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

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

| Delaware                                                       |   | 87-056703                            |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS employer identification number) |
|                                                           |   |                                 |
| One Embarcadero Center, Suite 500, San Francisco, CA           |   | 94111                                |
| (Address of principal executive offices)                       |   | (Zip Code)                           |

| Large accelerated filer  ̈ | Accelerated filer  ̈    |
|--------------------------------|-----------------------------|
| Non-accelerated filer  ̈   | Smaller reporting company x |

----

----

| ExhibitNumber |   | Exhibit Description                                                                     |
|---------------|--------|----------------------------------------------------------------------------------------------|
|          |   |                                                                                         |
| 23.1          |   | Consent of Burr Pilger Mayer, Inc., independent registered public accounting firm            |
|          |   |                                                                                         |
| 23.2          |   | Consent of Pritchett, Siler & Hardy, P.C., independent registered public accounting firm |
|          |   |                                                                                         |
| 31.1          |   | Rule 13a-14(a) Certification by Chief Executive Officer                                      |
|          |   |                                                                                         |
| 31.2          |   | Rule 13a-14(a) Certification by Chief Financial Officer                                      |
|          |   |                                                                                         |
| 32.1          |   | Section 1350 Certification of Chief Executive Officer                                        |
|          |   |                                                                                         |
| 32.2          |   | Section 1350 Certification of Chief Financial Officer                                        |

|                    | Colombia Clean Power & Fuels, Inc. |
|-------------------------|----------------------------------------|
|                    |                                   |   |
| Date: December 12, 2011 | By:                                    | /s/Ronald G. Stovash |
|                    |                                   | Ronald G. Stovash, Chief Executive Officer |

----

----

----

| COLOMBIA CLEAN POWER & FUELS, INC. |
|----------------------------------------|
| (AN EXPLORATION STAGE COMPANY)         |
| CONSOLIDATED BALANCE SHEETS            |

|                                                                                                                                                                  |   | December 31,2010 |       |   | December31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|------------|--------|-----------------------|--------|
| ASSETS                                                                                                                                                                |   |                  |       |   |                  |   |
| Current Assets                                                                                                                                                        |   |                  |       |   |                  |   |
| Cash                                                                                                                                                                  |   | $                     | 5,027,656  |   |                  | $      | 89 |   |
| Other Current Assets                                                                                                                                                  |   |                  | 747,588    |   |                  |   | - |   |
| Total Current Assets                                                                                                                                                  |   |                  | 5,775,244  |   |                  |   | 89 |   |
| Property and Equipment                                                                                                                                                |   |                  |       |   |                  |   |   |   |
| Mining Concessions                                                                                                                                                    |   |                  | 2,026,617  |   |                  |   | - |   |
| Construction in Progress                                                                                                                                              |   |                  | 30,000     |   |                  |   | - |   |
| Equipment                                                                                                                                                             |   |                  | 2,075      |   |                  |   | - |   |
| Total Property & Equipment                                                                                                                                        |   |                  | 2,058,692  |   |                  |   | - |   |
| Other Assets                                                                                                                                                          |   |                  | 341,651    |   |                  |   | - |   |
| TOTAL ASSETS                                                                                                                                                          |   | $                     | 8,175,587  |   |                  | $      | 89 |   |
|                                                                                                                                                                  |   |                  |       |   |                  |   |   |   |
| LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                      |   |                  |       |   |                  |   |   |   |
| Liabilities                                                                                                                                                           |   |                  |       |   |                  |   |   |   |
| Current Liabilities                                                                                                                                                   |   |                  |       |   |                  |   |   |   |
| Accounts Payable and Accrued Liabilities                                                                                                                              |   | $                     | 1,181,295  |   |                  | $      | 6,681 |   |
| Accrued Interest Related Party                                                                                                                                        |   |                  | -          |   |                  |   | 1,339 |   |
| Loans from Officers & Directors                                                                                                                                   |   |                  | -          |   |                  |   | 117,000 |   |
| Total Current Liabilities                                                                                                                                             |   |                  | 1,181,295  |   |                  |   | 125,020 |   |
| Long Term Liabilities                                                                                                                                                 |   |                  |       |   |                  |   |   |   |
| Convertible Notes - Related Party                                                                                                                                     |   |                  | 19,122     |   |                  |   | 5,000 |   |
| Convertible Notes Payable (Net of Issuance Discount)                                                                                                                  |   |                  | 2,885,022  |   |                  |   | - |   |
| Accrued Interest on Convertible Notes Payable                                                                                                                         |   |                  | 110,846    |   |                  |   | - |   |
| Other Noncurrent Liabilities                                                                                                                                          |   |                  | 400,000    |   |                  |   | - |   |
| Derivative Liability - embedded conversion feature                                                                                                                    |   |                  | 2,816,000  |   |                  |   | - |   |
| Total Long Term Liabilities                                                                                                                                           |   |                  | 6,230,990  |   |                  |   | 5,000 |   |
| Total Liabilities                                                                                                                                                     |   |                  | 7,412,285  |   |                  |   | 130,020 |   |
| Stockholders' Equity (Deficit)                                                                                                                                        |   |                  |       |   |                  |   |   |   |
| Preferred stock, $.001 par value, 5,000,000 shares authorized,  no shares issued and outstanding                                                            |   |                  | 0          |   |                  |   | 0 |   |
| Common Stock, $.001 par value, 100,000,000 shares authorized,  20,549,637 shares and 1,120,000 shares issued and outstanding in 2010 and 2009, respectively |   |                  | 20,550     |   |                  |   | 1,120 |   |
| Additional Paid in Capital                                                                                                                                            |   |                  | 3,263,345  |   |                  |   | 94,556 |   |
| Accumulated Deficit                                                                                                                                                   |   |                  | (2,438,927 | )      |                  |   | (225,607 | ) |
| Accumulated Other Comprehensive Loss                                                                                                                                  |   |                  | (81,666    | )      |                  |   | - |   |
| Total Stockholders' Equity (Deficit)                                                                                                                                  |   |                  | 763,302    |   |                  |   | (129,931 | ) |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                |   | $                     | 8,175,587  |   |                  | $      | 89 |   |

----

| COLOMBIA CLEAN POWER & FUELS, INC.                       |
|--------------------------------------------------------------|
| (AN EXPLORATION STAGE COMPANY)                               |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |

|                                                                                          |   | For the Years |       |   | From Inception on    |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|--------------------------------|--------|
|                                                                                          |   | Ended                   |       |   | Nov. 6, 1996         |   |
|                                                                                          |   | December 31,       |       |   | through December 31, |   |
|                                                                                          |   | 2010                    |       |   | 2009                           |   |   | 2010 |   |
| Revenue                                                                                       |   | $                       | -          |   |                           | $      | - |   |   | $ | 3,560 |   |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Expenses                                                                                      |   |                    |       |   |                           |   |   |   |   |   |   |   |
| General and administrative                                                                    |   |                    | 1,935,450  |   |                           |   | 14,817 |   |   |   | 2,138,568 |   |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Loss before other expense                                                                     |   |                    | (1,935,450 | )      |                           |   | (14,817 | ) |   |   | (2,135,008 | ) |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Other income (expense)                                                                        |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Unrealized gain on change in fair value of derivative liability - embedded conversion feature |   |                    | 256,000    |   |                           |   | - |   |   |   | 256,000 |   |
| Interest expense, net                                                                         |   |                    | (533,870   | )      |                           |   | (9,288 | ) |   |   | (559,919 | ) |
| Total other expense, net                                                                      |   |                    | (277,870   | )      |                           |   | (9,288 | ) |   |   | (303,919 | ) |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Loss before income taxes                                                                      |   |                    | (2,213,320 | )      |                           |   | (24,105 | ) |   |   | (2,438,927 | ) |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Provision for Income Taxes                                                                    |   |                    | -          |   |                           |   | - |   |   |   | - |   |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Net loss                                                                                      |   |                    | (2,213,320 | )      |                           |   | (24,105 | ) |   |   | (2,438,927 | ) |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Other comprehensive loss                                                                      |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Foreign currency translation                                                                  |   |                    | (81,666    | )      |                           |   | - |   |   |   | (81,666 | ) |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Total comprehensive loss                                                                      |   | $                       | (2,294,986 | )      |                           | $      | (24,105 | ) |   | $ | (2,520,593 | ) |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Basic and diluted loss per common share                                                       |   | $                       | (0.12      | )      |                           | $      | (0.02 | ) |   |   |   |   |
|                                                                                          |   |                    |       |   |                           |   |   |   |   |   |   |   |
| Weighted average common shares                                                                |   |                    | 18,887,765 |   |                           |   | 1,120,000 |   |   |   |   |   |

----

| COLOMBIA CLEAN POWER & FUELS, INC.          |
|-------------------------------------------------|
| (AN EXPLORATION STAGE COMPANY)                  |
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY |

|                                                 |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      | Accumulated             |   |   | Total      |   |
|-----------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|----------------------|--------|--------|-------------|--------|--------|------------|--------|--------|---------------|--------|-----------|-------------------------|--------|--------|------------|--------|
|                                                      |   | Preferred Stock |   |   | Common Stock |   |   | Additional Paid |   |   | Accumulated |   |   | Other      |   |   | Stockholders' |   |
| Description                                               |   | Shares               |   |   | Amount            |   |   | Shares               |   |   | Amount      |   |   | in Capital |   |   | Deficit       |   |      | Comprehensive Loss |   |   | Equity     |   |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |
| Balance, November 6, 1996                                 |   |                 | -      |   |              | $      | -      |                 |   |   | -           |   |   | $          | -      |   |          | $      | -         |                    |   | $      | -          |   |   | $ | - |   |   | $ | - |   |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                                  |   |                 |   |   |              |   |   |                 |   |   | 200,000     |   |   |       | 200    |   |          |   | 2,300     |                    |   |   |       |   |   |   |   |   |   |   | 2,500 |   |
| Net Loss for the Period Ending December 31, 1996          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (50        | )      |   |   |   |   |   |   | (50 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 1996                                |   |                 |   |   |              |   |   |                 |   |   | 200,000     |   |   |       | 200    |   |          |   | 2,300     |                    |   |   | (50        | )      |   |   |   |   |   |   | 2,450 |   |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                                  |   |                 |   |   |              |   |   |                 |   |   | 19,000      |   |   |       | 19     |   |          |   | 9,481     |                    |   |   |       |   |   |   |   |   |   |   | 9,500 |   |
| Net Loss for the Period Ending December 31, 1997          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (1,661     | )      |   |   |   |   |   |   | (1,661 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 1997                                |   |                 |   |   |              |   |   |                 |   |   | 219,000     |   |   |       | 219    |   |          |   | 11,781    |                    |   |   | (1,711     | )      |   |   |   |   |   |   | 10,289 |   |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                                  |   |                 |   |   |              |   |   |                 |   |   | 81,000      |   |   |       | 81     |   |          |   | 35,419    |                    |   |   |       |   |   |   |   |   |   |   | 35,500 |   |
| Net Loss for the Period Ending December 31, 1998          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (4,942     | )      |   |   |   |   |   |   | (4,942 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 1998                                |   |                 |   |   |              |   |   |                 |   |   | 300,000     |   |   |       | 300    |   |          |   | 47,200    |                    |   |   | (6,653     | )      |   |   |   |   |   |   | 40,847 |   |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Net Loss for the Period Ending December 31, 1999          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (2,243     | )      |   |   |   |   |   |   | (2,243 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 1999                                |   |                 |   |   |              |   |   |                 |   |   | 300,000     |   |   |       | 300    |   |          |   | 47,200    |                    |   |   | (8,896     | )      |   |   |   |   |   |   | 38,604 |   |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Net Loss for the Period Ending December 31, 2000          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (40,956    | )      |   |   |   |   |   |   | (40,956 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2000                                |   |                 |   |   |              |   |   |                 |   |   | 300,000     |   |   |       | 300    |   |          |   | 47,200    |                    |   |   | (49,852    | )      |   |   |   |   |   |   | (2,353 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Net Loss for the Period Ending December 31, 2001          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (15,669    | )      |   |   |   |   |   |   | (15,669 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2001                                |   |                 |   |   |              |   |   |                 |   |   | 300,000     |   |   |       | 300    |   |          |   | 47,200    |                    |   |   | (65,521    | )      |   |   |   |   |   |   | (18,022 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Net Loss for the Period Ending December 31, 2002          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (13,921    | )      |   |   |   |   |   |   | (13,921 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2002                                |   |                 |   |   |              |   |   |                 |   |   | 300,000     |   |   |       | 300    |   |          |   | 47,200    |                    |   |   | (79,442    | )      |   |   |   |   |   |   | (31,943 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Net Loss for the Period Ending December 31, 2003          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (20,946    | )      |   |   |   |   |   |   | (20,946 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2003                                |   |                 |   |   |              |   |   |                 |   |   | 300,000     |   |   |       | 300    |   |          |   | 47,200    |                    |   |   | (100,388   | )      |   |   |   |   |   |   | (52,889 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Conversion of Note Payable                                |   |                 |   |   |              |   |   |                 |   |   | 80,000      |   |   |       | 80     |   |          |   | 5,088     |                    |   |   |       |   |   |   |   |   |   |   | 5,168 |   |
| Net Loss for the Period Ending December 31, 2004          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (2,129     | )      |   |   |   |   |   |   | (2,129 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2004                                |   |                 |   |   |              |   |   |                 |   |   | 380,000     |   |   |       | 380    |   |          |   | 52,288    |                    |   |   | (102,517   | )      |   |   |   |   |   |   | (49,850 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                                  |   |                 |   |   |              |   |   |                 |   |   | 580,000     |   |   |       | 580    |   |          |   | 6,670     |                    |   |   |       |   |   |   |   |   |   |   | 7,250 |   |
| Net Loss for the Period Ending December 31, 2005          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (19,843    | )      |   |   |   |   |   |   | (19,843 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2005                                |   |                 |   |   |              |   |   |                 |   |   | 960,000     |   |   |       | 960    |   |          |   | 58,958    |                    |   |   | (122,360   | )      |   |   |   |   |   |   | (62,443 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                                  |   |                 |   |   |              |   |   |                 |   |   | 80,000      |   |   |       | 80     |   |          |   | 5,468     |                    |   |   |       |   |   |   |   |   |   |   | 5,548 |   |
| Imputed Interest on Shareholder Advances                  |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   | 3,409     |                    |   |   |       |   |   |   |   |   |   |   | 3,409 |   |
| Net Loss for the Period Ending December 31, 2006          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (18,353    | )      |   |   |   |   |   |   | (18,353 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                                |   |                 |   |   |              |   |   |                 |   |   | 1,040,000   |   |   |       | 1,040  |   |          |   | 67,835    |                    |   |   | (140,713   | )      |   |   |   |   |   |   | (71,839 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                                  |   |                 |   |   |              |   |   |                 |   |   | 80,000      |   |   |       | 80     |   |          |   | 5,722     |                    |   |   |       |   |   |   |   |   |   |   | 5,802 |   |
| Imputed Interest on Shareholder Advances                  |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   | 5,235     |                    |   |   |       |   |   |   |   |   |   |   | 5,235 |   |
| Net Loss for the Period Ending December 31, 2007          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (20,363    | )      |   |   |   |   |   |   | (20,363 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                                |   |                 |   |   |              |   |   |                 |   |   | 1,120,000   |   |   |       | 1,120  |   |          |   | 78,792    |                    |   |   | (161,076   | )      |   |   |   |   |   |   | (81,165 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Imputed Interest on Shareholder Advances                  |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   | 6,876     |                    |   |   |       |   |   |   |   |   |   |   | 6,876 |   |
| Net Loss for the Period Ending December 31, 2008          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (40,426    | )      |   |   |   |   |   |   | (40,426 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                |   |                 |   |   |              |   |   |                 |   |   | 1,120,000   |   |   |       | 1,120  |   |          |   | 85,668    |                    |   |   | (201,502   | )      |   |   |   |   |   |   | (114,714 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Imputed Interest on Shareholder Advances                  |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   | 8,888     |                    |   |   |       |   |   |   |   |   |   |   | 8,888 |   |
| Net Loss for the Period Ending December 31, 2009          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (24,105    | )      |   |   |   |   |   |   | (24,105 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                |   |                 |   |   |              |   |   |                 |   |   | 1,120,000   |   |   |       | 1,120  |   |          |   | 94,556    |                    |   |   | (225,607   | )      |   |   |   |   |   |   | (129,931 | ) |
|                                                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   |   |   |   |   |   |   |
| Issuance of Common Stock                                  |   |                 |   |   |              |   |   |                 |   |   | 19,080,000  |   |   |       | 19,080 |   |          |   | 80,920    |                    |   |   |       |   |   |   |   |   |   |   | 100,000 |   |
| Exercise of Stock Warrants                                |   |                 |   |   |              |   |   |                 |   |   | 269,636     |   |   |       | 270    |   |          |   | 1,830     |                    |   |   |       |   |   |   |   |   |   |   | 2,100 |   |
| Net Loss for the Period Ending December 31, 2010          |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   | (2,213,320 | )      |   |   |   |   |   |   | (2,213,320 | ) |
| Stock Compensation Expense                                |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   | 304,977   |                    |   |   |       |   |   |   |   |   |   |   | 304,977 |   |
| Forgiveness of Debt to a Shareholder                      |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   | 41,196    |                    |   |   |       |   |   |   |   |   |   |   | 41,196 |   |
| Conversion of Notes Payable                               |   |                 |   |   |              |   |   |                 |   |   | 80,001      |   |   |       | 80     |   |          |   | 6,359     |                    |   |   |       |   |   |   |   |   |   |   | 6,439 |   |
| Issuance of Stock Warrants in Connection with Debt Issued |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   | 2,733,507 |                    |   |   |       |   |   |   |   |   |   |   | 2,733,507 |   |
| Foreign Currency Translation Adjustment                   |   |                 |   |   |              |   |   |                 |   |   |        |   |   |       |   |   |          |   |      |                    |   |   |       |   |   |   | (81,666 | ) |   |   | (81,666 | ) |
| Balance, December 31, 2010                                |   |                 | -      |   |              | $      | -      |                 |   |   | 20,549,637  |   |   | $          | 20,550 |   |          | $      | 3,263,345 |                    |   | $      | (2,438,927 | )      |   | $ | (81,666 | ) |   | $ | 763,302 |   |

----

| COLOMBIA CLEAN POWER & FUELS, INC. |
|----------------------------------------|
| (AN EXPLORATION STAGE COMPANY)         |
| CONSOLIDATED STATEMENTS OF CASH FLOWS  |

|                                                                        |   |                               |       |   |                       |   |    | From Inception on |   |
|-----------------------------------------------------------------------------|--------|------------------------------------|------------|--------|----------------------------|--------|---------|-----------------------------|--------|
|                                                                        |   | For the Years Ended |       |   | November 6, 1996 |   |
|                                                                        |   | December 31,                  |       |   | through                    |   |
|                                                                        |   | 2010                               |       |   | 2009                       |   |    | December 31, 2010 |   |
| Cash flows from operating activities:                                       |   |                               |       |   |                       |   |    |                        |   |
| Net loss                                                                    |   | $                                  | (2,213,320 | )      |                       | $      | (24,105 | )                           |   | $ | (2,438,927 | ) |
| Adjustments to reconcile net loss to net cash used by operating activities: |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Stock compensation expense                                                  |   |                               | 304,977    |   |                       |   | -       |                        |   |   | 304,977 |   |
| Amortization of discount on note payable                                    |   |                               | 364,933    |   |                       |   | -       |                        |   |   | 364,933 |   |
| Amortization of debt issuance cost                                          |   |                               | 58,620     |   |                       |   | -       |                        |   |   | 58,620 |   |
| Unrealized gain on change in fair value of embedded conversion feature      |   |                               | (256,000   | )      |                       |   |    |                        |   |   | (256,000 | ) |
| Other                                                                       |   |                               | -          |   |                       |   | -       |                        |   |   | (4,097 | ) |
| Changes in assets and liabilities:                                          |   |                               | -          |   |                       |   | -       |                        |   |   | - |   |
| Other current assets                                                        |   |                               | (579,503   | )      |                       |   | -       |                        |   |   | (579,503 | ) |
| Other assets                                                                |   |                               | (223,638   | )      |                       |   | -       |                        |   |   | (223,638 | ) |
| Accounts payable and accrued liabilities                                    |   |                               | 1,174,715  |   |                       |   | 8,885   |                        |   |   | 1,212,758 |   |
| Accrued interest payable                                                    |   |                               | 110,845    |   |                       |   | -       |                        |   |   | 110,845 |   |
| Other non-current liabilities                                               |   |                               | 400,000    |   |                       |   | -       |                        |   |   | 400,000 |   |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Net cash used in operating activities                                       |   |                               | (858,371   | )      |                       |   | (15,220 | )                           |   |   | (1,050,032 | ) |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Cash flows from investing activities:                                       |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Increase in property and equipment                                          |   |                               | (2,058,692 | )      |                       |   | -       |                        |   |   | (2,058,692 | ) |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Net cash used in investing activities                                       |   |                               | (2,058,692 | )      |                       |   | -       |                        |   |   | (2,058,692 | ) |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Cash flows from financing activities:                                       |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Proceeds from issuance of convertible notes payable                         |   |                               | 8,000,000  |   |                       |   | -       |                        |   |   | 8,020,000 |   |
| Proceeds from issuance of common stock                                      |   |                               | 100,000    |   |                       |   | -       |                        |   |   | 154,750 |   |
| Proceeds from exercise of warrants                                          |   |                               | 2,100      |   |                       |   |    |                        |   |   | 2,100 |   |
| Advances to (payment from) officer and shareholder                          |   |                               | (75,804    | )      |                       |   | 14,500  |                        |   |   | 41,196 |   |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Net cash provided by financing activities                                   |   |                               | 8,026,296  |   |                       |   | 14,500  |                        |   |   | 8,218,046 |   |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Effect of exchange rate currency changes on cash                            |   |                               | (81,666    | )      |                       |   | -       |                        |   |   | (81,666 | ) |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Net increase (decrease) in cash                                             |   |                               | 5,027,567  |   |                       |   | (720    | )                           |   |   | 5,027,656 |   |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Cash at beginning of period                                                 |   |                               | 89         |   |                       |   | 809     |                        |   |   | - |   |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Cash at end of period                                                       |   | $                                  | 5,027,656  |   |                       | $      | 89      |                        |   | $ | 5,027,656 |   |
|                                                                        |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Supplemental disclosure of noncash financing activities:                    |   |                               |       |   |                       |   |    |                        |   |   |   |   |
| Fair value of embedded conversion feature                                   |   | $                                  | 3,072,000  |   |                       | $      | -       |                        |   | $ | 3,072,000 |   |
| Issuance of stock warrants in connection with debt issued                   |   | $                                  | 2,733,508  |   |                       | $      | -       |                        |   | $ | 2,733,508 |   |
| Issuance of common stock in connection with conversion of note payable      |   | $                                  | 6,439      |   |                       | $      | -       |                        |   | $ | 6,439 |   |
| Extinguishment of payable to a related party                                |   | $                                  | 41,196     |   |                       | $      | -       |                        |   | $ | 41,196 |   |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

|                                                          |   | Year EndedDecember 31 |       |
|---------------------------------------------------------------|--------|---------------------------------|------------|
|                                                          |   | 2010                            |       |   | 2009 |   |
| Net loss for basic and diluted earnings (loss) per share      |   | $                               | (2,213,320 | ) |   | $ | (24,105 | ) |
|                                                          |   |                            |       |   |   |   |   |   |
| Weighted average shares used in basic and diluted computation |   |                            | 18,887,765 |   |   |   | 1,120,000 |   |
|                                                          |   |                            |       |   |   |   |   |   |
| Earnings (loss) per share:                                    |   |                            |       |   |   |   |   |   |
|                                                          |   |                            |       |   |   |   |   |   |
| Basic and diluted                                             |   | $                               | (0.12      | ) |   | $ | (0.02 | ) |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

|                         |   |         |   |   |         |   |   |         |   |   | December 31, |   |
|------------------------------|--------|--------------|--------|--------|--------------|--------|--------|--------------|--------|--------|-------------------|--------|
|                         |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | 2010              |   |
| Liabilities:                 |   |         |   |   |         |   |   |         |   |   |              |   |
| Derivative liability – |   |         |   |   |         |   |   |         |   |   |              |   |
| Embedded conversion feature  |   | $            | -      |   |         | $      | -      |         |   | $      | 2,816,000         |   |   | $ | 2,816,000 |   |

|                                    |   | Derivativeliability-embeddedconversionfeature |      |   | Total Level 3 |   |
|-----------------------------------------|--------|-----------------------------------------------|-----------|--------|-------------------------|--------|
| Balance, December 31, 2009              |   | $                                             | -         |   |                    | $      | - |   |
| Issuance during the year                |   |                                          | 3,072,000 |   |                    |   | 3,072,000 |   |
| Unrealized gain on change in fair value |   |                                          | (256,000  | )      |                    |   | (256,000 | ) |
| Balance, December 31, 2010              |   |                                          | 2,816,000 |   |                    |   | 2,816,000 |   |

| 2. | PRIVATE PLACEMENT |
|----|-------------------|

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

| 3. | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES |
|----|------------------------------------------|

| 4. | CONVERTIBLE NOTES PAYABLE |
|----|---------------------------|

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

| 5. | STOCKHOLDERS’ EQUITY |
|----|----------------------------|

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

| Risk-free interest rate             |   |    | 1.98   | % |
|-------------------------------------|--------|---------|--------|---|
| Expected volatility of common stock |   |    | 76.4   | % |
| Dividend yield                      |   |    | 0      | % |
| Estimated life of options           |   | 5 years |   |

|                             |   | Number of sharessubject to option2010 |      |   | Weightedaverageexerciseprice |   |   | WeightedAverageRemainingContractualTerm |   |
|----------------------------------|--------|-----------------------------------------------------------|-----------|--------|------------------------------|--------|--------|-----------------------------------------|--------|
| Outstanding at January 1, 2010   |   |                                                      | 0         |   |                         |   | -      |                                    |   |   | - |   |
| Granted during the year          |   |                                                      | 2,023,334 |   |                         |   | 1.89   |                                    |   |   | - |   |
| Exercised                        |   |                                                      | -         |   |                         |   | -      |                                    |   |   | - |   |
| Cancelled                        |   |                                                      | (100,000  | )      |                         |   | 0.01   |                                    |   |   | - |   |
| Outstanding at December 31, 2010 |   |                                                      | 1,923,334 |   |                         | $      | 1.98   |                                    |   | 4.8 Years |   |
| Exercisable at December 31, 2010 |   |                                                      | 430,834   |   |                         | $      | 2.10   |                                    |   | 4.8 Years |   |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

|          |   |   | Stock Options Outstanding |   |      | Stock Options Exercisable |   |
|---------------|--------|--------|-------------------------------------|--------|-----------|-------------------------------------|--------|
|          |   |   |                                |   |      | Weighted-                           |   |   |   |   |   |   |   |   |   |   |
|          |   |   |                                |   |      | Average                             |   |   | Weighted- |   |   |   |   |   | Weighted- |   |
| Range of |   |   | Number                              |   |      | Remaining                           |   |   | Average |   |   | Number |   |   | Average |   |
| Exercise      |   |   | of Shares                      |   |      | Contractual                         |   |   | Exercise |   |   | of Shares |   |   | Exercise |   |
| Price         |   |   | Outstanding                         |   |      | Life in Years             |   |   | Price |   |   | Exercisable |   |   | Price |   |
| $             | 0.05   |   |                                |   | 640,000   |                                |   |   | 4.5 |   |   | $ | 0.05 |   |   |   | 160,000 |   |   | $ | 0.05 |   |
| $             | 1.50   |   |                                |   | 425,000   |                                |   |   | 4.8 |   |   | $ | 1.50 |   |   |   | 31,250 |   |   | $ | 1.50 |   |
| $             | 2.50   |   |                                |   | 458,334   |                                |   |   | 5.00 |   |   | $ | 2.50 |   |   |   | 139,584 |   |   | $ | 2.50 |   |
| $             | 5.00   |   |                                |   | 400,000   |                                |   |   | 5.00 |   |   | $ | 5.00 |   |   |   | 100,000 |   |   | $ | 5.00 |   |
|          |   |   |                                |   | 1,923,334 |                                |   |   |   |   |   |   |   |   |   |   | 430,834 |   |   |   |   |   |

|                                |   | 2010   |               |
|-------------------------------------|--------|--------|--------------------|
|                                |   |   |               |
| Risk-free interest rate             |   |   | 0.51% – 1.99 | % |
| Expected volatility of common stock |   |   | 76.4               | % |
| Dividend yield                      |   |   | 0                  | % |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

|                             |   |           |      |   | Weighted- |   |
|----------------------------------|--------|----------------|-----------|--------|-----------|--------|
|                             |   |           |      |   | Average   |   |
|                             |   | Number         |      |   | Exercise  |   |
|                             |   | of Shares |      |   | Price     |   |
|                             |   |           |      |   |      |   |
| Outstanding at December 31, 2009 |   |           | -         |   |      |   | - |   |
| Granted                          |   |           | 3,540,640 |   |      | $      | 0.25 |   |
| Exercised                        |   |           | (270,000  | )      |      | $      | 0.01 |   |
| Cancelled                        |   |           | -         |   |      |   | - |   |
|                             |   |           |      |   |      |   |   |   |
| Outstanding at December 31, 2010 |   |           | 3,270,640 |   |      | $      | 0.27 |   |

|          |   |   | Stock Warrants Outstanding |   |      | Stock Warrant Exercisable |   |
|---------------|--------|--------|--------------------------------------|--------|-----------|-------------------------------------|--------|
|          |   |   |                                 |   |      | Weighted-                           |   |   |   |   |   |   |   |   |   |   |
|          |   |   |                                 |   |      | Average                             |   |   | Weighted- |   |   |   |   |   | Weighted- |   |
| Range of |   |   | Number                               |   |      | Remaining                           |   |   | Average |   |   | Number |   |   | Average |   |
| Exercise      |   |   | of Shares                       |   |      | Contractual                         |   |   | Exercise |   |   | of Shares |   |   | Exercise |   |
| Price         |   |   | Outstanding                          |   |      | Life in Years             |   |   | Price |   |   | Exercisable |   |   | Price |   |
| $             | 0.01   |   |                                 |   | 2,930,000 |                                |   |   | 4.5 |   |   | $ | 0.01 |   |   |   | 2,930,000 |   |   | $ | 0.01 |   |
| $             | 2.50   |   |                                 |   | 340,640   |                                |   |   | 4.9 |   |   | $ | 2.50 |   |   |   | 340,640 |   |   | $ | 2.50 |   |
|          |   |   |                                 |   | 3,270,640 |                                |   |   |   |   |   |   |   |   |   |   | 3,270,640 |   |   |   |   |   |

| 6. | INCOME TAXES |
|----|--------------|

| Statutory federal income tax rate                  |   |   | 34.00  | % |
|----------------------------------------------------|--------|--------|--------|---|
| State income tax, net of federal income tax effect |   |   | 0.00   | % |
| Foreign income tax                                 |   |   | 0.00   | % |
| Valuation allowance                                |   |   | -34.00 | % |
| Effective tax rate                                 |   |   | 0.00   | % |

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

| 7. | RELATED PARTY TRANSACTIONS |
|----|----------------------------|

| 8. | COMMITMENTS AND CONTINGENCIES |
|----|-------------------------------|

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

|                     |   | Bogota    |    |   | San Anselmo |   |   |            |   |
|--------------------------|--------|-----------|---------|--------|------------------|--------|--------|-----------------|--------|
|                     |   | Operating |    |   | Operating        |   |   | Total           |   |
|                     |   | Lease     |    |   | Lease            |   |   | All Leases |   |
| Year ending December 31: |   |      |    |   |             |   |   |            |   |
| 2011                     |   |      | 69,600  |   |             |   | 17,100 |            |   |   | 86,700 |   |
| 2012                     |   |      | 69,600  |   |             |   | 20,520 |            |   |   | 90,120 |   |
|                     |   |      |    |   |             |   |   |            |   |   |   |   |
| Total                    |   | $         | 139,200 |   |             | $      | 37,620 |            |   | $ | 176,820 |   |

| 9. | SUBSEQUENT EVENTS |
|----|-------------------|

----

| Colombia Clean Power & Fuels, Inc.     |
|--------------------------------------------|
| (An Exploration Stage Company)             |
| Notes to Consolidated Financial Statements |

----