----

----

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

|   | For the fiscal year ended March 31, 2011 |
|--------|------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Nevada                                         | 98-0195748             |
|------------------------------------------------|------------------------|
| (State or other jurisdiction of                | (I.R.S. Employer       |
| incorporation or organization)                 | Identification Number) |
|                                           |                   |
| 1200 G Street, NW, Suite 800                   |                   |
| Washington, District of Columbia               | 20005                  |
|  (Address of principal executive offices) |  (Zip Code)       |

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

----

----

----

|           | PAGE                                                                      |
|----------------|---------------------------------------------------------------------------|
|           |                                                                      |
| PART I         |                                                                      |   |
|           |                                                                      |   |
| Item 1.        | Business                                                                  | 3 |
|           |                                                                      |   |
| Item 2.        | Properties                                                                | 4 |
|           |                                                                      |   |
| Item 3.        | Legal Proceedings                                                         | 4 |
|           |                                                                      |   |
| PART II        |                                                                      |   |
|           |                                                                      |   |
| Item 5.        | Market for Registrant’s Common Equity, Related Stockholder          |   |
|           | Matters and Issuer Purchases of Equity Securities                         | 5 |
|           |                                                                      |   |
| Item 7.        | Management's Discussion and Analysis of Financial Condition               |   |
|           | and Results of Operations                                                 | 6 |
|           |                                                                      |   |
| Item 8.        | Financial Statements                                                      | 11 |
|           |                                                                      |   |
| Item 9.        | Changes in and Disagreements With Accountants on Accounting and           |   |
|           | Financial Disclosure                                                      | 27 |
|           |                                                                      |   |
| Item 9A.       | Controls and Procedures                                                   | 27 |
|           |                                                                      |   |
| Item 9B.       | Other Information                                                         | 27 |
|           |                                                                      |   |
| PART III       |                                                                      |   |
|           |                                                                      |   |
| Item 10.       | Directors, Executive Officers, and Corporate Governance                   | 28 |
|           |                                                                      |   |
| Item 11.       | Executive Compensation                                                    | 33 |
|           |                                                                      |   |
| Item 12.       | Security Ownership of Certain Beneficial Owners and Management            |   |
|           | and Related Stockholder Matters                                           | 35 |
|           |                                                                      |   |
| Item 13.       | Certain Relationships and Related Transactions, and Director Independence | 36 |
|           |                                                                      |   |
| Item 14.       | Principal Accounting Fees and Services                                    | 37 |
|           |                                                                      |   |
| PART IV        |                                                                      |   |
|           |                                                                      |   |
| Item 15.       | Exhibits, Financial Statement Schedules                                   | 38 |
|           |                                                                      |   |
| SIGNATURES     |                                                                      | 39 |
|           |                                                                      |   |
| EXHIBIT INDEX  |                                                                      | 40 |
|           |                                                                      |   |
| CERTIFICATIONS |                                                                      |   |

----

----

----

| Fiscal Year Ended March 31, 2011                         |   | High |   |   | Low    |   |
|----------------------------------------------------------|--------|------|--------|--------|--------|--------|
| First Quarter 2011 (April 1 – June 30, 2010)       |   | $    | 0.24   |   |   | $      | 0.07 |   |
| Second Quarter 2011 (July 1 – September 30, 2010)  |   | $    | 0.12   |   |   | $      | 0.04 |   |
| Third Quarter 2011 (October 1 – December 31, 2010) |   | $    | 0.16   |   |   | $      | 0.06 |   |
| Fourth Quarter 2011 (January 1 – March 31, 2011)   |   | $    | 0.19   |   |   | $      | 0.06 |   |

| Fiscal Year Ended March 31, 2010                         |   | High |   |   | Low    |   |
|----------------------------------------------------------|--------|------|--------|--------|--------|--------|
| First Quarter 2010 (April 1 – June 30, 2009)       |   | $    | 0.25   |   |   | $      | 0.13 |   |
| Second Quarter 2010 (July 1 – September 30, 2009)  |   | $    | 0.38   |   |   | $      | 0.19 |   |
| Third Quarter 2010 (October 1 – December 31, 2009) |   | $    | 0.29   |   |   | $      | 0.12 |   |
| Fourth Quarter 2010 (January 1 – March 31, 2010)   |   | $    | 0.24   |   |   | $      | 0.10 |   |

|   | · | We would not be able to pay our debts as they become due in the usual course of business; or |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | Our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of stockholders who have preferential rights superior to those receiving the distribution. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|           Plan Category |   |  Number ofsecurities tobe issuedupon exerciseofoutstandingoptions,warrants andrights |    |   |   Weighted-averageexercise priceofoutstandingoptions,warrants andrights |   |   | Number ofsecuritiesremainingavailable forfuture issuanceunder equitycompensationplans (excludingsecuritiesreflected incolumn (a)) |   |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                           |   | (a)                                                                                                                |    |   | (b)                                                                                         |   |   | (c)                                                                                                                                                                  |   |
| Equity compensation plans approved by security holders (1)                     |   |                                                                                                               | 100,000 |   |                                                                                        | $      | 0.62   |                                                                                                                                                                 |   |   | 19,850,000 |   |
|                                                                           |   |                                                                                                               |    |   |                                                                                        |   |   |                                                                                                                                                                 |   |   |   |   |
| Equity compensation plans not approved by security holders                     |   |                                                                                                               | -       |   |                                                                                        |   | -      |                                                                                                                                                                 |   |   | - |   |
|                                                                           |   |                                                                                                               |    |   |                                                                                        |   |   |                                                                                                                                                                 |   |   |   |   |
| Total                                                                          |   |                                                                                                               | 100,000 |   |                                                                                        | $      | 0.62   |                                                                                                                                                                 |   |   | 19,850,000 |   |

| (1) | Consists of grants under our 2002 Stock Plan. |
|-----|-----------------------------------------------|

----

|                             |   | Year Ended |    |   |       |   |    |       |   |
|----------------------------------|--------|------------|---------|--------|------------|--------|---------|------------|--------|
|                             |   | March 31,  |    |   | Increase / |   |    | Percentage |   |
|                             |   | 2011       |    |   | 2010       |   |    | (Decrease) |   |   | Change |   |
|                             |   |       |    |   |       |   |    |       |   |   |   |   |
| Operating expenses               |   |       |    |   |       |   |    |       |   |   |   |   |
| Marketing and investor relations |   | $          | 5,170   |   |       | $      | 20,523  |       |   | $ | (15,353 | ) |   |   | (75 | )% |
| Director and management fees     |   |       | 53,338  |   |       |   | 49,758  |       |   |   | 3,580 |   |   |   | 7 |   |
| Research and development         |   |       | -       |   |       |   | 29,835  |       |   |   | (29,835 | ) |   |   | (100 | ) |
| Professional fees                |   |       | 83,112  |   |       |   | 125,522 |       |   |   | (42,410 | ) |   |   | (34 | ) |
| Salaries and benefits            |   |       | 10,002  |   |       |   | 62,448  |       |   |   | (52,446 | ) |   |   | (84 | ) |
| Other operating expenses         |   |       | 31,539  |   |       |   | 38,722  |       |   |   | (7,183 | ) |   |   | (19 | ) |
| Total operating expenses         |   | $          | 183,161 |   |       | $      | 326,808 |       |   | $ | (143,647 | ) |   |   | (44 | )% |

----

----

|                                      |   | Year Ended |   |   |   |   |
|-------------------------------------------|--------|-----------------|--------|--------|--------|--------|
|                                      |   | March 31,  |   |   |   |   |
|                                      |   | 2011            |   |   | 2010   |   |   | Change |   |
|                                      |   |            |   |   |   |   |   |   |   |
| Other income (expense)                    |   |            |   |   |   |   |   |   |   |
| Change in fair value of warrant liability |   | $               | -      |   |   | $      | 65,635 |   |   | $ | (65,635 | ) |
| Foreign exchange loss                     |   |            | (505   | )      |   |   | (585 | ) |   |   | 80 |   |
| Total other income (expense)              |   | $               | (505   | )      |   | $      | 65,050 |   |   |   |   |   |

----

----

|                                                                                                                                      |   | Page   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                      |   |   |
| Report of Independent Registered Public Accounting Firm                                                                                   |   | 12     |
|                                                                                                                                      |   |   |
| Consolidated Balance Sheets as of March 31, 2011 and 2010                                                                                 |   | 13     |
|                                                                                                                                      |   |   |
| Consolidated Statements of Operations for the Years Ended March 31, 2011 and 2010 and from Inception (November 6, 1998) to March 31, 2011 |   | 14     |
|                                                                                                                                      |   |   |
| Consolidated Statements of Stockholders’ Equity (Deficit) from Inception (November 6, 1998) to March 31, 2011                       |   | 15     |
|                                                                                                                                      |   |   |
| Consolidated Statements of Cash Flows for the Years Ended March 31, 2011 and 2010 and from Inception (November 6, 1998) to March 31, 2011 |   | 16     |
|                                                                                                                                      |   |   |
| Notes to Consolidated Financial Statements                                                                                                |   | 17     |

----

----

|                                                                                                                               |   | March 31, |       |   | March 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|------------|--------|-----------|--------|
|                                                                                                                               |   | 2011      |       |   | 2010      |   |
|                                                                                                                               |   |      |       |   |      |   |
| ASSETS                                                                                                                             |   |      |       |   |      |   |
| Current assets                                                                                                                     |   |      |       |   |      |   |
| Cash and cash equivalents                                                                                                          |   | $         | 724,558    |   |      | $      | 913,060 |   |
| Prepaid expenses and other current assets                                                                                          |   |      | 10,037     |   |      |   | - |   |
| Total current assets                                                                                                               |   |      | 734,595    |   |      |   | 913,060 |   |
|                                                                                                                               |   |      |       |   |      |   |   |   |
| Total assets                                                                                                                       |   | $         | 734,595    |   |      | $      | 913,060 |   |
|                                                                                                                               |   |      |       |   |      |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                               |   |      |       |   |      |   |   |   |
|                                                                                                                               |   |      |       |   |      |   |   |   |
| Current liabilities                                                                                                                |   |      |       |   |      |   |   |   |
| Accounts payable                                                                                                                   |   | $         | 8,018      |   |      | $      | 14,255 |   |
| Total current liabilities                                                                                                          |   |      | 8,018      |   |      |   | 14,255 |   |
|                                                                                                                               |   |      |       |   |      |   |   |   |
| Commitments and contingencies                                                                                                      |   |      |       |   |      |   |   |   |
|                                                                                                                               |   |      |       |   |      |   |   |   |
| STOCKHOLDERS' EQUITY                                                                                                               |   |      |       |   |      |   |   |   |
|                                                                                                                               |   |      |       |   |      |   |   |   |
| Stockholders' equity                                                                                                               |   |      |       |   |      |   |   |   |
| Preferred stock: $0.01 par value; 1,000,000 shares authorized, no shares issued and outstanding at March 31, 2011 and 2010         |   |      | -          |   |      |   | - |   |
| Common stock: $0.001 par value; 100,000,000 shares authorized, 42,249,166 shares issued and outstanding at March 31, 2011 and 2010 |   |      | 42,249     |   |      |   | 42,249 |   |
| Additional paid-in capital                                                                                                         |   |      | 3,772,044  |   |      |   | 3,760,606 |   |
| Deficit accumulated during the development stage                                                                                   |   |      | (3,087,716 | )      |      |   | (2,904,050 | ) |
|                                                                                                                               |   |      |       |   |      |   |   |   |
| Total stockholders' equity                                                                                                         |   |      | 726,577    |   |      |   | 898,805 |   |
|                                                                                                                               |   |      |       |   |      |   |   |   |
| Total liabilities and stockholders' equity                                                                                         |   | $         | 734,595    |   |      | $      | 913,060 |   |

----

|                                                                     |   |       |       |   |                  |   |       | From Inception |   |
|--------------------------------------------------------------------------|--------|------------|------------|--------|-----------------------|--------|------------|----------------|--------|
|                                                                     |   | Year Ended |       |   | (November 6, 1998) to |   |
|                                                                     |   | March 31,  |       |   | March 31,             |   |
|                                                                     |   | 2011       |       |   | 2010                  |   |       | 2011           |   |
|                                                                     |   |       |       |   |                  |   |       |           |   |
| Revenue                                                                  |   | $          | -          |   |                  | $      | -          |           |   | $ | - |   |
|                                                                     |   |       |       |   |                  |   |       |           |   |   |   |   |
| Operating expenses                                                       |   |       |       |   |                  |   |       |           |   |   |   |   |
| Marketing and investor relations                                         |   |       | 5,170      |   |                  |   | 20,523     |           |   |   | 811,062 |   |
| Director and management fees                                             |   |       | 53,338     |   |                  |   | 49,758     |           |   |   | 351,891 |   |
| Research and development                                                 |   |       | -          |   |                  |   | 29,835     |           |   |   | 255,498 |   |
| Professional fees                                                        |   |       | 83,112     |   |                  |   | 125,522    |           |   |   | 624,543 |   |
| Salaries and benefits                                                    |   |       | 10,002     |   |                  |   | 62,448     |           |   |   | 1,212,779 |   |
| Website fees - related party                                             |   |       | -          |   |                  |   | -          |           |   |   | 48,050 |   |
| Write off of oil, gas and mineral leases                                 |   |       | -          |   |                  |   | -          |           |   |   | 112,000 |   |
| Other operating expenses                                                 |   |       | 31,539     |   |                  |   | 38,722     |           |   |   | 371,417 |   |
| Total operating expenses                                                 |   |       | 183,161    |   |                  |   | 326,808    |           |   |   | 3,787,240 |   |
|                                                                     |   |       |       |   |                  |   |       |           |   |   |   |   |
| Operating loss                                                           |   |       | (183,161   | )      |                  |   | (326,808   | )              |   |   | (3,787,240 | ) |
|                                                                     |   |       |       |   |                  |   |       |           |   |   |   |   |
| Other income (expense)                                                   |   |       |       |   |                  |   |       |           |   |   |   |   |
| Interest income                                                          |   |       | -          |   |                  |   | -          |           |   |   | 34,713 |   |
| Interest expense                                                         |   |       | -          |   |                  |   | -          |           |   |   | (77,480 | ) |
| Change in fair value of warrant liability                                |   |       | -          |   |                  |   | 65,635     |           |   |   | 65,635 |   |
| Loss on disposal of fixed assets                                         |   |       | -          |   |                  |   | -          |           |   |   | (9,800 | ) |
| Foreign exchange gain (loss)                                             |   |       | (505       | )      |                  |   | (585       | )              |   |   | 2,424 |   |
| Total other income (expense)                                             |   |       | (505       | )      |                  |   | 65,050     |           |   |   | 15,492 |   |
|                                                                     |   |       |       |   |                  |   |       |           |   |   |   |   |
| Net loss                                                                 |   | $          | (183,666   | )      |                  | $      | (261,758   | )              |   | $ | (3,771,748 | ) |
|                                                                     |   |       |       |   |                  |   |       |           |   |   |   |   |
| Net loss per common share - basic and diluted                            |   | $          | (0.00      | )      |                  | $      | (0.01      | )              |   |   |   |   |
|                                                                     |   |       |       |   |                  |   |       |           |   |   |   |   |
| Weighted average number of common shares outstanding - basic and diluted |   |       | 42,249,166 |   |                  |   | 42,249,166 |           |   |   |   |   |

----

|                                                                                                         |   |              |       |   |       |   |   |                 |   |   | Common                           |   |   | Deficit Accumulated |       |   |                  |   |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|------------|--------|--------|----------------------|--------|--------|----------------------------------|--------|--------|--------------------------|------------|--------|-----------------------|--------|
|                                                                                                         |   | Common Stock |       |   | Additional |   |   | Stock                |   |   | During the Development |   |   | Total Stockholders' |       |
|                                                                                                         |   | Shares            |       |   | Amount     |   |   | Paid-in Capital |   |   | Issuable                         |   |   | Stage                    |       |   | Equity (Deficit) |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |
| Inception, November 6, 1998                                                                                  |   |              | -          |   |       | $      | -      |                 |   | $      | -                                |   |   | $                        | -          |   |                  | $      | - |   |   | $ | - |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issued at $0.001 per share to a related party for management services                           |   |              | 20,000,000 |   |       |   | 20,000 |                 |   |   | (15,000                          | )      |   |                     | -          |   |                  |   | - |   |   |   | 5,000 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issued for cash at $0.25 per share during fiscal year ended March 31, 1999                      |   |              | 1,360,000  |   |       |   | 1,360  |                 |   |   | 83,640                           |   |   |                     | -          |   |                  |   | - |   |   |   | 85,000 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, inception (November 6, 1998) to March 31, 1999                                                     |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (7,470 | ) |   |   | (7,470 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 1999                                                                                      |   |              | 21,360,000 |   |       |   | 21,360 |                 |   |   | 68,640                           |   |   |                     | -          |   |                  |   | (7,470 | ) |   |   | 82,530 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2000                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (16,185 | ) |   |   | (16,185 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2000                                                                                      |   |              | 21,360,000 |   |       |   | 21,360 |                 |   |   | 68,640                           |   |   |                     | -          |   |                  |   | (23,655 | ) |   |   | 66,345 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2001                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (171,793 | ) |   |   | (171,793 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2001                                                                                      |   |              | 21,360,000 |   |       |   | 21,360 |                 |   |   | 68,640                           |   |   |                     | -          |   |                  |   | (195,448 | ) |   |   | (105,448 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issued for cash at $0.10 per share, October 17, 2001                                            |   |              | 10,000,000 |   |       |   | 10,000 |                 |   |   | 240,000                          |   |   |                     | -          |   |                  |   | - |   |   |   | 250,000 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2002                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (144,541 | ) |   |   | (144,541 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2002                                                                                      |   |              | 31,360,000 |   |       |   | 31,360 |                 |   |   | 308,640                          |   |   |                     | -          |   |                  |   | (339,989 | ) |   |   | 11 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issued to a related party for services rendered at $0.08 per share, August 5, 2002              |   |              | 2,402,500  |   |       |   | 2,403  |                 |   |   | 45,647                           |   |   |                     | -          |   |                  |   | - |   |   |   | 48,050 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issued to a related party for services rendered at $0.08 per share, August 5, 2002              |   |              | 1,200,000  |   |       |   | 1,200  |                 |   |   | 22,800                           |   |   |                     | -          |   |                  |   | - |   |   |   | 24,000 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Cancellation of previously issued common stock, February 4, 2003                                             |   |              | (1,200,000 | )      |       |   | (1,200 | )                    |   |   | (22,800                          | )      |   |                     | -          |   |                  |   | - |   |   |   | (24,000 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2003                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (149,933 | ) |   |   | (149,933 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2003                                                                                      |   |              | 33,762,500 |   |       |   | 33,763 |                 |   |   | 354,287                          |   |   |                     | -          |   |                  |   | (489,922 | ) |   |   | (101,872 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2004                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (70,132 | ) |   |   | (70,132 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2004                                                                                      |   |              | 33,762,500 |   |       |   | 33,763 |                 |   |   | 354,287                          |   |   |                     | -          |   |                  |   | (560,054 | ) |   |   | (172,004 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2005                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (59,494 | ) |   |   | (59,494 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   | - |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2005                                                                                      |   |              | 33,762,500 |   |       |   | 33,763 |                 |   |   | 354,287                          |   |   |                     | -          |   |                  |   | (619,548 | ) |   |   | (231,498 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issued upon exercise of warrants, at $0.05 per share,  June 9, 2005 and June 30, 2005 |   |              | 3,120,000  |   |       |   | 3,120  |                 |   |   | 152,880                          |   |   |                     | -          |   |                  |   | - |   |   |   | 156,000 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issued upon exercise of stock option, at $0.13 per share, October 7, 2005                       |   |              | 50,000     |   |       |   | 50     |                 |   |   | 6,450                            |   |   |                     | -          |   |                  |   | - |   |   |   | 6,500 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Stock based compensation expense                                                                             |   |              | -          |   |       |   | -      |                 |   |   | 785,536                          |   |   |                     | -          |   |                  |   | - |   |   |   | 785,536 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2006                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (842,155 | ) |   |   | (842,155 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2006                                                                                      |   |              | 36,932,500 |   |       |   | 36,933 |                 |   |   | 1,299,153                        |   |   |                     | -          |   |                  |   | (1,461,703 | ) |   |   | (125,617 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Stock based compensation expense                                                                             |   |              | -          |   |       |   | -      |                 |   |   | 54,443                           |   |   |                     | -          |   |                  |   | - |   |   |   | 54,443 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2007                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (224,862 | ) |   |   | (224,862 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2007                                                                                      |   |              | 36,932,500 |   |       |   | 36,933 |                 |   |   | 1,353,596                        |   |   |                     | -          |   |                  |   | (1,686,565 | ) |   |   | (296,036 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issuable in March 2008                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | 1,259,000  |   |                  |   | - |   |   |   | 1,259,000 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2008                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (411,934 | ) |   |   | (411,934 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2008                                                                                      |   |              | 36,932,500 |   |       |   | 36,933 |                 |   |   | 1,353,596                        |   |   |                     | 1,259,000  |   |                  |   | (2,098,499 | ) |   |   | 551,030 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock and warrants issued for cash and placement fees in April 2008                                   |   |              | 4,100,000  |   |       |   | 4,100  |                 |   |   | 2,395,900                        |   |   |                     | (1,259,000 | )      |                  |   | - |   |   |   | 1,141,000 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Stock based compensation expense                                                                             |   |              | -          |   |       |   | -      |                 |   |   | 12,235                           |   |   |                     | -          |   |                  |   | - |   |   |   | 12,235 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Common stock issued upon exercise of warrants, at $0.60 per share in May 2008                                |   |              | 1,216,666  |   |       |   | 1,216  |                 |   |   | 728,784                          |   |   |                     | -          |   |                  |   | - |   |   |   | 730,000 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2009                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (1,227,825 | ) |   |   | (1,227,825 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2009                                                                                      |   |              | 42,249,166 |   |       |   | 42,249 |                 |   |   | 4,490,515                        |   |   |                     | -          |   |                  |   | (3,326,324 | ) |   |   | 1,206,440 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Stock based compensation expense                                                                             |   |              | -          |   |       |   | -      |                 |   |   | 19,758                           |   |   |                     | -          |   |                  |   | - |   |   |   | 19,758 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Cumulative adjustment upon adoption of ASC 815-40                                                            |   |              | -          |   |       |   | -      |                 |   |   | (749,667                         | )      |   |                     | -          |   |                  |   | 684,032 |   |   |   | (65,635 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2010                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (261,758 | ) |   |   | (261,758 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2010                                                                                      |   |              | 42,249,166 |   |       |   | 42,249 |                 |   |   | 3,760,606                        |   |   |                     | -          |   |                  |   | (2,904,050 | ) |   |   | 898,805 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Stock based compensation expense                                                                             |   |              | -          |   |       |   | -      |                 |   |   | 11,438                           |   |   |                     | -          |   |                  |   | - |   |   |   | 11,438 |   |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Net loss, year ended March 31, 2011                                                                          |   |              | -          |   |       |   | -      |                 |   |   | -                                |   |   |                     | -          |   |                  |   | (183,666 | ) |   |   | (183,666 | ) |
|                                                                                                         |   |              |       |   |       |   |   |                 |   |   |                             |   |   |                     |       |   |                  |   |   |   |   |   |   |   |
| Balance, March 31, 2011                                                                                      |   |              | 42,249,166 |   |       | $      | 42,249 |                 |   | $      | 3,772,044                        |   |   | $                        | -          |   |                  | $      | (3,087,716 | ) |   | $ | 726,577 |   |

----

|                                                                              |   |            |     |   |                                 |   |      | From Inception |   |
|-----------------------------------------------------------------------------------|--------|-----------------|----------|--------|--------------------------------------|--------|-----------|---------------------|--------|
|                                                                              |   | Year Ended |     |   | (November 6, 1998) to |   |
|                                                                              |   | March 31,  |     |   | March 31,                       |   |
|                                                                              |   | 2011            |     |   | 2010                                 |   |      | 2011                |   |
|                                                                              |   |            |     |   |                                 |   |      |                |   |
| Cash flows from operating activities                                              |   |            |     |   |                                 |   |      |                |   |
|  Net loss                                                                    |   | $               | (183,666 | )      |                                 | $      | (261,758  | )                   |   | $ | (3,771,748 | ) |
|  Adjustments to reconcile net loss to net cash used in operating activities: |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Depreciation                                                                      |   |            | -        |   |                                 |   | -         |                |   |   | 6,268 |   |
| Common stock issued for services                                                  |   |            | -        |   |                                 |   | -         |                |   |   | 53,050 |   |
| Change in fair value of warrant liability                                         |   |            | -        |   |                                 |   | (65,635   | )                   |   |   | (65,635 | ) |
| Stock based compensation expense                                                  |   |            | 11,438   |   |                                 |   | 19,758    |                |   |   | 883,410 |   |
| Loss on disposal of fixed assets                                                  |   |            | -        |   |                                 |   | -         |                |   |   | 9,800 |   |
| Write off of oil, gas and mineral leases                                          |   |            | -        |   |                                 |   | -         |                |   |   | 112,000 |   |
|  Change in operating assets and liabilities:                                 |   |            |     |   |                                 |   |      |                |   |   |   |   |
| (Increase) decrease in prepaid expenses and other current assets                  |   |            | (10,037  | )      |                                 |   | 13,558    |                |   |   | (10,037 | ) |
| Increase (decrease) in accounts payable                                           |   |            | (6,237   | )      |                                 |   | (11,774   | )                   |   |   | 8,018 |   |
| Decrease in accrued liabilities                                                   |   |            | -        |   |                                 |   | (29,835   | )                   |   |   | - |   |
| Net cash used in operating activities                                             |   |            | (188,502 | )      |                                 |   | (335,686  | )                   |   |   | (2,774,874 | ) |
|                                                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Cash flows from investing activities                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Purchase of property and equipment                                                |   |            | -        |   |                                 |   | -         |                |   |   | (16,068 | ) |
| Purchase of oil, gas and mineral leases                                           |   |            | -        |   |                                 |   | -         |                |   |   | (112,000 | ) |
| Net cash used in investing activities                                             |   |            | -        |   |                                 |   | -         |                |   |   | (128,068 | ) |
|                                                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Cash flows from financing activities                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Proceeds from issuance of common stock and warrants                               |   |            | -        |   |                                 |   | -         |                |   |   | 3,627,500 |   |
| Proceeds from loans from related party                                            |   |            | -        |   |                                 |   | -         |                |   |   | 510,000 |   |
| Repayment of loans from related party                                             |   |            | -        |   |                                 |   | -         |                |   |   | (510,000 | ) |
| Net cash provided by financing activities                                         |   |            | -        |   |                                 |   | -         |                |   |   | 3,627,500 |   |
|                                                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                  |   |            | (188,502 | )      |                                 |   | (335,686  | )                   |   |   | 724,558 |   |
|                                                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Cash and cash equivalents at beginning of period                                  |   |            | 913,060  |   |                                 |   | 1,248,746 |                |   |   | - |   |
|                                                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Cash and cash equivalents at end of period                                        |   | $               | 724,558  |   |                                 | $      | 913,060   |                |   | $ | 724,558 |   |
|                                                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Supplemental disclosure of cash flow information:                                 |   |            |     |   |                                 |   |      |                |   |   |   |   |
|   Interest paid in cash                                                      |   | $               | -        |   |                                 | $      | -         |                |   | $ | 77,480 |   |
|   Income tax paid in cash                                                    |   | $               | -        |   |                                 | $      | -         |                |   | $ | - |   |
|                                                                              |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Non-cash investing and financing activities:                                      |   |            |     |   |                                 |   |      |                |   |   |   |   |
| Issuance of common stock and warrants for commission                              |   | $               | -        |   |                                 | $      | -         |                |   | $ | 60,000 |   |

----

----

----

----

|                                                                                   |   | Year Ended |       |
|----------------------------------------------------------------------------------------|--------|-----------------|------------|
|                                                                                   |   | March 31,  |       |
|                                                                                   |   | 2011            |       |   | 2010 |   |
|                                                                                   |   |            |       |   |   |   |
| Numerator - net loss                                                                   |   | $               | (183,666   | ) |   | $ | (261,758 | ) |
|                                                                                   |   |            |       |   |   |   |   |   |
| Denominator - weighted average number of common shares outstanding - basic and diluted |   |            | 42,249,166 |   |   |   | 42,249,166 |   |
|                                                                                   |   |            |       |   |   |   |   |   |
| Basic and diluted net loss per common share                                            |   | $               | (0.00      | ) |   | $ | (0.01 | ) |

----

----

|                         |   | Year Ended |   |
|------------------------------|--------|-----------------|--------|
|                         |   | March 31,  |   |
|                         |   | 2011            |   |   | 2010 |   |
|                         |   |            |   |   |   |   |
| Director and management fees |   | $               | 11,438 |   |   | $ | 19,758 |   |
| Total                        |   | $               | 11,438 |   |   | $ | 19,758 |   |

----

|                                  |   |                        |       |   |                |   | Weighted  |   |      |   |
|---------------------------------------|--------|-----------------------------|------------|--------|---------------------|--------|----------------|--------|-----------|--------|
|                                  |   |                        |       |   |                |   | Average        |   |      |   |
|                                  |   |                        |       |   | Weighted            |   | Remaining      |   | Aggregate |   |
|                                  |   |                        |       |   | Average             |   | Contractual    |   | Intrinsic |   |
|                                  |   | Number of Options |       |   | Exercise Price |   | Term      |   | Value     |   |
|                                  |   |                        |       |   |                |   |           |   |      |   |
| Outstanding at March 31, 2010         |   |                        | 8,050,000  |   |                | $      | 0.14           |   |      |   |   |   |
| Cancellations                         |   |                        | (7,950,000 | )      |                |   | 0.13           |   |      |   |   |   |
| Outstanding at March 31, 2011         |   |                        | 100,000    |   |                | $      | 0.62           |   | 7.5 years |   | $ | - |   |
|                                  |   |                        |       |   |                |   |           |   |      |   |   |   |   |
| Exercisable at March 31, 2011         |   |                        | 40,000     |   |                | $      | 0.62           |   | 7.5 years |   | $ | - |   |
|                                  |   |                        |       |   |                |   |           |   |      |   |   |   |   |
| Available for grant at March 31, 2011 |   |                        | 19,850,000 |   |                |   |           |   |      |   |   |   |   |

|                  |               |   | Stock Options Outstanding |   |    | Stock Options Exercisable |   |
|-----------------------|--------------------|--------|-------------------------------------|--------|---------|-------------------------------------|--------|
|                  |               |   |                                |   |    | Weighted                            |   |   |   |   |   |   |   |   | Weighted |   |   |   |   |
|                  |               |   |                                |   |    | Average                             |   |   | Weighted |   |   |   |   |   | Average |   |   | Weighted |   |
|                  |               |   | Number of                      |   |    | Remaining                           |   |   | Average |   |   | Number of |   |   | Remaining |   |   | Average |   |
|                  |               |   | Options                             |   |    | Contractual                         |   |   | Exercise |   |   | Options |   |   | Contractual |   |   | Exercise |   |
| Excercise Prices |               |   | Outstanding                         |   |    | Life (Years)                   |   |   | Price |   |   | Exercisable |   |   | Life (Years) |   |   | Price |   |
|                  |               |   |                                |   |    |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                     | 0.40               |   |                                |   | 50,000  |                                |   |   | 7.6 |   |   | $ | 0.40 |   |   |   | 20,000 |   |   |   | 7.6 |   |   | $ | 0.40 |   |
|                  | 0.83               |   |                                |   | 50,000  |                                |   |   | 7.5 |   |   |   | 0.83 |   |   |   | 20,000 |   |   |   | 7.5 |   |   |   | 0.83 |   |
| $                     | 0.40 - $ 0.83 |   |                                |   | 100,000 |                                |   |   | 7.5 |   |   | $ | 0.62 |   |   |   | 40,000 |   |   |   | 7.5 |   |   | $ | 0.62 |   |

----

| Beginning Balance, April 1, 2009                                               |   | $      | 65,635  |   |
|--------------------------------------------------------------------------------|--------|--------|---------|--------|
| Change in fair value of warrant liability during the year ended March 31, 2010 |   |   | (65,635 | )      |
| Ending Balance, March 31, 2011 and 2010                                        |   | $      | -       |   |

----

|                                          |   | Year Ended |     |
|-----------------------------------------------|--------|-----------------|----------|
|                                          |   | March 31,  |     |
|                                          |   | 2011            |     |   | 2010 |   |
| Deferred tax assets:                          |   |            |     |   |   |   |
| Net operating loss carryforwards              |   | $               | 659,346  |   |   | $ | 592,281 |   |
| Capitalized research and development          |   |            | 60,609   |   |   |   | 69,486 |   |
| Stock based compensation                      |   |            | 14,766   |   |   |   | 296,470 |   |
| Research and development credit carry forward |   |            | 10,085   |   |   |   | 10,085 |   |
| Total deferred tax assets                     |   |            | 744,806  |   |   |   | 968,322 |   |
|                                          |   |            |     |   |   |   |   |   |
| Less: valuation allowance                     |   |            | (744,806 | ) |   |   | (968,322 | ) |
| Net deferred tax asset                        |   | $               | —  |   |   | $ | — |   |

----

|                                       |   | Year Ended |     |
|--------------------------------------------|--------|-----------------|----------|
|                                       |   | March 31,  |     |
|                                       |   | 2011            |     |   | 2010 |   |
|                                       |   |            |     |   |   |   |
| Income tax benefit at statutory rate       |   | $               | 62,446   |   |   | $ | 88,998 |   |
| Non-deductible fund raising costs          |   |            | -        |   |   |   | (5,168 | ) |
| Non-deductible meals and entertainment     |   |            | (368     | ) |   |   | (1,041 | ) |
| Change in fair value of warrant liability  |   |            | -        |   |   |   | 22,316 |   |
| Cancellation of fully vested stock options |   |            | (285,594 | ) |   |   | - |   |
| Research and development credit            |   |            | -        |   |   |   | 1,261 |   |
| Other                                      |   |            | -        |   |   |   | 5,014 |   |
| Change in valuation allowance              |   |            | 223,516  |   |   |   | (111,380 | ) |
|                                       |   | $               | -        |   |   | $ | - |   |

----

----

| Name                |   | Age    |   | Position                                                                  |   | Director Since |
|---------------------|--------|--------|--------|---------------------------------------------------------------------------|--------|---------------------|
|                |   |   |   |                                                                      |   |                |
| Amit Dang (1)       |   | 30     |   | President, Chief Executive Officer, Chief Financial Officer, and Director |   | August 30, 2010     |
|                |   |   |   |                                                                      |   |                |
| Derek J. Cooper (2) |   | 33     |   | Director                                                                  |   | January 21, 2005    |
|                |   |   |   |                                                                      |   |                |
| Joanne Lustre       |   | 55     |   | Director                                                                  |   | September 12, 2008  |
|                |   |   |   |                                                                      |   |                |
| Jatinder S. Bhogal  |   | 43     |   | Director                                                                  |   | October 15, 2008    |

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|   | 1. | A petition under the Federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Such person was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 3. | Such person was the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Engaging in any type of business practice; or |
|--------|----|-----------------------------------------------|

|   | c. | Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Such person was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph 3(a) or to be associated with persons engaged in any such activity; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | Such person was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated; |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Such person was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Any Federal or State securities or commodities law or regulation; or |
|--------|----|----------------------------------------------------------------------|

|   | b. | Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or |
|--------|----|----------------------------------------------------------------------------------------------------------|

|   | 8. | Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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| Name and Principal Position                                                  |   |   | Year EndedMarch 31, |   |   | Salary ($) (3) |   |   | All OtherCompensation($) (4) |   |   | Total ($) |   |
|---------------------------------------------------------------------------------------------|--------|--------|-------------------------------|--------|--------|--------------------------|--------|--------|----------------------------------------|--------|--------|----------------|--------|
| Amit S. Dang  (1)                                                                 |   |   | 2011                          |   |   | $                        | 11,900 |   |                                   | $      | -      |           |   | $ | 11,900 |   |
| President, Chief Executive Officer, Chief Financial Officer, Director                       |   |   | 2010                          |   |   | $                        | -      |   |                                   | $      | -      |           |   | $ | - |   |
| Charles Bell (2)                                                                            |   |   | 2011                          |   |   | $                        | 7,432  |   |                                   | $      | 2,570  |           |   | $ | 10,002 |   |
| Former President, Chief Executive Officer, and Chief Financial Officer, and Former Director |   |   | 2010                          |   |   | $                        | 57,550 |   |                                   | $      | 4,898  |           |   | $ | 62,448 |   |

| (1) | Effective August 27, 2010, Mr. Charles Bell resigned as a member of our Board and from all executive officer positions held with us.  In order to fill the vacancies created by the resignation of Mr. Bell, on August 30, 2010, the Board appointed Mr. Amit S. Dang to the positions of Interim President and Chief Executive Officer (Principal Executive Officer), Chief Financial Officer (Principal Accounting Officer), Secretary, and as one of our directors. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2) | On October 15, 2008, our Board of Directors appointed Mr. Charles Bell to the positions of President, Chief Executive Officer and Director.  Pursuant to an Employment Agreement with Mr. Bell, the Board approved an annual salary of $100,000 and the grant of a stock option to purchase up to 750,000 shares of our common stock, subject to certain vesting requirements, within 60 days of the Employment Agreement. Pursuant to the terms of the Employment Agreement, the stock option was to be effective only upon delivery of a fully executed stock option agreement.  Since the grant of the stock option was not finalized nor was the stock option agreement executed and delivered within 60 days of the effective date of the Employment Agreement, the provision allowing for the grant of the stock option to Mr. Bell lapsed pursuant to the terms of the Employment Agreement.  Accordingly, we did not record any stock compensation expense related to this stock option. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | This column includes both employee and employer related payroll taxes paid on behalf of the employee. |
|-----|-------------------------------------------------------------------------------------------------------|

| (4) | Represents amounts paid for health care insurance. |
|-----|----------------------------------------------------|

|   | · | Compensation should consist of a combination of cash and equity awards that are designed to fairly compensate the directors for work required for a company of International Energy, Inc.’s size and scope; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Compensation should align the directors’ interests with the long-term interests of stockholders; and |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | Compensation should assist with attracting and retaining qualified directors. |
|--------|--------|-------------------------------------------------------------------------------|

|                        |   | Director Compensation |   |
|-----------------------------|--------|----------------------------|--------|
|                        |   | Fees Earned or   |   |   |   |   |   |   |   |
|                        |   | Paid in               |   |   | Stock |   |   |   |   |
| Name                        |   | Cash ($) (1)     |   |   | Awards ($) (2) |   |   | Total ($) |   |
| Derek J. Cooper             |   | $                          | 10,000 |   |   | $ | — |   |   | $ | 10,000 |   |
| Joanne Lustre               |   |                       | 10,000 |   |   |   | — |   |   |   | 10,000 |   |
| Jatinder S. Bhogal          |   |                       | 10,000 |   |   |   | — |   |   |   | 10,000 |   |
| Total director compensation |   | $                          | 30,000 |   |   | $ | — |   |   | $ | 30,000 |   |

| (1) | The amounts in this column represent the quarterly cash meeting fee earned by or paid to our non-employee directors for service during the fiscal year ended March 31, 2011. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2) | This column reflects the aggregate grant date fair value computed in accordance with FASB ASC Topic 718. We did not grant any equity based compensation awards to our non-employee directors during the year ended March 31, 2011. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name and Address of Beneficial Owner                                           |   | Positions and OfficesHeld                                            |   |   | Amount andNature ofBeneficialOwnership (1) |       |   | Percentof Class(1) |   |
|---------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------|------------|--------|-------------------------|--------|
|                                                                                                    |   |                                                                           |   |   |                                                      |       |   |                    |   |
| Amit Dang1200 G Street, NW, Suite 800Washington, DC 20005                                               |   | President, Chief Executive Officer, Chief Financial Officer and Director       |   |   |                                                      | -0-        |   |                    |   | -0- |  % |
|                                                                                                    |   |                                                                           |   |   |                                                      |       |   |                    |   |   |   |
| Derek Cooper (2)1200 G Street, NW, Suite 800Washington, DC 20005                                        |   | Director, Former President and Chief Executive Officer                         |   |   |                                                      | -0-        |   |                    |   | -0- | % |
|                                                                                                    |   |                                                                           |   |   |                                                      |       |   |                    |   |   |   |
| Joanne Lustre1200 G Street, NW, Suite 800Washington, DC 20005                                           |   | Director                                                                  |   |   |                                                      | 20,000     | (3)    |                    |   | -0- | % |
|                                                                                                    |   |                                                                           |   |   |                                                      |       |   |                    |   |   |   |
| Jatinder Bhogal1200 G Street, NW, Suite 800Washington, DC 20005                                         |   | Director                                                                  |   |   |                                                      | 20,000     | (3)    |                    |   | -0- | % |
|                                                                                                    |   |                                                                           |   |   |                                                      |       |   |                    |   |   |   |
| 1420525 Alberta Ltd.c/o Harmel S. Rayat216 – 1628 West 1st AvenueVancouver, BC  V6J 1G1 |   | Stockholder, Former Chief Financial Officer, Director, Secretary and Treasurer |   |   |                                                      | 16,379,167 | (4)    |                    |   | 38.8 | % |
|                                                                                                    |   |                                                                           |   |   |                                                      |       |   |                    |   |   |   |
| Kundan Rayat54-8533 Cumberland PlBurnaby, British Columbia, V6B 6E4                                     |   | Stockholder                                                               |   |   |                                                      | 3,120,000  |   |                    |   | 7.4 | % |
|                                                                                                    |   |                                                                           |   |   |                                                      |       |   |                    |   |   |   |
| Directors and Officers as a Group (4 persons)                                                           |   |                                                                           |   |   |                                                      | 40,000     |   |                    |   | -0- | % |

|   | (1) | Calculated pursuant to rule 13d-3(d) of the Exchange Act.  Beneficial ownership is calculated based on 42,249,166 shares of common stock issued and outstanding on a fully diluted basis as of June 1, 2011.  Unless otherwise stated below, each such person has sole voting and investment power with respect to all such shares.  Under Rule 13d-3(d) of the Exchange Act, shares not outstanding which are subject to options, warrants, rights or conversion privileges exercisable within 60 days of June 1, 2011 are deemed outstanding for the purpose of calculating the number of shares of common stock and percentage owned by such person, but are not deemed outstanding for the purpose of calculating the percentage owned by each other person listed. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (2) | Mr. Cooper resigned as an officer on August 1, 2008. |
|--------|-----|------------------------------------------------------|

|   | (3) | Represents shares of common stock issuable upon exercise of vested stock options. |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (4) | Represents shares owned by 1420525 Alberta Ltd., a private Alberta corporation wholly owned by Mr. Harmel Rayat, a former officer, director, and controlling stockholder.  In such capacity, Mr. Rayat may be deemed to have beneficial ownership of these shares. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|               |   | Year Ended |    |
|--------------------|--------|------------|---------|
|               |   | March 31,  |    |
|               |   | 2011       |    |   | 2010 |   |
| Audit fees         |   | $          | 19,222  |   |   | $ | 24,598 |   |
| Audit-related fees |   |       | — |   |   |   | 7,424 |   |
| Tax fees           |   |       | 4,248   |   |   |   | 4,286 |   |
| Total fees         |   | $          | 23,470  |   |   | $ | 36,308 |   |

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|   | · | Report of Independent Registered Public Accounting Firm |
|--------|--------|---------------------------------------------------------|

|   | · | Consolidated Balance Sheets as of March 31, 2011 and 2010 |
|--------|--------|-----------------------------------------------------------|

|   | · | Consolidated Statements of Operations for the Years Ended March 31, 2011 and 2010 and from Inception (November 6, 1998) to March 31, 2011 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Consolidated Statements of Stockholders’ Equity (Deficit) from Inception (November 6, 1998) to March 31, 2011 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | Consolidated Statements of Cash Flows for the Years Ended March 31, 2011 and 2010 and from Inception (November 6, 1998) to March 31, 2011 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Notes to Consolidated Financial Statements |
|--------|--------|--------------------------------------------|

----

|         | International Energy, Inc.                          |
|--------------|-----------------------------------------------------|
|         | (Registrant)                                        |
|         |                                                |   |   |
| June 6, 2011 | By:                                                 | /s/ Amit S. Dang |   |
|         | Amit S. Dang                                        |
|         | Chief Executive Officer and Chief Financial Officer |
|         | (Principal Executive Officer, Principal Financial   |
|         | Officer, and Principal Accounting Officer)          |

| Signature              |   | Title                             |   | Date         |
|------------------------|--------|-----------------------------------|--------|--------------|
|                   |   |                              |   |         |
| /s/ Amit S. Dang       |   | Chief Executive Officer and Chief |   | June 6, 2011 |
| Amit S. Dang           |   | Financial Officer                 |   |         |
|                   |   | (Principal Executive Officer,     |   |         |
|                   |   | Principal Financial Officer, and  |   |         |
|                   |   | Principal Accounting Officer)     |   |         |
|                   |   |                              |   |         |
| /s/ Jatinder S. Bhogal |   | Director                          |   | June 6, 2011 |
| Jatinder S. Bhogal     |   |                              |   |         |
|                   |   |                              |   |         |
| /s/ Derek J. Cooper    |   | Director                          |   | June 6, 2011 |
| Derek J. Cooper        |   |                              |   |         |
|                   |   |                              |   |         |
| /s/ Joanne Lustre      |   | Director                          |   | June 6, 2011 |
| Joanne Lustre          |   |                              |   |         |

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| Exhibit No. |   | Description of Exhibit                                                                                                                                                                                      |
|------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                  |
| 3.1              |   | Articles of Incorporation. (2)                                                                                                                                                                                        |
|             |   |                                                                                                                                                                                                                  |
| 3.2              |   | Articles of Incorporation, as amended. (1)                                                                                                                                                                            |
|             |   |                                                                                                                                                                                                                  |
| 3.3              |   | By Laws. (2)                                                                                                                                                                                                          |
|             |   |                                                                                                                                                                                                                  |
| 4.1              |   | Securities Purchase Agreement dated April 17, 2008 by and among International Energy, Inc. and Purchasers named therein and who are signatories thereto. (2)                                                          |
|             |   |                                                                                                                                                                                                                  |
| 4.2              |   | Form of Registration Rights Agreement dated April 17, 2008 by and between International Energy, Inc. and entities named therein and who are signatories thereto. (2)                                                  |
|             |   |                                                                                                                                                                                                                  |
| 4.3              |   | Form of Series B Warrant. (2)                                                                                                                                                                                         |
|             |   |                                                                                                                                                                                                                  |
| 4.4              |   | Placement Agent Agreement with Palladium Capital Advisors, LLC. (2)                                                                                                                                                   |
|             |   |                                                                                                                                                                                                                  |
| 10.1             |   | Research Agreement with The Regents of the University of California dated September 17, 2007. (2)                                                                                                                     |
|             |   |                                                                                                                                                                                                                  |
| 10.2             |   | Employment Agreement dated October 15, 2008 with Charles Bell. (3)                                                                                                                                                    |
|             |   |                                                                                                                                                                                                                  |
| 10.3             |   | Executive Services Agreement dated August 30, 2010 between International Energy, Inc. and Amit S. Dang. (5)                                                                                                           |
|             |   |                                                                                                                                                                                                                  |
| 10.4             |   | Code of Ethics. *                                                                                                                                                                                                     |
|             |   |                                                                                                                                                                                                                  |
| 99.1             |   | International Energy, Inc. – 2002 Incentive Stock Plan. (4)                                                                                                                                                     |
|             |   |                                                                                                                                                                                                                  |
| 23.1             |   | Consent of Peterson Sullivan, LLP. *                                                                                                                                                                                  |
|             |   |                                                                                                                                                                                                                  |
| 31.1             |   | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13(a)-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* |
|             |   |                                                                                                                                                                                                                  |
| 32.1             |   | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 USC. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                 |

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| (1) | Incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended December 31, 2009 filed with the Commission on February 22, 2010. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference to the Company’s Registration Statement on Form S-1 filed with the Commission on June 23, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to the Company’s Registration Statement on Form S-1/A filed with the Commission on December 31, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated by reference to the Company’s Registration Statement on Form S-8 filed with the Commission on August 24, 2005. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

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| (5) | Incorporated by reference to the Company’s Report on Form 10-Q for the quarterly period ended December 31, 2010 filed with the Commission on February 14, 2011. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----