----

----

----

| x | QUARTERLY REPORT UNDER SECTION      13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT  OF 1934 |
|---|-------------------------------------------------------------------------------------------------------|

|   | For      the quarterly period ended: June 30,2008 |
|--------|---------------------------------------------------|

| o | TRANSITION      REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT      OF 1934 |
|---|-------------------------------------------------------------------------------------------------------|

|   | For      the transition period from ___________ to  ____________ |
|--------|------------------------------------------------------------------|

----

| Nevada                               | 76-0766174               |
|--------------------------------------|--------------------------|
| (State      or other jurisdiction of | (I.R.S.      Employer    |
| Incorporation      or organization)  | Identification      No.) |

----

----

| Large Accelerated      filer                           | o      | Accelerated Filer              | o      |
|--------------------------------------------------------|--------|--------------------------------|--------|
|                                                   |   |                           |   |
| Non-accelerated      filer                             | o      | Smaller Reporting      Company | x      |
| (Do not check if      smaller reporting company)  |   |                           |

----

|                                                                                                                                                            | Page   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Part I      - Financial Information                                                                                                                        |
|                                                                                                                                                            |   |
| Item 1. Financial      Statements                                                                                                                               | 3      |
|                                                                                                                                                            |   |
| Balance Sheets as of      June 30, 2008 (Unaudited) and December 31, 2007                                                                                       | 3      |
|                                                                                                                                                            |   |
| Statements of      Operations (Unaudited) for the Six and Three Months Ended June 30, 2008      and 2007 and from July 26, 1994 (Inception) to June 30,    2008 | 4      |
|                                                                                                                                                            |   |
| Statements of      Stockholders' Equity (Unaudited) from July 26, 1994 (Inception) to June      30, 2008                                                        | 5      |
|                                                                                                                                                            |   |
| Statements of Cash      Flows (Unaudited) for the Six and Three Months Ended June 30, 2008 and      2007 and from July 26, 1994 (Inception) to June 30, 2008    | 7      |
|                                                                                                                                                            |   |
| Notes to Financial      Statements                                                                                                                              | 8      |
|                                                                                                                                                            |   |
| Item 2. Management's      Discussion and Analysis of Financial Condition and Results of      Operations                                                         | 15     |
|                                                                                                                                                            |   |
| Item 3. Quantitative      and Qualitative Disclosures About Market Risk                                                                                         | 18     |
|                                                                                                                                                            |   |
| Item 4T. Controls      and Procedures                                                                                                                           | 18     |
|                                                                                                                                                            |   |
| Part II - Other      Information                                                                                                                                |
|                                                                                                                                                            |   |
| Item 1. Legal      Proceedings                                                                                                                                  | 18     |
|                                                                                                                                                            |   |
| Item 1(A). Risk      Factors                                                                                                                                    | 18     |
|                                                                                                                                                            |   |
| Item 2. Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                        | 18     |
|                                                                                                                                                            |   |
| Item 3. Defaults      Upon Senior Securities                                                                                                                    | 18     |
|                                                                                                                                                            |   |
| Item 4. Submission      of Matters to a Vote of Security Holders                                                                                                | 19     |
|                                                                                                                                                            |   |
| Item 5. Other      Information                                                                                                                                  | 19     |
|                                                                                                                                                            |   |
| Item 6. Exhibits and      Reports on Form 8-K                                                                                                                   | 19     |
|                                                                                                                                                            |   |
| Signatures                                                                                                                                                      | 19     |

----

| AmerElite      Solutions, Inc.                                        |
|-----------------------------------------------------------------------|
| (A      Development Stage Company)                                    |
|                                                                  |   |   |   |   |   |   |
| Balance      Sheets                                                   |
| (Unaudited)                                                           |
|                                                                  |   |   |   |   |   |   |
|                                                                  |   |   |   |   | December      31, |   |
|                                                                  |   | June      30, |   |   | 2007 |   |
|                                                                  |   | 2008 |   |   | (Audited) |   |
|                                                                  |   |   |   |   |   |   |
| ASSETS                                                                |
|                                                                  |   |   |   |   |   |   |
| Current      Assets:                                                  |   |   |   |   |   |   |
| Cash      and Cash Equivalents                                        |   | $ | 1,123 |   |   | $ | 7,128 |   |
| Accounts      Receivable                                              |   |   | 331 |   |   |   | 775 |   |
| Accrued      Interest Receivable                                      |   |   | - |   |   |   | - |   |
| Inventory                                                             |   |   | 22,033 |   |   |   | 22,141 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Total      Current Assets                                             |   |   | 23,487 |   |   |   | 30,044 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Fixed      Assets:                                                    |   |   |   |   |   |   |   |   |
| Furniture      and Equipment, net                                     |   |   | 11,108 |   |   |   | 13,775 |   |
| Other      Assets:                                                    |   |   |   |   |   |   |   |   |
| Formula      and Rights                                               |   |   | 400,000 |   |   |   | 400,000 |   |
| Trademarks,      Trade Names                                          |   |   | 13,054 |   |   |   | 13,054 |   |
| Deposits                                                              |   |   | 1,135 |   |   |   | 1,135 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Total      Assets                                                     |   | $ | 448,784 |   |   | $ | 458,008 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY                             |
|                                                                  |   |   |   |   |   |   |   |   |
| Current      Liabilities                                              |   |   |   |   |   |   |   |   |
| Accounts      Payable                                                 |   | $ | 276,532 |   |   | $ | 92,831 |   |
| Accrued      Payroll                                                  |   |   | 70,000 |   |   |   | 70,000 |   |
| Accrued      Interest Payable                                         |   |   | - |   |   |   | - |   |
| Notes      Payable                                                    |   |   | 2,500 |   |   |   | 2,500 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Total      Current Liabilities                                        |   |   | 349,032 |   |   |   | 165,331 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Total      Liabilities                                                |   |   | 349,032 |   |   |   | 165,331 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Stockholders'      Equity                                             |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Preferred      Stock, authorized 2,000,000                            |   |   |   |   |   |   |   |   |
| shares,      par value $0.001, issued and                             |   |   |   |   |   |   |   |   |
| outstanding      on June 30, 2008 and December 31,                    |   |   |   |   |   |   |   |   |
| 2007      is 550,000 and (0) zero respectively                        |   |   | 550 |   |   |   | 550 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Common      Stock, authorized 20,000,000                              |   |   |   |   |   |   |   |   |
| shares,      par value $0.00125, issued and                           |   |   |   |   |   |   |   |   |
| outstanding      on June 30, 2008 and December 31,                    |   |   |   |   |   |   |   |   |
| 2007      is 8,665,247 and 8,665,247 respectively                     |   |   | 10,831 |   |   |   | 10,831 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Additional      Paid-in Capital                                       |   |   | 2,478,156 |   |   |   | 2,478,156 |   |
| Subscriptions      (Receivable)/Cash Receipts                         |   |   | (76,226 | ) |   |   | (76,226 | ) |
| Accumulated      Deficit during Development Stage                     |   |   | (2,313,559 | ) |   |   | (2,120,634 | ) |
|                                                                  |   |   |   |   |   |   |   |   |
| Total      Stockholders' Equity                                       |   |   | 99,752 |   |   |   | 292,677 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Total      Liabilities and Stockholders' Equity                       |   | $ | 448,784 |   |   | $ | 458,008 |   |
|                                                                  |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these  statements |

----

| AmerElite      Solutions, Inc.                                      |   |
|---------------------------------------------------------------------|--------|
| (A      Development Stage Company)                                  |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Statements      of Operations                                       |   |
| (Unaudited)                                                         |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   | July      26, 1994 |   |
|                                                                |   | Three Months      Ended |   |   | Six      Months Ended |   |   | (Inception) |   |
|                                                                |   | June      30, |   |   | June      30, |   |   | to      June 30, |   |
|                                                                |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |
| Revenue                                                             |   | $ | 170 |   |   | $ | 5,444 |   |   | $ | 830 |   |   | $ | 15,054 |   |   | $ | 19,952 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Revenue                                                  |   |   | 170 |   |   |   | 5,444 |   |   |   | 830 |   |   |   | 15,054 |   |   |   | 19,952 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of Goods Sold                                             |   |   | 75 |   |   |   | 1,398 |   |   |   | 331 |   |   |   | 3,029 |   |   |   | 4,529 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      Profit                                                   |   |   | 95 |   |   |   | 4,046 |   |   |   | 499 |   |   |   | 12,025 |   |   |   | 15,423 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and Wages                                             |   |   | 70,000 |   |   |   | 88,261 |   |   |   | 140,000 |   |   |   | 133,604 |   |   |   | 632,198 |   |
| General      and Administrative                                     |   |   | 18,520 |   |   |   | 56,511 |   |   |   | 31,267 |   |   |   | 45,488 |   |   |   | 396,914 |   |
| Professional      and Consulting                                    |   |   | 4,317 |   |   |   | 14,496 |   |   |   | 22,158 |   |   |   | 91,800 |   |   |   | 496,216 |   |
| Product      Development                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 84,851 |   |
| Marketing                                                           |   |   | - |   |   |   | 8,980 |   |   |   | - |   |   |   | 27,904 |   |   |   | 289,551 |   |
| Investor      Relations                                             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 465,672 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Expenses                                                 |   |   | 92,837 |   |   |   | 168,248 |   |   |   | 193,425 |   |   |   | 298,796 |   |   |   | 2,365,402 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)      from Operations                                         |   |   | (92,742 | ) |   |   | (164,202 | ) |   |   | (192,926 | ) |   |   | (286,771 | ) |   |   | (2,349,979 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income/(Expense)                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,517 |   |
| Interest      Income                                                |   |   | - |   |   |   | 5,035 |   |   |   | - |   |   |   | 10,061 |   |   |   | 45,173 |   |
| Interest      Expense                                               |   |   | - |   |   |   | (6,033 | ) |   |   | - |   |   |   | (11,385 | ) |   |   | (13,217 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Other Income/(Expense)                                   |   |   | - |   |   |   | (998 | ) |   |   | - |   |   |   | (1,324 | ) |   |   | 36,473 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income/(Loss) Before Income Taxes                          |   |   | (92,742 | ) |   |   | (165,200 | ) |   |   | (192,926 | ) |   |   | (288,095 | ) |   |   | (2,313,506 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      Taxes                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (53 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income/(Loss)                                              |   | $ | (92,742 |  ) |   | $ | (165,200 | ) |   | $ | (192,926 | ) |   | $ | (288,095 | ) |   | $ | (2,313,559 | ) |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      (Loss) per Share                                         |   | $ | (0.01 | ) |   | $ | (0.03 | ) |   | $ | (0.02 | ) |   | $ | (0.05 | ) |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Average Number of Common Shares                       |   |   | 8,665,247 |   |   | $ | 5,442,416 |   |   |   | 8,665,247 |   |   |   | 5,442,416 |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of thesestatements |   |

----

| AmerElite      Solutions, Inc.                          |
|---------------------------------------------------------|
| (A      Development Stage Company)                      |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Statements      of Stockholders' Equity                 |
| (Unaudited)                                             |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inception      26-Jul-1994 to 30-Jun-2008               |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (Deficit) |   |   |   |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Stock |   |   | During |   |   |   |   |
|                                                    |   | Preferred      Stock |   |   | Common      Stock |   |   | Paid      in |   |   | Subscriptions |   |   | Development |   |   | Total |   |
|                                                    |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | (Receivable) |   |   | Stage |   |   | Equity |   |
| Balance,      Inception July 26, 1994                   |   |   | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   |   | - |   |   | $ | - |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued to founders                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    26-Jul-1994      @ $0.00125 per share |   |   |   |   |   |   |   |   |   |   | 2,080,000 |   |   |   | 2,600 |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 2,600 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for services                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    26-Jul-1994      @ $0.00125 per share |   |   |   |   |   |   |   |   |   |   | 80,000 |   |   |   | 100 |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   | 100 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (49,500 | ) |   |   | (49,500 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 1994                         |   |   | - |   |   |   | - |   |   |   | 2,160,000 |   |   |   | 2,700 |   |   |   | - |   |   |   | - |   |   |   | (49,500 | ) |   |   | (46,800 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Cash on                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    29-Jun-1995      @ $1.25 per share    |   |   |   |   |   |   |   |   |   |   | 80,000 |   |   |   | 100 |   |   |   | 49,900 |   |   |   |   |   |   |   |   |   |   |   | 50,000 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (181,369 | ) |   |   | (181,369 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2004                         |   |   | - |   |   |   | - |   |   |   | 2,240,000 |   |   | $ | 2,800 |   |   | $ | 49,900 |   |   | $ | - |   |   |   | (230,869 | ) |   | $ | (178,169 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Cash on                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    3-May-05      @ $0.50 per share       |   |   |   |   |   |   |   |   |   |   | 200,000 |   |   |   | 250 |   |   |   | 99,750 |   |   |   | (85,000 | ) |   |   |   |   |   |   | 15,000 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued to purchase                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Assets      on 11-May-05 @ $0.50      |   |   |   |   |   |   |   |   |   |   | 800,000 |   |   |   | 1,000 |   |   |   | 399,000 |   |   |   |   |   |   |   |   |   |   |   | 400,000 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Cash on                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    21-Jul-05      @ $1.00 per share      |   |   |   |   |   |   |   |   |   |   | 250,000 |   |   |   | 313 |   |   |   | 249,687 |   |   |   | (250,000 | ) |   |   |   |   |   |   | - |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Service                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    on      13-Oct-05 @ $0.83 per share   |   |   |   |   |   |   |   |   |   |   | 370,000 |   |   |   | 462 |   |   |   | 443,538 |   |   |   |   |   |   |   |   |   |   |   | 444,000 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares returned and cancelled               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    on      13-Oct-05 @ $0.83 per share   |   |   |   |   |   |   |   |   |   |   | (50,000 | ) |   |   | (63 | ) |   |   | (59,937 | ) |   |   |   |   |   |   |   |   |   |   | (60,000 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (483,422 | ) |   |   | (483,422 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2005                         |   |   | - |   |   |   | - |   |   |   | 3,810,000 |   |   |   | 4,762 |   |   |   | 1,181,938 |   |   |   | (335,000 | ) |   |   | (714,291 | ) |   |   | 137,409 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Service on                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 27-Jan-06      @ $0.683 per share                       |   |   |   |   |   |   |   |   |   |   | 205,000 |   |   |   | 256 |   |   |   | 139,744 |   |   |   |   |   |   |   |   |   |   |   | 140,000 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for employee                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation      on 27-Jan-06 @ $0.60                  |   |   |   |   |   |   |   |   |   |   | 327,500 |   |   |   | 410 |   |   |   | 196,090 |   |   |   |   |   |   |   |   |   |   |   | 196,500 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Common      Shares issued for Service                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|--------|------------|--------|--------|--------|----------|--------|
|    on      8-May-06 @ $0.828 per share                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   | 20,360    |   |   |   | 25     |   |   |   | 16,835    |   |   |   |     |   |   |   |       |   |   |   | 16,860   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      14-Jul-06 @ $0.312 per share                                                                                                                                                                  |   |   |    |   |   |   |   |   |   |   | 410,000   |   |   |   | 513    |   |   |   | 127,487   |   |   |   |     |   |   |   |       |   |   |   | 128,000  |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      17-Jul-06 @ $0.50 per share                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   | 500,000   |   |   |   | 625    |   |   |   | 249,375   |   |   |   |     |   |   |   |       |   |   |   | 250,000  |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      8-Nov-06 @ $0.50 per share                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   | 30,000    |   |   |   | 37     |   |   |   | 14,963    |   |   |   |     |   |   |   |       |   |   |   | 15,000   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|  Net      (Loss)                                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   | (936,760   | )      |   |   | (936,760 | )      |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2006                                                                                                                                                                                         |   |   | -       |   |   |   | -      |   |   |   | 5,302,860 |   |   |   | 6,628  |   |   |   | 1,926,432 |   |   |   | (335,000 | )      |   |   | (1,651,051 | )      |   |   | (52,991  | )      |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      24-Jan-07 @ $0.33 per share                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   | 160,000   |   |   |   | 200    |   |   |   | 52,800    |   |   |   |     |   |   |   |       |   |   |   | 53,000   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Cash      Received on Subscriptions                                                                                                                                                                                     |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   | 258,774  |   |   |   |       |   |   |   | 258,774  |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Preferred      Shares issued for Officer                                                                                                                                                                                |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    compensation      on 20-Feb-07 @ $0.30                                                                                                                                                                |   |   | 250,000 |   |   |   | 250    |   |   |   |      |   |   |   |   |   |   |   | 74,750    |   |   |   |     |   |   |   |       |   |   |   | 75,000   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for employee                                                                                                                                                                                  |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    compensation      on 3-Jul-07 @ $0.10                                                                                                                                                                 |   |   |    |   |   |   |   |   |   |   | 900,000   |   |   |   | 1,125  |   |   |   | 88,875    |   |   |   |     |   |   |   |       |   |   |   | 90,000   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      3-Jul-07 @ $0.10 per share                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   | 550,000   |   |   |   | 688    |   |   |   | 54,312    |   |   |   |     |   |   |   |       |   |   |   | 55,000   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Preferred      Shares issued for Officer                                                                                                                                                                                |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    compensation      on 3-Jul-07 @ $0.10                                                                                                                                                                 |   |   | 300,000 |   |   |   | 300    |   |   |   |      |   |   |   |   |   |   |   | 29,700    |   |   |   |     |   |   |   |       |   |   |   | 30,000   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      10-Jul-07 @ $0.03 per share                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   | 500,000   |   |   |   | 625    |   |   |   | 14,375    |   |   |   |     |   |   |   |       |   |   |   | 15,000   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      24-Jul-07 @ $0.167 per share                                                                                                                                                                  |   |   |    |   |   |   |   |   |   |   | 360,000   |   |   |   | 450    |   |   |   | 59,550    |   |   |   |     |   |   |   |       |   |   |   | 60,000   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued to Retire Debt                                                                                                                                                                                |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      24-Jul-07 @ $0.199 per share                                                                                                                                                                  |   |   |    |   |   |   |   |   |   |   | 892,387   |   |   |   | 1,115  |   |   |   | 177,362   |   |   |   |     |   |   |   |       |   |   |   | 178,477  |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|  Net      (Loss)                                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   | (469,582   | )      |   |   | (469,582 | )      |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2007                                                                                                                                                                                         |   |   | 550,000 |   |   |   | 550    |   |   |   | 8,665,247 |   |   |   | 10,831 |   |   |   | 2,478,156 |   |   |   | (76,226  | )      |   |   | (2,120,633 | )      |   |   | 292,678  |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|  Net      (Loss)                                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   | (192,926   | )      |   |   | (192,926 | )      |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Balance,      June 30, 2008                                                                                                                                                                                             |   |   | 550,000 |   |   | $      | 550    |   |   |   | 8,665,247 |   |   | $      | 10,831 |   |   | $      | 2,478,156 |   |   | $      | (76,226  | )      |   | $      | (2,313,559 | )      |   | $      | 99,752   |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| The      Company was inactive from 1995 to 1997 and again from 1999 through 2004,      the company has summarized the accumulated deficit for those periods in      these statements.                                   |
|                                                                                                                                                                                                |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| On      April 16, 1997 the company executed an 8:1 forward stock split and on      December 8, 2006 the company executed a 10:1 reverse stock split that      have been retroactively applied to the above    schedule. |
|                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| The      accompanying notes are an integral part of these  statements                                                                                                                                                   |

----

| AmerElite      Solutions, Inc.                                        |
|-----------------------------------------------------------------------|
| (A      Development Stage Company)                                    |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Statements      of Cash Flows                                         |
| (Unaudited)                                                           |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   | July      26, 1994 |   |
|                                                                  |   | Six      Months Ended |   |   | Three      Months Ended |   |   | (Inception) |   |
|                                                                  |   | June      30, |   |   | June      30, |   |   | to      June 30, |   |
|                                                                  |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |
| Operating      Activities                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                         |   | $ | (192,926 | ) |   | $ | (288,095 | ) |   | $ | (92,742 | ) |   | $ | (165,200 | ) |   | $ | (2,313,559 | ) |
| Adjustments      to reconcile Net Loss:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stock      Issued for Service                       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,511,060 |   |
|    Depreciation      and Amortization                  |   |   | 2,667 |   |   |   | 2,666 |   |   |   | 2,667 |   |   |   | 1,333 |   |   |   | 9,332 |   |
| Changes      in Operating Assets and Liabilities                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    (Increase)/Decrease      in Accounts Receivable     |   |   | 444 |   |   |   | (1,886 | ) |   |   | 444 |   |   |   | (1,633 | ) |   |   | (331 | ) |
|    (Increase)/Decrease      in Interest Receivable     |   |   | - |   |   |   | 27,436 |   |   |   | - |   |   |   | 739 |   |   |   | - |   |
|    (Increase)/Decrease      in Inventory               |   |   | 108 |   |   |   | (3,823 | ) |   |   | 108 |   |   |   | 569 |   |   |   | (22,033 | ) |
|    (Increase)/Decrease      in Deposits                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,373 |   |   |   | (1,135 | ) |
|    Increase/(Decrease)      in Accounts Payable        |   |   | 183,702 |   |   |   | (9,598 | ) |   |   | 183,702 |   |   |   | 35,111 |   |   |   | 276,534 |   |
|    Increase/(Decrease)      in Accrued Liabilities     |   |   | - |   |   |   | 35,874 |   |   |   | - |   |   |   | 80,250 |   |   |   | 70,000 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash (Used) by Operating Activities                          |   |   | (6,005 | ) |   |   | (237,426 | ) |   |   | 94,179 |   |   |   | (45,458 | ) |   |   | (470,132 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      Activities                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      in Trademarks and Trade Names                         |   |   | - |   |   |   | (2,100 | ) |   |   | - |   |   |   | (900 | ) |   |   | (13,054 | ) |
| Purchase      of Equipment                                            |   |   | - |   |   |   | (440 | ) |   |   | - |   |   |   | 1 |   |   |   | (20,441 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash (Used) by Investment Activities                         |   |   | - |   |   |   | (2,540 | ) |   |   | - |   |   |   | (899 | ) |   |   | (33,495 | ) |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing      Activities                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from Loans                                              |   |   | - |   |   |   | 63,233 |   |   |   | - |   |   |   | 24,110 |   |   |   | 349,709 |   |
| (Repayments)      of Loans                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (168,732 | ) |
| Proceeds      from the Sale of Stock                                  |   |   | - |   |   |   | 128,000 |   |   |   | - |   |   |   | - |   |   |   | 323,773 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Cash Provided by Financing Activities                        |   |   | - |   |   |   | 191,233 |   |   |   | - |   |   |   | 24,110 |   |   |   | 504,750 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Increase / (Decrease) in Cash                                |   |   | (6,005 | ) |   |   | (48,733 | ) |   |   | 94,179 |   |   |   | (22,247 | ) |   |   | 1,123 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash,      Beginning of Period                                        |   |   | 7,128 |   |   |   | 53,092 |   |   |   | 7,128 |   |   |   | 26,606 |   |   |   | - |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash,      End of Period                                              |   | $ | 1,123 |   |   | $ | 4,359 |   |   | $ | 101,307 |   |   | $ | 4,359 |   |   | $ | 1,123 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      Information:                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Paid                                                    |   | $ | - |   |   | $ | 5,352 |   |   | $ | - |   |   | $ | - |   |   | $ | 13,217 |   |
| Income      Taxes Paid                                                |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Significant      Non-Cash Transactions:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock      Issued for Services                                        |   | $ | - |   |   | $ | 128,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,511,060 |   |
| Stock      Issued to Convert Debt                                     |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 178,477 |   |
| Stock      Issued to Acquire Assets                                   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 400,000 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these  statements |

----

|                |   | 2008   |   |   | 2007   |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| Raw      Material   |   | $      | 14,096 |   |   | $      | 14,096 |   |
| Finished      Goods |   |   | 7,383  |   |   |   | 7,524 |   |
| Packaging           |   |   | 554    |   |   |   | 521 |   |
|                |   |   |   |   |   |   |   |   |
| Total               |   | $      | 22,033 |   |   | $      | 22,141 |   |

----

|  · |  Office      furniture and equipment |  5      years |
|--------------|-------------------------------------------|--------------------|
|  · |  Computer      hardware and software |  3      years |

|                                |   | 2008   |   |   | 2007   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|
| Office      Furniture and Equipment |   | $      | 10,000 |   |   | $      | 10,000 |   |
| Computer      Hardware and Software |   |   | 10,441 |   |   |   | 10,441 |   |
|                                |   |   |   |   |   |   |   |   |
| Subtotal                            |   |   | 20,441 |   |   |   | 20,441 |   |
| Less:                               |   |   |   |   |   |   |   |   |
| Accumulated      Depreciation       |   |   | (9,333 | )      |   |   | (6,666 | ) |
|                                |   |   |   |   |   |   |   |   |
| Total      Furniture and Equipment  |   | $      | 11,108 |   |   | $      | 13,775 |   |

----

----

|                                   |   | 2008   |   |   | 2007   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| Demand      Note, non-interest bearing |   |   | 2,500  |   |   |   | 2,500 |   |
|                                   |   |   |   |   |   |   |   |   |
| Total      Notes Payable               |   | $      | 2,500  |   |   | $      | 2,500 |   |

| December    31,                           |   | 2007   |     |   | 2006   |   |
|-------------------------------------------|--------|--------|----------|--------|--------|--------|
| Deferred Tax      Asset    |   | $      | 164,354  |   |   | $      | 324,135 |   |
| Less: Valuation      Allowance            |   |   | (164,354 | )      |   |   | (324,135 | ) |
| Net Current Deferred      Tax Asset       |   | $      | 0        |   |   | $      | 0 |   |

| Year      |   | Amount |      | Expiration  |
|-----------|--------|--------|-----------|------------------|
| 1994      |   | $      | 49,500    |             | 2014 |
| 2004      |   |   | 181,369   |             | 2024 |
| 2005      |   |   | 483,422   |             | 2025 |
| 2006      |   |   | 926,100   |             | 2026 |
| 2007      |   |   | 469,583   |             | 2027 |
| Total NOL |   | $      | 2,109,974 |             |   |

----

|   | · | On      February 20, 2007 the Company issued 250,000 Class A preferred shares at a      value of $0.30 per share to an officer for  compensation. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 3, 2007 the Company issued 300,000 Class A preferred shares at a      value of $0.10 per share to an officer for  compensation. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      January 27, 2006 the Company issued 205,000 common shares at $0.683 per      share for services valued at $140,000 and 327,500 common shares at $0.60      per share for employee compensation valued at  $196,500. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      May 8, 2006 the Company issued 20,360 common shares at $0.828 per share      for services valued at $16,860. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 14, 2006 the Company issued 410,000 common shares at $0.312 per share      for services valued at $128,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 17, 2006 the Company issued 500,000 common shares at $0.50 per share      for services valued at $250,000. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | On      November 8, 2006 the Company issued 30,000 common shares at $0.50 per      share for services valued at$15,000. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | On      January 24, 2007 the Company issued 160,000 post-split common shares at      $0.33 per share for services valued at$53,000 |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 3, 2007 the Company issued 900,000 common shares at $0.10 per share      for employee compensation valued at $90,000 and 550,000 common shares at      $0.10 per share for services valued at$55,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 10, 2007 the Company issued 500,000 common shares at $0.03 per share      for services valued at $15,000. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 24, 2007 the Company issued 360,000 common shares at $0.167 per share      for services valued at $60,000 and 892,387 common shares at $0.199 per      share to retire debt in the amount of$178,477. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | · | Absorption |
|--------|--------|------------|

|   | · | Fragrance |
|--------|--------|-----------|

|   | · | Texture |
|--------|--------|---------|

|   | · | Color |
|--------|--------|-------|

----

----

----

| Exhibit      No. | Description |
|------------------|-------------|

| 31 | Certification of Principal Executive Officer and      Principal Financial Officer |
|----|-----------------------------------------------------------------------------------|

| 32 | Certification Pursuant to 18 U.S.C. 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of    2002 |
|----|------------------------------------------------------------------------------------------------------------------------|

|                       | AMERELITE SOLUTIONS,      INC. |                             |
|----------------------------|--------------------------------|----------------------------------|
|                       |                           |                             |   |
| Date:      August 19, 2008 | By:                            | /s/       Robert L. Knapp   |   |
|                       |                           | Principal      Executive Officer |   |
|                       |                           | Principal      Financial Officer |   |
|                       |                           |                             |   |

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