----

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|  IDAHO                                         |  82-0266517                    |
|---------------------------------------------------------------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PART I. CONSOLIDATED FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  3 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Financial Statements. (Unaudited) |  3 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |      Condensed Consolidated Balance Sheets |  3 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |      Condensed Consolidated Statements of Operations  |  4 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |      Condensed Consolidated Statements of Changes in Shareholders' Equity | 5 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |      Condensed Consolidated Statements of Cash Flows |  6 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |      Notes to Condensed Consolidated Financial Statements |  7 |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Management's Discussion and Analysis of Financial Condition and Plan of Operations |  17 |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Quantitative and Qualitative Disclosures About Market Risk |  20 |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Controls and Procedures |  20 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| PART II. OTHER INFORMATION                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |  22 |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Legal Proceedings |   |
| Item 1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Risk Factors |  22 |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Unregistered Sales of Equity Securities and Use of Proceeds |  22 |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | DefaultsUpon Senior Securities |  22 |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (Removed) |  22 |
| Item 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Other Information |  22 |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Exhibits |  22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| Signatures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  23 |

----

| ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY                                 |   |   |                                                                                  |
|---------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------|
|                                                                            |   |   |                                                                                  |   |   |   |
| CONDENSED CONSOLIDATED  BALANCE SHEETS                                |   |   |                                                                                  |
|                                                                            |   |   | March 31,                                                                             |   | December 31, |   |
|                                                                            |   |   | 2011                                                                                  |   | 2010 |   |
|                                                                            |   |   | (unaudited)                                                                           |   |   |   |
| ASSETS                                                                          |   |   |                                                                                  |   |   |   |
|                                                                            |   |   |                                                                                  |   |   |   |
| CURRENT ASSETS:                                                                 |   |   |                                                                                  |   |   |   |
|       Cash and cash equivalents                   |   |   |  $          271,744            |   |  $          442,812 |   |
|       Accounts receivable                         |   |   |              549,500 |   |              277,636 |   |
|       Inventory, net                              |   |   |              543,939 |   |              206,563 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|         Total current assets            |   |   |           1,365,183                 |   |              927,011 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|  FIXED ASSETS, NET                                                         |   |   | 152,675                                                                               |   | 158,329 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|  OTHER ASSETS                                                              |   |   | 13,695                                                                                |   | 13,695 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|     Total assets                                            |   |   |  $       1,531,553                            |   |  $       1,099,035 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|  LIABILITIES AND SHAREHOLDERS' EQUITY                                      |   |   |                                                                                  |   |   |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|  CURRENT LIABILITIES:                                                      |   |   |                                                                                  |   |   |   |
|        Accounts payable and accrued expenses |   |   |  $       1,315,738                            |   |  $          987,083 |   |
|         Current portion of note payable |   |   | 39,756                                                                                |   | 30,836 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|         Total current liabilities       |   |   |           1,355,494                 |   |           1,017,919 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|    LONG TERM NOTE PAYABLE                                        |   |   | 22,482                                                                                |   | 41,027 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|         Total liabilities               |   |   |           1,377,976                 |   |           1,058,946 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|  COMMITMENTS AND CONTINGENCIES                                             |   |   |                                                                                  |   |   |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|  SHAREHOLDERS' EQUITY                                                      |   |   |                                                                                  |   |   |   |
|  Common stock, $.001 par value, 42,750,000 shares authorized;              |   |   |                                                                                  |   |   |
|  31,590,497 shared issued and outstanding as of March 31, 2011             |   |   |                                                                                  |   |   |
|  and December 31, 2010                                                     |   |   | 31,591                                                                                |   | 31,591 |   |
|  Additional paid-in capital                                                |   |   | 13,479,038                                                                            |   | 13,479,038 |   |
|  Deferred compensation                                                     |   |   | (640,511)                                                                             |   | (855,000) |   |
|  Accumulated deficit                                                       |   |   | (12,716,541)                                                                          |   | (12,615,540) |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|         Total shareholders' equity      |   |   |              153,577 |   |                40,089 |   |
|                                                                            |   |   |                                                                                  |   |   |   |
|  Total liabilities and shareholders' equity                                |   |   |  $       1,531,553                            |   |  $       1,099,035 |   |

----

| ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY                                                                          |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                                          |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (unaudited)                                                           |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
|                                                                                                                     |                                                                                                                                                       | Three Months Ended March 31,                                                                                                                               |                                                                                                                                        |   |   |
|                                                                                                                     |                                                                                                                                                       | 2011                                                                                                                                                       |                                                                                                                                        | 2010 |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| Revenues, net                                                                                                            |                                                                                                                                                       |  $               723,855                                                   |                                                                                                                                        |  $                  39,000 |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| Cost of goods sold                                                                                                       |                                                                                                                                                       |                   245,847                                        |                                                                                                                                        |                                - |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| Gross profit                                                                                                             |                                                                                                                                                       |                   478,008                                        |                                                                                                                                        |                      39,000 |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| Costs and expenses:                                                                                                      |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
|       General and administrative                                                           |                                                                                                                                                       |                   462,040                                        |                                                                                                                                        |                    122,769 |   |   |   |
|       Research and development                                                             |                                                                                                                                                       |                   115,509                                        |                                                                                                                                        |                    110,988 |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
|                 Total costs and expenses |                                                                                                                                                       |                   577,549                                        |                                                                                                                                        |                    233,757 |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| Loss from operations                                                                                                     |                                                                                                                                                       |                   (99,541)                                       |                                                                                                                                        |                   (194,757) |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| Other (income) expenses:                                                                                                 |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
|       Interest income                                                                      |                                                                                                                                                       | 0                                                                                                                                                          |                                                                                                                                        | 6 |   |   |   |
|       Interest expense                                                                     |                                                                                                                                                       |                     (1,459)                            |                                                                                                                                        |                       (2,241) |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
|               Total other expense                  |                                                                                                                                                       |                     (1,459)                            |                                                                                                                                        |                       (2,235) |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| NET LOSS                                                                                                                 |                                                                                                                                                       |  $             (101,000)                                                             |                                                                                                                                        |  $               (196,992) |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| Weighted average number of common shares                                                                                 |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |
|    outstanding-basic and diluted                                                                          |                                                                                                                                                       |                         31,590,497 |                                                                                                                                        |               25,507,883 |   |   |   |
|                                                                                                                     |                                                                                                                                                       |                                                                                                                                                       |                                                                                                                                        |   |   |   |   |
| Loss per common share - basic and diluted                                                                                |  $                        (0) |                                                                                                                                                       |  $                     (0.01) |   |   |   |

----

|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |
|----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------|--------|---------------------------------------------------------------|
|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |
| ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY                      |                                                                                                    |   |                                                                                              |   |
| CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY |                                                                                                    |   |                                                                                              |   |
| FOR THE THREE MONTHS ENDED MARCH 31, 2011                            |                                                                                                    |   |                                                                                              |   |
| (Unaudited)                                                          |                                                                                                    |   |                                                                                              |   |
|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |
|                                                                 |                                                                                                    |   |                                                                                              |   | Additional                                                                                                          |   |                                                                                                    |    |                                                            |   |                                                          |
|                                                                 | Common Stock                                                                                            |   | Paid-in                                                                                           |   | Deferred                                                                                                            |   | Accumulated                                                                                             |    |                                                            |
|                                                                 | Shares                                                                                                  |   | Amount                                                                                            |   | Capital                                                                                                             |   | Compensation                                                                                            | Deficit |                                                            | Total  |
|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |
| Balance - January 1, 2011                                            |   31,590,497                                                                                  |   |  $      31,591                                                 |   |  $ 13,479,038                                                                                                  |   |  $   (855,000)                                                                      |    |  $ (12,615,540)                                            |   |  $        40,089 |
|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |
| Amortization of deffered compensation                                |   -                                                                                                |   |   -                                                                                          |   |   -                                                                                                            |   |         214,488                                                 |    |   -                                                        |   |          214,488 |
|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |
| Net loss                                                             |                  - |   |                 - |   |                    - |   |                  - |    |          (101,000) |   |         (101,000)     |
|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |
| Balance - March 31, 2011                                             |   31,590,497                                                                                  |   |  $      31,591                                                 |   |  $ 13,479,038                                                                                                  |   |  $   (640,512)                                                                      |    |  $ (12,716,540)                                            |   |  $      153,577            |
|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |
|                                                                 |                                                                                                    |   |                                                                                              |   |                                                                                                                |   |                                                                                                    |    |                                                            |   |                                                          |

----

| ENVIRO VORAXIAL TECHNOLOGY, INC. AND SUBSIDIARY                                                                 |   |                                                                                                                                   |   |                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                 |   |                                                                                                                                   |   |                                                                                                                       |
|   (Unaudited)                                                                                              |   |                                                                                                                                   |   |                                                                                                                       |
|                                                                                                            |   | Three Months Ended March 31,                                                                                                           |   |                                                                                                                       |   |
|                                                                                                            |   | 2011                                                                                                                                   |   | 2010                                                                                                                       |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
| Cash Flows From Operating Activities:                                                                           |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
| Net loss                                                                                                        |   |  $        (101,000)                                                                       |   |  $      (196,992)                                                                       |   |   |   |
| Adjustments to reconcile net loss to net                                                                        |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|   cash used by operating activities:                                                                       |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|       Depreciation                                                                |   |                  5,654                            |   |                5,662                            |   |   |   |
|       Deferred compensation                                                            |   |              214,489                                                  |   |              13,333                                       |   |   |   |
| Changes in assets and liabilities:                                                                              |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|       Accounts receivable                                                              |   |            (271,864)                                                            |   |                     -  |   |   |   |
|       Inventory                                                                        |   |            (337,376)                                                            |   |            (12,648)                                                 |   |   |   |
|       Accounts payable and accrued expenses                                            |   |              328,655                                                  |   |              83,061                                       |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|           Net cash used in operating activities                    |   |            (161,442)                                                            |   |          (107,584)                                                            |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
| Cash Flows From Investing Activities:                                                                           |   |                       -  |   |                     -  |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
| Cash Flows From Financing Activities:                                                                           |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|    Repayments toward notes payable                                                               |   |                (9,626)                                      |   |              (8,844)                                      |   |   |   |
|    Proceeds from sales of common stock                                                           |   |                       -  |   |            112,500                                                  |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|           Net cash (used in) provided by financing activities |   |                (9,626)                                      |   |            103,656                                                  |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|    Net (decrease) in cash and cash equivalents                                                   |   |            (171,068)                                                            |   |              (3,928)                                      |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|    Cash and cash equivalents, beginning of period                                                     |   |              442,812                                                  |   |              59,110                                       |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|    Cash and cash equivalents, end of period                                                           |   |  $          271,744                                                             |   |  $          55,182                                                  |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
| Supplemental Disclosures                                                                                        |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|                                                                                                            |   |                                                                                                                                   |   |                                                                                                                       |   |   |   |
|    Cash paid during the year for interest                                                             |   |  $              1,459                                       |   |  $            2,241                                       |   |   |   |
|    Cash paid during the year for taxes                                                                |   |  $                     - |   |  $                   - |   |   |   |

----

----

----

----

|             Warrants       | 2,024,982        |
|---------------------------------------------------------------------------------------------|------------------|
|              Stock options | 9,250,000        |
|                                                                                        |  11,274,982 |

----

----

----

|                                      |   |   |   | March 31, 2011                | December 31, 2010                               |
|-------------------------------------------|--------|--------|--------|-------------------------------|-------------------------------------------------|
|                                      |   |   |   | (Unaudited)                   |                                            |
| Machinery and equipment                   |   |   | $      | 495,372                       | $  495,372                            |
| Furniture and fixtures                    |   |   |   |   14,498            |      14,498            |
| Autos and Trucks                          |   |   |   |     5,294 |        5,294 |
| Total                                     |   |   |   | 515,164                       |     515,164                 |
| Less:  accumulated depreciation |   |   |   | (362,489)                     |     (356,835)               |
| Fixed Assets, net                         |   |   | $      | 152,675                       | $  158,329                            |

|                                                                                                                                                                          |          | March 31,2011      |          |  December 31, 2010 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------------------|---------------|-------------------------|
|                                                                                                                                                                          |          |  (Unaudited)  |          |                    |
| Notes payable to finance companies, due in monthly installments of $3,695, including principal and interest at prime plus .25%  collateralized by certain equipment |   $ |   62,238 |   $ |   77,556      |
|                                                                                                                                                                          |          |               |          |                    |
| Less current portion                                                                                                                                                          |          |  (39,756)     |          | (30,836)                |
| Long term debt                                                                                                                                                                | $             | 22,482             | $             | 41,020                  |

----

----

|                     | NumberOutstanding | Range of Exercise Price | NumberExercisable |
|--------------------------|-------------------|-------------------------|-------------------|
|                     |              |                    |              |
| Balance, January 1, 2011 | 2,024,982         | $0.83                   | 2,024,982         |
| Issued                   | -                 | -                       | -                 |
| Exercised                | -                 | -                       | -                 |
| Expired                  | -                 | --                      | -                 |
| Balance, March 31, 2011  | 2,024,982         | $0.83                   | 2,024,982         |

| ExercisePrice | Number Outstanding at March 31, 2011    | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Number Exercisable at March 31, 2011 | Weighted Average Exercise Price |
|---------------|-----------------------------------------|---------------------------------------------|---------------------------------|--------------------------------------|---------------------------------|
|          |                                    |                                        |                            |                                 |                            |
| $0.77         | 200,000                                 | .75                                         | $0.77                           | 200,000                              | $0.77                           |
| $0.15         | 2,000,000                               | 2.00                                        | $0.15                           | 2,000,000                            | $0.15                           |
| $0.40         | 2,350,000                               | 1.00                                        | $0.40                           | 2,350,000                            | $0.40                           |
| $0.68         |      4,700,000 | 2.5                                         | $0.68                           | 4,300,000                            | $0.68                           |
|          | 9,250,000                               |                                        |                            | 8,850,000                            |                            |

----

|                     | NumberOutstanding | Range of Exercise Price | NumberExercisable |
|--------------------------|-------------------|-------------------------|-------------------|
|                     |              |                    |              |
| Balance, January 1, 2011 | 9,295,000         | $0.15 - $1.00           | 4,595,000         |
| Issued                   | -                 | -                       | 4,300,000         |
| Exercised                | 0                 | 0                       | 0                 |
| Expired                  | (45,000)          | $0.30                   | (45,000)          |
| Balance, March 31, 2011  | 9,250,000         | $0.83                   | 8,850,000         |

----

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