|      |
|-----------|
| FORM 10-K |
|      |

|   |                                                                                                                                               |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| x      | ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED JUNE 30, 2010 OR                          |
|   |                                                                                                                                               |
| o      | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ TO ______________ |

|                                                 |
|------------------------------------------------------|
| Apolo Gold & Energy Inc.                         |
|                                                 |
| (Exact name of small business issuer in its charter) |

|                           |   |                               |
|--------------------------------|--------|------------------------------------|
| Nevada                         |   | 98-0412805                         |
|                           |   |                               |
| State or other jurisdiction of |   | I.R.S. Employer Identification No. |
| incorporation or organization  |   |                               |

|                                     |   |   |       |
|------------------------------------------|--------|--------|------------|
| #12-1900 Indian River  Cr      |   |   |       |
| North Vancouver, British Columbia        |   |   | V7G 2R1    |
|                                     |   |   |       |
| (Address of principal executive offices) |   |   | (Zip Code) |

|                                                           |
|----------------------------------------------------------------|
| Securities Registered Under Section 12(g) of the Exchange Act: |
| Common Stock, 0.001 par value                                  |
| (Title of class)                                               |

----

| Large accelerated filer  o                                       |  Accelerated filer o         |
|-----------------------------------------------------------------------|-----------------------------------|
| Non-accelerated filer (Do not check if a smaller reporting company) o |  Smaller reporting company x |

----

----

----

----

|           |     |   |    |   |   |   |
|----------------|----------|--------|---------|--------|--------|--------|
| Quarter Ended  | High Bid |   | Low Bid |   |
|           |     |   |    |   |
| Sept 30, 2009  |     | $      | 0.02    |   |   | $      | 0.02 |   |
| Dec 31, 2009   |     | $      | 0.01    |   |   | $      | 0.01 |   |
| March 31, 2010 |     | $      | 0.01    |   |   | $      | 0.01 |   |
| June 30, 2010  |     | $      | 0.02    |   |   | $      | 0.02 |   |

----

----

----

| I. Vellmer Inc.       |   |                                  |
|-----------------------|--------|---------------------------------------|
| Chartered Accountant* |   |                                  |
|                  |   |                                  | 721 – 602 W. Hastings Street |
|                  |   |                                  | Vancouver, B.C., V6B 1P2 |
|                  |   |                                  |   |
|                  |   | Tel:                                  | 604-687-3773 |
|                  |   | Fax:                                  | 604-687-3778 |
|                  |   |                                  | E-mail: | vellmer@i-vellmer.ca |
|                  |   | *denotes an incorporated professional |

----

|                                                     |   |     |       |   |     |   |
|----------------------------------------------------------|--------|----------|------------|--------|----------|--------|
|                                                     |   |     |       |   |     |   |
|                                                     |   |     |       |   |     |   |
|                                                     |   | June 30, |       |   | June 30, |   |
| ASSETS                                                   |   | 2010     |       |   | 2009     |   |
| CURRENT ASSETS                                           |   |     |       |   |     |   |
| Cash                                                     |   | $        | 434        |   |     | $      | 42 |   |
|                                                     |   |     |       |   |     |   |   |   |
| TOTAL ASSETS                                             |   | $        | 434        |   |     | $      | 42 |   |
|                                                     |   |     |       |   |     |   |   |   |
| LIABILITIES & STOCKHOLDERS' DEFICIT                  |   |     |       |   |     |   |   |   |
| CURRENT LIABILITIES                                      |   |     |       |   |     |   |   |   |
| Accounts payable and accrued liabilities                 |   | $        | 31,857     |   |     | $      | 30,616 |   |
| Loans payable, related parties (Note 5)                  |   |     | 115,066    |   |     |   | 83,238 |   |
| Total Current Liabilities                                |   |     | 146,923    |   |     |   | 113,854 |   |
|                                                     |   |     |       |   |     |   |   |   |
| COMMITMENTS AND CONTINGENCIES (Note 10)                  |   |     | -          |   |     |   | - |   |
|                                                     |   |     |       |   |     |   |   |   |
| STOCKHOLDERS' DEFICIT                                    |   |     |       |   |     |   |   |   |
| Common stock, 200,000,000 shares authorized, $0.001      |   |     |       |   |     |   |   |   |
| par value; 97,653,729 and 97,653,729 shares              |   |     |       |   |     |   |   |   |
| issued and outstanding, respectively  (Note 7) |   |     | 97,654     |   |     |   | 97,654 |   |
| Additional paid-in capital                               |   |     | 7,305,674  |   |     |   | 7,305,674 |   |
| Accumulated deficit prior to exploration stage           |   |     | (1,862,852 | )      |     |   | (1,862,852 | ) |
| Deficit accumulated during exploration stage             |   |     | (5,686,964 | )      |     |   | (5,654,287 | ) |
|                                                     |   |     |       |   |     |   |   |   |
| TOTAL STOCKHOLDERS' DEFICIT                              |   |     | (146,488   | )      |     |   | (113,811 | ) |
|                                                     |   |     |       |   |     |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT              |   | $        | 434        |   |     | $      | 42 |   |

----

|                                                |   |       |       |   |       |   |       |               |   |
|-----------------------------------------------------|--------|------------|------------|--------|------------|--------|------------|--------------------|--------|
|                                                |   |       |       |   |       |   |       | Period from        |   |
|                                                |   |       |       |   |       |   |       | April 16, 2002     |   |
|                                                |   |       |       |   |       |   |       | (Inception of      |   |
|                                                |   | Year Ended |       |   | Year Ended |   |       | Exploration Stage) |   |
|                                                |   | June 30,   |       |   | June 30,   |   |       | Through            |   |
|                                                |   | 2010       |       |   | 2009       |   |       | June 30, 2010      |   |
|                                                |   |       |       |   |       |   |       |               |   |
| REVENUES                                            |   | $          | -          |   |       | $      | -          |               |   | $ | - |   |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
| EXPENSES                                            |   |       |       |   |       |   |       |               |   |   |   |   |
| Consulting and professional fees                    |   |       | 16,568     |   |       |   | 158,288    |               |   |   | 1,825,212 |   |
| Exploration costs                                   |   |       | -          |   |       |   | -          |               |   |   | 2,449,248 |   |
| Stock compensation expense                          |   |       | -          |   |       |   | -          |               |   |   | 381,340 |   |
| General and administrative expenses                 |   |       | 16,109     |   |       |   | 17,715     |               |   |   | 997,599 |   |
| TOTAL EXPENSES                                      |   |       | 32,677     |   |       |   | 176,003    |               |   |   | 5,653,399 |   |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
| LOSS FROM OPERATIONS                                |   |       | (32,677    | )      |       |   | (176,003   | )                  |   |   | (5,653,399 | ) |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
| OTHER INCOME (EXPENSE)                              |   |       |       |   |       |   |       |               |   |   |   |   |
| Loss on sale of mining equipment                    |   |       | -          |   |       |   | -          |               |   |   | (177,193 | ) |
| Gain on settlement of debt                          |   |       | -          |   |       |   | 113,520    |               |   |   | 142,442 |   |
| Other income                                        |   |       | -          |   |       |   | -          |               |   |   | 1,186 |   |
|                                                |   |       | -          |   |       |   | 113,520    |               |   |   | (33,565 | ) |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
| LOSS BEFORE INCOME TAXES                            |   |       | (32,677    | )      |       |   | (62,483    | )                  |   |   | (5,686,964 | ) |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
| INCOME TAXES                                        |   |       | -          |   |       |   | -          |               |   |   | - |   |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
| NET LOSS                                            |   | $          | (32,677    | )      |       | $      | (62,483    | )                  |   | $ | (5,686,964 | ) |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
| NET LOSS PER SHARE, BASIC AND DILUTED:              |   | $          | (0.00      | )      |       | $      | (0.00      | )                  |   |   |   |   |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
|                                                |   |       |       |   |       |   |       |               |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF                          |   |       |       |   |       |   |       |               |   |   |   |   |
| COMMON STOCK SHARES OUTSTANDING, BASIC AND DILUTED: |   |       | 97,653,729 |   |       |   | 82,137,189 |               |   |   |   |   |

----

|                                                      |   |       |    |    |               |   |     |           |   |
|-----------------------------------------------------------|--------|------------|---------|---------|--------------------|--------|----------|----------------|--------|
|                                                      |   |       |    |    |               |   |     | Period from    |   |
|                                                      |   |       |    |    |               |   |     | April 16, 2002 |   |
|                                                      |   |       |    |    |               |   |     | (Inception of  |   |
|                                                      |   | Year Ended |    |    | Exploration Stage) |   |
|                                                      |   | June 30,   |    |    | Through            |   |
|                                                      |   | 2010       |    |    | 2009               |   |     | June 30, 2010  |   |
|                                                      |   |       |    |    |               |   |     |           |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                     |   |       |    |    |               |   |     |           |   |
| Net loss                                                  |   | $          | (32,677 | )  |               | $      | (62,285  | )         |   | $ | (5,686,964 | )  |
| Adjustments to reconcile net loss                         |   |       |    |    |               |   |     |           |   |   |   |   |
| to net cash used by operating activities:                 |   |       |    |    |               |   |     |           |   |   |   |   |
| Depreciation                                              |   |       | -       |    |               |   | -        |           |   |   | 95,176 |   |
| Loss on sale of mining equipment                          |   |       | -       |    |               |   | -        |           |   |   | 177,193 |   |
| Options exercised for services                            |   |       | -       |    |               |   | -        |           |   |   | 276,691 |   |
| Gain on settlement of debt                                |   |       | -       |    |               |   | (113,520 | )              |   |   | (142,442 | ) |
| Stock issued for current debt                             |   |       | -       |    |               |   | -        |           |   |   | 470,041 |   |
| Stock issued for officer's wages and services             |   |       | -       |    |               |   | -        |           |   |   | 252,700 |   |
| Stock issued for professional services (Note 7)           |   |       | -       |    |               |   | 25,000   |           |   |   | 272,060 |   |
| Stock issued for exploration costs                        |   |       | -       |    |               |   | -        |           |   |   | 711,000 |   |
| Stock options granted                                     |   |       | -       |    |               |   | -        |           |   |   | 381,340 |   |
| Expenses paid on behalf of Company                        |   |       | -       |    |               |   | -        |           |   |   | 42,610 |   |
| Decrease (increase) in:                                   |   |       |    |    |               |   |     |           |   |   |   |   |
| Accounts payable                                          |   |       | 1,241   |    |               |   | (35,876  | )              |   |   | 265,518 |   |
| Accrued expenses                                          |   |       | -       |    |               |   | -        |           |   |   | (5,807 | ) |
| Accrued payables, related parties                         |   |       | -       |    |               |   | 180,920  |           |   |   | 387,633 |   |
| Net cash (used) by operating activities                   |   |       | (31,436 | )       |               |   | (5,761   | )              |   |   | (2,503,251 | ) |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                     |   |       |    |    |               |   |     |           |   |   |   |   |
| Purchase of fixed assets                                  |   |       | -       |    |               |   | -        |           |   |   | (95,174 | ) |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                     |   |       |    |    |               |   |     |           |   |   |   |   |
| Net proceeds from related party loans                     |   |       | 31,828  |    |               |   | -        |           |   |   | 89,561 |   |
| Proceeds from borrowings                                  |   |       | -       |    |               |   | -        |           |   |   | 84,937 |   |
| Proceed from subscription receivable                      |   |       | -       |    |               |   | -        |           |   |   | 25,000 |   |
| Proceeds from sale of common stock                        |   |       | -       |    |               |   | -        |           |   |   | 2,397,835 |   |
| Net cash provided  by financing activities      |   |       | 31,828  |    |               |   | -        |           |   |   | 2,597,333 |   |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                           |   |       | 392     |    |               |   | (5,761   | )              |   |   | (1,062 | ) |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
| Cash, beginning of period                                 |   |       | 42      |    |               |   | 5,803    |           |   |   | 1,496 |   |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
| Cash, end of period                                       |   | $          | 434     |    |               | $      | 42       |           |   | $ | 434 |   |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
| SUPPLEMENTAL CASH FLOWS INFORMATION                       |   |       |    |    |               |   |     |           |   |   |   |   |
| Income taxes paid                                         |   | $          | -       |    |               | $      | -        |           |   | $ | - |   |
| Interest paid                                             |   | $          | -       |    |               | $      | -        |           |   | $ | - |   |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES:              |   |       |    |    |               |   |     |           |   |   |   |   |
|                                                      |   |       |    |    |               |   |     |           |   |   |   |   |
| Note receivable from sale of mining equipment             |   | $          | -       |    |               | $      | -        |           |   | $ | 45,000 |   |
| Common stock issued on settlement of debt (Notes 5 and 7) |   | $          | -       |    |               | $      | 367,500  |           |   | $ | 367,500 |   |

----

|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |
|-------------------------------------------------------------------------------|--------|--------------|------------|--------|------------|--------|--------|---------|--------|--------|---------------|--------|--------|--------------------------|---------|--------|--------------------|--------|------------|---------------|--------|--------|-----------|--------|
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   | AccumulatedDeficit Prior |    |   | AccumulatedDeficit |   |       | Accumulated   |   |   | Total     |   |
|                                                                          |   | Common Stock |       |   | Additional |   |   |    |   |   | to            |   |   | During                   |    |   | Other              |   |       | Stockholders' |   |
|                                                                          |   | Number       |       |   |       |   |   | Paid-in |   |   | Subscriptions |   |   | Exploration              |    |   | Exploration        |   |       | Comprehensive |   |   | Equity    |   |
|                                                                          |   | of Shares    |       |   | Amount     |   |   | Capital |   |   | Receivable    |   |   | Stage                    |    |   | Stage              |   |       | Income        |   |   | (Deficit) |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |
| Balance, June 30, 2001                                                        |   |         | 18,654,580 |   |       | $      | 18,654 |    |   | $      | 1,265,282     |   |   | $                        | -       |   |               | $      | (1,634,303 | )             |   | $      | -         |   |   | $ | - |   |   | $ | (350,367 | ) |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for services at an average of $0.05 per share        |   |         | 2,300,000  |   |       |   | 2,300  |    |   |   | 112,700       |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 115,000 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Cancellation of stock used as payment for debt                                |   |         | (3,000,000 | )      |       |   | (3,000 | )       |   |   | (32,000       | )      |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | (35,000 | ) |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Options exercised as payment for servicesat $0.05 per share                   |   |         | 700,000    |   |       |   | 700    |    |   |   | 34,300        |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 35,000 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for debt retirementat $0.15 per share                |   |         | 4,421,282  |   |       |   | 4,422  |    |   |   | 658,771       |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 663,193 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Issuance of stock for mining rights                                           |   |         | 3,000,000  |   |       |   | 3,000  |    |   |   | 327,000       |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 330,000 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Options exercised at $0.07 per common share                                   |   |         | 2,000,000  |   |       |   | 2,000  |    |   |   | 138,000       |   |   |                     | (70,000 | )      |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 70,000 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Options exercised as payment for services at $0.11 per common share           |   |         | 20,000     |   |       |   | 20     |    |   |   | 2,180         |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 2,200 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended June 30, 2002                                     |   |         | -          |   |       |   | -      |    |   |   | -             |   |   |                     | -       |   |               |   | (228,549   | )             |   |   | (575,370  | )      |   |   | - |   |   |   | (803,919 | ) |
| Balance, June 30, 2002                                                        |   |         | 28,095,862 |   |       |   | 28,096 |    |   |   | 2,506,233     |   |   |                     | (70,000 | )      |               |   | (1,862,852 | )             |   |   | (575,370  | )      |   |   | - |   |   |   | 26,107 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Options exercised as payment for services at $0.09 per common share           |   |         | 500,000    |   |       |   | 500    |    |   |   | 44,500        |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 45,000 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Subscriptions received                                                        |   |         | -          |   |       |   | -      |    |   |   | -             |   |   |                     | 70,000  |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 70,000 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Options exercised as payment for services at $0.05 per common share           |   |         | 1,300,000  |   |       |   | 1,300  |    |   |   | 67,700        |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 69,000 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Options exercised for cash of $150,000 and services at $0.06 per common share |   |         | 3,400,000  |   |       |   | 3,400  |    |   |   | 201,600       |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 205,000 |   |
|                                                                          |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |      |   |   |   |   |   |   |   |   |   |
| Options exercised as payment of legal services at $0.04 per common share      |   |         | 39,000     |   |       |   | 39     |    |   |   | 1,521         |   |   |                     | -       |   |               |   | -          |          |   |   | -         |   |   |   | - |   |   |   | 1,560 |   |
| Balance Forward                                                               |   |         | 33,334,862 |   |       | $      | 33,335 |    |   | $      | 2,821,554     |   |   | $                        | -       |   |               | $      | (1,862,852 | )             |   | $      | (575,370  | )      |   | $ | - |   |   | $ | 416,667 |   |

----

|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |
|---------------------------------------------------------------------|--------|--------------|------------|--------|------------|--------|--------|---------|--------|--------|---------------|--------|--------|--------------------------|---------|--------|--------------------|--------|------------|---------------|--------|--------|------------|--------|
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   | AccumulatedDeficit Prior |    |   | AccumulatedDeficit |   |       | Accumulated   |   |   | Total      |   |
|                                                                |   | Common Stock |       |   | Additional |   |   |    |   |   |  to      |   |   |  During             |    |   | Other              |   |       | Stockholders' |   |
|                                                                |   | Number       |       |   |       |   |   | Paid-in |   |   | Subscriptions |   |   | Exploration              |    |   | Exploration        |   |       | Comprehensive |   |   | Equity     |   |
|                                                                |   | of Shares    |       |   | Amount     |   |   | Capital |   |   | Receivable    |   |   | Stage                    |    |   | Stage              |   |       | Income        |   |   | (Deficit)  |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |
| Balance Forward                                                     |   |         | 33,334,862 |   |       | $      | 33,335 |    |   | $      | 2,821,554     |   |   | $                        | -       |   |               | $      | (1,862,852 | )             |   | $      | (575,370   | )      |   | $ | - |   |   | $ | 416,667 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of stock for services at $0.08 per share                   |   |         | 600,000    |   |       |   | 600    |    |   |   | 47,400        |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 48,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of stock for debt at $0.06 per common share                |   |         | 2,348,615  |   |       |   | 2,348  |    |   |   | 138,568       |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 140,916 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Options exercised for cash at$0.045 per common share                |   |         | 1,111,112  |   |       |   | 1,111  |    |   |   | 48,889        |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 50,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Options exercised at $0.05 per share for subscription receivable    |   |         | 500,000    |   |       |   | 500    |    |   |   | 24,500        |   |   |                     | (25,000 | )      |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | - |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Options exercised as payment for services at $0.05 per share        |   |         | 400,000    |   |       |   | 400    |    |   |   | 19,600        |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 20,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended June 30, 2003                           |   |         | -          |   |       |   | -      |    |   |   | -             |   |   |                     | -       |   |               |   | -          |          |   |   | (730,997   | )      |   |   | - |   |   |   | (730,997 | ) |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain                                   |   |         | -          |   |       |   | -      |    |   |   | -             |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | 682 |   |   |   | 682 |   |
| Balance, June 30, 2003                                              |   |         | 38,294,589 |   |       |   | 38,294 |    |   |   | 3,100,511     |   |   |                     | (25,000 | )      |               |   | (1,862,852 | )             |   |   | (1,306,367 | )      |   |   | 682 |   |   |   | (54,732 | ) |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Options exercised as payment for services at $0.05 per common share |   |         | 525,000    |   |       |   | 525    |    |   |   | 26,875        |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 27,400 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Stock subscription paid                                             |   |         | -          |   |       |   | -      |    |   |   | -             |   |   |                     | 25,000  |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 25,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Options exercised at $0.06 per share                                |   |         | 11,125,000 |   |       |   | 11,125 |    |   |   | 696,375       |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 707,500 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of stock for services at $0.20 per share                   |   |         | 25,000     |   |       |   | 25     |    |   |   | 4,975         |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 5,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of stock for property acquisition at $0.16 per share       |   |         | 1,000,000  |   |       |   | 1,000  |    |   |   | 159,000       |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 160,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Stock issued for cash  at $0.30 per share                 |   |         | 1,000,000  |   |       |   | 1,000  |    |   |   | 299,000       |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 300,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended June 30, 2004                           |   |         | -          |   |       |   | -      |    |   |   | -             |   |   |                     | -       |   |               |   | -          |          |   |   | (788,700   | )      |   |   | - |   |   |   | (788,700 | ) |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Foreign currency translation gain (loss)                            |   |         | -          |   |       |   | -      |    |   |   | -             |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | (682 | ) |   |   | (682 | ) |
| Balance, June 30, 2004                                              |   |         | 51,969,589 |   |       |   | 51,969 |    |   |   | 4,286,736     |   |   |                     | -       |   |               |   | (1,862,852 | )             |   |   | (2,095,067 | )      |   |   | - |   |   |   | 380,786 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Options exercised at an average of $0.11 per share                  |   |         | 859,000    |   |       |   | 859    |    |   |   | 90,132        |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 90,991 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of stock for debt at $0.07 per share                       |   |         | 1,088,075  |   |       |   | 1,088  |    |   |   | 79,245        |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 80,333 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of stock for property acquisition at $0.09 per share       |   |         | 1,500,000  |   |       |   | 1,500  |    |   |   | 133,500       |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 135,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of stock for services at $0.09 per share                   |   |         | 150,000    |   |       |   | 150    |    |   |   | 13,350        |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 13,500 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of stock for services at $0.20 per share                   |   |         | 50,000     |   |       |   | 50     |    |   |   | 9,950         |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 10,000 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Options exercised as payment for services at $0.08 per share        |   |         | 1,709,888  |   |       |   | 1,710  |    |   |   | 133,580       |   |   |                     | -       |   |               |   | -          |          |   |   | -          |   |   |   | - |   |   |   | 135,290 |   |
|                                                                |   |         |       |   |       |   |   |    |   |   |          |   |   |                     |    |   |               |   |       |          |   |   |       |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended June 30, 2005                           |   |         | -          |   |       |   | -      |    |   |   | -             |   |   |                     | -       |   |               |   | -          |          |   |   | (1,018,390 | )      |   |   | - |   |   |   | (1,018,390 | ) |
| Balance, June 30, 2005                                              |   |         | 57,326,552 |   |       | $      | 57,326 |    |   | $      | 4,746,493     |   |   | $                        | -       |   |               | $      | (1,862,852 | )             |   | $      | (3,113,457 | )      |   | $ | - |   |   | $ | (172,490 | ) |

----

|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |
|--------------------------------------------------------------------------------|--------|--------------|------------|--------|------------|--------|--------|---------|--------|--------|--------------------------|--------|--------|--------------------|------------|--------|---------------|--------|------------|-----------|--------|
|                                                                           |   |         |       |   |       |   |   |    |   |   | AccumulatedDeficit Prior |   |   | AccumulatedDeficit |       |   | Accumulated   |   |       | Total     |   |
|                                                                           |   | Common Stock |       |   | Additional |   |   | to      |   |   |  During             |   |   | Other              |       |   | Stockholders' |   |
|                                                                           |   | Number       |       |   |       |   |   | Paid-in |   |   | Exploration              |   |   | Exploration        |       |   | Comprehensive |   |       | Equity    |   |
|                                                                           |   | of Shares    |       |   | Amount     |   |   | Capital |   |   | Stage                    |   |   | Stage              |       |   | Income        |   |       | (Deficit) |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |
| Balance Forward - June 30, 2005                                                |   |         | 57,326,552 |   |       | $      | 57,326 |    |   | $      | 4,746,493                |   |   | $                  | (1,862,852 | )      |          | $      | (3,113,457 | )         |   | $ | - |   |   | $ | (172,490 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for services at $0.06 per share                              |   |         | 1,805,000  |   |       |   | 1,805  |    |   |   | 116,695                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 118,500 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for property acquisition at $0.16 per share                  |   |         | 1,100,000  |   |       |   | 1,100  |    |   |   | 64,900                   |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 66,000 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Options exercised for cash at $0.07 per common share                           |   |         | 1,000,000  |   |       |   | 1,000  |    |   |   | 69,000                   |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 70,000 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Options exercised as payment for services from $0.07 to $0.10 per common share |   |         | 1,300,000  |   |       |   | 1,300  |    |   |   | 112,700                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 114,000 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Stock issued for cash at $0.10 per share                                       |   |         | 5,600,000  |   |       |   | 5,600  |    |   |   | 554,400                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 560,000 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for debt from $0.06 to $0.10 per share                       |   |         | 3,726,125  |   |       |   | 3,726  |    |   |   | 281,899                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 285,625 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Stock issued for cash from $0.09 to $0.105 per share                           |   |         | 2,364,387  |   |       |   | 2,365  |    |   |   | 226,979                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 229,344 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Stock options granted                                                          |   |         | -          |   |       |   | -      |    |   |   | 381,340                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 381,340 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Net loss for the year ended June 30, 2006                                      |   |         | -          |   |       |   | -      |    |   |   | -                        |   |   |               | -          |   |          |   | (1,404,004 | )         |   |   | - |   |   |   | (1,404,004 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Balance, June 30, 2006                                                         |   |         | 74,222,064 |   |       |   | 74,222 |    |   |   | 6,554,406                |   |   |               | (1,862,852 | )      |          |   | (4,517,461 | )         |   |   | - |   |   |   | 248,315 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for services at $0.10 per share                              |   |         | 90,000     |   |       |   | 90     |    |   |   | 8,910                    |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 9,000 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for debt at $0.06 per share                                  |   |         | 725,000    |   |       |   | 725    |    |   |   | 42,775                   |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 43,500 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for services from $0.08 to $0.09 per common share            |   |         | 2,100,000  |   |       |   | 2,100  |    |   |   | 170,400                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 172,500 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Common shares cancelled at $0.09 per share                                     |   |         | (550,000   | )      |       |   | (550   | )       |   |   | (48,950                  | )      |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | (49,500 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for cash at $0.06 per share                                  |   |         | 1,666,665  |   |       |   | 1,667  |    |   |   | 98,333                   |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 100,000 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Net loss for the year ended June 30, 2007                                      |   |         | -          |   |       |   | -      |    |   |   | -                        |   |   |               | -          |   |          |   | (872,325   | )         |   |   | - |   |   |   | (872,325 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Balance, June 30, 2007                                                         |   |         | 78,253,729 |   |       |   | 78,254 |    |   |   | 6,825,874                |   |   |               | (1,862,852 | )      |          |   | (5,389,787 | )         |   |   | - |   |   |   | (348,511 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for debt at $0.0485 per share                                |   |         | 2,200,000  |   |       |   | 2,200  |    |   |   | 104,500                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 106,700 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Net loss for the year ended June 30, 2008                                      |   |         | -          |   |       |   | -      |    |   |   | -                        |   |   |               | -          |   |          |   | (202,215   | )         |   |   | - |   |   |   | (202,215 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Balance, June 30, 2008                                                         |   |         | 80,453,729 |   |       |   | 80,454 |    |   |   | 6,930,374                |   |   |               | (1,862,852 | )      |          |   | (5,592,002 | )         |   |   | - |   |   |   | (444,026 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Issuance of stock for debt at $0.025 per share                                 |   |         | 14,700,000 |   |       |   | 14,700 |    |   |   | 352,800                  |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 367,500 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Isuance of stock for services at $0.01 per share                               |   |         | 2,500,000  |   |       |   | 2,500  |    |   |   | 22,500                   |   |   |               | -          |   |          |   | -          |      |   |   | - |   |   |   | 25,000 |   |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Net loss for year ended June 30, 2009                                          |   |         | -          |   |       |   | -      |    |   |   | -                        |   |   |               | -          |   |          |   | (62,285    | )         |   |   | - |   |   |   | (62,285 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Balance, June 30, 2009                                                         |   |         | 97,653,729 |   |       |   | 97,654 |    |   |   | 7,305,674                |   |   |               | (1,862,852 | )      |          |   | (5,654,288 | )         |   |   | - |   |   |   | (113,811 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Net loss for the year ended June 30, 2010                                      |   |         | -          |   |       |   | -      |    |   |   | -                        |   |   |               | -          |   |          |   | (32,677    | )         |   |   | - |   |   |   | (32,677 | ) |
|                                                                           |   |         |       |   |       |   |   |    |   |   |                     |   |   |               |       |   |          |   |       |      |   |   |   |   |   |   |   |   |
| Balance, June 30, 2010                                                         |   |         | 97,653,729 |   |       | $      | 97,654 |    |   | $      | 7,305,674                |   |   | $                  | (1,862,852 | )      |          | $      | (5,686,964 | )         |   | $ | - |   |   | $ | (146,488 | ) |

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|                                   |   | June 30, 2010 |       |   | June 30, 2009 |   |
|----------------------------------------|--------|---------------|------------|--------|---------------|--------|
|                                   |   |          |       |   |          |   |
| Net operating loss carry forward       |   | $             | 7,558,256  |   |          | $      | 7,526,516 |   |
|                                   |   |          |       |   |          |   |   |   |
| Deferred tax asset                     |   | $             | 2,494,255  |   |          | $      | 2,483,750 |   |
| Deferred tax asset valuation allowance |   |          | (2,494,255 | )      |          |   | (2,483,750 | ) |
|  Net deferred tax asset           |   | $             | -          |   |          | $      | - |   |
|                                   |   |          |       |   |          |   |   |   |

|                                             |   |   | June 30, 2010  |   |   |   | June 30, 2009  |   |
|--------------------------------------------------|--------|--------|---------------------|--------|--------|--------|---------------------|--------|
| Statutory rate                                   |   |   | 33                  | %      |   |   | 33                  | %      |
|                                             |   |   |                |   |   |   |                |   |
| Income taxes recovered at the effective tax rate |   | $      | 10,629              |   |   | $      | 22,296              |   |
|                                             |   |   |                |   |   |   |                |   |
| Adjustment for temporary timing differences:     |   |   | -                   |   |   |   | -                   |   |
| Adjustment for permanent timing differences:     |   |   |                |   |   |   | (7,502              | )      |
|                                             |   |   |                |   |   |   |                |   |
|                                             |   |   | 10,629              |   |   |   | 14,767              |   |
| Benefit of tax losses not recognized in year     |   |   | (10,629             | )      |   |   | (14,767             | )      |
| Income tax recovery (expense) recognized in year |   | $      | -                   |   |   | $      | -                   |   |

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| Equity compensation plans not approved by security holders |   | Number of securities to be issuedupon exercise of outstanding options |      |   | Weighted-average exercise price of outstanding options |   |   | Number of securities remaining available for future issuance under equity compensation plans |   |
|------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|--------|--------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|
| 2000 stock option plan                                     |   |                                                                  | 1,000,000 |   |                                                   | $      | 0.14   |                                                                                         |   |   | - |   |
| 2002 stock option plan                                     |   |                                                                  | 100,000   |   |                                                   | $      | 0.10   |                                                                                         |   |   | - |   |
| 2003 stock option plan                                     |   |                                                                  | 0         |   |                                                   | $      | 0.00   |                                                                                         |   |   | - |   |
| 2004 and 2004A stock option plans                          |   |                                                                  | 3,500,000 |   |                                                   | $      | 0.16   |                                                                                         |   |   | - |   |
| 2005 stock option plan                                     |   |                                                                  | 2,000,000 |   |                                                   | $      | 0.09   |                                                                                         |   |   | - |   |
| 2006 stock option plan                                     |   |                                                                  | 2,350,000 |   |                                                   | $      | 0.09   |                                                                                         |   |   | - |   |
| Total                                                      |   |                                                                  | 8,950,000 |   |                                                   |   |   |                                                                                         |   |   | - |   |

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|                                        |   | Number of Shares |       |   | Weighted Average Exercise Price |   |   |
|---------------------------------------------|--------|------------------|------------|--------|---------------------------------|--------|--------|
|                                        |   |             |       |   |                            |   |   |
| Outstanding at June 30, 2008                |   |             | 8,950,000  |   |                            |   | 0.12   |   |
|     Granted                  |   |             | -          |   |                            |   | -      |   |
|     Exercised                |   |             | -          |   |                            |   | -      |   |
| Forfeited / cancelled                       |   |             | (8,950,000 | )      |                            |   | (0.12  | ) |
|  Outstanding at June 30, 2010 and 2009 |   |             | -          |   |                            |   | -      |   |

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|              |   |   |   |                                        |   |         |   |
|-------------------|--------|--------|--------|---------------------------------------------|--------|--------------|--------|
|              |   |   |   |                                        |   | 1ST YEAR     |   |
| NAME              |   | AGE    |   | POSITION                                    |   | WITH COMPANY |   |
|              |   |   |   |                                        |   |         |   |
| Peter Bojtos      |   | 61     |   | Director Chairman, President & CEO      |   |         | 2006   |   |
| Robert G. Dinning |   | 71     |   | Director Chief Financial Officer, Secretary |   |         | 2000   |   |
| David Yu          |   | 54     |   | Director                                    |   |         | 2006   |   |

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|   |                                                                                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| *      | understands generally accepted accounting principles and financial statements,                                                                         |
|   |                                                                                                                                                   |
| *      | is able to assess the general application of such principles in connection with accounting for estimates, accruals and reserves,                       |
|   |                                                                                                                                                   |
| *      | has experience preparing, auditing, analyzing or evaluating financial statements comparable to the breadth and complexity to our financial statements, |
|   |                                                                                                                                                   |
| *      | understands internal controls over financial reporting, and                                                                                            |
|   |                                                                                                                                                   |
| *      | understands audit committee functions.                                                                                                                 |

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|                                              |                       |   |                 |   |   |             |    |                   |   |
|---------------------------------------------------|----------------------------|--------|----------------------|--------|--------|------------------|---------|------------------------|--------|
|                                              | Summary Compensation Table |
|                                              |                       |
|                                              |                       |   |                 |   |   |             |    | Long Term Compensation |
|                                              |                       |   |                 |   |   |             |    |                   |
|                                              | Annual Compensation        |   |                 |   |   | Awards           | Payouts |
|                                              |                       |   |                 |   |   |             |    |
| Name and Principle PositionOther Compensation ($) | Other Annual Year          |   | Securities Salary($) |   |   | Compensation ($) |    | Underlying Options (#) | All    |
|                                              |                       |   |                 |   |   |             |    |                   |   |
| Peter Bojtos President/CEO                        | 2010                       |   | Nil                  |   |   |             |    | Nil                    |   |
| Peter Bojtos President/CEO                        | 2009                       |   | 60,000               |   |   | 0                |    |                   |   |
|                                              |                       |   |                 |   |   |             |    |                   |   |
| Robert Dinning CFO                                | 2010                       |   | Nil                  |   |   |             |    | Nil                    |   |
| Robert Dinning CFO                                | 2009                       |   | 60,000               |   |   |             |    | Nil                    |   |

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|   |    |                                                                                    |
|--------|---------|-----------------------------------------------------------------------------------------|
|   | • | Base Salary                                                                             |
|   |    |                                                                                    |
|   | • | Stock Awards                                                                            |
|   |    |                                                                                    |
|   | • | Other benefits available to all employees                                               |
|   |    |                                                                                    |
|   | • | Items specific to our President and Chief Executive Officer per an employment agreement |

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|     |   |                                              |   |          |   |                |   |              |
|----------|--------|---------------------------------------------------|--------|---------------|--------|---------------------|--------|-------------------|
| Title of |   | Name and Address (1)                              |   |          |   | Amount and Nature   |   | % of              |
| Class    |   | Beneficial Owner                                  |   | Position      |   | of Beneficial Owner |   | Class             |
|     |   |                                              |   |          |   |                |   |              |
| Common   |   | Peter Bojtos                                      |   | Director, CEO |   | 8,500,000           |   | 8.70              |
|     |   | Robert Dinning                                    |   | Director, CFO |   | 8,203,333           |   |   8.40% |
|     |   | David Yu                                          |   | Director      |   | 5,600,000           |   |   5.74% |
|     |   | All officers and Directors as a Group (3 persons) |   |          |   | 22,303,333          |   |  22.84%      |

|   |                                                                                                                                        |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
| (1)    | The Address of the executive officers and directors is that of the Company: #12-1900 Indian River Cr., North Vancouver, B.C. Canada V7G 2R1 |

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|   |                                                                                                            |
|--------|-----------------------------------------------------------------------------------------------------------------|
| 3.1    | Articles of Incorporation (Incorporated by reference from Form 10SB Registration filed October 25, 1999)        |
|   |                                                                                                            |
| 3.2    | By-Laws effective May 20, 2005 (Incorporated by reference from Current Report on Form 8-K filed on May 31, 2005 |
|   |                                                                                                            |
| 3.3    | Certificate of Amendment (Incorporated by reference from Annual Report on Form 10KSB filed on August 29, 2005.  |
|   |                                                                                                            |
| 14     | Code of Ethics (Incorporated by reference from Annual Report on Form 10KSB filed on August 27, 2004)            |
|   |                                                                                                            |
| 31.1   | Sarbanes Oxley Section 302 Certification from C.E.O.                                                            |
|   |                                                                                                            |
| 31.2   | Sarbanes Oxley Section 302 Certification from C.F.O.                                                            |
|   |                                                                                                            |
| 32.1   | Sarbanes Oxley Section 906 Certification from C.E.O.                                                            |

|                  |                        |
|-----------------------|-----------------------------|
| Date: October 5, 2010 |                        |
|                  | /s/ Peter Bojtos            |
|                  | Peter Bojtos, President/CEO |

|                  |   |                     |   |   |            |
|-----------------------|--------|--------------------------|--------|--------|-----------------|
| Signature             |   | Title                    |   |   | Date            |
|                  |   |                     |   |   |            |
|                  |   |                     |   |   |            |
| /s/ Peter Bojtos      |   |                     |   |   |            |
| Peter Bojtos          |   | Chairman,President, CEO, |   |   |            |
|                  |   | Director                 |   |   | October 5, 2010 |
|                  |   |                     |   |   |            |
| /s/ Robert G. Dinning |   |                     |   |   |            |
| Robert G. Dinning     |   | Chief Financial Officer, |   |   |            |
|                  |   | Secretary, Director      |   |   | October 5, 2010 |
|                  |   |                     |   |   |            |
| /s/ David Yu          |   |                     |   |   |            |
| David Yu              |   | Director                 |   |   |            |
|                  |   | Director                 |   |   | October 5, 2010 |

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