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

                           FORM 10KSB/A
[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


                     Natalma 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 Form SB and all exhibits thereto, and Forms
10QSB for the quarters ended March 30, 2000, June 30, 2000 and
September 30, 2000 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 fiscal  year  end  is  December  31.

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.

Registrant's administrative office is located at 1550 Ostler
Court, N. Vancouver, British Columbia,  Canada V7G 2P1, telephone
(604) 929-6437, the home of its President, Derick Sinclair,
which it uses on a rent-free basis  and its registered statutory
office  is  located  at 1495 Ridgeview Drive, Suite 220, Reno,
Nevada 89509.


                                  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

There were no matters submitted to a vote of security holders
during the fourth quarter of the fiscal year ended December 31,
2000.

                         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 Registrant, 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 OF FINANCIAL
           CONDITION AND RESULTS OF OPERATIONS

Results of Operations
---------------------
Registrant has not yet commenced full business operations or
realized any revenues.

Registrant had a net loss of $12,683 at December 31,
2000, resulting in a net loss per share of $.0001.

General and administrative expenses at December 31, 2000 were
$12,683, consisting of professional fees in the amount
of $650; operating expenses in the amount of $1,041;  and
Impairment Loss of Long-Term Assets in the amount of $10,992,
resulting from an indication that the carrying amount of the
mineral property may not be recoverable.

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. 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.




                                3

<PAGE>


Unncertainties 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 6.  FINANCIAL STATEMENTS

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)                            $ (12,683)

Basic income (loss) per share                     (.00)

Weighted average shares outstanding            11,500,000

</TABLE>


<TABLE><CAPTION>

BALANCE SHEET DATA:
<S>     					    <C>
Cash and cash equivalents                      $   5,890
Mineral properties,  net of
 Impairment Loss                                  32,600
                                               ---------
Total assets                                $  38,490
Long-term debt                                         0

Stockholders' equity                        $  38,490

</TABLE>


 Please see Registrant's financial statement for the
years ended December 31, 2000 and 1999, prepared and audited by
Clyde Bailey, P.C., independent chartered accountant,
included herein.

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

None.


                               4
<PAGE>



                           PART III

ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

Each of our directors  is elected by the stockholders to a
term of one year and serves until  his or her successor is elected
and qualified. Each of our officers  is  elected  by the Board of
Directors to a term of one year and serves until his or her
successor is duly elected and qualified, or until he or she is
removed from office. The Board of Directors has no nominating,
auditing or compensation  committees.

The names, addresses, ages and positions of our present officers
and directors is set  forth  below:

<TABLE><CAPTION>
<S>                      <C>              <C>
Name and Address          Age            Position(s)
-----------------        -----           -------------
Derick Sinclair           45             President, Secretary,
1550 Ostler Court                        Treasurer and Chairman
N. Vancouver, B.C.                       of the Board
Canada V7G 2P1

Rex S. Pegg               49             Vice President of
1-410 Mahon Ave.                         Exploration
N. Vancouver, B.C.
Canada V7M 2R5
</TABLE>

The persons named above have  held their offices/positions
since inception of our Company and are expected to hold their
offices/positions until the next annual meeting of our stockholders.

Background of Officers and Directors
------------------------------------
Derick Sinclair has been the President, Secretary, Treasurer and
Chairman of the Board of Directors of our Company since inception.
Since March 1997, he has also been the President of Cosmah
Industries, Inc., a privately-held exploratory mining company in
Vancouver, Canada. Since March, 1996, he has also been the Chief
Financial Officer and Vice President for Westel
Telecommunications/RSL COM Canada, Inc. in  Vancouver, B.C. From
December, 1992 to March, 1996, he was Director of Fleet Management
for BC Rail, Ltd., a 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 our business.

Rex S. Pegg has been the Vice President of Exploration of the
Company since October 5, 1999.  Since April 1989, he has also
been an Independent Geologist/Consultant specializing in
exploration of mining properties. From April 1985 to April 1989,
he was an Exploration Geologist for British Petroleum-Canada.
He received a Bachelor of Science Geological Engineering
(Exploration Option) Degree from the University of Toronto,
Ontario, Canada in 1976.  Mr. Pegg will devote his time as
required to our business.

ITEM 10. EXECUTIVE  COMPENSATION

Neither of our officers or the director have been compensated for
their services and there are no plans to compensate them in the
near future, unless and until we begin to realize revenues and
become profitable in our business operations.


                               5
<PAGE>



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

The following table sets forth, as of the date of this prospectus,
the total number of shares owned beneficially by each of our
directors, officers and key employees, individually and as a group,
and the present owners of 5% or more of our total outstanding
shares. The table also reflects what such ownership will be
assuming completion of the sale of all shares in this offering,
which we can't guarantee.  The stockholder listed  below  has
direct ownership of his shares and possesses sole voting and
dispositive power with respect to the shares.
<TABLE><CAPTION>
<S>                       <C>         <C>                <C>
Name and Address . . . .  No. of      No. of       Percentage of
Beneficial . . . . . . .  Shares      Shares        of Ownership
Owner (1). . . . . . . .  Before      After        Before   After
                          Offering    Offering    Offering Offering
----------------          --------    --------    -----------------
Derick Sinclair. . . . . 3,000,000    3,000,000      26%     25%
1550 Ostler Court
N. Vancouver, B.C.
Canada V7G 2P1
-----------------
All Officers and
Directors as a Group
(one person) . . . . . .  3,000,000  3,000,000      26%     25%
</TABLE>

(1)     The  person  named  above  may  be deemed to be a parent and
promoter of our Company,  within the meaning of such terms under the
Securities Act of 1933, by virtue of his/its direct and indirect
stock holdings.  Mr. Sinclair and Mr. Pegg, Vice President of
Exploration are the only promoters of our Company.


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.


ITEM 13. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
         REPORTS ON FORM 8-K.

(a)     Registrant's financial statement for the years ended
        December 31, 2000 and 1999 are included herein.

(b)     No reports on Form 8-K have been filed during the
        fourth quarter of the fiscal year ended December 31, 2000.

(c)  The following exhibits, marked with an asterisk, and
        required to be included herein are incorporated by
        reference and can be found in Registrant's original
        Form SB-2 Registration Statement, filed on May 27, 1999.

<TABLE><CAPTION>
<S>                  <C>                                             <c>
Exhibit Number        Description                                   Page
--------------        -----------                                   ----
3(i)              *   Articles of Incorporation and amendments       -
3(ii)             *   Bylaws                                         -
10.1              *   Option to Purchase Agreement                   -
10.2              *   Assignment of Option to Purchase Agreement     -
10.3              *   Amendment to Assignment of Option to Purchase  -
23                    Consent of Accountant                          20


</TABLE>




























<PAGE>


















                        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



















                                       8




<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  and from July 9, 1998 (Initial) to December 31, 2000.
 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.

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, no 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, 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





                                   9

<PAGE>








<TABLE><CAPTION>

                         NATALMA  INDUSTRIES,  INC.
                   (A Development Stage Enterprise)
                              BALANCE  SHEET
                     As of December 31, 2000 and 1999

                                           2000         1999
                                           ----         ----
                               ASSETS
                               ------
<S>                                        <C>           <C>
Current Assets
--------------
   Cash. . . . . . . . . . . . . . .$    5,890       $  10,158
                                    ----------       ---------
Total Current Assets . . . . . . . .     5,890          10,158
Other Assets
------------
Mineral Properties,  net of
 Impairment Loss. . . . . . . . .       32,600          43,592
                                    ----------       ---------
Total Other Assets . . . . . . . . . 38,490          43,592
                                    ----------       ---------
Total Assets . . . . . . . . . .     38,490          53,750
                                    ==========       =========

                            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 . .. . . . . .  (26,940)         (14,257)
                                     --------         --------
Total Stockholders' Equity (Deficit) 38,490           51,173
                                     --------         --------
Total liabilities and
stockholders' equity . . . . . . . $ 38,490         $ 53,750
                                     ========         ========
</TABLE>


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

                                       10
<PAGE>




<TABLE><CAPTION>
                             NATALMA  INDUSTRIES,  INC.
                       (A Development Stage Enterprise)
                               Statement of Operations
                               -----------------------

                                 ----------------------   From 7/8/98
                                   For the Years Ended       (Initial)
                                        December 31              to
                                    2000         1999         12/31/00
                                  ----------------------      ------------
<S>                                    <C>         <C>           <C>
Revenues
Revenue . . . . . . . . . . . . . .   $    -    $     -       $   -

Expenses
Professional Fees. . . . . . . . . . .    650         -           650
Operating expenses . . . . . . . . . .  1,041     2,349         3,390
Impairment Loss of Long-Term Assets. . 10,992    10,992        22,900
                                      -------   -------        ------
Total Expenses . . . . . . . . . . . . 12,683    13,341        26,940
Net Income before Taxes. . . . . . . .(12,683)  (13,341)      (26,940)

Provision for Income Taxes
Income Tax Benefit . . . . . . . . . .      -         -           -
Net Income (Loss)  . . . . . . . . . .(12,683)  (13,341)      (26,940)

Basic and Diluted Earnings Per
Common Share . . . . . . . . . . . . .$ (0.00) $  (0.00)      $ (0.00)
                                      -------  --------       -------
Weighted Average number of Common
Shares used in per share
calculations                       11,500,000 11,500,000   11,500,000
                                   ========== ==========   ==========
</TABLE>











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





                                         11
<PAGE>




<TABLE><CAPTION>
                           NATALMA  INDUSTRIES,  INC.
                   (A Development Stage Enterprise
                      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
July 9,
1998                -         -            -            -         -

Issuance
of common
stock       3,000,000     3,000            -            -       3,000

Net Income
(Loss)                                               (916)       (616)
            ----------------------------------------------------------
Balance
December
31, 1999    3,000,000     3,000            -         (916)      2,384

Issuance
of Common
Stock       8,500,000     8,500       72,000            -      80,500

Expenses
for stock
offering           -          -      (18,070)           -     (18,070)

Net Income
(Loss)                                            (13,341)    (13,341)

           ==========================================================
Balance at
December
31, 1999  11,500,000     11,500       53,930      (14,257)     51,173
          -----------------------------------------------------------

Net Income
(Loss)                                            (12,683)    (12,683)
          ------------------------------------------------------------
Balance at
December
31, 2000  11,500,000     11,500       53,930      (26,940)     38,490

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


</TABLE>


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

                               12


<PAGE>



<TABLE><CAPTION>
                         NATALMA  INDUSTRIES, INC.
                  (A Development Stage Enterprise)
                          Statement of Cash Flows

                               ---------------------   From 7/8/98
                                For the Years Ended         (Initial)
                                    December 31                to
                               ---------------------        12/31/00
                                 2000        1999
                               ---------------------        ---------
<S>                               <C>         <C>             <C>
Cash Flows from
Operating Activities:
---------------------
Net Income (Loss)             $ (12,683)  $  (2,349)        $(26,940)

Changes in operating assets and
  liabilities:
  Organizational costs expensed
   under SOP 98-5                     -         125             -
  Impairment loss of Long-Term
   Assets                        10,992      10,992          22,900
Increase (Decrease) in
  Accounts Payable               (2,577)        400             -
                              ---------   ---------        --------
Total Adjustments             $  (8,415)  $  11,517        $ 22,900
                              ---------   ---------        --------
Net cash Used in
Operating Activities          $  (4,268)  $   9,168        $ (4,040)
                              ---------   ---------        --------
Cash Flows from
Investing Activities
--------------------
Purchase of Mineral Properties        -     (55,000)        (55,500)
                              ---------   ---------        --------
Net Cash Used in Investing
 Activities                   $       -   $ (55,000)       $(55,500)
                              ---------   ---------        --------
Cash Flows from
Financing Activities
--------------------
Payments on stockholder
  advance                    $       -   $ (14,483)        $    -
Proceeds from issuance
   of stock                          -      79,983           83,500
Costs incurred to raise
   capital                           -      (3,008)         (18,070)
                             ---------   ---------          --------
Net Cash Provided by
Financing Activities         $       -      62,492          $65,430
                             ---------   ---------          -------
Net Increase (Decrease)
   in Cash                   $  (4,268)  $  16,660          $ 5,890

Cash Balance, Begin Period      10,158       4,490              -
                             ---------   ---------          -------
Cash Balance, End Period     $   5,890   $  21,150          $ 5,890
                             =========   =========          =======
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.

                                    13
<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.

Development Stage Enterprise
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, no
revenue has been derived during the organizational period.

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.

                                     14

<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.









                                  15
<PAGE>






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) a
hedge of 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.

Impairment of Long-Lived Assets

The Company follows SFAS No. 121, "Accounting for Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed Of".  The Statement requires
that long-lived assets and certain identifiable intangible to be held and
used by an entity be reviewed for impairment whenever event of changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable.








                                    16

<PAGE>




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, 2002.

 The Company has recognized an impairment loss to income on the
mineral properties based on an impairment of 20% per year.  For the
years ended December 31, 2000 and 1999, an impairment loss of $10,992
per year.

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 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









                                   17
<PAGE>




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>

                                      <c>           <c>
                         		 		           2000	         1999
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>

                                    <c>             <c>
                         					         2000        	  1999

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 - GOING CONCERN
The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern, which contemplates
the realizations of assets and liquidation of liabilities in the normal
course of business.  However, the Company does not have significant cash
or other material assets, nor does it have an established source of
revenues sufficient to cover its operating costs and to allow it to
continue as a going concern.  The stockholders/officers and or directors
have committed to advancing operating costs of the Company interest free.

Note 9 - SUBSEQUENT EVENTS

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




                               18
<PAGE>










                               SIGNATURES
                               ----------


Pursuant to the requirements of Section 13 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:  December 1, 2001      By:/s/ Derick Sinclair
                              President, Secretary, Treasurer
                              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:


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

Date: December 1, 2001


By: /s/ Rex Pegg, Vice President

Date: December 1, 2001






















                                  19
<PAGE>