Issued            | Consideration           | Disposition/Price       |
|----------------------------------|-------------------------------|-------------------------|-------------------------|
|                             |                          |                    |                    |
| Nucore      World Industries     | 380,000                       | Funding                 | Cancelled;      Stopped |
| Scorpion      Bay, LLC           | 356,000                       | Interest;      Services | Issued/Market           |
| Camelot      Ent. Gp.            | 308,333                       | Funding                 | Held      in Reserve    |
| Jeff      Zuckerman              | 200,000                       | Services                | Issued/Market           |
| John      Kozmur                 | 200,000                       | Services                | Issued/Market           |
| AJW      Offshore                |   85,053            | Funding                 | Issued/Market           |
| Dolphin      Communities         |  50,000                  | Loans;      Services    | Issued/Market           |
| Michael      Ellis               |   47,924            | Services                | Issued/Market           |
| Susan      Sanchez               |   44,460            | Services                | Issued/Market           |
| Patrick      Winn                |   37,680            | Services                | Issued/Market           |
| AJW      Qualified Partners      |   34,559            | Funding                 | Issued/Market           |
| Bastien      and Associates      |   29,373            | Services                | Issued/Market           |
| Chris      Flannery              |   25,000            | Services                | Issued/Market           |
| Petrucelli      & Associates |   25,000            | Services                | Issued/Market           |
| Douglas      Warner              |   12,500            | Services                | Issued/Market           |
| AJW      Partners                |   11,501            | Funding                 | Issued/Market           |
| Lewis      Consulting Group      |   10,000            | Services                | Issued/Market           |
| The      Atwell Group            |     4,120 | Loans;      Services    | Issued/Market           |
| Chris      Davis Int’l     |     2,384 | Services                | Issued/Market           |
| New      Millennium Capital      |     1,587 | Funding                 | Issued/Market           |
| Craig      Prater                |          1,458 | Services                | Issued/Market           |
|                             |        1,866,839         |                    |                    |
|  Total                      |                          |                    |                    |

----

----

----

----

----

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

----