United States Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-K



[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009
OR ̈TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM  TO



COMMISSION FILE NUMBER 0-14278

GOLDEN SPIRIT ENTERPRISES LTD.



|                         |            
|------------------------ | -----------
|                         |            
|DELAWARE                 | 52-2132622 
|(STATE OF INCORPORATION) | (I.R.S. ID)

1802 GOYA ST. JONQUIERE, QUEBEC, G72 1C3

(514) 688-3289

Securities registered pursuant to Section 12(b) of the Act:

COMMON STOCK    OTC: BB

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, Par Value $.0001

(Title of Class)



Securities registered pursuant to Section 12(b) of the Act:  None



Securities registered pursuant to Section 12(g) of the Act:  Common stock, $.0001 par value per share



Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YesoNox



Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. oYesxNo



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    oYesxNo



Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). oYesoNo



Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a smaller reporting company.

Large accelerated filer  ̈



Accelerated filer    ̈

Non-accelerated filer    ̈   (Do not check if a smaller reporting company)                Smaller reporting company  x



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).oYes    x  No



As of March 31, 2010, there were 23,957,024 shares of the issuer's $0.0001 par value common stock issued and outstanding.



Documents incorporated by reference:  None

-1-



Golden Spirit Enterprises Ltd.FORM 10-K

For The Fiscal Year Ended December 31, 2009

INDEX

PART I

3



















ITEM 1.    BUSINESS

3

ITEM 1A.  RISK FACTORS

8

ITEM 1B.  UNRESOLVED STAFF COMMENTS

8

ITEM 2.    PROPERTIES

9

ITEM 3.    LEGAL PROCEEDINGS

10

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

10

PART II

10



ITEM 5.    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF

EQUITY SECURITIES

10

ITEM 6.    SELECTED FINANCIAL DATA

13

ITEM 7.    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

14

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

16

ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

16

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS  ON ACCOUNTING AND FINANCIAL DISCLOSURE

41

ITEM 9A.  CONTROLS AND PROCEDURES EVALUATION OF  DISCLOSURE CONTROLS AND PROCEDURES

42

ITEM 9B.  OTHER INFORMATION

43

PART III



44

ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

44

ITEM 11.    EXECUTIVE COMPENSATION

45

ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER

MATTERS

45

ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND  DIRECTOR INDEPENDENCE

46

ITEM 14.    PRINCIPAL ACCOUNTING FEES AND SERVICES

47

PART IV



47

ITEM 15.    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

48

SIGNATURES

49





-2-



Note About Forward-Looking Statements



Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words believe, project, expect, anticipate, estimate, intend, strategy, future, opportunity, plan, may, should, will, would, will be, will continue, will likely result, and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled Risk Factors (refer to Part I, Item 1A). We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

PART I

ITEM 1.    BUSINESS

GENERAL



Golden Spirit Enterprises Ltd., formerly Golden Spirit Gaming Ltd., formerly Golden Spirit Mining Ltd., formerly Golden Spirit Minerals Ltd., formerly 2UOnline.com, Inc., formerly Power Direct, Inc., was incorporated in the State of Delaware on September 13, 1993, and we maintain our principal executive offices at 1288 Alberni Street, Suite 806, Vancouver, British Columbia, Canada V6E 4N5. Our offices in the United States are located at 177 Telegraph Road, Suite 541, Bellingham, Washington 98226.



We changed our name from Power Direct, Inc., to 2UOnline.com, Inc. by filing a Certificate of Amendment to our Certificate of Incorporation on January 31, 2000. We also changed our trading symbol from "PWDR" to "TWOU" in order to reflect our decision to shift our focus from oil and gas production to Internet- related activities. Our symbol was then changed to "TWOUE".  On or about April 18, 2000, we were removed from the Over-the-Counter Bulletin Board ("OTCBB") for failure to comply with NASD Rule 6530, which requires any company listed on the OTCBB to be current in its public reporting obligations pursuant to the Securities and Exchange Act of 1934. The Company was re-instated on the OTCBB on October 7, 2002 under the symbol "TWOU". The Company filed a certificate of amendment to its Articles of Incorporation with the State of Delaware on October 1, 2003 to change its name to Golden Spirit Minerals Ltd. The name change reflects management's decision to shift the Company's focus from internet-based business development to mineral exploration. On October 8, 2003, the trading symbol for the Company became "GSPM". On October 19, 2004, the Company changed its name to Golden Spirit Mining Ltd. and the trading symbol was "GSML". On July 18, 2005 the Company changed its name to Golden Spirit Gaming Ltd. and the trading symbol was GSGL. On June 30, 2006, the Company changed its name to Golden Spirit Enterprises Ltd. and the trading symbol is currently GSPT.



On August 17, 2005, the Company incorporated Golden Spirit Poker Company Limited, a British Virgin Islands Corporation.  Golden Spirit Gaming Ltd. was issued 10 shares of this Company for consideration of $10.00, representing 100% of the issued capital of Golden Spirit Poker Company Limited.



We were originally incorporated to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware. We were inactive from September 13, 1993, through November 1998, when we began the process of identifying potential business interests, including, but not necessarily limited to, interests in oil and natural gas producing properties. The Company will be involved in the development, production, financing and packaging of innovative film and television programming. In addition, the Company has signed an agreement with Eneco Industries to participate in a series of Municipal Solid Waste (garbage) fueled Recycling and Resource Recovery Plants.

-3-



OUR BUSINESS

Our initial focus was on the development of oil and natural gas properties. In this regard, we purchased interests in two properties; one in the United States and one in Canada. In or around December 1999, we decided to review the focus of our business, primarily the direction we would take with our various oil and gas projects. We decided that maintaining interests in oil and gas producing properties should no longer be our focus. Due to the growth of the Internet, we decided to pursue Internet-related activities. We determined that Internet-related activities would provide a positive revenue stream sooner than oil and gas producing activities. Due to the lack of success with our internet activities we decided to abandon this business and commencing in 2003 instead pursue opportunities in mineral exploration and development.



We had limited success with both our internet activities and our mineral exploration and development activities. In mid 2005, management of the Company decided to focus on online gaming. On September 30, 2006, Congress passed the Unlawful Internet Gambling Enforcement Act of 2006.  The new proposed legislation prohibits banks, credit card companies, money transmitting businesses, and other third-party payment providers from knowingly processing online gaming transactions. Due to this ruling and the negative impact it would have on the Golden Spirit poker website, management decided to discontinue its online gaming operations in 2006.



On June 30, 2006, the Company changed its name and focus from gaming to reflect the Companys plan to expand its operations to include the marketing of other products and venues. The Company will be involved in the development, production, financing and packaging of innovative film and television programming.

The Company remains involved in the development, production, financing and packaging of innovative film and television programming. In addition, the Company has signed an agreement with EnEco Industries to participate in a series of Municipal Solid Waste (garbage) fueled Recycling and Resource Recovery Plants. The Agreement calls for a joint venture utilizing EnEco's expertise and technology to develop a municipal solid waste (garbage) recycling and biomass derived renewable energy facility. Golden Spirit and EnEco will build and operate a series of solid waste recycling and biomass derived renewable energy facility with greenhouse and algae subsystems that will utilize our Thermal Oxidation Process System (TOPS) technology to generate electricity for sale to the local power grid. Further details on the new Golden Spirit - EnEco project can be viewed on our website www.goldenspirit.ws.



-4-



Our Investment in Available for sale securities  related parties



Organa Gardens International Inc. (formerly Shotgun Energy Corporation)



Organa

The Company owns common shares of Organa Gardens International Inc. (formerly Shotgun Energy Corporation) (Organa), a public company with directors and significant shareholders in common that does not represent a position of control of or significant influence over Organa.  During 2007 the Company recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $3,775, which was recorded as other comprehensive income (loss).  During the year ended December 31, 2008, the Company recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $5,612 which was recorded as other comprehensive income (loss). During the year ended December 31, 2009, the Company sold 50,000 shares resulting in a realized loss of $(780) and recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $5,138, which was recorded as other comprehensive income. As at December 31, 2009, the Company owns 3,450 shares of Organas common stock with a market value of $41 (December 31, 2008 - $1,604).



Legacy

The Company owns common shares of Legacy Wine & Spirits International Ltd. (Legacy), a public company with directors and significant shareholders in common, that does not represent a position of control of or significant influence over Legacy.  During 2007 the Company recorded an unrealized gain in the carrying value of its available-for-sale securities totaling $590,993. During the year ended December 31, 2008, the Company acquired 23,200 shares valued at $19,532 sold 99,400 shares resulting in a realized gain of $28,645(net of commissions of $2,132) and recorded an unrealized gain in the carrying value of its available-for-sale securities totaling $275,121, which was recorded as other comprehensive income. During the year ended December 31, 2009, the Company sold 301,600 shares resulting in a realized gain of $8,503 and recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $780,606, which was recorded as other comprehensive loss. As at December 31, 2009, the Company owns 894,577 shares of Legacys common stock with a market value of $53,675. (December 31, 2008 - $980,864).



Available for sale securities  related parties include the following:



|                                                              |                |                 
|------------------------------------------------------------- | -------------- | ----------------
|                                                              | December 31,   | December 31,    
|                                                              | 2009           | 2008            
|894,577  (2008-1,196,177) shares of Legacy Wine & Spirits     | $53,675        | $        980,864
|3,450  (2008- 53,450) shares of  Organa Gardens International | 41             | 1,604           
|                                                              | $       53,716 | $        982,648



-5-

FILM PRODUCTION & DEVELOPMENT SECTOR



Film Production and development costs at December 31, 2009 are made up as follows:



|                               |  |                  |                          |                                                 |                              |                             
|------------------------------ |  | ---------------- | ------------------------ | ----------------------------------------------- | ---------------------------- | ----------------------------
|                               |  | Gross Cost       | Accumulated amortization | 2008 writedown of film rights and related costs | Net Cost
  December 31, 2009 | Net Cost
  December 31, 2008
|                               |  |                  |                          |                                                 |                              |                             
|Acquired films and film rights |  | $         84,970 | $                     -  | (84,969)                                        | $                  1         | $                  1        
|Films in progress              |  | 5,793            | -                        | (5,793)                                         | -                            | -                           
|                               |  |                  |                          |                                                 |                              |                             
|                               |  | $         90,763 | $                     -  | $ (90,762)                                      | $                  1         | $                 1         





Acquired Films and Film Rights



The Company has acquired from Beijing Dadu Sunshine Film & Culture Co. Ltd., the exclusive distribution rights worldwide, except for Asia, for the film Tales of Rain and Magic.  Under the terms of the License Agreement dated March 23, 2007, the Company will receive twenty-five (25) percent interest of the gross receipts earned from sales in those countries. Tales of Rain and Magic portrays a young girls coming of age, and of the psycho-logical and physiological changes that she encounters along the way to adulthood. As of December 31, 2009, due to uncertainty of realization, the Company has written down this project to a value of $Nil. (2008 - $Nil)

The Company has signed an Agreement dated March 15, 2007 with Amazing Super Buddies Productions Inc. to act as the Producer and Distributor for a 3D Television Series for children known as ASB: Power Force. In
return for advancing $54,000 U.S. to produce the series, the Company will receive a guaranteed fifteen (15) percent interest of gross receipts earned worldwide, inclusive of all character licensing and merchandise sold from the ASB: Power Force Series. As of December 31, 2009, due to uncertainty of realization, the Company has written down this project to a nominal value of $1 (2008 - $1).



Films in progress



The Company has signed an Agreement dated February 15, 2007  to represent The Cabin, a teen-oriented, horror/thriller feature film . As distributor of the film, Golden Spirit will receive a fee of twenty-five percent (25%) from the gross amounts of all sales or distribution deals made internationally and twenty percent (20%) from the gross amounts of all sales or distribution deals made in the United States. As of December 30, 2009, due to uncertainty of realization, the Company has written down this project to a value of $Nil. (2008 - $Nil)

The Company has signed an Agreement dated March 15, 2007 to represent The Brotherhood of the Phoenix, a high concept action drama feature film. As distributor of the film, Golden Spirit will receive a fee of twenty-five percent (25%) from the gross amounts of all sales or distribution deals made internationally and twenty percent (20%) from the gross amounts of all sales or distribution deals made in the United States. As of December 31, 2009, due to uncertainty of realization, the Company has written down this project to a value of $Nil. (2008 - $Nil)

The Company has signed a Memorandum of Understanding dated March 23, 2007 with Pentafilms, SARL of France and Beijing Dadu Sunshine Film & Culture Co. Ltd. to co-produce and distribute a film called The Mists of Time. The financial contribution for production by each party, the final percentage of distribution rights, final casting and budget will be determined in the final agreement. As of December 31, 2009, the Company has spent $ Nil on this project.(2008 - $Nil)



-6-

SUMMARY:

The $84,970 for acquired film rights consists of the following:

Cash payment for rights to Amazing Super Buddies (ASB)



$ 54,000

Cash payment for rights to Tales of Rain and Magic (TRM)

25,000

35 mm film reels and gala screening costs for TRM



3,535

Compact Discs and costs for trailer for ASB                                                  2,435

Total                                                                                                            $84,970



The $5,793 for films in progress consists of the following:

Cash payment for rights to The Cabin

$     1,000

Cash payment for rights to Brotherhood of the Phoenix

1,000

Filming of trailers for The Cabin and Brotherhood of the Phoenix                 3,793

Total

$      5,793



The Company reviews the impairment issue at each quarter on its completed films and films in progress. The Company has letters of intent on hand with distribution partners for its films. The Company expected those assets to generate revenue in the fourth quarter of 2008. The Company received no firm commitments to distribute its films as of December 31, 2008, therefore, due to uncertainty of realization, the Company has written down the above projects to a nominal value of $1.





WASTE ENERGY SECTOR

The Thermal Oxidation Process System (TOPS) Greencycle Gasification plants decompose organic matter (with heat and air) and recover non-organics by utilizing specialized equipment and is a proven alternative to landfills. Greencycle uses low heat (500-600 Celsius) to convert all the carbon locked up in unsorted garbage into a form where it produces high quality heat through a second stage gas oxidizer running at around 1,100 Celsius. This process creates energy, enough to make electrical energy and support district heating / greenhouses. The Greencycle system provides controlled conditions to utilize Carbon Dioxide (CO2) for accelerated plant growth in greenhouses and algae farms.  The other non-carbon materials in garbage, such as aluminum, tin, copper and stainless steel, and can be easily separated after all the carbon has been removed without melting or slagging. Micron sized metals, silica, calcium etc, are also sorted out for re-use by using the Ash Recycling and Recovery Equipment (ARRE) sub-system.

As of December 31, 2009, the Company has not secured any facilities to construct the Gasification Plant, nor has it incurred any other expenditures for the year ended December 31, 2009. (2008 - $Nil)

Ownership Interests.



The following chart specifies our stock ownership at December 31, 2009

-----------------------------------------------------------------------------------------------------------------------------

Percent

Entity



Nature of Ownership

Ownership

-----------------------------------------------------------------------------------------------------------------------------

3.9%

Legacy Wine & Spirits Internatiional Ltd.

894,577  Shares of Common Stock



0.1%

Organa Gardens Internationanl Inc.                             3,450  Shares of Common Stock

-----------------------------------------------------------------------------------------------------------------------------



-7-



Employees.



We currently have 3 full-time employees. None of our employees are subject to any collective bargaining agreements.



Change in Directors



None. The current Directors are Christopher Scheive (President & CEO) and Jaclyn Cruz.(Secretary, Treasurer, & CFO)



The Company also announced that it has moved its Administrative Office to: 1802 Goya St. Jonquiere, Quebec, G7Z 1C3.  Fax - 1 888 265 0498: Phone  514- 688 3289.



Entering into a new agreement



On October 29, 2009, the Company signed an agreement to acquire 32 BLM gold mineral lease claims in the newly discovered Long Canyon Trend of east central Nevada. The Company will acquire a 75% undivided interest in these 32 claims. The vendor will maintain a 25% interest in the claims until the Company has spent a minimum of $150,000 in exploration costs within 24 months from the date of this Agreement on the properties. The Company agreed to spend up to $25,000 for a geological report before December 15,2009 and an additional $50,000 during the months of March through July 2010. The balance of $75,000 can be spent over the following 15 months at the Companys discretion to earn the full 100% interest. The Company is required to pay $10,000 cash ($3,076 paid) and issue up to 5,000,000 restricted common shares to acquire the interest (shares not issued). Subsequent to December 31, 2009, management decided not to proceed with this acquisition and signed a dissolution agreement in March, 2010. The $3,076 advanced was refunded to the Company.



ITEM 1A.    RISK FACTORS



Not applicable to smaller reporting companies



ITEM 1B.    UNRESOLVED STAFF COMMENTS



None



ITEM 2.    PROPERTIES



Property Held by Us.  As of the dates specified in the following table, we held the following property in the following amounts:



Property

December 31, 2009

December 31, 2008

-----------------------------------------------------------------------------------------------

Cash



US $ 1,223



US $1,556

=========================================================



We do not presently own any interests in real estate. We do not presently own any inventory or equipment.



-8-



Our Facilities.



We do not own any real property. Golden Spirit Enterprises Ltd. has leased 1250 sq. ft of office space from Holm Investments Ltd. at $2,050 per month for a period of 3 years and has been renewed for an additional 3 years at $2,050 per month. The current tenancy agreement began August 1, 2008 for a period of three years at $2,200 per month. Golden Spirit Enterprises Ltd.s principal corporate offices are located at 1802 Goya Street, Jonquiere, Quebec, G7Z 1C3.

ITEM 3.    LEGAL PROCEEDINGS



On May 2, 2003, the Company issued 25,000 post reverse-split common shares valued at $9,000 to a consultant pursuant to a stock option incentive plan.  The consultant failed to meet the terms of the stock option agreement by not paying the exercise price and as a result, the Company requested the return of the 25,000 post reverse-split shares.  The consultant refused to return the shares; therefore, the Company issued a stop transfer and commenced legal proceedings to recover the shares.  The consultant subsequently filed a Statement of Claim against the Company for damages of $53,000 Cdn.  On April 29, 2005, the Supreme Court of British Columbia issued a judgment awarding the plaintiff $15,000 Cdn in damages and $7,180 Cdn in costs; however, the 25,000 post reverse-split shares were to be returned to the Company (not yet received).In September 2005, the Company and the plaintiff agreed to payment terms to settle this damage award by a payment of $6,080 Cdn (paid) and a payment schedule of $1,000 Cdn per month for the remaining balance of the judgment commencing December 1, 2005.  The $6,080 Cdn payment was made as the result of a bailiffs executed court order on September 28, 2005, which seized the Companys bank account.  No further payments have been made towards the settlement agreement due to the Plaintiffs refusal to sign the order. However, in the fourth quarter of 2009, the Supreme Court of British Columbia ruled in favor of the plaintiff despite the plaintiffs failure to return the shares to the Company. In addition to the $6,080 Cdn. payment previously made and an amount of $14,810 US accrued towards a final resolution of the matter, the Company was ordered to pay an additional $52,169 US in damages and the case is now closed.



On September 28, 2005, the Company received notice of a lawsuit from Thomas L. Franklin, a professional poker player formerly under contract with 4KE, for an alleged breach of contract for services rendered based on the original contract between the Company and 4KE dated July 18, 2005.  The Company, 4KE, and certain individuals, are being sued for $967,500, plus interest at the rate of 8% per annum from August 22, 2005, and all costs pertaining to this legal matter.  An attorney in Mississippi has been retained to defend this action and to apply for a dismissal of the case, based on Mississippi being the wrong jurisdiction for this suit and to defend the Company from the claims made by the plaintiff.  The court case was dismissed in favour of the Company in the second quarter of 2008.



-9-

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



None



PART II



ITEM 5.    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES



As at December 31, 2009 there were approximately 2,000 holders of the outstanding shares of the Golden Spirit Enterprises Ltd.'s $0.0001 par value common stock.  Golden Spirit Enterprises Ltd. participates in the OTC Bulletin Board Electronic Quotation System maintained by the National Association of Securities Dealers, Inc. On or about April 18, 2000, we were removed from the Over-the-Counter Bulletin Board ("OTCBB") for failure to comply with NASD Rule 6530, which requires any company listed on the OTCBB to be current in its public reporting obligations pursuant to the Securities and Exchange Act of 1934. The Company was re-instated on the OTCBB on October 7, 2002 under the symbol "TWOU". Commensurate with the name change and forward stock split, the Company also took the necessary steps to change its symbol and CUSIP Number. Therefore, the Registrant's CUSIP Number has changed from 9021014 20 7 to 3811194 10 9.  On October 8, 2003, being 6:30 A.M. EST, the Registrant's symbol changed from TWOU to "GSPM". On October 19, 2004, being 6:30 A.M. EST, the Registrant's symbol changed from GSPM to "GSML".



Effective at the opening on July 18th, 2005 the Companys symbol changed from GSML to GSGL and the CUSIP Number became 38119U 10 1.



Effective at the opening on June 30th, 2006, the Companys symbol changed from GSGL to GSPT and the CUSIP Number is now 38119N 10 7.



According to quotes provided by quotemedia.com, the Golden Spirit Enterprises Ltd.s common stock closed at:



Quarter



High



Low

2007 First Quarter



$0.18



$0.11

2007 Second Quarter



$0.10



$0.31

2007 Third Quarter



$0.10



$0.33

2007 Fourth Quarter



$0.20



$0.33

2008 First Quarter

$0.27

$0.10

2008 Second Quarter

$0.25

$0.14

2008 Third Quarter

$0.14

$0.04

2008 Fourth Quarter

$0.10

$0.02

2009 First Quarter

$0.10

$0.02

2009 Second Quarter

$0.09

$0.02

2009 Third Quarter

$0.09

$0.02

2009 Fourth Quarter

$0.09

$0.02



-10-





The Company traded as 2UOnline.com from January 1, 2003 to October 8, 2003, as Golden Spirit Minerals Ltd. from October 9, 2003 to October 18, 2004, as Golden Spirit Mining Ltd. from October 19, 2004 to July 17, 2005 and Golden Spirit Gaming Ltd. from July 18, 2005 to date. Such quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.



The public may read and copy any materials filed with the SEC at the SEC's Public Reference Room at 450 Fifth Street NW, Washington, D.C. 20549. The public may also obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of that site is http://www.sec.gov.



Common Stock:



The Company is authorized to issue 500,000,000 shares of common stock, $.0001 par value, each share of common stock having equal rights and preferences, including voting privileges.  The shares of $.0001 par value common stock of the Company constitute equity interests in the Company entitling each shareholder to a pro rata share of cash distributions made to shareholders, including dividend payments.  The holders of the Company's common stock are entitled to one vote for each share of record on all matters to be voted on by shareholders.  There is no cumulative voting with respect to the election of directors of the Company or any other matter, with the result that the holders of more than 50% of the shares voted for the election of those directors can elect all of the Directors. The holders of the Company's common stock are entitled to receive dividends when, as and if declared by the Company's Board of Directors from funds legally available therefore; provided, however, that the cash dividends are at the sole discretion of the Company's Board of Directors. In the event of liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share ratably in all assets remaining available for distribution to them after payment of liabilities of the Company and after provision has been made for each class of stock, if any, having preference in relation to the Company's common stock.  Holders of the shares of Company's common stock have no conversion, preemptive or other subscription rights, and there are no redemption provisions applicable to the Company's common stock.  All of the outstanding shares of the Company's common stock are duly authorized, validly issued, fully paid and non-assessable. As of December 31, 2009, 23,442,024 shares of Golden Spirit Enterprises Ltd. common stock were issued and outstanding.



Legacy Mining Ltd. Stock Transfer.



On August 16, 1999, we issued to each of our shareholders entitled to receive dividends, one (1) share of Legacy Mining Ltd.s common stock for every eight (8) shares of our common stock held by the shareholder.  We issued a total of 2,199,779 shares of Legacy Mining Ltd.s common stock to our shareholders. These shares were subsequently reverse split on a 2:1 basis. The shares of Legacy Mining Ltd. began trading on the OTC:BB on October 30, 2007 under the symbol LEYM. On April 8, 2008, a Certificate of Amendment to its Articles of Incorporation was filed with the State of Nevada changing the name to Legacy Wine & Spirits International Ltd. Effective at the opening of business on May 27, 2008, the symbol changed from LEYM to LWSP.



(1)          2009 Stock Transactions



During the year ended December 31, 2009:



During the year ended December 31, 2009, 3,900,000 incentive stock options were granted and immediately  exercised at prices between $0.02 -$0.06 per share to satisfy debts  related parties in the amount of $ 109,250. Accordingly, no compensation expense was recorded.



On November 30, 2009, the Company issued 700,000 restricted common shares valued at $49,000 to consultants pursuant to three deferred compensation agreements dated November 18, 2009.





-11-







(2)

2008 Stock Transactions



During the year ended December 31, 2008:



On February 27, 2008 the Company issued 30,000 restricted common shares valued at $3,300 to a director for his current services

On June 18, 2008 the Company issued 25,000 restricted common shares valued at $3,500 to a consultant for his current services

820,730 incentive stock options were exercised at $0.10 per share for proceeds of $82,073.

On September 16, 2008 the Company issued 25,000 restricted common shares valued at $1,000 to a director for her current services

(3)

2009 Stock Options

During the year ended December 31, 2009, the Company granted 3,900,000 stock options to related party consultants and these options were immediately exercised at prices between $0.02 - $0.04 per share to satisfy debts to these related parties in the amount of $109,250.



The Companys stock option activity is as follows:

Number of optionsWeighted Average Exercise PriceWeighted Average Remaining Contractual LifeBalance, December 31, 20073,172,517$                   0.183.80 yearsGranted during 2008--Exercised during 2008(845,730)0.10Balance, December 31, 20082,351,7870.202.67 yearsGranted during 2008--Exercised during 2008--Granted during 20093,900,0000.03Exercised during 2009(3,900,000)0.03Balance, December 31, 20092,351,787$                   0.202.67 years






-12-



On June 29, 2009, the Company filed Registration Statements on Form S-8 to register 8,000,000 shares to be issued pursuant to the Companys 2009 Stock Incentive and Option Plan. 3,900,000 of these options were granted to consultants at prices between $0.02 - $0.04 per share during the year and immediately exercised to satisfy debt to related parties in the amount of $109,250.



(4)

2008 - Stock Options

During the year ended December 31, 2008, the Company did not grant any stock options to directors, employees or consultants.



The Companys stock option activity is as follows:



Number of optionsWeighted Average Exercise PriceWeightedAverage Remaining Contractual LifeBalance, December 31, 20061,352,517$                   0.263.08 yearsGranted during 20073,800,0000.10Exercised during 2007(1,980,000)0.10Balance, December 31, 20073,172,517$                  0.183.80 yearsGranted during 2008--Exercised during 2008(845,730)0.10Balance, December 31, 20082,351,787$                    0.202.67 years


ITEM 6.    SELECTED FINANCIAL DATA



FINANCIAL HIGHLIGHTS

Fiscal Year Ended December 3120092008200720062005Revenue$            Nil$            Nil$            43l$            Nil$            NilOperating Loss(181,787)(274,195)(454,400)(2,345,010)(1,950,963)Net Loss(174,064)(245,550)(422,958)(2,954,033)(1,950,963)Basic and diluted net loss per share0.010.010.030.200.06Cash dividends declared per share-----Cash, cash equivalents, & short term investments1,2231,5566,2827,547-Total assets137,8271,015,455740,55652,57399,588Long-term obligations-----Stockholders equity (deficit)(123,592)690,820391,502(329,376)(217,081)






ITEM 7.    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



THIS FOLLOWING INFORMATION SPECIFIES CERTAIN FORWARD-LOOKING STATEMENTS OF MANAGEMENT OF THE COMPANY. FORWARD-LOOKING STATEMENTS ARE STATEMENTS THAT ESTIMATE THE HAPPENING OF FUTURE EVENTS ARE NOT BASED ON HISTORICAL FACT.FORWARD-LOOKING STATEMENTS MAY BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, SUCH AS "MAY", "SHALL", "WILL", "COULD", "EXPECT", "ESTIMATE", "ANTICIPATE", "PREDICT", "PROBABLE", "POSSIBLE", "SHOULD", "CONTINUE", OR SIMILAR TERMS, VARIATIONS OF THOSE TERMS OR THE NEGATIVE OF THOSE TERMS.  THE FORWARD-LOOKING STATEMENTS SPECIFIED IN THE FOLLOWING INFORMATION HAVE BEEN COMPILED BY OUR MANAGEMENT ON THE BASIS OF ASSUMPTIONS MADE BY MANAGEMENT AND CONSIDERED BY MANAGEMENT TO BE REASONABLE. OUR FUTURE OPERATING RESULTS, HOWEVER, ARE IMPOSSIBLE TO PREDICT AND NO REPRESENTATION, GUARANTY, OR WARRANTY IS TO BE INFERRED FROM THOSE FORWARD-LOOKING STATEMENTS.



THE ASSUMPTIONS USED FOR PURPOSES OF THE FORWARD-LOOKING STATEMENTS SPECIFIED IN THE FOLLOWING INFORMATION REPRESENT ESTIMATES OF FUTURE EVENTS AND ARE SUBJECT TO UNCERTAINTY AS TO POSSIBLE CHANGES IN ECONOMIC, LEGISLATIVE, INDUSTRY, AND OTHER CIRCUMSTANCES. AS A RESULT, THE IDENTIFICATION AND INTERPRETATION OF DATA AND OTHER INFORMATION AND THEIR USE IN DEVELOPING AND SELECTING ASSUMPTIONS FROM AND AMONG REASONABLE ALTERNATIVES REQUIRE THE EXERCISE OF JUDGMENT. TO THE EXTENT THAT THE ASSUMED EVENTS DO NOT OCCUR, THE OUTCOME MAY VARY SUBSTANTIALLY FROM ANTICIPATED OR PROJECTED RESULTS, AND, ACCORDINGLY, NO OPINION IS EXPRESSED ON THE ACHIEVABILITY OF THOSE FORWARD-LOOKING STATEMENTS. NO ASSURANCE CAN BE GIVEN THAT ANY OF THE ASSUMPTIONS RELATING TO THE FORWARD-LOOKING STATEMENTS SPECIFIED IN THE FOLLOWING INFORMATION ARE ACCURATE, AND WE ASSUME NO OBLIGATION TO UPDATE ANY SUCH FORWARD-LOOKING STATEMENTS.



Liquidity and Capital Resources.



For the year ended December 31, 2009, we had total assets of $137,827, compared to total assets in 2008 of $1,015,455. This includes a cash balance of $1,223, compared to $1,556 in 2008. We have accounts receivable of  $3,076, available for sale securities with a fair value of $53,716 as at December 31, 2009, Film production & Development Costs of $1, due from legacy Wine & Spirits International Ltd. of 72,668, due from Organa Gardens International Inc.of $7,143 and Furniture and Equipment of $Nil.



At December 31, 2009, we had current liabilities of $261,419, which was represented by accounts payable and accrued liabilities of $33,582 and $227,837 due to related parties. At December 31, 2008 we had current liabilities of $324,635. The decrease in liabilities was essentially due to an decrease in amounts payable to Organa Gardens International Inc.and related parties.  At December 31, 2009, we had a working capital deficiency of $(257,120) (2008 - $(322,980)).



Results of Operations



We realized revenue in 2009 of $Nil (2008- $ Nil) and other income of $7,723 (2008 - $28,645) as the result of a gain on the sale of securities of a related party. In prior years, our revenues from prior businesses totaled $167,449.  During the year ended December 31, 2009 our loss was $174,064 (2008 - $245,550). This decrease in loss was due to a decrease in consulting fees and no write-downs in film production and distribution costs.





-14-





From inception to December 31, 2009, we have incurred cumulative net losses of $16,886,625 resulting primarily from a write-down and equity loss in Organa Gardens International Inc. (a related party) of $1,707,581, a  $600,000 property option loss as a recorded value of certain restricted shares issued to Legacy Wine & Spirits International Ltd. (a related party  see our Investment in Available for sale securities (b) Legacy Wine & Spirits International Ltd. above) and  general and administrative expenses of $15,574,571, the majority of which is made up of consulting fees and stock based compensation expense totaling $7,419,966.



The cash and equivalents constitute our present internal sources of liquidity. Because we are not generating any significant revenues, our only external source of liquidity is the sale of our capital stock and any advances from officers, directors or shareholders.



To address the going concern problem discussed in our financial statements, we will require additional working capital.  We will also require additional funds to implement our business strategies, including funds for:

payment of increased operating expenses, and further implementation of  film industry business strategies.

payment of undetermined expenses relating to the Eneco venture.



No assurance can be given, however, that we will have access to the capital markets in the future, or that financing will be available on acceptable terms to satisfy our cash requirements needed to implement our business strategies. Our inability to access the capital markets or obtain acceptable financing could have a material adverse effect on our results of operations and financial condition and could severely threaten our ability to operate as a going concern. Our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary as a result of a number of factors.





Our Plan of Operation for the Next 12 Months.  We anticipate that we will need to raise additional capital within the next 12 months in order to continue as a going concern.  Anticipated revenues for the first quarter of 2009 are not expected to be significant.   Therefore, additional capital may be raised through additional public or private financings, as well as borrowings and other resources.  To the extent that additional capital is raised through the sale of equity or equity-related securities, the issuance of such securities could result in dilution of our stockholders.  There can be no assurance that additional funding will be available on favorable terms, if at all.  If adequate funds are not available within the next 12 months, we may be required to curtail our operations significantly or to obtain funds through entering into arrangements with collaborative partners or others that may require us to relinquish rights to certain of our assets that we would not otherwise relinquish.



We do anticipate certain expenditures within the next 12 months for our film production and distribution.   We do not anticipate any significant research and development within the next 12 months, nor do we anticipate that we will lease or purchase any significant equipment within the next 12 months. We do not anticipate a significant change in the number of our employees within the next 12 months. We are not aware of any material commitment or condition that may affect our liquidity within the next 12 months.



-15-

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK





Securities held in our equity and other investments portfolio and equity derivatives are subject to price risk, and generally are not hedged.





ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Board of Directors and Stockholders

Golden Spirit Enterprises Ltd.

Quebec, Canada



We have audited the accompanying consolidated balance sheets of Golden Spirit Enterprises Ltd. (a development stage company) as of December 31, 2009 and 2008, and the related consolidated statements of operations, stockholders equity (deficit), and cash flows for each of the years in the two year period ended December 31, 2009 and for the cumulative period from September 13, 1998 (inception) to December 31, 2009.  Golden Spirit Enterprises Ltd.s management is responsible for these statements. Our responsibility is to express an opinion on these financial statements based on our audits.



We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provides a reasonable basis for our opinion.



In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Golden Spirit Enterprises Ltd. as of December 31, 2009 and 2008, and the results of its activities and cash flows for each of the years in the two year period ended December 31, 2009 and for the cumulative period from September 13, 1993 (inception) to December 31, 2009 in conformity with accounting principles generally accepted in the United States of America.



The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Companys current liabilities exceed current assets, has incurred significant losses since inception, all of which raise substantial doubt about the Companys ability to continue as a going concern.  Managements plans in regards to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.





/s/ L.L Bradford & Company, LLC

__________________________

L.L. Bradford & Company, LLC

April 8, 2010

__________________

Las Vegas, Nevada



-16-









GOLDEN SPIRIT ENTERPRISES LTD.

( A development stage company)

CONSOLIDATED BALANCE SHEETS



December 31,December 31,20092008ASSETSCURRENT ASSETSCash$               1,223$                1,556Accounts Receivable3,07699TOTAL CURRENT ASSETS4,2991,655AVAILABLE FOR SALE SECURITIES  related parties53,716982,468FILM PRODUCTION & DEVELOPMENT COSTS11DUE FROM LEGACY WINE & SPIRITS INTERNATIONAL LTD.
        72,668
        31,331DUE FROM ORGANA GARDENS INTERNATIONAL INC.7,143-TOTAL ASSETS$           137,827$        1,015,455LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)CURRENT LIABILITESAccounts payable and accrued liabilities$             33,582$              43,155Due to Organa Gardens International Inc.-32,747Due to related parties227,837248,733TOTAL CURRENT LIABILITIES261,419324,635COMMITMENTS AND CONTINGENCIESSTOCKHOLDERS EQUITY (DEFICIT)Common stock, $0.0001 par value, 500,000,000 shares authorizedIssued and outstanding:23,442,024 (2008  18,842,024) common shares2,3431,883Additional paid-in capital17,481,52717,323,737Deferred compensation(45,209)(26,529)Deficit accumulated during the development stage(17,748,571)(17,574,507)Accumulated other comprehensive income (loss)186,318966,236TOTAL STOCKHOLDERS EQUITY (DEFICIT)(123,592)690,820TOTAL LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)$           137,827$         1,015,455




-17-





GOLDEN SPIRIT ENTERPRISES LTD.

(A development stage company)

CONSOLIDATED STATEMENTS OF OPERATIONS

September 13,1993 (inception)Year EndedYear Endedto December 31,December 31, 2009December 31, 20082009REVENUESProcessing fees$                          -$                          -$            98,425Gaming Revenue--18,596Sale of oil and gas interest--47,501Interest income--2,927TOTAL REVENUES--167,449COST OF SALESPoker royalties and processing fees--30,601GROSS PROFIT (LOSS)--136,848GENERAL AND ADMINISTRATIVE EXPENSESAdvertising and marketing--93,895Consulting fees34,88178,7937,419,966Depreciation and amortization-107132,569Exploration costs--241,754Investor relations1,458-696,611Litigation settlement52,169-52,169Loss on settlement of debt--302,500Management fees--378,447Office and general45,50652,590639,133Poker Sponsorships--52,500Professional fees35,23530,110641,307Travel and accommodation12,53817,533264,362Wages and salaries-4,300249,433Write-off of website development costs--425,682Write-down (recovery) of URL costs--1,571,657Write-down of technology license--2,055,938Write-down of film production and distribution costs-90,76290,762Write-off of other assets--265,886TOTAL GENERAL AND ADMINISTRATIVE EXPENSES181,787274,19515,574,571OTHER INCOME (EXPENSES)EQUITY LOSS FROM ORGANA GARDENS INTERNATIONAL-(1,394,280)WRITE-DOWN OF INVESTMENT IN ORGANA GARDENS-(313,301)GAIN/(LOSS) ON SALE OF SECURITIES-RELATED PARTIES7,72328,64544,614DILUTION GAIN  LEGACY WINE&SPIRITS INTERNATIONAL-334,087PROPERTY OPTION LOSS-(600,000)TOTAL OTHER INCOME (EXPENSES)7,72328,645(1,928,880)Loss before income taxes(174,064)(245,550)(17,366,603)Income Tax Provision---NET LOSS$        (174,064)$       (245,550)$ (17,366,603)NET LOSS ATTRIBUTED TO NONCONTROLLING INTEREST--479,978NET LOSS TO GOLDEN SPIRIT ENTERPRISES LTD.$        (174,064)$       (245,550)$   (16,886,625)BASIC AND DILUTED LOSS PER COMMON SHARE$              (0.01)$             (0.01)BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING19,478,12018,454,109




The accompanying notes are an integral part of these consolidated financial statements





-18-



GOLDEN SPIRIT ENTERPRISES LTD.(A development stage company)CONSOLIDATED STATEMENT OF STOCKHOLDERS DEFICITFOR THE PERIOD FROM SEPTEMBER 13, 1993 (INCEPTION) TO DECEMBER 31, 2009DeficitAccumulatedAccumulatedAdditionalDeferredDuring theOtherCommon StockPaid-inCompensationDevelopmentComprehensiveNumber of SharesAmountCapital(Note 6)StageLossTotalBalance, September 13, 1993 (date of inception)0$  0$        0$    0$        0$    0$        0September 30, 2003  common stock issued for cash at $0.01 per share100,000109900001,000Net loss for the period ended December 31, 19930000(1,000)0(1,000)Balance, December 31, 1993100,000109900(1,000)00Net loss for the years ended December 31, 1994 through 19970000000Net loss for the year ended December 31, 19980000(10,797)0(10,797)Balance, December 31, 1998100,000109900(11,797)0(10,797)January 6, 1999  common stock issued for Rising Phoenixfinders fee at $18.00 per share13,3331239,999000240,000January 6, 1999  common stock issued for cash andmanagement remuneration at $18.00 per share10,0001179,999000180,000January 28, 1999  commons stock issued for services at $21.60 per share10,0001215,999000216,000February 26, 1999  common stock issued for services at $21.60 per share8,3331179,999000180,000April 14, 1999  common stock issued for cash (net of finance feeof $99,500) at $4.80 to $15.00 per share118,79212900,488000900,500Less:  fair value of warrants issued on financing00(764,095)000(764,095)April 14, 1999  warrants issued on financing00764,095000764,095April 23, 1999  stock based compensation00210,706000210,706April 28, 1999  common stock issued for technology licencefinders fee at $18.00 per share6,6671119,999000120,000June 15, 1999  common stock issued for technology license at$18.00 per share50,0005899,995000900,000June 15, 1999  common  stock issued for services at $15.00 per share share33305,0000005,000June 30, 1999  common stock issued for services at $15.60 per share hare4,167065,00000065,000July 15, 1999  warrants issued for URL purchase00328,858000328,858July 20, 1999  common stock issued for cash on exercise ofwarrants at $18.0 per share13,3331239,999000240,000September 1, 1999  warrants issued for URL purchase00220,146000220,146September 1, 1999  common stock issued for cash on exerciseof warrants at $18.00 per share1,667030,00000030,000October 14, 1999  common stock issued for cash on exercise of667010,00000010,000warrants at $15.00 per shareOctober 22, 1999  stock0based compensation0042,96300042,963November 3, 1999  common stock issued for cash on exerciseof warrants at $15.00 per share1,667025,00000025,000November 9, 1999  common stock issued for technologylicense at $ per share50,0005899,995000900,000November 15, 1999  common stock issued for cash on exerciseof warrants at $15.00 per share3,333050,00000050,000November 19, 1999  common stock issued for acquisition ofURLs at $18.00 per share10,8331194,999000195,000November 24, 1999  common stock issued for acquisition ofURLs at $18.00 per share13,3331239,999000240,000November 25, 1999  common stock issued for acquisition ofURLs at $18.00 per share8,3331149,999000150,000November 25, 1999  common stock issued for acquisition ofURLs at $18.00 per share4,167075,00000075,000November 29, 1999  common stock issued for cash on exerciseof warrants at $15.00 per share667010,00000010,000December 6, 1999  common stock issued for cash on exerciseof warrants at $15.00 per share833012,50000012,500December 9, 1999  common stock issued for cash on exerciseof warrants at $15.00 per share833012,50000012,500Dividends paid0000(219,978)0(219,978)Rounding adjustment02(2)0000Net loss0000(4,201,051)0(4,201,051)Balance, December 31, 1999431,291435,560,1300(4,432,826)01,127,347January 24, 2000  common stock issued for cash on exercise833012,50000012,500of warrants at $15.00 per shareJanuary 26, 2000  common stock issued for cash on exercise1,333020,00000020,000of warrants at $15.00 per shareJanuary 31, 2000  common stock issued for cash on exercise833012,50000012,500of warrants at $15.00 per shareFebruary 8, 2000  common stock issued for cash on exercise833012,50000012,500of warrants at $15.00 per shareFebruary 9, 2000  common stock issued for cash on exercise833012,50000012,500of warrants at $15.00 per shareFebruary 11, 2000  common stock issued for cash on exercise2,500037,50000037,500of warrants at $15.00 per shareFebruary 18, 2000  common stock issued for cash on exercise2,500037,50000037,500of warrants at $15.0 per shareFebruary 24, 2000  common stock issued for deferred compensation at $51.00 per share11,6671594,999(595,000)000February 24, 2000  common stock issued for interest in oil and gas property63,33361,519,9940001,520,000February 24, 2000  common stock issued for cash on exerciseof warrants at $15.00 per share833012,50000012,500February 28, 2000  common stock issued for cash on exerciseof warrants at $15.00 per share1,667025,00000025,000March 2, 2000  common stock issued for cash on exerciseof warrants at $15.00 per share833012,50000012,500March 8, 2000  common stock issued for cash on exerciseof warrants at $15.00 per share833012,50000012,500March 17, 2000  common stock issued for cash on exerciseof warrants at $15.00 per share833012,50000012,500March 24, 2000  common stock issued for cash on exerciseof warrants at $15.0 per share1,667025,00000025,000March 31, 2000  common stock issued for cash on exerciseof warrants at $15.0 per share833012,50000012,500April 12, 2000  common stock issued for cash on exerciseof warrants at $15.00 per share833012,50000012,500April 28, 2000  common stock issued for cash on exerciseof warrants at $15.00 per share833012,50000012,500August 10 2000  common stock issued for services at $0.30per share833015,00000015,000October 5, 2000  common stock issued for cash on exerciseof warrants at $15.00 per share667010,00000010,000Deferred compensation expense recorded in the year000190,8940190,894Rounding adjustment03(3)0000Net loss0000(1,350,249)0(1,350,249)Balance, December 31, 2000526,621537,982,620(404,106)(5,783,075)01,795,492Deferred compensation expense recorded in the year000208,24600208,246Net loss0000(1,495,844)0(1,495,844)Balance, December 31, 2001526,621537,982,620(195,860)(7,278,919)0507,894November 6, 2002  common stock issued for services at $1.20 per share149,16715178,985000179,000Unrealized gain on available-for-sale securities000006,8326,832Deferred compensation expense recorded in the year00071,8960071,896Net loss0000(1,025,820)0(1,025,820)Balance, December 31, 2002675,788688,161,605(123,964)(8,304,739)6,832(260,198)January 10, 2003  common stock issued for deferred compensation at $.60325,00033194,967(195,000)000January 10, 2003  common stock issued for services at $0.6016,66729,99810,000January 14, 2003  common stock issued to acquire Miss Beverly Hills1,666,667167199,833000200,000January 21, 2003  common stock issued for services at $0.36833,33383299,917000300,000February 4, 2003  return and cancellation of common stock(1,666,667)(167)(199,833)000(200,000)February 4, 2003  return and cancellation of common stock(416,667)(42)(149,958)000(150,000)February 12, 2003  common stock issued for exercise of stock options at $0.3616,66725,9980006,000February 19, 2003  common stock issued for exercise of stock options at $0.3616,66725,9980006,000April 14, 2003  common stock issued for exercise of stock options at $0.3633,333311,99700012,000May 2, 2003  common stock issued for exercise of stock options at $0.36163,3331658,78400058,800May 6, 2003  common stock issued for exercise of stock options at $0.3641,667414,99600015,000May 16, 2003  common stock issued for exercise of stock options at $0.3633,333311,99700012,000May 27, 2003  return and cancellation of common stock(41,667)(4)(14,996)000(15,000)May 30, 2003  common stock issued for exercise of stock options at $0.3666,667723,99300024,000June 11, 2003  common stock issued for exercise of stock options at $0.42145,8331561,23500061,250June 23, 2003  common stock issued for exercise of stock options at $0.4216,66726,9980007,000June 26, 2003 - common stock issued for exercise of stock options at $0.4216,66726,9980007,000July 16, 2003 - common stock issued for exercise of stock options at $0.4237,500415,74600015,750July 17, 2003 - common stock issued for exercise of stock options at $0.4225,000310,49700010,500July 28, 2003 - common stock issued for exercise of stock options at $0.4212,50015,2490005,250August 1, 2003 - common stock issued for exercise of stock options at $0.4250,000520,99500021,000August 8, 2003 - common stock issued for exercise of stock options at $0.4216,66726,9980007,000August 11, 2003 - common stock issued for exercise of stock options at $0.4245,833519,24500019,250August 14, 2003 - common stock issued for exercise of stock options at $0.428,33313,4990003,500August 14, 2003 - common stock issued for exercise of stock options at $0.4891,667943,99100044,000August 29, 2003 - common stock issued for exercise of stock options at $0.4825,000311,99700012,000August 29, 2003 - common stock issued for exercise of stock options at $0.428,33313,4990003,500October 13, 2003  common stock issued for debt settlement at $0.54338,42634182,716000182,750October 13, 2003  common stock issued for exercise of stock options at $0.0466,667747,99300048,000October 22 , 2003  common stock issued for exercise of stock options at $0.7246,111533,19500033,200October 22, 2003  common stock issued for interest in mining property at $0.4825,000326,99700027,000October 24 , 2003  common stock issued for exercise of stock options at $0.7230,904322,24800022,251November 26, 2003  common stock issued for exercise of stock options at $0.7255,556639,99400040,000December 2, 2003  common stock issued for exercise of stock options at $0.7278,540856,54100056,549December 16, 2003  return and cancellation  of common stock(5,556)(1)(2,332)000(2,333)Stock-based compensation00364,300000364,300Unrealized loss on available-for-sale securities00000(6,947)(6,947)Deferred compensation expense000130,33200130,332Rounding adjustment0(5)50000Net loss0000(1,279,867)0(1,279,867)Balance, December 31, 20032,899,7692909,623,900(188,632)(9,584,606)(115)(149,163)January 10, 2004 -  common stock issued for deferred compensation at $0.90111,1111199,989(100,000)000January 14, 2004  common stock issued for debt at $0.72452,77845325,955000326,000March 26, 2004  common stock issued for services at $0.3622,22227,9980008,000May 21, 2004  common stock issued for exercise of stock options at $0.18144,4441425,98600026,000June 8, 2004  common stock issued for exercise of stock options at $0.1883,333814,99200015,000June 9, 2004  common stock issued for exercise of stock options at $0.1855,55669,99400010,000June 17, 2004 - common stock issued for debt at $0.18344,4443461,96600062,000June 29, 2004  common stock issued for exercise of stock options at $0.1850,00058,9950009,000July 6, 2004  return and cancellation of common stock(72,222)(7)(12,993)000(13,000)July 6, 2004  common stock issued for exercise of stock options at $0.1888,889915,99100016,000September 27, 2004common stock issued for exercise of stock options at $2.16166,66717359,983000360,000September 28, 2004common stock issued for exercise of stock options at $2.16111,11111239,989000240,000October 1, 2004  common stock issued for services at $1.807,222112,999(13,000)000October 1, 2004  common stock issued for services at $1.8097,22210174,990(175,000)000October 18, 2004  common stock issued for stock dividend (Note 6)445,81145641,9230(641,968)00October 25, 2004  common stock issued for property at $1.085,55615,9990006,000November 29, 2004 - common stock issued for property rights at $1.2655,556669,99400070,000December 1, 2004  common stock issued for services at $1.265,55616,9990007,000December 1, 2004  common stock issued for services at $1.265,55616,9990007,000December 15, 2004  common stock issued for property rights55,556659,99400060,000Share reconciliation after dividend issue(20)000000Stock based compensation00552,100000552,100Unrealized loss on available-for-sale securities00000(1,112)(1,112)Deferred compensation expense000203,91700203,917Rounding adjustment0(2)1000(1)Net loss0000(1,883,337)0(1,883,337)Balance, December 31, 20045,136,11751412,314,743(272,715)(12,109,911)(1,227)(68,596)February 15, 2005 - common stock issued for stock options at $0.54143,0561477,23600077,250February 25, 2005 - common stock issued for stock options at $0.5427,778314,99700015,000April 7, 2005 - common stock issued for stock options at $0.5427,778314,99700015,000April 8, 2005 - common stock issued for stock options at $0.5483,333844,99200045,000May 17, 2005 - common stock issued for stock options at $0.5483,333844,99200045,000June 28, 2005 - common stock issued for consulting at $0.36166,6671759,983(60,000)000July 5, 2005 - common stock issued for stock options at $0.36186,1111966,98100067,000July 22, 2005 - common stock issued for stock options at $0.3655,556619,99400020,000July 26, 2005 - common stock issued for stock options at $0.36138,8891449,98600050,000August 10, 2005 - common stock issued for stock options at $0.36109,7221139,48900039,500July 13, 2005 - common stock issued for private placement at $0.36152,7781554,98500055,000July 12, 2005 - common stock issued for consulting services at $0.365,555,5565561,999,444(2,000,000)000Stock0based compensation00743,500000743,500Unrealized gain on available-for-sale securities000001,1121,112Deferred compensation expense000520,20800520,208Rounding adjustment0(1)10000Net loss0000(1,842,055)0(1,842,055)Balance, December 31, 200511,866,6741,18715,546,320(1,812,507)(13,951,966)(115)(217,081)January 18, 2006 - common stock issued for property options at $0.36555,55656199,944000200,000January 27, 2006 - common stock issued for stock options at $0.3656,944620,49400020,500January 31, 2006 - common stock issued for stock options at $0.5427,778314,99700015,000February 2, 2006 - common stock issued for stock options at $0.54131,0941370,77700070,790February 6, 2006 - common stock issued for stock options at $0.36127,7781345,98700046,000February 9, 2006 - common stock issued for stock options at $0.5488,889947,99100048,000February 27, 2006 - common stock issued for property options at $0.36555,55656199,944000200,000March 30, 2006 - common stock issued for consulting services at $0.5416,66728,9980009,000April 1, 2006 - common stock issued for property options at $0.36555,55656199,944000200,000April 24, 2006 - common stock issued for stock options at $0.3661,111621,99400022,000May 8, 2006 - common stock issued for stock options at $0.36111,1111139,98900040,000June 2, 2006 - common stock issued for consulting services at $0.18972,22297192,403(192,500)000June 22, 2006  common stock issued for stock options at $0.1841,66747,4960007,500September 19, 2006  common stock issued for stock options at $0.0960,00065,3940005,400December 13, 2006  common stock issued for stock options at $0.09200,0002017,98000018,000December 14, 2006  common stock issued for consulting services at $0.19100,0001018,99000019,000Stock based compensation0066,60000066,600Unrealized gain on available-for-sale securities00000(569)(569)Deferred compensation expense0001,854,517001,854,517Rounding adjustment21(2)20000Net loss0000(2,954,033)0(2,954,033)Balance, December 31, 200615,528,6241,55316,726,244(150,490)(16,905,999)(684)(329,376)February 1, 2007  common stock issued for stock options at $0.09170,0001715,28300015,300April 3, 2007  common stock issued for stock options at $0.09305,0003027,42000027,450April 13, 2007  common stock issued for stock options at $0.09265,0002723,82300023,850April 30, 2007  common stock issued for stock options at $0.09250,0002522,47500022,500April 30, 2007  common stock issued for consulting services at $0.307,50012,2490002,250June 1, 2007 - common stock issued for private placement at $0.25200,0002049,98000050,000June 11, 2007 - return and cancellation of common stock(30,000)(3)(2,697)000(2,700)June 21, 2007 - common stock issued for stock options at $0.09140,0001412,58600012,600June 26, 2007  common stock issued for stock options at $0.10200,0002019,98000020,000July 13, 2007 - common stock issued for stock options at $0.1050,00054,9950005,000July 30, 2007 - return and cancellation of common stock(50,000)(5)(4,995)000(5,000)August 15, 2007 - common stock issued for deferred compensation at $0.18200,0002035,980(36,000)000October 26, 2007 - commons stock issued for stock options at $0.0930,00032,6970002,700October 26, 2007 - commons stock issued for stock options at $0.10500,0005049,95000050,000November 1, 2007 - return and cancellation of common stock(250,000)(25)(24,975)000(25,000)November 2, 2007 - commons stock issued for stock options at $0.10250,0002524,97500025,000November 7, 2007 - common stock issued for stock options at $0.10400,0004039,96000040,000November 7, 2007 - return and cancellation of common stock(100,000)(10)(9,990)000(10,000)November 20, 2007 - return and cancellation of common stock(250,000)(25)(24,975)000(25,000)November 21, 2007 - commons stock issued for stock options at $0.10250,0002524,97500025,000November 21, 2007 - common stock issued for private placement at $0.2025,00024,9980005,000December 20, 2007 - return and cancellation of common stock(150,000)(15)(14,985)000(15,000)Stock based compensation00228,000000228,000Unrealized gain on available-for-sale securities00000587,218587,218Deferred compensation expense00084,6680084,668Rounding adjustment170000000Net Loss0000(422,958)0(422,958)Balance, December 31, 200717,941,2941,79417,233,953(101,822)(17,328,957)586,534391,502February 27, 2008  common stock issued for director services at $0.1130,00033,2970003,300May 16, 2008 - commons stock issued for stock options at $0.10250,0002524,97500025,000June 2, 2008 - commons stock issued for stock options at $0.10375,5003737,51300037,550June 4, 2008 - commons stock issued for stock options at $0.1037,00043,6960003,700June 18, 2008  common stock issued for director services at $0.1425,00023,4980003,500July 21, 2008 - commons stock issued for stock options at $0.10158,2301615,80700015,823September 16, 2008  common stock issued for director services at $0.0425,00029980001,000Unrealized gain on available-for-sale securities00000379,702379,702Deferred compensation expense00075,2930075,293Net Loss0000(245,550)0(245,550)Balance, December 31, 200818,842,0241,88317,323,737(26,529)(17,574,507)966,236690,820August 10, 2009 - commons stock issued for stock options at $0.04100,000103,9904,000October 6, 2009 - common stock issued for stock options at $0.0225,0002498500October 22, 2009 - common stock issued for stock options at $0.022,500,00025049,75050,000November 25, 2009 - common stock issued for stock options at $0.06100,000105,9906,000November 30, 2009 - common stock issued for services at $0.07700,0007048,930(49,000)0December 4, 2009 - common stock issued for stock options at $0.05400,0004019,96020,000December 16, 2009 - common stock issued for stock options at $0.05275,0002813,72213,750December 30, 2009 - common stock issued for stock options at $0.03500,0005014,95015,000Unrealized gain on available-for-sale securities(779,918)(779,918)Deferred compensation expense30,32030,320Net Loss(174,064)(174,064)Balance, December 31, 200923,442,024$2,343$17,481,527$(45,209)$(17,748,571)$186,318$(123,592)








The accompanying notes are an integral part of these consolidated financial statements.



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GOLDEN SPIRIT ENTERPRISES LTD.

(A development stage company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

September 13,1993Year endedYear ended(inception)December 31,December 31,to20092008December 31 2008,OPERATING ACTIVITIESNet loss$           (174,064)$              (245,550)$       (17,366,603)Adjustments to reconcile net loss to net cash used in operating activities:Depreciation-107132,569Fees and services paid for with shares30,32083,0935,097,009Loss on settlement of debt--302,500Stock-based compensation--2,208,169Non-cash component of URL write-down--1,214,193Resource property acquisition and exploration costs--763,000Film production and development costs--(90,763)Write-down of technology license--2,055,938Write-off of website development costs--206,876Write-down of film production & development costs-90,76290,762Equity loss from Organa Gardens International Inc.--1,394,280Write-down of investment in Organa Gardens International Inc.--313,301(Gain)/Loss on sale of marketable securities(7,723)(28,645)(44,614)Dilution gain  Legacy Wine & Spirits International  Ltd.--(334,087)Net changes in operating assets and liabilities(12,550)(11,053)314,874CASH FLOWS USED IN OPERATING ACTIVITIES(164,017)(111,286)(3,742,596)INVESTING ACTIVITIESDeposit--(75,000)Technology license--(135,938)Acquisition of furniture and equipment--(32,696)Website development costs--(306,876)Other intangible assets--(5,189)Purchase of securities  related parties-(19,532)(75,603)Net proceeds from sale of securities  related parties156,55788,815380,238Net cash on disposition of Legacy Wine & Spirits International Ltd.--209,955CASH FLOWS (USED IN)  INVESTING ACTIVITIES156,55769,283(41,109)FINANCING ACTIVITIESNet advances (to)/ from related parties7,127(44,796)658,505Net proceeds on sale of common stock-82,0733,125,423CASH FLOWS PROVIDED BY FINANCING ACTIVITIES7,12737,2773,784,928NET (DECREASE) INCREASE IN CASH(333)(4,726)1,223CASH, BEGINNING OF YEAR1,5566,282-CASH , END OF YEAR$           1,223$                  1,556$                  1,223




The accompanying notes are an integral part of these consolidated financial statements.



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GOLDEN SPIRIT ENTERPRISES LTD.

(A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2009 AND 2008




NOTE 1  NATURE OF OPERATIONS AND BASIS OF PRESENTATION



The Company was incorporated on September 13, 1993 in the State of Delaware as Power Direct, Inc.  On January 31, 2000 the Company changed its name to 2U Online.com Inc. to reflect managements decision to shift the Companys focus from oil and gas exploration and development to internet-based business development.  On October 8, 2003, the Company changed its name to Golden Spirit Minerals Ltd. to reflect managements decision to shift the Companys focus from internet-based business development to mineral exploration. On October 19, 2004, the Company changed its name to Golden Spirit Mining Ltd. On July 18, 2005, the Company changed its name to Golden Spirit Gaming Ltd. to reflect managements decision to develop an online gaming business.  The launch of the updated goldenspiritpoker.com website featuring real cash games, in addition to play money games, occurred in January 2006.  By agreement dated July 18, 2005 as amended September 20, 2005 (the Amended Agreement), the Company agreed to acquire 100% of the issued and outstanding common shares of 4 Of A Kind Enterprises (4KE) doing business as EverythingAboutPoker.com for consideration of 1,388,889 post-reverse split restricted shares of the Companys common stock which were placed in trust pending finalization of the agreement.  The parties have agreed to complete this acquisition, subject to satisfactory completion of due diligence (See Note 5), effective March 31, 2006. Effective June 30, 2006, the Company completed a 1 for 18 reverse stock split (refer Note 7) and changed its name to Golden Spirit Enterprises Ltd. to reflect the Companys plan to expand its operations to include the marketing of other products and venues not related to gaming. The Company will be involved in the development, production, financing and packaging of innovative film and television programming. In addition, the Company has signed an agreement with Eneco Industries to participate in a series of Municipal Solid Waste (garbage) fueled Recycling and Resource Recovery Plants and the Company signed an agreement to acquire 32 BLM gold mineral lease claims in the newly discovered Long Canyon Trend of east central Nevada



The consolidated financial statements have been prepared on the basis of a going concern which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company has incurred losses since inception of $16,886,625 and at December 31, 2009 had a working capital deficiency of $257,120.  The Company and its subsidiaries are in the development stage and further significant losses are expected to be incurred in developing its business.  The recoverability of the carrying value of assets and the ability of the Company to continue as a going concern is dependent on raising additional capital and ultimately on generating future profitable operations.  There can be no assurance that the Company will be able to raise the necessary funds when needed to finance its ongoing costs. Given the Companys limited operating history, lack of sales, and its operating losses, there can be no assurance that it will be able to achieve or maintain profitability. The Company intends to fund the marketing of its business with both equity financing and joint venture opportunities, although there are no assurances these opportunities will be successful. Accordingly, these factors raise substantial doubt regarding the ability of the Company to continue as a going concern.



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NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Principles of Consolidation

The financial statements include the accounts of the Company and its subsidiaries, a 100% interest in PD Oil & Gas, Inc. (inactive), and a 100% interest in Cardstakes.com Enterprises Ltd. (inactive).



Furniture and Equipment

Furniture and equipment is carried at acquisition cost less accumulated depreciation. Depreciation is provided over the estimated useful lives of the assets on a 30% declining balance basis per annum.



Use of Estimates and Assumptions

Preparation of the Companys financial statements in conformity with accounting principles generally accepted in the United Stares requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.  The significant areas requiring managements estimates and assumptions relate to determining the fair value of stock-based compensation, fair value of shares issued for services and the acquisitions and useful lives of long-lived assets.



NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Fair Value of Financial Instruments

The Companys financial instruments include cash, receivables, available-for-sale securities, amounts due from Legacy Wine & Spirits International Ltd., accounts payable and accrued liabilities, amounts due to Organa Gardens International Inc., and due to related parties.  Management believes the fair values of these financial instruments approximate their carrying values due to their short-term nature.



The Company adopted Accounting Standards Codification (ASC or the Codification) Topic 820-10 (formerly SFAS No. 157) for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Topic 820-10 (formerly SFAS No. 157) defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Topic 820-10 (formerly SFAS No. 157) defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk including our own credit risk.



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In addition to defining fair value, Topic 820-10 (formerly SFAS No. 157) expands the disclosure requirements around fair value and establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.  Each fair value measurement is reported in one of the three levels which is determined by the lowest level input that is significant to the fair value measurement in its entirety. These levels are:



*    Level 1  inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

*    Level 2  inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

*    Level 3  inputs are generally unobservable and typically reflect managements estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques



In general, and where applicable, we use quoted prices in an active market for identical derivative assets and liabilities that are traded on exchanges. These derivative assets and liabilities are included in Level 1.



Foreign Currency Translation

The financial statements are presented in United States dollars.  In accordance with ASC Topic 830 (formerly SFAS No. 52), Foreign Currency Translation, foreign denominated monetary assets and liabilities are translated to their United States dollar equivalents using foreign exchange rates that prevailed at the balance sheet date.  Non-monetary assets and liabilities are translated at exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rates of exchange during the year.  Related translation adjustments are reported as a separate component of stockholders equity, whereas gains or losses resulting from foreign currency transactions are included in results of operations.



Available For Sale Securities  Related Party

The Company holds marketable equity securities which are available-for-sale and as such, their carrying value is adjusted to market at the end of each reporting period.  As required by ASC Topic 220 (formerly SFAS 130), unrealized gains and losses on these investments are recorded as a component of accumulated other comprehensive income (loss) and are recorded as a component of net income (loss) when realized.  However, if there is a permanent decline in the market value of available-for-sale securities, this permanent market value adjustment is taken into income in the period.

Film Production and Development Costs

Capitalized film production and development costs consist of investments in films which include the unamortized costs of completed films which have been produced by the Company or for which the Company has acquired distribution rights.  For films produced by the Company, capitalized costs include all direct production and financing costs, and production overhead. For acquired films, capitalized costs consist of minimum guarantee payments to acquire the distribution rights.



NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



Costs of acquiring and producing films are amortized using the individual-film-forecast method as defined in ASC Topic 300 (formerly SOP 00-2), whereby these are amortized and participation and residual costs are accrued in the proportion that current years revenue bears to managements estimate of ultimate revenue at the beginning of the current year expected to be recognized from the exploitation, exhibition or sale of the films.



Capitalized film costs are stated at the lower of amortized cost or estimated fair value on an individual film basis. The valuation of investment in films is reviewed on a title-by-title basis, when an event or changes in circumstances indicate that the fair value of a film is less than its unamortized cost. The fair value of the film is determined using managements future revenue and cost estimates. Additional amortization is recorded for the amount, if any, by which the unamortized costs exceed the estimated fair value of the film. Estimates of future revenue involve measurement uncertainty and it is therefore possible that reductions in the carrying value of investment in films may be required as a consequence of changes in managements future revenue estimates.



Films in progress include the accumulated costs of production, which have not yet been completed by the Company.



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Films in development include costs of acquiring film rights to original screenplays and costs to adapt such projects. Such costs are capitalized and, upon commencement of production, are transferred to production costs. Projects in development are written off at the earlier of the date determined not to be recoverable or when abandoned, or three years from the date of the initial investment.

Income Taxes

The Company follows the liability method of accounting for income taxes as set forth in ASC Topic 740-10 & 740-30(formerly SFAS No. 109) Accounting for Income Taxes.  Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances.  Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.  A valuation allowance is provided for deferred tax assets if it is more likely than not that the Company will not realize the future benefit, or if the future deductibility is uncertain. In accordance with ASC 740-10 (formerly FIN No. 48 Accounting for Uncertainty in Income Taxesan interpretation of FASB Statement No. 109). This interpretation introduces a new approach that changes how enterprises recognize and measure tax benefits associated with tax positions and how enterprises disclose uncertainties related to income tax positions in their financial statements. The company does not currently expect that adoption of ASC 740-10 (formerly FIN 48) will not have a material impact on the companys consolidated results of operations and financial position.

Loss per Common Share

The Company computes loss per share in accordance with ASC Topic 260 (formerly SFAS 128), Earnings per Share which requires presentation of both basic and diluted earnings per share on the face of the statement of operations.  Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period.  Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period including stock options, using the treasury method.  Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

Stock-Based Compensation

The Company accounts for all compensation related to stock, options or warrants using a fair value based method whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. The Company uses the Black-Scholes pricing model to calculate the fair value of options and warrants issued to both employees and non-employees. Stock issued for compensation is valued using the market price of the stock on the date of the related agreement.





NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)



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Recent Accounting Pronouncements

In March 2008, the FASB issued an update to FASB ASC 815, Derivatives and Hedging  This update is intended to enhance the current disclosure framework in FASB ASC 815.  Under this update, entities will have to provide disclosures about (a) how and why and entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under FASB ASC 815 and its related interpretations, and (c), how derivative instruments and related hedged items effect an entitys financial position, financial performance and cash flows.  This update is effective for all financial statements issued for fiscal and interim periods beginning after November 15, 2008.  The Company does not currently have any derivative instruments, nor does it engage in hedging activities, therefore, the Companys adoption of this update in the first quarter of 2009 was without significant financial impact.



In April 2009, the FASB issued an accounting standard that requires disclosures about fair value of financial instruments not measured on the balance sheet at fair value in interim financial statements as well as in annual financial statements.  Prior to this accounting standard, fair values for these assets and liabilities were only required be disclosed annually.  This standard applies to all financial instruments within its scope and requires all entities to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments.  This standard does not require disclosures for earlier periods presented for comparative purposes at initial adoption, but in periods after the initial adoption, this standard requires comparative disclosures only for periods ending after initial adoption.  This accounting standard became effective for us beginning with the quarter ended on June 30, 2009, however, it did not have a material impact on our consolidated financial statements.



In May 2009, the FASB issued FASB ASC 855, Subsequent Events, ASC 855 provides authoritative accounting literature related to evaluating subsequent events that was previously addressed only in the auditing literature, and is largely similar to the current guidance in the auditing literature with some exceptions that are not intended to result in significant changes in practice. SFAS 165 defines subsequent events and also requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date.  ASC 855 is effective on a prospective basis for interim or annual financial periods ending after June 15, 2009. The adoption of this standard during the period did not have any impact on the Companys financial position, cash flows or results of operations. The adoption of this standard during the period did not have any impact on the Companys financial position, cash flows or results of operations. On February 24, 2010, the FASB issued Accounting Standards Update (ASU) 2010-09, Amendments to Certain Recognition and Disclosure RequirementsAs a result of the amendments, SEC filers that file financial statements after February 24, 2010 are not required to disclose the date through which subsequent events have been evaluated.



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In June 2009, the FASB issued SFAS No. 166, Accounting for Transfers of Financial Assets  an amendment of FASB Statement No. 140.  SFAS No. 166 amends SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities by eliminating the concept of special-purpose entity, requiring the reporting entity to provide more information about sales of securitized financial assets and similar transactions, particularly if the seller retains some risk to the assets, changes the requirements for the de-recognition of financial assets, and provides for the sellers of the assets to make additional disclosures.  This Statement shall be effective as of the Companys first interim reporting period that begins after November 15, 2009. Earlier application is prohibited.  The Company does not anticipate any significant financial impact from adoption of SFAS No. 166. As of September 30, 2009, SFAS No. 166 has not been added to the Codification.



In June 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation No. 46(R).  SFAS No. 167 addresses the effect on FASB Interpretation 46(R), Consolidation of Variable Interest Entities of the elimination of the qualifying special-purpose entity concept of SFAS No. 166, Accounting for Transfers of Financial Assets.  SFAS No. 167 also amends the accounting and disclosure requirements of FASB Interpretation 46(R) to enhance the timeliness and usefulness of information about an enterprises involvement in a variable interest entity. This Statement shall be effective as of the Companys first interim reporting period that begins after November 15, 2009. Earlier application is prohibited.  The Company does not anticipate any significant financial impact from adoption of SFAS No. 167. As of December 31, 2009, SFAS No. 167 has not been added to the Codification.



In June 2009, the FASB issued Accounting Standard Update (ASU) No. 2009-01 (Topic 105)  Generally Accepted Accounting Principles  amendments based on  Statement of Financial Accounting Standards No. 168  The FASB Accounting and Standards Codification and the Hierarchy of Generally Accepted Accounting Principles. Beginning with this Statement the FASB will no longer issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts.  Instead, it will issue Accounting Standard Updates.  This ASU includes FASB Statement No. 168 in its entirety.  While ASUs will not be considered authoritative in their own right, they will serve to update the Codification,
provide the bases for conclusions and changes in the Codification, and provide background information about the guidance.  The Codification modifies the GAAP hierarchy to include only two levels of GAAP:  authoritative and nonauthoritative.



ASU No. 2009-01 is effective for financial statements issued for the interim and annual periods ending after September 15, 2009, and the Company does not expect any significant financial impact upon adoption.



In July 2009, the FASB officially launched the FASB ASC 105 --  Generally Accepted Accounting Principles, which established the FASB Accounting Standards Codification (the Codification), as the single official source of authoritative, nongovernmental, U.S. GAAP, in addition to guidance issued by the Securities and Exchange Commission.  The Codification is designed to simplify U.S. GAAP into a single, topically ordered structure.  All guidance contained in the Codification carries an equal level of authority.  The Codification is effective for interim and annual periods ending after September 15, 2009.  Accordingly, the Company refers to the Codification in respect of the appropriate accounting standards throughout this document as FASB ASC.  Implementation of the Codification did not have any impact on the Companys consolidated financial statements.



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In August 2009, the FASB issued ASU No. 2009-05  Fair Value Measurements and Disclosures (Topic 820)  Measuring Liabilities at Fair Value.  This ASU clarifies the fair market value measurement of liabilities.  In circumstances where a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the following techniques: a technique that uses quoted price of the identical or a similar liability or liabilities when traded as an asset or assets, or another valuation technique that is consistent with the principles of Topic 820 such as an income or market approach.  ASU No. 2009-05 was effective upon issuance and it did not result in any significant financial impact on the Company upon adoption.



In September 2009, the FASB issued Accounting Standard Update (ASU) No. 2009-12  Fair Value Measurements and Disclosures (Topic 820)  Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent).  This ASU permits use of a practical expedient, with appropriate disclosures, when measuring the fair value of an alternative investment that does not have a readily determinable fair value.  ASU No. 2009-12 is effective for interim and annual periods ending after December 15, 2009, with early application permitted.  Since the Company does not currently have any such investments, it does not anticipate any impact on its financial statements upon adoption.

.

In December 2009, the FASB issued ASU No. 2009-17 regarding consolidations and improvements to financial reporting by enterprises involved with VIEs. This ASU changes how a company determines when an entity that is insufficiently capitalized or is not controlled through voting should be consolidated.  The determination of whether a company is required to consolidate an entity is based on, among other things, an entitys purpose and design and a companys ability to direct the activities of the entity that most significantly impact the entitys economic performance.  This statement is effective for us beginning in the first quarter of fiscal 2011 (October 1, 2010). We are currently assessing the potential impact that the adoption of ASU No. 2009-17 will have on our consolidated financial statements.

NOTE 3  AVAILABLEFOR-SALE SECURITIES  RELATED PARTIES



Organa

The Company owns common shares of Organa Gardens International Inc. (formerly Shotgun Energy Corporation) (Organa), a public company with directors and significant shareholders in common that does not represent a position of control of or significant influence over Organa.  During 2007 the Company recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $3,775, which was recorded as other comprehensive income (loss).  During the year ended December 31, 2008, the Company recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $5,612 which was recorded as other comprehensive income (loss). During the year ended December 31, 2009, the Company sold 50,000 shares resulting in a realized loss of $(780) and recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $5,138, which was recorded as other comprehensive income. As at December 31, 2009, the Company owns 3,450 shares of Organas common stock with a market value of $41 (December 31, 2008 - $1,604).



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NOTE 3  AVAILABLEFOR-SALE SECURITIES  RELATED PARTIES (continued)



Legacy

The Company owns common shares of Legacy Wine & Spirits International Ltd. (Legacy), a public company with directors and significant shareholders in common, that does not represent a position of control of or significant influence over Legacy.  During 2007 the Company recorded an unrealized gain in the carrying value of its available-for-sale securities totaling $590,993. During the year ended December 31, 2008, the Company acquired 23,200 shares valued at $19,532 sold 99,400 shares resulting in a realized gain of $28,645(net of commissions of $2,132) and recorded an unrealized gain in the



carrying value of its available-for-sale securities totaling $275,121, which was recorded as other comprehensive income. During the year ended December 31, 2009, the Company sold 301,600 shares resulting in a realized gain of $8,503 and recorded an unrealized loss in the carrying value of its available-for-sale securities totaling $780,606, which was recorded as other comprehensive loss. As at December 31, 2009, the Company owns 894,577 shares of Legacys common stock with a market value of $53,675. (December 31, 2008 - $980,864).



Available for sale securities  related parties include the following:



|                                                              |                  |                  
|------------------------------------------------------------- | ---------------- | -----------------
|                                                              | December 31,     | December 31,     
|                                                              | 2009             | 2008             
|894,577  (2008-1,196,177) shares of Legacy Wine & Spirits     | $         53,675 | $        980,864 
|3,450  (2008- 53,450) shares of  Organa Gardens International | 41               | 1,604            
|                                                              | $        53,716  | $         982,648





-31-

NOTE 4  FILM PRODUCITON AND DEVELOPMENT COSTS



Film Production and development costs at December 31, 2009 are made up as follows:



|                               |  |                     |                          |                                                 |                              |                            
|------------------------------ |  | ------------------- | ------------------------ | ----------------------------------------------- | ---------------------------- | ---------------------------
|                               |  | Gross Cost          | Accumulated amortization | 2008 writedown of film rights and related costs | Net Cost
  December 31, 2009 | Net Cost
  December31, 2009
|                               |  |                     |                          |                                                 |                              |                            
|Acquired films and film rights |  | $          84,970   | $                     -  | (84,969)                                        | $                    1       | $          1               
|Films in progress              |  | 5,793               | -                        | (5,793)                                         | -                            | -                          
|                               |  |                     |                          |                                                 |                              |                            
|                               |  | $            90,763 | $                     -  | $ (90,762)                                      | $                   1        | $           1              





Acquired Films and Film Rights



The Company has acquired from Beijing Dadu Sunshine Film & Culture Co. Ltd., the exclusive distribution rights worldwide, except for Asia, for the film Tales of Rain and Magic.  Under the terms of the License Agreement dated March 23, 2007, the Company will receive twenty-five (25) percent interest of the gross receipts earned from sales in those countries. Tales of Rain and Magic portrays a young girls coming of age, and of the psycho-logical and physiological changes that she encounters along the way to adulthood. As of December 31, 2009, due to uncertainty of realization, the Company has written down this project to a value of $Nil. (2008 - $Nil)

The Company has signed an Agreement dated March 15, 2007 with Amazing Super Buddies Productions Inc. to act as the Producer and Distributor for a 3D Television Series for children known as ASB: Power Force. In return for advancing $54,000 U.S. to produce the series, the Company will receive a guaranteed fifteen (15) percent interest of gross receipts earned worldwide, inclusive of all character licensing and merchandise sold from the ASB: Power Force Series. As of December 31, 2009, due to uncertainty of realization, the Company has written down this project to a nominal value of $1. (2008 - $1)



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NOTE 4  FILM PRODUCITON AND DEVELOPMENT COSTS (continued)



Films in progress



The Company has signed an Agreement dated February 15, 2007 to represent The Cabin, a teen-oriented, horror/thriller feature film . As distributor of the film, Golden Spirit will receive a fee of twenty-five percent (25%) from the gross amounts of all sales or distribution deals made internationally and twenty percent (20%) from the gross amounts of all sales or distribution deals made in the United States. As of December 31, 2009, due to uncertainty of realization, the Company has written down this project to a value of  $Nil. (2008 - $Nil)

The Company has signed an Agreement dated March 15, 2007 to represent The Brotherhood of the Phoenix, a high concept action drama feature film. As distributor of the film, Golden Spirit will receive a fee of twenty-five percent (25%) from the gross amounts of all sales or distribution deals made internationally and twenty percent (20%) from the gross amounts of all sales or distribution deals made in the United States. As of December 31, 2009, due to uncertainty of realization, the Company has written down this project to a value of $Nil. (2007 - $Nil)



The Company has signed a Memorandum of Understanding dated March 23, 2007 with Pentafilms, SARL of France and Beijing Dadu Sunshine Film & Culture Co. Ltd. to co-produce and distribute a film called The Mists of Time. The financial contribution for production by each party, the final percentage of distribution rights, final casting and budget will be determined in the final agreement. As of December 31, 2009, the Company has spent $ Nil on this project.



NOTE 5  OTHER PROPERTIES



The Company has signed an Agreement dated March 28, 2008 with EnEco Industries Ltd. ("EnEco"), a waste management company that has been in operation for fifteen years, to form an alliance for a renewable energy entity, where Golden Spirit will take majority interest in a series of Municipal Solid Waste (garbage) fueled Recycling and Resource Recovery Plants designed by EnEco. These plants will be in strategically located areas diverting tons of garbage from landfills and drastically reducing greenhouse gas outputs. As of December 31, 2009, the Company is seeking partners to finance this project. As of December 31, 2009, the Company has spent $Nil on this project (2008  $Nil)



On October 29, 2009, the Company signed an agreement to acquire 32 BLM gold mineral lease claims in the newly discovered Long Canyon Trend of east central Nevada. The Company will acquire a 75% undivided interest in these 32 claims. The vendor will maintain a 25% interest in the claims until the Company has spent a minimum of $150,000 in exploration costs within 24 months from the date of this Agreement on the properties. The Company agreed to spend up to $25,000 for a geological report before December 15, 2009 and an additional $50,000 during the months of March through July 2010. The balance of $75,000 can be spent over the following 15 months at the Companys discretion to earn the full 100% interest. The Company is required to pay $10,000 cash ($3,076 paid) and issue up to 5,000,000 restricted common shares to acquire the interest. (shares not issued). Subsequent to December 31, 2009, management decided not to proceed with this acquisition and signed a dissolution agreement in March, 2010. The $3,076 advanced was refunded to the Company.



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NOTE 6  DEFERRED COMPENSATION

The Company has recorded as deferred compensation prepaid amounts for consulting and management services contracts paid for by issuance of shares of common stock as follows:



a)

On June 2, 2006, the Company entered into an agreement with a consultant, for a three-year term, whereby the consultant provides consulting services to the Company (valued at $110,000) in exchange for 555,556 shares of the Companys common stock.  To December 31, 2009, a total of $110,000 has been expensed (December 31, 2008 - $94,726).



b)

On June 2, 2006, the Company signed an agreement with an effective date of October 1, 2005 with a consultant, for a three-year term, whereby the consultant provides services to the Company (valued at $82,500) in exchange for 416,667 shares of the Companys common stock.  To December 31, 2009, a total of $82,500 has been expensed (December 31, 2008 - $82,500).



c)

On August 15, 2007, the Company entered into an agreement with Palisades Financial Ltd. (Palisades), a private company controlled by a significant shareholder, with a two-year term, whereby Palisades provides investment-banking services to the Company (valued at $36,000) in exchange for 200,000 restricted shares of the Companys common stock.  As at  December 31, 2009, a total of $36,000 has been expensed (December 31, 2008 - $24,750)



d)

On November 18, 2009, the Company entered into an agreement with a consultant, for a eighteen month term, whereby the consultant provides consulting services to the Company (valued at $17,500) in exchange for 250,000 shares of the Companys common stock.  As at December 31, 2009, a total of $1,458 has been expensed (December 31, 2008 - $Nil).



e)

On November 18, 2009, the Company entered into an agreement with Palisades Financial Ltd. (Palisades), a private company controlled by a significant shareholder, with a two-year term, whereby Palisades provides investment-banking services to the Company (valued at $14,000) in exchange for 200,000 restricted shares of the Companys common stock.  As at  December 31, 2009, a total of $875 has been expensed (December 31, 2008 - $Nil)



f)

On November 18, 2009 the Company entered into an agreement with Compte de Sierge Accomodative Corp. (Compte), a private company controlled by a significant shareholder, with a two-year term, whereby Compte provides investor relations services to the Company (valued at $17,500) in exchange for 250,000 restricted shares of the Companys common stock.  As at  December 31, 2009, a total of $1,458 has been expensed (December 31, 2008 - $Nil)



As at December 31, 2009, the unamortized portion of the deferred compensation totaled $45,209 (December 31, 2008 -  $26,529).



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NOTE 7  CAPITAL STOCK

The Companys capitalization is 500,000,000 common shares with a par value of $0.0001 per share. No preferred shares have been authorized.



(1)        2009 Stock Transactions

During the year ended December 31, 2009:



During the year ended December 31, 2009, 3,900,000 incentive stock options were granted and immediately  exercised at prices between $0.02 -$0.06 per share to satisfy debts  related parties in the amount of $ 109,250. Accordingly, no compensation expense was recorded.



On November 30, 2009, the Company issued 700,000 restricted common shares valued at $49,000 to consultants pursuant to three deferred compensation agreements dated November 18, 2009.



(2)

2008 Stock Transactions

During the year ended December 31, 2008:



On February 27, 2008 the Company issued 30,000 restricted common shares valued at $3,300 to a director for
his current services

On June 18, 2008 the Company issued 25,000 restricted common shares valued at $3,500 to a consultant for
his current services

820,730 incentive stock options were exercised at $0.10 per share for proceeds of $82,073.

On September 16, 2008 the Company issued 25,000 restricted common shares valued at $1,000 to a director
for her current services







NOTE 7  CAPITAL STOCK continued

(3)

2009 Stock Options



During the year ended December 31, 2009, the Company granted 3,900,000 stock options to related party consultants and these options were immediately exercised at prices between $0.02 - $0.04 per share to satisfy

debts to these  related parties in the amount of $109,250.



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The Companys stock option activity is as follows:

|                           |                   |                                 |                                            
|-------------------------- | ----------------- | ------------------------------- | -------------------------------------------
|                           | Number of options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life
|                           |                   |                                 |                                            
|Balance, December 31, 2007 | 3,172,517         | $                   0.18        | 3.80 years                                 
|Granted during 2008        | -                 | -                               |                                            
|Exercised during 2008      | (845,730)         | 0.10                            |                                            
|                           |                   |                                 |                                            
|Balance, December 31, 2008 | 2,351,787         | 0.20                            | 2.67 years                                 
|Granted during 2008        | -                 | -                               |                                            
|Exercised during 2008      | -                 | -                               |                                            
|                           |                   |                                 |                                            
|Granted during 2009        | 3,900,000         | -                               |                                            
|Exercised during 2009      | (3,900,000)       | 0.03                            |                                            
|                           |                   |                                 |                                            
|Balance, December 31, 2009 | 2,351,787         | $                    0.20       | 2.67 years                                 



On June 29, 2009, the Company filed Registration Statements on Form S-8 to register 8,000,000 shares to be issued pursuant to the Companys 2009 Stock Incentive and Option Plan. 3,900,000 of these options were granted to consultants at prices between $0.02 - $0.04 per share during the year and immediately exercised to satisfy debt to related parties in the amount of $109250.





-36-



(4)

2008 - Stock Options



During the year ended December 31, 2008, the Company did not grant any stock options to directors, employees or consultants.



The Companys stock option activity is as follows:



|                           |                   |                                 |                                            
|-------------------------- | ----------------- | ------------------------------- | -------------------------------------------
|                           | Number of options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life
|Balance, December 31, 2006 | 1,352,517         | $                   0.26        | 3.08 years                                 
|Granted during 2007        | 3,800,000         | 0.10                            |                                            
|Exercised during 2007      | (1,980,000)       | 0.10                            |                                            
|Balance, December 31, 2007 | 3,172,517         | $                  0.18         | 3.80 years                                 
|Granted during 2008        | -                 | -                               |                                            
|Exercised during 2008      | (845,730)         | 0.10                            |                                            
|Balance, December 31, 2008 | 2,351,787         | $                    0.20       | 2.67 years                                 



NOTE 8  RELATED PARTY TRANSACTIONS



During 2009, companies controlled by significant shareholders earned $ 30,315 (2008 - $18,000) pursuant to deferred compensation services contracts (refer to Note 6).



During 2009, the Company paid $2,354 (2008 - $4,300) to two directors for management fees.



During 2009, the Company incurred expenses for office rent of $ 21,463 (2008 - $25,350) to a private company controlled by a significant shareholder.





-37-





At December 31, 2009, a total of $7,143 ( 2008 - $(32,747)) was due from/(to) to Organa Gardens International Inc., a public company with common directors and officers, for cash advances. This amount is unsecured, non-interest bearing and has no specified terms of repayment.



At December 31, 2009, a total of $72,668 (2008  ($31,331) was due from Legacy Wine & Spirits International Ltd. (Legacy), a company with common directors and officers, for cash advances. This amount is unsecured, non-interest bearing and has no specified terms of repayment.



The following amounts are due to related parties at:

|                         |                        |                  
|------------------------ | ---------------------- | -----------------
|                         | December 31, 2009      | December 31, 2008
|                         |                        |                  
|Significant shareholders | $              227,837 | $         248,733

All related party transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.

NOTE 9  COMMITMENTS AND CONTINGENCIES



On May 2, 2003, the Company issued 25,000 post reverse-split common shares valued at $9,000 to a consultant pursuant to a stock option incentive plan.  The consultant failed to meet the terms of the stock option agreement by not paying the exercise price and as a result, the Company requested the return of the 25,000 post reverse-split shares.  The consultant refused to return the shares; therefore, the Company issued a stop transfer and commenced legal proceedings to recover the shares.  The consultant subsequently filed a Statement of Claim against the Company for damages of $53,000 Cdn.  On April 29, 2005, the Supreme Court of British Columbia issued a judgment awarding the plaintiff $15,000 Cdn in damages and $7,180 Cdn in costs; however, the 25,000 post reverse-split shares were to be returned to the Company (not yet received).In September 2005, the Company and the plaintiff agreed to payment terms to settle this damage award by a payment of $6,080 Cdn (paid) and a payment schedule of $1,000 Cdn per month for the remaining balance of the judgment commencing December 1, 2005.  The $6,080 Cdn payment was made as the result of a bailiffs executed court order on September 28, 2005, which seized the Companys bank account.  No further payments were made towards the settlement agreement due to the Plaintiffs refusal to sign the order. However, in the fourth quarter of 2009, the Supreme Court of British Columbia ruled in favor of the plaintiff despite the plaintiffs failure to return the shares to the Company. In addition to the $6,080 Cdn. payment previously made and an amount of $14,810 US accrued towards a final resolution of the matter, the Company was ordered to pay an additional $52,169 US in damages and the case is now closed.





-38-



On September 28,2005, the Company received notice of a lawsuit from Thomas L. Franklin, a professional poker player formerly under contract with 4KE, for an alleged breach of contract for services rendered based on the original contract between the Company and 4KE dated July 18, 2005.  The Company, 4KE, and certain individuals, are being sued for $967,500, plus interest at the rate of 8% per annum from August 22, 2005, and all costs pertaining to this legal matter.  An attorney in Mississippi has been retained to defend this action and to apply for a dismissal of the case, based on Mississippi being the wrong jurisdiction for this suit and to defend the Company from the claims made by the plaintiff.  The court case was dismissed in favour of the Company in the second quarter of 2008.



As of August 1, 2002, the Company has leased 1250 sq. ft of office space from Holm Investments Ltd. at $1,000 per month for a period of 3 years and was renewed for an additional 3 years at $2,050 per month. The current tenancy agreement expires August 1, 2008 pursuant to a renewal for an additional 3 years at $2,200.



NOTE 10  INCOME TAXES



As of December 31, 2009, the Company had net operating loss carryforwards of approximately $17,750,000 that may be available to reduce future years' taxable income and will expire between the years 2010 - 2029.  Availability of tax losses is subject to change of ownership limitations under Internal Revenue Code 382.  Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carryforwards.



The actual income tax provisions differ from the expected amounts calculated by applying the federal income tax statutory rate to the Companys loss before income taxes. The components of these differences are as follows:



|                                              |                             |                              |                             
|--------------------------------------------- | --------------------------- | ---------------------------- | ----------------------------
|                                              |                             | Year ended
December 31, 2009 | Year ended
December 31, 2008
|                                              |                             |                              |                             
|                                              |                             |                              |                             
|Loss before income taxes                      | $            (174,064)      | $            (245,550)      
|Combined federal and state corporate tax rate | 42.7%                       | 42.7%                       
|                                              |                             |                              |                             
|Expected tax expense (recovery)               | (74,325)                    | (105,000)                   
|Non-deductible stock based compensation       | 97,000                      | 97,000                      
|Change in valuation allowance                 | (22,765)                    | 8,000                       
|                                              |                             |                              |                             
|Income tax provision                          | $                         - | $                         - 



-39-



The Companys tax-effected deferred income tax assets and liabilities are estimated as follows:



|                                |   |             |   |            
|------------------------------- | - | ----------- | - | -----------
|                                |   | 2009        |   | 2008       
|                                |   |             |   |            
|Non-capital loss carry forwards | $ | 7,273,000   | $ | 7,273,000  
|Valuation allowance             |   | (7,273,000) |   | (7,273,000)
|Net deferred tax asset          | $ | -           | $ | -          



NOTE 11    SUPPLEMENTAL CASH FLOW INFORMATION AND NON-CASH INVESTING AND FINANCING ACTIVITIES



|                                                                 |  |                     |  |                    
|---------------------------------------------------------------- |  | ------------------- |  | -------------------
|Cash paid during the years ended December 31, 2009 and 2008 for: |  | 2009                |  | 2008               
|                                                                 |  |                     |  |                    
|Interest                                                         |  | $                 - |  | $                 -
|                                                                 |  |                     |  |                    
|Income taxes                                                     |  | $                 - |  | $                 -



During the year ended December 31, 2009:

The Company issued 700,000 restricted common shares with a fair value of $49,000 for prepaid consulting service agreements.



During the year ended December 31, 2009, the Company granted 3,900,000 stock options to related party consultants and these options were immediately exercised at prices between $0.02 - $0.04 per share to satisfy

debts to these  related parties in the amount of $109,250.



-40-

NOTE 11    SUPPLEMENTAL CASH FLOW INFORMATION AND NON-CASH INVESTING AND FINANCING ACTIVITIES (continued)



During the year ended December 31, 2008:

The Company issued 30,000 restricted common shares valued at $ 3,300 to a Director

The Company issued 25,000 restricted common shares valued at $ 3,500 to a Consultant.

The Company issued 25,000 restricted common shares valued at $ 1,000 to a Director

The Company also received proceeds on the exercise of 845,730 stock options totalling $85,573.

NOTE 12    SUBSEQUENT EVENTS EVALUATED TO MARCH 31, 2010



In January, 2010, the Company issued a total of 515,000 common shares pursuant to the exercise of options under the Companys 2009 Stock Incentive and Option Plan at $0.04 per share to satisfy debt to related parties in the amount of 20,600.



On October 29, 2009, the Company signed an agreement to acquire 32 BLM gold mineral lease claims in the newly discovered Long Canyon Trend of east central Nevada. Subsequent to December 31, 2009, management decided not to proceed with this acquisition and signed a dissolution agreement in March, 2010. The $3,076 advanced was refunded to the Company.

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE



There have been no disagreements with Golden Spirit Enterprises Ltd.'s auditors since formation of the company that require disclosure pursuant to Item 304 of Regulation S-B.



-41-


ITEM 9A.    CONTROLS AND PROCEDURES EVALUATION OF
DISCLOSURE CONTROLS AND PROCEDURES



Disclosure Controls and Procedures



We maintain a system of internal and disclosure controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported on a timely basis, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.



Our management, under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) or 15d-15(e)) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this Annual Report. Based on such evaluation, our Chief Executive Officer and our Chief Financial Officer they have concluded that, as of the evaluation date, our disclosure controls and procedures are effective in alerting them on a timely basis to material information relating to us required to be included in our reports filed or submitted under the Exchange Act.



Internal Controls Over Financial Reporting



Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our management, including our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our internal control over financial reporting based on criteria established in the framework in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2007. Further, this evaluation did not identify any significant changes to our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.



Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.



This Annual Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Managements report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only managements report in this Annual Report.



-42-





Changes In Internal Controls



No changes in the Company's internal controls over financial reporting occurred during the year ended December 31, 2009/8 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.



Code of Ethics



We intend to adopt a code of ethics in 2010 that applies to our principle executive officer, principal financial officer, principle accounting officer or controller, other persons performing similar functions.  We intend to post the text of our code of ethics on our website in connection with our "Investor Relations" materials.  In addition, we intend to promptly disclose (1) the nature of any amendment to our code of ethics that applies to our principle executive officer principal  financial officer, principle accounting officer or controller, other persons  performing similar functions (2) the nature of any wavier, including an implicit wavier, from a provision of our code of ethics that is granted to one of these specific officers, the name of such person who is granted the waiver and the date of the waiver on our web site in the future.



We do not currently have a code of ethics as this is a new regulatory requirement and we are examining the various form and contents of other companies written code of ethics, discussing the merits and meaning of a code of ethics to determine the best form for our Company.

ITEM 9B.    OTHER INFORMATION



Not applicable.

-43-

PART III

ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE



Executive Officers and Directors. We are dependent on the efforts and abilities of certain of our senior management.  The interruption of the services of key management could have a material adverse effect on our operations, profits and future development, if suitable replacements are not promptly obtained. We anticipate that we will enter into employment agreements with each of our key executives; however, no assurance can be given that each executive will remain with us during or after the term of his or her employment agreement. In addition, our success depends, in part, upon our ability to attract and retain other talented personnel. Although we believe that our relations with our personnel are good and that we will continue to be successful in attracting and retaining qualified personnel, there can be no assurance that we will be able to continue to do so. Our officers and directors will hold office until their resignation or removal.



Our directors and principal executive officers are as specified on the following table:



Name and Address             Age            Position

Date of Appointment

----------------------------------------------------------------------------------------------------------------------------



Christopher Scheive           47

President & Director & CEO

November 18, 2008





Jaclyn Cruz

34

Secretary, Treasurer

August 18, 2008

& Director  & CFO



The chart above specifies Golden Spirit Enterprises Ltd.s current officers and directors.



All directors of the Company hold office until the next annual meeting or until their successors have been elected and qualified.  All officers serve at the discretion of the Board of Directors.



There are no familial relationships between our officers and directors.



Section 16(a) Beneficial Ownership Reporting Compliance. Not all of our officers, directors, and principal shareholders have filed all reports required to be filed by those persons on, respectively, a Form 3 (Initial Statement of Beneficial Ownership of Securities), a Form 4 (Statement of Changes of Beneficial Ownership of Securities), or a Form 5 (Annual Statement of Beneficial Ownership of Securities).

-44-

ITEM 11.    EXECUTIVE COMPENSATION



Directors' Compensation: A total of $2,354 (2008-$4,300) was paid to two directors in cash for the year ended December 31, 2009.



Stock-based Compensation. During the year ended December 31, 2009, $Nil (2008-$Nil) in stock-based compensation was recorded in our financial statements.  Stock-based compensation is an estimate of the intrinsic value placed in respect to stock options granted to officers, directors, employees and an estimate of the fair value of stock options granted to consultants. The Company accounts for all compensation related to stock, options or warrants using a fair value based method whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. The Company uses the Black-Scholes pricing model to calculate the fair value of options and warrants issued to both employees and non-employees. Stock issued for compensation is valued using the market price of the stock on the date of the related agreement. We do expect further stock-based compensation in 2010. In the instance that incentive stock options are granted and immediately exercised  to satisfy debts to related parties, the Company,  Accordingly, records no further compensation expense.



ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS



The following table sets forth certain information regarding the beneficial ownership of our common stock as of December 31, 2009, by each person or entity known by us to be the beneficial owner of more than 5% of the outstanding shares of common stock, each of our directors and named executive officers, and all of our directors and executive officers as a group.









Name of

Amount & Nature of

Percent of Class

Title of Class

Beneficial Owner

Beneficial Owner

Common Stock

--------------------------------------------------------------------------------------------------------------------------------------------

Common Stock

CEDE & Co. (1)



21,178,911

90.35 %



The Depository Trust Co.



P.O. Box 222 Bowling Green Station



New York, New York 10274



Christopher Scheive

400 Blvd. Thomas

-

0.00%

President /Director /CEO

Unit 400 Lachute, Quebec,

J8H 1V7





Jaclyn Cruz



P.O. Box 63

25,000

0.0011%

Sec,Treas/.Director/CFO

Farmingville, New York

11738







All directors and Officers as a group





25,000

0.0011%



(1) In 2008, we requested a listing of Non-Objecting Beneficial Owners, commonly referred to as a NOBO List. According to the NOBO List, there were no holders of more than 5% of our issued and outstanding shares.



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Security Ownership by Management.  As above, at December 31, 2009, our directors, Christopher Scheive owned Nil shares and Jaclyn Cruz owned 25,000 shares for and aggregate total of 25,000 shares or 0.0011% of the common stock outstanding.



Changes in Control.  Our management is not aware of any arrangements which may result in "changes in control" as that term is defined by the provisions of Item 403(c) of Regulation S-B.



ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
DIRECTOR INDEPENDENCE



During 2009, companies controlled by significant shareholders earned $ 30,315 (2008 - $18,000) pursuant to deferred compensation services contracts (refer to Note 6).



During 2009, the Company paid $2,354 (2008 - $4,300) to two directors for management fees.



During 2009, the Company incurred expenses for office rent of $ 21,463 (2008 - $25,350) to a private company controlled by a significant shareholder.



At December 31, 2009, a total of $7,143 ( 2008 - $(32,747)) was due from/(to) to Organa Gardens International Inc., a public company with common directors and officers, for cash advances. This amount is unsecured, non-interest bearing and has no specified terms of repayment.



At December 31, 2009, a total of $72,668 (2008  ($31,331) was due from Legacy Wine & Spirits International Ltd. (Legacy), a company with common directors and officers, for cash advances. This amount is unsecured, non-interest bearing and has no specified terms of repayment.



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The following amounts are due to related parties at:

|                         |                        |                  
|------------------------ | ---------------------- | -----------------
|                         | December 31, 2009      | December 31, 2008
|                         |                        |                  
|Significant shareholders | $              227,837 | $         248,733

All related party transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.



ITEM 14.    PRINCIPAL ACCOUNTING FEES AND SERVICES

1. Audit Fees: Aggregate fees billed for each of the last two (2) fiscal years for professional services rendered by the principal accountant for the audit of the annual financial statements and review of financial statements included on Form 10-K:



2008: $27,500

2009: $28,000



2. Audit-Related Fees: Aggregate fees billed in each of the last two (2) fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of the financial statements and are not reported previously.



2008: $0

2009: $0



Tax Fees: Aggregate fees billed in each of the last two (2) fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning.



2008: $0

2009: $0



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4. All Other Fees: Aggregate fees billed in each of the last two (2) fiscal years for products and services provided by the principal accountant, other than the services previously reported.



2008: $0

2009: $0



5. Audit Committee Pre-Approval Procedures. The Board of Directors has not, to date, appointed an Audit Committee.

PART IV

ITEM 15.    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES



Exhibit 31.1 - Section 906 Certification of Periodic Report of the Chief Executive Officer





Exhibit 31.2 - Section 906 Certification of Periodic Report of the Chief Financial Officer





Exhibit 32.3 - Section 302 Certification of Periodic Report of the Chief Executive Officer





Exhibit 32.4 - Section 302 Certification of Periodic Report of the Chief Financial Officer





b) Form 8-K:



8-K filed November 17, 2009 item 1.01: with respect to a material definitive agreement.



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SIGNATURES





In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this amended report to be signed on its behalf by the undersigned, thereunto duly authorized, on April 12, 2009.



Golden Spirit Enterprises Ltd.,

a Delaware corporation



By:

/s/: Christopher Scheive

-------------

Christopher Scheive

Its:

Director and President







In accordance with the Exchange Act, this amended report has been signed below

by the following persons on behalf of the registrant and in the capacities and

on the dates indicated.



/s/: Christopher Scheive

------------------------------------

Date: April 12, 2009

Christopher Scheive

President and a Director



By: /s/ Jaclyn Cruz

-------------------------------------



Date: April 12, 2009

Jaclyn Cruz, Director , Secretary & Treasurer

By: /s/ Jaclyn Cruz







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