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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-KSB

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the fiscal year endedDecember 31, 2005

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

Commission file number: 0-49632

SOLANEX MANAGEMENT INC.(Name of small business issuer in its charter)

|**Nevada**                                                     | **98-0361151**                      
|-------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.)
|                                                               |                                     
|**Suite 440**                                                  | **(604) 601-2107**                  
|**1555 E. Flamingo Road**                                      | (Issuer's phone number)             
|**Las Vegas, Nevada 89119**                                    |                                     
|(Address of principal executive offices)                       |                                     

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

Securities registered under Section 12(g) of the Exchange
Act:100,000,000 shares of common stock, par value $0.001 per share

Check whether the issuer is not required to file reports
pursuant to Section 13 or 15(d) of the Exchange Act [ ]

Check whether the issuer (1) filed all reports required
  to be filed by Section 13 or 15(d) of the Exchange Act 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. (1) Yes [X]
  No [  ] (2) Yes [X] No [  ]

Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B contained in this form, and no disclosure will
be contained, to the best of registrant's knowledge, in definitive proxy or
information 
  statements incorporated by reference in Part III of this Form 10-KSB or any
  amendment to this Form 10-KSB. [X]

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

State issuers revenues for its most recent fiscal year:
  $nil

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at
which the common equity was sold, or the average bid and asked price of such
common equity, as of a specified date within the past 60 days. (See
definition of affiliate in Rule 12b-2 of the Exchange Act).

Aggregate market value of non-voting common equity held by
non-affiliates as of December 31, 2005: **N/A**

State the number of shares outstanding of each of the issuers
classes of common equity, as of the latest practicable date.

Outstanding shares of common stock as of March 31, 2006:
  11,033,730 
  Outstanding shares of preferred stock as of March 31, 2006: Nil

Documents incorporated by reference: None

Transitional Small Business Disclosure Format: Yes [  ] No
  [X]

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INDEX to Annual Report on Form 10-KSBSolanex Management
Inc.For the Year Ended December 31, 2005

|           |                                                                                                                       | Page
|---------- | --------------------------------------------------------------------------------------------------------------------- | ----
|Part I     |                                                                                                                       | 3   
|Item 1     | Description of Business                                                                                               | 3   
|Item 2     | Description of Property                                                                                               | 5   
|Item 3     | Legal Proceedings                                                                                                     | 5   
|Item 4     | Submission of Matters to
      a Vote of Security Holders                                                             | 5   
|           |                                                                                                                       |     
|Part II    |                                                                                                                       | 5   
|Item 5     | Market for Common Equity and Related Stockholder
      Matters                                                        | 5   
|Item 6     | Management's Discussion and
      Analysis or Plan of Operation                                                       | 5   
|Item 7     | Financial Statements                                                                                                  | 7   
|Item 8     | Changes In and Disagreements
      With Accountants on Accounting and Financial Disclosure                            | 19  
|Item 8A    | Controls and Procedures                                                                                               | 19  
|Item 8B    | Other Information                                                                                                     | 19  
|           |                                                                                                                       |     
|Part III   |                                                                                                                       | 19  
|Item 9     | Directors, Executive Officers, Promoters
      and Control Persons; Compliance With Section 16(a) of the Exchange Act | 19  
|Item 10    | Executive Compensation                                                                                                | 19  
|Item 11    | Security Ownership of Certain Beneficial
      Owners and Management and Related Stockholder Matters                  | 19  
|Item 12    | Certain Relationships and
      Related Transactions                                                                  | 20  
|Item 13    | Exhibits                                                                                                              | 20  
|Item 14    | Principal Accountant Fees
      and Services                                                                          | 20  
|           |                                                                                                                       |     
|Signatures | 20                                                                                                                   

2

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PART I

ITEM 1. DESCRIPTION OF BUSINESS

CORPORATE BACKGROUND Solanex Management Inc. ("Solanex" or
the "Company") was incorporated under the laws of the State of Nevada on October
12, 2000 under the name EcoSoil Management Inc. The Company changed its name to
Solanex Management Inc. on December 6, 2001. To date, Solanex's only activities
have been organizational, directed at acquiring its principal asset, raising its
initial capital and developing its business plan. The Company has no employees
and no capitalized assets and its management will devote only a portion of their
time to the affairs of the Company.

On October 12, 2000 the Company acquired a license to certain
technology and intellectual property from a group of investors and the developer
of the technology, Colin V. Hall. The license granted a non-exclusive right to
manufacture, market and sell a thermal destructor for on site soil remediation
to industrial, petrochemical and site remediation organizations. The
intellectual property acquired included all licensing, modification, marketing,
distribution and sales rights worldwide in perpetuity. Under the terms of the
Agreement and License of Intellectual Property Rights (the Remediator
agreement), Mr. Hall was compensated two thousand ($2,000) dollars plus one
million five hundred thousand (1,500,000) shares of Solanex common stock and the
investors, a group of ten individuals, were compensated an aggregate of two
million (2,000,000) shares of Solanex common stock. The license granted a
royalty payable to Colin Hall in the amount of seven (7) per cent of gross
revenue derived from the sale or use of the soil Remediator. Solanex has not
commenced commercial operations, has generated no revenues, has no full-time
employees, owns no real estate and has valued the intellectual property rights
at $nil on its balance sheet for accounting purposes.

The Remediator agreement contemplated that the license may be
revoked if Solanex did not manufacture at least one soil Remediator within 3
years of the licensing date. The Company did not meet the manufacturing
requirement and the Agreement and License of Intellectual Property Rights
entered into October 12, 2000 by Colin V. Hall and Solanex Management Inc. has
subsequently been renewed on a month to month basis.

The original agreement has been supplemented with a joint
venture agreement between Solanex Management Inc. and EcoTech Waste Management
Inc. (EcoTech) whereby Solanex contracted out services which include but are not
limited to product manufacturing, delivery, inventory maintenance, developing a
customer base, identifying potential jobs for quotation, website and marketing
materials development to EcoTech. Colin Hall is a principal of EcoTech Waste
Management Inc. In consideration for the services provided by EcoTech, the
Company is required to pay $100,000 to EcoTech over the life of the contract (3
years). At December 31, 2005 the Company has paid $85,500 and has accrued as
payable $14,500. Both parties continue to renegotiate their agreement. The
Company is also reviewing additional complementary technology and ventures for
potential acquisition.

Subsequent to December 31, 2005, the Company continued
negotiations to acquire a license to market a portable steam injection system to
service small oil fields with the objective redeveloping the Companys
Remediator technology into the steam generation technology by Echo Tech Waste
Management Systems, Inc., the companys joint venture partner in the development
of the Remediator high temperature burner technology.

3

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The Board of Directors is reviewing and implementing the next
steps of the Companys business strategy, which may include taking the Company
into the resource sector by way of actively seeking mineral resource property
opportunities being brought to the attention of the Company in its efforts at
marketing the Remediator technology to the resource sector.

Funding Its Business Plan The expenses of
implementing the Company's business plan will exceed the Company's current
available funds. The Company will have to obtain additional funding through an
offering of its securities or through capital contributions from its
stockholders. To date, the Company has financed $100,000 of product development
expenses by extended trade accounts payable and has settled $80,000 of the
accounts payable by the issuance of 2,000,000 shares of its common stock. The
Company settled additional accounts and loans payable in the amount of $117,269
for the issuance of 2,931,730 shares. The Company has raised a further $54,659
by way of loans to the Company at December 31, 2005. No commitments to provide
additional funds have been made by management or stockholders. Accordingly,
there can be no assurance that any additional funds will be available on terms
acceptable to the Company or at all. Subsequent to December 31, 2005 the Company
issued 1,000,000 shares of common stock for proceeds to the Company of $100,000.

The Companys funding requirement for a prototype will be
provided by its joint venture partner, EcoTech Waste Management Inc., as part of
the Joint Venture Agreement with EcoTech Waste Management Inc. (www.etwm.ca). Solanex estimates that it will require
$75,000 to create a working prototype steam injection system to be sold, rented
or leased to a project on a weekly, monthly or annual basis.

Competition Many of Solanex's potential competitors
have longer operating histories, larger customer or user bases, greater brand
recognition and significantly greater financial, marketing and other resources
than Solanex has as it attempts to enter the marketplace. In addition, existing
competitors may be acquired by, receive investments from, or enter into other
commercial relationships with, larger well-established and well-financed
companies. Competitors have and may continue to adopt aggressive pricing or
availability policies and devote substantially more resources to technology and
methodology development than Solanex.

Intellectual Property The Company recognizes the
need to file patents, trademarks and trade names on the unique features of the
technology. The Company currently holds no such registrations of any
intellectual property the Company believes could be applied for and which should
be applied for once funding is available.

Government Regulation There are no specific
government regulations known to us, other than standard business practice, law
and conduct, which might effect us in following our business plan. The use of
the Company's products may be subject to regulation by one or more U.S. federal
agencies, including the Federal Trade Commission and the Environmental
Protection Agency. These activities also may be regulated by various agencies of
the states, localities and foreign countries in which potential applications of
the technology are located.

4

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Numerous U.S. federal and state government agencies have
demonstrated significant activity in promoting environmental protection and
enforcing other regulatory and disclosure statutes. Additionally, it is possible
that new laws and regulations may be enacted with respect to soil remediation.
The adoption of such laws or regulations and the applicability of existing laws
and regulations may impair the Companys growth and result in a decline in the
Company's prospects.

Employees Currently, the Company has no employees
and relies solely upon its officer and director to provide management and
further its affairs. Management will devote only a portion of their time to the
affairs of the Company

ITEM 2. DESCRIPTION OF PROPERTY

The Company currently maintains an office in two locations. The
Companys USA address is 1555 East Flamingo Road, #440, in Las Vegas, Nevada,
and is the official address for the Company. Additionally, the Company has a
working office on the 14th floor, 777 Hornby Street, Vancouver,
British Columbia. Mr. Hall, the President of the Company, works out of this
office and may be contacted at (604) 681-9383.

ITEM 3. LEGAL PROCEEDINGS

The Company is not party to any pending legal proceeding or
litigation and none of its property is the subject of any pending legal
proceeding. Further, the Company is not aware of any legal proceedings
contemplated against it or its property.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS

No matters were submitted to the stockholders for approval
during the year ended December 31, 2005.

PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS

No change since previous filing

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Special Note Regarding Forward Looking Statements Certain
statements in this report and elsewhere (such as in other filings by the Company
with the Securities and Exchange Commission ("SEC"), press releases,
presentations by the Company of its management and oral statements) may
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates" and "should"
and variations of these words and similar expressions, are intended to identify
these forward-looking statements. Actual results may materially differ from any
forward-looking statements. Factors that might cause or contribute to such
differences include, among others, competitive pressures

5

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and constantly changing technology and market acceptance of the
Company's products and services. The Company undertakes no obligation to
publicly release the result of any revisions to these forward-looking
statements, which may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.

Plan of Operation For the 2005 fiscal year, the
company incurred a loss in the amount of $78,151 compared to a loss of $116,609
in the previous year. Both years losses are a result of organizational expenses
and expenses associated with setting up a company structure to begin
implementing its business plan.

The Company is in the process of evaluating its business
potential and incurred costs of $14,500 during the year ended December 31, 2005
to that end ($nil during 2004). The Company anticipates that until these
procedures are completed, it will not generate revenues, and may continue to
operate at a loss thereafter, depending upon the performance of the business.

At the fiscal year ended December 31, 2003, the Company had
spent $85,500 ($14,500 for 2005) for an accumulated total of $100,000 towards
the research and development of the soil Remediator.

During the period from October 12, 2000 (date of incorporation)
through December 31, 2005, the Company received no revenues.

The Company has no commitments for capital expenditures. In the
process of carrying out its business plan, the Company may determine that it
cannot raise sufficient capital to support its business on acceptable terms, or
at all.

Liquidity and Capital Resources The Company remains
in its developmental stage and, since inception, has experienced no significant
change in liquidity or capital resources or shareholders' equity. The Company
expects to carry out its plan of business as discussed above. The officers and
directors of the Company will serve without compensation until the Company
successfully pursues a source of revenue.

Since the Company does not anticipate generating significant
revenues over the next year, it intends to depend upon equity financing through
private placement offerings of its common stock to fund the implementation of
its business plan. Over the longer term, two to five years, the Company expects
to fund its operations through a combination of revenues from the operation of
its business and through additional equity financing. To date, the Company has
generated $nil revenue.

The Company will need additional capital to carry out its
business plans. No commitments to provide additional funds have been made by
management or other stockholders or investors. Accordingly, there can be no
assurance that any additional funds will be available on terms acceptable to the
Company or at all.

6

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ITEM 7. FINANCIAL STATEMENTS

SOLANEX MANAGEMENT INC. (A Development Stage Company)
FINANCIAL STATEMENTS (Stated in U.S. Dollars)

|Report of Independent Registered Public Accounting
      Firm                                                                                                         | 8 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --
|                                                                                                                                                                      |   
|Balance Sheets as at December 31, 2005 and 2004 (audited)                                                                                                             | 9 
|                                                                                                                                                                      |   
|Statements of Operations for the years ended December 31,
      2005 and 2004 and for the period from inception October 12, 2000 to
      December 31, 2005 (audited) | 10
|                                                                                                                                                                      |   
|Statements of Cash Flows for the years ended December 31,
      2005 and 2004 and for the period from inception October 12, 2000 to
      December 31, 2005 (audited) | 11
|                                                                                                                                                                      |   
|Statement of Stockholder's Deficiency for the period from
      inception October 12, 2000 to December 31, 2005 (audited)                                             | 12
|                                                                                                                                                                      |   
|Notes to the Financial Statements                                                                                                                                     | 13

7

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Stockholders and Directors of Solanex Management
Inc. (A Development Stage Company)

We have audited the accompanying balance sheets of Solanex
Management Inc. (a development stage company) as of December 31, 2005 and 2004,
and the related statements of operations, cash flows, and stockholders
deficiency for each of the years ended December 31, 2005 and 2004, and for the
cumulative period from October 12, 2000 (date of inception) to December 31,
2005. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform an audit to obtain reasonable assurance whether
the financial statements are free of material misstatement. 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 that our
audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position of Solanex
Management Inc. as of December 31, 2005 and 2004, and the results of its
operations and its cash flows for each of the years ended December 31, 2005 and
2004, and for the period from October 12, 2000 (date of inception) to December
31, 2005, in conformity with accounting principles generally accepted in the
United States of America.

The Company is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. Our audit
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.

The accompanying financial statements have been prepared assuming
  the Company will continue as a going concern. As discussed in Note 1(b) to the
  financial statements, the Company has suffered recurring losses from operations,
  has negative cash flows, has a stockholders deficiency and is dependent
  upon obtaining adequate financing to fulfil its development activities. These
  factors raise substantial doubt about its ability to continue as a going concern.
  Managements plans in regard to these matters are also discussed in Note
  1(b). The financial statements do not include any adjustments that might result
  from the outcome of this uncertainty.

|Vancouver, Canada | */s/ “Morgan & Company”*
|----------------- | ------------------------
|                  |                         
|May 8, 2006       | Chartered Accountants   



|Tel: (604) 687-5841 |                                     | P.O. Box 10007 Pacific Centre
|------------------- | ----------------------------------- | -----------------------------
|Fax: (604) 687-0075 | Sute 1488 - 700 West Georgia Street
|www.morgan-cas.com  | Vancouver, B.C. V7Y 1A1            

8

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**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

BALANCE SHEETS 
  (Stated in U.S. Dollars)

|                                                               |   | DECEMBER 31 |  
|-------------------------------------------------------------- | - | ----------- | -
|                                                               |   | 2005        |  
|                                                               |   |             |  
|ASSETS                                                         |   |             |  
|                                                               |   |             |  
|Current                                                        |   |             |  
|Cash                                                           | $ | 15,430      |  
|                                                               |   |             |  
|LIABILITIES                                                    |   |             |  
|                                                               |   |             |  
|Current                                                        |   |             |  
|Accounts payable and accrued liabilities                       | $ | 92,329      |  
|Loans payable (Note 5)                                         |   | 54,659      |  
|                                                               |   | 146,988     |  
|                                                               |   |             |  
|STOCKHOLDERS DEFICIENCY                                       |   |             |  
|                                                               |   |             |  
|Capital Stock (Note 6)                                         |   |             |  
|Authorized:                                                    |   |             |  
|100,000,000 common shares, par value of
      $0.001 per share |   |             |  
|20,000,000 preferred shares, par value of $0.001 per share     |   |             |  
|                                                               |   |             |  
|Issued and outstanding:                                        |   |             |  
|9,658,730 common shares (2004  7,528,025)                     |   | 9,659       |  
|                                                               |   |             |  
|Additional paid-in capital                                     |   | 197,380     |  
|                                                               |   |             |  
|Share Subscriptions Received (Note 7)                          |   | 15,000      |  
|                                                               |   |             |  
|Deficit Accumulated During The Development
      Stage         |   | (353,597    | )
|                                                               |   | (131,558    | )
|                                                               |   |             |  
|                                                               | $ | 15,430      |  

The accompanying notes are an integral part of the financial
statements

9

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**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

STATEMENTS OF OPERATIONS 
  (Stated in U.S. Dollars)

|                                              |   |             |   |   |             |   |   | CUMULATIVE |  
|--------------------------------------------- | - | ----------- | - | - | ----------- | - | - | ---------- | -
|                                              |   |             |   |   |             |   |   | PERIOD     |  
|                                              |   |             |   |   |             |   |   | FROM       |  
|                                              |   |             |   |   |             |   |   | INCEPTION  |  
|                                              |   |             |   |   |             |   |   | OCTOBER 12 |  
|                                              |   | YEARS ENDED |   |   | 2000 TO     |  
|                                              |   | DECEMBER 31 |   |   | DECEMBER 31 |  
|                                              |   | 2005        |   |   | 2004        |   |   | 2005       |  
|                                              |   |             |   |   |             |   |   |            |  
|Revenue                                       | $ | -           |   | $ | -           |   | $ | -          |  
|                                              |   |             |   |   |             |   |   |            |  
|Expenses                                      |   |             |   |   |             |   |   |            |  
|Administration                                |   | 13,178      |   |   | 38,658      |   |   | 70,136     |  
|Consulting fees                               |   | 16,919      |   |   | 17,290      |   |   | 34,209     |  
|Feasibility study                             |   | -           |   |   | -           |   |   | 9,250      |  
|Foreign exchange loss                         |   | 438         |   |   | 1,949       |   |   | 2,387      |  
|Office and rent                               |   | 16,878      |   |   | 40,446      |   |   | 82,484     |  
|Organization expenses                         |   | -           |   |   | -           |   |   | 6,228      |  
|Professional fees                             |   | 16,238      |   |   | 18,266      |   |   | 48,903     |  
|Technology cost                               |   | 14,500      |   |   | -           |   |   | 100,000    |  
|                                              |   | 78,151      |   |   | 116,609     |   |   | 353,597    |  
|                                              |   |             |   |   |             |   |   |            |  
|Net
      Loss For The Period                 | $ | (78,151     | ) | $ | (116,609    | ) | $ | (353,597   | )
|                                              |   |             |   |   |             |   |   |            |  
|                                              |   |             |   |   |             |   |   |            |  
|Basic And Diluted Loss Per Share              | $ | (0.01       | ) | $ | (0.02       | ) |   |            |  
|                                              |   |             |   |   |             |   |   |            |  
|                                              |   |             |   |   |             |   |   |            |  
|Weighted Average Number Of Shares Outstanding |   | 8,065,079   |   |   | 7,522,828   |   |   |            |  

The accompanying notes are an integral part of the financial
statements

10

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**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

STATEMENTS OF CASH FLOWS 
  (Stated in U.S. Dollars)

|                                                     |   |             |   |   |             |   |   | CUMULATIVE  |  
|---------------------------------------------------- | - | ----------- | - | - | ----------- | - | - | ----------- | -
|                                                     |   |             |   |   |             |   |   | PERIOD FROM |  
|                                                     |   |             |   |   |             |   |   | INCEPTION   |  
|                                                     |   |             |   |   |             |   |   | OCTOBER 12  |  
|                                                     |   | YEARS ENDED |   |   | 2000 TO     |  
|                                                     |   | DECEMBER 31 |   |   | DECEMBER 31 |  
|                                                     |   | 2005        |   |   | 2004        |   |   | 2005        |  
|                                                     |   |             |   |   |             |   |   |             |  
|Cash Flows From Operating Activities                 |   |             |   |   |             |   |   |             |  
|Net loss for the period                              | $ | (78,151     | ) | $ | (116,609    | ) | $ | (353,597    | )
|                                                     |   |             |   |   |             |   |   |             |  
|Adjustments To Reconcile Net Loss To Net Cash Used   |   |             |   |   |             |   |   |             |  
|By Operating Activities                              |   |             |   |   |             |   |   |             |  
|Expenses not paid with cash                          |   | 438         |   |   | 1,949       |   |   | 7,387       |  
|Change in accounts payable                           |   | 19,938      |   |   | 56,856      |   |   | 187,598     |  
|Cash Used In Operating Activities                    |   | (57,775     | ) |   | (57,804     | ) |   | (158,612    | )
|                                                     |   |             |   |   |             |   |   |             |  
|Cash Flows From Financing Activities                 |   |             |   |   |             |   |   |             |  
|Share subscriptions                                  |   | 15,000      |   |   | 85,228      |   |   | 15,000      |  
|Issuance of common stock                             |   | -           |   |   | -           |   |   | 89,998      |  
|Loans payable                                        |   | 21,000      |   |   | 12,000      |   |   | 71,431      |  
|Cash Provided By Financing Activities                |   | 36,000      |   |   | 97,228      |   |   | 176,429     |  
|                                                     |   |             |   |   |             |   |   |             |  
|Foreign Exchange Effect On Cash                      |   | (438        | ) |   | (1,949      | ) |   | (2,387      | )
|                                                     |   |             |   |   |             |   |   |             |  
|(Decrease) Increase In Cash                          |   | (22,213     | ) |   | 37,475      |   |   | 15,430      |  
|                                                     |   |             |   |   |             |   |   |             |  
|Cash, Beginning Of Period                            |   | 37,643      |   |   | 168         |   |   | -           |  
|                                                     |   |             |   |   |             |   |   |             |  
|Cash, End Of
      Period                            | $ | 15,430      |   | $ | 37,643      |   | $ | 15,430      |  
|                                                     |   |             |   |   |             |   |   |             |  
|Supplemental Disclosure Of Cash Flow Information     |   |             |   |   |             |   |   |             |  
|Interest paid                                        | $ | -           |   | $ | -           |   | $ | -           |  
|Income taxes paid                                    |   | -           |   |   | -           |   |   | -           |  
|                                                     |   |             |   |   |             |   |   |             |  
|Non-Cash Financing Activities                        |   |             |   |   |             |   |   |             |  
|Stock issued for the acquisition of
      technology |   |             |   |   |             |   |   |             |  
|                                                     | $ | -           |   | $ | -           |   | $ | 3,500       |  
|Stock issued on conversion of promissory
      note  |   |             |   |   |             |   |   |             |  
|                                                     |   | -           |   |   | 16,772      |   |   | 16,772      |  
|Stock issued for organization of the
      Company   |   |             |   |   |             |   |   |             |  
|                                                     |   | -           |   |   | -           |   |   | 1,500       |  
|Stock issued to settle payables                      |   | -           |   |   | -           |   |   | 95,269      |  

The accompanying notes are an integral part of the financial
statements

11

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**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

STATEMENT OF STOCKHOLDERS DEFICIENCY

PERIOD FROM OCTOBER 12, 2000 (DATE OF INCEPTION) TO DECEMBER 31,
  2005 
  (Stated in U.S. Dollars)

DEFICITCAPITAL STOCK
    
    
    
    
    
    ACCUMULATEDADDITIONAL
    
    
    SHARE
    
    
    DURING THECOMMON
    
    
    
    
    
    PAID-IN
    
    
    SUBSCRIPTIONS
    
    
    DEVELOPMENTSHARES
    
    
    AMOUNT
    
    
    CAPITAL
    
    
    RECEIVED
    
    
    STAGE
    
    
    TOTALBalance, October 12, 2000(Date of
      inception)
    
    -
    
    $
    -
    
    $
    -
    
    $
    -
    
    $
    -
    
    $
    -Stock issued for $1,500 oforganization
      expenses
    
    1,500,000
    
    
    1,500
    
    
    -
    
    
    -
    
    
    -
    
    
    1,500Stock issued for technology
    
    3,500,000
    
    
    3,500
    
    
    -
    
    
    -
    
    
    -
    
    
    3,500Net loss for the period
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    (10,758
    )
    
    (10,758
    )Balance, December 31, 2000
    
    5,000,000
    
    
    5,000
    
    
    -
    
    
    -
    
    
    (10,758
    )
    
    (5,758
    )Net loss for the year
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    (470
    )
    
    (470
    )Balance, December 31, 2001
    
    5,000,000
    
    
    5,000
    
    
    -
    
    
    -
    
    
    (11,228
    )
    
    (6,228
    )Net loss for the year
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    (26,972
    )
    
    (26,972
    )Balance, December 31, 2002
    
    5,000,000
    
    
    5,000
    
    
    -
    
    
    -
    
    
    (38,200
    )
    
    (33,200
    )Stock issued for cash
    
    477,000
    
    
    477
    
    
    4,293
    
    
    -
    
    
    -
    
    
    4,770Stock issued for accounts
    
    
    
    
    
    
    
    
    
    
    -payable
    
    2,381,725
    
    
    2,382
    
    
    92,887
    
    
    
    
    
    -
    
    
    95,269Stock cancelled
    
    (750,000
    )
    
    (750
    )
    
    750
    
    
    -
    
    
    -
    
    
    -Net loss for the year
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    (120,637
    )
    
    (120,637
    )Balance, December 31, 20037,108,725
    
    
    7,109
    
    
    97,930
    
    
    -
    
    
    (158,837
    )
    
    (53,798
    )Stock issued on conversionof promissory
      notes
    
    419,300
    
    
    419
    
    
    16,353
    
    
    -
    
    
    -
    
    
    16,772Share subscriptions
    
    -
    
    
    -
    
    
    -
    
    
    85,228
    
    
    -
    
    
    85,228Net loss for the year
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    (116,609
    )
    
    (116,609
    )Balance, December 31, 2004
    
    7,528,025
    
    
    7,528
    
    
    114,283
    
    
    85,228
    
    
    (275,446
    )
    
    (68,407
    )


12

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**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

STATEMENT OF STOCKHOLDERS DEFICIENCY (Continued)

PERIOD FROM OCTOBER 12, 2000 (DATE OF INCEPTION) TO DECEMBER 31,
  2005 
  (Stated in U.S. Dollars)

DEFICITCAPITAL STOCK
    
    
    
    
    
    ACCUMULATEDADDITIONAL
    
    
    SHARE
    
    
    DURING THECOMMON
    
    
    
    
    
    PAID-IN
    
    
    SUBSCRIPTIONS
    
    
    DEVELOPMENTSHARES
    
    
    AMOUNT
    
    
    CAPITAL
    
    
    RECEIVED
    
    
    STAGE
    
    
    TOTALBalance, December 31, 2004
    
    7,528,025
    
    $
    7,528
    
    $
    114,283
    
    $
    85,228
    
    $
    (275,446
    )
    $
    (68,407
    )Stock issued on conversionof share subscriptions
    
    2,130,705
    
    
    2,131
    
    
    83,097
    
    
    (85,228
    )
    
    -
    
    
    -Share subscriptions
    
    -
    
    
    -
    
    
    -
    
    
    15,000
    
    
    -
    
    
    15,000Net loss for the year
    
    -
    
    
    -
    
    
    -
    
    
    -
    
    
    (78,151
    )
    
    (78,151
    )Balance, December 31, 2005
    
    9,658,730
    
    $
    9,659
    
    $
    197,380
    
    $
    15,000
    
    $
    (353,597
    )
    $
    (131,558
    )


The accompanying notes are an integral part of the financial
statements

13

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**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004 
  (Stated in U.S. Dollars)  Development Stage Company)

1.          
NATURE OF OPERATIONS AND GOING CONCERN

a)          
Development Stage Company

Solanex Management Inc. (the "Company") was incorporated in the
State of Nevada on October 12, 2000, under the name EcoSoil Management Corp.,
and is in its early developmental stage. The Company changed its name to Solanex
Management Inc. on December 6, 2001. To date, the Company's only activities have
been organizational, directed at acquiring a principal asset, raising initial
capital and developing its business plan.

b)          
Going Concern

Since inception, the Company has suffered recurring losses, net
cash outflows from operations, and at December 31, 2005, has a working capital
deficiency of $131,558 (2004 - $68,407). The Company expects to continue to
incur substantial losses as it develops its business plan. Since inception, the
Company has funded operations through common stock issuances and accounts
payable in order to meet its strategic objectives. Management believes that
sufficient funding will be available to meet its business objectives including
anticipated cash needs for working capital and is currently evaluating several
financing options. However, there can be no assurance that the Company will be
able to obtain sufficient funds to continue the development of, and if
successful, to commence the sale of its products under development. As a result
of the foregoing, there exists substantial doubt about the Company's ability to
continue as a going concern. These financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

2.          
SIGNIFICANT ACCOUNTING POLICIES

a)          
Technology Development Costs

The costs to acquire and develop new technology and
enhancements to existing technology are expensed as incurred until such time as
technological feasibility is demonstrated.

b)          
Use of Estimates

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

c)          
Basic and Diluted Loss Per Share

The Company computes loss per share in accordance with SFAS No.
128  Earnings Per Share. Under the provisions of SFAS No. 128, basic loss per
share is computed using the weighted average number of common stock outstanding
during the period. Diluted loss per share is computed using the weighted average
number of common and potentially dilutive common stock outstanding during the
period. The basic and diluted loss per share are the same as any exercise of
options or warrants would be anti-dilutive.

d)          
Foreign Currency Translation

The Companys functional currency is the U.S. dollar.
Transactions in foreign currency are translated into U.S. dollars as follows:

monetary items at the rate prevailing at the balance sheet
date; non-monetary items at the historical exchange rate; revenue and
expense at the average rate in effect during the applicable accounting period.

14

---

**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004 
  (Stated in U.S. Dollars)

2.          
SIGNIFICANT ACCOUNTING POLICIES (Continued)

e)          
Income Taxes

The Company has adopted Statement of Financial Accounting
Standards No. 109  Accounting for Income taxes (SFAS 109). This standard
requires the use of an asset and liability approach for financial accounting,
and reporting on income taxes. If it is more likely than not that some portion
or all of a deferred tax asset will not be realized, a valuation allowance is
recognized.

f)          
Financial Instruments

The Companys financial instruments consist of cash, accounts
payable, and loans payable.

Unless otherwise noted, it is managements opinion that the
Company is not exposed to significant interest or credit risks arising from
these financial instruments. The fair value of these financial instruments
approximate their carrying values, unless otherwise noted.

g)          
Stock Based Compensation

In December 2002, the Financial Accounting Standards Board
issued Financial Accounting Standard No. 148, Accounting for Stock-Based
Compensation  Transition and Disclosure (SFAS No. 148), an amendment of
Financial Accounting Standard No. 123 Accounting for Stock-Based Compensation
(SFAS No. 123). The purpose of SFAS No. 148 is to: (1) provide alternative
methods of transition for an entity that voluntarily changes to the fair value
based method of accounting for stock-based employee compensation, (2) amend the
disclosure provisions to require prominent disclosure about the effects on
reported net income of an entitys accounting policy decisions with respect to
stock-based employee compensation, and (3) require disclosure of those effects
in interim financial information. The disclosure provisions of SFAS No. 148 were
effective for the Company from the year ended December 31, 2004.

The Company has elected to account for stock-based employee
compensation arrangements in accordance with the provisions of Accounting
Principles Board Opinion No. 25, Accounting for Stock Issued to Employees,
(APB No. 25) and comply with the disclosure provisions of SFAS No. 123, as
amended by SFAS No. 148 as described above. In addition, in accordance with SFAS
No. 123, the Company applies the fair value method using the Black-Scholes
option-pricing model in accounting for options granted to consultants. Under APB
No. 25, compensation expense for employees is recognized based on the
difference, if any, on the date of grant between the estimated fair value of the
Companys stock and the amount an employee must pay to acquire the stock.
Compensation expense is recognized immediately for past services and pro-rata
for future services over the option-vesting period. To December 31, 2005, the
Company has not granted any stock options.

15

---

**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004 
  (Stated in U.S. Dollars)

3.          
RECENT ACOUNTING PRONOUNCEMENTS

a)          
In December 2004, FASB issued Statement of Financial Accounting Standards No.
123 (SFAS 123), Share-Based Payment. This Statement requires that the cost
resulting from all share-based transactions be recorded in the financial
statements. The Statement establishes fair value as the measurement objective in
accounting for share-based payment arrangements and requires all entities to
apply a fair-value-based measurement in accounting for share-based payment
transactions with employees. The Statement also establishes fair value as the
measurement objective for transactions in which an entity acquires goods or
services from non-employees in share-based payment transactions. The Statement
replaces FASB Statement No. 123 Accounting for Stock-Based Compensation and
supersedes APB Opinion No. 25 Accounting for Stock Issued to Employees. The
provisions of this Statement will be effective for the Company beginning with
its fiscal year ending 2006. The Company has determined that the adoption of
SFAS 123 does not have an impact on its results of operations or financial
position.

b)          
In December 2004, FASB issued SFAS No. 153, Exchanges of Nonmonetary Assets -
An Amendment of APB Opinion No. 29. The guidance in APB Opinion No. 29,
Accounting for Nonmonetary Transactions, is based on the principle that
exchanges of nonmonetary assets should be measured based on the fair value of
the assets exchanged. The guidance in that Opinion, however, included certain
exceptions to that principle. SFAS No. 153 amends Opinion No. 29 to eliminate
the exception for nonmonetary exchanges of similar productive assets and
replaces it with a general exception for exchanges of nonmonetary assets that do
not have commercial substance. A nonmonetary exchange has commercial substance
if the future cash flows of the entity are expected to change significantly as a
result of the exchange. The provisions of SFAS No. 153 are effective for
nonmonetary asset exchanges occurring in fiscal periods beginning after June 15,
2005. Early application is permitted and companies must apply the standard
prospectively. The adoption of this standard is not expected to have a material
effect on the Companys results of operations or financial position.

4.          
LICENSE AND TECHNOLOGY RIGHTS

On October 12, 2000, the Company acquired a license to certain
technology and intellectual property from Colin V. Hall, the developer of the
technology, and a group of investors. The license granted a non-exclusive right
to manufacture, market and sell a thermal destructor for site remediation to
industrial, petrochemical and site remediation organizations. The intellectual
property assets acquired include all licensing, modification, marketing,
distribution and sales rights worldwide in perpetuity. Under the terms of the
Agreement and Assignment of Intellectual Property Rights, a cash payment of
$2,000 was made on behalf of the Company and the Company issued 3,500,000 shares
of common stock.

On October 1, 2002, the Company entered into a joint venture
  agreement (the “Agreement”) with EcoTech Waste Management Systems
  (1991) Inc. (“EcoTech”) to design the systems for Remediator and
  provide marketing and business concept expertise. Under the terms of the Agreement,
  EcoTech will evaluate, improve and complete the assets of the Company, and market
  and/or find customers for the assets of the Company. Furthermore, EcoTech will
  search for, recommend and advise the Company on the acquisition of further technology,
  complementary to the current business direction and assets of the Company. In
  consideration for the services provided by EcoTech, the Company is required
  to pay $100,000 to EcoTech over the life of the contract (3 years), in cash
  or shares.

As of December 31, 2005, the Company had paid $85,500 to EcoTech,
  and the remaining $14,500 is included in accounts payable and accrued liabilities.
  This agreement is being renegotiated by both parties.

16

---

**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
  (Stated in U.S. Dollars)

5.          
LOANS PAYABLE

Of the $54,659 (2004 - $33,659) in loans payable, $24,659 (2004
  - $21,659) are convertible into 616,475 (2004 – 541,475) common shares
  at $0.04 per share at the option of the creditor, and $30,000 (2004 - $12,000)
  are convertible into common shares at a mutually agreed upon price per share
  at the option of the creditor. The loans are due on demand and accrue interest
  at the Royal Bank of Canada prime rate plus 2% per annum.

Subsequent to December 31, 2005, $10,000 of loans payable was
  converted into 250,000 common shares at $0.04 per share.

6.          
CAPITAL STOCK

On September 30, 2005, the Company recorded the issuance of
2,130,705 common shares at $0.04 per share in settlement of share subscriptions
received by the Company on October 1, 2004.

Subsequent to the year end, on January 31, 2006, the Company
  issued 1,000,000 shares of common stock at $0.10 per share pursuant to a private
  placement in the amount of $100,000.

7.          
SHARE SUBSCRIPTIONS RECEIVED

On November 22, 2005, the Company received $15,000 in
subscriptions for 375,000 shares of common stock at $0.04 per share. Subsequent
to December 31, 2005, the common shares were issued.

8.          
STOCK OPTIONS

On July 21, 2004, the Company registered its Performance Stock
Plan (the Plan), under the Securities Act of 1933 (the Act), for up to
1,000,000 stock options, which may be granted to employees, directors and
consultants. The Company has not granted any stock options since inception and
there were no stock options outstanding as of December 31, 2005.

9.          
RELATED PARTY TRANSACTIONS

An individual who became a director of the Company on December
  7, 2001, received $2,000 cash and 1,500,000 shares, post split, of Company common
  stock pursuant to the acquisition of technology.

Colin V. Hall, the Company’s President and the developer
  of the Company’s technology, together with EcoTech Waste Management Inc.,
  a company of which he is a principal, owned 36.2% (2004 – 46.0%) of the
  issued and outstanding shares of the Company as of December 31, 2005.

As of December 31, 2005, $14,500 (2004 - $Nil) was owing to EcoTech
  for services performed during the year. This amount is included in accounts
  payable and accrued liabilities.

The Company currently has no employees and relies upon its
officers and directors to further its affairs. The officers and directors
provide services to the Company without any compensation.

17

---

**SOLANEX MANAGEMENT INC.**
  (A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004 
  (Stated in U.S. Dollars)

10.          INCOME
TAXES

A reconciliation of statutory federal income tax rates to the
Companys effective tax rate is as follows:

2005
    
    
    2004Expected tax recovery at 34%
    $
    (26,600
    )
    $
    (39,600
    )Change in valuation allowance
    
    26,600
    
    
    39,600Income tax provision
    $
    -
    
    $
    -


The Company was not taxable in 2005 and 2004.

Deferred tax assets at December 31 were as follows:

2005
    
    
    2004Gross tax deferred assetOperating loss carryforwards
    $
    120,200
    
    $
    93,600Valuation allowance
    
    (120,200
    )
    
    (93,600
    )Net deferred tax asset
    $
    -
    
    $
    -


The Company has net operating losses carried forward of
approximately $354,000 (2004 - $275,000) and has provided a full valuation
allowance due to the uncertainty of the utilization of the benefits of these
losses.

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE

There are no reportable disagreements on accounting or
financial disclosure issues.

ITEM 8A. CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures

Our President and Principal Executive Officer and our Chief
Financial Officer evaluated our disclosure controls and procedures (as defined
in Rule 13a-14 (c) of the Exchange Act) as of the end of the small business
issuers most recent fiscal year. Our Officers have concluded that our
disclosure controls and procedures are effective and designed to ensure that
information required to be disclosed by our Company in its periodic reports that
are required to be disclosed in the reports that we file or submit under the
Exchange Act is accumulated, recorded, processed, summarized and reported, and
that such information is accumulated and communicated to our Company's CEO and
CFO as appropriate to allow timely decisions to be made regarding required
disclosure.

(b) Changes in internal controls.

18

---

Subsequent to the date of their evaluation, management
initiated procedures to ensure that reports are filed within the appropriate
time periods specified by the SEC. Other than these procedures, there were no
corrective actions taken by our Company or other changes made to these internal
controls. Our Company's management does not believe there were changes in other
factors that could affect these controls subsequent to the date of the
evaluation.

ITEM 8 B. OTHER INFORMATION

No information to report during the fourth quarter of the year
covered by this Form 10-KSB

PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND
CONTROL PERSONS

This table sets forth the name, age and position of each
director and executive officer of the Company:

|NAME       | AGE | POSITION                                          
|---------- | --- | --------------------------------------------------
|Colin Hall | 61  | President, Secretary, Treasurer
      and Director

ITEM 10. EXECUTIVE COMPENSATION

No officer or director of the Company has received any
remuneration from the Company.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth as of December 31, 2005 certain
information known to the Company regarding the beneficial ownership of the
Company's common stock, and as adjusted to reflect the share ownership for (i)
each executive officer or director of the Company who beneficially owns shares;
(ii) each stockholder known to the Company to beneficially own five percent or
more of the outstanding shares of its common stock; and (iii) all executive
officers and directors as a group. The Company believes that the beneficial
owners of the common stock listed below, based on information furnished by such
owners, have sole investment and voting power with respect to such shares,
subject to community property laws where applicable.

|                                       | Number of   | Percentage of
|-------------------------------------- | ----------- | -------------
|Name                                   | Shares Held | Shares Owned 
|                                       |             |              
|Colin Hall                             | 1,500,000   | 15.5%        
|4567 Prospect Road                     |             |              
|North Vancouver, B.C., V7N 3M1, CANADA |             |              
|                                       |             |              
|EcoTech Waste Management               | 2,000,000   | 20.7%        
|7588 Winston Street                    |             |              
|Burnaby, BC V5Z 4C2, CANADA            |             |              
|                                       |             |              
|Piers VanZiffle                        | 750,000     | 7.8%         

19

---

|1125 W 49TH AVE                 |           |      
|------------------------------- | --------- | -----
|Vancouver, BC CANADA            |           |      
|                                |           |      
|ALL EXECUTIVE OFFICERS AND      | 1,500,000 | 15.5%
|DIRECTORS AS A GROUP (1 person) |           |      

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

No change since previous filing.

PART IV

ITEM 13. EXHIBITS

Exhibits: None

Reports on Form 8-K: None

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Table of Audit Fees (amounts in Cdn$) billed by Morgan &
Company in connection with the audit of the Companys annual financial
statements for the years ended:

Financial Statements for the Year Ended December 31
    Audit Services
    Audit Related Fees
    Tax Fees
    Other Fees2005
    $7,000
    0
    0
    02004
    $8,250
    0
    0
    02003
    $3,317
    0
    0
    02002
    $2,205
    0
    0
    0


SIGNATURES In accordance with Section 13 or 15(d) of the
Exchange Act, the registrant caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

|                   | SOLANEX MANAGEMENT INC.
|------------------ | -----------------------
|                   |                        
|Date: June 6, 2006 | By:                    
|                   |                        

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

|By:
      /s/ Colin Hall |  | Date: June 6, 2006
|------------------------ |  | ------------------
|Colin Hall, Director     |  |                   

20

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