UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                       Washington, D.C. 20549

                             FORM 10-KSB
[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the year ended December 31, 2004

[ ]Transition report Pursuant to Section 13 or 15(d) of the Exchange Act

                  Commission File Number: 333-79405
                         NATALMA INDUSTRIES, INC.
    ----------------------------------------------------------
         (Name of Small Business Issuer In Its Charter)

        Nevada                               88-0409369
 -------------------------------         ------------------
(State or other jurisdiction             (I.R.S. Employer
of incorporation or organization         Identification No.)

      1550 Ostler Court
   N. Vancouver, B.C., Canada                 V7G 2P1
---------------------------------------     -------------
(Address of principal executive offices)      (Zip Code)

                        (604) 924-8000
                 --------------------------------
                    (Issuer's Telephone Number)

Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Common Stock,
par value $0.001

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

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

We had no revenues for the fiscal year ended December 31, 2004. At December
31, 2004, 8,777,500 shares of our common stock were held by non-affiliates.
Our common stock is currently listed for quotation in the pink sheets under
the symbol NTAL; however, no active trading market has yet commenced. Issuer
had a total of 11,777,500 shares of Common Stock issued and outstanding at
December 31, 2004. Some exhibits required to be filed hereunder, are
incorporated herein by  reference to Issuer's original Form SB-2 Registration
Statement, which can be found on the SEC website at www.sec.gov under our SEC
File No. 333-79405.

Transitional Small Business Disclosure Format: Yes   No X

                                1
<PAGE>



                      Forward Looking Statements
                      --------------------------

In addition to historical information, this Annual Report on Form
10-KSB contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 relating to the
our future operations and prospects, including statements that
are based on current projections and expectations about the markets in
which we operate, and our Management's beliefs concerning future
performance and capital requirements based upon current available
information.  Such statements are based on Management's beliefs, as
well as assumptions made by and information currently available to
Management.  When used in this document, words like "may", "might",
"will", "expect", "anticipate", "believe", and similar expressions are
intended to identify forward looking statements.  Actual results could
differ materially from Management's current expectations.  For
example, there can be no assurance that additional capital will not be
required or that additional capital, if required, will be available on
reasonable terms, if at all, at such times and in such amounts as
we may need for continued business operations.




                        Available Information
                        ---------------------

Our Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB,
Current Reports on Form 8-K and all amendments to those reports that we
file with the Securities and Exchange Commission, or SEC, are available
at the SEC's public reference room at 450 Fifth Street, N.W., Washington,
D.C. 20549. The public may obtain information on the operation of the
public reference room by calling the SEC at 1-800-SEC-0330. The SEC
also maintains a website at www.sec.gov that contains reports, proxy
and information statements and other information regarding issuers
that file electronically with the SEC.






                                    2

<PAGE>








                             PART I
                             ======
Item 1. Business
----------------
General
-------
Natalma Industries, Inc. was incorporated in the State of Nevada on
July 9, 1998 and is engaged in the acquisition and exploration of
mining properties. Registrant is a relatively new company and, as such,
is considered to be a junior mining company. It is common practice in
the mining industry for a junior mining company to complete exploration
activities on a property to determine if any minerals exist. At such
time as mineralization is located, a junior mining company then
attempts to recruit a major mining company, with ample cash reserves
and equipment, to assist in the development of a property. As a junior
mining company, Registrant intends to conduct exploration activities on
its properties and, if warranted, will seek a major mining company to
joint venture in any development and/or production. However, Registrant
has not yet commenced any exploration activities and there is no
guarantee it will locate any mineralization on its properties or, if
mineralization is located in a quantity sufficient to warrant
development, there is no guarantee it will be able to recruit a major
mining company as a joint venture partner. Registrant has been seeking
to find a joint venture partner for its exploration program, however,
has not yet been successful in doing so. In the event Registrant is
unable to enter into a joint venture agreement with a major mining
company to assist in the development of its properties, as a junior
mining company with limited cash reserves, Registrant will likely be
required to raise additional monies, either through sales of its
equity securities or through loans from financial institutions or
third parties, prior to commencement of any development activities
on its properties.

Description of Mining Properties
--------------------------------
In December, 1998, Registrant entered into an Option to Purchase
Agreement with John Martin, an unrelated third party, to acquire
100% of the rights, titles and interests  in  and  to  a total
of 10  mining claims in the North Mt. Lorne Properties, Per 1-10
mineral claims, Grant No. YC08501-YC08510, in the Whitehorse
Mining  District,  Yukon Territory, Canada, in exchange for
$55,000 U.S. in cash and  500,000  shares  of Registrant's
restricted common  stock. On December 1, 1998, Mr. Martin obtained
an option to the same claims from Mr. Costas Takkas, an unrelated
third party.  The terms of the options are identical except Mr.
Martin received 500,000 shares of restricted common stock and
$5,000 for his assignment to Registrant. On March 16, 1999,
Registrant exercised its Option and acquired the mining claims.
Registrant also agreed to pay a 2% net smelter return, which
means 2% of the net proceeds from the sale of any minerals after
deducting the costs of extracting and smelting the minerals,
excluding any administrative or selling costs, to Mr. Martin,
which he, in turn, must pay to Mr. Takkas, on any and all minerals

                                 3
<PAGE>


located and produced on the properties. In addition, Registrant
was required to complete a minimum of $80,000 Cdn. Exploration and
development work on the properties on or before September 1, 1999;
however, since Registrant had not completed the exploration work on
the properties, this date was once again extended by a verbal
agreement between the parties to December 31, 2005.

The existing roads leading to the properties in the Yukon Territory
are rough-graded dirt and, during rainy weather, are sometimes
inaccessible or washed out.  To date, Registrant has not performed
any geological work on any of the claims, as it will not be able to
perform full exploration without the assistance of a major mining
company. Registrant is concentrating all of its current efforts on
finding a partner before the Option expires on December 31, 2005.

Historical Background of Whitehorse Mining District
----------------------------------------------------
There is no known history of any operations on our mining claims;
however, adjacent claims have been staked and excavated.

The  main rock units historically found in the area include
limestone, limestone conglomerate, black siltstone and several
phases of felsic to intermediate dykes cross-cutting the sedimentary
stratigraphy. Elevated gold and arsenic values obtained from the
mining  district occur proximal to felsic dykes. Highly anomalous
copper values were found in chalcopyrite/malachite samples taken
from a  garnet skarn outcrop in  the  area. Magnetic surveys have
revealed linear structures, possibly  magnetic dykes and/or sills,
which may be associated with skarn-type mineralization and/or
mesothermal gold-arsenic mineralization. Registrant does not know
if there is any mineralization on the properties.

Proposed Exploration Program
----------------------------
Previous exploration work on adjacent properties since 1959 has
indicated that mineral occurrences exist in the area of the
properties; however, further exploration is needed to determine what
amount of minerals, if any, exist on the properties and if any minerals
which are found can be economically extracted and profitably processed.
Registrant believes there are numerous valuable unexplored and
sometimes unclaimed prospects in the Whitehorse Mining District where
the properties are located.

Registrant's exploration program will be designed to economically
explore, evaluate and acquire properties which, in its opinion, may
merit exploration.

Registrant does not claim to have any mineralization or reserves
whatsoever at this time on any of its properties; however, between
1959 and 1980, adjacent claims were staked and excavated. Research
data reveals that in 1995, several rock samples were collected from
claims adjacent to Registrant's claims by Kennecott Canada, Hemlo

                                   4
<PAGE>

Gold Mines, Inc. and some individuals, which revealed gold
mineralization in the area. Based on this data, Registrant believes
there is a sufficient basis to engage in exploration activities, and
anticipates finding some possible gold reserves.

Environmental Regulations
-------------------------
Environmental laws and regulations relating to public lands in Canada
are expected  to  be  tightly  enforced. Registrant intends to explore
and, when required, develop its properties in strict compliance with
all environmental requirements applicable to the mineral processing and
mining industry. Registrant will secure all the necessary permits for
exploration and, if development is warranted on any property, will
file final Plans of Operation prior to the commencement of any mining
operations. Registrant anticipates no discharge of water into any
active stream, creek, river, lake or any other body of water regulated
by environmental law or regulation.  No significant endangered species
will be disturbed.  Re-contouring and re-vegetation of disturbed
surface areas will be completed pursuant to all Canadian provincial and
local legal requirements. Any portals, adits or shafts will be sealed
upon abandonment of a property.  It is difficult to estimate the cost
of compliance with environmental laws since the full nature and extent
of proposed activities cannot be determined until Registrant commences
operations and knows what that will involve from an environmental
standpoint.

Government Regulations
----------------------
Registrant will also be subject to all the laws, rules and regulations
which govern the mineral processing and mining industry in Canada.
Registrant intends to fully comply with all environmental, health and
safety laws, rules, regulations and statutes.

Specifically, the proposed exploration of the property will be governed
by the Yukon Quartz Mining Act. Under the Act the Governor in Council
makes regulations which prescribe operating conditions governing all
exploration programs. Registrant ill be required to notify the Chief of
Mining Land Use of its exploration plan to ensure compliance.
Registrant intends to fully determine and comply with all rules and
regulations governing its operations prior to commencement of same.

Employees and Employment Agreements
-----------------------------------
At present, Registrant has no employees, other than Derick Sinclair,
its President, Secretary, Treasurer and Chairman of the Board, who is
not presently compensated for  their services and do not have employment
agreementswith us. Initially, Registrant intends to use the services of
subcontractors for all exploration work on its properties. Registrant
does not presently have pension, health, annuity, insurance, stock
options, profit sharing or similar benefit plans; however, it may adopt
such plans in the future. There are presently no personal benefits
available to any officers, directors or employees.

                                      5
<PAGE>

Item 2. Properties
------------------
Registrant does not own any property other than the rights to the
mining claims disclosed above in Item 1. Registrant currently conducts
business operations from the home of its President and Chairman of the
Board, Mr. Derick Sinclair, in North Vancouver, B.C., Canada, on a
rent-free basis. Once Registrant begins its exploration and development
program on the mining claims, it intends to set up a remote office
trailer on or near the properties to conduct all business operations.

Item 3. Legal Proceedings
-------------------------
Registrant is not a party to any legal proceedings and is unaware
of any pending or threatened legal proceedings.

Item 4. Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------
There were no matters submitted for a vote to the security holders during
the three months ended December 31, 2004.

                             PART II
                             =======

Item 5. Market for Registrant's Common Stock and Related Stockholder
        Matters
 -------------------------------------------------------------------
Our Common Stock, par value $.001, is listed for quotation in the pink
sheets under the symbol NTAL; however, no active trading market in our
securities has yet commenced.

As of December 31, 2004 there were 26 holders of record of our Common
Stock.

A total of 3,000,000 shares are held by our officers and directors, all
of which are restricted securities, as that term is defined in Rule 144
of the Rules and Regulations of the Securities and Exchange Commission,
promulgated under the Act. Under Rule 144, such shares can only be
publicly sold, subject to volume restrictions and certain restrictions
on the manner of sale, commencing one year after their acquisition. A
total of 8,000,000 of the issued and outstanding shares were sold in a
public offering registered and qualified in the State of Nevada in 1998,
pursuant to an exemption provided by Regulation D, Rule 504. In addition,
in 2002, an additional 252,500 shares were sold to unrelated third parties
to pursuant to a Form-SB2 registration statement filed with the U.S.
Securities and Exchange Commission. These securities are unrestricted
securities, as that term is defined, and may be publicly sold at any time,
without restriction.

                                 6
<PAGE>

We have not paid any cash dividends since inception to the holders of
our Common Stock.  We currently intend to retain any earnings for
internal cash flow use.

At December 31, 2004, there were no equity compensation plans
approved or outstanding and no stock options granted or outstanding.

Item 6. Management's Discussion and Analysis of Financial Condition
        and Results of Operations
-------------------------------------------------------------------
Results of Operations
---------------------
We incurred net operating losses of $5,480 for the year ended December 31,
2004, as compared to net operating losses of $7,463 for the year ended
December 31, 2003. Total expenses for the year ended December 31, 2004 were
$5,480, consisting of $6,018 in professional fees and $2,736 in general
operating expenses, as compared to $7,806 in professional fees and $223 in
operating expenses for the year ended December 31, 2003. Interest income on
our cash in the bank for the year ended December 31, 2004 was $3,274, as
compared to $566 for the year ended December 31, 2003.

We commenced limited business operations; are still in the exploration stage
and, at December 31, 2004 and as of the date of the filing of this annual
report, have not yet realized any income.

Liquidity and Capital Resources
-------------------------------
We expect our current cash in the bank of $228,798 at December 31,
2004 and as of the date of the filing of this annual report to satisfy cash
requirements for business operations for at least the next 12 months without
having to raise additional funds or seek bank loans. We
are continuing our search for a joint venture partner to continue with the
exploration and development of our mining properties. As of the date of this
annual report, we have not yet generated any revenues.

Our continued operations are dependent upon our ability to generate
revenues from operations and/or obtain further financing, if and when
needed, through borrowing from banks or other lenders or equity
funding. There is no assurance that sufficient revenues can be
generated or that additional financing will be available, if and when
required, or on terms favorable to us. If we are unable to generate
sufficient revenues and/or obtain financing if and when needed, our
current business plans could fail.

We do not intend to purchase any significant property or equipment,
nor incur any significant changes in employees during the next 12 months.

                                   7
<PAGE>

Our auditors have expressed the opinion that in our current state,
there is substantial doubt about our ability to continue as a going
concern; however, they also advised that the going concern opinion is
expected to be alleviated once we have an established business, have
accomplished predictable levels of expenditure and have attained the
financing or income to support those expenditures for a period in excess
of one year.

No cash was generated from financing activities during the year ended
December 31, 2004.

We anticipate no material commitments for capital expenditures
in the near term.  Management is not aware of any trend in its industry
or capital resources, which may have an impact on its income, revenue or
income from operations.

Item 7. Financial Statements.
-----------------------------
Following are our audited financial statements for the year ended  December
31, 2004.















                                   8

<PAGE>











                       NATALMA INDUSTRIES, INC.

                     Audited Financial Statements

                      December 31, 2004 and 2003












                       Bateman & Co., Inc., P.C.
                     Certified Public Accountants
                           5 Briardale Court
                        Houston, TX. 77027-2904
                           (713) 552-9800









                                   9

<PAGE>

BATEMAN & CO., INC., P.C.
Certified Public Accountants
5 Briardale Court
Houston, TX. 77027-2904
(713) 552-9800
Fax (713) 552-9700
www.batemanhouston.com

      REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To The Board of Directors and Stockholders
of Natalma Industries, Inc.

INDEPENDENT AUDITOR'S REPORT

We have audited the accompanying balance sheet of Natalma Industries,
Inc. (a Nevada corportion and an exploration stage company) as of
December 31, 2004 and the related statements of operations, stockholders'
equity, and cash flows for the year ended December 31, 2004 and and for
the period from inception, July 9, 1998 through December 31, 2004.
These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of
Natalma Industries, Inc. as of December 31, 2003 and for the year then
ended, and the cumulative statement of operations, stockholders' equity
and cash flows from inception, July 9, 1998, through December 31, 2003,
were audited by other auditors whose report dated February 6, 2004,
expressed an unqualified opinion on those statements. Our report on the
cumulative statements of operations, stockholders' equity, and cash
flows from inception, July 9, 1998, through December 31, 2004, insofar
as it relates to amounts for periods ending on or prior to December 31,
2003, is based solely on the report of the other auditors.

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. 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 audit
provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Natalma
Industries, Inc. (an exploration stage enterprise) as of December 31,
2004, and the results of its operations and its cash flows for the year
ended December 31, 2004 and for the period from inception, July 9, 1998,
through December 31, 2004, in conformity with accounting principles
generally accepted in the United States of America.

/s/ Bateman & Co., Inc., P.C.
    Houston, Texas
    April 12, 2005
                                 Member
            International Association of Practising Accountants
              Offices in Principal Cities Around The World

                                  10
<PAGE>

CLYDE BAILEY P.C.
Certified Public Accountant
10924 Vance Jackson #404
San Antonio, Texas 78230
(210) 699-1287(ofc.)
(888) 699-1287  (210) 691-2911 (fax)

Board of Directors
Natalma Industries, Inc.

                  INDEPENDENT AUDITOR'S REPORT

I have audited the accompanying balance sheet of Natalma Industries,
Inc. (Company) as of December 31, 2003 and the related statement of
operations, statement of stockholders' equity, and the statement of
cash flows for the years then ended December 31, 2003 and 2002 and
from July 9, 1998 (Initial) to December 31, 2003. These financial
statements are the responsibility of the Company's management. My
responsibility is to express an opinion on these statements based
on my audit.

I conducted my audit in accordance with generally accepted auditing
standards in the United States. Those standards require that I plan
and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a reasonable
basis for my opinion.

The Company is a development stage enterprise, as defined in
Financial Accounting Standards Board No. 7. The Company is devoting
all of its present efforts in securing and establishing a new
business, and its planned principal operations have not commenced,
and, accordingly, minimal revenue has been derived during the
organizational period.

In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of the
Company as of December 31, 2003 and the results of its operations
for the years then ended December 31, 2003 and 2002 and from July 9,
1998 ( Initial) to December 31, 2003, in accordance with accounting
principles generally accepted in the United States.

The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern.  The Company has limited
operations currently and suffered recurring losses from operations
that raise substantial doubt about the Company's ability to continue
as a going concern.  This is further explained in Note 8 in the
notes to financial statements.

/s/ Clyde Bailey P.C.
    San Antonio, Texas
    February 6, 2004                11


<TABLE><CAPTION>
                         NATALMA INDUSTRIES, INC.
                   (An Exploration Stage Enterprise)
                              Balance Sheets

A S S E T S
-----------
                                            December 31
                                       ----------------------
                                          2004        2003
                                       ----------   ---------
<S>                                      <C>          <C>
Current Assets
--------------
Cash                                   $ 228,798    $ 234,478
                                       ---------    ---------
Total Current Assets                     228,798      234,478

  Total Assets                         $ 228,798    $ 234,478
                                       =========    =========
L I A B I L I T I E S
---------------------
Current Liabilities
-------------------
Accounts Payable                           2,050        2,250
Officer Advances                               -            -
                                       ---------    ---------
Total Current Liabilities                  2,050        2,250
                                       ---------    ---------
  Total Liabilities                        2,050        2,250
                                       =========    =========
Commitments and Contingencies                  -           -

S T O C K H O L D E R S '    E Q U I T Y
----------------------------------------
Common Stock
  75,000,000 authorized shares,
  par value $.001
  11,777,500 shares issued and
  outstanding                             11,778       11,778
Additional Paid-in-Capital               331,152      331,152
Accumulated deficit during the
  exploration period                    (116,182)    (110,702)
                                       ---------    ---------
Total Stockholders' Equity               226,748      232,228
                                       ---------    ---------
Total Liabilities and Stockholders'
  Equity                               $ 228,798    $ 234,478
                                       =========    =========
</TABLE>
 The accompanying notes are an integral part of these financial statements.

                                  12
<PAGE>
<TABLE><CAPTION>
                        NATALMA INDUSTRIES, INC.
                   (An Exploration Stage Enterprise)
                        Statements of Operations
                                                              (From 7/9/98)
                                    For the Years Ended         (Initial)
                                        December 31           to December 31
                                      2004       2003             2004
                                   ---------------------      --------------
<S>                                  <C>         <C>                <C>
Revenues:
--------
Revenues                                  -           -                 -
                                   -----------  --------        ----------
Expenses:
--------
Professional Fees                       6,018      7,806            48,185
Other general and administrative
  expenses                              2,736        223            16,337
                                   -----------  --------        ----------
Total operating expenses                8,754      8,029            64,522
                                   -----------  --------        ----------
Income (loss) from operations          (8,754)    (8,029)          (64,522)
                                   -----------  --------        ----------
Other Income (Expense):
----------------------
Interest Income                         3,274        566             3,840
Expired Option to Purchase
  Mineral Property                        -            -            55,500
                                   -----------  --------        ----------
Total Other Income (Expense)            3,274        566             3,840
                                   -----------  --------        ----------
Income before Taxes on Income          (5,480)    (7,463)         (116,182)

Provision (credit) for Income Taxes:
-----------------------------------
Income Tax (benefit)                      -            -                -
                                   -----------  --------        ----------
Net Income (Loss)                  $   (5,480)  $ (7,463)       $ (116,182)
                                   ===========  ========        ==========
Basic and Diluted Earnings
Per Common Share                        (0.00)     (0.00)
                                   -----------  --------
Weighted Average number of
Common Shares used in per
share calculations                 11,777,500  11,777,500
                                   -----------  --------

</TABLE>
The accompanying notes are an integral part of these financial statements.


                                    13
<PAGE>
<TABLE><CAPTION>
                       NATALMA INDUSTRIES, INC.
                  (An Exploration Stage Enterprise)
                 Statements of  Stockholders' Equity

                                        Accumulated
                                          Deficit
                      $.001   Paid-In   During the         Stockholders'
            Shares  Par Value Capital  Exploration Period     Equity
            ------  --------- ------- -------------------  ------------
<S>           <C>      <C>      <C>           <C>               <C>
Balance,
July 9, 1998
(Inception)       -   $    -   $    -     $      -           $      -

Issuance of
Common
Stock     3,000,000    3,000      -            -              3,000
Net Income
(Loss)          -        -        -            -                  -
          ---------  --------  -------   ----------         --------
Balance,
December
31, 1998  3,000,000    3,000      -            -              3,000
Issuance of
Common
Stock     8,500,000    8,500     72,000        -             80,500

Expenses
for stock
offering        -        -       18,070        -            (18,070)
Net Income
(Loss)          -        -        -         (57,849)        (57,849)
          ---------  --------  --------   ----------         --------
Balance
December 31,
1999     11,500,000   11,500     53,930     (57,849)          7,581
         ----------  --------  --------   ----------         --------
Net Income
(Loss)          -         -       -          (1,691)         (1,691)
          ---------  -------    -------    ----------        --------
Balance
December 31,
2000     11,500,000   11,500     53,930     (59,540)          5,890
          ---------  --------  --------   ----------         --------
Net Income
(Loss)          -         -        -         (9,690)         (9,690)
          ---------  --------  --------   ----------         --------
Balance
December 31,
2001     11,500,000   11,500     53,930     (69,230)         (3,800)
         ----------  --------  --------   ----------         --------
Issuance of
Common
Stock       252,500      253    252,247           -         252,500

Expenses of
stock
offering     25,000       25     24,975           -          25,000
Net Income
(Loss)          -         -        -        (34,009)        (34,009)
          ---------  --------  --------   ----------         --------
Balance,
December
31, 2002  11,777,500   11,778   331,152     (103,239)        239,691

Net Income
(Loss)          -         -        -         (7,463)         (7,463)
          ---------  --------  --------   ----------       --------
Balance,
December
31, 2003 11,777,500   11,778   331,152     (110,702)        232,228
         ----------  --------  --------    ---------       --------
Net Income
(Loss)          -         -        -         (5,480)         (5,480)
          ---------  --------  --------   ----------       --------
Balance,
December
31, 2004 11,777,500   11,778   331,152     (116,182)        226,748
         ==========  =======   ========   =========        =========
</TABLE>
The accompanying notes are an integral part of these financial statements.

                                   14
<PAGE>

<TABLE><CAPTION>
                           NATALMA INDUSTRIES, INC.
                        (An Exploration Stage Enterprise)
                           Statements of Cash Flows
                                                          From
                                 For the Years Ended  7/9/98 (Initial)
                                      December 31     to December 31
                                  2004          2003        2004
                                 ----------------------------------

                               <c>          <c>          <c>
Cash Flows from Operating Activities:
-------------------------------------
     Net Income (Loss)           $ (5,480)      (7,463)  $(116,182)
  Changes in operating assets
  and liabilities:
     Stock Issued for Services
      and Mineral Option                -           -        3,500
     Increase(Decrease)in
      Accounts Payable                (200)        500       6,250
                                 ----------------------------------
Net Cash Flows from Operating
Activities                          (5,680)      (6,963)   (106,432)

Cash Flows from Investing Activities:
------------------------------------
                                        -           -            -
                                 ----------------------------------
Net Cash Flows from Investing
Activities                              -           -            -
                                 ----------------------------------
Cash Flows from Financing Activities:
-------------------------------------
 Payments on Stockholder Advance        -           -       (4,200)
 Proceeds from Issuance of Stock        -           -      357,500
 Costs Incurred to Raise Capital        -           -      (18,070)
                                  ----------------------------------
Net Cash Flows from
Financing Activities                    -           -      335,230
                                 ----------------------------------
Net Increase(Decrease) in Cash   $ (5,680)     (6,693)     228,798

Cash and equivalents,
 beginning of period              234,478     241,441            -
                                 ----------------------------------
Cash and equivalents, end
of period                        $228,798    $234,478     $228,798
                                 ==================================
Supplemental Disclosures:
 Cash Paid for interest         $      -     $     -        $     -
 Cash Paid for income taxes     $      -     $     -        $     -
 Stock Issued for Option to
    Purchase                           -           -       500,000
 Stock Issued for Services             -           -     3,025,000
</TABLE>

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

                                 15
<PAGE>
                       NATALMA INDUSTRIES, INC.
                    (A Development Stage Company)
                     NOTES TO FINANCIAL STATEMENTS

Note 1  -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
-----------------------------------------------------
Organization
-----------
Natalma Industries, Inc. ("the Company") was incorporated under the laws
of the State of Nevada on July 9, 1998 for the purpose to promote and
carry on any lawful business for which a corporation may be incorporated
under the laws of the State of Nevada. The company intends to engage in
the acquisition and exploration of mining properties.The Company intends
to conduct exploration activities on its properties and, if warranted,
will seek a major mining company to joint venture in any development
and/or production.  The Company is currently based in North Vancouver,
BC, Canada.

Exploration Stage Enterprise
----------------------------
The Company is an exploration stage enterprise, as defined in Financial
Accounting Standards Board No. 7 and Industry Guide 7 of the SEC
Industry Guide. The Company is devoting all of its present efforts in
securing and establishing a new business, and its planned principal
operations have not commenced, and, accordingly, no revenue has been
derived during the organizational period.

Accounting Method
-----------------
The accounting and reporting policies of the Company conform to U.S.
generally accepted accounting principles applicable to exploration stage
enterprises.  The functional currency is the U.S. Dollar, and the
financial statements are presented in U.S. Dollars.

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

Cash and Cash Equivalents
-------------------------
For purposes of the statement of cash flows, the Company considers all
highly liquid debt instruments purchased with a maturity of three months
or less to be cash equivalents.

Fair value of financial instruments and derivative financial instruments
------------------------------------------------------------------------
The carrying amounts of cash, receivables, and current liabilities
approximate fair value because of the short maturity of these items.
These fair value estimates are subjective in nature and involve
uncertainties and matters of significant judgment, and, therefore,
cannot be determined with precision.  Changes in assumptions could
significantly affect these estimates.  The Company does not hold or
issue financial instruments for trading purposes, nor does it utilize
derivative instruments in the management of foreign exchange, commodity
price or interest rate market risks.

Federal Income Tax
------------------
The Company will be taxed under Subchapter C of the Internal Revenue Code
for its US operations. The Company has adopted the provisions of Financial
Accounting Standards Board Statement No. 109, Accounting for Income Taxes.
The Company accounts for income taxes pursuant to the provisions of the
Financial Accounting Standards Board Statement No.  109, "Accounting for
Income Taxes", which requires an asset and liability approach to calculating
deferred income taxes.  The asset and liability approach requires the
recognition of deferred tax liabilities and assets for the expected future
tax consequences of temporary differences between the carrying amounts and
the tax basis of assets and liabilities.

                                 16
<PAGE>
                       NATALMA INDUSTRIES, INC.
                    (A Development Stage Company)
                     NOTES TO FINANCIAL STATEMENTS

Earnings per Common Share
-------------------------
The Company adopted Financial Accounting Standards (SFAS) No.  128,
"Earnings Per Share," which simplifies the computation of earnings per
share requiring the restatement of all prior periods.

Basic earnings per share are computed on the basis of the weighted
average number of common shares outstanding during each year.

Diluted earnings per share are computed on the basis of the weighted
average number of common shares and dilutive securities outstanding.
Dilutive securities having an anti-dilutive effect on diluted earnings
per share are excluded from the calculation.

Comprehensive Income
--------------------
Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting
Comprehensive Income," establishes standards for reporting and display
of comprehensive income, its components and accumulated balances.
Comprehensive income is defined to include all changes in equity except
those resulting from investments by owners and distributions to owners.
Among other disclosures, SFAS No.130 requires that all items that are
required to be recognized under current accounting standards as
components of comprehensive income be reported in a financial statement
that is displayed with the same prominence as other financial
statements. The Company does not have any assets requiring disclosure of
comprehensive income.

Segments of an Enterprise and Related Information
-------------------------------------------------
Statement of Financial Accounting Standards (SFAS) No. 131, Disclosures
about Segments of an Enterprise and Related Information, supersedes SFAS
No. 14, "Financial Reporting for Segments of a Business Enterprise."
SFAS 131 establishes standards for the way that public companies report
information about operating segments in annual financial statements and
requires reporting of selected information about operating segments in
interim financial statements issued to the public.  It also establishes
standards for disclosures regarding products and services, geographic
areas and major customers.  SFAS 131 defines operating segments as
components of a company about which separate financial information is
available that is evaluated regularly by the chief operating decision
maker in deciding how to allocate resources and in assessing
performance. The Company has evaluated this SFAS and does not believe it
is applicable at this time.

Recent Accounting Pronouncements
--------------------------------
In June 2001, the FASB issued SFAS No 143, "Accounting for Asset
Retirement Obligations".  SFAS No. 143 addresses financial accounting
and reporting for obligations  associated with the retirement of
tangible long-lived assets and the associated asset retirement
costs. SFAS No. 143 is effective for fiscal years beginning after
June 15, 2002.  The Company does not expect that there will be a
material impact from the  adoption  of SFAS  No. 143 on its financial
position, results of operations, or cash flows.

In  August  2001,  the  FASB  issued  SFAS  No.  144,  "Accounting
for the Impairment or Disposal of Long-Lived  Assets".  SFAS No. 144
addresses financial accounting and reporting for the impairment or
disposal of long-lived assets. It supersedes SFAS No. 121, "Accounting


                                   17
<PAGE>
                         NATALMA INDUSTRIES, INC.
                    (A Development Stage Company)
                     NOTES TO FINANCIAL STATEMENTS

the Impairment of Long-Lived Assets and for  Long-Lived  Assets To Be
Disposed  Of", and the  accounting  and  reporting provisions of
]Accounting  Principles Board Statement  ("APB") 30, "Reporting the
Results of  Operations  -  Reporting  the  Effects of Disposal of a
Segment of a Business,  and  Extraordinary,  Unusual and  Infrequently
Occurring  Events and Transactions",  for the  disposal  of a segment
of a  business.  The  Company is required to adopt SFAS No. 144 on
October 1, 2002.  The Company  does not expect that  the  adoption of
SFAS  No.  144  will  have  a  material  effect  on its financial
position, results of operations or cash flows.

In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB
Statements No. 4,44 and 64, Amendment of FASB Statement No. 13, and
Technical Corrections". SFAS  No. 145 requires the classification of
gains and losses from extinguishments of debt as extraordinary items
only if they meet certain criteria for such classification in APB No.
30,  "Reporting  the  Results of Operations,  Reporting  the Effects
of Disposal of a Segment of a Business,  and Extraordinary, Unusual,
and Infrequently Occurring Events and Transactions". Any gain or loss
on  extinguishments  of debt classified as an extraordinary item in
 prior  periods that does not meet the  criteria  must be  reclassified
to other income or expense.  These  provisions  are effective for fiscal
 years  beginning after  May  15,  2002.  Additionally,  SFAS No. 145
requires  sale-leaseback accounting for certain lease modifications that
have economic effects similar to sale-leaseback   transactions.   These
lease   provisions   are  effective  for transactions  occurring  after
May 15,  2002.  The  Company  does not expect the adoption of SFAS No.
145 to have a material effect on its financial position, results of
operations or cash flows.

In July 2002,  the FASB issued  SFAS No. 146 ,  "Accounting  for Costs
Associated  with Exit or Disposal  Activities".  SFAS No. 146 replaces
"Emerging Issues Task Force Issue No. 94-3,  "Liability  Recognition
for Certain  Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)".  SFAS
No. 146 requires companies to recognize  costs  associated  with  exit
or  disposal  activities  when they are incurred  rather than at the
date of a commitment  to an exit or disposal  plan. Examples of costs
covered by the standard  include lease  termination  costs and certain
employee  severance  costs that are  associated  with a  restructuring,
discontinued operation,  plant closing, or other exit or disposal
activity. SFAS No. 146 is to be applied  prospectively to exit or
disposal activities initiated after  December 31,  2002.  The Company
does not expect the adoption of SFAS No. 146 to have a material effect
on its financial position, results of operations or cash flows.

In December 2004, FASB Statement Number 123, "Share-Based Payment," was
revised.  This Statement requires a public entity to measure the cost of
employee services received in exchange for an award of equity instruments
based on the grant-date fair value of the award (with limited exceptions).
That cost will be recognized over the period during which an employee is
required to provide service in exchange for the award, the requisite
service period (usually the vesting period).  Previously, the intrinsic
value method could be used for such awards.  The effect of the
pronouncement on the Company's financial statements has not been
determined.  If it issues stock options in the future, it will be
required to follow this pronouncement.

Note 2 - FUTURE OPERATIONS
--------------------------
At December 31, 2004, the Company was not currently engaged in an
operating business and expects to incur development stage operating
losses for the next year to eighteen months.  It intends to rely on
officers and directors to perform essential functions without
compensation until a business operation can be commenced.  Management
believes the Company has sufficient capital to implement its business

                              18
<PAGE>

plans, and thus will continue as a going concern during this period
while the plans are implemented.

Note 3 - COMMON STOCK
---------------------
No common shares were issued in 2004 or 2003.

In 2002 the Company issued 252,500 shares of common stock to various
investors for cash totaling $252,247.

In 2002 the Company issued 25,000 shares of common stock for services.

In 1998 the Company issued 8,000,000 shares of common stock to various
investors for cash totaling $80,000.

The Company issued 500,000 shares of common stock at $.001 per share in
accordance with the Assignment of Option to Purchase Agreement of
Mineral Properties.

Note 4 - SUPPLEMENTARY OF SCHEDULE OF NONCASH ACTIVITIES
--------------------------------------------------------
No amounts were actually paid for either interest or income taxes during
the years ended December 31, 2004 and 2003.

During the year ended December 31, 1999, deferred offering cost of
$12,885 previously included in organization costs, were charged to
additional paid-in-capital in accordance with Staff Accounting Bulletin
5A.

On May 11, 1999 a related third party acquired a total of 500,000 shares
of the Company's common stock as partial payment for mineral properties.

Note 5 - MINERAL PROPERTIES
---------------------------
On December 11, 1998, the Company entered into an Option to Purchase
Agreement with an unrelated third party, ("Seller) wherein the Company
would acquire 100% of the rights, title and interests in and to a total
of 10 unpatented mining claims in the Whitehorse Mining District, Yukon
Territory, Canada.  The Agreement called for the Company to pay $55,000
U.S. in cash and to issue 500,000 shares of its common stock. On March
16, 1999, the Company consummated the Agreement by paying the Seller
$55,000 U.S. in cash. On May 11, 1999 the Company issued 500,000 shares
of its common stock. In addition, the Company has agreed to pay a 2% net
smelter reruns on all minerals produced by the properties to the Seller,
and to complete a minimum of $80,000, Canadian, exploration and
development work on the properties on or before September 1, 2002. The
Company has expensed the cost of the option when the payments were paid
in March 16, 1999.  The Company did not complete the minimum $80,000,
Canadian, exploration and development work on the properties before the
required date of September 1, 2004. The Company has received a verbal
extension to complete a minimum of $80,000, Canadian, exploration and
development work on the properties on or before December 31, 2005.

                             19
<PAGE>

Note 6 - RELATED PARTIES
------------------------
During 2002, the advance from a major shareholder of the Company that
totaled $4,200 was repaid.

Note 7 - INCOME TAXES
---------------------
The Company follows Statement of Financial Accounting Standards Number
109 (SFAS 109), "Accounting for Income Taxes." Deferred income taxes
reflect the net effect of (a) temporary difference between carrying
amounts of assets and liabilities for financial purposes and the amounts
used for income tax reporting purposes, and (b) net operating loss
carryforwards. No net provision for refundable Federal income tax has
been made in the accompanying statement of loss because no recoverable
taxes were paid previously. Similarly, no deferred tax asset attributable
to the net operating loss carryforward has been recognized, as it is not
deemed likely to be realized.

The provision for refundable Federal income tax consists of the following:
<TABLE><CAPTION>
                                            December 31  December 31
                                                2004         2003
                                            ------------------------
<S>                                             <C>           <C>
Refundable Federal income tax
  attributable to:
   Current opertions                         $ (1,800)    $ (2,500)
Less, Change in valuation allowance             1,800        2,500
                                            ------------------------
    Net refundable amount                           -            -
                                            ========================
</TABLE>

The cumulative tax effect at the expected rate of 34% of significant
items comprising our net deferred tax amount is as follows:
<TABLE><CAPTION>

                                            December 31  December 31
                                                2004         2003
                                            ------------------------
<S>                                             <C>           <C>
Deferred tax asset attributable to:
   Net operating loss carryover              $ 15,900    $  14,100
Less, Valuation allowance                     (15,900)     (14,100)
                                            ------------------------
    Net deferred tax asset                          -            -
                                            ========================
</TABLE>

At December 31, 2004, we had an unused net operating loss carryover
approximating $46,900 that is available to offset future taxable
income; it expires beginning in 2018.

                                20
<PAGE>

Item 8. Disagreements with Accountants on Accounting and
        Financial Disclosures
--------------------------------------------------------
There have been no disagreements with our accountants on accounting
or other financial disclosures. Our former accountant, Clyde Bailey, PC,
resigned in March 2005 for health and other reasons, at which time, we
appointed Bateman & Co., Inc., P.C., an independent certified
public accounting firm located in Houston, Texas, as our principal
accounting firm. Clyde Bailey's audit report on our financial statements
for the year ended December 31, 2003 did not contain any adverse opinion
or disclaimer of opinion, and was not modified as to uncertainty, audit
scope or accounting principles.

The decision to change auditors was recommended to the stockholders
and approved by the Board of Directors and by majority vote of the
stockholders, based solely on the reason that Clyde Bailey, PC,
resigned for health and other reasons. There have been no disagreements
with Clyde Bailey PC, on any matter of accounting principles or
practices, financial statement disclosure, or auditing scopes or
procedures.

Item 8a. Accounting Controls and Procedures
-------------------------------------------
Accounting Policies
-------------------
The financial statements included herein have been prepared pursuant
to the rules and regulations of the Securities and Exchange Commission.
Management believes the disclosures made are adequate to make the
information not misleading. The financial statements and accompanying
notes are prepared in accordance with generally accepted accounting
principles. Preparing financial statements requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of

revenues and expenses during the reporting period. These estimates and
assumptions are affected by Management's application of accounting
policies. These important accounting policies include the successful
efforts method of accounting for property and equipment, revenue
recognition, accounting for income taxes and foreign currency
translation.

Management maintains disclosure controls and procedures designed to
ensure that we are able to timely collect the information we are
required to disclose in our reports filed with the U.S. Securities
and Exchange Commission. Within the 90 days prior to the date of this
annual report, we performed an evaluation, under the supervision and
with the participation of our Management, of the effectiveness of the
design and operation of our disclosure controls and procedures pursuant
to Exchange Act Rule 13a-14. Based upon the evaluation, our Principal
Executive Officer and Principal Accounting Officer concluded that the
current disclosure controls are effective in timely alerting us to any
material information required to be included in our periodic SEC
filings.

                              21
<PAGE>

We also maintain a system of internal controls designed to provide
reasonable assurance that (i) transactions are executed in accordance
with Management's general and specific authorization; (ii) transactions
are recorded as necessary to permit preparation of financial statements
in conformity with generally accepted accounting principles and to
maintain accountability for assets; (ii) access to assets is permitted
only in accordance with Management's general or specific authorization;
and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is
taken with respect to any differences. We believe that our internal
controls are effective to provide reasonable assurance that our
financial statements are fairly presented in conformity with generally
accepted accounting principals. Since our most recent evaluation,
there have been no changes in our internal controls or in other
factors that could significantly affect our internal controls, nor
were any corrective actions required with regard to significant
deficiencies and material weaknesses.

                              PART III
                              ========

Item 9.  Directors, Executive Officers, Promoters and Control
         Persons; Compliance with Section 16(a) of the Exchange Act
-------------------------------------------------------------------
The following table sets forth the names, positions and ages of
the executive officers and directors. Directors are elected at
the annual meeting of stockholders and serve for one year or
until their successors are elected and qualify. Officers are
elected by the Board of Directors and their terms of office are,
except to the extent governed by employment contract, at the
discretion of the Board of Directors.

<TABLE><CAPTION>
Name                        Age     Position(s)
----                        ---     -----------
<S>                         <C>     <C>

Derick Sinclair             46       President, CEO, Secretary,
1550 Ostler Court                    Treasurer, CFO and Chairman
N. Vancouver, B.C.                   of the Board
Canada V7G 2P1

</TABLE>

(1) Each of the persons named above have held their offices/positions
since inception and are expected to hold said offices/positions
until the next annual meeting of stockholders.

                                 22
<PAGE>


Background of Officers and Directors
------------------------------------
Derick Sinclair has been the President,CEO, Secretary, Treasurer,
CFO and Chairman of the Board of Directors of Registrant since
inception. Since February 2004, he has been the Chief Financial
Officer of Image Innovations Holdings Inc., a Nevada corporation
publicly traded on the OTCBB under the symbol BNSE. From March
1996 to February 2004, he was the Chief Financial Officer and Vice
President for Navigata Communications Ltd/Westel Telecommunications/
RSL COM Canada, Inc. in Vancouver, B.C., a privately held Canadian
company. Since March 1997, he has also been President of Cosmah
Industries Inc., a privately-held exploratory mining company in
Vancouver, Canada. Since March 1996, he has also been a Director of
Fleet Management for BC Rail, Ltd., a privately-held freight train
service in Vancouver, B.C., Canada. He received a Bachelors Degree
in Commerce from the University of Windsor, Canada in 1982 and
became a member of the Institute of Chartered Accounts of British
Columbia in 1985. Mr. Sinclair devotes his time as required to the
business.

Section 16(a) Beneficial Ownership Reporting Compliance
-------------------------------------------------------
Section 16(a) of the Securities Exchange Act of 1934 requires our
directors and executive officers, and persons who own more than
ten percent of our Common Stock, to file with the Securities and
Exchange Commission initial reports of ownership and reports of
changes of ownership of our Common Stock. Officers, directors and
greater than ten percent stockholders are required by SEC regulation
to furnish us with copies of all Section 16(a) forms they file.

To the best of our knowledge, during the year ended December 31,
2004, all Section 16(a) filing requirements applicable to our officers,
directors and greater than ten percent beneficial owners were complied
with. In making these disclosures, we have relied solely on
a review of the copies of such reports furnished to us and written
representations by our directors, executive officers and greater
than ten percent stockholders.



                                  23

<PAGE>

Code of Ethics
--------------
At this time, we have not adopted a formal Code of Ethics that applies
to the Chief Executive Officer and Chief Financial Officer.  We expect
to adopt a formal Code of Ethics sometime during the current year. We
have, however, followed an informal Code of Ethics requiring Board of
Director approval of any material transaction involving our Chief
Executive Officer and/or Chief Financial Officer. We believe this
procedure reasonably deters material wrongdoing and promotes honest and
ethical conduct from our executive officers.

Item 10.  Executive Compensation
--------------------------------
Our officers and directors do not presently receive any cash or non-cash
compensation for their services and there are currently no plans to
implement any such compensation. They are, however, reimbursed for any
out-of-pocket expenses incurred on our behalf.

<TABLE><CAPTION>
-----------------------------------------------------------------
                  SUMMARY COMPENSATION TABLE
-----------------------------------------------------------------
                        Annual Compensation     Long-Term Comp.
                                       Other    Awards    Payouts
Name and                               Annual
Position(s)       Year  Salary  Bonus  Comp.
-----------------------------------------------------------------

                <c>  <c>      <c>    <c>       <c>      <c>
Derick Sinclair   2004  None    None   None      None      None
President, CEO,
CFO, Secretary,
Treasurer and
Director
-----------------------------------------------------------------
</TABLE>

Employment Agreements
---------------------
The officers and directors are not currently party to any employment
agreements and we do not presently have any pension, health, annuity,
insurance, stock options, profit sharing or similar benefit plans;
however, it may adopt such plans in the future. There are presently
no personal benefits available to directors, officers or employees.


ITEM 11. Security Ownership of Certain Beneficial Owners and
         Management
------------------------------------------------------------
The following table sets forth certain information regarding Common
Stock beneficially owned on the date of this filing for (i) each

                               24

<PAGE>


shareholder known by us to be the beneficial owner of five (5%)
percent or more of our issued and outstanding Common Stock, (ii)
each executive officers and directors, and (iii) all executive
officers and directors as a group. As of the date of the filing of
this registration statement, there were 1,800,000 shares of our
Common Stock issued and outstanding.

<TABLE><CAPTION>
Name and Address         Amount and Nature of
 of Beneficial                Beneficial            Percent of
   Owner                    Ownership (1)            Class
----------------        ---------------------       ----------
<S>                            <C>                    <C>

Derick Sinclair               3,000,000                25%
1550 Ostler Court
N. Vancouver, B.C.
Canada V7G 2P1

------------------------------------------------------------------------
Officers and Directors
as a Group (3 persons)        3,000,000                25%
</TABLE>

(1)  In general, a person is considered a beneficial owner of
a security if that person has or shares the power to vote or
direct the voting of such security, or the power to dispose of
such security. A person is also considered to be a beneficial
owner of any securities of which the person has the right to
acquire beneficial ownership within (60) days.

There are currently no options, warrants, rights or other securities
conversion privileges granted to our officers, directors or beneficial
owners and no plans to issue any such rights in the future.

Changes in Control
------------------
There are no arrangements known to us, the operation of which may at
a subsequent date result in a change of control of our company.

Item 12.  Certain Relationships and Related Transactions
--------------------------------------------------------
Registrant is currently using the home of its President and
CEO, Derick Sinclair, on a rent-free basis to conduct its
business operations. There is no written lease agreement or other
material terms or arrangements relating to our agreement with Mr.
Sinclair to use his home. Registrant does not have any other related
transactions and has not yet formulated a policy for the resolution
of any related transaction conflicts, should they arise.

                              25

<PAGE>


Item 13.  Exhibits and Reports on Form 8-K
------------------------------------------
(a) 1 & 2.  Financial Statements. See Item 7 in Part II; the
financial statements required to be filed herein are contained in
that section in their entirety.

(a) 3.  The following exhibits, marked with an asterisk and
required to be filed hereunder, are incorporated herein by
reference and can be found in their entirety in our original
Form 10-SB Registration Statement, filed under our SEC File No.
333-79405, on the SEC website at www.sec.gov:

<TABLE><CAPTION>

             <c>
Exhibit No.     Description
----------      -----------
* 3(i)          Articles of Incorporation
* 3(ii)         Bylaws
  31            Sec. 302 Certification of President/CEO and CFO
  32            Sec. 906 Certification of President/CEO and CFO
</TABLE>

(b) Our current report on Form 8-K, filed March 15, 2005, reflecting our
change in auditors, is incorporated here in by this reference and can be
found in its entirety on the SEC website at www.sec.gov under our SEC
File No. 333-79405.

Item 14. Principal Accountant Fees and Services
-----------------------------------------------
Audit Fees
----------
The aggregate fees billed for professional services rendered by our
principal accountant for the audit of our annual financial statements
for the fiscal years ended December 31, 2004 and 2003 were $1,500 per
year and the review for the financial statements included in our quarterly
reports on Form 10-QSB during the fiscal years ended December 31, 2004
and December 31, 2003 were $1,500 per year.

Audit Related Fees
------------------
We incurred no fees for the fiscal years ended December 31, 2004 and
2003 for assurance and related services by our principal accountant that
were reasonably related to the performance of the audit or review of our
financial statements, and not reported under Audit Fees above.

Tax Fees
--------
The aggregate fees billed for professional services rendered by our
principal accountant for tax compliance, tax advice, preparation and
filing of tax returns and tax planning for the fiscal years ended
December 31, 2004 and 2003 were nil.


                                 26
<PAGE>

All Other Fees
--------------
We incurred no other fees during the fiscal years ended December 31,
2004 and 2003 for products and services rendered by our principal
accountant.



                              SIGNATURES
                              ----------
Pursuant to the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.



                          NATALMA INDUSTRIES, INC., Registrant

Dated: April 15, 2005     By:/s/ Derick Sinclair
                          President, CEO, Treasurer, CFO,
                          Secretary and Director


Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of Registrant and in the capacities and on the dates
indicated:

/s/ Derick Sinclair,
--------------------------------------       Dated: April 15, 2005
By: Derick Sinclair, President, CEO,
Treasurer, CFO, Secretary and Director














                                    27
<PAGE>