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| Nevada                          |   | 45-2671583          |
|---------------------------------|--------|---------------------|
| (State or Other Jurisdiction of |   | (I.R.S. Employer    |
| Incorporation or Organization)  |   | Identification No.) |

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

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| PART I – FINANCIAL INFORMATION                                                                                  |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                  |   |
| ITEM 1 – FINANCIAL STATEMENTS                                                                                   | 3      |
|                                                                                                                  |   |
| ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION  AND RESULTS OF OPERATIONS | 17     |
|                                                                                                                  |   |
| ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                             | 22     |
|                                                                                                                  |   |
| ITEM 4 – CONTROLS AND PROCEDURES                                                                                | 23     |
|                                                                                                                  |   |
| PART II – OTHER INFORMATION                                                                                     | 24     |
|                                                                                                                  |   |
| ITEM 1 – LEGAL PROCEEDINGS                                                                                      | 24     |
|                                                                                                                  |   |
| ITEM 1A – RISK FACTORS                                                                                          | 24     |
|                                                                                                                  |   |
| ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                            | 24     |
|                                                                                                                  |   |
| ITEM 3 – DEFAULTS UPON SENIOR SECURITIES                                                                        | 24     |
|                                                                                                                  |   |
| ITEM 4 – (REMOVED AND RESERVED)                                                                                 | 24     |
|                                                                                                                  |   |
| ITEM 5 – OTHER INFORMATION                                                                                      | 24     |
|                                                                                                                  |   |
| ITEM 6 – EXHIBITS                                                                                               | 24     |

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|                                                                                                                    |   | September 30, |       |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|---------------|--------|
|                                                                                                                    |   | 2011               |       |   | 2011          |   |
|                                                                                                                    |   | (Unaudited)        |       |   | (Audited)     |   |
| ASSETS                                                                                                                  |   |               |       |   |          |   |
| Current Assets:                                                                                                         |   |               |       |   |          |   |
| Cash                                                                                                                    |   | $                  | -          |   |          | $      | 3,641 |   |
| Other receivable                                                                                                        |   |               | -          |   |          |   | - |   |
| Deferred finance charges                                                                                                |   |               | 4,227      |   |          |   | 8,394 |   |
| Total current assets                                                                                                    |   |               | 4,227      |   |          |   | 12,035 |   |
|                                                                                                                    |   |               |       |   |          |   |   |   |
| Property and equipment, net of accumulated depreciation                                                                 |   |               | 3,643      |   |          |   | 3,938 |   |
| Total assets                                                                                                            |   | $                  | 7,870      |   |          | $      | 15,973 |   |
|                                                                                                                    |   |               |       |   |          |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                   |   |               |       |   |          |   |   |   |
|                                                                                                                    |   |               |       |   |          |   |   |   |
| Current Liabilities:                                                                                                    |   |               |       |   |          |   |   |   |
| Bank overdraft                                                                                                          |   | $                  | 323        |   |          | $      | - |   |
| Accounts payable and accrued expenses                                                                                   |   |               | 703,593    |   |          |   | 745,478 |   |
| Bank indebtedness                                                                                                       |   |               | 148,064    |   |          |   | 158,307 |   |
| Loans payable-short term                                                                                                |   |               | 938,448    |   |          |   | 964,087 |   |
| Convertible promissory notes                                                                                            |   |               | 2,382,226  |   |          |   | 163,235 |   |
| Due to stockholders                                                                                                     |   |               | 489        |   |          |   | 523 |   |
| Total current liabilities                                                                                               |   |               | 4,173,143  |   |          |   | 2,031,630 |   |
|                                                                                                                    |   |               |       |   |          |   |   |   |
| Convertible loans payable, net of short-term portion                                                                    |   |               | 419,651    |   |          |   | 364,062 |   |
|                                                                                                                    |   |               |       |   |          |   |   |   |
|                                                                                                                    |   |               | 4,592,794  |   |          |   | 2,423,690 |   |
| Stockholders' Deficit:                                                                                                  |   |               |       |   |          |   |   |   |
| Preferred stock, $0.001 par value, 100,000,000 shares authorized:8,000,000 issued and outstanding at September 30, 2011 |   |               | 8,000      |   |          |   | - |   |
| Common stock; $.001 par value; 500,000,000 shares authorized;304,147,714 issued and outstanding                         |   |               | 304,148    |   |          |   | 304,148 |   |
| Collateralized shares issued                                                                                            |   |               | (137,500   | )      |          |   | (137,500 | ) |
| Additional paid-in capital                                                                                              |   |               | 3,223,529  |   |          |   | 3,135,529 |   |
| Accumulated other comprehensive loss                                                                                    |   |               | (79,053    | )      |          |   | (171,509 | ) |
| Deficit accumulated during the development stage                                                                        |   |               | (7,904,048 | )      |          |   | (5,538,385 | ) |
|                                                                                                                    |   |               |       |   |          |   |   |   |
| Total stockholders’ deficit                                                                                       |   |               | (4,584,924 | )      |          |   | (2,407,717 | ) |
|                                                                                                                    |   |               |       |   |          |   |   |   |
| Total liabilities and stockholders’ deficit                                                                       |   | $                  | 7,870      |   |          | $      | 15,973 |   |

----

|                                                         |   |                                                 |        |   | Cumulative from         |   |
|--------------------------------------------------------------|--------|------------------------------------------------------|-------------|--------|------------------------------|--------|
|                                                         |   |                                                 |        |   | Inception                    |   |
|                                                         |   |                                                 |        |   | (November 7, 2005) |   |
|                                                         |   | Three Months ended September 30, |        |   | Through                      |   |
|                                                         |   | 2011                                                 |        |   | 2010                         |   |   | September 30, 2011 |   |
|                                                         |   | (Unaudited)                                          |        |   | (Unaudited)                  |   |   | (Unaudited) |   |
| Revenues:                                                    |   | $                                                    | -           |   |                         | $      | - |   |   | $ | 248,290 |   |
|                                                         |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Operating expenses:                                          |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Selling, General and administration expenses                 |   |                                                 | 228,357     |   |                         |   | 69,742 |   |   |   | 5,153,847 |   |
| Total operating expenses                                     |   |                                                 | 228,357     |   |                         |   | 69,742 |   |   |   | 5,153,847 |   |
|                                                         |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Operating loss                                               |   |                                                 | (228,357    | )      |                         |   | (69,742 | ) |   |   | (4,905,557 | ) |
|                                                         |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Other expense:                                               |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Equity in net loss of an affiliated company                  |   |                                                 | -           |   |                         |   | - |   |   |   | (282,474 | ) |
| Impairment of an investment in affiliated company            |   |                                                 | -           |   |                         |   | - |   |   |   | (78,783 | ) |
| Gain on debt restructuring                                   |   |                                                 | -           |   |                         |   | - |   |   |   | 78,684 |   |
| Interest expense                                             |   |                                                 | (63,660     | )      |                         |   | (49,746 | ) |   |   | (642,272 | ) |
|                                                         |   |                                                 | (63,660     | )      |                         |   | (49,746 | ) |   |   | (924,845 | ) |
|                                                         |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Net loss                                                     |   |                                                 | (292,017    | )      |                         |   | (119,488 | ) |   |   | (5,830,402 | ) |
|                                                         |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                      |   |                                                 | 92,456      |   |                         |   | (46,136 | ) |   |   | (79,053 | ) |
|                                                         |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Comprehensive loss                                           |   | $                                                    | (199,561    | )      |                         | $      | (165,624 | ) |   | $ | (5,751,349 | ) |
|                                                         |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Basic and diluted loss per common share                      |   | $                                                    | (0.00       | )      |                         | $      | (0.00 | ) |   |   |   |   |
|                                                         |   |                                                 |        |   |                         |   |   |   |   |   |   |   |
| Basic and diluted weighted average common shares outstanding |   |                                                 | 304,147,714 |   |                         |   | 97,646,022 |   |   |   |   |   |

----

|                                                                        |   |                                                 |      |   |        |   |     | Cumulative from         |   |
|-----------------------------------------------------------------------------|--------|------------------------------------------------------|-----------|--------|-------------|--------|----------|------------------------------|--------|
|                                                                        |   |                                                 |      |   |        |   |     | Inception                    |   |
|                                                                        |   |                                                 |      |   |        |   |     | (November 7, 2005) |   |
|                                                                        |   | Three Months Ended September 30, |      |   | Through     |   |
|                                                                        |   | 2011                                                 |      |   | 2010        |   |     | September 30, 2011 |   |
|                                                                        |   | (Unaudited)                                          |      |   | (Unaudited) |   |     | (Unaudited)                  |   |
| Cash flows from operating activities:                                       |   |                                                 |      |   |        |   |     |                         |   |
| Net loss                                                                    |   | $                                                    | (292,017  | )      |        | $      | (119,488 | )                            |   | $ | (5,830,402 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Equity in net of an affiliated company                                      |   |                                                 | -         |   |        |   | -        |                         |   |   | 282,474 |   |
| Impairment in investment of an affiliated company                           |   |                                                 | -         |   |        |   | -        |                         |   |   | 78,213 |   |
| Depreciation                                                                |   |                                                 | 295       |   |        |   | 398      |                         |   |   | 15,267 |   |
| Stock issued on reverse merger                                              |   |                                                 | -         |   |        |   | -        |                         |   |   | 35,579 |   |
| Gain on forgiveness or restructuring of debt                                |   |                                                 | -         |   |        |   | -        |                         |   |   | (385,567 | ) |
| Fair value of options                                                       |   |                                                 | -         |   |        |   | -        |                         |   |   | 158,436 |   |
| Amortization of debt discount                                               |   |                                                 | 15,938    |   |        |   | -        |                         |   |   | 15,938 |   |
| Amortization of deferred finance charges                                    |   |                                                 | 3,624     |   |        |   | 13,695   |                         |   |   | 54,619 |   |
| Impairment of intangible asset                                              |   |                                                 | -         |   |        |   | -        |                         |   |   | 10,279 |   |
| Fair value of common shares issued for services                             |   |                                                 | -         |   |        |   | -        |                         |   |   | 63,000 |   |
| Fair value of preferred shares issued for services                          |   |                                                 | 96,000    |   |        |   | -        |                         |   |   | 96,000 |   |
| Changes in operating assets and liabilities:                                |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Other receivable                                                            |   |                                                 | -         |   |        |   | (23      | )                            |   |   | 8,423 |   |
| Accounts payable and accrued liabilities                                    |   |                                                 | (6,599    | )      |        |   | 41,480   |                         |   |   | 2,969,563 |   |
| Accrued interest                                                            |   |                                                 | 64,819    |   |        |   | -        |                         |   |   | 251,428 |   |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Net cash used in operating activities                                       |   |                                                 | (117,940  | )      |        |   | (63,938  | )                            |   |   | (2,176,750 | ) |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Cash flows used in investing activities:                                    |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Capital expenditures                                                        |   |                                                 | -         |   |        |   | -        |                         |   |   | (19,249 | ) |
| Acquisition of investment in affiliated company                             |   |                                                 | -         |   |        |   | -        |                         |   |   | (277,102 | ) |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Net cash used in investing activities                                       |   |                                                 | -         |   |        |   | -        |                         |   |   | (296,351 | ) |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Cash flows from financing activities:                                       |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Proceeds from loans                                                         |   |                                                 | -         |   |        |   | 36,050   |                         |   |   | 1,881,472 |   |
| Repayment of loans                                                          |   |                                                 | -         |   |        |   | (9,141   | )                            |   |   | (217,811 | ) |
| Proceeds from bank indebtedness                                             |   |                                                 | -         |   |        |   | -        |                         |   |   | 141,691 |   |
| Repayment of bank indebtedness                                              |   |                                                 | -         |   |        |   | (9,527   | )                            |   |   | (16,392 | ) |
| Proceeds from issuance of capital stock                                     |   |                                                 | -         |   |        |   | -        |                         |   |   | 131,074 |   |
| Proceeds from stockholders' advances                                        |   |                                                 | -         |   |        |   | 41,238   |                         |   |   | 1,710,419 |   |
| Repayment of stockholders' advances                                         |   |                                                 | -         |   |        |   | -        |                         |   |   | (1,327,888 | ) |
| Proceeds from the issuance of convertible promissory notes                  |   |                                                 | 114,000   |   |        |   | -        |                         |   |   | 238,301 |   |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Net cash provided by financing activities                                   |   |                                                 | 114,000   |   |        |   | 58,620   |                         |   |   | 2,540,866 |   |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Effect of exchange rate on cash                                             |   |                                                 | (24       | )      |        |   | 223      |                         |   |   | (68,088 | ) |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Net decrease in cash                                                        |   |                                                 | (3,964    | )      |        |   | (5,095   | )                            |   |   | (323 | ) |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Cash, beginning of period                                                   |   |                                                 | 3,641     |   |        |   | 9,110    |                         |   |   | - |   |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Cash, end of period                                                         |   | $                                                    | (323      | )      |        | $      | 4,015    |                         |   | $ | (323 | ) |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Supplemental disclosures of cash flow information:                          |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Cash paid for interest                                                      |   | $                                                    | -         |   |        | $      | -        |                         |   | $ | - |   |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Cash paid for income taxes                                                  |   | $                                                    | -         |   |        | $      | -        |                         |   | $ | - |   |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Non-cash investing and financing activities:                                |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
|                                                                        |   |                                                 |      |   |        |   |     |                         |   |   |   |   |
| Fair value of shares to satisfy obligations under loan payable              |   | $                                                    | -         |   |        | $      | 48,000   |                         |   | $ | 83,670 |   |
| Fair value of shares to satisfy certain liabilities                         |   | $                                                    | -         |   |        | $      | -        |                         |   | $ | 180,000 |   |
| Fair value of shares to satisfy obligations to stockholders                 |   | $                                                    | -         |   |        | $      | -        |                         |   | $ | 261,539 |   |
| Carrying value of shares issued from treasury stock                         |   | $                                                    | -         |   |        | $      | -        |                         |   | $ | 17,835 |   |
| Fair value of convertible notes issued  related to acquisition    |   | $                                                    | 2,073,646 |   |        | $      | -        |                         |   | $ | 2,073,646 |   |
| Fair value of loans payable issued to satisfy certain liabilities           |   | $                                                    | -         |   |        | $      | -        |                         |   | $ | - |   |

----

|                                                              |   |                     |      |   |         |   |   |   |   |   |           |   |   | Discount on |    |   |          |   |     |          |   |   |            |   |   | Accumulated Other |    |   | RetainedEarnings |   |      | Total            |   |
|------------------------------------------------------------------------|--------|--------------------------|-----------|--------|--------------|--------|--------|--------|--------|--------|----------------|--------|--------|-------------|---------|--------|---------------|--------|----------|---------------|--------|--------|-----------------|--------|--------|-------------------|---------|--------|------------------|--------|-----------|------------------|--------|
|                                                                   |   | Series A Preferred Stock |      |   | Common Stock |   |   | Common |   |   | Collateralized |   |   | Treasury    |    |   | Additional    |   |     | Comprehensive |   |   | (Accumulated    |   |   | Stockholders'     |    |
|                                                         |   | Shares                   |      |   | $            |   |   | Shares |   |   | $              |   |   | Stock       |    |   | Shares Issued |   |     | Stock         |   |   | Paid-in Capital |   |   | Income (loss)     |    |   | Deficit)         |   |      | Equity (Deficit) |   |
|                                                                   |   |                     |      |   |         |   |   |   |   |   |           |   |   |        |    |   |          |   |     |          |   |   |            |   |   |              |    |   |             |   |      |             |   |   |   |
| Balance, November 7, 2005                                              |   |                     | -         |   |         | $      | -      |   |   |   | 39,999,750     |   |   | $           | 40,000  |   |          | $      | (40,000  | )             |   | $      | -               |   |   | $                 | -       |   |             | $      | -         |             |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                   |   |                     |      |   |         |   |   |   |   |   |           |   |   |        |    |   |          |   |     |          |   |   |            |   |   |              |    |   |             |   |      |             |   |   | - |   |   |   |   |   |   |   |   |   |
| Common stock issued at inception                                       |   |                     | -         |   |         |   | -      |   |   |   | 24,000,000     |   |   |        | 24,000  |   |          |   | (23,900  | )             |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | - |   |   |   | 100 |   |
| Common stock issued for cash                                           |   |                     | -         |   |         |   | -      |   |   |   | 3,200,000      |   |   |        | 3,200   |   |          |   | 12,800   |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | - |   |   |   | 16,000 |   |
| Net income                                                             |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   | 467 |   |   |   | 467 |   |
| Ending balance, December 31, 2005                                      |   |                     | -         |   |         |   | -      |   |   |   | 67,199,750     |   |   |        | 67,200  |   |          |   | (51,100  | )             |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   | 467 |   |   |   | 16,567 |   |
|                                                                   |   |                     |      |   |         |   |   |   |   |   |           |   |   |        |    |   |          |   |     |          |   |   |            |   |   |              |    |   |             |   |      |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash                                           |   |                     | -         |   |         |   | -      |   |   |   | 2,250,000      |   |   |        | 2,250   |   |          |   | 9,000    |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | - |   |   |   | 11,250 |   |
| Common stock issued for services rendered                              |   |                     | -         |   |         |   | -      |   |   |   | 400,000        |   |   |        | 400     |   |          |   | 5,600    |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | - |   |   |   | 6,000 |   |
| Services contributed by stockholder                                    |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | 10,320   |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | - |   |   |   | 10,320 |   |
| Net loss                                                               |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | (24,960 | ) |   |   | (24,960 | ) |
| Ending balance, December 31, 2006                                      |   |                     | -         |   |         |   | -      |   |   |   | 69,849,750     |   |   |        | 69,850  |   |          |   | (26,180  | )             |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   | (24,493 | ) |   |   | 19,177 |   |
|                                                                   |   |                     |      |   |         |   |   |   |   |   |           |   |   |        |    |   |          |   |     |          |   |   |            |   |   |              |    |   |             |   |      |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholder contributions                                              |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 6,085     |             |   |   | - |   |   |   | - |   |   |   | 6,085 |   |
| Services contributed by stockholder                                    |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 2,400     |             |   |   | - |   |   |   | - |   |   |   | 2,400 |   |
| Net loss                                                               |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | (38,862 | ) |   |   | (38,862 | ) |
| Ending balance, December 31, 2007                                      |   |                     | -         |   |         |   | -      |   |   |   | 69,849,750     |   |   |        | 69,850  |   |          |   | (26,180  | )             |   |   | -               |   |   |              | -       |   |             |   | 8,485     |             |   |   | - |   |   |   | (63,355 | ) |   |   | (11,200 | ) |
|                                                                   |   |                     |      |   |         |   |   |   |   |   |           |   |   |        |    |   |          |   |     |          |   |   |            |   |   |              |    |   |             |   |      |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for cash                                           |   |                     | -         |   |         |   | -      |   |   |   | 10,000         |   |   |        | 10      |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | - |   |   |   | 10 |   |
| Stockholder contributions                                              |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 4,174     |             |   |   | - |   |   |   | - |   |   |   | 4,174 |   |
| Services contributed by stockholder                                    |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 1,700     |             |   |   | - |   |   |   | - |   |   |   | 1,700 |   |
| Recapitalization on reverse merger                                     |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | (8,015   | )             |   |   | -               |   |   |              | -       |   |             |   | (14,359   | )                |   |   | (51,077 | ) |   |   | (802,144 | ) |   |   | (875,595 | ) |
| Foreign currency translation adjustment                                |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | (30,722 | ) |   |   | - |   |   |   | (30,722 | ) |
| Net loss                                                               |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   | (999,247 | ) |   |   | (999,247 | ) |
| Ending balance, June 30, 2008                                          |   |                     | -         |   |         |   | -      |   |   |   | 69,859,750     |   |   |        | 69,860  |   |          |   | (34,195  | )             |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | (81,799 | ) |   |   | (1,864,746 | ) |   |   | (1,910,880 | ) |
|                                                                   |   |                     |      |   |         |   |   |   |   |   |           |   |   |        |    |   |          |   |     |          |   |   |            |   |   |              |    |   |             |   |      |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock cancellation                                                     |   |                     | -         |   |         |   | -      |   |   |   | (23,000,000    | )      |   |        | (23,000 | )      |          |   | 23,000   |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   |   |   |   |   | - |   |
| Assumptions of liabilities and loan on reverse merger transaction      |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | (105,029 | )             |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   |   |   |   |   | (105,029 | ) |
| Foreign currency translation adjustment                                |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   |     |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | 232,841 |   |   |   |   |   |   |   | 232,841 |   |
| Net loss                                                               |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   | (1,158,534 | ) |   |   | (1,158,534 | ) |
| Ending balance, June 30, 2009                                          |   |                     | -         |   |         |   | -      |   |   |   | 46,859,750     |   |   |        | 46,860  |   |          |   | (116,224 | )             |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | 151,042 |   |   |   | (3,023,280 | ) |   |   | (2,941,602 | ) |
|                                                                   |   |                     |      |   |         |   |   |   |   |   |           |   |   |        |    |   |          |   |     |          |   |   |            |   |   |              |    |   |             |   |      |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for market awareness                                     |   |                     | -         |   |         |   | -      |   |   |   | 3,280,000      |   |   |        | 3,280   |   |          |   | (3,280   | )             |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | - |   |   |   | - |   |
| Shares issued for cash                                                 |   |                     | -         |   |         |   | -      |   |   |   | 300,000        |   |   |        | 300     |   |          |   | 119,504  |          |   |   | -               |   |   |              | -       |   |             |   | 11,184    |             |   |   | - |   |   |   | - |   |   |   | 130,988 |   |
| Shares issued for services rendered                                    |   |                     | -         |   |         |   | -      |   |   |   | 30,300,000     |   |   |        | 30,300  |   |          |   | -        |          |   |   | (137,500        | )      |   |              | -       |   |             |   | 1,143,200 |             |   |   | - |   |   |   | - |   |   |   | 1,036,000 |   |
| Shares issued from term note                                           |   |                     | -         |   |         |   | -      |   |   |   | 1,500,000      |   |   |        | 1,500   |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 388,397   |             |   |   | - |   |   |   | - |   |   |   | 389,897 |   |
| Shares issued to extinguish debt                                       |   |                     | -         |   |         |   | -      |   |   |   | 27,000,000     |   |   |        | 27,000  |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 138,500   |             |   |   | - |   |   |   | - |   |   |   | 165,500 |   |
| Shares returned to treasury                                            |   |                     | -         |   |         |   | -      |   |   |   | (15,286,035    | )      |   |        | (15,286 | )      |          |   | -        |          |   |   | -               |   |   |              | 15,286  |   |             |   | -         |             |   |   | - |   |   |   | - |   |   |   | - |   |
| Options issued                                                         |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 158,436   |             |   |   | - |   |   |   | - |   |   |   | 158,436 |   |
| Forgiveness of debt                                                    |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 898,191   |             |   |   | - |   |   |   | - |   |   |   | 898,191 |   |
| Foreign currency translation                                           |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | (205,736 | ) |   |   | - |   |   |   | (205,736 | ) |
| Net loss                                                               |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   | (1,599,348 | ) |   |   | (1,599,348 | ) |
| Ending balance, June 30, 2010                                          |   |                     | -         |   |         |   | -      |   |   |   | 93,953,715     |   |   |        | 93,954  |   |          |   | -        |          |   |   | (137,500        | )      |   |              | 15,286  |   |             |   | 2,737,908 |             |   |   | (54,694 | ) |   |   | (4,622,628 | ) |   |   | (1,967,674 | ) |
|                                                                   |   |                     |      |   |         |   |   |   |   |   |           |   |   |        |    |   |          |   |     |          |   |   |            |   |   |              |    |   |             |   |      |             |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of shares issued for services                               |   |                     | -         |   |         |   | -      |   |   |   | 23,000,000     |   |   |        | 23,000  |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 40,000    |             |   |   | - |   |   |   | - |   |   |   | 63,000 |   |
| Fair value of shares issued in lieu of interest                        |   |                     | -         |   |         |   | -      |   |   |   | 1,500,000      |   |   |        | 1,500   |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 3,000     |             |   |   | - |   |   |   | - |   |   |   | 4,500 |   |
| Fair value of shares issued to satisfy obligations under loans payable |   |                     | -         |   |         |   | -      |   |   |   | 37,498,000     |   |   |        | 37,498  |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 46,172    |             |   |   | - |   |   |   | - |   |   |   | 83,670 |   |
| Fair value of shares issued to satisfy certain liabilities             |   |                     | -         |   |         |   | -      |   |   |   | 61,000,000     |   |   |        | 61,000  |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 119,000   |             |   |   | - |   |   |   | - |   |   |   | 180,000 |   |
| Fair value of shares to satisfy obligations to shareholders            |   |                     | -         |   |         |   | -      |   |   |   | 73,160,999     |   |   |        | 73,161  |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 188,198   |             |   |   | - |   |   |   | - |   |   |   | 261,359 |   |
| Shares issued from treasury                                            |   |                     | -         |   |         |   | -      |   |   |   | 17,835,000     |   |   |        | 17,835  |   |          |   | -        |          |   |   | -               |   |   |              | (15,286 | )      |             |   | (2,549    | )                |   |   | - |   |   |   | - |   |   |   | - |   |
| Shares returned to treasury                                            |   |                     | -         |   |         |   | -      |   |   |   | (3,800,000     | )      |   |        | (3,800  | )      |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 3,800     |             |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreign currency translation                                           |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | (116,815 | ) |   |   | - |   |   |   | (116,815 | ) |
| Net loss                                                               |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   |   |   |   |   | (915,757 | ) |   |   | (915,757 | ) |
| Ending balance, June 30, 2011                                          |   |                     | -         |   |         |   | -      |   |   |   | 304,147,714    |   |   | $           | 304,148 |   |          |   | -        |          |   |   | (137,500        | )      |   |              | -       |   |             |   | 3,135,529 |             |   |   | (171,509 | ) |   |   | (5,538,385 | ) |   |   | (2,407,717 | ) |
| Fair value of preferred stock issued for services                      |   |                     | 8,000,000 |   |         |   | 8,000  |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | 88,000    |             |   |   | - |   |   |   | - |   |   |   | 96,000 |   |
| Foreign currency translation                                           |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | 92,456 |   |   |   | - |   |   |   | 92,456 |   |
| Distributions                                                          |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | (2,073,646 | ) |   |   | (2,073,646 | ) |
| Net loss                                                               |   |                     | -         |   |         |   | -      |   |   |   | -              |   |   |        | -       |   |          |   | -        |          |   |   | -               |   |   |              | -       |   |             |   | -         |             |   |   | - |   |   |   | (292,017 | ) |   |   | (292,017 | ) |
| Ending balance, September 30, 2011 (unaudited)                         |   |                     | 8,000,000 |   |         | $      | 8,000  |   |   |   | 304,147,714    |   |   | $           | 304,148 |   |          |   | -        |          |   | $      | (137,500        | )      |   | $                 | -       |   |             | $      | 3,223,529 |             |   | $ | (79,053 | ) |   | $ | (7,904,048 | ) |   | $ | (4,584,924 | ) |

----

| 1. | Organization, Development Stage Activities, and Going Concern |
|----|---------------------------------------------------------------|

----

| 2. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

|   | a) | Basis of Presentation |
|--------|----|-----------------------|

|   | b) | Cash and cash equivalents |
|--------|----|---------------------------|

|   | c) | Equipment, Net |
|--------|----|----------------|

|   | d) | Impairment of Long Lived Assets |
|--------|----|---------------------------------|

|   | e) | Accounts Receivable |
|--------|----|---------------------|

|   | f) | Deferred Finance Charges |
|--------|----|--------------------------|

----

|   | g) | Revenue Recognition |
|--------|----|---------------------|

|   | h) | Equity Investments |
|--------|----|--------------------|

|   | i) | Income Taxes |
|--------|----|--------------|

|   | j) | Foreign Currency Translation |
|--------|----|------------------------------|

|   | k) | Comprehensive Income or Loss |
|--------|----|------------------------------|

|   | l) | Earnings or Loss Per Share |
|--------|----|----------------------------|

|   | m) | Use of Estimates |
|--------|----|------------------|

----

|   | o) | Recent Accounting Pronouncements |
|--------|----|----------------------------------|

| 3. | Fair Value Measurements |
|----|-------------------------|

| 4. | Equipment, Net |
|----|----------------|

| 5. | Intangible Asset |
|----|------------------|

----

| 6. | Bank Indebtedness |
|----|-------------------|

| 7.  | Loans payable and convertible promissory notes |
|----------|------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                        |   | September 30, |       |   | June 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                        |   | 2011               |       |   | 2011          |   |
| Loans payable, bearing interest at rates between 10% and 18% per annum. Interest payable monthly. These loans are past due, unsecured and payable on demand.  Accrued interest of $98,072 and $90,926 at September 30, 2011 and June 30 2011, respectively.                                                                                                                       |   |               |       |   |          |   |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |               |       |   |          |   |
| Total Loans payable                                                                                                                                                                                                                                                                                                                                                                         |   | $                  | 964,080    |   |          | $      | 992,085 |   |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |               |       |   |          |   |   |   |
| Convertible promissory notes, bearing interest between 5% and 18% per annum, maturing between December 2008 and November 2012. Interest payable at maturity. The promissory notes are convertible at any time at the option of the holder, into shares of common stock at a rate ranging from $0.01 to 35% discount of market.                                                              |   |               |       |   |          |   |   |   |
| Accrued interest of $53,245 and $45,667 at September 30, 2011 and June 20, 2011.                                                                                                                                                                                                                                                                                                            |   | $                  | 699,508    |   |          | $      | 543,235 |   |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |               |       |   |          |   |   |   |
| Less: unamortized discount                                                                                                                                                                                                                                                                                                                                                                  |   | $                  | -          |   |          | $      | (15,938 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |               |       |   |          |   |   |   |
| Convertible promissory notes assumed in accordance with asset purchase agreement with Media Exchange Group bearing interest between 5% to 8% per annum, convertible into shares of common stock at a rate ranging from $0.004 to $0.025.Accrued interest acquired as of July 2011 (acquisition date) totaled $57,447 and accrued interest from July 2011 to September 2011 totaled $28,723. |   | $                  | 2,102,369  |   |          | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |               |       |   |          |   |   |   |
| Less: short-term portion                                                                                                                                                                                                                                                                                                                                                                    |   | $                  | (2,382,226 | )      |          | $      | (163,235 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                        |   |               |       |   |          |   |   |   |
| Convertible promissory notes-long-term portion                                                                                                                                                                                                                                                                                                                                              |   | $                  | 419,651    |   |          | $      | 364,062 |   |

----

| 8. | Due to Stockholders |
|----|---------------------|

| 9. | Certain Related Party Transactions |
|----|------------------------------------|

| 10. | Common Stock |
|-----|--------------|

|                                    |   | Number ofShares ofCommon Stock |       |   | Fair Value atIssuance |   |    | Fair Value atIssuance(per share) |   |
|-----------------------------------------|--------|-----------------------------------------------|------------|--------|---------------------------------|--------|---------|-------------------------------------------------|--------|
|                                    |   |                                          |       |   |                            |   |    |                                            |   |
| Services performed                      |   |                                          | 23,000,000 |   |                            | $      | 63,000  |                                            |   | $ | 0.002-0.003 |   |
| Interest payment                        |   |                                          | 1,500,000  |   |                            |   | 4,500   |                                            |   |   | 0.003 |   |
| Satisfy obligations under loans payable |   |                                          | 37,498,000 |   |                            |   | 83,670  |                                            |   |   | 0.002-0.003 |   |
| Satisfy certain liabilities             |   |                                          | 61,000,000 |   |                            |   | 180,000 |                                            |   |   | 0.002-0.003 |   |
| Satisfy due to shareholders             |   |                                          | 73,160,999 |   |                            |   | 261,359 |                                            |   |   | 0.003-.004 |   |

----

----

|                                         |   | Options |      |   | WeightedAverageExercisePrice |   |   | WeightedAverageContractualTerms |   |   | AggregateIntrinsicValue |   |
|----------------------------------------------|--------|---------|-----------|--------|------------------------------|--------|--------|---------------------------------|--------|--------|-------------------------|--------|
| Outstanding at June 30, 2009                 |   |    | -         |   |                         | $      | -      |                            |   |   | -                       |   |   |   |   |
|                                         |   |    |      |   |                         |   |   |                            |   |   |                    |   |   |   |   |
| Granted                                      |   |    | 2,500,000 |   |                         |   | 0.15   |                            |   |   |                    |   |   |   |   |
| Exercised                                    |   |    | -         |   |                         |   | -      |                            |   |   |                    |   |   |   |   |
| Expired                                      |   |    | -         |   |                         |   | -      |                            |   |   |                    |   |   |   |   |
| Outstanding at June 30, 2010                 |   |    | 2,500,000 |   |                         |   | 0.15   |                            |   |   | 2.48                    |   |   | $ | - |   |
|                                         |   |    |      |   |                         |   |   |                            |   |   |                    |   |   |   |   |   |
| Granted                                      |   |    | -         |   |                         |   | -      |                            |   |   |                    |   |   |   |   |   |
| Exercised                                    |   |    | -         |   |                         |   | -      |                            |   |   |                    |   |   |   |   |   |
| Expired                                      |   |    | -         |   |                         |   | -      |                            |   |   |                    |   |   |   |   |   |
| Outstanding at June 30, 2011                 |   |    | 2,500,000 |   |                         | $      | 0.15   |                            |   |   | 1.48                    |   |   | $ | - |   |
|                                         |   |    |      |   |                         |   |   |                            |   |   |                    |   |   |   |   |   |
| Exercisable and vested at June 30, 2011      |   |    | 2,500,000 |   |                         | $      | 0.15   |                            |   |   | 1.48                    |   |   | $ | - |   |
| Granted                                      |   |    | -         |   |                         |   | -      |                            |   |   |                    |   |   |   |   |   |
| Exercised                                    |   |    | -         |   |                         |   | -      |                            |   |   |                    |   |   |   |   |   |
| Expired                                      |   |    | -         |   |                         |   | -      |                            |   |   |                    |   |   |   |   |   |
| Outstanding at September 30, 2011            |   |    | 2,500,000 |   |                         | $      | 0.15   |                            |   |   | 1.48                    |   |   | $ | - |   |
|                                         |   |    |      |   |                         |   |   |                            |   |   |                    |   |   |   |   |   |
| Exercisable and vested at September 30, 2011 |   |    | 2,500,000 |   |                         | $      | 0.15   |                            |   |   | 1.48                    |   |   | $ | - |   |

| 11. | Legal Proceedings |
|-----|-------------------|

| 12. | Acquisition |
|-----|-------------|

----

|                                                   |   | For the threemonths endedSeptember 30, 2010 |       |
|--------------------------------------------------------|--------|----------------------------------------------------------------------|------------|
|                                                   |   | (UNAUDITED)                                                          |       |
| Net revenues                                           |   | $                                                                    | -          |   |
| Net profit (loss)                                      |   | $                                                                    | (356,216   | ) |
| Net profit (loss) per share from continuing operations |   | $                                                                    | (0.00      | ) |
| Weighted average number of shares - Basic and diluted  |   |                                                                 | 97,646,022 |   |

----

----

----

----

----

|   | · | Amortization of debt discount of  approximately $16,000; |
|--------|--------|--------------------------------------------------------------------|

|   | · | Fair value of preferred shares issued for services of $96,000; |
|--------|--------|----------------------------------------------------------------|

|   | · | Amortization of deferred finance charges of  approximately $3,600; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | Depreciation of approximately $300; |
|--------|--------|-------------------------------------|

|   | · | A decrease in our accounts payable and accrued liabilities expenses of approximately $6,600; |
|--------|--------|----------------------------------------------------------------------------------------------|

----

|   | · | An increase of accrued interest of approximately $65,000, resulting from the issuance of assumed loans as a result of an acquisition; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Amortization of deferred financing of  approximately $13,700; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | Depreciation of approximately $400; |
|--------|--------|-------------------------------------|

|   | · | An increase in our accounts payable and accrued liabilities expenses of approximately $41,500, resulting from slower payment processing due to our financial condition. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Consorteum Holdings, Inc. |   |
|-------------------------------------|--------|
| RESULTS OF OPERATIONS     |   |
|                                |   |   |   |   |   |   |   | Increase/ |   |   | Increase/ |   |
|                                |   | Three Months ended |   |   | (Decrease) |   |   | (Decrease) |   |
|                                |   | September 30, |   |   | in $ 2011 |   |   | in % 2011 |   |
|                                |   | 2011 |   |   | 2010 |   |   | vs 2010 |   |   | vs 2010 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues:                           |   | $ | - |   |   | $ | - |   |   | $ | - |   |   |   | 0.0 | % |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative |   |   | 228,357 |   |   |   | 69,742 |   |   |   | 158,615 |   |   |   | 227.4 | % |
| Total operating expenses            |   |   | 228,357 |   |   |   | 69,742 |   |   |   | 158,615 |   |   |   | 227.4 | % |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                      |   |   | (228,357 | ) |   |   | (69,742 | ) |   |   | (158,615 | ) |   |   | 227.4 | % |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other expense:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                    |   |   | (63,660 | ) |   |   | (49,746 | ) |   |   | (13,914 | ) |   |   | 28.0 | % |
|                                |   |   | (63,660 | ) |   |   | (49,746 | ) |   |   | (13,914 | ) |   |   | 28.0 | % |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                            |   | $ | (292,017 | ) |   | $ | (119,488 | ) |   | $ | (172,529 | ) |   |   | 144.4 | % |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NM: Not Meaningful                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|   | · | While there were internal controls and procedures in place that relate to financial reporting and the prevention and detection of material misstatements, these controls did not meet the required documentation and effectiveness requirements under the Sarbanes-Oxley Act (“SOX”) and therefore, management could not certify that these controls were correctly implemented.  As a result, it was management’s opinion that the lack of documentation warranted a material weakness in the financial reporting process. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our disclosure controls and procedures were not effective to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Financial Officer, as appropriate to allow timely decisions.  Inadequate controls include the lack of procedures used for identifying, determining, and calculating required disclosures and other supplementary information requirements. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | There is lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by one consultant.  This weakness is due to our lack of working capital to hire additional staff during the period covered by this report. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                     | CONSORTEUM HOLDINGS, INC.                           |
|--------------------------|-----------------------------------------------------|
|                     |                                                |   |
| Dated: November 21, 2011 |                                                |   |
|                     |                                                |   |
|                     | By:                                                 |   /s/Joseph R. Cellura |
|                     |                                                | Joseph R. Cellura |
|                     | Chief Executive Officer and Chief Financial Officer |
|                     | (Principal Executive Officer, Principal Financial   |
|                     | Officer and Principal Accounting Officer)           |

| Name            |   | Position                      |   | Date         |
|----------------------|--------|------------------------------------|--------|-------------------|
|                 |   |                               |   |              |
| /s/Joseph R. Cellura |   | Chief Executive Officer, Chief     |   | November 21, 2011 |
| Joseph R. Cellura    |   | Financial Officer, Chairman of     |   |              |
|                 |   | the Board of Directors             |   |              |
|                 |   | (Principal Executive Officer,      |   |              |
|                 |   | Principal Financial Officer)  |   |              |
|                 |   |                               |   |              |
| /s/Craig Fielding    |   | Director                           |   | November 21, 2011 |
| Craig Fielding       |   |                               |   |              |

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| Exhibit No. |   | Description                                                                                                                                                                                   |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                          |
| 10.1        |   | Acquisition Agreement with Tarsin LTD, dated October 4, 20111                                                                                                                                 |
|        |   |                                                                                                                                                                                          |
| 10.1        |   | Amendment No. 1 to Acquisition Agreement with Tarsin LTD, dated November 4, 20112                                                                                                             |
|        |   |                                                                                                                                                                                          |
| 31.1        |   | Certification of Chief Executive Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|        |   |                                                                                                                                                                                          |
| 31.2        |   | Certification of Chief Financial Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|        |   |                                                                                                                                                                                          |
| 32          |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                 |

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