UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-K



x ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31,
2010



 ̈ TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the transition period from __________to_________



Commission file number: 000-31959



U.S. Fuel Corporation

(Name of registrant as specified in its
charter)



|NEVADA                                                          |  | 88-0433815                          
|--------------------------------------------------------------- |  | ------------------------------------
|(State or other jurisdiction of
 incorporation or organization) |  | (I.R.S. Employer Identification No.)





277 White Horse Pike, Ste.200, Atco,
N.J., 08004

(Address of principal executive offices,
including zip code)



Registrant’s telephone number
including area code: (856) 753 — 1046



Securities registered under Section 12(b)
of the Act: None



Securities registered under Section 12(g)
of the Act:

Common Stock, $0.0001 Par Value



Indicate by check mark if the registrant
is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes £ 
No S



Indicate by check mark if the registrant
is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes  ̈ 
No x



Indicate by check mark if the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes  ̈  No x



Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  ̈ No x



Indicate by check mark if disclosure of
delinquent filers in response to Item 405 of Regulation S-K is not  contained herein, and will not be contained, to the
best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K. ̈



Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company (as defined in Rule
12b-2 of the Act):



|Large accelerated filer |  ̈ | Accelerated filer         |  ̈
|----------------------- | - | ------------------------- | -
|Non-accelerated filer   |  ̈ | Smaller reporting company | x



Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ̈  No x





The aggregate market value of the
shares of the issuer's voting stock held by non-affiliates as of June 30, 2010, was $5,947,258.83based the average of the bid and asked price as quoted on the OTC Electronic Bulletin Board on such date. As of July 31, 2013,
there were564,374,057shares of the issuer's common stock outstanding.















FORM 10-K ANNUAL REPORT

FISCAL YEAR ENDED DECEMBER 31, 2010

U.S. Fuel Corporation



|Item     |                                                                                                 | Page    
|-------- | ----------------------------------------------------------------------------------------------- | --------
|PART I  
|         |                                                                                                 |         
|1.       | Business                                                                                        | 3       
|1A.      | Risk Factors                                                                                    | 9       
|1B.      | Unresolved Staff Comments                                                                       | 16      
|2.       | Properties                                                                                      | 16      
|3.       | Legal Proceedings                                                                               | 16      
|4.       | Mine Safety Disclosures                                                                         | 17      
|         |                                                                                                 |         
|PART II 
|         |                                                                                                 |         
|5.       | Market for Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 17      
|6.       | Selected Financial Data                                                                         | 20      
|7.       | Management’s Discussion and Analysis of Financial Condition and Results of Operations           | 20      
|7A.      | Quantitative and Qualitative Disclosures About Market Risk                                      | 22      
|8.       | Financial Statements and Supplementary Data                                                     | F1 – F17
|9.       | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure            | F-18    
|9A.      | Controls and Procedures                                                                         | F-18    
|9B.      | Other Information                                                                               | F-20    
|         |                                                                                                 |         
|PART III
|         |                                                                                                 |         
|10.      | Directors, Executive Officers and Corporate Governance                                          | F-20    
|11.      | Executive Compensation                                                                          | F-23    
|12.      | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters  | F-25    
|13.      | Certain Relationships and Related Transactions, and Director Independence                       | F-26    
|14.      | Principal Accountant Fees and Services                                                          | F-26    
|         |                                                                                                 |         
|         | PART IV                                                                                         |         
|         |                                                                                                 |         
|15.      | Exhibits and Financial Statement Schedules                                                      | F-28    



2







PART I

CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS



This annual report on Form 10-K contains
many forward-looking statements, which involve risks and uncertainties, such as our plans, objective, expectations and intentions.
You can identify these statements by our use of words such as “may,” “expect,” “believe,” “anticipate,”
“intend,” “could,” “estimate,” “continue,” “plans,” or other similar words or
phrases. Some of these statements include discussions regarding our future business strategy and our ability to generate revenue,
income, and cash flow. We wish to caution the reader that all forward-looking statements contained in this Form 10-K are only estimates
and predictions. Our actual results could differ materially from those anticipated as a result of risk facing us or actual events
differing from the assumptions underlying such forward-looking statements. Readers are cautioned not to place undue reliance on
any forward-looking statements contained in this Annual Report on Form 10-K. We undertake no obligation to update any of these
factors or to publicly announce any change to our forward-looking statements made herein, whether as a result of new information,
future events, changes in expectations or otherwise.



Item 1. Description of Business







This Form 10-K for the period ended
December 31, 2010 is being filed in August 2013, due to the Company’s failure to timely file audited financial information
for the fiscal years of 2010, 2011 and 2012.









In addition to filing this Annual Report
on Form 10-K for the fiscal year ended December 31, 2010, the Company shall soon be filing a Form 10-K for the year ended December
31, 2011, a Form 10-K for the year ended December 31, 2012 and a Form 10-Q for the quarter ended March 31, 2013. This Report is
historically accurate for the period of this filing and although we include some current information, we strongly recommend reading
this Report in conjunction with the Form 10-K for 2011 and 2012, as well as the Company's other to be filed and filed quarterly
reports and current reports, to fully understand the Company’s current business and financial situation.







Our Corporate History and Business.



In light of the timing of this filing,
in addition to providing a brief summary of our history, we are also providing a summary of the key events that have occurred since
the year ending December 31, 2010, which is the last annual report we filed, through the date of this Report. Please note that
we have previously disclosed information about some of the corporate actions and transactions in further detail and this section
shall serve only as a summary of such events, you are therefore encouraged to review our prior filings.



Corporate History



US Fuel Corporation (the "Company")
was organized on February 27, 1997 under the laws of the State of Nevada, as Stock Watch Man, Inc. The initial business strategy
was to become an informative, comprehensive and user friendly Internet-based financial site by developing and then marketing a
website through internet search engines and links to financial resources.



In 2001, the Company took actions to change
the business focus from web services to nuclear waste remediation and entered into an Asset Purchase Agreement to acquire a Patent
License Agreement that involved new technologies believed to be potentially effective in the remediation of nuclear waste products.



3







On September 12, 2001, the Company amended
its articles of incorporation to change its name from Stock Watch Man, Inc. to Nuclear Solutions, Inc. (“NSOL”) to
ensure the corporate name properly reflected the new corporate business focus.



On September 2, 2005, NSOL formed a wholly
owned subsidiary, Fuel Frontiers Inc. (“FFI”), to pursue alternative fuel technology and projects. However, in 2008,
we elected to focus the company exclusively on the production of synthetic fuels and activities related to nuclear waste remediation
were suspended. When we later re-focused our operations, we no longer needed the subsidiary and dissolved FFI on September 12,
2012.



On July 31, 2006, the Company formed another
wholly owned subsidiary, Liquidyne Fuels, which has had no activity through June 2013.



On June 10, 2011, the Company's name was
changed from Nuclear Solutions, Inc. to US Fuel Corporation, with a singular focus to design, build, own and operate coal-to-liquid
(“CTL”) facilities.



As further described below, on June 14,
2011, the Company's Articles of Incorporation were amended to, among other things, increase the authorized common stock capital
from 100,000,000 shares of common stock, par value $0.0001 to 800,000,000 shares of common stock (the Company also has 10,000,000
shares of preferred stock, par value $0.001).



On October 7, 2011, FINRA approved the
name change to US Fuel Corporation and the symbol change from NSOL to USFF.



On September 10, 2012, pursuant to the
Board's unanimous consent to same, the following events took place:



| | 1. | Paul Adams was appointed as the Company's Chief Operating Officer;
| | -- | ------------------------------------------------------------------



| | 2. | Stephen Luck was appointed as a member of the Board of Directors;
| | -- | -----------------------------------------------------------------



| | 3. | Mr. Schwartz resigned from the Executive Committee;
| | -- | ---------------------------------------------------



| | 4. | The Executive Committee was dissolved because it accomplished its purpose and was no longer needed;
| | -- | ---------------------------------------------------------------------------------------------------



| | 5. | FFI shall be dissolved. The technology embedded in FFI was deemed unfeasible and could not be financed;
| | -- | -------------------------------------------------------------------------------------------------------



| | 6. | It was decided that Mr. Stanley Drinkwater will cast the tie breaking vote in the case of a dead
lock. G & A Capital, Development LLC also agreed to this provision and to proxy their votes to Mr. Stanley Drinkwater if required
(See "G & A Capital Agreement" below).
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



On September 20, 2012, OTC Markets removed
the label of “Caveat Emptor”, also known as the “Skull and Crossbones” from the Company's ticker symbol.



History & Progress of Business Plans/Operations



Since 2008, the business of the Company
has been to design, build, own and operate facilities to gasify coal and convert that coal-derived gas into liquid fuel. The Company’s
initial plans involved developing a large scale coal-to-liquid (“CTL”) facility that combined a plasma gasification
process with a Fischer-Tropsch process to convert coal to liquid fuel.



4







In 2008, to supplement internal planning
activities, the Company retained Mr. Paul Adams and Mr. Steven Luck as consultants to develop a facility business plan and economic
model to be used to obtain project financing. The initial focus was on building a large scale plasma gasification based CTL facility.
A technically feasible plan was developed, but financing for such a large scale project in the economic environment of 2008 and
2009 was problematic. Accordingly, in 2008, the then Board of Directors elected to focus the Company exclusively on the production
of synthetic fuels through the FFI subsidiary. Activities related to nuclear waste remediation were suspended and have not been
in active development; historical data regarding those efforts is included in the Form 10-K for the
year ended December 31, 2009.



During the summer of 2010, Mr. Adams and
Mr. Luck worked with then President and CEO of the Company, John Fairweather to modify the plans developed in 2008. Mr. Adams developed
an advanced draft of a modified project plan and Mr. Luck identified a potential funding source for the project described in that
plan. However, for reasons unknown, Mr. Fairweather broke contact with Mr. Adams and Mr. Luck in September 2010.



In 2011, with new leadership in place,
the Board of Directors evaluated the Company’s position. Given the tough economy and other issues facing the Company, i.e.
not being current with its SEC filings, the skull and cross bones “Caveat Emptor” or “Buyer Beware” on
the Company's ticker symbol, the pending lawsuits and the large debt on the Company's books, the Board knew that it would be difficult
to raise and receive the capital it needed to maintain operations. Finally, in May 2011, the Company entered into financing negotiations
with G & A Capital, Development LLC, a New Jersey limited liability company ("G & A Capital"), which led to the
execution of a Stock Purchase Agreement on May 12, 2011.



G & A Capital Agreement



The G & A Capital
Stock Purchase Agreement, as amended on May 13, 2011, provided, in pertinent part, as follows:



1.          G
& A Capital would purchase 5,000,000 shares of the Company's preferred stock for an aggregate purchase price of $662,540.37;



2.          The
Company agreed to amend its Articles of Incorporation to, among other things, increase the authorized common stock capital from
100,000,000 shares of common stock, par value $0.0001 to 800,000,000 shares of common stock (the Company also has 10,000,000 shares
of preferred stock, par value $0.001. At the time of the agreement, the Company had 97,980,981 shares of common stock and 0 shares
of preferred stock issued and outstanding.



3.          Upon
amendment of the Articles of Incorporation, G & A Capital would exchange the 5,000,000 shares of preferred stock for 164,402,076
shares of common shares, with the preferred shares being cancelled and returned to the treasury.



4.          Upon
the exchange of the preferred stock for the common stock, the Company would issue G & A a warrant to purchase up to 496,277,915
shares of common stock common shares for an aggregate price of $2,000,000.



5.          G
& A Capital agreed to distribute the shares of Company common stock that it owned to members of the Company's management and
key individuals at their discretion.



6.         
G & A Capital agreed to relieve, discharge, assume and/or pay ALL of the outstanding debt, financial obligations and all other
liabilities incurred by the Company (including, among other things, accrued expenses and accrued compensation), excluding contingent
liabilities (ie: Schrader Litigation (please see Legal Proceedings, below), subject to a limitation of liability, so long as the
liability was incurred on or before September 31, 2011 and the total dollar amount is not greater than 8 Million Dollars.



5







As per the above terms,
Articles of Incorporation were so amended on June 14, 2011.



In 2011, as a result of the G
& A Capital Stock Purchase Agreement, the Company's liabilities were reduced by $372,500.





On May 15, 2012, G & A Capital
partially exercised their Warrant to purchase 300,851,000 shares of common shares; as a result of such exercise, G & A Capital
held 465,253,076 shares of the Company's common stock.





During 2012, G & A Capital provided the following
aggregate executive compensation as per their agreement:



|Name               |  | Share Amount |           
|------------------ |  | ------------ | ----------
|Stanley Drinkwater |  |              | 76,050,000
|Harry Bagot        |  |              | 33,000,000
|William Chady (1)  |  |              | 10,000,000
|Garry Sparks (2)   |  |              | 7,500,000 
|Steven Luck        |  |              | 10,000,000
|Paul Adams (3)     |  |              | 10,000,000



| | 1) | Mr. Chady is a member of Kentucky Fuel Associates, Inc. (“KFA”), a company with whom
FFI entered into a collaborative arrangement for the development of coal-based gas-to-liquid (“CTL”) fuel production
facilities in the State of Kentucky. (See, "Note 2, Collaborative Agreement").
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2) | Mr. Sparks is General Product Manager to Kentucky Fuel Associates, Inc. (“KFA”), a
company with whom FFI entered into a collaborative arrangement for the development of coal-based gas-to-liquid (“CTL”)
fuel production facilities in the State of Kentucky. (See, "Note 2, Collaborative Agreement").
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3) | In March 2013, G & A Capital provided Mr. Adams with an additional 5,000,000 shares of common
stock for executive compensation.
| | -- | -------------------------------------------------------------------------------------------------------------------------------



Starting in June 2011, Mr. Bagot, Mr. Adams
and Mr. Luck picked up from the earlier coal-to-liquid planning efforts and began working together to develop and refine a project
plan that could be financed. The key to the new plan was a focus on a smaller, scalable facility, as financing was problematic
for the typical large-scale plants previously considered by the Company.



On December 1, 2011, the Company entered
into an agreement with Paul Adams and Steve Luck for them to



| | a. | Perform a technology survey and recommend a gasification technology, prepare a business plan and
a project proforma to submit to potential funding sources
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------



| | b. | Recommend contract terms (assurances, remedies and incentives) that should be considered in any
agreement with feedstock providers and Off-takers;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------



6







| | c. | Assist Company in initial project and long term corporate planning activities, including, without
limitation, identifying and negotiating agreements with appropriate technology providers, sources of feedstock, locations of facilities
and potential Off-takers.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | d. | Assist Company in long term planning would include, without limitation, a time line for development
of additional projects, creating appropriate supply chain and technology relationships to take advantage of economies of scale
and other economic development activities to be associated with coal gasification projects in Kentucky.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Under this agreement, Adams and Luck would
remain the owners of all deliverables and the Company will have the exclusive right to use those deliverables upon payment of specified
compensation. Pursuant to the agreement, a formal technology survey commenced in January 2012 that led to preliminary technology
selections in June 2012 and final technology selections in December 2012.



Commencing in January 2012, the Company
began a technology survey to determine the most appropriate technology to carry out its plans. Pursuant to the survey results,
we determined to use a fluidized bed gasification system provided by Emery Energy ("Emery") and to develop proprietary
gas conditioning and cleaning process, along with a scalable gas-to-liquid process, in coordination with 1st Resource
Group ("Resource Group"); we are party to a Memorandum of Understanding with each of Emergy and Resource Group as further
described below.



On May 22, 2012, the Company executed a
consulting contract with Brian Wishneff & Associates, LLC to manage the process associated with certain tax credit programs
that might be applicable to the Muhlenberg County project, with a special focus on the New Market Tax Credit program.



On July 27, 2012, Shaw Environmental &
Infrastructure, Inc. delivered its Phase I Environmental Site Assessment of the site in Central City, Kentucky, the Company selected
for its first coal to diesel project. The report was prepared in conformance with the scope and limitations of ASTM Practice E1527
and was requested as part of the Company’s pre-acquisition due diligence; the report did not reveal any evidence of recognized
environmental conditions in connection with the property. However, the report did note that the property included areas formerly
designated as wetlands and advised to ensure all applicable wetlands related requirements are followed if facility construction
activities would impact those wetlands. The property has been fully developed, so we do not anticipate any issues in this regard.





On August 14, 2012, the Company entered
into a Master Services Agreement (“MSA”) with Global Private Funding, Inc.("Global"), which included provisions
for Global to provide the Company with business incubation services, legal & compliance services and underwriting services.
The Company proceeded to achieve the milestones established by Global to obtain funding, but Global was unable to provide the funding
as promised. Accordingly, on April 22, 2013, the Company terminated the Global MSA for cause.





As more specifically disclosed in the Current
Report on Form 8-K that we filed with the SEC on December 18, 2012 (the "December 8K"), in November 2012, we signed a
general Letter of Intent (LOI) with Empyrean West (Empyrean) wherein Empyrean agreed to assist in the funding of our coal-to-liquid
(“CTL”) fuel projects in multiple locations in Kentucky. On April 22, 2013, we entered into a more specific Letter
of Intent with Empyrean pursuant to which Empyrean agreed to fund up to 65% of the loan cost (the “Empyrean Portion”)
for the CTL facilities specifically planned for Muhlenberg County and Perry County, Kentucky. The April 2013 LOI positions us to
begin work on our first two facilities to convert coal into high quality liquid fuels, including ultralow sulfur diesel and jet
fuel. The Empyrean Portion is dependent upon certain conditions, over which we may not have any control, contained in the LOI;
accordingly, there is no guarantee we will receive the Empyrean Portion. If we do not receive the Empyrean Portion, we may not
be able to find alternative funding sources on acceptable terms, or at all. The Empyrean Portion shall be paid through an EB-5
loan. In 1990, as part of a general overhaul of the legal immigration system, Congress created the fifth employment-based preference
for the issuance of United States visas.



7







On December 7, 2012, the Company entered
into a Memorandum of Understanding (MOU) with 1st Resource Group (1RG) to jointly develop and commercialize a complete
Coal to Liquid Fuels Process. Under the terms of this MOU, the Company and 1RG will jointly:



| | 1. | Develop a proprietary process to clean and condition coal-derived synthesis gas – syngas
(the “Gas Conditioning Process”);
| | -- | --------------------------------------------------------------------------------------------------------------------------



| | 2. | Develop a proprietary process to convert that cleaned and conditioned syngas into liquid fuel (the
“GTL Process”); and
| | -- | ----------------------------------------------------------------------------------------------------------------------



| | 3. | Integrate the Gas Conditioning Process and the GTL Process with a 300 ton-per-day (TPD) gasifier
to produce approximately 525 barrels (22,050 gallons) of liquid fuel, consisting of approximately 50% diesel and 50% jet fuel (the
“300 TPD CTL Facility”).
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Company, jointly with 1RG shall own
the Gas Conditioning Process and the GTL Process, with the Company having exclusive world-wide rights to use the Gas Conditioning
Process and the GTL Process on all projects in which coal is the feedstock and 1RG has exclusive world-wide rights to use the Gas
Conditioning Process and GTL Process on all projects in which natural gas is the feedstock. The Company and 1RG will joint venture
on any project involving a feedstock other than coal and natural gas.



The Company plans to build a CTL facility
that will process 300 ton-per-day ("TPD") of coal to produce synthetic fuels; such facility will be developed as a template
capable of being rapidly replicated on multiple sites. Each individual facility is expected to cost approximately $120,000,000
and create 50 direct jobs.



On December 17, 2012, the Company entered
into a Memorandum of Understanding (MOU) with Emery Energy (Emery), whereby the Company engaged Emery to provide the coal gasification
process for the Company 300 TPD CTL Facility. The Emery Bubbling Fluid Bed Gasifier technology will be licensed to the Company,
with exclusive rights available to the Company for deployment in the Commonwealth of Kentucky upon achievement of certain deployment
milestones.



On January 11, 2013, the Company’s
offer to purchase real property for coal-to-liquid facility in Perry County, Kentucky was accepted. The site is commonly known
as the Weyerhaeuser Truss Building, located at 610 Trus Joist Ln, Hazard, KY 41701 and consists of a structure of approximately
500,000 square feet, located on a parcel of +/- 92 acres.



On January 22, 2013, the Company’s
offer to purchase real property for a coal-to-liquids facility in Muhlenberg County, Kentucky was accepted. The site consists of
approximately 126.1 acres of real property in Muhlenberg County, Kentucky near the community of Cleaton, Kentucky along U.S. Hwy.
431 and adjacent to an operating surface coal mine.





On March 15, 2013, the Company executed
an employment contract with Paul Adams as Chief Operating Officer. The Company board of directors approved the agreement in September
2012 and it was immediately transmitted to Global Private Funding under the MSA. After six months of no response from Global Private
Funding, the agreement was modified slightly to remove references to Global Private Funding from the agreement and it was executed.





On April 26, 2013, the Company executed
a joint venture with Renewed World Energies, Inc. (“RWE”), a majority owned subsidiary of Aventura Equities, Inc. (OTC
pink: AVNE), to integrate RWE’s patent pending Photo bioreactor into our CTL plants planned for Muhlenberg County and Perry
County, Kentucky. The proprietary CTL process we intend to develop will include the ability to capture the carbon dioxide produced
by the CTL process. Once captured, the carbon dioxide will be put to use to grow algae using the RWE Photo bioreactor. The RWE
system circulates the water, nutrients, and CO2 required to grow the algae through the tank and panels, with the entire process
continuously monitored and the growth environment automatically adjusted to maximize output.



On May 3, 2013, we executed a Teaming Agreement
with Woolpert, Inc. ("Woolpert"), pursuant to which Woolpert will be the Lead Design Consultant and Design-Build Program
Manager to provide the necessary planning, design and preliminary design-build documents in coordination with the CTL process engineers
for our CTL plants planned for Muhlenberg County and Perry County, Kentucky.



Discussions with both RWE and Woolpert
began prior to the termination of our agreement with Global, however Global did not show any interest in either entity and took
no action to support our engagement with either entity. Following termination of the MSA with Global, we completed the formal agreements
disclosed above with RWE and Woolpert.









Major Officer/Director Changes



As disclosed below, after a 10 day suspension
period, Mr. Fairweather was terminated as the Company's CEO, President and all positions he held with the company in March 2011.



8







On March 26, 2011, the Board of Directors
appointed Harry Bagot as a Director and as the new President and Chief Executive Officer. The Company then formed an Executive
Committee, consisting of Stanley Drinkwater, Harry Bagot, William Chady and Kenneth Faith, to refocus the corporate purpose on
the building of coal-to-diesel facilities. Later, in June 2011, Mr. Robert Schwartz was also appointed to the Executive Committee.



Mr. Faith resigned as Chief Financial Officer and left the Executive
Committee on May 10, 2011; this action was required by a third party in order for Mr. Faith to participate in another business
opportunity; his relationship with The Company was excellent.



On May 13, 2011, the Board of Directors
hired William Chady, C.P.A., who is also a director, as the Company's Chief Financial Officer.



As disclosed in the Current Report on
Form 8-K that we filed on July 24, 2013, on July 15, 2013, the Board of Directors formally accepted the previously received
resignations of Mr. Paul Adams and Mr. Stephen Luck, who served as our Chief Operating Officer and a member of our Board of
Directors, respectively; such resignations were effective immediately.



Litigation(Please also
see, Legal Proceedings)



As disclosed in the Company's prior public
filings, a former shareholder of FFI (Scott Schrader - "Schrader") instituted litigation against the Company and FFI
in the fall of 2010. Schrader is the Plan Sponsor, Plan Administrator Fiduciary and Participant of Schrader & Associates Defined
Benefit Pension Plan ("Schrader"), the co-plaintiff, with whom we entered into a Stock Purchase Agreement and a Management
Agreement in 2009. The litigation resulted in questionable actions by, and the ultimate termination of Mr. Fairweather on March
23, 2011. When Mr. Fairweather left the Company, he took many company files and refused to return them. Such actions are currently
the subject of a criminal case against Mr. Fairweather.



On October 11, 2011, the Company entered
into an agreement with Larry E. Harris under which Harris would receive 1⁄2 of 1% of the net operating income of the first
US Fuel coal-to-liquid plant commissioned by the Company.  This agreement was reached as the settlement of a dispute between
the Company, G & A Capital and Harris.



On July 30, 2012, Schrader filed a complaint
against FFI in the Commonwealth of Kentucky, Muhlenberg Circuit Court Division, as Civil Action No. 12-CI-352 to Quiet Title on
property acquired by FFI. (The property that is the subject of this litigation is not the site selected for the Company's
current coal to diesel facility in Muhlenberg County.) On September 10, 2012, the Board of Directors unanimously approved Mr. Bagot's
execution of a quit claim deed to resolve the action.





On May 10, 2013, Global Private Funding
filed a civil action, number SC120696 in the Superior Court of the State of California, County of Los Angeles, West District.







Item 1A. RISK FACTORS



Although we are not required to provide
this information since we are a smaller reporting company, we are voluntarily providing such information in light of the
risks associated with our company and our lack of revenue. Before you invest in our securities, you should be aware that there
are various risks. You should consider carefully these risk factors, together with all of the other information included in this
annual report before you decide to purchase our securities. If any of the following risks and uncertainties develop into actual
events, our business, financial condition or results of operations could be materially adversely affected.



9







Limited operating history; anticipated
losses; uncertainly of future results



The Company has only a limited operating
history upon which an evaluation of the Company and its prospects can be based. The Company’s prospects must be evaluated
with a view to the risks encountered by a company in an early stage of development, particularly in light of the uncertainties
relating to the business model that the Company intends to market and the potential acceptance of the Company’s business
model. The Company will be incurring costs to develop, introduce and enhance its products, to establish marketing relationships,
to acquire and develop products that will complement each other, and to build an administrative organization. To the extent that
such expenses are not subsequently followed by commensurate revenues, the Company's business, results of operations and financial
condition will be materially adversely affected. There can be no assurance that the Company will be able to generate sufficient
revenues from the sale of its products and services. The Company expects that negative cash flow from operations may exist for
the next 12 months as it continues to develop and market its products and services. If cash generated by operations is insufficient
to satisfy the Company's liquidity requirements, the Company may be required to sell additional equity or debt securities. The
sale of additional equity or convertible debt securities would result in additional dilution to the Company's shareholders.



Intellectual Property Rights



The Company regards its patents, trademarks,
trade secrets, and other intellectual property (collectively, the "Intellectual Property Assets") as critical to its
success. The company relies on a combination of patents, trademarks, and trade secret and copyright laws, as well as confidentiality
procedures, contractual provisions, and other similar measures, to establish and protect its Intellectual Property Assets.



We generally enter into confidentiality
and invention agreements with our employees and consultants. However, patents and agreements and various other measures we take
to protect our intellectual property from use by others may not be effective for various reasons, including the following:



| | · | Our pending patent applications may not be granted for various reasons, including the existence
of similar patents or defects in the applications; parties to the confidentiality and invention agreements may have such agreements
declared unenforceable or, even if the agreements are enforceable, may breach such agreements;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | The costs associated with enforcing patents, confidentiality and invention agreements or other
intellectual property rights may make aggressive enforcement cost prohibitive;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Even if we enforce our rights aggressively, injunctions, fines and other penalties may be insufficient
to deter violations of our intellectual property rights; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Other persons may independently develop proprietary information and techniques that, although functionally
equivalent or superior to our intellectual proprietary information and techniques, do not breach our patented or unpatented proprietary
rights.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Because the value of our company and common
stock is rooted primarily in our proprietary intellectual property, our inability to protect our proprietary intellectual property
or gain a competitive advantage from such rights could have a material adverse effect on our business.



In addition, we may inadvertently be infringing
on the proprietary rights of other persons and may be required to obtain licenses to certain intellectual property or other proprietary
rights from third parties. Such licenses or proprietary rights may not be made available under acceptable terms, if at all. If
we do not obtain required licenses or proprietary rights, we could encounter delays in product development or find that the development
or sale of products requiring such licenses is foreclosed.



10







We anticipate that any business model we
develop will be subject to change. At this time it is impossible for us to predict the degree to which demand for our products
will evolve or whether any potential market will be large enough to provide any meaningful revenue or profit for us.



We have not been profitable since our inception.
There can be no assurances as to when and whether we will be able to commercialize our products and technologies and realize any
revenues. Our technologies have never been utilized on a large-scale commercial basis.



We expect that we will continue to generate
losses until at least such time as we can commercialize our technologies. No assurance can be given that we can complete the development
of any technology or that, if any technology is fully developed, it can be manufactured and marketed on a commercially viable basis.
Furthermore, no assurance can be given that any technology will receive market acceptance. We are subject to all risks inherent
in the establishment of a developing or new business.



Management of Growth



The Company expects to experience growth
in the number of employees relative to its current levels of employment and the scope of its operations. In particular, the Company
may need to hire scientists, as well as sales, marketing and administrative personnel. Additionally, acquisitions could result
in an increase in employee headcount and business activity. Such activities could result in increased responsibilities for management.
The Company believes that its ability to attract, train, and retain qualified technical, sales, marketing, and management personnel,
will be a critical factor to its future success. During strong business cycles, the Company may experience difficulty in filling
its needs for qualified personnel.



The Company's future success will be highly
dependent upon its ability to successfully manage the expansion of its operations. The Company's ability to manage and support
its growth effectively will be substantially dependent on its ability to implement adequate financial and management controls,
reporting systems, and other procedures and hire sufficient numbers of financial, accounting, administrative, and management personnel.
The Company is in the process of establishing and upgrading its financial accounting and procedures. There can be no assurance
that the Company will be able to identify, attract, and retain experienced accounting and financial personnel. The Company's future
operating results will depend on the ability of its management and other key employees to implement and improve its systems for
operations, financial control, and information management, and to recruit, train, and manage its employee base. There can be no
assurance that the Company will be able to achieve or manage any such growth successfully or to implement and maintain adequate
financial and management controls and procedures, and any inability to do so would have a material adverse effect on the Company's
business, results of operations, and financial condition.



The Company's future success depends upon
its ability to address potential market opportunities while managing its expenses to match its ability to finance its operations.
This need to manage its expenses will place a significant strain on the Company's management and operational resources. If the
Company is unable to manage its expenses effectively, the Company's business, results of operations, and financial condition may
be materially adversely affected.



11







We are delinquent in our tax filings.



We failed to file federal tax returns for
the fiscal years ended March 31, 2009 through 2012. We are also required to file Franchise Tax Reports in Nevada, but have not
yet filed the required forms. We cannot assure you that we will not incur fines and penalties for failure to file such our federal
tax returns.



Risks associated with acquisitions



As a major component of its business strategy,
the Company expects it may acquire assets, and businesses, and/or technologies relating to or complementary to its business model.
Any acquisitions by the Company would involve risks commonly encountered in acquisitions of companies. These risks would include,
among other things, the following:



| | · | the Company could be exposed to unknown liabilities of the acquired companies;
| | - | ------------------------------------------------------------------------------

| | · | the Company could incur acquisition costs and expenses higher than it anticipated;
| | - | ----------------------------------------------------------------------------------

| | · | fluctuations in the Company's quarterly and annual operating results could occur due to the costs
and expenses of acquiring and integrating new businesses or technologies;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | the Company could experience difficulties and expenses in assimilating the operations and personnel
of the acquired businesses;
| | - | -------------------------------------------------------------------------------------------------------------------------------

| | · | the Company's ongoing business could be disrupted and its management's time and attention diverted;
and
| | - | -------------------------------------------------------------------------------------------------------

| | · | the Company could be unable to integrate successfully.
| | - | ------------------------------------------------------



Liquidity and Working Capital Risks;
Need for Additional Capital to Finance Growth and Capital Requirements



We have had limited working capital and
we are relying upon notes (borrowed funds) to operate. We may seek to raise capital from public or private equity or debt sources
to provide working capital to meet our general and administrative costs until net revenues make the business self-sustaining. We
cannot guarantee that we will be able to raise any such capital on terms acceptable to us or at all. Such financing may be upon
terms that are dilutive or potentially dilutive to our stockholders. If alternative sources of financing are required, but are
insufficient or unavailable, we will be required to modify our growth and operating plans in accordance with the extent of available
funding.



New Business



We are a new business and you should consider
factors which could adversely affect our ability to generate revenues, which include, but are not limited to, maintenance of positive
cash flow, which depends on our ability both to raise capital and to obtain additional financing as required, as well as the level
of sales revenues.



Potential fluctuations in quarterly
operating results



Our quarterly operating results may fluctuate
significantly in the future as a result of a variety of factors, most of which are outside our control, including: the interest
in our products; seasonal trends in purchasing, the amount and timing of capital expenditures and other costs relating to the development
of our products; price competition or pricing changes in the industry; technical difficulties or system downtime; and general economic
conditions. Our quarterly results may also be significantly impacted by the impact of the accounting treatment of acquisitions,
financing transactions or other matters. Particularly at our early stage of development, such accounting treatment can have a material
impact on the results for any quarter. Due to the foregoing factors, among others, it is likely that our operating results will
fall below our expectations or those of investors in some future quarter.



12







Dependence upon Management



Our future performance and success are
dependent upon the efforts and abilities of our management team, directors and key contractors. If we lost the services from key
members of management or other key employees before we could get a qualified replacement, that loss could materially adversely
affect our business. We do not maintain key man life insurance on any of our management.



Lack of Independent Directors



We cannot guarantee that our Board of Directors
will have a majority of independent directors in the future. In the absence of a majority of independent directors, our executive
officers, who are also principal stockholders and directors, could establish policies and enter into transactions without independent
review and approval thereof. This could present the potential for a conflict of interest between the Company and its stockholders
generally and the controlling officers, stockholders, or directors.



Limitation of Liability and Indemnification
of Officers and Directors



Our officers and directors are required
to exercise good faith and high integrity in our management affairs. Our Articles of Incorporation provide, however, that our officers
and directors shall have no liability to our shareholders for losses sustained or liabilities incurred which arise from any transaction
in their respective managerial capacities unless they violated their duty of loyalty, did not act in good faith, engaged in intentional
misconduct or knowingly violated the law, approved an improper dividend or stock repurchase, or derived an improper benefit from
the transaction. Our Articles and By-Laws also provide for the indemnification by us of the officers and directors against any
losses or liabilities they may incur as a result of the manner in which they operate our business or conduct the internal affairs,
provided that in connection with these activities they act in good faith and in a manner that they reasonably believe to be in,
or not opposed to, the best interests of the Company, and their conduct does not constitute gross negligence, misconduct or breach
of fiduciary obligations.



Audit's Opinion Expresses Doubt about
the Company's Ability to Continue as a "Going Concern".



The accompanying consolidated financial
statements have been prepared assuming the Company will continue as a going concern. As discussed in the notes to the consolidated
financial statements, the Company has suffered recurring losses from operations. This raises substantial doubt about its ability
to continue as a going concern. Management's plans in regard to these matters are also described in the notes to the consolidated
financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



Delays in the Introduction of Our
Products



The Company may be subject to regulation
by numerous governmental authorities. Failure to obtain regulatory approvals or delays in obtaining regulatory approvals by the
Company, its collaborators or licensees would adversely affect the marketing of products developed by the Company, as well as hinder
the Company's ability to generate product revenues. Further, there can be no assurance that the Company, its collaborators or licensees
will be able to obtain the necessary regulatory approvals. Although the Company does not anticipate problems satisfying any of
the regulations involved, the Company cannot foresee the possibility of new regulations that could adversely affect the business
of the Company.



13







Dependence on Independent Parties
to Produce our Products



The Company may be dependent upon current
and future collaborations with and among independent parties to research, develop, test, manufacture, sell, or distribute our products.
The Company intends to continue to rely on such collaborative arrangements. Some of the risks and uncertainties related to the
reliance on such collaborations include, but are not limited to:



1) the ability to negotiate acceptable
collaborative arrangements;

2) the fact that future or existing collaborative
arrangements may not be successful or may not result in products that are marketed or sold;

3) such collaborative relationships may
actually act to limit or restrict the Company;

4) collaborative partners are free to pursue
alternative technologies or products either on their own or with others, including the Company's competitors; and

5) the Company's partners may terminate
a collaborative relationship and such termination may require the Company to seek other partners, or expend substantial additional
resources to pursue these activities independently. These efforts may not be successful and may interfere with the Company's ability
to manage, interact and coordinate its timelines and objectives with its strategic partners.



Government Regulation



Our products and technologies and our ongoing
research and development activities are subject to regulation for safety, efficacy and quality by numerous governmental authorities
in the United States and other countries. Depending on the technology, regulatory approvals and certification may be necessary
from the Department of Transportation, Department of Energy, Nuclear Regulatory Commission, Environmental Protection Agency, Department
of Defense, and other federal, state, or local facilities. Failures or delays by the Company or its affiliates or licensees in
obtaining the required regulatory approvals would adversely affect the marketing of products that we develop and our ability to
receive product revenues or royalties.



Environmental Regulations



Our business is governed by numerous laws
and regulations at various levels of government. These laws and regulations govern the operation and maintenance of our facilities,
the discharge of materials into the environment and other environmental protection issues. The laws and regulations may, among
other potential consequences, require that we acquire permits before commencing certain activities, restrict the substances that
can be released into the environment with drilling and production activities, limit or prohibit drilling activities on protected
areas such as wetlands or wilderness areas, require that reclamation measures be taken to prevent pollution from former operations,
require remedial measures to mitigate pollution from former operations, such as plugging abandoned wells and remediation of contaminated
soil and groundwater, and require remedial measures to be taken with respect to property designated as a contaminated site.



Under these laws and regulations, we could
be liable for personal injury, clean-up costs and other environmental and property damages, as well as administrative, civil and
criminal penalties. We do not currently have any insurance coverage for sudden and accidental environmental damages as well as
environmental damage that occurs over time; we do not believe that insurance coverage for the full potential liability of environmental
damages is available at a reasonable cost. Accordingly, we could be liable, or could be required to cease production on properties,
if environmental damage occurs.



14







The costs of complying with environmental
laws and regulations in the future may harm our business. Furthermore, future changes in environmental laws and regulations could
occur that may result in stricter standards and enforcement, larger fines and liability, and increased capital expenditures and
operating costs, any of which could have a material adverse effect on our financial condition or results of operations.



As of the date of this Report, although
the project site in Central City, Kentucky, includes areas formerly designated as wetlands, since the ground has already been developed,
we do not believe that we are going to encroach on any wetlands and therefore do not expect to incur any liability associated with
same.



Limited Market Due To Penny Stock



The Company's stock differs from many stocks,
in that it is a "penny stock." The Securities and Exchange Commission has adopted a number of rules to regulate "penny
stocks." These rules include, but are not limited to, Rules 3a5l-l, 15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6 and 15g-7 under
the Securities and Exchange Act of 1934, as amended. Because our securities probably constitute "penny stock" within
the meaning of the rules, the rules would apply to us and our securities.



The rules may further affect the ability
of owners of our stock to sell their securities in any market that may develop for them. There may be a limited market for penny
stocks, due to the regulatory burdens on broker-dealers. The market among dealers may not be active. Investors in penny stock often
are unable to sell stock back to the dealer that sold them the stock. The mark-ups or commissions charged by the broker-dealers
may be greater than any profit a seller may make. Because of large dealer spreads, investors may be unable to sell the stock immediately
back to the dealer at the same price the dealer sold the stock to the investor. In some cases, the stock may fall quickly in value.
Investors may be unable to reap any profit from any sale of the stock, if they can sell it at all.



Stockholders should be aware that, according
to the Securities and Exchange Commission Release No. 34- 29093, the market for penny stocks has suffered in recent years from
patterns of fraud and abuse. These patterns include:



| | · | Control of the market for the security by one or a few broker- dealers that are often related to
the promoter or issuer;
| | - | ------------------------------------------------------------------------------------------------------------------------

| | · | Manipulation of prices through prearranged matching of purchases and sales and false and misleading
press releases;
| | - | -------------------------------------------------------------------------------------------------------------------

| | · | "Boiler room" practices involving high pressure sales tactics and unrealistic price projections
by inexperienced sales persons;
| | - | -------------------------------------------------------------------------------------------------------------------------------

| | · | Excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and
| | - | ------------------------------------------------------------------------------------------

| | · | The wholesale dumping of the same securities by promoters and broker-dealers after prices have
been manipulated to a desired level, along with the inevitable collapse of those prices with consequent investor losses.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



15







Furthermore, the "penny stock"
designation may adversely affect the development of any public market for the Company's shares of common stock or, if such a market
develops, its continuation. Broker-dealers are required to personally determine whether an investment in "penny stock"
is suitable for customers. Penny stocks are securities (i) with a price of less than five dollars per share; (ii) that are not
traded on a "recognized" national exchange; (iii) whose prices are not quoted on the NASDAQ automated quotation system
(NASDAQ-listed stocks must still meet requirement (i) above); or (iv) of an issuer with net tangible assets less than $2,000,000
(if the issuer has been in continuous operation for at least three years) or $5,000,000 (if in continuous operation for less than
three years), or with average annual revenues of less than $6,000,000 for the last three years. Section 15(g) of the Exchange Act,
and Rule 15g-2 of the Commission require broker-dealers dealing in penny stocks to provide potential investors with a document
disclosing the risks of penny stocks and to obtain a manually signed and dated written receipt of the document before effecting
any transaction in a penny stock for the investor's account. Potential investors in the Company's common stock are urged to obtain
and read such disclosure carefully before purchasing any shares that are deemed to be "penny stock." Rule 15g-9 of the
Commission requires broker-dealers in penny stocks to approve the account of any investor for transactions in such stocks before
selling any penny stock to that investor. This procedure requires the broker-dealer to (i) obtain from the investor information
concerning his or her financial situation, investment experience and investment objectives; (ii) reasonably determine, based on
that information, that transactions in penny stocks are suitable for the investor and that the investor has sufficient knowledge
and experience as to be reasonably capable of evaluating the risks of penny stock transactions; (iii) provide the investor with
a written statement setting forth the basis on which the broker-dealer made the determination in (ii) above; and (iv) receive a
signed and dated copy of such statement from the investor, confirming that it accurately reflects the investor's financial situation,
investment experience and investment objectives. Compliance with these requirements may make it more difficult for the Company's
stockholders to resell their shares to third parties or to otherwise dispose of them.



Potential Inability of Officers to
Devote Sufficient Time to the Operations of the Business



Our officers are not currently being paid
all of their salaries. In some cases, officers are not paid at all. Unless we are able to secure additional funding for operations,
we cannot guarantee that they will be able to continue to devote sufficient time to the operations of the business.



Item 1B. UNRESOLVED STAFF COMMENTS



Not Applicable to a Smaller Reporting Company



Item 2. Description of Property



Effective in
2013, the Company’s mailing address is 277 White Horse Pike, Atco, NJ, 08004, where we sublet office space. We sublet
the space from Drinkwater & Goldstein, LLP, to which one of our directors - Mr. Drinkwater, is a partner. We currently pay
approximately $4,368 per month for this space and related office expenses.



Item 3. LEGAL PROCEEDINGS



As of the date of this filing, there are three legal proceedings
filed against the Company.



| | I. | On September 30, 2010, plaintiff Scott Schrader initiated litigation
in the Commonwealth of Kentucky, Franklin Circuit Court, Case No 10-CI-01548 against defendants: Nuclear Solutions (our former
corporate name), Fuel Frontiers (our wholly owned subsidiary, which was dissolved in September 2012) and other individuals pursuant
to a Stock Purchase Agreement and a Management Agreement, both dated June 12, 2009 by and among the parties. In the lawsuit, plaintiff
alleges a dispute over an investment in Nuclear Solutions and presents claims for 1) Breach of Contract; 2) Negligent/Intentional
Misrepresentations; 3) Fraud and Fraudulent Inducement; 4) Unjust Enrichment; and 5) Breach of Constructive or Resulting Trust.On June 7, 2013, the Court granted Defendants’ motion to dismiss and dismissed the action “without prejudice
based on lack of personal jurisdiction and improper venue (forum non conveniens)."
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



16







| | II. | On July 30, 2012, Schrader & Associates, LLC (“Schrader”)filed a complaint
against Fuel Frontiers, Inc. (“FFI”), one of Company's subsidiaries, in the Commonwealth of Kentucky, Muhlenberg Circuit
Court Division, as Civil Action No. 12-CI-352 to Quiet Title on property acquired by FFI. The action is related to the Stock Purchase
Agreement and Management Agreement, both dated June 12, 2009 (“June 2009 Agreements”), pursuant to which FFI was under
the obligation to acquire certain real property for the construction of a coal-to-diesel facility, and under certain circumstances
Schrader & Associates Defined Benefit Pension Plan (an entity believed to be associated with Schrader) was entitled to obtain
the ownership of the property from FFI. However, the property that is the subject of this litigation is not the site selected
under the June 2009 Agreements. The Company has executed a quitclaim deed relative to the subject property for delivery to plaintiff
and expects that action to resolve this litigation. Additionally, FFI was dissolved in September 2012 and the suit is now progressing
against the Company.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | III. | On May 10, 2013, Global Private Funding filed a civil action, number SC120696 in the Superior Court
of the State of California, County of Los Angeles, West District.
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



Named defendants are Empyrean
West, LLC (“EW”), Jay Carter, individually and as managing partner of EW, David Keller, individually and as CEO of
EW, US Fuel Corporation (“USF”), Harry Bagot, individually and as President/CEO of USF, Stanley Drinkwater, individually
and as Chairman of the Board of USF, Steven Luck, individually and as a Member of the USF Board, William Chady, individually and
as a member of the USF Board, Paul Adams, individually and as an officer of USF, Robert Schwartz, individually and as majority
stockholder of USF, John Fairweather, individually and as Director of USF and Kenneth Faith, individually and as Treasurer of USF.



The complaint alleges a total
of 21 causes of action, 12 of which are directed to US Fuel. The allegations against US Fuel are: 1) Breach of contract; 2) Fraudulent
concealment in violation of Civil Code §1710; 3) Intentional misrepresentation in violation of Civil Code §1710; 4)Unfair
and deceptive practices act; 5) Contractual breach of implied covenant of good faith and fair dealing; 6) Fraud; 7) Negligent misrepresentation
in violation of Civil Code §1572; 8) Breach of non-competition covenant; 9) Civil conspiracy; 10) Breach of contract for failure
of consideration of failure to perform; 11) Breach of confidence; and 12) Declaratory relief.



While US Fuel management has
not completed a comprehensive review and analysis of the litigation, US Fuel intends to vigorously defend against the claims raised
in the complaint as we believe the claims lack merit.



| | ITEM 4. | MINE SAFETY DISCLOSURES.
| | ------- | ------------------------



Not applicable to our operations.



PART II



Item 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES



Our common stock is traded on the OTC Electronic
Bulletin Board under the symbol "USFF." Prior to October 7, 2011, we traded under the symbol, “NSOL." The
following table sets forth the high and low prices of our common stock for each quarter for the two most recently completed fiscal
years, as well as the first quarter of 2013. The quotations set forth below reflect inter-dealer prices, without retail mark-up,
mark-down or commission and may not represent actual transactions.



17







|                                       |  | High |       |  | Low |  
|-------------------------------------- |  | ---- | ----- |  | --- | -
|2011                                   |  |      |       |  |     |  
|First quarter ended March 31, 2011     |  | $    | 0.049 |  |     | $
|Second quarter ended June 30, 2011     |  | $    | 0.035 |  |     | $
|Third quarter ended September 30, 2011 |  | $    | 0.13  |  |     | $
|Fourth quarter ended December 31, 2011 |  | $    | 0.109 |  |     | $
|                                       |  |      |       |  |     |  
|2012                                   |  |      |       |  |     |  
|First quarter ended March 31, 2012     |  | $    | 0.05  |  |     | $
|Second quarter ended June 30, 2012     |  | $    | 0.049 |  |     | $
|Third quarter ended September 30, 2012 |  | $    | 0.11  |  |     | $
|Fourth quarter ended December 31, 2012 |  | $    | 0.11  |  |     | $
|                                       |  |      |       |  |     |  
|2013                                   |  |      |       |  |     |  
|First quarter ended March 31, 2013     |  | $    | 0.075 |  |     | $



Holders





As of December
31, 2010,there were approximately 520 record owners of our common stock; as of July 31, 2013, there were also approximately
695 record owners of our common stock.







Dividends



There are no restrictions imposed on the
Company which limit its ability to declare or pay dividends on its common stock, except for corporate state law limitations. No
cash dividends have been declared or paid to date and none are expected to be paid in the foreseeable future.



Recent Sales of Unregistered Securities



During the past
three years ending with the fiscal year ending December 31, 2010, we effected the following transactions in reliance upon exemptions
from registration under the Securities Act as amended. Unless stated otherwise: (i) each of the persons who received these unregistered
securities had knowledge and experience in financial and business matters which allowed them to evaluate the merits and risk of
the receipt of these securities, and that they were knowledgeable about our operations and financial condition; (ii) no underwriter
participated in, nor did we pay any commissions or fees to any underwriter in connection with the transactions; and, (iii) each
certificate issued for these unregistered securities contained a legend stating that the securities have not been registered under
the Act and setting forth the restrictions on the transferability and the sale of the securities. None of the below transactions
involved a public offering, and unless otherwise noted below, we believe that each transaction was exempt from the registration
requirements of the Securities Act by virtue of Section 4(2) of the Securities Act or Rule 506 of Regulation D promulgated by the
SEC.



During the year
ended December 31, 2008, the Company issued an aggregate of 5,320,440 shares of common stock, valued at $863,888, for consulting
services.



During the year
ended December 31, 2008, the Company issued 1,299,446 shares as payment of expenses accrued at December 31, 2007 in the amount
of $536,000.



On June 10, 2008,
pursuant to an agreement regarding same, the Company issued 5,250,000 shares to IPTH as payment of accrued executive compensation
of $542,987. Of this amount, $523,647 was accrued at December 31, 2007.



18







During the year
ended December 31, 2008, the Company issued a total of 11,887,000 shares of common stock as payment of $1,0005,808 of principal
and interest due to Denise Barbato pursuant to agreements the Company entered into with Ms. Barbato in 2002 and 2004.



During the year
ended December 31, 2009, the Company issued 400,000 shares of common stock as payment of expenses accrued at December 31, 2008
in the amount of $20,000.



On April 5, 2010, the Company issued
1,230,000 shares of common stock to a former officer.



Securities Authorized for Issuance Under Equity Compensation
Plans



The following table summarizes our equity
compensation plan information as of December 31, 2010.  Information is included for equity compensation plans not approved
by our security holders.



|Plan Category                                              |  | Number of Securities  to be issued  upon exercise of  outstanding options,  warrants and rights (a) |            |     | Weighted-average Exercise price of  outstanding options,  warrants, and rights (b) |   |       | Number of Securities  remaining available for  future issuance  under equity  compensation plans  (excluding securities  reflected in column (a) (c) | 
|---------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------- | ---------- | --- | ---------------------------------------------------------------------------------- | - | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | 
|                                                           |  |                                                                                                     |            |     |                                                                                    |   |       |                                                                                                                                                      | 
|Equity Compensation Plans approved by security holders     |  |                                                                                                     | None       |     |                                                                                    |   | None  |                                                                                                                                                      | 
|Equity Compensation Plans not approved by security holders |  |                                                                                                     | 5,500,000  | (1) |                                                                                    | $ | 0.62  |                                                                                                                                                      | 
|                                                           |  |                                                                                                     | 5,000,000  | (2) |                                                                                    | $ | 0.625 |                                                                                                                                                      | 
|                                                           |  |                                                                                                     | 5,000,000  | (3) |                                                                                    | $ | 0.52  |                                                                                                                                                      | 
|Total                                                      |  |                                                                                                     | 15,500,000 |     |                                                                                    |   |       |                                                                                                                                                      | 



(1) On August, 17, 2005, the Company adopted
a Stock Grant Plan which reserved 5,500,000 shares. The Plan was registered on a Registration Statement on Form S-8 filed on November
16, 2004. The Plan is administered by our Board of Directors. Directors, officers, employees, consultants, attorneys, and others
who provide services to the Company are eligible participants. Participants are eligible to be granted warrants, options, common
stock as compensation. During 2007, we issued 1,367,307 shares from this Plan.



(2) On March 7, 2007, the Company adopted
a Stock Grant Plan which reserved 5,000,000 shares. The Plan was registered on a Registration Statement on Form S-8 filed on March
9, 2007. Directors, officers, employees, consultants, attorneys, and others who provide services to the Company are eligible participants.
Participants are eligible to be granted warrants, options, common stock as compensation. During 2007, we issued 5,000,000 shares
from this Plan.



19







(3) On November 28, 2007, the Company adopted
a Stock Grant Plan which reserved 5,000,000 shares. The Plan was registered on a Registration Statement on Form S-8 filed on December
6, 2007. Directors, officers, employees, consultants, attorneys, and others who provide services to the Company are eligible participants.
Participants are eligible to be granted warrants, options, common stock as compensation. During 2007, we issued 470,957 shares
from this Plan leaving a balance of 4,529,043 in the Plan. During 2008, we issued 4,019,886 shares from this Plan leaving a balance
of 513,447 as of December 31, 2008. During 2009, we issued 400,000 shares from this Plan leaving a balance of 113,447 as of December
31, 2009. No shares were issued from this Plan in the fiscal year ending December 31, 2010.



Item 6. SELECTED FINANCIAL DATA



Not Applicable to Smaller Reporting Companies



Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS



FORWARD-LOOKING INFORMATION



This report contains forward-looking statements
regarding our plans, expectations, estimates and beliefs.  Actual results could differ materially from those discussed
in, or implied by, these forward-looking statements.  Forward-looking statements are identified by words such as “believe,”
“anticipate,” “expect,” “intend,” “plan,” “will,” “may,”
and other similar expressions.  In addition, any statements that refer to expectations, projections or other characterizations
of future events or circumstances are forward-looking statements.  We have based these forward-looking statements largely
on our expectations.



Forward-looking statements are subject
to risks and uncertainties, certain of which are beyond our control.  Actual results could differ materially from those
anticipated as a result of the factors described in the “Risk Factors” and detailed in our other Securities and Exchange
Commission filings.



Because of these risks and uncertainties,
the forward-looking events and circumstances discussed in this report or incorporated by reference might not transpire.  Factors
that cause actual results or conditions to differ from those anticipated by these and other forward-looking statements include
those more fully described in the “Risk Factors” section and elsewhere in this report.



Business Overview



During 2010, the Company continued to work
to develop coal-to-liquid facilities. During 2010, John Fairweather, then President & CEO of FFI, worked with two consultants,
Paul Adams and Stephen Luck to further refine the plan originally developed by Mr. Adams and Mr. Luck in 2008. By the summer of
2010, Mr. Adams had developed an advanced draft of a coal-to-liquid project plan and Mr. Luck had identified a potential funding
source for the project described in that plan. For unknown reasons, in September 2010, Mr. Fairweather abandoned that effort broke
contact with both Mr. Adams and Mr. Luck. After the termination of employment of Mr. Fairweather, the Company re-focused on the
development of coal-to-liquid facilities. Development efforts continued in 2011, 2012 and into 2013, with notable events from those
years contained in the Form 10-K for the fiscal years ended December 31, 2011 and December 31, 2012, and the Form 10-Q for the
period ended March 31, 2013, as well as a Form 8-K filed concurrently with this filing. All those filings should be read together
for a comprehensive and current statement of the Company’s business.



20







Plan of Operation



In 2010, the plan of operation was to continue
developing coal-to-liquid facilities. However, the development efforts were limited due to insufficient capital. The Company had
a net loss of $357,933 for 2010 and a net loss of $1,771,817 for 2009.



Plan for the next 12 months



The Company intends to fully engineer the
integration of the coal to gas and gas to liquid technologies in order to develop a permitting package that can be used as the
basis of a permitting application and as a template for additional sites.



Over the next 12 months, we plan on raising
working capital to fund development of these technological areas through private placements of debt or equity, using our common
stock in lieu of cash, and applying for government grants, where appropriate. The implementation of Company's business development
phases will be dependent on successful financing. Financing options may include a combination of debt and equity financing; any
equity financing may result in equity dilution to existing shareholders.



Progress



Progress in the development of our technologies
have been slower than expected due to the lack of personnel and lack of working capital. We anticipate increasing staffing levels
over the next 12 months. We estimate a working capital requirement of at least $500,000 over the next 12 months to maintain operations
at a minimum level.



We believe that the success of our business
will depend, in part, on our ability to attract, retain, and motivate highly qualified sales, technical and management personnel,
and upon the continued service of our senior management and key sales and technical personnel. We cannot assure you that we will
be able to successfully attract, retain, and motivate a sufficient number of qualified personnel to conduct our business in the
future.



Comparison of Results of Operations
for the year ended December 31, 2010 to the year ended December 31, 2009



Results of Operations



REVENUES: The Company reported revenues
of $0 from our existing technology license agreement, for the year ended December 31, 2010 and for the year ended December 31,
2009.



TOTAL COSTS AND EXPENSES: Total costs and
expenses from continuing operations decreased from $1,756,397 for the year ended December 31, 2009 to $356,033 for the year ended
December 31, 2010. The principal reason for this decrease was due to a decrease in operating activities as a result of limited
financial resources.



OPERATING EXPENSES: Operating expenses
from continuing operations decreased from $1,756,397 for the year ended December 31, 2009 to $356,033 for the year ended December
31, 2010. This decrease was primarily due to decreased business development activities, as stated above. Depreciation expense increased
for the year 2010 versus the year 2009, increasing from $2,207 for the year ended December 31, 2009 to $3,575, for the year ended
December 31, 2010. This increase is due to the second year depreciation of office equipment.



21







INTEREST EXPENSE: Interest expense decreased
from $4,975 for the year ended December 31, 2009 to $1,900 for the year ended December 31, 2010. This decrease is due primarily
to a reduction in debt incurred to finance company operations.



SALES, GENERAL AND ADMINISTRATIVE EXPENSES



Expenses decreased by $1,580,346 during
the year ended December 31, 2010 to a total amount of $327,958 as compared to $1,908,304 for the year ended December 31, 2009.
The decrease was due to limited amount of activity.



NET LOSS: The Company incurred a net loss
of $357,933 for the year ended December 31, 2010, compared with a net loss of $1,771,817 for the year ended December 31, 2009,
which reflects a year-to-year decrease in the amount of loss for the period of $1,413,884. The principal reason for this decrease
was due to a decrease in operating activities as a result of limited financial resources.



LIQUIDITY AND
CAPITAL RESOURCES



As of December 31, 2010, we had a working
capital deficit of $6,455,336 which compares to a working capital deficit of $6,350,978 as of December 31, 2009. As a result of
our operating losses for the year ended December 31, 2010, we generated a cash flow deficit of $231,576 from operating activities.
Cash flows used in investing activities was $0 during the period. Cash flows provided by financing activities were $230,000 which
primarily consisted of proceeds from a common stock subscription.



Auditors' opinion expresses doubt about
the Company's ability to continue as a going concern. The independent auditors report on the company's December 31, 2010 financial
statements included in this Report states that the Company's recurring losses raise substantial doubts about the Company's ability
to continue as a going concern.



We believe that anticipated cash flows
from operations will be insufficient to satisfy our ongoing capital requirements. Our ability to meet our obligations and continue
to operate as a going concern is highly dependent on our ability to obtain new loans and/or successfully enter into settlement
agreements with our vendors and/or former and current employees. We cannot predict whether this additional financing will be in
the form of equity or debt, or be in another form. We may not be able to obtain the necessary additional capital on a timely basis,
on acceptable terms, or at all. In any of these events, we may be unable to implement our current plans which circumstances would
have a material adverse effect on our business, prospects,
financial condition and results of operations.



Item
7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK



Not applicable for a smaller reporting company.



22







Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



INDEX TO FINANCIAL STATEMENTS





|                                                                                                | Page No.  
|----------------------------------------------------------------------------------------------- | ----------
|                                                                                                |           
|Report of Independent Registered Public Accounting Firms                                        | F-2 to F-3
|                                                                                                |           
|Consolidated Balance Sheets at December 31, 2010 and 2009                                       | F-4       
|                                                                                                |           
|Consolidated Statements of Losses for the years ended December 31, 2010, and 2009               | F-5       
|                                                                                                |           
|Consolidated Statements of Deficiency in Equity for the years ended December 31, 2010, and 2009 | F-6       
|                                                                                                |           
|Consolidated Statements of Cash Flows for the years ended December 31, 2010, and 2009           | F-7       
|                                                                                                |           
|Notes to Consolidated Financial Statements                                                      | F8 to F17 



b) Financial statement schedules



Not applicable.



F-1







REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM



To the Board of Directors

US Fuel Corporation

Atco, New Jersey



We have audited the
accompanying consolidated balance sheet of US Fuel Corporation and Subsidiaries (formerly Nuclear Solutions, Inc. and Subsidiaries
or the "Company"), as of December 31, 2010 and the related consolidated statements of losses, deficiency in equity,
and cash flows for year the ended. These financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based upon our audit.



We conducted our audit
in accordance with standards of the Public Company Accounting Oversight Board (United States of America). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatements. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial
statement presentation. We believe our audit provide a reasonable basis for our opinion.



In our opinion, the
consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial
position of the Company as of December 31, 2010, and the results of its operations and its cash flows for the year then ended,
inconformity with accounting principles generally accepted in the United States of America.



The accompanying consolidated financial
statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 3 to the consolidated
financial statements, the Company has suffered recurring
losses from operations. This raises substantial doubt about its ability to continue as a going concern. Management's plans in regard
to these matters are also described in Note 3. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.





|/s/  Ligget, Vogt & Webb, P.A | 
|----------------------------- | 
|New York, NY                  | 
|August 2, 2013                | 





F-2







REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM



To the Board of Directors

U.S. Fuel Corporation

(formerly Nuclear Solutions, Inc.)



We have audited the accompanying consolidated
balance sheet of U.S. Fuel Corporation (formerly Nuclear Solutions, Inc. and subsidiary, the "Company"), as of December
31, 2009 and the related consolidated statements of losses, deficiency in stockholders' equity, and cash flows for the year in
the period ended December 31, 2009. These financial statements are the responsibility of the company's management. Our responsibility
is to express an opinion on these financial statements based upon our audit.



We conducted our audit in accordance with
standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. The
Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control
over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management as well as evaluating the overall financial statement presentation. We believe our audit provides
a reasonable basis for our opinion.



In our opinion, the consolidated
financial statements referred to above present fairly, in all material respects, the consolidated financial position of the
Company as of December 31, 2009, and the results of its operations and its cash flows for the year in the period ended
December 31, 2009, in conformity with accounting principles generally accepted in the United States of America.



The accompanying consolidated financial
statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 3 to the consolidated
financial statements, the Company has suffered recurring losses from operations. This raises substantial doubt about its ability
to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.



| | /s/ RBSM  LLP
| | -------------



New York, New York

April 15, 2010



F-3







US FUEL CORPORATION AND SUBSIDIARIES

(FORMERLY NUCLEAR SOLUTIONS, INC AND SUBSIDIARIES)

CONSOLIDATED BALANCE SHEETS



|                                                                                                                                                                  |  | December 31, |             |   | December 31, |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ----------- | - | ------------ | -
|                                                                                                                                                                  |  | 2010         |             |   | 2009         |  
|ASSETS                                                                                                                                                            |  |              |             |   |              |  
|Current assets:                                                                                                                                                   |  |              |             |   |              |  
|Cash                                                                                                                                                              |  | $            | -           |   |              | $
|Notes receivables                                                                                                                                                 |  |              | -           |   |              |  
|Accrued interest                                                                                                                                                  |  |              | -           |   |              |  
|Deposit                                                                                                                                                           |  |              | 1,800       |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Total current assets                                                                                                                                              |  |              | 1,800       |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Property and equipment, net of accumulated depreciation of  $9,273 and $5,698 as of December 31, 2010 and 2009 , respectively                                     |  |              | 104,328     |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Total assets                                                                                                                                                      |  | $            | 106,128     |   |              | $
|                                                                                                                                                                  |  |              |             |   |              |  
|LIABILITIES AND DEFICIENCY IN EQUITY                                                                                                                              |  |              |             |   |              |  
|Current liabilities:                                                                                                                                              |  |              |             |   |              |  
|Accounts payable and accrued expenses                                                                                                                             |  | $            | 6,418,136   |   |              | $
|Notes payable - related parties                                                                                                                                   |  |              | -           |   |              |  
|Convertible notes payable                                                                                                                                         |  |              | 39,000      |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Total current liabilities                                                                                                                                         |  |              | 6,457,136   |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Common stock subscription liability                                                                                                                               |  |              | 245,000     |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Total liabilities                                                                                                                                                 |  |              | 6,702,136   |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Commitments and contingencies                                                                                                                                     |  |              |             |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Deficiency in equity:                                                                                                                                             |  |              |             |   |              |  
|Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding                                                                |  |              | -           |   |              |  
|Common stock, $0.0001 par value; 100,000,000 shares authorized,  99,120,981 and 97,890,981 issued and outstanding, as of December 31, 2010 and, 2009 respectively |  |              | 9,912       |   |              |  
|Additional paid-in capital                                                                                                                                        |  |              | 19,969,387  |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Accumulated deficit                                                                                                                                               |  |              | (27,078,463 | ) |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Total deficiency in stockholders’ equity                                                                                                                          |  |              | (7,099,164  | ) |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Noncontrolling Interest                                                                                                                                           |  |              | 503,156     |   |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Total deficiency in equity                                                                                                                                        |  |              | (6,596,008  | ) |              |  
|                                                                                                                                                                  |  |              |             |   |              |  
|Total liabilities and deficiency in equity                                                                                                                        |  | $            | 106,128     |   |              | $



The accompanying notes are an integral part of
the consolidated financial statements.



F-4













US FUEL CORPORATION AND SUBSIDIARIES

(FORMERLY NUCLEAR SOLUTIONS, INC AND SUBSIDIARIES)

CONSOLIDATED STATEMENTS OF LOSSES



|                                                               |  | For the Years Ended December 31, |           
|-------------------------------------------------------------- |  | -------------------------------- | ----------
|                                                               |  | 2010                             |           
|Revenue                                                        |  | $                                | -         
|Operating  Expenses:                                           |  |                                  |           
|General and administrative expenses                            |  |                                  | 327,958   
|Depreciation and amortization                                  |  |                                  | 3,575     
|Payments received pursuant to collaborative arrangement        |  |                                  | -         
|Bad debt                                                       |  |                                  | 24,500    
|Total operating expenses                                       |  |                                  | 356,033   
|                                                               |  |                                  |           
|(Loss) from operations                                         |  |                                  | (356,033  
|                                                               |  |                                  |           
|Other Income (expense)                                         |  |                                  |           
|Interest expense                                               |  |                                  | (1,900    
|Interest Income                                                |  |                                  | -         
|Change in fair value of derivative liability                   |  |                                  | -         
|Loss before provision for income taxes                         |  |                                  | (357,933  
|                                                               |  |                                  |           
|Provision for income taxes                                     |  |                                  | -         
|Net loss                                                       |  |                                  | (357,933  
|                                                               |  |                                  |           
|Net (Loss) attributable to the noncontrolling interest         |  |                                  | (9,263    
|                                                               |  |                                  |           
|Net (loss) attributable to US Fuel Corporation                 |  |                                  |           
|common stockholders                                            |  | $                                | (348,670  
|                                                               |  |                                  |           
|Basic and diluted loss per share                               |  | $                                | (0.00     
|                                                               |  |                                  |           
|Weighted average number of common shares out basic and diluted |  |                                  | 98,804,214



The accompanying notes are an integral part of the consolidated
financial statements.



F-5







US FUEL CORPORATION AND SUBSIDIARIES

(FORMERLY NUCLEAR SOLUTIONS, INC AND SUBSIDIARIES)

CONSOLIDATED STATEMENTS OF DEFICIENCY
IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2010 AND
2009



|                                                     |  | Common Stock Shares Stock |            |  | Common 
Stock 
Amount |   |       | Additional Amount Paid in Capital |  |   | Deferred Equity Based Expense |  |  | Accumulated Deficit |          |   | Non- Controlling Interest |   |             | Total Deficiency in Stockholders Equity' | 
|---------------------------------------------------- |  | ------------------------- | ---------- |  | --------------------- | - | ----- | --------------------------------- |  | - | ----------------------------- |  |  | ------------------- | -------- | - | ------------------------- | - | ----------- | ---------------------------------------- | 
|Balance January 1, 2009                              |  |                           | 97,490,981 |  |                       | $ | 9,749 |                                   |  | $ | 19,931,944                    |  |  | $                   | (437,698 | ) |                           | $ | (24,975,557 | )                                        | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Shares issued for services                           |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     | -        |   |                           |   | -           |                                          | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Shares issued for accrued expenses                   |  |                           | 400,000    |  |                       |   | 40    |                                   |  |   | 19,960                        |  |  |                     | -        |   |                           |   | -           |                                          | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Deferred Compensation                                |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     | (150,000 | ) |                           |   | -           |                                          | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Amortization of Deferred Compensation                |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     | 587,698  |   |                           |   | -           |                                          | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Sale of Subsidiary Shares to Noncontrolling Interest |  |                           | -          |  |                       |   | -     |                                   |  |   |                               |  |  |                     | -        |   |                           |   | -           |                                          | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Reclassify derivative liability                      |  |                           | -          |  |                       |   | -     |                                   |  |   | 12,606                        |  |  |                     | -        |   |                           |   | -           |                                          | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Net loss                                             |  |                           | -          |  |                       |   | -     |                                   |  |   | -                             |  |  |                     | -        |   |                           |   | (1,754,236  | )                                        | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Balance December 31, 2009                            |  |                           | 97,890,981 |  |                       | $ | 9,789 |                                   |  | $ | 19,964,510                    |  |  | $                   | -        |   |                           | $ | (26,729,793 | )                                        | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Shares issued for expenses                           |  |                           | 1,230,000  |  |                       | $ | 123   |                                   |  |   | 4,877                         |  |  |                     |          |   |                           |   | -           |                                          | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Net loss                                             |  |                           | -          |  |                       |   | -     |                                   |  |   | -                             |  |  |                     | -        |   |                           |   | (348,670    | )                                        | 
|                                                     |  |                           |            |  |                       |   |       |                                   |  |   |                               |  |  |                     |          |   |                           |   |             |                                          | 
|Balance December 31, 2010                            |  |                           | 99,120,981 |  |                       | $ | 9,912 |                                   |  | $ | 19,969,387                    |  |  | $                   | -        |   |                           | $ | (27,098,463 | )                                        | 



The accompanying notes are an integral part of the consolidated
financial statements.



F-6







US FUEL CORPORATION AND SUBSIDIARIES

(FORMERLY NUCLEAR SOLUTIONS, INC AND SUBSIDIARIES)

CONSOLIDATED STATEMENT OF CASH FLOWS





|                                                                                               |  | For the Years Ended December 31, |         
|---------------------------------------------------------------------------------------------- |  | -------------------------------- | --------
|                                                                                               |  | 2010                             |         
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                          |  |                                  |         
|Net loss                                                                                       |  | $                                | (357,933
|Adjustments to reconcile net loss to net cash used in operating activities                     |  |                                  |         
|Bad debt                                                                                       |  |                                  | 24,500  
|Depreciation and amortization                                                                  |  |                                  | 3,575   
|Stock based compensation                                                                       |  |                                  | 5,000   
|Amortization of debt discount - beneficial conversion feature of convertible note and warrants |  |                                  | -       
|Change in fair value of derivative liability                                                   |  |                                  | -       
|Amortization of deferred compensation                                                          |  |                                  | -       
|Changes in operating assets and liabilities:                                                   |  |                                  |         
|Accounts receivable                                                                            |  |                                  |         
|Prepaid expenses                                                                               |  |                                  | -       
|Other Assets                                                                                   |  |                                  | -       
|Accounts payable and accrued expenses                                                          |  |                                  | 93,282  
|Advance payments received                                                                      |  |                                  | -       
|                                                                                               |  |                                  |         
|Net cash used in operating activities                                                          |  |                                  | (231,576
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                          |  |                                  |         
|Purchases of property and equipment                                                            |  |                                  | -       
|                                                                                               |  |                                  |         
|Net cash (used) in investing activities                                                        |  |                                  | -       
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                          |  |                                  |         
|Proceeds from common stock subscription                                                        |  |                                  | 245,000 
|Proceeds from sale of subsidiary shares                                                        |  |                                  | -       
|Proceeds from issuance of common stock                                                         |  |                                  |         
|(Repayments) proceeds from issuance of notes and loans                                         |  |                                  | (15,000 
|Payments on Loans                                                                              |  |                                  | -       
|                                                                                               |  |                                  |         
|Net cash provided by financing activities                                                      |  |                                  | 230,000 
|                                                                                               |  |                                  |         
|Net  increase (decrease) in cash                                                               |  |                                  | (1,576  
|                                                                                               |  |                                  |         
|Cash, beginning of period                                                                      |  |                                  | 1,576   
|                                                                                               |  |                                  |         
|Cash, end of period                                                                            |  | $                                | -       
|                                                                                               |  |                                  |         
|Supplemental disclosures:                                                                      |  |                                  |         
|Cash paid for:                                                                                 |  |                                  |         
|Interest                                                                                       |  | $                                | -       
|Income taxes                                                                                   |  | $                                | -       
|                                                                                               |  |                                  |         
|Non-cash investing and financial activities:                                                   |  |                                  |         
|Amortization of debt discount - beneficial conversion feature of                               |  |                                  |         
|convertible note and warrants                                                                  |  | $                                | -       
|Reclassification of derivative liability to equity upon settlement                             |  | $                                | -       
|Payment of accrued expenses with common stock                                                  |  | $                                | -       



The accompanying notes are an integral part of the consolidated
financial statements.



F-7







U.S. FUEL CORPORATION

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2010 and 2009



NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS



US Fuel Corporation (the "Company")
was organized on February 27, 1997 under the laws of the State of Nevada, as Stock Watch Man, Inc. On September 12, 2001, the Company
amended its Articles of Incorporation to change its name to Nuclear Solutions, Inc. (“NSOL”) to ensure the corporate
name properly reflected the new corporate business focus.



On September 2, 2005, NSOL formed a wholly
owned subsidiary, Fuel Frontiers Inc. (“FFI”), to pursue alternative fuel technology and projects.



On July 31, 2006 the Company formed a wholly
owned subsidiary, Liquidyne Fuels, which has had no activity.



In 2008, the Nuclear Solutions Board of
Directors elected to focus the Company exclusively on the production of synthetic fuels through the FFI subsidiary. Activities
related to nuclear waste remediation were suspended.



On June 10, 2011, the Company name was
changed from Nuclear Solutions to US Fuel Corporation, with a singular focus to design, build, own and operate coal-to-liquid (“CTL”)
facilities.



Seeing no further need for the specific
subsidiary, on September 12, 2012, FFI was dissolved.



The consolidated financial statements include
the accounts of the Company and its subsidiaries. All significant intercompany transactions and balances have been eliminated in
the consolidated financial statement.



Business



The business of US Fuel Corporation is
to acquire and develop the intellectual property necessary to support the construction of multiple, scalable facilities capable
of producing alternative fuels, with a primary feedstock of coal. The current project plan involves engineering a unique combination
of technologies as the core of a scalable process to support multiple production facilities.



NOTE 2 - ACCOUNTING POLICIES AND PROCEDURES



Revenue Recognition



Revenues are recognized in the period that
services are provided. For revenue from product sales, the Company recognizes revenue in accordance with Financial Accounting Standards
Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605 “Revenue Recognition”. ASC
605 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists;
(2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectibility is reasonably assured. Determination
of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered
and the collectibility of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and
other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which
the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine
that the product has been delivered or no refund will be required. Payments received in advance are deferred.



F-8







Collaborative Arrangement



In 2007, the Company, through its subsidiary
FFI, entered into a collaborative arrangement with Kentucky Fuel Associates, Inc. (“KFA”) for the development of coal-based
gas-to-liquid (“CTL”) fuel production facilities in the State of Kentucky. KFA has agreed to provide an initial funding
of $2,000,000 per site to be applied by FFI towards any and all costs and expenses incurred in the ordinary course of business
for the development, construction and arranging of financing to closure including without limitation the following costs: engineering,
procurement, administrative, development management, financing, legal, operations and maintenance costs for each said fuel production
facility. In consideration for KFA’s initial minimum funding contribution, KFA will receive 7% of the annual net pre-tax
income of each jointly developed CTL diesel fuel facility and 2.5% equity interest in the first CTL diesel fuel facility developed
by FFI and KFA. Additionally, KFA will have the exclusive right to develop CTL diesel fuel facilities with FFI in the state of
Kentucky and a conditional first right of refusal to develop CTL diesel fuel facilities in the remainder of the United States.



We are accounting for this agreement pursuant
to ASC Topic 808“Collaborative Arrangements”. During the years ended December 31, 2010 and 2009, we reported
$0 and $115,114, respectively, as payments received pursuant to collaborative agreements. The unexpended balance of payments received
of $0 and $0 at December 31, 2010 and 2009, respectively, is reported as a current liability as advance payments received.



KFA dissolved in 2012 and our contract
with them is no longer in force. Accordingly, we no longer have any obligations to pay KFA and therefore any amounts previously
set aside for KFA shall instead be retained by the Company.



Noncontrolling Interest



As a result of adopting ASC 810-10 Consolidations – Variable
Interest Entities, we present non-controlling interests as a component of equity on our Consolidated Balance Sheets and Consolidated
Statement of Deficiency in Equity.



Use of Estimates



The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those
estimates.



Concentrations of Credit Risk



Financial instruments and related items which potentially subject
the Company to concentrations of credit risk consist primarily of cash. The Company places its cash and temporary cash investments
with credit quality institutions and has not experienced any losses in its accounts.



Property and Equipment



The cost of furniture and equipment is
depreciated over the estimated useful life of the assets utilizing the straight-line method of depreciation based on estimated
useful lives of five years. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are
removed and any resulting gain or loss is recognized.



F-9







Intangible and Long-lived Assets



The Company follows ASC 360,“Property
Plant and Equipment” , which establishes a “primary asset” approach to determine the cash flow estimation
period for a group of assets and liabilities that represents the unit of accounting for a long lived asset to be held and used.
 Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount of an asset may not be recoverable.  The carrying amount of a long-lived asset is not recoverable if it
exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Long-lived
assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.



Income Taxes



The Company utilizes ASC 740“Income
Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized
for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting
amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are
expected to affect taxable income.



Stock Based Compensation



The Company accounts for its stock based
compensation under ASC 718 “Compensation – Stock Compensation” which was adopted in 2006, using the fair value
based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized
over the service period, which is usually the vesting period.  This guidance establishes standards for the accounting
for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which
an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments
or that may be settled by the issuance of those equity instruments.



Loss Per Share



The Company utilizes ASC 260, “Earnings
Per Share” for calculating the basic and diluted loss per share.  The assumed exercise of common stock equivalents was
not utilized since the effect would be anti-dilutive.



Fair value of financial instruments



The carrying amounts of financial instruments, which include
accounts payable, accrued expenses and debt obligations approximate their fair values due to their short--£term nature and/or variable
interest rates. The Company’s debt obligations bear interest at rates which approximate prevailing market rates for instruments
with similar characteristics and, accordingly, the carrying values for these instruments approximate fair value. As of December
31, 2010 and 2009, the Company did not have any financial instruments that are required to be measured on a recurring basis.



The Company adopted new accounting guidance
pursuant to ASC 820 which established a framework for measuring fair value and expands disclosure about fair value measurements.
The Company did not elect fair value accounting for any assets and liabilities allowed by previous guidance. Effective January
1, 2009, the Company adopted the provisions accounting guidance that relate to non-financial assets and liabilities that are not
required or permitted to be recognized or disclosed at fair value on a recurring basis. Effective April 1, 2009, the Company adopted
new accounting guidance which provides additional guidance for estimating fair value in accordance with ASC 820, when the volume
and level of activity for the asset or liability have significantly decreased. The adoptions of the provisions of ASC 820 did not
have a material impact on our financial position or results of operations.



F-10







ASC 820 defines fair value as the amount
that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes
a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. ASC 820 describes the following three levels of inputs that may be used:



 ̈        
Level 1   Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted
assets or liabilities;

 ̈        
Level 2   Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly,
for substantially the full term of the asset or liability;

 ̈        
Level 3   Prices or valuation techniques that require inputs that are both significant to the fair value measurement
and unobservable (supported by little or no market activity).



As of December 31, 2010 and 2009, the Company
did not have any cash equivalents, therefore there were no assets measured at fair value. The Company’s conversion option
liability was valued using pricing models and the Company generally uses similar models to value similar instruments. Where possible,
the Company verifies the values produced by its pricing models to market prices. Valuation models require a variety of inputs,
including contractual terms, market prices, yield curves, credit spreads, measures of volatility, and correlations of such inputs.
These financial liabilities do not trade in liquid markets, and as such, model inputs cannot generally be verified and do involve
significant management judgment. Such instruments are typically classified within Level 3 of the fair value hierarchy.



The table below sets forth a summary of
changes in the fair value of the Company’s Level 3 financial liabilities (detachable warrants and conversion option liabilities)
for the years ended December 31, 2010 and 2009.



|                                                  |  | 2010 |   |  | 2009 |  
|------------------------------------------------- |  | ---- | - |  | ---- | -
|Balance at beginning of year                      |  | $    | - |  |      | $
|Additions to derivative instruments               |  |      | - |  |      |  
|Change in fair value of conversion option         |  |      | — |  |      |  
|Reclassification to equity upon repayment of debt |  |      | - |  |      |  
|                                                  |  |      |   |  |      |  
|Balance at end of year                            |  | $    | - |  |      | $



The total amount of the changes in fair
value for the period was included in net loss as a result of changes in the Company’s stock price during 2010 and 2009.



New Accounting Pronouncements



Management does not believe that any recently
issued, but not yet effective, accounting standards if currently
adopted would have a material effect on the accompanying consolidated financial statements.



F-11







NOTE 3 - GOING CONCERN



The accompanying consolidated financial
statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities
and commitments in the normal course of business. As reflected in the accompanying consolidated financial statements, the Company
has a net loss of $357,933 and $1,771,817 during the years ended December 31, 2010 and 2009, respectively and a working capital
deficiency of $6,455,366 and a deficiency in equity of $6,596,008 as of December 31, 2010. These factors raise substantial doubt
about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the
Company's ability to raise additional funds and implement its business plan. The accompanying consolidated financial statements
do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.



The Company is actively pursuing additional
equity financing through discussions with investment bankers and private investors. There can be no assurance the Company will
be successful in its effort to secure additional equity financing. If operations and cash flows continue to improve through these
efforts, management believes that the Company can continue to operate. However, no assurance can be given that management's actions
will result in profitable operations or the resolution of its liquidity problems.



NOTE 4 – NOTES RECEIVABLE



During 2009, the Company advanced an aggregate of $24,000 to
KFA pursuant to promissory notes bearing interest at 5% and maturing January 22, 2010. Note was deemed uncollectable in 2010.



NOTE 5 --
PROPERTY AND EQUIPMENT



Property and equipment as of December 31, 2010 and 2009 consists
of the following:



|                               |  | 2010 |         |   | 2009 |  
|------------------------------ |  | ---- | ------- | - | ---- | -
|Land                           |  | $    | 95,726  |   |      | $
|Fixtures and equipment         |  |      | 17,875  |   |      |  
|                               |  |      | 113,601 |   |      |  
|Less: accumulated depreciation |  |      | (9,273  | ) |      |  
|                               |  |      |         |   |      |  
|Net property and equipment     |  | $    | 104,328 |   |      | $



During 2009, the Company purchased a parcel of land for $95,726
to be utilized in the CTL project. Depreciation expense totaled $3,575 and$ 2,207 for the years ended December 31, 2010 and 2009,
respectively.



F-12







NOTE 6 - CONVERTIBLE DEBT



Notes payable at December 31, 2010 and 2009:



|                                                                                                                             |  | December 31, |         |   | December 31, |  
|---------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ------- | - | ------------ | -
|                                                                                                                             |  | 2010         |         |   | 2009         |  
|Global Atomic Inc. demand note payable to related party at 10% per year, convertible into common stock at $1.00 per share    |  | $            | 4,000   |   |              | $
|International Fission demand note payable to related party at 10% per year, convertible into common stock at $1.00 per share |  |              | 15,000  |   |              |  
|Jackie Brown, demand note payable to related party, non -interest bearing, convertible into common stock at $1.00 per share  |  |              | 20,000  |   |              |  
|Total notes payable                                                                                                          |  |              | 39,000  |   |              |  
|Less: current portion                                                                                                        |  |              | (39,000 | ) |              |  
|Balance notes payable (long term portion)                                                                                    |  | $            | —       |   |              | $



During 2009, we repaid two convertible notes aggregating $21,444.
As a result, the fair value of the derivative liability associated with the conversion feature of these notes on the date of repayment,
aggregating $12,606, was reclassified to additional paid-in capital.



For the years ended December 31, 2009, the
Company reflected a charge of $10,947 representing the change in the value of our embedded conversion options during the periods.



NOTE 7 – RELATED PARTY TRANSACTION



On December 3, 2009, the Company executed a promissory note
in the amount of $15,000. The note bears no interest and was due on April 3, 2010. The note was repaid on March 11, 2010.



During the year ended 2010, the Company incurred rent and administrative
expenses payable to a related party totaling $40,950.



NOTE 8 – STOCKHOLDER'S EQUITY



The Company is authorized to issue 100,000,000 shares of common
stock with $0.0001 par value per share. As of December 31, 2010 and 2009, the Company has issued and outstanding 99,120,981 and
97,890,981 shares of common stock, respectively.



During the year ended December 31, 2009, the Company issued
400,000 shares of common stock as payment of expenses accrued as of December 31, 2008 in the amount of $20,000.



On April 5, 2010, the Company issued 1,230,000 shares of common
stock to a former officer.



During the year ended December 31, 2010, the Company
received $245,000 or a subscription liability from  G & A Capital Development LLC.



NOTE 9 – NONCONTROLLING INTEREST



The Company initially owned 100% of the
issued and outstanding common stock of its subsidiary, FFI, which was represented by 30,000,000 shares. On June 12, 2009, the Company
entered into a Stock Purchase Agreement and sold 10%, or 3,000,000 FFI common shares (the “Shares”) to Schrader &
Associates Defined Benefit Pension Plan (“Schrader”) for the sum of $350,000.



Schrader granted the Company the first
right of refusal to match or exceed any third party bona fide offer to purchase the Shares until June 12, 2014.



Additionally, on June 12, 2009, in consideration
of $5,000, the Company granted Schrader an option to purchase an additional 10% of FFI for the sum of $350,000.  The option
expired on September 12, 2009. On June 30, 2009, Schrader partially exercised the option and purchased 1,500,000 common shares
of FFI, which represented 5.0% percent of the issued and outstanding common stock of FFI on such date, for proceeds of $175,000.



F-13







The investment by Schrader in FFI is recorded
as a noncontrolling interest in the financial statements and is summarized as follows as of December 31, 2010 and 2009:



|Sale of FFI shares           |  | $ | 525,000 |  
|---------------------------- |  | - | ------- | -
|Sale of option               |  |   | 5,000   |  
|Allocated loss 2009          |  |   | (17,581 | )
|Balance at December 31, 2009 |  |   | 512,419 |  
|2010 (loss)                  |  |   | (9,263  | )
|Balance at December 31, 2010 |  | $ | 503,156 |  



Management Agreement



In conjunction with the sale of its partial
interest in FFI on June 12, 2009, the Company, FFI and Schrader entered into a Management Agreement, (the “Agreement”). 
The Agreement states that the Company will use the proceeds received from the sale of the Shares according to the Schedule attached
to the Agreement.   Additionally, the Company agreed to nominate and appoint, and vote into office one person named by
Schrader to be a member of FFI's board of directors for a 12-month term.



FFI, upon receipt of funds from the Company’s
use of proceeds schedule, has agreed to purchase certain real property located in Muhlenberg, Kentucky (the “Muhlenberg Property”)
for the proposed construction of a Coal-to-Liquids (“CTL”) plant for approximately $150,000.  FFI has agreed to
take title to the Muhlenberg Property in such a manner so that the property ownership would automatically transfer to Schrader
in the event FFI were to file a petition in Bankruptcy Court, wind-up or liquidate.



Additionally, if FFI were to abandon its
pursuit of a CTL plant on the Muhlenberg Property because of FFI’s inability to obtain all appropriate approvals and permits
required for a CTL plant, then FFI would sell the Muhlenberg Property and use the net proceeds to acquire another property for
a CTL plant according to the same type of acquisition and title structure.



If FFI were able to secure an off-take
agreement or fuel purchase agreement for fuels from its proposed CTL Plant, that would permit FFI to secure project financing,
or if FFI were to secure project financing using the Muhlenberg or similar property as collateral, the Schrader would quit claim
the future interest in and to the property to FFI.



NOTE 10 - ACCRUED EXECUTIVE COMPENSATION



As of December 31, 2010 and 2009, the Company owed former and
current employees approximately $1,284,154 and $1,221,071, respectively.



The Company had an Employment Agreement
with Paul M. Brown, its former President, whereby the Company was to pay Mr. Brown an annual base salary of $250,000. Mr. Brown
passed away in April 2002. For the year ended December 31, 2002, the amount of salary accrued until Mr. Brown's death was $142,667.
Such amount has not been paid to Mr. Brown's estate and remains a liability on the Company's books.



On September 13, 2001, the Company hired
Patrick Herda as the Vice President of Business Development. Mr. Herda was the President and CEO of the Company from September
2001 until October 2009. Mr. Herda's salary was $110,000 for the year ended December 1, 2006, and $55,000 for the year ended December
31, 2007. The Company was unable to pay Mr. Herda his full salary and these unpaid sums have been accrued. On January 10, 2006,
Mr. Herda entered into a 3-way agreement whereby he irrevocably assigned deferred compensation totaling $542,987 to I.P.
Technology Holding, Inc.(IPTH), a New Jersey corporation with whom we had a licensing agreement,in exchange for a guarantee
to receive a minimum of $80,000 in cash salary from the Company for the 2006 fiscal year. On June 10, 2008, pursuant to the January
10, 2006 agreement, the Company issued 5,250,000 shares to IPTH valued at $542,987. As of December 31, 2010 and 2009, the amount
accrued was $161,376 and $171,376, respectively.



F-14







On January 23, 2002, the Company hired
John Dempsey as the Vice President at an annual base salary of $120,000. Mr. Dempsey resigned effective September 5, 2005. The
Company has been unable to pay Mr. Dempsey's full salary in past years and these unpaid sums have been accrued. As of December
31, 2010, the amount accrued was $328,799 and at Mr. Dempsey's discretion will be paid back either in cash or common stock at a
price of $1 per share.



Kenneth Faith, the Company’s Chief
Financial Officer from 2007 to 2011, did not receive a salary during the fiscal year ended December 31, 2007.  The board
of directors approved an annual base salary of $225,000 commencing March 1, 2008. The Company was never able to pay Mr. Faith's
full salary; it ultimately accrued approximately $455,500 in owed compensation, but Mr. Faith has since settled this debt through
the G & A Capital Agreement and the Company no longer owes any amounts to Mr. Faith; therefore, therefore such debt is no longer
reflected on the Company's books.



John Powers, an independent director of
the Company from June 2002 to October 2009, did not receive a salary during the fiscal year ended December 31, 2007.  The
board of directors approved giving Mr. Powers $26,250 in directors compensation commencing March 1, 2008 and G & A Capital
paid such amounts through its agreement with the Company.



NOTE 11 - COMMITMENTS AND CONTINGENCIES



On November 3, 2005, FFI entered into a
fifteen-year land lease with Venture III Associates, renewable for up to 90 years, for an approximate six-acre site in Toms River,
New Jersey to build a proposed 52 million gallon waste-to-ethanol production facility in exchange for 1,000,000 shares of FFI common
stock. The lease initially required FFI to pay Venture III $240,000 dollars annually in equal monthly installments, plus three
(3%) percent of the net operating profit of the waste-to-ethanol facility when the facility begins operations; Venture III agreed
to defer receipt of the 1,000,000 shares of FFI common stock until groundbreaking occurred for the waste to fuel facility on said
property. Toms River ultimately prohibited us from building the facility on the site, but G & A Capital gave 1,000,000 shares
of the Company's common stock that it owned to Venture III for the work they had done to date.



The Company does not currently have any
long-term lease commitments except as noted above.



The Company is subject to legal proceedings
and claims which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur,
the Company believes that the final disposition of such matters should not have a material adverse effect
on its financial position, results of operations or liquidity.



On September 30, 2010, plaintiff Scott
Schrader initiated litigation in the Commonwealth of Kentucky, Franklin Circuit Court, Case No 10-CI-01548 against Nuclear
Solutions, Fuel Frontiers and other individuals. In the lawsuit, plaintiff alleges a dispute over an investment in the Company
and presents claims for breach of contract, intentional misrepresentations, negligence, fraud and fraudulent inducement, unjust
enrichment and breach of constructive or resulting trust.



NOTE 12 -OPTIONS AND WARRANTS



The following table summarizes the changes in options and warrants
outstanding and the related exercise prices for the shares of the Company's common stock issued by the Company as of December 31,
2010.



F-15







|                                    |  | Number of Shares |          |   | Weighted Average Exercise Price |  
|----------------------------------- |  | ---------------- | -------- | - | ------------------------------- | -
|                                    |  |                  |          |   |                                 |  
|Outstanding as of December 31, 2008 |  |                  | —        |   |                                 |  
|Granted                             |  |                  | 500,000  |   |                                 | $
|Exercised                           |  |                  | —        |   |                                 |  
|Canceled or expired                 |  |                  | —        |   |                                 |  
|                                    |  |                  |          |   |                                 |  
|Outstanding as of December 31, 2009 |  |                  | 500,000  |   |                                 |  
|Granted                             |  |                  | —        |   |                                 |  
|Exercised                           |  |                  | —        |   |                                 |  
|Canceled or expired                 |  |                  | (500,000 | ) |                                 |  
|Outstanding as of December 31, 2010 |  |                  | -        |   |                                 | $



The outstanding warrants expired on March 22, 2010.



NOTE 13 - NON-QUALIFIED STOCK GRANT AND OPTION PLAN



In 2007, the Company adopted Non-Qualified
Stock Grant and Option Plan, which expired in 2010. The Plan was administered by the Company's Board of Directors. Directors, officers,
employees, consultants, attorneys, and others who provided services to the Company were eligible participants. Participants were
eligible to be granted warrants, options, common stock as compensation.



NOTE 14 - INCOME TAXES



The Company utilizes ASC 740 “Income
Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of
events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized
for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting
amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are
expected to affect taxable income.



In assessing the realizability of deferred
tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not
be realized. Included in deferred tax assets are Federal and State net operating loss carryforwards of approximately $18 million,
which will expire by 2030. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income
during the periods in which those temporary differences become
deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning
strategies in making this assessment. The Company's future use of its existing net operating losses may be subject to limitations
of Section 382 of the Internal Revenue Code. As of December 31, 2010, we have fully allowed for any deferred tax assets as management
has determined that it is more-likely-than-not that we will not sustain the use of our net operating loss carryforwards and have
established a valuation allowance for them. The valuation allowance increased by $91,100 and $616,000 during the years ended December
31, 2010 and 2009, respectively.



The Company files income tax returns in the United States federal
jurisdiction and certain states in the United States. The Company is delinquent in filing its federal and state income tax returns
for the years ended December 31, 2010, 2011 and 2012. No tax returns are currently under examination by any tax authorities.



F-16







NOTE 15 - SUBSEQUENT
EVENTS



On May 12, 2011, the Company entered into
an agreement with G & A Capital Development LLC (“G & A Capital”) whereby the Company issued 200,000,000 shares
of Series A Preferred shares and a warrant to purchase 496,277,915 shares of common stock for an aggregate price of $2,000,000.
The warrant shall have an exercise term of six months. Upon the Company increasing their number of authorized shares, the 200,000,000
shares of Series A Preferred shares were agreed to be exchanged for 164,402,076 shares of common stock. The share and warrant issuances
were in consideration of G & A Capital making previous payments on the Company’s behalf totaling $662,540 and an agreement
that of G &A Capital will assume the outstanding financial obligations incurred by the Company up to $8,000,000 as long
as the liability was incurred on or before September 11, 2011 in accounts payable and officers compensation packages.



On October 19, 2011, the Company entered
into an agreement with a consultant. The consultant agreed to accept 687,500 common shares as payment in full of consulting fees
earned prior to 2009 totaling $372,500. In accordance with the May 12, 2011 agreement with G & A Capital, the settlement was
consummated through the distribution of shares held by G & A Capital.



The Company's Board of Directors passed
a resolution to amend the Articles of Incorporation as required by the G & A Capital Stock Purchase Agreement of June 11, 2011.
The Company agreed to amend its Articles of Incorporation to, among other things, increase the authorized common stock capital
to 800,000,000 shares. Upon amendment of the Articles of Incorporation, G & A Capital would exchange the 5,000,000 shares of
preferred stock for 164,402,076 common shares, with the preferred shares being cancelled and returned to the treasury. Upon the
exchange of the preferred stock for the common stock, The Company would issue a warrant for the purchase of an additional 496,277,915
common shares for an aggregate price of $2,000,000.



On October 7, 2011, FINRA approved the
change to US Fuel Corporation and the symbol change from NSOL to USFF.



On October 11, 2011, the Company entered
into an agreement with Larry E. Harris under which Harris would receive 1⁄2 of 1% of the net operating income of the first
US Fuel coal--to--liquid
plant commissioned by the Company. This agreement was reached as the settlement of a dispute between the Company, G & A Capital
and Harris.





On May 15, 2012, G & A Capital partially
exercised the warrant provided for in the G & A Capital Agreement, taking 300,851,000 common shares, leaving a balance available
under the warrant of 195,426,915, however they have since agreed not to exercise the remainder of this warrant and it can no longer
be exercised. All shares of our common stock that G&A Capital own today, remain restricted .





On July 30, 2012, Schrader & Associates,
LLC filed a complaint against Fuel Frontiers, Inc. in the Commonwealth of Kentucky, Muhlenberg Circuit Court Division, as
Civil Action No. 12--CI--352
to Quiet Title on property acquired by Fuel Frontiers, Inc. The property that is the subject of this litigation is notthe
site selected for the US Fuel Muhlenberg County coal to diesel facility.



On September 10, 2012, the Company Board
of Directors unanimously approved the decision by Mr. Bagot as CEO to execute a quit claim deed to resolve the quiet title action
pending between the Company and Scott Schrader.



On August 14, 2012, the Company entered
into a Master Services Agreement (“MSA”) with Global Private Funding, Inc., which included provisions for Global to
provide the Company with business incubation services, legal & compliance services and underwriting services. On April 22,
2013, the Company terminated the Global MSA for cause.



Fuel Frontiers, Inc. was dissolved effective
as of September 12, 2012.



From the period January 1, 2011 through June 30, 2013, G &
A Capital reduced the Company’s liabilities by $4,071.48 under the Stock Purchase Agreement the Company maintained with G
& A Capital.



F-17







Item 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE



During 2010, the Company’s independent
accountant was RBSM LLP (“RBSM”). Due to insufficient capital, the Company had not engaged RBSM to review or examine
any financial statement information subsequent to our Quarterly Report on Form 10-Q for the three month period ended March 31,
2010. Effective December 3, 2012, the Company dismissed RBSM from serving as the Company’s independent accountants.



The reports of RBSM on the financial statements
of the Company for the years ended December 31, 2009 and 2008 contained no adverse opinion or disclaimer of opinion and were not
qualified or modified as to uncertainty, audit scope or accounting principle, except that each of those reports did contain an
explanatory paragraph as to the existence of substantial doubt regarding the Company's ability to continue as a going concern.
In connection with its audits of the years ended December 31, 2009 and 2008, and reviews of the Company’s financial statements
through March 31, 2010, there were no disagreements with RBSM on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of RBSM, would have caused
them to make reference thereto in their report on the financial statements for such years.



As of December 3, 2012 the Company engaged
Liggett, Vogt & Webb, P.A. (“LVW”) as its new independent accountants. The Company’s Board of Directors unanimously
recommended that the Company change audit firms, directed the process of review of candidate firms to replace RBSM and made the
final decision to engage LVW.



LVW conducted an independent audit of the
Company for the year ended December 31, 2010 and the financial statements contained in this Form 10-K.



Item 9A.  CONTROLS AND PROCEDURES



Evaluation of Disclosure Controls and Procedures



We maintain disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
that are designed to be effective in providing reasonable assurance that information required to be disclosed in our reports under
the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the
Securities and Exchange Commission (the “ SEC”), and that such information is accumulated and communicated to our management
to allow timely decisions regarding required disclosure.



In designing and evaluating disclosure
controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can
provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must
reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because
of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues
and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making
can be faulty and that breakdowns can occur because of simple error or mistake. The design of any system of controls is based,
in part, upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed
in achieving its stated goals under all potential future conditions.



F-18







As of the end of the period covered by
this annual report, we carried out an evaluation, under the supervision and with the participation of management, including our
Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls
and procedures. Based upon that evaluation, because of the material weaknesses described below regarding our internal control over
financial reporting, management concluded that our disclosure controls and procedures are ineffective as of December 31, 2010 to
cause the information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods prescribed by SEC, and that such information is accumulated and communicated to
management, including our Chief Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding
required disclosure.



Evaluation of and Report on Internal Control over Financial
Reporting



Management
is responsible for establishing and maintaining adequate internal control over financial reporting of the Company. Management,
with the participation of our Chief Executive Officer and Principal Financial Officer, has evaluated the effectiveness of our internal
control over financial reporting as of December 31, 2010 based on the criteria established in Internal Control – Integrated
Framework issued by the Committee of Sponsoring Organizations ("COSO") of the Treadway Commission. Based on this evaluation,
management concluded that, as of December 31, 2010,and the material weaknesses described below, management concluded that
the Company did not maintain effective internal control over
financial reporting as of December 31, 2010.



Based on the COSO framework criteria,
management has identified control deficiencies regarding the need for a stronger internal control environment. The lack of effectiveness
of the Company’s disclosure controls and procedures was due to a deficiency in sufficient
expertise as of December 31, 2010 among the Company’s accounting staff as well as a deficiency in its closing processes
as it pertains to identifying all journal entries in the financial statement preparation process. Management believes that these
material weaknesses are primarily due to the lack of financial resources.



We intend to devote
resources to remediate any deficiencies we have discovered and improve our internal control over financial reporting
and eventually remediate the material weaknesses described above. We cannot be certain that these measures will ensure that we
implement and maintain adequate controls over our financial processes and reporting in the future.



In light of our weakness,
we performed additional analyses and procedures in order to conclude that our financial statements for the year ended December
31, 2010 included in this Annual Report on Form 10--K were fairly
stated in accordance with GAAP.



This annual report does not include an
attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's
report was not subject to attestation by the Company's registered public accounting firm pursuant to rules of the SEC that permit
the Company to provide only management's report in this annual report.



Changes in Internal Control over Financial
Reporting



Other than the changes discussed above,
there was no change in our internal controls over financial reporting identified in connection with the requisite evaluation that
occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.



F-19







Item 9B.  OTHER INFORMATION.



None.



PART III



Item 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
GOVERNANCE



In light of the timing of this filing,
we are including a table that sets forth the names of the officers and directors as of December 31, 2010, as well as a table and
related information about those persons currently serving as the Company's officers and directors.



Officers and Directors as of December 31, 2010



|Name             |  | Age |  | Position(s)                              |  | Term           
|---------------- |  | --- |  | ---------------------------------------- |  | ---------------
|                 |  |     |  |                                          |  |                
|John Fairweather |  | 42  |  | President, CEO, Chairman Board Directors |  | 10/1/09-3/23/11
|Kenneth Faith    |  | 39  |  | CFO, Principal Accounting Officer,       |  | 10/9/06-5/10/11
|                 |  |     |  | Member Board of Directors                |  |                





Officers and Directors as of July 31, 2013







The following table and text
set forth the names and ages of all directors and executive officers as of July 31, 2013. There are no family relationships
among our directors and executive officers. Each director is elected at our annual meeting of shareholders and holds office
until the next annual meeting of shareholders, or until his successor is elected and qualified. Also provided herein are
brief descriptions of the business experience of each director, executive officer and advisor during the past five years and
an indication of directorships held by each director in other companies subject to the reporting requirements under the
Federal securities laws. None of our officers or directors is a party adverse to us or has a material interest adverse to
us.



As disclosed in the Current Report on Form
8-K that we filed on July 18, 2013, on July 15, 2013, our Board of Directors formally accepted the previously received resignations
of Mr. Paul Adams and Mr. Stephen Luck, who served as our Chief Operating Officer and a member of our Board of Directors, respectively;
such resignations were effective immediately.



|Name               |  | Age |  | Position(s)                                                  |  | Term               
|------------------ |  | --- |  | ------------------------------------------------------------ |  | -------------------
|                   |  |     |  |                                                              |  |                    
|Stanley Drinkwater |  | 58  |  | Chairman Board of Directors                                  |  | July 2010 - Present
|Harry Bagot        |  | 64  |  | President, CEO Member Board of Directors                     |  | April 2010-Present 
|William Chady      |  | 56  |  | CFO, Principal Accounting Officer, Member Board of Directors |  | July 2010- Present 



Harry
Bagot, President, CEO, Director.

Mr. Bagot, along with Mr. Drinkwater,
were the initial presenters of a complete package for the production of Carbon based materials into fuel using Fischer
Tropsch technology to the Company. During the past eleven years from 2000 to 2011, Mr. Bagot served as the Director of
Property Management for First Montgomery Group and as the Project Manager for United Communities where he was a key member of
the development and construction team where he managed an approximately $300M privatization project for joint base housing
at McGuire Air Force base and Ft. Dix.  The Scope consisted of community planning, design and demolition of 1915
homes, construction of 1635 new homes and renovation of 449 homes.  Project responsibilities included: request for
proposal, development, construction design, multiple business plans, zoning and construction approvals through marketing
and sales.  This Privatization project received an Air Force award for the best privatized project in 2008 and again
in 2010.



F-20







Stanley
Drinkwater, Chairman.

Mr. Drinkwater, along with Mr. Bagot, were the initial presenters of a complete package for the production of Carbon based materials into fuel using Fischer
Tropsch technology to the Company. Mr. Drinkwater, a Partner in Drinkwater & Goldstein, LLP, has twenty-eight
years experience as a civil litigator specializing in personal injury, product liability and medical malpractice. Mr. Drinkwater
is admitted to practice in New Jersey, Pennsylvania, and before the Federal Court of Appeals, 3rd Circuit and the United States
Supreme Court.  He is a member of the Camden County Bar Association and the Association for Justice.  Mr. Drinkwater
received his B.S. in Political Science from Rutgers University at Stockton, and his Juris Doctorate from Widener Law School –
Widener University; member of the Phi Delta Phi Legal Society.  He was the law clerk to Senator Joseph Maressa, Camden County,
New Jersey.



William
Chady, CFO, Principal Accounting Officer, Director.

Mr. Chady is a Certified Public Accountant
with over 28 years of experience.  He is a member of The Kentucky Society of Certified Public Accountants as well as a member
of the American Institute of Certified Public Accountants.  For the most recent 21 years, Mr. Chady has operated a full service
accounting firm, William E. Chady, PSC, with emphasis on small to medium size companies, many in the oil and gas industries. 
Mr. Chady maintains responsibility for the full accounting function for a number of his clients and has assisted in multiple initial
public offerings and private placement memorandums. Mr. Chady is currently the Chairman of the Board of four Texas Roadhouse Restaurants
in addition to serving or having served as a Managing Member, Director and or Officer of several other Kentucky Corporations and
Limited Liability Companies. Mr. Chady is also a member of Kentucky Fuel Associates Inc.



Involvement in Certain Legal Proceedings.
None of the Company's directors, officers, promoters or control persons, if any, during the past five years was, to the best of
the Company's knowledge:



| | 1. | A general partner or executive officer of a business that had a bankruptcy petition filed by or
against it either at the time of the bankruptcy or within the two years before the bankruptcy;
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2. | Convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding
traffic violations and other minor offenses);
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------

| | 3. | Subject to any order, judgment, or decree, not subsequently reversed,
suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise
limiting his or her involvement in any type of business, securities or banking activities; and,
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4. | Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission
or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment
has not been reversed, suspended or vacated.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Significant Employees



The following are employees who are not executive officers,
but who are expected to make significant contributions to our business:



Mr. Garry Sparks, Lead Project Manager.
Mr. Sparks will have oversight responsibility for the planning and construction of a coal-to-liquid fuel plant in Muhlenberg County,
Kentucky.  Additionally, Mr. Sparks will be responsible to work closely with the office of State Representative Brent Yonts
and the office of the Governor of Kentucky to coordinate project efforts.  Mr. Sparks has an extensive 35-year background
in construction, plant and project management. From 2006 to 2010 Mr. Sparks served as president of Kentucky Fuel Associates Inc.,
a firm dedicated to the development of the first coal-to-liquid (CTL) fuel plant in Kentucky with emphasis on curtailing the country’s
dependence on foreign oil.  Additionally, from 2003 to 2008 Mr. Sparks served as president and co-owner of Mechanical Installations
Inc., a firm specializing in the construction and startup of water treatment plants, paper mills, steel manufacturing and processing
plants.



F-21







Corporate Governance - Board Independence



Our Board of Directors has four directors
and has not established Audit, Compensation, and Nominating or Governance Committees as standing committees. We previously had
an executive committee, which was disbanded after its sole purpose was carried out. As of the date of this filing, the Board does
not have an executive committee or any committees performing a similar function. We are not currently listed on a national securities
exchange or in an inter-dealer quotation system that has requirements that a majority of the board of directors be independent
and at this time, do not have any independent directors.



Due to our lack of operations and size,
we do not have an Audit Committee. Furthermore, since we are not currently listed on a national securities exchange, we are not
subject to any listing requirements mandating the establishment of any particular committees.  For these same reasons,
we did not have any other separate committees during fiscal 2010, 2011 or 2012; all functions of a nominating committee, audit
committee and compensation committee were performed by our whole board of directors.  Our board of directors intends
to appoint such persons and form such committees as are required to meet the corporate governance requirements imposed by the national
securities exchanges as necessary. Therefore, we intend that a majority of our directors will eventually be independent directors
and at least one director will qualify as an “audit committee financial expert.”



We do not have a policy regarding the consideration
of any director candidates which may be recommended by our shareholders, including the minimum qualifications for director candidates,
nor has our Board of Directors established a process for identifying and evaluating director nominees. Further, when identifying
nominees to serve as director, while we do not have a policy regarding the consideration of diversity in selecting directors, our
Board seeks to create a Board of Directors that is strong in its collective knowledge and has a diversity of skills and experience
with respect to accounting and finance, management and leadership, vision and strategy, business operations, business judgment,
industry knowledge and corporate governance. We have not adopted a policy regarding the handling of any potential recommendation
of director candidates by our shareholders, including the procedures to be followed. Our Board has not considered or adopted any
of these policies as we have never received a recommendation from any shareholder for any candidate to serve on our Board of Directors.
Given our relative size and lack of directors and officers insurance coverage, we do not anticipate that any of our shareholders
will make such a recommendation in the near future. While there have been no nominations of additional directors proposed, in the
event such a proposal is made, all members of our Board will participate in the consideration of director nominees. In considering
a director nominee, it is likely that our Board will consider the professional and/or educational background of any nominee with
a view towards how this person might bring a different viewpoint or experience to our Board.



Board Leadership Structure and the Board’s
Role in Risk Oversight.



The Board of Directors utilizes a leadership
structure that has two different persons serving the roles of Chief Executive Officer (who is the Corporation’s principal
executive officer and a director) and Chairman.



F-22







Effective
risk oversight is an important priority of the Board of Directors. Because risks are considered in virtually every business decision,
the Board of Directors discusses risk throughout the year generally or in connection with specific proposed actions. The Board
of Directors’ approach to risk oversight includes understanding the critical risks in the Company’s business and strategy,
evaluating the Company’s risk management processes, allocating responsibilities for risk oversight among the full Board of
Directors, and fostering an appropriate culture of integrity and compliance with legal responsibilities.



Compliance
with Section 16(a) of the Securities Exchange Act of 1934



Section 16(a) of the Exchange Act requires
our officers, directors and persons who own more than 10% of any class of our securities registered under Section 12(g) of the
Exchange Act to file reports of ownership and changes in ownership with the SEC. Officers, directors and greater than 10% stockholders
are required by SEC regulation to furnish us with copies of all Section 16(a) forms they file.



We did not receive copies of any such forms
during the year ended December 31, 2010 and believe that the reports from all applicable persons have yet to be filed.



CODE OF ETHICAL CONDUCT.



On March 20, 2003, our board of directors
adopted our code of ethical conduct that applies to all of our employees and directors, including our principal executive officer,
principal financial officer, principal accounting officer or controller, and persons performing similar functions.



We believe the adoption of our Code of
Ethical Conduct is consistent with the requirements of the Sarbanes-Oxley Act of 2002.



Our Code of Ethical Conduct is designed
to deter wrongdoing and to promote:



| | • | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest
between personal and professional relationships;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Full, fair, accurate, timely and understandable disclosure in reports and documents that we file
or submit to the Securities & Exchange Commission and in other public communications made by us;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | • | Compliance with applicable governmental laws, rules and regulations,
| | - | --------------------------------------------------------------------

| | • | The prompt internal reporting to an appropriate person or persons identified in the code of violations
of our Code of Ethical Conduct; and
| | - | ------------------------------------------------------------------------------------------------------------------------------------------

| | • | Accountability for adherence to the Code.
| | - | -----------------------------------------



Item 11.  EXECUTIVE COMPENSATION



Other than the following information, we did not pay any compensation
to any of the named executive officers for the two fiscal years ending December 31, 2010.



Patrick Herda’s
annual base salary in 2009 was $250,000. Mr. Herda resigned his positions with the Company on October 1, 2009.The Company
was never able to pay Mr. Herda his full salary and accrued such expenses. On January 10, 2006 Mr. Herda
entered into a 3-way agreement whereby he irrevocably assigned deferred compensation totaling $542,987 to I.P. Technology Holding,
Inc. (IPTH) in exchange for a guarantee to receive a minimum of $80,000 in cash salary from the Company for the 2006 fiscal year.
On June 10, 2008 pursuant to the January 10, 2006 agreement, the Company issued 5,250,000 shares to IPTH valued at $542,987 thereby
distinguishing all compensation owed to Mr. Herda.





F-23











John Fairweather joined the Company on
October 1, 2009, replacing Mr. Herda as President, CEO and Chairman of the Board of Directors. Mr. Fairweather agreed to work for
the Company without compensation until such time as the Company is able to secure financing for operations. Mr. Fairweather was
terminated for cause from both the Company and its subsidiary on March 23, 2011. In light of his termination, all previously issued
shares to Mr. Fairweather have been returned to us and all amounts owed to him have been written off.



Kenneth Faith
joined the Company in the last quarter of fiscal year 2006 as Chief Financial and Principal Accounting Officer. The board of directors
authorized setting Mr. Faith’s annual base salary at $225,000 as of March 2, 2008. During 2008, the Company paid Mr. Faith
$20,000.The Company was never able to pay Mr. Faith's full salary; it ultimately accrued approximately $469,917 in owed
compensation, but Mr. Faith has since settled this debt through the G & A Capital Agreement and the Company no longer owes
any amounts to Mr. Faith. Mr. Faith resigned as Chief Financial Officer and left the Executive Committee on May 10, 2011.



Current Executive Compensation



As discussed elsewhere in this Report,
in May 2011, we entered into a Stock Purchase Agreement with G & A Capital. Pursuant to the agreement with G & A Capital,
they agreed - among other things - to relieve, discharge and assume certain of the Company's outstanding expenses, including accrued
executive compensation, which they carried out in part, by distributing the shares of Company common stock that they owned to members
of the Company's management and key individuals at their discretion. As the shares were theirs, the decision to issue shares under
the Stock Purchase Agreement rested with G & A Capital, however, they sometimes consulted with the Company's Board to determine
to whom and the amount of such issuances.



Pursuant to the agreement with G &
A Capital, they issued an aggregate total of 144,060,000 to our officers and directors during 2012 and 2013 (see, "G &
A Capital Agreement" in Item 1).



Grants of Plan-Based Awards



We made no grants from plans to any executive
officer during the fiscal year ended December 31, 2010.



Outstanding Equity Awards at Fiscal
Year-End



There were no outstanding equity awards
to any executive officer at the end of the fiscal year ended December 31, 2010.



Director Compensation



During the fiscal year ended December 31,
2010, no directors received compensation.



F-24







Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS



In light of the timing of this Form
10-K, we are including two security ownership tables below: Table I speaks as of December 31, 2010 and Table II speaks as of
July 31, 2013.



The following tables sets forth certain
information regarding beneficial ownership of our Common Stock as of the date specified by (i) each person (or group of affiliated
persons) who is known by us to own more than five percent (5%) of the outstanding shares of our Common Stock, (ii) each director,
executive officer and director nominee, and (iii) all of our directors, executive officers and director nominees as a group.



Beneficial ownership is determined in accordance
with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person
or group of persons is deemed to have “beneficial ownership” of any shares of common stock that such person has the
right to acquire within 60 days of the date of the respective table.  For purposes of computing the percentage of outstanding
shares of our common stock held by each person or group of persons named above, any shares that such person or persons has the
right to acquire within 60 days of the date of the respective table is deemed to be outstanding for such person, but is not deemed
to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares
listed as beneficially owned does not constitute an admission of beneficial ownership.



Unless otherwise indicated, the business
address of each person listed is in care of 5505 Connecticut Ave NW Suite 191, Washington, DC 20015.
Except as otherwise indicated, the persons listed below have sole voting and investment power with respect to all shares of our
common stock owned by them, except to the extent that power may be shared with a spouse.



Table I



As of December 31, 2010, we had99,120,981
shares of Common Stock issued and outstanding.



|Title of Class     |  | Amount and Nature |   |  | Percent of Class | 
|------------------ |  | ----------------- | - |  | ---------------- | 
|Common Stock       |  |                   |   |  |                  | 
|                   |  |                   |   |  |                  | 
|John Fairweather   |  |                   | 0 |  |                  | 
|                   |  |                   |   |  |                  | 
|Kenneth Faith      |  |                   | 0 |  |                  | 
|                   |  |                   |   |  |                  | 
|Stanley Drinkwater |  |                   | 0 |  |                  | 
|                   |  |                   |   |  |                  | 
|William Chady      |  |                   | 0 |  |                  | 
|                   |  |                   |   |  |                  | 
|Total              |  |                   | 0 |  |                  | 



F-25







Table II





As of July 31, 2013, we had564,374,057
shares of Common Stock issued and outstanding.





|Name
    of Beneficial Owner                             |  | Amount
    and Nature of Beneficial Ownership |             |     | %
    of Class | 
|-------------------------------------------------------- |  | --------------------------------------------- | ----------- | --- | -------------- | 
|Harry Bagot                                              |  |                                               | 33,600,000  | (1) |                | 
|Stanley Drinkwater                                       |  |                                               | 76,050,000  |     |                | 
|William Chady                                            |  |                                               | 12,547,366  |     |                | 
|Stephen Luck                                             |  |                                               | 10,000,000  |     |                | 
|Paul Adams                                               |  |                                               | 15,000,000  |     |                | 
|All officers and
    directors as a group (five persons) |  |                                               | 147,197,366 |     |                | 
|                                                         |  |                                               |             |     |                | 
|G & A Capital Development
    LLC (1)                    |  |                                               | 221,700,000 |     |                | 
|Reyna & Associates,
    LLC (2)                          |  |                                               | 71,382,576  |     |                | 



| | 1) | This amount includes 600,000 shares that Mr. Bagot purchased on the open market.
| | -- | --------------------------------------------------------------------------------



| | 2) | G & A Capital submitted a proxy giving Mr. Bagot, Mr. Drinkwater and Mr. Chady (our current
board members), collectively, voting power over the shares held by G & A Capital.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3) | Reyna submitted a proxy giving Mr. Bagot, Mr. Drinkwater and Mr. Chady (our current board members),
collectively, voting power over the shares held by G & A Capital.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



(c) Changes in Control. To management’s knowledge, there
are no arrangements which may result in a change in control.



Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS



There were no transactions with any related
persons (as that term is defined in Item 404 in Regulation S-K) during 2010 or 2009, or any currently proposed transaction (as
of the date of this Report), in which we were or are to be a participant and the amount involved was in excess of $120,000 and
in which any related person had a direct or indirect material interest.



Item 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES



On December 3, 2012, RBSM LLP (“RBSM”)
was dismissed as the Company's independent registered public accounting firm. As of December 3, 2012, the Company engaged Liggett,
Vogt & Webb, P.A. (“LVW”) as its new independent registered public accounting firm.



During the year ended December 31, 2010
and 2009, the Company was billed the following fees in each of the prior two fiscal years by RBSM:



|                   |  | Year Ended December 31, 2009 |        |  | Year Ended December 31, 2010 |  
|------------------ |  | ---------------------------- | ------ |  | ---------------------------- | -
|Audit Fees         |  | $                            | 63,175 |  |                              | $
|Audit-related Fees |  |                              | -0-    |  |                              |  
|Tax Fees           |  |                              | 5,000  |  |                              |  
|All other fees     |  |                              | -0-    |  |                              |  
|Total Fees         |  | $                            | 68,175 |  |                              | $



F-26







Since LVW was engaged in 2012, the firm
has not billed any audit, audit-related, tax or other fees during the years ended December 31, 2010 and 2009.



AUDIT FEES. Audit fees consist of fees
billed for professional services rendered for the audit of the Company's consolidated financial statements and review of the interim
consolidated financial statements included in quarterly reports and services that are normally provided by the Company's principal
accountants in connection with statutory and regulatory filings or engagements.



AUDIT-RELATED FEES. Audit related fees
consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review
of the Company's consolidated financial statements and are not reported under "Audit Fees." There were no Audit-Related
services provided in fiscal 2010 or 2009.



TAX FEES. Tax fees are fees billed for
professional services for tax compliance, tax advice and tax planning.



ALL OTHER FEES. All other fees include
fees for products and services other than the services reported above. There were no management consulting services provided in
fiscal 2010 or 2009.



Policy on Audit Committee Pre-Approval
of Audit and Permissible Non-Audit Services of Independent Auditors



The Company currently does not have a designated
Audit Committee, and accordingly, the Company's Board of Directors' policy is to pre-approve all audit and permissible non-audit
services provided by the independent auditors. These services may include audit services, audit-related services, tax services
and other services. Pre-approval is generally provided for up to one year and any pre-approval is detailed as to the particular
service or category of services and is generally subject to a specific budget. The independent auditors and management are required
to periodically report to the Company's Board of Directors regarding the extent of services provided by the independent auditors
in accordance with this pre-approval, and the fees for the services performed to date. The Board of Directors may also pre-approve
particular services on a case-by-case basis.



To our knowledge, the Company's principal
accountant during 2010 did not engage any other persons or firms other than the principal accountant's full-time, permanent employees.



F-27







PART IV



Item 15.   EXHIBITS AND FINANCIAL
STATEMENT SCHEDULES



|Exhibit |  | Name of Document                                                                                                          
|------- |  | --------------------------------------------------------------------------------------------------------------------------
|        |  |                                                                                                                           
|3.1     |  | Certificate of Incorporation, as Amended *                                                                                
|3.2     |  | Bylaws *                                                                                                                  
|10.1    |  | Form of Stock Purchase Agreement with G & A Capital, Development LLC, dated May 12, 2011*                                 
|10.2    |  | Form of Amendment to Stock Purchase Agreement with G & A Capital,
Development LLC, dated *                                
|10.3    |  | Form of Stock Purchase Agreement and exhibits with Schrader & Associated Defined Benefit Pension Plan*                    
|        |  |                                                                                                                           
|10.4    |  | Form of Joint Venture Agreement with Renewed World Energies, Inc., dated April 26, 2013 (to be filed
        by amendment)
|        |  |                                                                                                                           
|10.5    |  | Teaming Agreement with Woolpert, Inc., dated May 3, 2013 (to be filed
        by amendment)                               
|        |  |                                                                                                                           
|20.1    |  | Code of Ethical Conduct (Incorporated by reference to Exhibit 99 to the Form 10KS for the year ended December
31, 2003)   
|        |  |                                                                                                                           
|21      |  | List of subsidiaries (Filed herewith)                                                                                     
|        |  |                                                                                                                           
|31.1    |  | Chief Executive Officer-Section 302 Certification pursuant to Sarbanes-Oxley Act (Filed herewith)                         
|        |  |                                                                                                                           
|31.2    |  | Chief Financial Officer- Section 302 Certification pursuant to Sarbanes-Oxley Act (Filed herewith)                        
|        |  |                                                                                                                           
|32.1    |  | Chief Executive Officer-Section 906 Certification pursuant to Sarbanes-Oxley Act (Filed herewith)                         
|        |  |                                                                                                                           
|32.2    |  | Chief Financial Officer- Section 906 Certification pursuant
        to Sarbanes-Oxley Act (Filed herewith)                
|        |  |                                                                                                                           
|        |  | * Filed Herewith                                                                                                          





F-28







SIGNATURES



Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.





|                     | US FUEL COPORATION
|-------------------- | ------------------
|                     |                   
|Date: August 1, 2013 | By:               
|                     |                   
|                     |                   



|                     | US FUEL CORPORATION
|-------------------- | -------------------
|                     |                    
|Date: August 1, 2013 | By:                
|                     |                    
|                     |                    



Pursuant to the requirements
of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant
and the capacities and on the dates indicated.



|Signature            |  | Title                         |  | Date          
|-------------------- |  | ----------------------------- |  | --------------
|                     |  |                               |  |               
|/s/ Harry Bagot      |  | CEO, Director, President      |  | August 1, 2013
|Harry Bagot          |  | (Principal Executive Officer) |  |               
|                     |  |                               |  |               
|/s/ William E. Chady |  | CFO, Director                 |  | August 1, 2013
|William E. Chady     |  | (Principal Financial Officer) |  |               
|                     |  |                               |  |               



F-29