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, 2002
        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 Registrant's common stock as
of December 31, 2002 was 11,777,500. Registrant had no revenues
for the year ended December 31, 2002.

Registrant's common stock is listed on the OTCBB under the symbol
NTAL; however, as of the date of the filing of this Annual
Report, only minimal trading has commenced.

Registrant's Form SB-2/A and all exhibits thereto, and Form 10QSB
for the quarters ended March 30, 2002, June 30, 2002 and September
30, 2002 are incorporated herein by reference.

                               1
<PAGE>
               Forward-Looking Statements
               --------------------------
In addition to historical information, this Annual Report contains
forward-looking statements. These forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those reflected in these forward-
looking statements. Factors that might cause such a difference
include, but are not limited to, those discussed in the section
entitled Management's Discussion and Analysis of Financial
Position and Results of Operations.  Readers are cautioned not to
place undue reliance on these forward-looking statements, which
reflect management's opinions only as of the date hereof. Registrant
undertakes no obligation to revise or publicly release the results
of any revision to these forward-looking statements. Readers should
carefully review the risk factors described in other documents the
Registrant files from time to time with the Securities and Exchange
Commission, including the Quarterly Reports on Form 10-Q to be
filed by the Registrant in the year 2003, under SEC File No.
333-79405.

                               PART I
                               ======
ITEM 1.  DESCRIPTION OF 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 our properties
and, if warranted, will seek a major mining company to joint venture in
any development and/or production. However, since Registrant is in the
early stages of exploration activities, 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. 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-

                               2
<PAGE>

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
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 yet raised the money to commence any on-site exploration
work on the properties, this date was extended by an amendment to the
Assignment of Option to Purchase Agreement between the parties to
September 1, 2003.

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.

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.


                             3
<PAGE>

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
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,

                                4
<PAGE>

its President, Secretary, Treasurer and Chairman of the Board, and Rex
Pegg, Vice President of Exploration, who are not presently
compensated for their services and do not have employment agreements
with 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.

ITEM 2.  DESCRIPTION OF PROPERTY

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 to a vote of security holders
during the fourth quarter of the fiscal year ended December 31,
2002.

                             PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Registrant's Common Stock was listed on the OTCBB under the symbol
NTAL in December 2002; however, only minimal trading has commenced.
The following table sets forth the approximate range of high and
low closing prices for the common stock during the last quarter of
2002, when the stock became publicly listed. The quotations
presented reflect inter-dealer prices, without retail markup,
markdown, or commissions, and may not necessarily represent actual
transactions in the common stock.

                                  Closing Prices
                                  --------------
                                High            Low
                                ----             ---

2002     First Quarter          $  0            $  0
         Second Quarter         $  0            $  0
         Third Quarter          $  0            $  0
         Fourth Quarter         $.0104          $.0098

At December 31, 2002 and as of the date of the filing of this annual
report, there are approximately 31 equity security holders. This
number does not include shareholders whose stock is held through
securities position listings.

Registrant paid no dividends for the years ended December 31, 2002,
2001 and 2000. Payment of dividends is within the discretion of the
Board of Directors and there are no material restrictions that
limit the Company's ability to pay dividends on the Common Stock.
Registrant has adopted the policy to reinvest earnings to fund
future growth. Accordingly, Registrant has not paid dividends
and does not anticipate declaring dividends on its Common Stock
in the foreseeable future.

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 and,
therefore, has not yet realized any revenues.


                             5
<PAGE>


Registrant had a net loss of $34,009 at December 31, 2002,
resulting in a negligible net loss per share, as compared to
a net loss of $9,690 at December 31, 2001.

General and administrative expenses at December 31, 2002 were
$34,009, most of which constituted legal and professional fees and
expenses incurred in connection with the preparation and filing
of Registrant's Form SB-2 Post-Effective Amendment registration
statement with the Securities and Exchange Commission.

Liquidity and Capital Resources
-------------------------------
At December 31, 2002, Registrant's primary sources of liquidity
included cash and cash equivalents in the amount of $241,441,
which was the balance of proceeds raised in Registrant's
public offering during 2002.

In December 2002, Registrant closed its public offering of
Common Stock, pursuant to a registration statement filed with
the U.S. Securities and Exchange commission on Form SB-2.
Registrant sold a total of 252,500 shares of Common Stock to
various investors for cash totaling $252,247.

Registrant believes that its existing cash balance and future
operating cash flows 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 generate sufficient cash flow to support
its business operations.

Plan of Operation
-----------------
Registrant intends to begin its exploration and development
program in early summer 2003, when the roads in the area leading
to the mining claims are cleared and passable.  Registrant is
currently studying data and doing research activities on the
mining claims and surrounding areas.


ITEM 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Registrant's financial statements for the year ended December
31, 2002, audited by Clyde Bailey, PC, an independent Certified
Public Accountant, is included herein.


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

There were no changes in and/or disagreements with accountants
on accounting and financial disclosures during the period covered
by this report.

                             6
<PAGE>



                           PART III

ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT.

Each of Registrant's 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 the 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 the current officers
and directors is set  forth  below:

<TABLE><CAPTION>
<S>                         <C>      <C>
Name and Address            Age      Position(s)
----------------           ----      -------------
Derick Sinclair             45       President, CEO, Secretary,
1550 Ostler Court                    Treasurer, CFO 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>

Background of Officers and Directors
------------------------------------
Derick Sinclair has been the President, Secretary, Treasurer and
Chairman of the Board of Directors of Registrant 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/Naigata
Communications, 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 the business.

Rex S. Pegg has been the Vice President of Exploration of Registrant
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 the business.

                                7

<PAGE>

ITEM 10. EXECUTIVE COMPENSATION

As of the date of the filing of this Annual Report, none of
Registrant's officers or directors have been compensated for their
services, either in cash or stock, and there are no plans to
compensate them in the near future, unless and until Registrant
begins to realize revenues and becomes profitable in its business
operations. As a result, no summary compensation tables have been
included herein.

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

The following table sets forth the total number of shares owned
beneficially by each of Registrant's directors, officers and key
employees, individually and as a group, and the present owners
of 5% or more of total outstanding shares. The stockholders listed
below have direct ownership of their shares and possess sole voting
and dispositive power with respect to the shares.
<TABLE><CAPTION>
<S>                     <C>                <C>
-------------------------------------------------------------------
Title of Class  Name and Address           Amount and
                of Beneficial              Nature of      Percent
                    Owner                  Beneficial     of Class
                                           Ownership
-------------------------------------------------------------------
Common Stock    Derick Sinclair           3,000,000         25%
                1550 Ostler Court
                N. Vancouver, B.C.
                Canada V7G 2P1
-------------------
All Officers and
Directors as a
Group (1 person)                          3,000,000         25%
</TABLE>

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, LISTS AND REPORTS ON FORM 8-K.

(a)     Registrant's financial statement for the year ended
        December 31, 2002 is included herein.

(b)     Registrant filed no reports on Form 8-K during the
        fourth quarter ended December 31, 2002

                             8
<PAGE>

The following exhibits are included herein, except for the
exhibits marked with an asterisk, which are incorporated herein
by reference and can be found in Registrant's original Form SB-2
Registration Statement, filed on May 27, 1999, under SEC File
Number 333-79405 at the U.S. Securities and Exchange Commission's
website (www.sec.gov).

<TABLE><CAPTION>
<S>                     <C>
Exhibit Number     Description
--------------     -----------
    3(i) *         Articles of Incorporation
    3(ii)*         Bylaws
   23              Consent of Accountant

</TABLE>


































                                  9
<PAGE>





















                      NATALMA INDUSTRIES, INC.





                    Audited Financial Statements
                    ----------------------------


                    December 31, 2002 and 2001













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









                                   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, 2002 and the related statement of
operations, statement of stockholders' equity, and the statement of
cash flows for the years then ended December 31, 2002 and 2001 and
from July 9, 1998 (Initial) to December 31, 2002. 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, 2002 and the results of its operations
for the years then ended December 31, 2002 and 2001 and from July 9,
1998 ( Initial) to December 31, 2002, 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 18, 2003                11
<PAGE>

<TABLE><CAPTION>
                             NATALMA INDUSTRIES, INC.
                        (An Exploration Stage Enterprise)
                                 Balance Sheet
                        As of December 31, 2002 and 2001

                                   A S S E T S
                                   -----------
                                                      2002            2001
                                                  -------------   ----------
<S>                                                      <C>          <C>

Current Assets
--------------
     Cash                                          $    241,441   $      400
                                                   ------------   ----------
          Total Current Assets                          241,441          400
                                                   ------------   ----------
          Total Assets                             $    241,441          400
                                                   ============   ==========

                              L I A B I L I T I E S
                              ---------------------
Current Liabilities
-------------------
     Accounts Payable                                     1,750            -
     Officer Advances                                         -        4,200
                                                    ------------  ----------
          Total Current Liabilities                       1,750        4,200
                                                    ------------  ----------
          Total Liabilities                               1,750        4,200

    Commitments and Contingencies                             -            -

                      S T O C K H O L D E R S '   E Q U I T Y
                      ---------------------------------------
Common Stock                                             11,778       11,500
     25,000,000 authorized shares, par value $.001
     11,777,500 shares issued and outstanding

Additional Paid-in-Capital                              331,152       53,930
Accumulated Deficit during the exploration period      (103,239)     (69,230)
                                                   ------------   ----------
          Total Stockholders' Equity (Deficit)          239,691       (3,800)
                                                   ------------   ----------
          Total Liabilities and Stockholders'
          Equity                                    $   241,441   $      400
                                                    ===========   ==========
</TABLE>
<FN>
The accompanying notes are integral part of the consolidated
financial statements.
</FN>
                                12

<PAGE>

<TABLE><CAPTION>
                           NATALMA INDUSTRIES, INC.
                       (An Exploration Stage Enterprise)
                            Statement of Operations

                                                        From 7/8/98
                                 For the Years Ended    (Initial)
                                     December 31            to
                                  2002       2001    December 31, 2002
                                 -------------------------------------

                               <c>          <c>          <c>
Revenues:
---------
     Revenues                    $     -     $     -   $        -
                                 -------------------------------------
          Total Revenues         $     -     $     -   $        -

Expenses:
---------
     Professional Fees             28,659      5,052        34,361
     Operating Expenses             5,350      4,638        13,378
     Option to Purchase
      Mineral Property                 -           -        55,500
                                 -------------------------------------
          Total Expenses           34,009      9,690       103,239
                                 -------------------------------------
Net Income before Taxes         $ (34,009)    (9,690)     (103,239)

Provision for Income Taxes:
---------------------------
     Income Tax Benefit                -         -              -
          Net Income (Loss)     $ (34,009)    (9,690)     (103,239)
                                ======================================
Basic and Diluted Earnings Per
Common Share                        (0.00)     (0.00)        (0.01)
                               ---------------------------------------
Weighted Average number of
Common Shares used in per
share calculations              11,777,500  11,500,000  11,500,000
                               =======================================
</TABLE>






<FN>
The accompanying notes are integral part of the consolidated
financial statements.
</FN>

                                  13
<PAGE>


<TABLE><CAPTION>
                           NATALMA INDUSTRIES, INC.
                      (An Exploration Stage Enterprise)
                       Statement of Stockholders' Equity
                           As of December 31, 2002

                                        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    -   $    -   $    -     $      -           $      -

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)
          ---------  --------  --------   ----------         --------



                                  14
<PAGE>





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
         ==========  =======   ========   =========        =========
</TABLE>






























                                    15
<PAGE>

<TABLE><CAPTION>
                           NATALMA INDUSTRIES, INC.
                        (An Exploration Stage Enterprise)
                           Statement of Cash Flows
                                                          From
                                 For the Years Ended  7/9/98 (Initial)
                                      December 31     to December 31
                                  2002         2001        2002
                                 ----------------------------------

                               <c>          <c>          <c>
Cash Flows from Operating Activities:
-------------------------------------
     Net Income (Loss)           $(34,009)    $(9,690)   $(103,239)
  Changes in operating assets
  and liabilities:
     Stock Issued for Services
      and Mineral Option                -           -        3,500
     Increase(Decrease)in
      Accounts Payable              1,750       4,200        5,950
                                 ----------------------------------
  Total Adjustments                 1,750       4,200        9,450
                                 ----------------------------------
Net Cash used in
Operating Activities              (32,259)     (5,490)     (93,789)

Cash Flows from Investing Activities:
------------------------------------
Purchase of Mineral Properties          -           -            -
                                 ----------------------------------
Net Cash Used in Investing
Activities                              -           -            -
                                 ----------------------------------
Cash Flows from Financing Activities:
-------------------------------------
 Payments on Stockholder Advance   (4,200)          -       (4,200)
 Proceeds from Issuance of Stock  277,500           -      357,500
 Costs Incurred to Raise Capital        -           -      (18,070)
                                  ----------------------------------
Net Cash Provided by
Financing Activities              273,300           -      335,230
                                 ----------------------------------
Net Increase(Decrease) in Cash    241,041      (5,490)     241,441
                                 ----------------------------------
Cash Balance, Begin Period            400       5,890            -
                                 ----------------------------------
Cash Balance, End Period         $241,441     $   400     $241,441
                                 ==================================
Supplemental Disclosures:
 Cash Paid for interest         $      -     $     -        $     -
 Cash Paid for income taxes     $      -     $     -        $     -
 Stock Issued for Option to
    Purchase                           -           -       500,000
 Stock Issued for Services         25,000          -     3,025,000
</TABLE>

                                     16
<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 shares with a par
value of $.001 per share and with 11,777,500 shares issued and
outstanding as of December 31, 2002 and 11,500 outstanding as of
December 31, 2001.

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

Exploration Stage Enterprise
----------------------------
The Company is an exploration stage enterprise, as defined in
Financial Accounting Standards Board No. 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.

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.

                              17
<PAGE>


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.

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

                            18
<PAGE>

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
for 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.

                            19
<PAGE>

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.

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, 2002 and 2001.

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 intangibles to be held and used by an entity be
reviewed for impairment whenever events of changes in circumstances
indicate that the carrying amount of an asset may not be recoverable.

Note 2 - COMMON STOCK
---------------------
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 3 - SUPPLEMENTARY OF SCHEDULE OF NONCASH ACTIVITIES
--------------------------------------------------------
No amounts were actually paid for either interest or income taxes
during the years ended December 31, 2002 and 2001.

                              20
<PAGE>

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 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 return 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 30, 2003. The Company expensed the cost
of the option when the payments were paid in March 16, 1999.

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 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 2002, the advance from a major shareholder of the Company
that totaled $4,200 was repaid.

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:
                              21
<PAGE>
                                           2002           2001
                                           ------------------------
                Current                   $  -0-         $-0-
                Deferred                     -0-          -0-
                                           ------------------------
  Total provisions for
     income taxes                         $  -0-         $-0-
                                           ------------------------

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

                                             2002        2001
                                           ------------------------
                Net operating loss
              carryforward                 $            $3,295
                Valuation allowance                     (3,295)

  Total provisions for
  income taxes                             $  -0-        $-0-


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 realization 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 that raise substantial doubt about the
Company's ability to continue as a going concern. The stockholders/
officers and or directors have committed to advancing operating costs
to 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.











                                22
<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: March 23, 2003     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:

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

Dated:  March 23, 2003


By: /s/ Rex S. Pegg, Vice President of Exploration

Dated:  March 23, 2003



         CERTIFICATION PURSUANT TO SECTION 302 OF THE ACT
         ------------------------------------------------

     I, Derick Sinclair, certify that:

1. I have reviewed this annual report on Form 10-KSB of Natalma
Industries, Inc.

2. Based on my knowledge, this annual report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect
to the period covered by this annual report.

3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all
material respects the financial condition, results of operations and
cash flows of Natalma Industries, Inc. as of, and for, the periods
presented in this annual report.



                                23
<PAGE>



4.  Natalma Industries, Inc.'s other certifying officers and I are
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for
Natalma Industries, Inc. and have:

     (a) designed such disclosure controls and procedures to
     ensure that material information relating to Synreal
     Services Corp., including its consolidated subsidiaries,
     is made known to us by others within those entities,
     particularly during the period in which this annual
     report is being prepared;

     (b) evaluated the effectiveness of Natalma Industries, Inc.'s
     disclosure controls and procedures as of a date within
     90 days prior to the filing date of this annual report
     (the "Evaluation Date"); and

     (c) presented in this annual report our conclusions
     about the effectiveness of the disclosure controls and
     procedures based on our evaluation as of the Evaluation Date;

5.  The other certifying officers and I have disclosed, based on our
most recent evaluation, to our auditors and the audit committee of our
Board of Directors (or persons performing the equivalent functions):

   (a) all significant deficiencies in the design or operation of
   internal controls which could adversely affect our ability to
   record, process, summarize and report financial data and have
   identified for our auditors any material weaknesses in internal
   controls; and

   (b) any fraud, whether or not material, that involves management
   or other employees who have a significant role in our internal
   controls.

6. The other certifying officers and I have indicated in this annual
report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies
and material weaknesses.

        March 23, 2003          /s/ Derick Sinclair
                              ----------------------------------------
                              Derick Sinclair, Chief Executive Officer,
                              Chief Financial Officer and Chairman
                              of the Board of Directors


                                   24

<PAGE>