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UNITED STATESSECURITIES
AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-KSB

(Mark one)

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

For the fiscal year ended February 28, 2006

OR

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

Commission file number: 000-33149

TRANSNATIONAL AUTOMOTIVE
GROUP,INC.(formerly Apache Motor
Corporation)(Name of small business issuer in its charter)

|Nevada                                                               | **76-0603927**                      
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)
|                                                                     |                                     
|Columbia Tower                                                       |                                     
|701 5thAvenue, Suite 4200                                            | **(206) 262-7413**                  
|Seattle, WA 98104                                                    | (Registrant's phone number)         
|(Address of principal executive offices)                             |                                     

|Securities registered under Section 12(b) of the Act: | None.                                         
|----------------------------------------------------- | ----------------------------------------------
|                                                      |                                               
|Securities registered under Section 12(g) of the Act: | Common Stock, par value $0.001 per
      share
|                                                      | (Title of class)                              

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

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

Registrant's revenues for its most recent fiscal year: $nil

As of May 24, 2006, the aggregate market value of the voting
common equity held by non-affiliates of the registrant was approximately
$56,040,001 based on the closing trade reported on the NASD Over-the-Counter
Bulletin Board National Quotation System. Shares of common stock held by
each officer and director and by each person who owns five percent or more
of the outstanding common stock have been excluded from this calculation as such
persons may be considered to be affiliated with the Company.

On May 24,2006 the registrant had 50,685,715 shares of Common
stock, (0.001 par value per share) issued and outstanding.

Documents incorporated by reference: None

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

1

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TRANSNATIONALAUTOMOTIVEGROUP,INC.(formerly Apache Motor Corporation) Index to
Annual Report on Form 10-KSB For the Year Ended February 28, 2006

|Part I   |                                                                                                                             | Page
|-------- | --------------------------------------------------------------------------------------------------------------------------- | ----
|         |                                                                                                                             |     
|Item 1   | Description of Business                                                                                                     | 3   
|Item 2   | Description of Property                                                                                                     | 6   
|Item 3   | Legal Proceedings                                                                                                           | 6   
|Item 4   | Submission of Matters to a Vote of Security
      Holders                                                                   | 6   
|         |                                                                                                                             |     
|Part II  |                                                                                                                             |     
|Item 5   | Market for Common Equity
      and Related Stockholder Matters                                                              | 6   
|Item 6   | Management's Discussion and Analysis of Financial
      Condition or Plan of Operation                                      | 8   
|Item 7   | Financial Statements                                                                                                        | 11  
|Item 8   | Changes In and Disagreements With Accountants
      on Accounting and Financial Disclosure                                  | 23  
|Item 8A  | Controls and Procedures                                                                                                     | 23  
|Item 8B  | Other Information                                                                                                           | 23  
|         |                                                                                                                             |     
|Part III |                                                                                                                             |     
|Item 9   | Directors, Executive Officers,
      Promoters and Control Persons; Compliance With Section 16(a) of the Exchange
      Act | 24  
|Item 10  | Executive Compensation                                                                                                      | 24  
|Item 11  | Security Ownership of Certain
      Beneficial Owners and Management                                                        | 24  
|Item 12  | Certain Relationships and Related Transactions                                                                              | 25  
|Item 13  | Exhibits and Reports on
      Form 8-K                                                                                      | 25  
|Item 14  | Principal Accountants Fees and Services                                                                                     | 25  
|         |                                                                                                                             |     
|         | Signatures                                                                                                                  | 26  

2

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PART I

ITEM 1. DESCRIPTION OF BUSINESS

CORPORATE BACKGROUND

Transnational Automotive Group, Inc. ("The Company" or TAUG)
was incorporated April 2, 1999 in the State of Nevada as Vitaminoverrun.com
Corp. and in August 2001 changed its name to Apache Motor Corporation Inc. In
November 2005 the Company changed its name to Transnational Automotive Group,
Inc.

On September 7, 2005, the Company signed a Letter of Intent to
acquire 100% of Parker Automotive Group International, Inc., (Parker or
PAGI) including PAGIs subsidiary companies and other assets following the
initial acquisition.

Parker is a transportation management, sales and manufacturing
company that has been established through key acquisitions of transportation and
automotive businesses. It is headquartered in Seattle, Washington with initial
international operations rollout planned in Cameroon and Niger. The companys
business purpose is to establish a new paradigm for the transportation industry
of Central and West Africa and other emerging economies by developing and
operating urban and rural transportations systems, and also researching,
commercializing and manufacturing next generation low-cost and energy efficient
engines, parts and vehicles. The company intends to locate different
manufacturing sites in the various foreign countries in which it sells its
products, as well as assume management of certain government-run transportation
infrastructure.

On October 28, 2005 the Company entered into an Agreement and
Plan of Exchange with Parker.

Under the terms of the Agreement and Plan of Exchange, Parker
agreed to be acquired by the Company by exchanging all of its outstanding Common
Stock for twenty four million (24,000,000) shares of common stock of the
Company.

On October 28, 2005 the Company issued 24,000,000 shares of
common stock to the two shareholders of Parker in exchange for all of the
outstanding shares of Parker.

On October 12, 2005 PAGI signed an Agreement with the
Government of Cameroon. The Company commenced operations in Cameroon in late
November to develop the urban bus transportation system under a company called
Parker Transportation Inc., Cameroon (PTIC) (66% owned by TAUG and the
remaining 34% owned by various Cameroonian governmental bodies). The efforts to
date in Cameroon have focused on cleaning-up and restoring the primary bus depot
located in the capital city of Yaoundé, establishing urban routes, readying
roadways and bus stops, preparing the maintenance facility; completing
administrative matters such as opening bank accounts, securing operating
licenses, recruiting and screening administrative staff, bus drivers, mechanics
and security personnel.

On December 22, 2005, the Government of Cameroon contributed
$1,000,000 of their $1,800,000 cash commitment under the terms of the agreement
with the Company, and is currently processing the transfer of the remaining
$800,000 cash commitment, as well as the transfer of certain real estate assets.

On December 11, 2005 the Board of Directors of the Company
approved amendments to the Articles of Incorporation of Apache Motor Corporation
to (1) change the name to Transnational Automotive Group Inc., and (2) to
increase the number of authorized shares of common stock from 100,000,000 to
200,000,000 and to increase the number of authorized shares of preferred stock
from 20,000,000 to 100,000,000. These amendments were later approved by a
majority of the shareholders of the Company.

3

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On January 12, 2006 the Company changed its name from Apache
Motor Corporation to Transnational Automotive Group, Inc. The new stock symbol
is TAMG.

Subsequent to February 28, 2006:

March 15, 2006 the Company began implementation of an Agreement
with the government of the Republic of Cameroon to provide urban bus
transportation to cities throughout the country and to provide bus
transportation between the cities. Under the terms of the Agreement Parker
Transnational Industries  Cameroon (PTIC) was established to operate the bus
system. PTIC is owned 66% by the Company and 34% by the City of Yaoundé and the
Cameroon Ministry of Hydrocarbons.

In Cameroon, urbanites have been without urban bus
transportation for over 15 years. Under the terms of the Agreement signed on
October 12, 2005, the Company, through PTIC, will initially provide bus service
in the capital city of Yaoundé, and then subsequently provide service in the
port city of Douala followed by similar service in other urban centers.

The city of Yaoundé also delivered to PTIC an agreement for the
use of the Yaoundé city bus depot and office building used by the previous bus
operator. The depot is currently being renovated and prepared to service the new
bus fleet. The bus depot and office building have an estimated value of $5.5M
USD.

The Agreement specifies that the government will contribute
other significant urban properties to PTIC and further enhance the underlying
asset value of the venture.

LeBus is the brand name given to PTIC for its urban
transportation system.

Subsequent to 28 February 2006 PTIC operating as LeBus has
accomplished the following:

| | 1. | LeBus began the start-up phase for establishing an urban
      bus transportation system in the Capital city of Yaoundé in Cameroon in
      January 2006.                                                         
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                    
| | 2. | LeBus has completed its planning and has gained consensus
      from the Ministry of Transport and the Yaoundé Urban Council for the bus
      routes in Yaoundé.                                                  
| |    |                                                                                                                                                                                                                    
| | 3. | LeBus has completed recruiting, screening and the
      selection process for the first 70 drivers for the Yaoundé bus
    system.                                                                                 
| |    |                                                                                                                                                                                                                    
| | 4. | LeBus has completed the creation of its training program
      for bus drivers.                                                                                                                                    
| |    |                                                                                                                                                                                                                    
| | 5. | LeBus has completed the first phase of the clean-up and
      renovation of the bus depot that the Government provided to PTIC to house,
      support and maintain the city buses.                                
| |    |                                                                                                                                                                                                                    
| | 6. | The Government of Cameroon has earmarked $1,000,000 USD
      for the refurbishment and renovation of the bus depot facility.                                                                                      
| |    |                                                                                                                                                                                                                    
| | 7. | In addition to the bus depot the Government of Cameroon
      has indicated that it is ready to turn over its Ministerial Building
      Number 1 to PTIC as part of the Government of Cameroons
    contribution.
| |    |                                                                                                                                                                                                                    
| | 8. | Seventeen city buses have been manufactured and are
      scheduled to load in Shanghai during the first week of June 2006 for
      shipment to Cameroon.                                                         

4

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LeCar is the brand name given to the Companys inter urban
coach bus business in Cameroon. The Company is preparing to enter into the
inter-urban bus market in Cameroon by opening up a service between the Capital
city of Yaoundé and the business center of Douala.

The following has been accomplished by PTIC operating as
LeCar:

| | 1. | The feasibility study and business plan for the first
      phase of this business has been completed.  
| | -- | --------------------------------------------------------------------------------------------------------
| |    |                                                                                                         
| | 2. | The first 11 coaches (inter-city buses) have been
      manufactured and ready for shipment to Cameroon.
| |    |                                                                                                         
| | 3. | A funding organization in Cameroon has expressed serious
      interest in funding the venture.         

On April 5, 2006 PTIC signed a Memorandum of Understanding
(MOU) with the Zonda Industrial Group of China for the provision of buses, bus
parts, vehicle assembly and sales in Africa, international promotion and sales
of Zonda vehicles and automotive technical cooperation.

The Zonda Group is a Chinese industrial concern that
manufactures buses, automotive tooling and equipment and industrial goods. It is
ranked 705 of the 1000 largest Chinese companies and is the 10th
largest equipment manufacturer in the country. Zonda recently won an award at
the Shanghai BusWorld Asia 2006 Exhibition for the best bus appearance design.

The Company contracted to purchase the 28 buses for LeBus and
LeCar from Zonda for its African operations. The Company has committed to
provide over 540 vehicles scheduled for assembly and delivery to Cameroon over
the next year to support the first phase of the public transport contract it
signed with the Cameroon government in October 2005. The first phase includes
the establishment of an urban transport system in the Capital of Yaoundé. The
entire contract ultimately calls for a transport system for all Cameroon urban
centers.

On April 4, 2006 the Company entered into discussions with and
a Letter of Intent with Parker Transnational Industries, LLC (PTI), a private
company owned by the family of a director and officer of Transnational
Automotive Group, Inc., to negotiate PTIs interest in Bonanza Estates S.A., a
real estate and management company, and Bonanza Estates, a company that controls
a 500 acre parcel (210 hectares) located in the Limbe area of Cameroon. The
acquisition of this interest in the Bonanza Estates property would involve the
exchange of approximately 3.8 million shares of the Companys common stock.

The Bonanza Estates property consists of 500 acres of land
fronting a seafront beach shoreline of approximately 1800 yards. The property
currently has an oceanfront hotel, an active palm oil plantation, two rock
quarries and a rainforest and holds an Industrial Free Zone status. In addition
the property is located near a proposed deep water port, which is currently
under construction in Limbe.

Funding Its Business Plan

As discussed more fully in the Management's Discussion and
Analysis - Liquidity and Capital Resources section, the expenses of implementing
the Company's business plan will exceed the Company's current resources. The
Company will have to obtain additional funding through an offering of its
securities or through capital contributions from its stockholders. No
commitments to provide additional funds have been made by management or
stockholders. Accordingly, there can be no assurance that any additional funds
will be available on terms acceptable to the Company, if at all.

5

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Intellectual Property

The nature of patent and trademark registration is very complex
and requires legal expertise. To date, no applications have been prepared to
patent any of the companys assets or concepts.

Government Regulation

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

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

In Cameroon, the Company has incorporated two subsidiaries.
These subsidiary companies are subject to the laws and regulations of the
Republic of Cameroon. Additionally, Cameroon is a signatory to the Organization
for the Harmonization of Business Law in Africa or the OHADA treaty.
International business disputes or arbitration is conducted in the OHADA courts
located in the Ivory Coast.

Employees

The Company utilizes part-time and full-time outside
consultants and contractors for operational purposes. At February 28, 2006 there
were 7 consultants working in the Seattle office. The Company is recruiting
further employees to manage, drive and maintain its new buses in Cameroon which
are expected to be delivered in July 2006. Additionally, the Company has relied
on its officers and directors for operational purposes.

ITEM 2. DESCRIPTION OF PROPERTY

The executive offices are located at: 701 5th
Avenue, Suite 4200, Seattle WA 98104.

ITEM 3. LEGAL PROCEEDINGS

To the knowledge of the Companys executive management and
directors, the Company is not party to any pending legal proceeding or
litigation and none of its property is the subject of a pending legal proceeding
and the executive officers and directors know of no other threatened or
contemplated legal proceedings or litigation.

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

NONE

PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS

6

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The Companys common stock was approved for trading on the
Over-the-Counter Bulletin Board (OTC:BB) under the symbol APHC on May 11, 1998.
On June 7, 2004 the Company completed a 1:75 reverse stock split and traded
under the symbol ACHO. On January 12, 2006 the Company changed its name from
Apache Motor Corporation to Transnational Automotive Group, Inc. The new stock
symbol is TAMG.

The table set forth below reflects the reported high and low
bid prices of the Common Stock for each quarter for the period indicated. Such
prices are inter dealer prices without retail mark ups, mark downs or
commissions and may not represent actual transactions.

QUARTER ENDED
    HIGH
    LOW(Post reverse split prices)February 28, 2003
    0.002
    0.002May 31, 2003
    0.008
    0.008August 31, 2003
    0.01
    0.01November 30, 2003
    0.001
    0.001February 28, 2004
    0.001
    0.001May 31, 2004
    0.000
    0.000August 31, 2004
    0.002
    0.002November 30, 2004
    0.004
    0.002February 28, 2005
    0.007
    0.007May 31, 2005
    0.45
    0.45August 31, 2005
    0.36
    0.36November 30, 2005
    0.87
    0.85February 28, 2006
    4.00
    3.50


The Company has not paid dividends in prior years and has no
plans to pay dividends in the near future. The Company intends to reinvest its
earnings, if any are achieved, in the continued development and operation of its
business. Any payment of dividends would depend upon the Company's pattern of
growth, profitability, financial condition, and such other factors as the Board
of Directors may deem relevant.

The Company has 390 shareholders of record.

RECENT SALES OF UNREGISTERED SECURITIES

On September 7, 2005, 1,241,202 shares (post split) of common
stock valued at $0.01 were issued to repay debts that were reinstated during the
quarter. This issuance was exempted from registration under Section 4(2) of the
Securities Act as a transaction not involving a public offering.

On October 27, 2005, the Company issued 400,000 post two for
one forward split common stock valued at $0.25 to Parker Automotive Group
International, Inc., a subsidiary of the Company, in repayment of their
Convertible Promissory Note for $100,000 USD.These shares were issued
pursuant to Section 4(2) as a transaction not involving a public offering.

On October 28, 2005 the Company issued 24,000,000 post two for
one forward split restricted shares of common stock to the two shareholders of
Parker in exchange for all of the outstanding shares of Parker. These shares
were issued pursuant to Section 4(2) as a transaction not involving a public
offering.

On December 1, 2005, the Company issued 285,715 post two for
one forward split restricted shares of common stock for $100,000. These shares
were issued pursuant to Regulation S.

7

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On February 28, 2006, the Company received $100,000 in
subscription for 287,915 post two for one forward split restricted shares of
common stock, which were issued subsequent to February 28, 2006. These shares
were issued pursuant to Regulation S.

During the period September 1, 2005 through February 28, 2006
the Company borrowed $458,000 through the issuance of convertible debentures and
promissory notes payable.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION OR PLAN OFOPERATION

Certain statements in this report and elsewhere (such as in
other filings by the Company with the Securities and Exchange Commission
("SEC"), press releases, presentations by the Company of its management and oral
statements) may constitute "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," "estimates," and
"should," and variations of these words and similar expressions, are intended to
identify these forward-looking statements. Actual results may materially differ
from any forward-looking statements. Factors that might cause or contribute to
such differences include, among others, competitive pressures and constantly
changing technology and market acceptance of the Company's products and
services. The Company undertakes no obligation to publicly release the result of
any revisions to these forward-looking statements, which may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

Plan of Operation

During the period from April 2, 1999 (date of inception of Vitaminoverrun.com
  Corp.) through February 28, 2006, the Company engaged in no significant operations
  other than organization activities and research and development. The Company
  received no revenues. For the year ended February 28, 2006, the company incurred
  a loss in the amount of $1,443,380 compared to a loss of $220,651 in the previous
  year. Most of the expenses incurred both years were for office and administrative
  and consulting fees provided to the Company for the purpose of increasing the
  Company’s business presence and effort to develop its business plan. During
  the year ended February 28, 2006 the Company incurred amalgamation, merger and
  acquisition costs of $717,052 (nil $ for 2005). For the 2005 and 2006 fiscal
  years, the Company expended $71,383 in 2005 and $179,930 in 2006 for office
  and administration costs, $12,452 in 2005 and $nil in 2006 for research and
  development costs, plus $98,483 in 2005 and $146,137 in 2006 for professional
  and consulting costs. During the year the Company leased space in Seattle, Washington
  for its head office, incurring rent of $108,749 (nil $ for 2005). The costs
  were financed by accounts payable and loans payable

Engine Business

The Company's principal business objective with respect to the
production of engines was to complete the research and development of the radial
engine begun by Transnational Automotive Group, Inc. (formerly Apache Motor
Corporation) and then to manufacture and market it. The Company is continuing
its discussions with 3D Environment Technology of Nevada with respect to the
development of a combined technology that would incorporate Apaches radial
engine technology and 3D Environment Technologys electromagnetic engine
project. The goal of management is to ultimately license the new combined
radial/electromagnetic engine technology to manufacturers of next generation
electric cars.

Transportation Business

The Company is focusing its resources on transportation
management, technology and sales. With the acquisition of Parker Transnational
Industries the company is now a transportation management, technology, sales and
manufacturing company that has been established through key acquisitions of
transportation and automotive businesses and advanced systems. It is
headquartered in Seattle,

8

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Washington with initial international operations rollout
planned in Cameroon. The Companys business purpose is to establish a new
paradigm for the transportation industry of Central and West Africa and other
emerging economies by developing and operating urban and rural transportations
systems, and also researching, commercializing and manufacturing next generation
low-cost and energy efficient engines, parts and vehicles. The Company
ultimately intends to locate different manufacturing sites in the various
foreign countries in which it sells its products, as well as assume management
of certain government-run transportation infrastructure.

The Company anticipates that its subsidiary operations in
Cameroon will begin to generate revenues by September 2006. However, the Company
as a whole may continue to operate at a loss for an indeterminate period
thereafter, depending upon the performance of its businesses. In the process of
carrying out its business plan, the Company will continue its funding activities
with identified financial partners/investors. However, it may determine that it
cannot raise sufficient capital to support its business on acceptable terms, or
at all. Accordingly, there can be no assurance that any additional funds will be
available on terms acceptable to the Company or at all.

Liquidity and Capital Resources

The Company has financed its expenses and costs thus far
through financing and through the increase in its accounts payable, payments
made by others for the company and by the settlement of the payable amounts with
shares of common stock of the Company As of February 28, 2006, the Company had a
working capital deficit of $667,608 compared to a working capital deficit of
$68,561 at February 28, 2005. The Company plans to utilize debt and/or equity
financing to fund its short-term and long-term needs. The availability of future
financings will depend on market conditions. A portion of the funds may be used
to grow the business through acquisition of other businesses. There can be no
assurance that the Company will be able to continue as a going concern or
achieve material revenues or profitable operations.

For the most recent fiscal year, 2006, the Company incurred a
loss in the amount of ($1,443,780) compared to a loss of ($220,651) in 2005.
Both years losses are a result of organizational expenses and expenses
associated with setting up a Company structure in order to begin implementing
its business plan. The Company anticipates that until these procedures are
completed, it will not generate revenues, and may continue to operate at a loss
thereafter, depending upon the performance of the business.

During the period from April 2, 1999 (date of incorporation)
through February 28, 2006, the Company has incurred an accumulated net loss of
($2,560,927), has not attained profitable operations and is dependent upon
obtaining adequate financing to fulfill its development activities.

No material commitments for capital expenditures were made
during the years ended February 28, 2006 or 2005 with the exception of the
deposit and agreement to acquire 28 buses for operations in Cameroon.

The accompanying financial statements have been prepared
assuming the Company will continue as a going concern.

As shown in the accompanying financial statements, the Company
has incurred a net loss of $2,560,927 for the period from Inception, April 2,
1999 to February 28, 2006, and has no sales. The future of the Company is
dependent upon its ability to obtain financing and upon future profitable
operations from the development of its services. Management has plans to utilize
debt and/or equity financing to fund its short-term and long-term needs. The
financial statements do not include any adjustments relating to the
recoverability and classification of recorded assets, or the amounts of and
classification of liabilities that might be necessary in the event the Company
cannot continue in existence.

9

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The Company anticipates operating expenditures for the year
ended February 2007 to be $2,500,000 and it is anticipated this will be financed
through private placements, loans and anticipated future revenues.

ITEM 7. CONSOLIDATED FINANCIAL STATEMENTS

|Report
        of Independent Registered Public Accounting Firm                                                                                                                              | 11
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --
|                                                                                                                                                                                             |   
|Consolidated
        Balance Sheets as at February 28, 2006 and 2005                                                                                                                         | 12
|                                                                                                                                                                                             |   
|Consolidated
        Statements of Operations for the years ended February 28, 2006 and 2005,
        and for the period from April 2, 1999 (Date of Inception) to February
        28, 2006 | 13
|                                                                                                                                                                                             |   
|Consolidated
        Statement of Changes in Stockholders (Deficit) Equity for the period
        from April 2, 1999 (Date of Inception) to February 28, 2006                               | 14
|                                                                                                                                                                                             |   
|Consolidated
        Statement of Cash Flows for the years ended February 28, 2006, and 2005,
        and for the Period from April 2, 1999 (Date of Inception) to February
        28, 2006 | 15
|                                                                                                                                                                                             |   
|Notes
        to Consolidated Financial Statements                                                                                                                                           | 16

10

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF TRANSNATIONAL
AUTOMOTIVE GROUP, INC. (formerly Apache Motor Corporation) (A Development
Stage Company)

We have audited the consolidated balance sheets of Transnational
  Automotive Group, Inc. (formerly Apache Motor Corporation) (a development stage
  company) as at February 28, 2006 and 2005, and the consolidated statements of
  operations, changes in stockholders’ equity (deficit) and cash flows for
  the years ended February 28, 2006 and 2005, and the cumulative totals for the
  development stage operation from April 2, 1999 (inception) through February
  28, 2006. These financial statements are the responsibility of the Company's
  management. Our responsibility is to express an opinion on these financial statements
  based on our audits.
  We conducted our audits in accordance with the standards of the Public Company
  Accounting Oversight Board (United States). Those standards require that we
  plan and perform an audit to obtain reasonable assurance whether the financial
  statements are free of material misstatement. An audit includes examining, on
  a test basis, evidence supporting the amounts and disclosures in the financial
  statements. An audit also includes assessing the accounting principles used
  and significant estimates made by management, as well as evaluating the overall
  financial statement presentation. We believe that our audits provide a reasonable
  basis for our opinion.

In our opinion, the financial statements referred to above present fairly,
  in all material respects, the financial position of the Company as at February
  28, 2006 and 2005 and the results of its operations and cash flows for the two
  years ended February 28, 2006 and 2005 and the cumulative totals for the development
  stage operations from April 2, 1999 (inception) through February 28, 2006 in
  conformity with accounting principles generally accepted in the United States
  of America.

The accompanying consolidated financial statements have been prepared assuming
  the Company will continue as a going concern. As discussed in note 1 to the
  financial statements, the Company has no revenues and limited capital which
  together raise substantial doubt as to its ability to continue as a going concern.
  The financial statements do not include any adjustments that might result from
  the outcome of this uncertainty.



/s/ "Pannell Kerr Forster" Chartered Accountants
(registered with the PCAOB as Smythe Ratcliffe)

Vancouver, Canada May 29, 2006

11

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Transnational Automotive Group, Inc.(formerly
Apache Motor Corporation) (A Development Stage Company) CONSOLIDATED
BALANCE SHEETS February 28 (U.S. Dollars)

|                                                                            |   | 2006       |   |   | 2005       |  
|--------------------------------------------------------------------------- | - | ---------- | - | - | ---------- | -
|ASSETS                                                                      |   |            |   |   |            |  
|Current                                                                     |   |            |   |   |            |  
|Cash                                                                        | $ | 597,640    |   | $ | 5,775      |  
|Accounts receivable                                                         |   | 11,625     |   |   | -          |  
|Prepaid expense                                                             |   | 19,875     |   |   | -          |  
|                                                                            |   | 629,140    |   |   | 5,775      |  
|                                                                            |   |            |   |   |            |  
|Deposit on buses (note 4)                                                   |   | 278,771    |   |   | -          |  
|Fixed assets (note 5)                                                       |   | 21,423     |   |   | -          |  
|Technology rights (note 6)                                                  |   | 1          |   |   | 1          |  
|                                                                            |   |            |   |   |            |  
|Total Assets                                                                | $ | 929,335    |   | $ | 5,776      |  
|                                                                            |   |            |   |   |            |  
|LIABILITIES                                                                 |   |            |   |   |            |  
|Current                                                                     |   |            |   |   |            |  
|Accounts payable and accrued
      liabilities                              | $ | 677,741    |   | $ | 55,892     |  
|Convertible debentures, promissory notes
      and other                    |   |            |   |   |            |  
|loans payable (note 7)                                                      |   | 619,007    |   |   | 18,445     |  
|                                                                            |   | 1,296,748  |   |   | 74,337     |  
|Minority interest in subsidiary company                                     |   | 259,419    |   |   | 0          |  
|                                                                            |   | 1,556,167  |   |   | 74,337     |  
|                                                                            |   |            |   |   |            |  
|STOCKHOLDERS' EQUITY (DEFICIT)                                              |   |            |   |   |            |  
|Preferred Stock                                                             |   |            |   |   |            |  
|Authorized                                                                  |   |            |   |   |            |  
|100,000,000 shares of
      preferred stock with a par value of $0.001 each |   |            |   |   |            |  
|                                                                            |   |            |   |   |            |  
|Common Stock (note 8)                                                       |   |            |   |   |            |  
|Authorized                                                                  |   |            |   |   |            |  
|200,000,000 shares of common
      stock with a par value of $0.001 each    |   |            |   |   |            |  
|Issued and outstanding                                                      |   |            |   |   |            |  
|50,685,715 shares of
      common stock                                     |   | 50,686     |   |   | 54,211     |  
|(54,210,688  February 28, 2005)                                            |   |            |   |   |            |  
|Shares of common stock subscribed                                           |   | 100,000    |   |   | -          |  
|Shares of common stock held by subsidiary
      company                     |   | (100,000   | ) |   | -          |  
|Additional paid in capital                                                  |   | 1,883,409  |   |   | 994,775    |  
|Deficit accumulated during the development
      stage                      |   | (2,560,927 | ) |   | (1,117,547 | )
|                                                                            |   |            |   |   |            |  
|Total Stockholders' (Deficit) Equity                                        |   | (626,832   | ) |   | (68,561    | )
|                                                                            |   |            |   |   |            |  
|Total Liabilities and Stockholders' Equity
      (Deficit)                  | $ | 929,335    |   | $ | 5,776      |  

See notes to consolidated financial statements.

12

---

Transnational Automotive Group, Inc. (formerly
Apache Motor Corporation) (A Development Stage Company) CONSOLIDATED
STATEMENTS OF OPERATIONS For the years ended February 28, 2006, and 2005
and for the period from April 2, 1999 (Date of Inception) to February 28,
2006 (U.S. Dollars)

|                                           |   |            |   |   |            |   |   | From April 2, |  
|------------------------------------------ | - | ---------- | - | - | ---------- | - | - | ------------- | -
|                                           |   |            |   |   |            |   |   | 1999 (Date of |  
|                                           |   |            |   |   |            |   |   | Inception) to |  
|                                           |   |            |   |   |            |   |   | February 28,  |  
|                                           |   | 2006       |   |   | 2005       |   |   | 2006          |  
|                                           |   |            |   |   |            |   |   |               |  
|Expenses                                   |   |            |   |   |            |   |   |               |  
|Amalgamation and merger costs (see note 9) | $ | 717,052    |   | $ | -          |   | $ | 852,052       |  
|Repairs and maintenance                    |   | 66,599     |   |   | -          |   |   | 66,599        |  
|Research and development                   |   | -          |   |   | 12,452     |   |   | 90,265        |  
|Professional and consulting
      fees     |   | 146,137    |   |   | 98,483     |   |   | 331,886       |  
|Office and administration                  |   | 179,930    |   |   | 71,383     |   |   | 522,413       |  
|Rent                                       |   | 108,749    |   |   | -          |   |   | 108,749       |  
|Salaries and benefits                      |   | 41,823     |   |   | -          |   |   | 41,823        |  
|Interest on long term debt                 |   | 668        |   |   | -          |   |   | 668           |  
|Telephone                                  |   | 3,348      |   |   | -          |   |   | 37,948        |  
|Directors Compensation                     |   | -          |   |   | 30,000     |   |   | 30,000        |  
|Marketing                                  |   | 10,238     |   |   | 8,333      |   |   | 18,571        |  
|Travel and entertainment                   |   | 88,321     |   |   | -          |   |   | 98,764        |  
|Depreciation and amortization              |   | 1,075      |   |   | -          |   |   | 10,769        |  
|                                           |   |            |   |   |            |   |   |               |  
|Total expenses                             |   | 1,363,940  |   |   | 220,651    |   |   | 2,210,507     |  
|                                           |   |            |   |   |            |   |   |               |  
|Loss before other items                    |   | (1,363,940 | ) |   | (220,651   | ) |   | (2,210,507    | )
|                                           |   |            |   |   |            |   |   |               |  
|Minority interest in operations            |   | 81,131     |   |   | -          |   |   | 81,131        |  
|                                           |   |            |   |   |            |   |   |               |  
|Deficiency in assets on acquisition of     |   |            |   |   |            |   |   |               |  
|subsidiary company (note 3)                |   | (160,571   | ) |   | -          |   |   | (160,571      | )
|                                           |   |            |   |   |            |   |   |               |  
|Write down of technology rights and        |   |            |   |   |            |   |   |               |  
|disposal of subsidiary (notes 1a and 6)    |   | -          |   |   | -          |   |   | (270,980      | )
|                                           |   |            |   |   |            |   |   |               |  
|                                           |   |            |   |   |            |   |   |               |  
|Net Loss                                   | $ | (1,443,380 | ) | $ | (220,651   | ) | $ | (2,560,927    | )
|                                           |   |            |   |   |            |   |   |               |  
|Basic net loss per share                   | $ | (0.03      | ) | $ | (0.00      | ) |   |               |  
|                                           |   |            |   |   |            |   |   |               |  
|                                           |   |            |   |   |            |   |   |               |  
|Shares used in basic net loss per share    |   |            |   |   |            |   |   |               |  
|computation                                |   | 50,057,143 |   |   | 49,114,668 |   |   |               |  

See notes to consolidated financial statements.

13

---

**Transnational Automotive Group, Inc.**
(formerly Apache Motor Corporation) (A Development Stage Company)
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT) Year
Ended February 28, 2006 (U.S. dollars)

|                                                     |  |             |   |   |         |   |   | Additional |   |   | Other         |   |   | Deficit Accumulated |   |   | Total            |  
|---------------------------------------------------- |  | ----------- | - | - | ------- | - | - | ---------- | - | - | ------------- | - | - | ------------------- | - | - | ---------------- | -
|                                                     |  |             |   |   |         |   |   | Paid-in    |   |   | Comprehensive |   |   | During the          |   |   | Stockholders    |  
|                                                     |  | Shares      |   |   | Amount  |   |   | Capital    |   |   | Income        |   |   | Development Stage   |   |   | Equity (Deficit) |  
|                                                     |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|Inception                                            |  | 0           |   | $ | 0       |   | $ | 0          |   | $ | 0             |   | $ | 0                   |   | $ | 0                |  
|Issued for organizational cost                       |  | 333,332     |   |   | 333     |   |   | 2,167      |   |   | 0             |   |   | 0                   |   |   | 2,500            |  
|Issued for license                                   |  | 266,668     |   |   | 267     |   |   | 1,733      |   |   | 0             |   |   | 0                   |   |   | 2,000            |  
|Net and other comprehensive loss                     |  | 0           |   |   | 0       |   |   | 0          |   |   | (14,700       | ) |   | (111,069            | ) |   | (125,769         | )
|Additional paid in capital on                        |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|merger                                               |  | 0           |   |   | 0       |   |   | 372,667    |   |   | 0             |   |   | 0                   |   |   | 372,667          |  
|Balance - February 28, 2001                          |  | 600,000     |   | $ | 600     |   | $ | 376,567    |   | $ | (14,700       | ) | $ | (111,069            | ) | $ | 251,398          |  
|Issuances:                                           |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|To become preferred customer                         |  | 1,334       |   |   | 1       |   |   | 49         |   |   | 0             |   |   | 0                   |   |   | 50               |  
|To acquire Cambridge Creek                           |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|Properties, Ltd.                                     |  | 1,334       |   |   | 1       |   |   | 49         |   |   | 0             |   |   | 0                   |   |   | 50               |  
|To acquire The Apache Motor                          |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|Corp.                                                |  | 440,000     |   |   | 440     |   |   | 16,060     |   |   | 0             |   |   | 0                   |   |   | 16,500           |  
|Share issuance by subsidiary                         |  | 0           |   |   | 0       |   |   | 126,575    |   |   | 0             |   |   |                     |   |   | 126,575          |  
|Cancellation                                         |  | (253,334    | ) |   | (253    | ) |   | 253        |   |   | 0             |   |   | 0                   |   |   | 0                |  
|Issued for services                                  |  | 13,334      |   |   | 13      |   |   | 49,987     |   |   | 0             |   |   | 0                   |   |   | 50,000           |  
|Net and other comprehensive
      loss               |  | 0           |   |   | 0       |   |   | 0          |   |   | (22,438       | ) |   | (258,548            | ) |   | (280,986         | )
|Balance - February 28, 2002                          |  | 802,668     |   | $ | 802     |   | $ | 569,540    |   | $ | (37,138       | ) | $ | (369,617            | ) | $ | 163,587          |  
|Net and other comprehensive
      loss               |  | 0           |   |   | 0       |   |   | 0          |   |   | (10,945       | ) |   | (193,916            | ) |   | (204,861         | )
|Balance-February 28, 2003                            |  | 802,668     |   | $ | 802     |   | $ | 569,540    |   | $ | (48,083       | ) | $ | (563,533            | ) | $ | (41,274          | )
|Issued to acquire Manter                             |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|Developments Inc.                                    |  | 533,334     |   |   | 533     |   |   | 19,467     |   |   | 0             |   |   | 0                   |   |   | 20,000           |  
|Cancellation                                         |  | (133,440    | ) |   | (133    | ) |   | 133        |   |   | 0             |   |   | 0                   |   |   | 0                |  
|Net and other comprehensive loss                     |  | 0           |   |   | 0       |   |   | 0          |   |   | 48,083        |   |   | (333,363            | ) |   | (285,280         | )
|Adjustment for reverse split                         |  | 0           |   |   |         |   |   |            |   |   | 0             |   |   | 0                   |   |   | 0                |  
|Balance - February 28, 2004                          |  | 1,202,562   |   | $ | 1,202   |   | $ | 589,140    |   | $ | 0             |   | $ | (896,896            | ) | $ | (306,554         | )
|Issuance of common stock for:                        |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|promissory notes                                     |  | 1,291,478   |   |   | 1,291   |   |   | 240,861    |   |   | 0             |   |   | 0                   |   |   | 242,152          |  
|directors compensation                              |  | 2,100,000   |   |   | 2,100   |   |   | 8,400      |   |   | 0             |   |   | 0                   |   |   | 10,500           |  
|services                                             |  | 11,600,000  |   |   | 11,600  |   |   | 46,400     |   |   | 0             |   |   | 0                   |   |   | 58,000           |  
|debt settlement                                      |  | 38,695,102  |   |   | 38,697  |   |   | 129,295    |   |   | 0             |   |   | 0                   |   |   | 167,992          |  
|Cancellation of Manter shares                        |  | (533,334    | ) |   | (533    | ) |   | (19,467    | ) |   | 0             |   |   | 0                   |   |   | (20,000          | )
|Cancellation of shares on
      disposal             |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|of subsidiary                                        |  | (278,560    | ) |   | (279    | ) |   | 279        |   |   | 0             |   |   | 0                   |   |   | 0                |  
|Re-issuance of common stock                          |  |             |   |   |         |   |   |            |   |   |               |   |   |                     |   |   |                  |  
|previously cancelled                                 |  | 133,440     |   |   | 133     |   |   | (133       | ) |   | 0             |   |   | 0                   |   |   | 0                |  
|Net loss                                             |  | 0           |   |   | 0       |   |   | 0          |   |   | 0             |   |   | (220,651            | ) |   | (220,651         | )
|Balance - February 28, 2005                          |  | 54,210,688  |   | $ | 54,211  |   | $ | 994,775    |   | $ | 0             |   | $ | (1,117,547          | ) | $ | (68,561          | )
|Shares cancelled – net 
      (see note 8)           |  | (28,210,688 | ) |   | (28,211 | ) |   | 29,452     |   |   | 0             |   |   | 0                   |   |   | 1,241            |  
|Issued to acquire subsidiary                         |  | 24,000,000  |   |   | 24,000  |   |   | 0          |   |   | 0             |   |   | 0                   |   |   | 24,000           |  
|Share issuance by subsidiary                         |  | 0           |   |   | 0       |   |   | 618        |   |   | 0             |   |   | 0                   |   |   | 618              |  
|Contribution from minority 
      shareholder        |  | 0           |   |   | 0       |   |   | 999,800    |   |   | 0             |   |   | 0                   |   |   | 999,800          |  
|Issued for settlement of loan from 
      subsidiary |  | 400,000     |   |   | 400     |   |   | 99,600     |   |   | 0             |   |   | 0                   |   |   | 100,000          |  
|Shares held by subsidiary                            |  | 0           |   |   | (400    | ) |   | (99,600    | ) |   | 0             |   |   | 0                   |   |   | (100,000         | )
|Issued for cash                                      |  | 285,715     |   |   | 286     |   |   | 99,714     |   |   | 0             |   |   | 0                   |   |   | 100,000          |  
|Subscribed for cash - not issued                     |  | 0           |   |   | 400     |   |   | 99,600     |   |   | 0             |   |   | 0                   |   |   | 100,000          |  
|Net loss                                             |  | 0           |   |   | 0       |   |   | 0          |   |   | 0             |   |   | (1,443,380          | ) |   | (1,443,380       | )
|Minority interest in subsidiary                      |  | 0           |   |   | 0       |   |   | (340,550   | ) |   | 0             |   |   | 0                   |   |   | (340,550         | )
|Balance  February 28, 2006                          |  | 50,685,715  |   | $ | 50,686  |   | $ | 1,883,409  |   | $ | 0             |   | $ | (2,560,927          | ) | $ | (626,832         | )

See notes to consolidated financial statements

14

---

Transnational Automotive Group, Inc.(formerly
Apache Motor Corporation) (A Development Stage Company) CONSOLIDATED
STATEMENTS OF CASH FLOWS For the years ended February 28, 2006 and 2005
and for the Period from April 2, 1999 (Date of Inception) to February 28,
2006 (U.S. Dollars)

|                                                   |   |            |   |   |          |   |   | From April 2, 1999     |  
|-------------------------------------------------- | - | ---------- | - | - | -------- | - | - | ---------------------- | -
|                                                   |   |            |   |   |          |   |   | (Date of inception) to |  
|                                                   |   |            |   |   |          |   |   | February 28,           |  
|                                                   |   | 2006       |   |   | 2005     |   |   | 2006                   |  
|Operating Activities                               |   |            |   |   |          |   |   |                        |  
|                                                   |   |            |   |   |          |   |   |                        |  
|Net (loss)                                         | $ | (1,443,380 | ) | $ | (220,651 | ) | $ | (2,560,927             | )
|Adjustments to reconcile net (loss) to net cash    |   |            |   |   |          |   |   |                        |  
|provided by (used by) operating
      activities:  |   |            |   |   |          |   |   |                        |  
|Non cash expense:                                  |   |            |   |   |          |   |   |                        |  
|Minority interest in operations                    |   | (81,131    | ) |   | 0        |   |   | (81,131                | )
|- excess of liabilities over assets on acquisition |   |            |   |   |          |   |   |                        |  
|of subsidiary                                      |   | 160,571    |   |   | 0        |   |   | 160,571                |  
|- depreciation                                     |   | 1,075      |   |   | 0        |   |   | 10,769                 |  
|- technology rights expensed                       |   | 0          |   |   | 0        |   |   | 242,156                |  
|- shares for services                              |   | 0          |   |   | 68,500   |   |   | 126,100                |  
|Change in operating assets & liabilities           |   | 354,396    |   |   | 157,926  |   |   | 734,256                |  
|Net cash provided by (used in)                     |   |            |   |   |          |   |   |                        |  
|operating activities                               |   | (1,008,469 | ) |   | 5,775    |   |   | (1,481,696             | )
|                                                   |   |            |   |   |          |   |   |                        |  
|Investing Activities                               |   |            |   |   |          |   |   |                        |  
|                                                   |   |            |   |   |          |   |   |                        |  
|Capital assets acquired                            |   | (301,269   | ) |   | 0        |   |   | (339,954               | )
|                                                   |   |            |   |   |          |   |   |                        |  
|Financing Activities                               |   |            |   |   |          |   |   |                        |  
|                                                   |   |            |   |   |          |   |   |                        |  
|Cash from issuance of stock                        |   | 201,241    |   |   | 0        |   |   | 700,483                |  
|Cash from stock subscriptions                      |   | 100,000    |   |   | 0        |   |   | 100,000                |  
|Contribution from minority shareholders            |   | 999,800    |   |   | 0        |   |   | 999,800                |  
|Loans payable                                      |   | 600,562    |   |   | 0        |   |   | 619,007                |  
|                                                   |   | 1,901,603  |   |   | 0        |   |   | 2,419,290              |  
|                                                   |   |            |   |   |          |   |   |                        |  
|Inflow (outflow) of cash                           |   | 591,865    |   |   | 5,775    |   |   | 597,640                |  
|                                                   |   |            |   |   |          |   |   |                        |  
|Cash, beginning of year                            |   | 5,775      |   |   | 0        |   |   | 0                      |  
|                                                   |   |            |   |   |          |   |   |                        |  
|Cash, end of year                                  | $ | 597,640    |   | $ | 5,775    |   | $ | 597,640                |  
|                                                   |   |            |   |   |          |   |   |                        |  
|Supplemental information                           |   |            |   |   |          |   |   |                        |  
|Interest paid                                      | $ | 668        |   | $ | 0        |   |   |                        |  
|Non cash investing and financing activity          |   |            |   |   |          |   |   |                        |  
|Shares issued for debt                             | $ | 100,000    |   | $ | 410,144  |   |   |                        |  
|Shares issued for services                         | $ | 0          |   | $ | 58,000   |   |   |                        |  
|Shares issued for Directors services              | $ | 0          |   | $ | 10,500   |   |   |                        |  

See notes to consolidated financial statements.

15

---

Transnational Automotive Group, Inc.(formerly
Apache Motor Corporation) (a Development Stage Company) NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS Years Ended February 28, 2006 and 2005

1.      NATURE OF OPERATIONS AND
BASIS OF PRESENTATION

a) Organization Transnational Automotive Group, Inc.
(the "Company") was incorporated April 2, 1999 in the State of Nevada as
Vitaminoverrun.com Corp. and in August 2001 changed its name to Apache Motor
Corporation Inc. In November 2005 the Company changed its name to Transnational
Automotive Group, Inc.

In 2001 the Company merged with Cambridge Creek Companies, Ltd.
("Cambridge"), a Nevada corporation. Cambridge was a reporting issuer and the
Company assumed the reporting issuer status after the merger.

Effective September 12, 2001 the Company acquired all of the
outstanding shares of common stock of The Apache Motor Corp. ("Apache"), an
Alberta corporation, from the shareholders of Apache in exchange for an
aggregate of 440,000 shares of its common stock (16,500,000 pre split shares).
The exchange was effectively a reverse takeover of the Company by Apache in that
the shareholders of Apache became the majority shareholders of the Company. On
October 24, 2003 the principal of The Apache Motor Corp (Robert Wither) agreed
to return 278,560 shares of common stock (10,466,000 pre split shares) for
cancellation that he had received from the Company and the Company disposed of
its shares in The Apache Motor Corp. (the Companys subsidiary company) to
Robert Wither in conjunction with the cancellation of his shares in the Company.
The Company retained the rights to the technology and returned the shares of the
subsidiary to the original owners.

In 2002 the Company completed a 5:1 forward stock split.

On May 3, 2004 the Company terminated an agreement to acquire 100% of the issued
  share capital of Manter Enterprises Inc. and cancelled the 533,334 shares of
  common stock (20,000,000 pre split shares) of common stock of the Company previously
  issued in trust for Manter subject to a performance agreement.

On June 7, 2004, the Company completed a 1:75 reverse stock split.

On October 14, 2005 the Company completed a 2:1 forward stock split.

On October 28, 2005 the Company issued 24,000,000 shares of common stock to
  acquire 100% of the issued share capital of Parker Automotive Group International,
  Inc. (PAGI). PAGI is in the business of developing a public bus transportation
  system in Cameroon through its 66% owned subsidiary, Parker Transportation Inc.,
  Cameroon. (see note 3)

All share and per share amounts for the year ended February 28, 2006 and comparative
  figures have been restated to reflect all the forward and reverse stock splits.
  (see note 2j)

b) Going Concern
  The accompanying consolidated financial statements have been prepared assuming
  the Company will continue as a going concern.

As shown in the accompanying consolidated financial statements, the Company
  has incurred a net loss of $2,560,927 for the period from inception April 2,
  1999 to February 28, 2006 and has no sales. The future of the Company is dependent
  upon its ability to obtain financing and upon future profitable operations from
  the development of its services. Management has plans to utilize debt and/or
  equity financing to fund its short-term and long-term needs. The financial statements
  do not include any adjustments relating to the recoverability and classification
  of recorded assets, or the amounts of and classification of liabilities that
  might be necessary in the event the Company cannot continue in existence.

16

---

**Transnational Automotive Group, Inc.**(formerly Apache Motor Corporation) (a Development Stage
Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended February
28, 2006 and 2005

c)Development Stage Activities To date the
Companys activities have been organizational, directed at acquiring its
principal asset, raising its initial capital and developing its business plan.
In a development stage company, management devotes most of its activities in
investigating business opportunities and planning for its principal
activities.

The Company commenced operations in Cameroon in late October
2005 to develop the urban bus transportation system in its subsidiary company
incorporated in Cameroon.

The efforts to date in Cameroon have focused on the cleaning-up
and restoration of the primary bus depot located in the capital city of Yaounde,
establishing urban routes, readying roadways and bus stops, preparing the
maintenance facility; completing administrative matters such as opening bank
accounts, securing operating licenses, recruiting and screening administrative
staff, bus drivers, mechanics and security personnel.

2.      SIGNIFICANT ACCOUNTING
POLICIES

The consolidated financial statements of the Company have been
prepared in accordance with accounting principles generally accepted in the
United States.

a) Principles of Consolidation
  These financial statements include the accounts of the Company, Parker Automotive
  Group International, Inc. (“PAGI”), a Washington USA wholly owned
  subsidiary, Transnational Automotive Group, Cameroon (“TAUGC”),
  a wholly owned Cameroon subsidiary and a 66% interest in Parker Transportation
  Inc., Cameroon (“PTIC”). The remaining 34% equity interest is owned
  by various Cameroon governmental bodies. All inter company balances and transactions
  have been eliminated.

b)Organization and Start Up Costs Costs of start up
activities, including organization costs, are expensed as incurred.

c) Foreign Currency Translation The Company
considers the US dollar to be its functional currency as it is the currency of
the primary economic environment in which the Company and its subsidiaries
currently operate. Accordingly, monetary assets and liabilities denominated in
foreign currencies are translated into US dollars at the exchange rate in effect
at the balance sheet date and non monetary assets and liabilities are translated
at the exchange rates in effect at the time of acquisition or issue. Revenues
and expenses are translated at rates approximating the exchange rates in effect
at the time of the transactions. All exchange gains and losses are included in
operations.

d) Development Stage Company The Company is a
development stage company as defined in the Statements of Financial Accounting
Standards No. 7. The Company is devoting substantially all of its present
efforts to establish a new business and none of its planned principal operations
have commenced. The Company considers all losses accumulated since inception to
be part of the Companys development stage activities.

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

17

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**Transnational Automotive Group, Inc.**(formerly Apache Motor Corporation) (a Development Stage
Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended February
28, 2006 and 2005

**f)** Loss Per Share
  In accordance with SFAS No. 128 – “Earnings Per Share”, the
  basic loss per common share is computed by dividing net loss available to common
  stockholders by the weighted average number of common shares outstanding. Diluted
  loss per common share is computed similar to basic loss per common share except
  that the denominator is increased to include the number of additional common
  shares that would have been outstanding if the potential common shares had been
  issued and if the additional common shares were dilutional. At February 28,
  2006 the Company’s stock equivalents were anti-dilutional and therefore
  excluded in the net loss per share computation.

g) Income Taxes The Company follows the liability
method of accounting for income taxes. Deferred tax assets and liabilities are
recognized for the future tax consequences of (i) temporary differences between
the tax bases of assets and liabilities and their reported amounts in the
financial statements, and (ii) operating loss and tax credit carry forwards for
tax purposes. Deferred tax assets are reduced by a valuation allowance when,
based upon managements estimates, it is more likely than not that a portion of
the deferred tax assets will not be realized in a future period.

h) Financial Instruments i. Fair values The
carrying value of cash, accounts receivable, accounts payable and accrued
liabilities and convertible debentures, promissory notes and loans payable
approximate their fair value because of the short maturity of these financial
instruments.

ii Interest rate risk The Company is not exposed to
significant interest rate risk due to the short term maturity of its monetary
current assets and liabilities.

iii Credit risk The Company is exposed to credit risk with
respect to its accounts receivable. The Company follows a program of credit
evaluations of customers and limits the amount of credit extended when deemed
necessary. The Company maintains provisions for potential credit losses and any
such losses to date have been within managements expectations.

iv Currency risk The Company is exposed to foreign currency
fluctuations to the extent expenditures incurred are not denominated in U.S.
dollars. At February 28, 2006 cash includes approximately $575,000 denominated
in CFA (Cameroon francs).

i) Recent accounting pronouncements i. In December
2004, FASB issued a revision of FASB Statement No. 123R. This Statement
supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and its
related implementation guidance. This revised pronouncement requires that all
stock options and warrants be accounted for using the Fair Value Method. The
Company will conform with FASB 123R.

ii. FIN 46(R), Consolidation of Variable Interest Entities,
applies at different dates to different types of enterprises and entities, and
special provisions apply to enterprises that have fully or partially applied
Interpretation 46 prior to issuance of Interpretation 46(R). Application of
Interpretation 46 or Interpretation 46(R) is required in financial statements of
public entities that have interests in variable interest entities or potential
variable interest entities commonly referred to as special-purpose entities for
periods ending after December 15, 2003. Application by public entities (other
than small business issuers) for all other types of entities is required in
financial statements for periods ending after March 15, 2004. Application by
small business issuers to entities other than special-purpose entities and

18

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**Transnational Automotive Group, Inc.**(formerly Apache Motor Corporation) (a Development Stage
Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended February
28, 2006 and 2005

by non-public entities is required at various dates in 2004 and
  2005. There is no impact on the Company’s financial statements.

iii. In December 2004, the FASB issued SFAS Statement No. 153, “Exchanges
  of Non monetary Assets.” The statement is an amendment of APB Opinion
  No. 29 to eliminate the exception for non monetary exchanges of similar productive
  assets and replaces it with a general exception for exchanges of non monetary
  assets that do not have commercial substance. The adoption of this standard
  did not have a material impact on its financial statements.

iv. In March 2005, FASB issued FASB Interpretation (“FIN”) No.
  47, “Accounting for Conditional Asset Retirement Obligations.” FIN
  47 clarifies that the term “Conditional Asset Retirement Obligation”
  as used in FASB Statement No. 143, “Accounting for Asset Retirement Obligation,”
  refers to a legal obligation to perform an asset retirement activity in which
  the timing and/or method of settlement are conditional on a future event that
  may or may not be within the control of the entity. Accordingly, an entity is
  required to recognize a liability for the fair value of a Conditional Asset
  Retirement Obligation if the fair value of the liability can be reasonably estimated.
  FIN 47 is effective no later than the end of fiscal years ending after December
  15, 2005. The adoption of FIN 47 does not have a material affect on the Company’s
  financial position, results of operations or cash flows.

v. In May 2005, the Financial Accounting Standards Board (“FASB”)
  issued SFAS No. 154, Accounting Changes and Error Corrections (“SFAS No.
  154”), which replaced Accounting Principles Board Opinion No. 20, Accounting
  Changes and SFAS No. 3, Reporting Accounting Changes in Interim Financial Statements.
  SFAS No. 154 changes the requirements for the accounting for and reporting of
  a change in accounting principles. It requires retrospective application to
  prior periods’ financial statements of changes in accounting principles,
  unless it is impracticable to determine either the period-specific effects or
  the cumulative effect of the change. This statement is effective for accounting
  changes and corrections of errors made in fiscal years beginning after December
  15, 2005. The impact on the Company’s operations will depend on future
  accounting pronouncements or changes in accounting principles.

**j)** Issued Shares
  All share and per share amounts have been restated to reflect the 5:1 forward
  split in 2002, the 1:75 reverse stock split in 2004 and the 2:1 forward split
  in 2005. (see note 8)

k)


|Computer equipment      | 30% Declining balance
|----------------------- | ---------------------
|Computer software       | 30% Declining balance
|Furniture and equipment | 20% Declining balance
|Automobile equipment    | 30% Declining balance

3.      ACQUISITION OF SUBSIDIARY
COMPANY

The Company issued 24,000,000 shares of common stock to acquire
PAGI in October 2005. The Company has used the purchase method to account for
its acquisition of PAGI, the assets and liabilities of which were as follows on
acquisition:

19

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**Transnational Automotive Group, Inc.**(formerly Apache Motor Corporation) (a Development Stage
Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended February
28, 2006 and 2005

Fair value of net assets acquired:

|Cash                                              | $ | 48,647   |   |  |  | 
|------------------------------------------------- | - | -------- | - |  |  | 
|Loan receivable                                   |   | 113,100  |   |  |  | 
|Inter
      company loan                          |   | 11,700   |   |  |  | 
|Accounts payable                                  |   | (75,018  | ) |  |  | 
|Notes
      payable                               |   | (235,000 | ) |  |  | 
|                                                  |   | (136,571 | ) |  |  | 
|Purchase price                                    |   | (24,000  | ) |  |  | 
|Excess of purchase price over net assets acquired | $ | (160,571 | ) |  |  | 

The excess of the purchase price over net assets acquired represents
  the accumulated deficits of the companies acquired. The Company determined to
  write off the excess as a cost of the acquisition and to reflect only real assets
  and liabilities on consolidation.4.      DEPOSIT ON BUSES

The Company and its subsidiaries PTIC (66% ownership) and TAUGC
(100% ownership), herein the Company, advanced $278,771 as a deposit on a
contract to purchase 28 passenger buses from Yancheng Zhongda International
Trading Co., Ltd. (herein Zhongda) of the Peoples Republic of China for a
total cost price plus shipping of $1,824,190. Subsequent to February 28, 2006 a
Trust for whom an officer of the Company is a trustee advanced $1,500,000 to
Zhongda to facilitate the purchase. The Company has agreed to repay the Trust
$200,000 per month for nine months commencing September 2006. Until the Trust is
repaid, title to the buses will remain with the Trust.

5.      FIXED ASSETS

Cost
    
    
    Amortization
    
    
    NetComputer equipment
    $
    10,395
    
    $
    567
    
    $
    9,828Computer software
    
    1,399
    
    
    68
    
    
    1,331Furniture and equipment
    
    4,340
    
    
    167
    
    
    4,173Automotive equipment
    
    6,364
    
    
    273
    
    
    6,091$
    22,498
    
    $
    1,075
    
    $
    21,423


6.      TECHNOLOGY

The Company's original business objective with respect to the
production of engines was to complete the research and development of the radial
engine begun by Apache and then to manufacture and market it. These plans have
been put on hold due to lack of investor funding at this time. The Company has
written down its past investment in the technology to $1. The Company is in the
process of identifying and achieving funding for its family of engine, fuel, and
advanced energy-saving and environmentally-friendly technologies and
products/services.

7.      CONVERTIBLE DEBENTURES,
PROMISSORY NOTES AND OTHER LOANS PAYABLE

2006
      
      
      2005Convertible debentures and promissory notes
        payable,unsecured, with interest accruing at between 7%and 8% per annum
      $
      458,000
      
      $
      0Other loans payable
      
      161,007
      
      
      18,445$
      619,007
      
      $
      18,445


The promissory notes are payable on demand and are convertible
  to shares of common stock of the Company at $0.48 per share at the discretion
  of the note holders.
  The other loans payable are due to third parties, are unsecured and non-interest
  bearing with no fixed terms of repayment.

20

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**Transnational Automotive Group, Inc.**(formerly Apache Motor Corporation) (a Development Stage
Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended February
28, 2006 and 2005

8.      SHARE CAPITAL

Issued Shares of Common Stock

On June 7, 2004, the Company completed a 1:75 reverse stock
split. On October 14, 2005 the Company completed a 2:1 forward stock split.

All share and per share amounts for the year ended February 28,
2006 and comparative figures have been restated to reflect the reverse and
forward stock splits.

The par value of the common stock remained unchanged at $0.001
and the number of authorized common stock remained unchanged at 100,000,000.

Common stock issuances during 2005 and 2006 were as follows
(also see note 1):

On April 16, 2004 the Company issued 1,291,478 of its common
shares in settlement of $242,152 in promissory notes payable.

On July 1, 2004 The Company issued 2,100,000 shares of common
stock to its three directors in remuneration for services rendered to the
Company and fairly valued at $10,500;

On November 12, 2004 the Company issued 11,600,000 shares of
common stock fairly valued at $58,000 in remuneration for services rendered to
the Company; issued 38,695,102 shares of common stock in settlement of debt of
$167,992.

The Company cancelled 533,334 shares of common stock previously
issued to acquire Manter Enterprises Inc. in 2004 (note 1a).

The Company cancelled 278,560 shares of common stock previously
issued as part of the shares of common stock issued to acquire Apache in
2001(note 1a).

On May 3, 2004 the Company reissued 133,440 common shares
previously cancelled during the year.

During the year ended February 28, 2006 the Company cancelled
28,210,688 shares of common stock previously issued to related parties in a debt
restructuring and on October 28, 2006 issued 24,000,000 shares of common stock
fairly valued at $0.001 per share to acquire all of the issued shares of Parker
Automotive Group, Inc. (PAGI) of Seattle. PAGI is in the business of developing
a public transportation system in Cameroon.

On October 27, 2005 the Company issued 400,000 shares of common
stock in settlement of a loan from PAGI for $100,000 and on December 1, 2005 the
Company issued 285,715 shares of common stock for $100,000 cash. The 400,000
shares are held by a subsidiary company wholly owned by the Company.

Increase in Capital Stock On December 11, 2005 the Board of
Directors of Apache approved amendments to the Articles of Incorporation of
Apache to change the name of Apache to Transnational Automotive Group Inc, to
increase the number of authorized shares of common stock from 100,000,000 to
200,000,000 and to increase the number of authorized shares of preferred stock
from 20,000,000 to 100,000,000.

21

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**Transnational Automotive Group, Inc.**(formerly Apache Motor Corporation) (a Development Stage
Company) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years Ended February
28, 2006 and 2005

9.      RELATED PARTY TRANSACTIONS

During the year ended February 28, 2006 the Company recorded
  $229,985 in consulting fees categorized as amalgamation and merger expense to
  directors and officers of the Company.

At February 28, 2006 the Company owes $10,000 to a director of
the Company pursuant to a promissory note payable for a bridge loan to the
Company (see note 7).

The Company entered into an equipment lease with a Trust for
which a trustee is also an officer of the Company (see note 4).

A wholly owned subsidiary of the Company acquired 400,000
shares of common stock from the Company for $100,000 loan settlement.

10.     INCOME TAXES

The Company has operating losses carried forward to apply
against future years taxable income. The components of future income tax assets
are as follows:

2006
    
    
    2005Future income tax assetsNon-capital loss carry forwards
    $
    2,259,531
    
    $
    1,117,547Approximate tax rate
    
    35%
    
    
    35%790,836
    
    
    391,141Valuation allowance
    
    (790,836
    )
    
    (391,141
    )Estimated value
    $
    0
    
    $
    0


11.     SUBSEQUENT EVENTS

Subsequent to February 28, 2006 the Company issued 285,715 shares
  of common stock pursuant to the receipt of $100,000 shown as shares of common
  stock subscribed at February 28, 2006; and the Company issued 1,666,666 shares
  of common stock at $0.48 per share for the receipt of $800,000 subsequent to
  February 28, 2006. **12. COMMITMENTS**

- The Company has committed to office space leases totalling $352,776 for ten
  months in 2006 and totalling $277,008 for twelve months in 2007.

- The Company has committed to acquire an additional bus for a payment of $59,020.

- The Company has committed to lease payments of $200,000 per month for nine
  months commencing September 2006 for the purchase of 28 buses. (see note 4)

22

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

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

ITEM 8A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and
Procedures

| | (a) | Our principal executive officer and principal financial
        officer have evaluated the effectiveness of the design and operation of
        our disclosure control and procedures (as defined in Rules 13a-15(e) and
        15d-15(e) under the Securities Exchange Act of 1934, as amended) as of
        the end of the period covered by this annual report on form 10-KSB. Based
        on the evaluation of the Company's disclosure controls and procedures
        (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange
        Act of 1934) as of the end of the period covered by this Annual Report
        on Form 10-KSB, our chief executive officer and chief financial officer
        have concluded that our disclosure controls and procedures are designed
        to ensure that the information we are required to disclose in the reports
        we file or submit under the Exchange Act is recorded, processed, summarized
        and reported within the time periods specified in the SEC's rules and
        forms and are operating in an effective manner.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Companys Chief Executive Officer
and Chief Financial Officer believe that the necessary personnel and procedures
are in place to ensure timely reporting as required by the SEC.

The Company has added management
executives with specific business and financial expertise.

Mr. Joseph W. Parker is currently
Chairman, Director and Chief Executive Officer of Transnational Automotive
Group, Inc. (formerly Apache Motor Corporation).

Mr. Dan Goldman is currently VP
Business Development and Director of Transnational Automotive Group, Inc.
(formerly Apache Motor Corporation).

Mr. William Jacobsen is a Director of
  Transnational Automotive Group, Inc.

Dr. Ralph Thomson is a Director of Transnational
  Automotive Group, Inc.

Adam Jenn is a Director of Transnational
  Automotive Group, Inc.

Subsequent to the year ended February
28, 2006 James G. Buck became, President, and Don Durand was appointed COO of
the Company. Seid Sadat was appointed CFO of the Company.

**ITEM 8B. CHANGES IN INTERNAL CONTROL**

There were no changes in the Company’s internal controls or in other
  factors that could affect these financial statements subsequent to the date
  of their evaluation

23

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PART III

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND
CONTROL PERSONS:COMPLIANCE WITH SECTION 16A OF THE
EXCHANGE ACT

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

|NAME                 | AGE | POSITION                                           
|-------------------- | --- | ---------------------------------------------------
|                     |     |                                                    
|Joseph W. Parker     | 52  | Director, Chairman of the
      Board, CEO         
|Dan Goldman          | 44  | Director, VP Business Development &
      Treasurer
|Dr. Ralph J. Thomson | 68  | Director                                           
|William T. Jacobsen  | 59  | Director                                           
|Adam Jenn            | 49  | Director                                           
|James G. Buck        | 57  | President                                          
|Don Durand           | 36  | Chief Operating Officer                            
|Seid Sadat           | 46  | Chief Financial Officer                            

ITEM 10. EXECUTIVE COMPENSATION

At February 28, 2006, there was $143,485 paid to directors by
the Company.

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ANDMANAGEMENT

The following table sets forth as of February 28, 2006 certain
information known to the Company regarding the beneficial ownership of the
Company's common stock, and as adjusted to reflect the share ownership for (i)
each executive officer or director of the Company who beneficially owns shares;
(ii) each stockholder known to the Company to beneficially own five percent or
more of the outstanding shares of its common stock; and (iii) all executive
officers and directors as a group. The Company believes that the beneficial
owners of the common stock listed below, based on information furnished by such
owners, have sole investment and voting power with respect to such shares,
subject to community property laws where applicable.

|                                    |                  | PERCENTAGE OF     
|----------------------------------- | ---------------- | ------------------
|Name and Position                   | NUMBER OF SHARES | OUTSTANDING SHARES
|                                    |                  |                   
|Joseph W. Parker                    | 0                | 0.00%             
|Chairman of the Board               |                  |                   
|CEO, Director                       |                  |                   
|                                    |                  |                   
|James G. Buck                       | 0                | 0.00%             
|President                           |                  |                   
|                                    |                  |                   
|Dan Goldman,                        | 2,400,000        | 4.73%             
|Director,                           |                  |                   
|VP Business Development & Treasurer |                  |                   
|                                    |                  |                   
|Don Durand                          |                  |                   
|Chief Operating Officer             | 0                | 0.00%             

24

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|Dr. Ralph J. Thomson                        |            |       
|------------------------------------------- | ---------- | ------
|Director                                    | 0          | 0.00% 
|                                            |            |       
|William T. Jacobson                         |            |       
|Director                                    | 0          | 0.00% 
|                                            |            |       
|Adam Jenn                                   |            |       
|Director                                    | 2,000,000  | 3.95% 
|                                            |            |       
|Parker Automotive Group International, Inc. | 21,600,000 | 42.62%
|(Joseph W. Parker is majority shareholder)  |            |       
|                                            |            |       
|ALL EXECUTIVE OFFICERS AND                  |            |       
|DIRECTORS AS A GROUP (7 persons)            | 26,000,000 | 51.3% 
|                                            |            |       
|CHANGE IN CONTROL                           |            |       

The Company is not aware on any arrangement that would upset
the control mechanisms currently in place. Although it is conceivable that a
third party could attempt a hostile takeover of the Company, the company has not
received notice of any such effort.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

During the year ended February 28, 2006 the Company paid
$229,985 in consulting fees to directors and officers of the Company.

At February 28, 2006 the Company owes $10,000 to a director of
the Company pursuant to a promissory note payable for a bridge loan to the
Company (see note 7).

The Company entered into an equipment lease with a Trust for
which a trustee is also an officer of the Company (see note 4).

A wholly owned subsidiary of the Company acquired 400,000 shares
  of common stock from the Company for $100,000.

PART IV

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K

EXHIBITS:

| | 31.1 | Section 302 Certification
      of Chief Executive Officer       
| | ---- | -----------------------------------------------------------------
| | 31.2 | Section 302 Certification of Acting Chief Financial
      Officer
| | 32.1 | Section 906 Certification
      of Chief Executive Officer       
| | 32.2 | Section 906 Certification of Acting Chief Financial
      Officer

REPORTS ON FORM 8-K:

8K 2005-11-07 8K/A 2005-11-21

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Table of Audit Fees paid to Pannell Kerr Forster.

Pannell Kerr Forster
    Audit Services
    Audit Related Fees
    Tax Fees
    Other Fees2005
      26,500
    0
    0
      10,6752006
      10,000
    0
    0
      10,000


25

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SIGNATURES

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

TRANSNATIONAL AUTOMOTIVE GROUP, INC.

|By: | /s/ James
      G. Buck  |  | Date:
      May 30, 2006 | 
|--- | ------------------------ |  | ------------------------ | 
|    | James G. Buck, President |  |                          | 

In accordance with the Exchange Act of 1934, this report has
been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.



By:
    /s/
      Joseph W. Parker
    
      Date:
        May 30, 2006Joseph W. Parker, Chairman,Chief Executive Officer, DirectorBy:
    /s/
      Seid Sadat
    
      Date:
        May 30, 2006Seid Sadat, Chief Financial OfficerBy:
    /s/
      Adam Jenn
    
      Date:
        May 30, 2006Adam Jenn, DirectorBy:
    /s/
      Dr. Ralph J. Thomson
    
      Date:
        May 30, 2006Dr. Ralph J. Thomson, DirectorBy:
    /s/
      William T. Jacobson
    
      Date:
        May 30, 2006William T. Jacobson, DirectorBy:
    /s/
      Daniel Goldman
    
      Date:
        May 30, 2006Daniel Goldman, Director


26

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