**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-KSB**

| Commission                File No. 000-13858                                                                                                                        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **PNG                Ventures, Inc.****(formerly                known as Paper Computer Corporation)**(Name                of small business issuer in its charter) |
| Nevada                                                                                                                                                              | 88-0350286 |
| (State                or other Jurisidiction of                Incorporation or Organization)                                                                       | (IRS                Employer Identification                Number) |

| 580                2nd Street, Suite 102Encinitas,                California | 92024                              |
|------------------------------------------------------------------------------|------------------------------------|
| (Address                of Principal Executive Offices)                      | (Zip                Code)          |
|                                                                         |                               |
| Issuer's                Telephone Number                                     | (760)                230-2300 x205 |

| Securities                registered underSection                12(g) of the Act:        |  None |
|-------------------------------------------------------------------------------------------|------------|
|                                                                                      |       |
| Securities                to be registered under Section                12(g) of the Act: |  None |

*Based      on 200,049 common shares issued and outstanding as of July 28, 2005,      $50,012.25*

----

----

**PNG      VENTURES, INC.**

| Section                 | Heading                                                                                                                                                      | Page                           |
|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
| Part                I   |                                                                                                                                                         |                           |
| Item                1   | Description                of Business                                                                                                                       |  4                        |
| Item                2   | Description                of Property                                                                                                                       |  4                        |
| Item                3   | Legal                Proceedings                                                                                                                             |  4                        |
| Item                4   | Submission                of Matters to a Vote of Security Holders                                                                                           |  4                        |
| Part                II  |                                                                                                                                                         |                           |
| Item                5   | Market                for the Registrant's Common Equity and Related Stockholder                Matters                                                      |  4                        |
| Item                6   | Management's                Discussion and Analysis of Financial Condition and Results of Operations                                                         |  4                        |
| Item                6A  | Quantitative                and Qualitative Disclosures About Market Risk                                                                                    |  4                        |
| Item                7   | Financial                Statements with Index and Auditor's Report                                                                                          |  F1                - F10  |
| Item                8   | Changes                in and Disagreements on Accounting and Financial                Disclosure                                                            |  5                        |
| Item                8A  | Controls                and Procedures                                                                                                                       |  5                        |
| Item                8B  | Other                Information                                                                                                                             |  5                        |
| Part                III |                                                                                                                                                         |                           |
| Item                9   | Directors,                Executive Officers, Promoters and Control Persons, Compliance with                Section                16(a) of the Exchange Act |  5                        |
| Item                10  | Executive                Compensation                                                                                                                        |  5                        |
| Item                11  | Security                Ownership of Certain Beneficial Owners and Management                                                                                |  5                        |
| Item                12  | Certain                Relationships and Related Transactions                                                                                                |  5                        |
| Part                IV  |                                                                                                                                                         |                           |
| Item                13  | Exhibits                                                                                                                                                     |  5                        |
| Item                14  | Principal                Accountant Fees and Services                                                                                                        |  5                        |
|                    | Certifications                and Signatures                                                                                                                 |  Ex.                31-32 |

----

***EXTREMELY***

| **2003****(1)**                                       | **Low** | **High** |
|-------------------------------------------------------|---------|----------|
|     First                Quarter  | $.04    | .22      |
|     Second                Quarter | .01     | .05      |
|     Third                Quarter  | .02     | .07      |
|     Fourth                Quarter | .06     | .12      |

| **2004****(1)**                                       | **Low** | **High** |
|-------------------------------------------------------|---------|----------|
|     First                Quarter  | $.03    | .09      |
|     Second                Quarter | .01     | .04      |
|     Third                Quarter  | .01     | .01      |
|     Fourth                Quarter | .01     | .01      |

| **2005****(1)(2)**                                   | **Low** | **High** |
|------------------------------------------------------|---------|----------|
|     First                Quarter | $.20    | .51      |

| (1) | The                prices listed above have been rounded to the nearest                penny.                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The                prices listed were subject to a 1:250 round lot reverse split (as                is                described in Item 4. below). |

**Index      to PNG Ventures, Inc. **

**Financial      Statements **
**December 31, 2004**

|  Independent Auditor's                  Report         | F1     |
|-----------------------------------------------------------------------------------------------------|--------|
|  Financial Statements:                                                                         |        |
|  Balance Sheet                                                                                 | F2     |
|  Statement of Operations                                                                       | F3     |
|  Statements of Stockholders' Equity                                                            | F4-F6  |
|  Statements of Cash Flows                                                                      | F7     |
|  Notes to Financial Statements                                                                 | F8-F10 |

----

----

**PNG      VENTURES, INC.**

| **ASSETS**                                      |       |
|-------------------------------------------------|------------|
|                                            |       |   |   |   |  |   |   |
|                                                 |       | **December                  31 ** |
| ** **                                      | ** ** | ** ** | **2004** |   | ** ** | 2003 |   |
|                                            |       |   |   |   |   |   |   |
| **CURRENT                  ASSETS**             |       |   |   |   |   |   |   |
|                                            |       |   |   |   |   |   |   |
| Cash                                            |       | $ |   |   | $ | 39 |   |
|                                            |       |   |   |   |   |   |   |
| Total                  Current Assets           |       |   |   |   |   | 39 |   |
|                                            |       |   |   |   |   |   |   |
| **OTHER                  ASSETS**               |       |   |   |   |   |   |   |
|                                            |       |   |   |   |   |   |   |
| Joint                  Venture Working Interest |       |   | 177,789 |   |   | 224,986 |   |
|                                            |       |   |   |   |   |   |   |
| Total                  Other Assets             |       |   | 177,789 |   |   | 224,986 |   |
|                                            |       |   |   |   |   |   |   |
| **TOTAL                  ASSETS**               |       | $ | **177,789** |   | $ | 225,025 |   |

| **LIABILITIES                  AND STOCKHOLDERS                  EQUITY** |   |    |        |   |    |
|---------------------------------------------------------------------------|--------|---------|-------------|--------|---------|
|                                                                      |   |    |        |   |    |
| **CURRENT                  LIABILITIES**                                  |   |    |        |   |    |   |   |
|                                                                      |   |    |        |   |    |   |   |
| Accounts                  payable                                         |   | $       | 3,290  |   | $       |   |   |
| Accounts                  payable - related party                         |   |    | 200    |   |    | 69,983 |   |
|                                                                      |   |    |        |   |    |   |   |
| Total                  Current Liabilities                                |   |  $ | 3,490  |   | $       | 69,983 |   |
|                                                                      |   |    |        |   |    |   |   |
| **STOCKHOLDERS                  EQUITY**                                  |   |    |        |   |    |   |   |
|                                                                      |   |    |        |   |    |   |   |
| Common                  stock $0.001 par value;                           |   |    |        |   |    |   |   |
| 50,000,000                  shares authorized;                            |   |    |        |   |    |   |   |
| 200,049                  and 163,763 shares issued                        |   |    |        |   |    |   |   |
| and                  outstanding, respectively                            |   |    | 200         |   |    | 164 |   |
| Additional                  paid-in capital                               |   |    | 922,317     |   |    | 752,590 |   |
| Retained                  earnings                                        |   |    | (748,218    | )      |    | (597,710 | ) |
|                                                                      |   |    |        |   |    |   |   |
| Total                  Stockholders Equity                                |   |    | 174,299     |   |    | 155,042 |   |
|                                                                      |   |    |        |   |    |   |   |
| **TOTAL                  LIABILITIES AND STOCKHOLDERS EQUITY**            |   | **$**   | **177,789** |   |  $ | 177,789 |   |

----

**PNG        VENTURES, INC.**

|                                                        |       | For                  the Years Ended December 31, |       | From                  Inception on June 23, 1995 Through December 31 |       |
|-------------------------------------------------------------|------------|---------------------------------------------------|------------|----------------------------------------------------------------------|------------|
|                                                        |       | 2004                                              |       | 2003                                                                 |       | 2004 |   |
|                                                        |       |                                              |       |                                                                 |       |   |   |
| **REVENUES**                                                |       |  $                                           |       |                                                                 | $          |   |   | $ | 5000 |   |
|                                                        |       |                                              |       |                                                                 |       |   |   |   |   |   |
| **EXPENSES**                                                |       |                                              |       |                                                                 |       |   |   |   |   |   |
|                                                        |       |                                              |       |                                                                 |       |   |   |   |   |   |
| General                    and Administrative Expenses |       |                                              | 150,507    |                                                                 |       | 242,688 |   |   | 753,218 |   |
|                                                        |       |                                              |       |                                                                 |       |   |   |   |   |   |
| Total                  Expenses                             |       |                                              | 150,507    |                                                                 |       | 242,688 |   |   | 753,218 |   |
|                                                        |       |                                              |       |                                                                 |       |   |   |   |   |   |
| **NET                  (LOSS)**                             |       | $                                                 | (150,507   | )                                                                    | $          | (242,688 | ) | $ | 748,218 | ) |
|                                                        |       |                                              |       |                                                                 |       |   |   |   |   |   |
| NET                  LOSS PER SHARE                         |       |                                              | (0.85      | )                                                                    | $          | (1.69 | ) | $ | (17.53 | ) |
|                                                        |       |                                              |       |                                                                 |       |   |   |   |   |   |
| **WEIGHTED                  AVERAGE**                       | ** ** | ** **                                        | ** ** | ** **                                                           | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| **SHARES                  OUTSTANDING**                     |       |  $                                           | 177,564    |                                                                 |  $    | 143,930 |   |  $ | 42,681 |   |

----

**PNG        VENTURES, INC.**

|                                                           |   | Common                  Stock |                            |   |    |                                        |   |
|----------------------------------------------------------------|--------|-------------------------------|---------------------------------|--------|---------|---------------------------------------------|--------|
|                                                           |   | Shares                        |                            | Amount |    | Additional                  Paid In Capital |   | Deficit                  Accumulated During the Development Stage |   |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Issuance                  of common shares for cash            |   |  $                       | 7,126                           |   |  $ | 7                                           |   |  $ | 4993 |   |  $ | - |   |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Net                  loss for the year ended December 31, 1995 |   |                          |   -    |   |    | -                                      |   |   | - |   |   | (3,000  |  ) |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Balance,                  December 31, 1995                    |   |                          | 7,126                           |   |    | 7                                           |   |   | 4,993 |   |   | (3,000 | ) |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Issuance                  of common shares                     |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| for                  cash at $333.33 per share                 |   |                          | 45                              |   |    | -                                           |   |   | 15,000 |   |   | -  |   |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Issuance                  of common shares                     |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| for                  cash at $333.33 per share                 |   |                          | 30                              |   |    | -                                           |   |   | 10,000  |   |   | -  |   |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Issuance                  of common shares                     |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| for                  cash at $6.61 per share                   |   |                          | 62                              |   |    | -                                           |   |   | 410 |   |   | -  |   |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Net                  loss for the year ended                   |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| December                  31, 1996                             |   |                          | -                          |   |    | -                                      |   |   | -  |   |   | (27,410 | ) |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Balance,                  December 31, 1996                    |   |                          | 7,263                           |   |    | 7                                           |   |   | 30,403 |   |   | (30,410 | ) |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Net                  loss for the year ended                   |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| December                  31, 1997                             |   |                          | -                          |   |    | -                                      |   |   | -  |   |   | -  |   |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Balance,                  December 31, 1997                    |   |                          | 7,263                           |   |    | 7                                           |   |   | 30,403 |   |   | (30,410 | ) |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Net                  loss for the year ended                   |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| December                  31, 1998                             |   |                          | -                          |   |    | -                                      |   |   | -  |   |   | -  |   |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Balance,                  December 31, 1998                    |   |                          | 7,263                           |   |    | 7                                           |   |   | 30,403 |   |   | (30,410 | ) |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Net                  loss for the year ended                   |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| December                  31, 1999                             |   |                          | -                          |   |    | -                                      |   |   | -  |   |   | -  |   |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |
| Balance,                  December 31, 1999                    |   |  $                       | 7,263                           |   | $       | 7                                           |   | $ | 30,403 |   |  $ | (30,410 | ) |
|                                                           |   |                          |                            |   |    |                                        |   |   |   |   |   |   |   |

----

**PNG        VENTURES, INC.**

|                                            |       | Common                  Stock |       |       |        |                             |       |
|-------------------------------------------------|------------|-------------------------------|------------|------------|-------------|----------------------------------|------------|
|                                            |       | Shares                        |       | Amount     |        | Paid                  In Capital |       | Deficit                  Accumulated During the Development Stage |   |
| Balance,                  December 31, 1999     |       |  $                       | 7,263      |       |  $     | 7                                |       |  $ | 30,403 |   |  $ | (30,410 | ) |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Issuance                  of common shares      |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| for                  services valued at $0.50   |       |                          | 10,000     |       |        | 10                               |       |   | 4,990 |   |   |   |   |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Cancellation                  of common         |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| shares                                          |       |                          | (10,000    | )          |        | (10                              | )          |   | (4,990 | ) |   |   |   |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Issuance                  of common shares      |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| in                  an acquisition valued at    |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| $0.50                                           |       |                          | 18,458     |       |        | 18                               |       |   | 9,211 |   |   |   |   |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Cancellation                  of common         |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| shares                                          |       |                          | (18,458    | )          |        | (18                              | )          |   | (9,211 | ) |   |   |   |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Net                  loss for the year ended    |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| December                  31, 2000              |       |                          | -          |       |        | -                                |       |   | - |   |   | (153,279 | ) |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Balance,                  December 31, 2000     |       |                          | 7,263      |       |        | 7                                |       |   | 30,403 |   |   | (183,689 | ) |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Issuance                  of common shares      |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| of                  services at $0.25 per       |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| share                                           |       |                          | 10,000     |       |        | 10                               |       |   | 2,470 |   |   | - |   |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Net                  loss for the year ended    |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| December                  31, 2001              |       |                          | -          |       |        | -                                |       |   | - |   |   | (98,049 | ) |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Balance,                  December 31, 2001     |       |                          | 17,263     |       |        | 17                               |       |   | 32,873 |   |   | (281,738 | ) |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Issuance                  of common shares      |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| for                  debt conversion, August    |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| 2002                                            |       |                          | 27,500     |       |        | 28                               |       |   | 273,566 |   |   | - |   |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| Net                  loss for the year ended    |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| December                  31, 2002              |       |                          | -          |       |        | -                                |       |   | - |   |   | (73,284 | ) |
|                                            |       |                          |       |       |        |                             |       |   |   |   |   |   |   |
| **Balance,                  December 31, 2002** | ** ** | ** $**                   | **44,763** | ** ** | ** $** | **45**                           | ** ** | ** $** | **306,439** | ** ** | ** $** | **(355,022** | **)** |

----

**PNG        VENTURES, INC.**

|                                            |       | Common                  Stock |        |       |        |                             |       |
|-------------------------------------------------|------------|-------------------------------|-------------|------------|-------------|----------------------------------|------------|
|                                            |       | Shares                        |        | Amount     |        | Paid                  In Capital |       | Deficit                  Accumulated During the Development Stage |   |
|                                            |       |                          |        |       |        |                             |       |   |   |
| Balance,                  December 31, 2002     |       |  $                       | 44,763      |       |  $     | 45                               |       |  $ | 306,439 |   |  $ | (355,022 | ) |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| Issuance                  of common shares for  |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| debt                  conversion February, 2003 |       |                          | 119,000     |       |        | 119                              |       |   | 446,131 |   |   | - |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| Net                  loss for the year ended    |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| December                  31, 2003              |       |                          | -           |       |        | -                                |       |   | - |   |   | (242,688 | ) |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| Balance,                  December 31, 2003     |       |                          | 163,763     |       |        | 164                              |       |   | 752,570 |   |   | (597,710 | ) |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| Issuance                  of common shares      |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| for                  debt conversion, June      |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| 2004                                            |       |                          | 16,000      |       |        | 16                               |       |   | 39,984 |   |   | - |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| Issuance                  of common shares      |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| of                  services at $0.001 per      |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| share                                           |       |                          | 20,000      |       |        | 20                               |       |   | 59,980 |   |   | - |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| Reclass                  of accounts payable    |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| In                  June 2004                   |       |                          | -           |       |        | -                                |       |   | 69,783 |   |   | - |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| Rounding                  Shares due to         |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| 250                  to 1 reverse split         |       |                          | 286         |       |        | -                                |       |   | - |   |   | - |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| Net                  loss for the year ended    |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| December                  31, 2004              |       |                          | -           |       |        | -                                |       |   | - |   |   | (150,507 | ) |
|                                            |       |                          |        |       |        |                             |       |   |   |   |   |   |   |
| **Balance,                  December 31, 2004** | ** ** | ** $**                   | **200,049** | ** ** | ** $** | **200**                          | ** ** | ** $** | **922317** | ** ** | ** $** | **(748,217** | **)** |

----

**PNG        VENTURES, INC.**

|                                                                  |       | For                  the Years Ended December 31, |                     |       |        |
|-----------------------------------------------------------------------|------------|---------------------------------------------------|--------------------------|------------|-------------|
|                                                                  |       | 2004                                              |                     | 2003       |        | From                  Inception on June 23, 1995 through 2004 |   |
|                                                                  |       |                                              |                     |       |        |   |   |
| **CASH                  FLOW FROM OPERATING ACTIVITIES**              |       |                                              |                     |       |        |   |   |
|                                                                  |       |                                              |                     |       |        |   |   |
| Net                  loss                                             |       | $                                                 | (150,507                 | )          |  $     | (242,688 | ) |  $ | (748,217 | ) |
| Non-cash                  items:                                      |       |                                              |                     |       |        |   |   |   |   |   |
|                     Stock for services                      |       |                                              | 60,                  000 |       |        | 62,500 |   |   | -  |   |
|                     Conversion of payables                  |       |                                              | 39,981                   |       |        | -  |   |   | 39,981 |   |
|                     Changes in Investment Asset             |       |                                              | -                   |       |        | 47,197 |   |   | 47,197 |   |
| Changes                  in operating assets and liabilities:         |       |                                              |                     |       |        |   |   |   |   |   |
|                     Increase (decrease) in accounts payable |       |                                              | 3,290                    |       |        | -  |   |   | 276,884 |   |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| Net                  Cash Provided (Used) by Operating Activities     |       |                                              | (39                      | )          |        | (242,688 | ) |   | (321,655 | ) |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| **CASH                  FLOWS FORM INVESTING ACTIVITIES**             |       |                                              |                     |       |        |   |   |   |   |   |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| Cash                  paid for joint venture interest                 |       |                                              | -                   |       |        | (156,556 | ) |   | (224,986 | ) |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| Net                  Cash Paid for Investing Activities               |       |                                              | -                   |       |        | (156,556 | ) |   | (224,986 | ) |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES**             |       |                                              |                     |       |        |   |   |   |   |   |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| Proceeds                  from debt financing                         |       |                                              | -                        |       |        | 397,801 |   |   | 516,231 |   |
| Proceeds                  from issuance of common stock for cash      |       |                                              | -                   |       |        | -  |   |   | 30,410 |   |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| Net                  Cash Provided by Financing Activities            |       |                                              |  -                  |       |        | 397,801 |   |   | 546,641 |   |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| **NET                  INCREASE (DECREASE) IN CASH**                  |       |                                              | (39                      | )          |        | (1,443 | ) |   | - |   |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| **CASH                  AND CASH EQUIVALENTS AT**                     | ** ** | ** **                                        | ** **               | ** ** | ** **  | ** ** | ** ** | ** ** | ** ** | ** ** |
| **                      BEGINNING OF YEAR**       | ** ** | ** $**                                       | **39**                   | ** ** | ** $** | **1,482** | ** ** | ** ** | **-** | ** ** |
| **CASH                  AND CASH EQUIVALENTS AT**                     | ** ** | ** **                                        | ** **               | ** ** | ** **  | ** ** | ** ** | ** ** | ** ** | ** ** |
| **                      END OF YEAR**             |       |                                              | -                   |       |        | 39 |   |   | - |   |
|                                                                  |       |                                              |                     |       |        |   |   |   |   |   |
| **CASH                  PAID FOR:**                                   |       |                                              |                     |       |        |   |   |   |   |   |
|                     Interest                                |       |                                              | -                   |       |        | 470 |   |   | 630 |   |
|                     Income taxes                            |       |                                              |                     |       |        |   |   |   |   |   |

**        NON-CASH        FINANCING        ACTIVITIES**

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**PNG      VENTURES, INC.**

| NOTE                1 - | SUMMARY                OF ACCOUNTING POLICIES |
|-------------------------|-----------------------------------------------|

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|                                                                              |   |       |     | For                the Years Ended December 31,     |   |  From                Inception on June 23, 1995 through December 31, |   |   |     |
|-----------------------------------------------------------------------------------|--------|------------|----------|-------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|--------|----------|
|                                                                              |   |  2004 |     |  2003                                                              |   |  2004                                                                |   |   |     |
|  Numerator-loss                      |   | $          | (150,507 | )                                                                       | $      | (242,688                                                                  | )      | $      | (748,217 | ) |
|  Denominator-weighted              average number of shares outstanding      |   |       | 177,564  |                                                                    |   | 143.930                                                                   |   |   | 42,681   |   |
|  Loss              per share         |   | $          | (0.85    | )                                                                       | $      | (1.69                                                                     | )      | $      | (17.53   | ) |

| Deferred                tax assets |   | 2004 |     | 2003   |   |
|------------------------------------|--------|------|----------|--------|--------|
| NOL                carryforward    |   | $    | 254,394  |   |   | 84,394 |   |
| Valuation                allowance |   | $    | (254,394 | )      |   | (84,394 | ) |
| Total                              |   | $    | -        |   |   | - |   |

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| § | Telecommunications                  Technologies, Ltd. Articles of                  Incorporation*                            |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| § | Telecommunications                  Technologies, Ltd. Bylaws**                                                                                   |
| § | Plan                  of Reorganization and Tender***                                                                                             |
| § | Amendment                  to the Articles of Incorporation****                                                                                   |
| § | Paper                  Computer Corporation Financial Statements #                                                                                |
| § | PNG                  Ventures, Inc. Unaudited Financial Statements for the Quarter Ended                  March                  31, 2000 ##      |
| § | PNG                  Ventures, Inc. Unaudited Pro Forma Colidated Financial Statements                  as of                  March 31, 2000 ### |
| § | Paper                  Computer.com, Inc. Form 15 ####                                                                                            |
| § | Paper                  Computer Corporation Form 8-K r                                                                                            |

| *   | The                Articles of Incorporation were filed as Exhibit 2.1 in a Form 10-SB                filed                with the SEC on February 19, 2000 as SEC File Number 00029735 and                SEC Film                Number 557689.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **  | The                Bylaws were filed as Exhibit 2.4 in a Form 10-SB filed with the SEC                on                February 19, 2000 as SEC File Number 00029735 and SEC Film Number                557689.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| ***      | The                Plan of Reorganization (the "POR") was filed as an unnumbered exhibit                to                Form 10-SB filed with the SEC on February 19, 2000 as SEC File Number                00029735 and SEC Film Number 557689. The POR related to Telecommunications                Technologies, Ltd., a Nevada corporation, acquiring the assets of                Temple                Summit Management Corporation, a Texas corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ****     | The                Amendment to the Articles of Incorporation ("Amendment 1") is dated                February 20, 1998 and was filed with the SEC on February 19, 2000                as SEC                File Number 00029735 and SEC Film Number 557689. Amendment 1 changed                our                name to PNG Ventures, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| #        | The                Paper Computer Unaudited Financial Statements and the Notes to the                Financial Statements, relating to the period from the date of inception                (February 2, 2000) through March 31, 2000, were filed in a Form 8-K                with                the SEC on February 26, 2000 as SEC File Number 000-29735 and SEC                Film                Number 609256.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| ##       | The                PNG Ventures, Inc. Unaudited Financial Statements and Notes to the                Financial Statements for quarterly period ended March 31, 2000, were                included as Exhibit "00QF-1" in a Form 10-QSB file with the SEC on                April                27, 2000 (See SEC Film Number 000-29735 and SEC Film Number                610472).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ###      | The                Paper Computer Corporation (formerly PNG Ventures, Inc. and formerly                Telecommunications Technologies, Inc.) Unaudited Pro Forma Consolidated                Fiancnaisl Statements for the Period Ending March 31, 2000, were                filed as                an unnumbered item in a Form 8-K filed with the SEC on August 29,                2000                (See SEC Film Number 000-29735 and SEC Film Number 711585). This                Form 8-K                was filed pursuant to the issuance of 9,228,686 common shares (the                "Paper                Shares") in exchange for all of the shares of Paper Computer Corporation,                thereby resulting in Paper Computer Corporation becoming a wholly                owned                subsidiary of what was PNG Ventures, Inc. Pursuant to the terms of                the                agreement with Paper Computer Corporation (the private company),                immediately following the issuance of the Paper Shares, PNG changed                it's                name to Paper Computer Corporation, a Nevada corporation. Ultimately,                the                Paper Shares were not issued, and we filed a Form 8-K on June 15,                2001                which discussed the failure of the Paper Computer Corporation transaction. |
| ####     | A                Form 15 "Certification And Notice Of Termination Of Registration                Under                Section 12(G) Of The Securities Exchange Act Of 1934 Or Suspension                Of Duty                To File Reports Under Sections 13 And 15(D) Of The Securities Exchange                Act                Of 1934" was filed with the SEC as Commission File Number 0-29735                on June                12, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| r        | A                Form 8-K was filed with the SEC on June 15, 2001 (See SEC File Number                1664943). This Form 8-K discussed: (i) the failure of the Paper Computer                Corporation transaction and the cancellation of the previously referred                to                Paper Shares; (ii) a 3 for 1 forward split of our common stock effective                on June 6, 2000; (iii) a 2 for 1 reverse split of out common stock                effective as of June 15, 2001; (iv) John Spicer's election to our                Board of                Directors as the sole officer and director (at the time of his election)                and the payment to Mr. Spicer of 2,500 common shares in consideration                of                services valued at USD $5,000.00; (v) the then number of issued and                outstanding common shares (4,315,626) and the fact that Mr. Spicer                owned                2,500,000 of the issued and outstanding shares; and (vi) the fact                that as                of the date of the Form 8-K, only Miller M. Mays III and John Spicer                were                our directors.                                                                                                                                                                                             |

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