UNITED STATES

| Nevada                                                                   | 26-0592672                      |
|--------------------------------------------------------------------------|---------------------------------|
| (state or      other jurisdiction of incorporation      or organization) | (I.R.S.      Employer I.D. No.) |
|                                                                     |                            |

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Tableof Contents

|  PART I - FINANCIAL INFORMATION                                                                                                  |      |
|---------------------------------------------------------------------------------------------------------------------------------------|-----------|
|     Item 1.      Unaudited      Financial Statements and related      Notes                             | F-1 - F-2 |
|     Item 2.      Management’s Discussion and Analysis of Financial Condition and Results of      Operations | 3         |
|     Item 3.      Quantitative and Qualitative Disclosures About Market      Risk                                  | 6         |
|     Item 4.      Controls and Procedures                                                                          | 6         |
|  PART II – OTHER      INFORMATION                                                                                          |      |
|     Item 1.      Legal Proceeding                                                                                 | 7         |
|     Item 2.      Unregistered Sales of Equity Securities and Use of      Proceeds                                 | 7         |
|     Item 3.      Defaults Upon Senior Securities                                                                  | 8         |
|     Item 4.      Submission of Matters to a Vote of Security      Holders                                         | 8         |
|     Item 5.      Other Information                                                                                | 8         |
|     Item 6.      Exhibits                                                                                         | 8         |

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Consolidated 

|                                                                                                                                                                                                     | August      31, 2008               | May      31, 2008    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|----------------------|
|                                                                                                                                                                                                     | (Unaudited)                        |                 |
| ASSETS                                                                                                                                                                                                   |                               |                 |
| Current      Assets                                                                                                                                                                                      |                               |                 |
| Cash                                                                                                                                                                                                     |  $    932 | $  26,201  |
| Taxes      receivable                                                                                                                                                                                    | 25,063                             | 18,418               |
| Security      deposit and prepaid expenses                                                                                                                                                               | 2,003                              | 1,008                |
|         Total Current Assets                                                                                                                                                                   | 27,998                             | 45,627               |
| Intangible      Assets                                                                                                                                                                                   | 42,815                             | 42,815               |
| Property and      Equipment –net of accumulated depreciation of$19,174 and      $14,219   as of August 31, 2008 and 2007, respectively      May 31, 2008,      respectively         | 79,046                             | 55,682               |
| Total      Assets                                                                                                                                                                                        | $149,859                           | $144,124             |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                |                               |                 |
| Current      Liabilities                                                                                                                                                                                 |                               |                 |
| Accounts      payable and accrued liabilities                                                                                                                                                            | $  157,769               | $  135,309 |
| Accounts      payable-related party (Note 3)                                                                                                                                                             | 19,500                             | 49,750               |
| Due to      related party                                                                                                                                                                                | 54,350                             | 53,558               |
| Total      Liabilities                                                                                                                                                                                   | 231,619                            | 238,617              |
| Contingency      and Commitments (Note 6)                                                                                                                                                                |                               |                 |
| Stockholders’      Equity (Deficit)                                                                                                                                                                |                               |                 |
| Preferred      Stock  Authorized: 20,000,000      shares, par value $0.00001  Issued: noshares                                                                                            | –                            | –              |
| Common Stock      (Note 7)Authorized: 100,000,000 shares, par      value $0.00001Issued and outstanding: 26,002,661 and      23,452,661 shares as of August      31, 2008 and May 31, 2008, respectively | 261                                | 235                  |
| Additional      Paid-In Capital                                                                                                                                                                          | 2,367,223                          | 1,951,884            |
| Accumulated      Other Comprehensive Income                                                                                                                                                              | 7,120                              | -                    |
| Deficit      Accumulated During the Development Stage                                                                                                                                                    | (2,456,364)                        | (2,046,612)          |
| Total      Stockholders’ Equity (Deficit)                                                                                                                                                          | (81,760)                           | (94,493)             |
| Total      Liabilities and Stockholders’ Equity (Deficit)                                                                                                                                          | $  149,859               | $  144,124 |

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Consolidated 

|                                                                         | For      the Three Months EndedAugust      31,                            | January      22, 2007 (Inception)      toAugust      31,                                                       |
|------------------------------------------------------------------------------|---------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|
|                                                                         | 2008                                                                      | 2007                                                                                                           | 2008 |
| Revenue                                                                      | $          8,000        | $                 – | $             8,000 |
| Operating      Expenses                                                      |                                                                      |                                                                                                           |   |
| Depreciation      and amortization                                           | 4,955                                                                     | 1,600                                                                                                          |     26,174 |
| Business      development                                                    | 1,449                                                                     | –                                                                                                        | 202,102 |
| Consulting      and advisory                                                 | 23,773                                                                    | 36,497                                                                                                         | 366,916 |
| Management      fees                                                         | 94,033                                                                    | –                                                                                                        | 354,000 |
| General and      administrative                                              | 42,639                                                                    | 194,175                                                                                                        | 286,246 |
| Research and      development                                                | 19,624                                                                    | –                                                                                                        | 102,052 |
| Shareholder      communication, awareness, financing                         | 104,491                                                                   | –                                                                                                        | 288,403 |
| Professional      fees                                                       | 91,363                                                                    | 16,000                                                                                                         | 283,618 |
| Salary      expenses                                                         | 23,235                                                                    | –                                                                                                        |            23,235 |
| Travel meals      and entertainment                                          | 5,221                                                                     | –                                                                                                        | 216,334 |
| Public      listing costs                                                    | 1,817                                                                     | –                                                                                                        | 148,864 |
| Website      development/Corporate branding                                  | 538                                                                       | –                                                                                                        |          161,806 |
| Total      Operating Expenses                                                | 413,138                                                                   | 284,272                                                                                                        |   2,459,750 |
| Net      Operating Loss                                                      | $     (405,138)                                  | $    (284,272)                                                                             | $   (2,451,750) |
| Other      Income/(Expense)                                                  |        (4,614)                         | –                                                                                                        |    (4,614) |
| Net      Loss before Comprehensive Income                                    | $     (409,752)                                  | $    (284,272)                                                                             | $   (2,456,364) |
| Gain on      Foreign Currency Translation                                    | 7,120                                                                     | –                                                                                                        |    7,120 |
| Net      Comprehensive Loss                                                  | $     (402,632)                                  | $    (284,272)                                                                             | $   (2,449,244) |
| Net Loss Per      Share                                                      |                                                                      |                                                                                                           |   |
| Continuing      Operations – Basic and Diluted                         | $           (0.02) | $           (0.01)                                      |   |
| Weighted      Average Number of Shares Outstanding – Basic and Diluted | 25,112,308                                                                | 19,087,760                                                                                                     |   |

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August 

|                                                                                  | For      the Three Months EndedAugust      31,                                     | January      22, 2007 (Inception)      toAugust      31, |
|---------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|----------------------------------------------------------|
|                                                                                  | 2008                                                                               | 2007                                                     | 2008 |
| Operating      Activities                                                             |                                                                               |                                                     |   |
| Net      loss                                                                         | $  (409,752)                                                             | $  (248,272)                                   |          $      (2,456,364) |
| Adjustments      to reconcile net loss to net cash used in operating      activities: |                                                                               |                                                     |   |
| Depreciation      and amortization                                                    | 4,955                                                                              | 1,600                                                    | 26,174 |
| Shares issued      for services                                                       | 53,376                                                                             | –                                                  |          574,576 |
| Stock based      compensation                                                         | 61,989                                                                             | –                                                  |                 220,873 |
| Changes in      operating assets and liabilities                                      |                                                                               |                                                     |   |
| Taxes      receivable                                                                 | (6,645)                                                                            | (6,645)                                                  |                 (25,063) |
| Security      deposit and prepaid expenses                                            | (995)                                                                              |                                                     |                   (2,003) |
| Other      assets                                                                     | –                                                                            | –                                                  |                 (12,000) |
| Accounts      payable and accrued liabilities                                         | 22,460                                                                             | 54,929                                                   |                 157,769 |
| Due to      related parties                                                           | (30,250)                                                                           | 10,884                                                   |                   73,058 |
| Net      Cash Used in Operating Activities                                            | (304,862)                                                                          | (207,031)                                                |            (1,442,980) |
| Investing      Activities                                                             |                                                                               |                                                     |   |
| Purchase of      property and equipment                                               | (28,319)                                                                           | (19,501)                                                 |       (98,220) |
| Net      Cash Used in Investing Activities                                            | (28,319)                                                                           | (19,501)                                                 | (98,220) |
| Financing      Activities                                                             |                                                                               |                                                     |   |
| Proceeds from      exercise of warrants                                               | –                                                                            | –                                                  | 137,500 |
| Proceeds from      issuance of common stock                                           | 300,000                                                                            | 395,040                                                  | 1,396,720 |
| Proceeds from      debt- related party                                                | 20,913                                                                             | –                                                  | 20,913 |
| Payments on      debt- related party                                                  | (20,121)                                                                           | –                                                  | (20,121) |
| Net      Cash Provided by Financing Activities                                        | 300,792                                                                            | 395,040                                                  | 1,535,012 |
| Effect      of Foreign Currency Translation                                           | 7,120                                                                              | –                                                  | 7,120 |
| Change      in Cash                                                                   | (25,269)                                                                           | 106,856                                                  | 932 |
| Cash      – Beginning                                                           | 26,201                                                                             | 13,982                                                   | – |
| Cash      – Ending                                                              | $             932 | $   180,838                               | $          932 |
| Supplemental      Disclosures:                                                        |                                                                               |                                                     |   |
| Interest      paid                                                                    | –                                                                            | –                                                  | – |
| Income taxes      paid                                                                | –                                                                            | –                                                  | – |
| Non-cash      Activity                                                                |                                                                               |                                                     |   |
| Stock issued      for patent                                                          | –                                                                            | –                                                  | $    10,000 |
| Options      issued for patent                                                        | –                                                                            | –                                                  | $    27,854 |

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Consolidated 

| 1. | Basis of      Presentation |
|----|----------------------------|

| 2. | Going      Concern |
|----|--------------------|

| 3. | Comprehensive      Income |
|----|---------------------------|

| 4. | Foreign      Currency Translation |
|----|-----------------------------------|

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|   | a) | 37,500 shares      of common stock at $0.19 per share for contract services of      $7,126. |
|--------|----|---------------------------------------------------------------------------------------------|

|   | b) | 2,400,000      units at $0.125 per share for total cash proceeds of $300,000. Each unit      consists of one share of common stock and one share purchase warrant      exercisable at $0.20 until May 28,2009. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | 50,000 shares      of common stock at $0.40 per share for CFO management services of      $20,000. |
|--------|----|----------------------------------------------------------------------------------------------------|

|   | d) | 62,500 shares      of common stock at $0.42 per share for contract services of      $26,250. |
|--------|----|----------------------------------------------------------------------------------------------|

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|                              |   Number of Options | Weighted      Average      Exercise Price$ | Weighted      Average Remaining Contractual Term(Months) | Aggregate      Intrinsic      Value$ |
|-----------------------------------|--------------------------|--------------------------------------------|----------------------------------------------------------|--------------------------------------|
| Outstanding,      May 31, 2008    | 1,450,000                | 0.33                                       |                                                     |                                 |
|   Granted               | 350,000                  | 0.33                                       |                                                     |                                 |
|   Cancelled             | (300,000)                | 0.25                                       |                                                     |                                 |
| Exercisable,      August 31, 2008 | 1,500,000                | 0.35                                       | 18                                                       | –                              |

| Grant Date         | Expected      Life(Months) | Expected      Volatility | DividendYield | Risk      FreeRate | Weighted      AverageGrant      Date Fair      Value |
|--------------------|----------------------------|--------------------------|---------------|--------------------|------------------------------------------------------|
| June 9,      2008  | 6                          | 95.30%                   | 0%            | 2.12%              | $6,684                                               |
| July 1,      2008  | 12                         | 95.64%                   | 0%            | 2.38%              | $31,533                                              |
| July 16,      2008 | 12                         | 98.04%                   | 0%            | 2.16%              | $11,886                                              |
| July 16,      2008 | 12                         | 98.04%                   | 0%            | 2.16%              | $11,886                                              |

| Number      of Options | Exercise      Price | Expiry      Date       |
|------------------------|---------------------|------------------------|
| 100,000                | $0.20               | June 9,      2009      |
| 75,000                 | $0.25               | August 30,      2009   |
| 250,000                | $0.25               | October 4,      2009   |
| 50,000                 | $0.25               | October 31,      2009  |
| 100,000                | $0.40               | November 2,      2009  |
| 100,000                | $0.25               | December 31,      2009 |
| 50,000                 | $0.40               | December 13,      2009 |
| 200,000                | $0.75               | February 4,      2010  |
| 75,000                 | $0.45               | April 25,      2010    |
| 150,000                | $0.25               | June 30,      2010     |
| 100,000                | $0.25               | July 15,      2010     |
| 250,000                | $0.25               | October 13,      2012  |
| 1,500,000              |                |                   |

| 9. | Warrants |
|----|----------|

| Grant      Date   | Expected      Life(Months) | ExpectedVolatility | DividendYield | Risk      FreeRate | Weighted      Average      Grant      Date      Fair      Value |
|-------------------|----------------------------|--------------------|---------------|--------------------|-----------------------------------------------------------------|
| July 2,      2008 | 6                          | 95,68%             | 0%            | 2.10%              | $0.22                                                           |

| Number of      Warrants | Exercise      Price | Expiry      Date       |
|-------------------------|---------------------|------------------------|
| 4,000,000               | $0.20               | May 28,      2009      |
| 103,750                 | $0.50               | November 19,      2009 |
| 6,250                   | $0.50               | November 20,      2009 |
| 45,000                  | $0.50               | December 1,      2009  |
| 35,000                  | $0.50               | December 5,      2009  |
| 221,250                 | $0.50               | December 10,      2009 |
| 37,500                  | $0.50               | December 18,      2009 |
| 100,000                 | $0.50               | February 28,      2010 |
| 75,000                  | $0.50               | May 01,      2010      |
| 4,623,750               |                |                   |

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Item 2. Management’sDiscussion and Analysis of Financial Condition and Results ofOperations

|   | ·  |   Mantra      Energy Alternatives Ltd., through which we identify, acquire, develop and      market technologies related to alternative energy production, greenhouse      gas emissions reduction and resource consumption reduction; |
|--------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                                                                                             |
|   | ·       | Carbon      Commodity Corp., through which we intend to license or develop carbon      footprint assessment software and develop an online carbon reduction      marketplace;                                                                    |

|   | · | Climate ESCO      Ltd., through which we plan obtain the distribution or licensing rights to      commercialized technologies and broker them to residential and industrial      consumers seeking sustainabilitysolutions; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mantra Media      Corp., through which we offer promotional and marketing services to      companies in the sustainability sector or those seeking to adopt      sustainable practices; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mantra Wind      Inc., through which we plan to develop small to medium scale wind      farms; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | Mantra China      Inc., our majority owned subsidiary, through which we intend to distribute      Asian-produced technologies in North America;  and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Mantra China      Limited, through which we, together with our joint venture partners, plan      to develop our business in Hong Kong and mainland  China. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

Results of Operations for the Period From January 22, 2007 (Date ofInception) to August 31, 2008 and for the Three Months Ended August 31,2008

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| Date      of issuance                                                  | Type      of security      issued | Number      of securities issued | Price      per security($) | Total      funds received($) |
|------------------------------------------------------------------------|-----------------------------------|----------------------------------|----------------------------|------------------------------|
| June      2008                                                         | Options                           | 100,000                          | 0.20                       | For      services            |
| Common      Shares                                                     | 37,500                            | 0.20                             | For      services          |
| July      2008July      2008July      2008July      2008July      2008 | Common      Shares                | 50,000                           | 0.40                       | For      services            |
| Options                                                                | 150,000                           | 0.25                             | For      services          |
| Units                                                                  | 2,400,000                         | 0.125                            | 300,000                    |
| Common      Shares                                                     | 62,000                            | 0.45-                            | For      services          |

| Description                                                                | Estimated      expenses ($) |
|----------------------------------------------------------------------------|----------------------------------|
| Full launch      and development of an online carbon reduction marketplace | 100,000                          |
| Development      and marketing of the ERC Technology                       | 2,800,000                        |
| Development      of promotional and marketing service business             | 225,000                          |
| Evaluation      and acquisition of new technologies                        | 600,000                          |
| Total                                                                      | 3,725,000                        |

| Description                                                                                    | Target      completion date or period | Estimated      expenses ($) |
|------------------------------------------------------------------------------------------------|---------------------------------------|----------------------------------|
| Completion of      road shows                                                                  | December 31,      2008                | 26,000                           |
| Management      and consulting fees (including expenses of our Scientific Advisory      Board) | 12      months                        | 700,000                          |
| Raise      additional private or public equity (legal, accounting and marketing      fees)     | December 31,      2008                | 176,000                          |
| Legal and      professional fees                                                               | 12      months                        | 140,500                          |
| Travel and      promotional expenses                                                           | 12      months                        | 230,000                          |
| General and      administrative expenses                                                       | 12      months                        | 129,500                          |
| Total                                                                                          |                                  | 1,402,000                        |

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ativ

Item 4. Controls and Procedures.

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Item 1. LegalProceedings

Use 

|   | · | On June 9,      2008, we issued options to purchase 100,000 common shares to Primus Public      Relations pursuant to an investor relations service agreement. The options      are exercisable at a price of $0.20 per share for the period of one year      after the date of issuance. These securities were issued without a      prospectus pursuant to Regulation S of the Securities  Act. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On June 10,      2008, we issued 100,000 restricted common shares to Qualico Capital Corp.      as compensation for public relations services performed from May 14 to      December 14, 2008. These securities were issued without a prospectus      pursuant to Regulation S of the SecuritiesAct. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On June 15,      2008, we issued 37,500 common shares to ECON Corporate Services, Inc.      (“ECON”) pursuant to a consulting agreement whereby we agreed to issue      150,000 common shares to ECON as compensation for investor services, which      shares are to be issued in four quarterly installments during the term of      the agreement. The shares were issued at a price of $0.20 per share. These      securities were issued without a prospectus pursuant to Regulation S of      the Securities Act. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On July 1,      2008, we issued 50,000 restricted common shares and an option to purchase      150,000 common shares to Q4 Financial Group Inc. pursuant to a consulting      agreement as of July 1, 2008, whereby Dennis Petke, President of Q4      Financial Group Inc will act as our Chief Financial Officer. The common      shares were issued at $0.40 per share. The option is exercisable at a      price of $0.25 per share within two years after the date of issuance.      These securities were issued without a prospectus pursuant to Regulation S      of the Securities Act. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On July 2,      2008, we issued 4,000,000 units at a price of $0.125 per unit to Metradon      Ventures Limited. Each unit consists of one common share and one warrant      to purchase one common share at a price of $0.20 per share until July 2,      2009. The proceeds are to be received in two installments of $200,000 and      $300,000 respectively. These securities were issued without a prospectus      pursuant to Regulation S of the Securities  Act. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On July 2,      2008, we cancelled 100,000 restricted common shares issued to Qualico      Capital Corp. on June 10, 2008 as compensation for public relations      services due to failure of Qualico Capital to provide services in      accordance with the agreement of May 14,2008. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On July 17,      2008, we issued 62,000 common shares at $0.45 per share to      SmallCapVoice.com pursuant to a financial public relations agreement dated      July 15, 2008. These securities were issued without a prospectus pursuant      to Regulation S of the SecuritiesAct. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Defaults Upon 

| Exhibit No. | Description                                                                                                                                                            |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1        | Certification of the Chief Executive Officer Pursuant to      Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
| 31.2        | Certification of the Chief Financial Officer Pursuant to      Rule 13a-14 or 15d-14 of the Exchange Act pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
| 32.1        | Certification of the Chief Executive Officer Pursuant to      18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002         |
| 32.2        | Certification of the Chief Financial Officer Pursuant to      18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002         |

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NATU

|                        | Mantra      Venture Group Ltd.                                  |
|-----------------------------|-----------------------------------------------------------------|
|                        | (Registrant)                                                    |
|                        |                                                            |
|                        | /s/ Larry      Kristof                                          |
| Date: October      20, 2008 | Larry      Kristof                                              |
|                        | President,      Chief Executive Officer Director                |
|                        |                                                            |
|                        | /s/      Dennis      Petke                                      |
| Date: October      20, 2008 | Dennis      Petke                                               |
|                        | Chief      Financial Officer, Principal      Accounting Officer |