| Large      accelerated filer | [      ]        | Accelerated      filer         | [        ] |
|------------------------------|----------------------|--------------------------------|----------------------|
| Non-accelerated      filer   | [        ] | Smaller reporting      company | [X]                  |

----

|                                                                                                    |   |   |
|---------------------------------------------------------------------------------------------------------|--------|--------|
| PART      I - FINANCIAL INFORMATION                                                                     |   | 3      |
|                                                                                                    |   |   |
| Item      1. Consolidated Financial Statements                                                          |   | 3      |
|                                                                                                    |   |   |
| Item      2. Management's Discussion and Analysis of Financial Condition and Results      of Operations |   | 20     |
|                                                                                                    |   |   |
| Item      3. Quantitative and Qualitative Disclosures of Market Risk                                    |   | 22     |
|                                                                                                    |   |   |
| Item      4. Controls and Procedures                                                                    |   | 23     |
|                                                                                                    |   |   |
| PART      II - OTHER INFORMATION                                                                   |   | 23     |
|                                                                                                    |   |   |
| Item      1. Legal Proceedings                                                                          |   | 23     |
|                                                                                                    |   |   |
| Item      2. Unregistered Sales of Equity Securities and Use of    Proceeds                             |   | 23     |
|                                                                                                    |   |   |
| Item      3. Defaults Upon Senior Securities                                                            |   | 23     |
|                                                                                                    |   |   |
| Item      4. Submission of Matters to a Vote of Security Holders                                        |   | 23     |
|                                                                                                    |   |   |
| Item      5. Other Information and Subsequent Events                                               |   | 24     |
| .                                                                                                       |   |   |
| Item      6. Exhibits                                                                                   |   | 24     |
|                                                                                                    |   |   |
| SIGNATURES                                                                                              |   | 24     |
|                                                                                                    |   |   |

----

----

----

----

|                                                                               |   | As      at30      November2009(Restated) |   | As      at31      May2009(Audited) |
|------------------------------------------------------------------------------------|--------|------------------------------------------|--------|------------------------------------|
|                                                                               |   | $                                        |   | $                                  |
|                                                                               |   |                                     |   |                               |
| Assets                                                                             |   |                                     |   |                               |
|                                                                               |   |                                     |   |                               |
| Current                                                                            |   |                                     |   |                               |
| Cash      and cash equivalents (Note 2)                                            |   | 14,500                                   |   | 1,496                              |
| Goods      and Services Tax recoverable                                            |   | 688                                      |   | 234                                |
|                                                                               |   |                                     |   |                               |
|                                                                               |   | 15,188                                   |   | 1,730                              |
|                                                                               |   |                                     |   |                               |
| Equipment (Note      3)                                                            |   | 805                                      |   | 1,057                              |
|                                                                               |   |                                     |   |                               |
|                                                                               |   | 15,993                                   |   | 2,787                              |
|                                                                               |   |                                     |   |                               |
| Liabilities                                                                        |   |                                     |   |                               |
|                                                                               |   |                                     |   |                               |
| Current                                                                            |   |                                     |   |                               |
| Accounts      payable and accrued liabilities (Note 4)                             |   | 3,825                                    |   | 13,508                             |
| Convertible      debentures (Note 5)                                               |   | 15,048                                   |   | 14,323                             |
| Demand      loan (Note 6)                                                          |   | 46,235                                   |   | -                                  |
| Due      to related party (Note 7)                                                 |   | 5,046                                    |   | -                                  |
|                                                                               |   |                                     |   |                               |
|                                                                               |   | 70,154                                   |   | 27,831                             |
|                                                                               |   |                                     |   |                               |
| Stockholders’      deficiency                                                |   |                                     |   |                               |
| Capital stock (Note      8)                                                        |   |                                     |   |                               |
| Authorized                                                                         |   |                                     |   |                               |
| 100,000,000      of common shares, par value $0.00001                              |   |                                     |   |                               |
| 100,000,000      of preferred shares, par value $0.00001                           |   |                                     |   |                               |
| Issued      and outstanding                                                        |   |                                     |   |                               |
| 30 November      2009 – 21,295,006 common shares, par value    $0.00001 |   |                                     |   |                               |
| 31      May 2009 – 21,295,006 common shares, par value $0.00001         |   | 213                                      |   | 213                                |
| Additional      paid in capital                                                    |   | 124,416                                  |   | 124,416                            |
| Deficit,      accumulated during the development stage                             |   | (178,790)                                |   | (149,673)                          |
|                                                                               |   |                                     |   |                               |
|                                                                               |   | (54,161)                                 |   | (25,044)                           |
|                                                                               |   |                                     |   |                               |
|                                                                               |   | 15,993                                   |   | 2,787                              |

----

----

|                                                                             | For      the period from      the dateof      inception on 27 November 2006 to30      November2009 |       | For      the three      month period      ended 30      November 2009 (Restated) |       | For      the three      month period      ended 30      November 2008 |       | For      the six      month period      ended 30      November 2009 (Restated) |       | For      the six      month period      ended 30      November 2008 |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------|------------|-----------------------------------------------------------------------|------------|--------------------------------------------------------------------------------|------------|---------------------------------------------------------------------|
|                                                                             |                                                                                               | $          |                                                                             | $          |                                                                  | $          |                                                                           | $          |                                                                | $ |
|                                                                             |                                                                                               |       |                                                                             |       |                                                                  |       |                                                                           |       |                                                                |   |
| Expenses                                                                         |                                                                                               |       |                                                                             |       |                                                                  |       |                                                                           |       |                                                                |   |
| Amortization      (Note 3)                                                       |                                                                                               | 1,281      |                                                                             | 153        |                                                                  | 97         |                                                                           | 252        |                                                                | 194 |
| Bank      charges                                                                |                                                                                               | 1,045      |                                                                             | 58         |                                                                  | 37         |                                                                           | 133        |                                                                | 113 |
| Consulting      fees (Note 7)                                                    |                                                                                               | 52,939     |                                                                             | 4,160      |                                                                  | 9,709      |                                                                           | 5,509      |                                                                | 12,140 |
| Interest      expense (Notes 5, 6, 7 and 10)                                     |                                                                                               | 1,529      |                                                                             | 544        |                                                                  | -          |                                                                           | 1,006      |                                                                | - |
| Legal      fees                                                                  |                                                                                               | 23,523     |                                                                             | 3          |                                                                  | 875        |                                                                           | 471        |                                                                | 1,392 |
| Marketing      and advertising                                                   |                                                                                               | 156        |                                                                             | -          |                                                                  | -          |                                                                           | -          |                                                                | - |
| Office      and miscellaneous                                                    |                                                                                               | 24,388     |                                                                             | 2,058      |                                                                  | 1,229      |                                                                           | 2,980      |                                                                | 4,878 |
| Professional      fees                                                           |                                                                                               | 55,115     |                                                                             | 6,968      |                                                                  | 3,589      |                                                                           | 10,413     |                                                                | 12,658 |
| Transfer      agent and filing fees                                              |                                                                                               | 13,339     |                                                                             | 1,923      |                                                                  | 982        |                                                                           | 4,216      |                                                                | 1,297 |
| Loss      on foreign exchange                                                    |                                                                                               | 5,475      |                                                                             | 2,221      |                                                                  | 1,566      |                                                                           | 4,137      |                                                                | 1,759 |
|                                                                             |                                                                                               |       |                                                                             |       |                                                                  |       |                                                                           |       |                                                                |   |
| Net      loss for the period                                                     |                                                                                               | (178,790)  |                                                                             | (18,088)   |                                                                  | (18,084)   |                                                                           | (29,117)   |                                                                | (34,431) |
|                                                                             |                                                                                               |       |                                                                             |       |                                                                  |       |                                                                           |       |                                                                |   |
| Basic      and diluted loss per common share                                |                                                                                               | (0.001)    |                                                                             | (0.001)    |                                                                  | (0.001)    |                                                                           | (0.002)    |
|                                                                             |                                                                                               |       |                                                                             |       |                                                                  |       |                                                                           |       |                                                                |   |
| Weighted      average number of common sharesused      in per share calculations |                                                                                               | 21,295,006 |                                                                             | 21,295,006 |                                                                  | 21,295,006 |                                                                           | 21,295,006 |

----

----

|                                                                        | For      the period from      the date of      inception on 27      November 2006      to30      November2009 |      | For      the three month      period ended      30      November2009 |     | For      the threemonth      period      ended      30      November2008 |     | For      the six      month      period      ended      30      November      2009 |     | For      the six      month      period      ended      30      November      2008 |
|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-----------|--------------------------------------------------------------------------------|----------|--------------------------------------------------------------------------|----------|------------------------------------------------------------------------------------|----------|------------------------------------------------------------------------------------|
|                                                                        |                                                                                                          | $         |                                                                           | $        |                                                                     | $        |                                                                               | $        |                                                                               | $ |
|                                                                        |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| Cash      flows used in operating activities                                |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |
| Net      loss for the period                                                |                                                                                                          | (178,790) |                                                                           | (18,088) |                                                                     | (18,084) |                                                                               | (29,117) |                                                                               | (34,431) |
| Adjustments      to reconcile loss to net cash used by operating activities |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| Amortization      (Note 3)                                                  |                                                                                                          | 1,281     |                                                                           | 153      |                                                                     | 97       |                                                                               | 252      |                                                                               | 194 |
| Interest      (Notes 5, 6, 7 and 10)                                        |                                                                                                          | 1,529     |                                                                           | 544      |                                                                     | -        |                                                                               | 1,006    |                                                                               | - |
| Contribution      to capital by related party                               |                                                                                                          | 10,909    |                                                                           | -        |                                                                     | -        |                                                                               | -        |                                                                               | - |
| Changes      in operating assets and liabilities                            |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| (Increase)      decrease in Goods and Services Tax recoverable              |                                                                                                          | (688)     |                                                                           | (67)     |                                                                     | 10,095   |                                                                               | (454)    |                                                                               | 10,095 |
| Increase      (decrease) in accounts payable and accrued liabilities        | 3,825                                                                                                         |      | (3,403)                                                                        |     | (573)                                                                    |     | (9,683)                                                                            |     | (691)                                                                              |
| Increase      (decrease) in due to related party                            | 20                                                                                                            |      | -                                                                              |     | (6,310)                                                                  |     | -                                                                                  |     | 3,127                                                                              |
|                                                                        |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
|                                                                        |                                                                                                          | (161,914) |                                                                           | (20,861) |                                                                     | (14,775) |                                                                               | (37,996) |                                                                               | (21,706) |
|                                                                        |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| Cash      flows used in investing activities                                |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| Purchase      of property, plant and equipment                              |                                                                                                          | (2,086)   |                                                                           | -        |                                                                     | -        |                                                                               | -        |                                                                               | - |
|                                                                        |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| Cash      flows from financing activities                                   |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |
| Common      shares issued for cash (Note 8)                                 |                                                                                                          | 78,700    |                                                                           | -        |                                                                     | -        |                                                                               | -        |                                                                               | - |
| Convertible      debentures (Note 5)                                        |                                                                                                          | 13,800    |                                                                           | -        |                                                                     | -        |                                                                               | -        |                                                                               | - |
| Demand      loan (Note 6)                                                   |                                                                                                          | 46,000    |                                                                           | 26,000   |                                                                     | -        |                                                                               | 46,000   |                                                                               | - |
| Loans      from related party (Note 7)                                      |                                                                                                          | 40,000    |                                                                           | -        |                                                                     | 199      |                                                                               | 5,000    |                                                                               | 1,611 |
|                                                                        |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
|                                                                        |                                                                                                          | 178,500   |                                                                           | 26,000   |                                                                     | 199      |                                                                               | 51,000   |                                                                               | 1,611 |
|                                                                        |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| Increase      (decrease) in cash and cash equivalents                       |                                                                                                          | 14,500    |                                                                           | 5,139    |                                                                     | (14,576) |                                                                               | 13,004   |                                                                               | (20,095) |
|                                                                        |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| Cash      and cash equivalents, beginning of period                         |                                                                                                          | -         |                                                                           | 9,361    |                                                                     | 15,548   |                                                                               | 1,496    |                                                                               | 21,067 |
|                                                                        |                                                                                                          |      |                                                                           |     |                                                                     |     |                                                                               |     |                                                                               |   |
| Cash      and cash equivalents, end of period                               |                                                                                                          | 14,500    |                                                                           | 14,500   |                                                                     | 972      |                                                                               | 14,500   |                                                                               | 972 |

----

----

|                                                                                                              | Number      of shares      issued (Restated) | Capital      Stock (Restated) | Additional      paid      in capital (Restated) | Deficit,      accumulated during the development      stage | Stockholders’      deficiency |
|-------------------------------------------------------------------------------------------------------------------|----------------------------------------------|-------------------------------|-------------------------------------------------|-------------------------------------------------------------|-------------------------------------|
|                                                                                                              |                                         |                          |                                            | $                                                           |                                | $ |   | $ |   | $ |
|                                                                                                              |                                         |                          |                                            |                                                        |                                |   |   |   |   |   |
| Balance      at 27 November 2006 (inception)                                                                      |                                         | -                             |                                            | -                                                           |                                | - |   | - |   | - |
| Common      shares issued – cash ( $.0004 per      share ) (Note 8)                                         |                                         | 6,250,002                     |                                            | 63                                                          |                                | 2,437 |   | - |   | 2,500 |
| Common      shares issued – cash ($.003 per      share ) (Note 8)                                           |                                         | 14,500,002                    |                                            | 145                                                         |                                | 43,355 |   | - |   | 43,500 |
| Common      shares issued – cash ( $.06 per      sha re) (Note 8)                                           |                                         | 545,002                       |                                            | 5                                                           |                                | 32,695 |   | - |   | 32,700 |
| Net      loss for the period                                                                                      |                                         | -                             |                                            | -                                                           |                                | - |   | (19,332) |   | (19,332) |
|                                                                                                              |                                         |                          |                                            |                                                        |                                |   |   |   |   |   |
| Balance      at 31 May 2007                                                                                       |                                         | 21,295,006                    |                                            | 213                                                         |                                | 78,487 |   | (19,332) |   | 59,368 |
| Net      loss for the year                                                                                        |                                         | -                             |                                            | -                                                           |                                | - |   | (72,251) |   | (72,251) |
|                                                                                                              |                                         |                          |                                            |                                                        |                                |   |   |   |   |   |
| Balance      at 31 May 2008                                                                                       |                                         | 21,295,006                    |                                            | 213                                                         |                                | 78,487 |   | (91,583) |   | (12,883) |
|          Contributions to capital by related          party (Note      8) |                                         | -                             |                                            | -                                                           |                                | 45,929 |   | - |   | 45,929 |
| Net      loss for the year                                                                                        |                                         | -                             |                                            | -                                                           |                                | - |   | (58,090) |   | (58,090) |
|                                                                                                              |                                         |                          |                                            |                                                        |                                |   |   |   |   |   |
| Balance      at 31 May 2009                                                                                       |                                         | 21,295,006                    |                                            | 213                                                         |                                | 124,416 |   | (149,673) |   | (25,044) |
| Net      loss for the period                                                                                      |                                         | -                             |                                            | -                                                           |                                | - |   | (29,117) |   | (29,117) |
|                                                                                                              |                                         |                          |                                            |                                                        |                                |   |   |   |   |   |
| Balance      at 30 November 2009                                                                                  |                                         | 21,295,006                    |                                            | 213                                                         |                                | 124,416 |   | (178,790) |   | (54,161) |

----

----

| 1.   | Nature and Continuance of  Operations |
|----------------|---------------------------------------|

----

----

| 2.   | Significant      Accounting Policies |
|----------------|--------------------------------------|

----

----

----

----

----

----

----

----

----

----

| 3.   | Equipment |
|----------------|-----------|

|   |   |                    |   |   | Accumulated      amortization |                 | Net      Book Value |
|--------|--------|-------------------------|--------|--------|-------------------------------|----------------------|---------------------|
|   |   |                    |   | Cost   |                          | 30      November2009 |                | 31      May 2009(Audited) |
|   |   |                    |   | $      |                          | $                    |                | $ |   | $ |
|   |   |                    |   |   |                          |                 |                |   |   |   |
|   |   | Computer      equipment |   | 2,086  |                          | 1,281                |                | 805 |   | 1,057 |

| 4.   | Accounts Payable and Accrued      Liabilities |
|----------------|-----------------------------------------------|

| 5.   | ConvertibleDebentures |
|----------------|-----------------------|

|   |  30      November2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 31      May2009(Audited) |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $                        |   | $ |
|   | Issued      on 24 December 2008, the convertible debenture bears interest at 10% per      annum on any unpaid principal and interest balance and is secured by      a general charge on the assets of the Company.  The principal      amount is repayable at any time in whole or in part and accrued interest      shall be due at the end of each calendar quarter, with the first payment      due on the last day of the first calendar quarter after 24 December 2008.      The holder of the convertible debenture has the right to convert any      portion of the unpaid principal and/or accrued interest into common shares      of the Company at any time up to 24 December 2011 at $0.0125 per Unit      where a Unit consists of one common share for an equivalent amount of      principal and interest due and payable. During the six month period      ended 30 November 2009, the Company accrued interest expense of $264 (30      November 2008 – $Nil). The balance as at 30 November 2009 consists of      principal and accrued interest of $5,000 (31 May 2009 – $5,000) and $480      (31 May 2009 – $216), respectively (Notes 10 and 11). | 5,480                    |   | 5,216 |
|   |  Issued      on 24 December 2008, the convertible debenture bears interest at 10% per      annum on any unpaid principal and interest balance and is secured by a      general charge on the assets of the Company.  The principal      amount is repayable at any time in whole or in part and accrued interest      shall be due at the end of each calendar quarter, with the first payment      due on the last day of the first calendar quarter after 24 December 2008.      The holder of the convertible debenture has the right to convert any      portion of the unpaid principal and/or accrued interest into common shares      of the Company at any time up to 24 December 2011 at $0.0125 per Unit      where a Unit consists of one common share for an equivalent amount of      principal and interest due and payable. During the six month period      ended 30 November 2009, the Company accrued interest expense of $264(30      November 2008 – $Nil). The balance as at 30 November 2009 consists of      principal and accrued interest of $5,000 (31 May 2009 – $5,000) and $480      (31 May 2009 – $216), respectively (Notes 10 and 11). | 5,480                    |   | 5,216 |
|   |  Issued      on 5 March 2009, the convertible debenture bears interest at 10% per annum      on any unpaid principal and interest balance and is secured by a general      charge on the assets of the Company.  The principal amount is      repayable at any time in whole or in part and accrued interest shall be      due at the end of each calendar quarter, with the first payment due on the      last day of the first calendar quarter after 5 March 2009. The holder of      the convertible debenture has the right to convert any portion of the      unpaid principal and/or accrued interest into common shares of the Company      at any time up to 5 March 2012 at $0.0125 per Unit where a Unit consists      of one common share for an equivalent amount of principal and interest due      and payable. During the six month period ended 30 November 2009, the      Company accrued interest expense of $197 (30 November 2008 – $Nil). The      balance as at 30 November 2009 consists of principal and accrued interest      of $3,800 (31 May 2009 – $3,800) and $288 (31 May 2009 – $91),      respectively (Notes 10 and 11).             | 4,088                    |   | 3,891 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 15,048                   |   | 14,323 |

----

----

| 6.   | Demand      Loans |
|----------------|-------------------|

|   |  30      November2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 31      May2009(Audited) |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $                        |   | $ |
|   | Issued      on  18      June 2009, the demand loan bears interest at 2% per annum on      any unpaid principal and interest balance and is secured by a general      charge on the assets of the Company. The principal amount is repayable at      any time in whole or in part and accrued interest shall be due at the end      of each calendar quarter, with the first payment due on the last day of      the first calendar quarter after 30 June 2009. During the isx month      period ended 30 November 2009, the Company accrued interest expense of      $181 (30 November 2008 – $Nil). The balance as at 30 November      2009 consists of principal and accrued interest of $20,000 (31 May 2009 –      $Nil) and $181 (31 May 2009 – $Nil), respectively (Notes 10 and      11).             | 20,181                   |   | - |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                     |   |   |
|   | Issued      on 15 September 2009, the demand loan bears interest at 2% per      annum on any unpaid principal and interest balance and is secured by a      general charge on the assets of the Company. The principal amount is      repayable at any time in whole or in part and accrued interest shall be      due at the end of each calendar quarter, with the first payment due on the      last day of the first calendar quarter after 30 September 2009.      During the six month period ended 30 November 2009, the Company      accrued interest expense of $42 (30 November 2008 – $Nil). The      balance as at 30 November 2009 consists of principal and accrued interest      of $20,000 (31 May 2009 – $Nil) and $42 (31 May 2009 – $Nil), respectively      (Notes 10 and 11). | 10,042                   |   | - |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                     |   |   |
|   | Issued      on 11 November 2009, the demand loan bears interest at 2% per annum on any      unpaid principal and interest balance and is secured by a general charge      on the assets of the Company. The principal amount is repayable at any      time in whole or in part and accrued interest shall be due at the end of      each calendar quarter, with the first payment due on the last day of the      first calendar quarter after 30 November 2009. During the six      month period ended 30 November 2009, the Company accrued interest expense      of $12 (30 November 2008 – $Nil). The balance as at 30 November 2009      consists of principal and accrued interest of $16,000 (31 May 2009 – $Nil)      and $12 (31 May 2009 – $Nil), respectively (Notes 10 and    11).                    | 16,012                   |   | - |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                     |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 46,235                   |   | - |

| 7.   | Due      to Related Party and Related PartyTransaction |
|----------------|--------------------------------------------------------|

----

----

| 8.   | Capital      Stock |
|----------------|--------------------|

The common stock is not subject to warrants, agreements or options at30 November 2009.

| 9.   | Income      Taxes |
|----------------|-------------------|

|   |                                     |   | For      the six month period ended 30 November 2009 |   | For      the six month period ended 30 November 2008 |
|--------|------------------------------------------|--------|-----------------------------------------------------------|--------|-----------------------------------------------------------|
|   |                                     |   | $                                                         |   | $                                                         |
|   |                                     |   |                                                      |   |                                                      |
|   | Deferred      tax asset attributable to: |   |                                                      |   |                                                      |
|   | Current      operations                  |   | 8,041                                                     |   | 9,987                                                     |
|   | Less:      Change in valuation allowance |   | (8,041)                                                   |   | (9,987)                                                   |
|   |                                     |   |                                                      |   |                                                      |
|   | Net      refundable amount               |   | -                                                         |   | -                                                         |

----

----

|   |                                            |   | 30      November2009 |   | 31      May2009(Audited) |
|--------|-------------------------------------------------|--------|----------------------|--------|--------------------------|
|   |                                            |   | $                    |   | $                        |
|   |                                            |   |                 |   |                     |
|   | Net      income tax operating loss carryforward |   | 143,770              |   | 113,624                  |
|   |                                            |   |                 |   |                     |
|   | Statutory      federal income tax rate          |   | 15%-30.67%           |   | 15%-30.67%               |
|   |                                            |   |                 |   |                     |
|   | Deferred      tax asset                         |   | 41,443               |   | 33,087                   |
|   | Less:      Valuation allowance                  |   | (41,443)             |   | (33,087)                 |
|   |                                            |   |                 |   |                     |
|   | Net      deferred tax asset                     |   | -                    |   | -                        |

| 10.   | Supplemental      Disclosures with Respect to CashFlows |
|-----------------|---------------------------------------------------------|

|   |                                              | For      the period from the date of inception on 27 November 2006 to30      November2009 |   | For      the three      month period      ended 30      November 2009 |   | For      the three      month period      ended 30      November 2008 |   | For      the six  month      period      ended 30      November 2009 |   | For      the six      month period      ended 30      November 2008 |
|--------|---------------------------------------------------|-------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|
|   |                                              |                                                                                      | $      |                                                                  | $      |                                                                  | $      |                                                                           | $      |                                                                | $ |
|   | Cash      paid during the period for interest     |                                                                                      |   |                                                                  |   |                                                                  |   |                                                                           |   |                                                                |
|   | Cash      paid during the period for income taxes | -                                                                                         |   | -                                                                     |   | -                                                                     |   | -                                                                              |   | -                                                                   |
|   | Foreign      exchange loss                        | 5,475                                                                                     |   | 2,221                                                                 |   | 1,566                                                                 |   | 4,137                                                                          |   | 1,759                                                               |

| 11.   | Contingency |
|-----------------|-------------|

| 12.   | Subsequent      Events |
|-----------------|------------------------|

----

----

| 13.   | Restatement      of Consolidated FinancialStatements |
|-----------------|------------------------------------------------------|

----

| ITEM      2. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------|

----

----

----

```
We are not currently a party to any pending legal proceeding.
```

```
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
```

```
None.  ITEM 3. DEFAULT UPON SENIOR SECURITIES None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS  On October 5, 2009, upon approval of the holders of the majority of our issued and outstanding common stock, we completed a 2.5 to 1 forward stock split, which increased the  number of issued and outstanding shares of common stock from 8,518,000 common shares to 21,295,006 shares, with the same par value of $0.00001. The forward stock split did not increase the authorized capital stock of the Company.   23   ITEM 5. OTHER INFORMATION AND SUBSEQUENT EVENTS None. ITEM 6. EXHIBITS
```

| Exhibit      No. | Document      Description                                                                                                                                                                                 |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                      |
| 31.1             | Certification      of Principal Executive Officer and Principal Financial Officer pursuant to      18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
|             |
| 32.1             | Certification      of Principal Executive Officer and Principal Financial Officer pursuant to      18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002      |

|   | PRINCIPLE      SECURITY INTERNATIONAL, INC. |
|--------|---------------------------------------------|
|   | (Registrant)                                |
|   |                                        |   |
|   | /s/                                         | CHARLES      PAYNE |
|   |  By:                                   | Charles      Payne |
|   |                                        | President,      Principal Executive Officer, Principal Accounting Officer, Principal      Financial Officer, Treasurer, Chairman of the Board of      Directors |

----