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, 2000

                Commission File Number 333-79405


                     Natlma Industries, Inc.
        -----------------------------------------------
     (Exact name of registrant as specified in its charter)

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


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

Registrant's telephone number, including area code: (604) 990-2072

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 $.001 per share

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, and
(2) has been subject to such filing requirements for the past 90
days.  YES: [X] NO: [ ]

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. [X]

The number of shares outstanding of the registrant's common stock as
of December 31, 2000 was 11,500,000.

Registrant had no revenues for its year ended December 31, 2000.

Registrant's Post-Effective Amendment No. 1 to its Form SB-2/A Registration
Statement and all exhibits thereto, and Form 10QSB for the quarters ended
March 31, 2000, June 30, 2000, September 30, 2000, and March 31, 2001 are
incorporated herein by reference.



                               1
<PAGE>


                              PART I

ITEM 1.      DESCRIPTION OF BUSINESS

Natalma Industries, Inc. (Registrant) was incorporated in the State
of Nevada on July 9, 1998.  Registrant was formed to engage in the
exploration and development of mining properties.

In March 1999, Registrant acquired 10 mining claims in the
Whitehorse Mining District, Yukon Territory, Canada and is currently
in the planning stages of implementing an exploration program on the
claims. Presently, Registrant is only in the exploration stage and
cannot guarantee that any commercially viable mineralized deposits
exist, or will be found, on these properties until such time as
appropriate exploration work can be done on the properties and a
comprehensive economic evaluation based upon such work is concluded.

As of the date of this filing, Registrant is still in its
developmental stage and has not yet commenced full business
operations or realized any revenues.

On March 10, 1999, Registrant closed a public offering of 8,000,000
shares of our common stock, at a price of $.01 per share, under
Regulation D, Rule 504, made effective in the State of New York on
January 13, 1999 and raised a total of $80,000. Registrant also
filed a registration statement with the U.S. Securities and Exchange
Commission seeking authorization to sell a total of 350,000 shares
of its common stock, at an offering price of $1.00 per share, to
raise a total of $350,000.  The registration was was made effective
by the SEC in April, 2000; however, the offering period expired
before Registrant sold the shares and a Post-Effective Amendment was
recently filed requesting renewal of the offering period.

Registrant's Articles of Incorporation authorize issuance of up to
25,000,000 shares of common stock, par value $.001.

There have been no bankruptcy, receiverships, or similar proceedings
by or against Registrant.  There has been no material
reclassification, merger, consolidation, or purchase or sale of any
significant asset(s).

Registrant's administrative office is located at 1550 Ostler Court,
N. Vancouver, British Columbia,  Canada V7G 2P1, telephone (604)
929-6437 and its registered Statutory office  is  located  at 1495
Ridgeview Drive, Suite 220, Reno, Nevada 89509. Registrant's fiscal
year  end  is  December  31.

EMPLOYEES

As of December 31, 2000, Registrant had no employees other than its
officers and directors, none of which are represented by a
collective bargaining agreement.

ITEM 2.       DESCRIPTION OF PROPERTY

Registrant does not currently own or lease any property other than
the rights to exploration and development of the mining claims in
Canada and its proprietary data.



                                  2
<PAGE>


ITEM 3.        LEGAL PROCEEDINGS

Registrant is not a party to any legal proceedings.

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

Not applicable.

                                     PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Registrant's common stock is not currently listed or traded in any
public market.

To date, Registrant has issued 11,500,000 shares of its Common
Stock.These include the 3,000,000 shares issued to the founder of the
company,500,000 shares issued to an unrelated third party in connection with
the acquisition of the mineral properties and 8,000,000 shares which
were purchased and are held by unrelated third-party shareholders,
none of which hold more than 5% of the shares outstanding.

Registrant is not subject to outstanding options or warrants to
purchase, nor does it have securities convertible into common
equity.


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OR OPERATION

The following selected financial data was derived from Registrant's
audited Financial Statements. The information set forth below should
be read in conjunction with Registrant's Financial Statements and
related Notes included elsewhere in this report.

<TABLE>
<CAPTION>
Year Ended December 31, 2000
----------------------------
<S>                                                <C>
STATEMENT OF OPERATIONS DATA:

Net revenues                                           0

Net income (loss)                              $  (1,691)

Basic income (loss) per share                     (.0001)

Weighted average shares outstanding           11,500,000

</TABLE>




                                     3
<PAGE>


<TABLE>
<CAPTION>


BALANCE SHEET DATA:
<S>           						<C>

Cash and cash equivalents                      $   5,890
Mineral properties                                55,500
                                               ---------
Total assets                                   $  61,390

Long-term debt                                         0

Stockholders' equity                           $  61,390

</TABLE>

RESULTS OF OPERATIONS
---------------------

Registrant has not yet commenced full business operations or
realized any revenues.

Registrant had a net loss of $1,691 at December 31, 2000, resulting
in a net loss per share of $.0001.

General and administrative expenses at December 31, 2000 were
$1,691, consisting of professional fees in the amount of $650 and
operating expenses in the amount of $1,041.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

At December 31, 2000, Registrant's primary sources of liquidity
included cash and cash equivalents of $5,890, which was the balance
of proceeds raised in Registrant's initial public offering conducted
in the State of Nevada, pursuant to Rule 504 of Regulation D.

In order to continue its business operations and implement its
proposed exploration and development programs, Registrant is wholly
dependent upon receipt of the proceeds from the sale of additional
shares of its equity securities, as disclosed in the Post-Effective
Amendment to its Form SB-2 Registration Statement filed with the
Securities and Exchange Commission concurrently herewith. Registrant
is believes that receipt of the proceeds from the sale of the shares
described in the registration statement will be sufficient for near
term operating needs. The extent to which such sources will be
sufficient to meet Registrant's anticipated cash requirements is
subject to a number of uncertainties, the most important of which is
Registrant's ability to strictly adhere to the capital expenditure
projections in the registration statement.




                                4

<PAGE>


UNCERTAINTIES RELATING TO FORWARD-LOOKING STATEMENTS
----------------------------------------------------
Certain parts of this Form 10-K may contain "forward-looking
statements" within the meaning of the Securities Exchange Act of
1934, as amended, based on current management expectations. Actual
results could differ materially from those in the forward-looking
statements due to a number of uncertainties, including, but not
limited to, those discussed in this section. Factors that could
cause future results to differ from these expectations include
general economic conditions particularly related to
demand for Registrant's services; changes in business strategy;
competitive factors (including the introduction or enhancement of
competitive services); pricing pressures; changes in operating
expenses; inability to attract or retain consulting, sales and/or
development talent; changes in customer requirements; and/or
evolving industry standards.

ITEM 7.      FINANCIAL STATEMENTS

Registrant's financial statement for the year ended December 31,
2000, prepared and audited by Clyde Bailey, P.C., independent
chartered accountant is included herein in Part F/S.

ITEM 8.       CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

                           PART III

ITEM 9.      DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

The information required by this Item is incorporated herein by
reference to the information contained in Registrant's Post-
Effective Amendment to Form SB-2/A, filed concurrently herewith.

ITEM 10      EXECUTIVE COMPENSATION.

The information required by this Item is incorporated herein by
reference to the information contained in Registrant's Post-
Effective Amendment to Form SB-2/A, filed concurrently herewith.


ITEM 11.      SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.

The information required by this Item is incorporated herein by
reference to the information contained in Registrant's Post-
Effective Amendment to Form SB-2/A, filed concurrently herewith.


ITEM 12.      CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

There have been no actual or proposed transactions to which
Registrant was or is to be a party to in which any Director, Executive Officer,
nominee for election as Director, security holder, or any member of the
immediate family of any of the aforementioned had or is to have a direct
or indirect material interest.

                                       5
<PAGE>


ITEM 13.      EXHIBITS, LISTS AND REPORTS ON FORM 8-K.

(a) Financial Statements, Schedules and Exhibits

There are no exhibits filed herewith.  All exhibits required to be
filed are incorporated herein by reference to Registrant's Post-
Effective Amendment to Form SB-2/A, filed concurrently herewith.

(b) Registrant filed no current reports on Form 8-K during the last
quarter of its year ended December 31, 2000.






























                                     6



<PAGE>







                                PART F/S















                        Natalma Industries, Inc.


                      Audited Financial Statements

                      December 31, 2000 and 1999













                             Clyde Bailey, P.C.
                        Certified Public Accountant
                         10924 Vance Jackson #404
                         San Antonio, Texas 78230








                                       7


<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)

Member:
American Institute of CPA's
Texas Society of CPA's


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, 2000 and 1999 and the related statement
of operations, statement of stockholders' equity, and the statement
of cash flows for the year then ended December 31, 2000 and 1999.
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. 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.

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, 2000 and 1999 and the results of its
operations and its cash flows for the period then ended in
conformity with generally accepted accounting principles.


/s/  Clyde Bailey P.C.
San Antonio, Texas
February 17, 2001

                                   8

<PAGE>



                         NATALMA  INDUSTRIES,  INC.
                              BALANCE  SHEET
                     As of December 31, 2000 and 1999
<TABLE>
<CAPTION>
                                        2000            1999
                                        ----             ---

                               ASSETS
<S>                                   <C>                  <C>
Current Assets
--------------
   Cash. . . . . . . . . . . . . . .$        5,890       $ 10,158
                                    --------------       --------
Total Current Assets . . . . . . . .         5,890         10,158
Other Assets
------------
Mineral Properties . . . . . . . . .        55,500         55,500
                                    --------------       --------
------
Total Other Assets . . . . . . . . .        55,500         55,500
                                    --------------       --------
------
Total Assets . . . . . . . . . .            61,390         65,658
                                    ==============      =========

                            LIABILITIES
Current  Liabilities
--------------------
Accounts Payable . . . . . . . . . .             -          2,577
Officer Advances . . . . . . . . . .             -              -
                                    --------------       --------
------
Total Current Liabilities. . . . . .             -          2,577
                                    --------------       --------
------
Total Liabilities                                -          2,577
Commitments and Contingencies                    -            -

                        STOCKHOLDERS EQUITY

Common Stock                                11,500          11,500

25,000,000 authorized shares, par value $.001
11,500,000 shares issued and outstanding
Additional Paid-in-Capital . . . . . . . .  53,930          53,930
Accumulated Deficit during  the Development
Period . . . . . . . . . . . . . . . . . .  (4,040)         (2,349)
                                          --------          -------
------
Total Stockholders' Equity (Deficit) . . .  61,390          63,081
                                          --------          ------
Total liabilities and
stockholders' equity . . . . . . . . .    $ 61,390       $  65,658
                                          ========       =========
</TABLE>


The accompanying notes are integral part of the consolidated
financial statements.

                                       9
<PAGE>



<TABLE>
<CAPTION>

                             NATALMA  INDUSTRIES,  INC.
                               Statement of Operations
                               -----------------------


                                      _________________________________
                                            For the Years Ended
                                                December 31
                                     __________________________________
                                           2000	             1999
                                     =============        =============
<S>                                        <C>                  <C>
Revenues
Revenue . . . . . . . . . . . . . .  .$         -         $    -

Expenses
Professional Fees. . . . . . . . . . .            650          -
Operating expenses . . . . . . . . . .          1,041         2,349
                                       --------------      -----------
Total Expenses . . . . . . . . . . . .          1,691         2,349
Net Income before Taxes. . . . . . . .         (1,691)       (2,349)

Provision for Income Taxes
Income Tax Benefit . . . . . . . . . .              -
-
Net Income before  . . . . . . . . . .         (1,691)       (2,349)
                                       ==============      ==========

Basic and Diluted Earnings Per
Common Share . . . . . . . . . . . . .$       (0.0001)    $ (0.0002)
                                       --------------      ---------
Weighted Average number of Common
Shares used in per share calculations      11,500,000    11,500,000
                                       ==============    ===========
</TABLE>





The accompanying notes are integral part of the consolidated
financial statements.



                                         10
<PAGE>



<TABLE>
<CAPTION>
                           NATALMA  INDUSTRIES,  INC.
                      Statement of Stockholders' Equity
                          As at December 31, 2000


                             $0.001       Paid-in   Accumulated Stockholders'
                  Shares     Par Value    Capital      Deficit    Equity
-----------------------------------------------------------------------------
<S>                 <C>         <C>        <C>          <C>          <C>
Balance
January 1,
1999             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)             -          -              -       (2,349)      (2,349)
                ==========    ======      =======    ======      =======
Balance at
December
31, 1999        11,500,000    11,500       53,930    (2,349)      $63,081
                ----------    ------      -------    -------     --------
Net Income
(Loss)             -          -             -        (1,691)      (1,691)
                ----------    ------      -------    -------      ------
Balance at
December
31, 2000        11,500,000    11,500       53,930    (4,040)     $61,390
                ==========    ======      =======    =======     =======


</TABLE>









        The accompanying notes are integral part of the consolidated
        financial statements.



                                       11



<PAGE>




<TABLE>
<CAPTION>
                          NATALMA  INDUSTRIES, INC.
                          Statement of Cash Flows

                                         -----------------------------------
                                                 For the Years Ended
                                                     December 31
                                         -----------------------------------
                                                 2000	           1999
                                         -----------------------------------
<S>                                             <C>                  <C>
Cash Flows from
Operating Activities:
---------------------
Net Income (Loss) . . . . . . . . . . . .    $    (1,691)        $ (2,349)

Changes in operating assets and liabilities:
Organizational costs expensed
   under SOP 98-5    . . . . .  . . .                  -              125
Increase (Decrease) in Accounts Payable           (2,577)             400
                                             ------------        --------
Total Adjustments . . . . . . . . . .             (2,577)             525
                                             ------------        --------
Net cash Used in
Operating Activities  . . . . . . . .        $    (4,268)        $ (1,824)
                                             ------------        --------
Cash Flows from
Investing Activities
--------------------
Purchase of Mineral Properties                      -             (55,000)
                                             ------------        ---------
Net Cash Used in Investing Activities        $      -            $(55,000)
                                             ------------        ---------
Cash Flows from
Financing Activities
--------------------
Proceeds received from
stockholder advance. . . . . . . . . .             -             (14,483)
Proceeds received from
issuance of stock. . . . . . . . . . .             -              79,983
Costs incurred to raise capital  . . .             -              (3,008)
                                             -----------        ---------
Net Cash Provided by
Financing Activities                         $     -            $ 62,492
                                             -----------        ---------
Net Increase (Decrease)in Cash . . . .       $   (4,268)        $  5,668

Cash Balance, Begin Period . . . . . .           10,158            4,490
                                             -----------        --------
Cash Balance, End Period . . . . . . .       $    5,890         $ 10,158
                                             ===========        ========
Supplemental Disclosures:
Cash Paid for interest . . . . . . . .       $      -           $   -
Cash Paid for income taxes . . . . . .       $      -           $   -
Stock Issued for Option to Purchase  .              -               -
Stock Issued for Repayment of
Shareholder  . . . . . . . . . . . . .              -               -
</TABLE>

         The accompanying notes are integral part of the consolidated
          financial statements.

                                       12
<PAGE>



                        NATALMA INDUSTRIES, INC.
                     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
has a total of 25,000,000 authorized common shares with a par value
of $.001 per share and with 11,500,000 common shares issued and
outstanding as of December 31, 2000 and 1999.

Fixed Assets
The Company has no fixed assets at this time.

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.

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.

Accounting Method
The Company's financial statements are prepared using the accrual
method of accounting. Revenues are recognized when earned and
expenses when incurred. Fixed assets are stated at cost.
Depreciation and amortization using the straight-line method for
financial reporting purposes and accelerated methods for income tax
purposes.


                                  13

<PAGE>


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.

Employers' Disclosure about Pensions and Other Postretirement
Benefits
Statement of Financial Accounting Standards (SFAS) 132, "Employers'
Disclosure about Pensions and Other Postretirement Benefits,"
revises standards for disclosures regarding pensions and other
postretirement benefits. It also requires additional information on
changes in the benefit obligations and fair values of plan assets
that will facilitate financial analysis. This statement does not
change the measurement or recognition of the pension and other
postretirement plans. The financial statements are unaffected by
implementation of this new standard.

Accounting for Derivative Instruments and Hedging Activities
Statement of Financial Accounting Standards (SFAS) 133, "Accounting
for Derivative Instruments and Hedging Activities," establishes
accounting and reporting standards for derivative instruments, including
certain derivative instruments embedded in other contracts, (collectively
referred to as derivatives) and for hedging activities. It requires
that an entity recognize all derivatives as either assets or
liabilities in the statement of financial position and measure those
instruments at fair value. If certain conditions are met, a
derivative may be specifically designated as (a) a hedge of the
exposure to changes in the fair value of a recognized asset or
liability or an unrecognized firm commitment, (b) a hedge of the
exposure to variable cash flows of a forecasted transaction, or (c)


                             14
<PAGE>


a hedge in the foreign currency exposure of a net investment in a
foreign operation, an unrecognized firm commitment, an available-for
sale security, or a foreign-currency-denominated forecasted
transaction. Because the Company has no derivatives, this accounting
pronouncement has no effect on the Company's financial statements.

Fair Value of Financial Instruments
The Financial Accounting Standards Board ("FASB") Statement No. 107.
"Disclosure About Fair Value of Financial Instruments" is a part of
a continuing process by the FASB to improve information on financial
statements. The carrying amounts reported in the balance sheets for
the Company's assets and liabilities approximate their fair values
as of December 31, 2000 and 1999.

Note 2 - COMMON STOCK

The Company issued 8,500,000 shares of common stock to various
investors for cash totaling $80,500.

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 3 - SUPPLEMENTARY OF SCHEDULE OF NONCASH ACTIVITIES

No amounts were actually paid for either interest or income taxes
during the years ender December 31, 2000 and 1999.

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

Note 4 - 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, 2001.


Note 5 - ORGANIZATION COSTS

The Company has incurred legal, accounting and other formation
costs. During the year ended December 31, 1999,  these costs were
charged to operations in accordance with the American Institute of
Certified Public Accountants' Statement of Position 98-5.  During


                               15
<PAGE>




the year ended December 31, 1998, the Company also incurred
$12,885 in expenses related to an offering of shares of its common
stock.  At December 31, 1999, these costs were included in
organization costs, as no proceeds had yet been received from the
offering. During the year ended December 31, 1999, these expenses,
plus additional offering costs incurred, were charged against the
gross proceeds received from the offering in accordance with the
Securities and Exchange Commission's Staff Accounting Bulletin 5A.


Note 6 - RELATED PARTIES

During 1999, the Company paid the major shareholder a total of
$14,483, which had been advanced previously to the Company.

Note 7 - INCOME TAXES

Deferred tax benefits and liabilities are calculated using enacted
tax rates in effect for the year in which the differences are
expected to reverse.  The following is a schedule of the composition
of the provision for income taxes:
<TABLE><CAPTION>

                                     2000	         1999
<S>                                   <C>                <C>
Current	                            $	-0-	       $  -0-
Deferred			        -0-	          -0-
                                    --------           --------
  	Total provisions for
        income taxes		    $	-0- 	       $  -0-
                                    ========           ========
</TABLE>

Deferred federal income taxes consist of future tax benefits and
liabilities attributed to:

<TABLE><CAPTION>

 			             2000     	        1999

<S>                                       <C>            <C>
Net operating loss carryforward      $    575        	$  799
Valuation allowance	                 (575)            (799)
                                     ----------       --------
  	Total provisions for
        income taxes	             $	   -0-	        $  -0-
                                     ==========       ========
</TABLE>

The net operating loss carryforward will expire if not applied by
2020.


Note 8 - SUBSEQUENT EVENTS

There were no other material subsequent events that have occurred
since the balance sheet date that warrants disclosure in these
financial statements.



                         	16
<PAGE>



                              SIGNATURES
                              ----------


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



                                NATALMA INDUSTRIES, INC., Registrant

Dated: 	June 30, 2001           By:/s/ Derick Sinclair
                                President, Secretary, Treasurer
                                and Director





In accordance with the Exchange Act, this report has been signed
below by the following persons on behalf of Registrant in the
capacities and on the dates indicated:


By: /s/ Derick Sinclair, President, Secretary, Treasurer and
Director

Date: June 30, 2001



By: /s/ Rex Pegg, Vice President

Date: June 30, 2001












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