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1

UNITED STATESSECURITIES
EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-KSB

ANNUAL REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the Fiscal Year Ended **December 31, 2004**

Commission file number **0-29670**

DRUCKER, INC.(Name
of small business issuer in its charter)

|Delaware                          | N/A                                 
|--------------------------------- | ------------------------------------
|(State or other jurisdiction      | (I.R.S. Employer Identification No.)
|of incorporation or organization) |                                     

900  789 West Pender Street, Vancouver, B.C., Canada V6C
1H2(Address of principal executive
offices)                         
 (Zip Code)

Issuer's telephone number, including area code: (604)
689-4407

Securities Registered under Section 12(b) of the Exchange Act:
NONE

Securities Registered under Section 12(g) of the Exchange Act

COMMON STOCK $.001 PAR VALUE

Check whether the issuer is not required to file reports
pursuant to Section 13 or 15(d) of the Exchange Act. [   ]

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past
90 days. (1) Yes [   ]   No [X](2)
Yes [X]No [   ]

Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B contained in this form, and no disclosure will
be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB. [   ]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes [X]No [   ]

State issuers revenues for its most recent fiscal year:
Gross revenues from gain on sale of marketable securities for its most
recent fiscal year were $2,348,896.

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at
which the common equity was sold, or the average bid and asked price of such
common equity, as of a specified date within the past 60 days. (See
definition of affiliate in Rule 12b-2 of the Exchange Act.)

Aggregate market value of common equity held by
non-affiliates: $697,538 as of within past 60 days (at $0.03/share closing
price at December 15, 2007).

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2

(ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE
YEARS)

Check whether the issuer has filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange Act after
the distribution of securities under a plan confirmed by a court. Yes
[   ]   No [   ]   N/A [X]

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date.

32,476,250 common shares as of December 15, 2007

DOCUMENTS INCORPORATED BY REFERENCE

None

Transitional Small Business Disclosure Format (check one): Yes
[   ]   No [X]

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TABLE OF CONTENTS

|               |                                                                                                                                                   | Page
|-------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ----
|               |                                                                                                                                                   |     
|PART
      I   |                                                                                                                                                   |     
|               |                                                                                                                                                   |     
|Item
      1.  | Description of Business                                                                                                                           | 4   
|Item
      2.  | Description of Property                                                                                                                           | 11  
|Item
      3.  | Legal Proceedings                                                                                                                                 | 11  
|Item
      4.  | Submission of Matters to a Vote of Security Holders                                                                                               | 11  
|               |                                                                                                                                                   |     
|PART
      II  |                                                                                                                                                   |     
|               |                                                                                                                                                   |     
|Item
      5.  | Market for Common Equity and Related Stockholder Matters
      and Small Business Issuer Purchases of Equity Securities                           | 11  
|Item
      6.  | Management's Discussion and Analysis or Plan of Operations                                                                                        | 11  
|Item
      7.  | Financial Statements                                                                                                                              | 14  
|Item
      8.  | Changes in and Disagreements With Accountants on Accounting
      and Financial Disclosure                                                        | 25  
|Item
      8A. | Controls and Procedures                                                                                                                           | 25  
|Item
      8B. | Other Information                                                                                                                                 | 26  
|               |                                                                                                                                                   |     
|PART
      III |                                                                                                                                                   |     
|               |                                                                                                                                                   |     
|Item
      9.  | Directors, Executive Officers, Promoters, Control Persons
      and Corporate Governance; Compliance with Section 16(a) of the Exchange
      Act | 26  
|Item
      10. | Executive Compensation                                                                                                                            | 30  
|Item
      11. | Security Ownership of Certain Beneficial Owners and Management
      and Related Stockholder Matters                                              | 32  
|Item
      12. | Certain Relationships and Related Transactions, and Director
      Independence                                                                   | 32  
|               |                                                                                                                                                   |     
|PART
      IV  |                                                                                                                                                   |     
|               |                                                                                                                                                   |     
|Item
      13. | Exhibits                                                                                                                                          | 33  
|Item
      14. | Principal Accountant Fees and Services                                                                                                            | 33  
|               |                                                                                                                                                   |     
|Signatures     |                                                                                                                                                   |     
|Certifications |                                                                                                                                                   |     

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4

PART I

ITEM 1. Description of Business

History of the CompanyThe Company was incorporated
under the laws of the State of Idaho on February 4, 1971 as Monetary Metals
Corporation. On December 16, 1988, Drucker Sound Design Corporation was
incorporated under the laws of the State of California. On October 18, 1989, Gul
Industries Corp. was incorporated under the laws of the State of Delaware. On
December 14, 1989, we entered into an Agreement and Plan of Reorganization,
whereby Monetary Metals Corporation acquired 100% of the net assets of Drucker
Sound Design Corporation. The Company began the manufacturing and distribution
of audio, cellular, C.B., radar and other electronic installation systems for
automobiles. The Company re domiciled to Delaware, entered into a merger
agreement with Gul Industries, Inc. and on April 16, 1990 filed Articles of
Amendment in the State of Idaho changing its name from Monetary Metals
Corporation to Drucker Sound Design Corporation. On June 6, 1990, Gul Industries
Inc. filed a Certificate of Amendment to the State of Delaware changing its name
to Drucker Sound Design Corporation and on June 19, 1990, a Certificate of
Merger was filed in the State of Delaware. On August 7, 1990, a Certificate of
Merger was filed in the State of Idaho. Prior to September 1991, the Company
discontinued the business of manufacturing and distributing audio, cellular,
C.B., radar, and other electronic installation systems for automobiles and on
September 4, 1991 filed a Certificate of Amendment in the State of Delaware
changing its name to Drucker Industries, Inc.

In September 1991 the Company purchased the license to the
"N-Viro Process" for Japan from N-Viro Energy Systems, Ltd. for $466,063. The
Company was delinquent on minimum royalty payments due June 30, 1994 and
September 30, 1994, totaling $50,000, and consequently all rights and privileges
granted under the license agreement were canceled by the licensor. The license
agreement costs net of accumulated amortization were written-off during the year
ended December 31, 1994. On December 31, 1995, the Company terminated the N-Viro
business.

No activities were conducted in 1995 or 1996. In 1997 the
Company adopted a business plan to engage in oil and gas exploration. The
Company's primary business focus was then the acquisition, exploration and
development of mineral properties and oil and natural gas properties. In early
1997, the Company negotiated joint venture farm-in agreements with two Vancouver
based oil companies, with whom the companies' officers and directors were
affiliates, for a 50% interest in certain oil projects in the People's Republic
of China. The projects were unsuccessful, were abandoned in 1998 and written off
to $nil.

The Company participated in a Gulf of Suez joint venture in
Egypt, West Gharib which in 1999 made one oil discovery, drilled one dry hole,
and drilled a third well which was completed successfully in the last quarter of
1999 as an appraisal well. In October 1999 the Company entered into an agreement
for an interest in the North Ghadames joint venture in Algeria. One discovery
well had been drilled in 1996 by another party and an overall three well program
was designed to prove a larger structure. A second well was drilled successfully
in August 2000 and a third well was drilled and then abandoned in February 2001.

On November 29, 2000 the Company filed a Certificate of
Amendment in the State of Delaware changing its name to Drucker, Inc.

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5

General OperationsThe Company has had limited
operations within the last five years, and such operations have been restricted
to investigation of opportunities, evaluation and negotiations of the ventures
described below, and joint venture participations in oil exploration projects.

By an agreement dated February 1, 2002, the Company disposed of
its wholly owned subsidiary, Drucker Petroleum, Inc., which held the West Gharib
Block in Egypt, for US$250,000 and 1,000,000 common shares of Tanganyika Oil
Company Ltd., a publicly registered company in Canada listed on the TSX-Venture
Exchange. During the years 2004 and 2003 the Company received sale proceeds of
approximately $4,290,000 from the sale of Tanganyika shares.

On January 6, 2003 the Company entered a Letter of Intent to
acquire Crime Prevention Analysis Lab Incorporated (CPAL) of Vancouver, BC,
Canada but on April 17, 2003 the Company announced it had decided not to proceed
with the acquisition and canceled the letter of intent

By an agreement dated June 15, 2003 the Company agreed to
acquire a 100% interest in Beijing Beike-Masic Automation Engineering Company
Limited ("BK") for the issuance of 17,500,000 common shares (pre-consolidation)
and a further 75,520,800 common shares (pre-consolidation) after the
shareholders approve a consolidation of the Company's shares on a 3 old shares
for 1 new share basis and audited financial statements of BK have been delivered
to the Company. The Company further agreed to pay a legal fee in common shares
of 7% of the total shares issued under the agreement. On July 14, 2003, the
Company issued the 17,500,000 common shares pursuant to this agreement upon
tender of 25% of the shares of BK. The Company committed to deliver the balance
of the shares due upon completion of the reverse split, subject to shareholders
authorization. The Company has not yet obtained such authorization, although
written consent of a majority of the shareholders was given on February 17,
2004. The acquisition as contemplated was to be accounted for under the purchase
method as a reverse acquisition.

BK, a business corporation incorporated under the laws of the
Peoples Republic of China, is a provider of complete system solutions for
industrial automation and control. BK specialized in developing, manufacturing,
distributing and integrating system solutions and automation control products to
industrial enterprises such as steel companies, machinery manufacturing
companies and public utilities in China. BKs manufacturing and R&D
facilities are located in Zhong-Guan-Cun Hi-tech Zone in Beijing, China.

Subsequently, after December 31, 2004, the Company announced it
had decided not to proceed with the acquisition of BK and cancelled the
agreement and the issuance of the 17,500,000 shares of common stock.

Directors of the Company, associates of directors of the
Company and companies related to directors of the Company (the related
parties) received funds from the Company for the advancement of the acquisition
of BK as described above. The BK acquisition did not complete and the
acquisition agreement was terminated. Upon review of the expenditures by current
management, it became evident that proper corporate governance and financial
controls were not followed by the former management with respect to the
expenditures. As a consequence, the Company demanded $2,023,986 of the funds
advanced to the related parties be returned to the Company and initiated legal
action for their return. Subsequent to December 31, 2004 the Company received
$269,450 in recovery of the bad debt and received 9,639,000 shares of common
stock of Great China Mining, Inc. (converted to 1,097,296 shares of Continental
Minerals Corporation) with a then current market value of $1,821,511 in
(partial) settlement of the accounts receivable from related parties.

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6

Changes in ManagementAs a result of the BK
transaction, Messrs Liu Wei Zhang, Engineer; Hong Liang, Engineer; Ge Liang
Song, Senior Engineer; Sun Yi Kang, Professor; Ronald Xie, Lawyer; and Nick
Ringma, Businessman, were appointed to the Companys Board of Directors June 16,
2003. Messrs Patrick Chan, Ernest Cheung, Aloysius (Ken) Kow & Joseph Tong
resigned from the Board at that time and Mr. Gerald Runolfson resigned as
President.

Appointment of OfficersMr. Gerald Runolfson was
appointed Secretary of the Company replacing Mr. Ernest Cheung. Mr. Nick Ringma
was appointed as Vice President of the Company in a separate appointment and
resigned from this position January 13, 2006. Ronald Xie was appointed President
of the Company to serve at the discretion of the Board of Directors from June
16, 2003 and resigned January 13, 2006. Subsequent to the termination of the BK
acquisition agreement, the Board of Directors resigned January 13, 2006 (with
the exception of Gerald Runolfson who remained a Director), to be replaced by
Aloysius (Ken) Kow and Robert Smiley as Directors of the Company at that time.
Mr. Robert Smiley was elected President of the Company.

The biographical information of the new directors is as
follows:

Robert Smiley Mr. Smiley holds the position of President of
the Company. Born and raised in Ontario, Mr. Smiley attended College in Southern
California before attending the University of British Columbia where he earned a
Bachelor of Arts (BA) and a Law Degree (LLB).

His professional experience ranges from Senior Attorney/Land
Department for Chevron Standard Ltd., where he specialized in oil and gas and
mining law, to Partner at Barbeau, McKercher, Collingwood & Hanna and Morton
& Company, both Vancouver law firms specializing in corporate and securities
law et al. Mr. Smiley has held the positions of Director and/or Corporate
Secretary for many public companies since 1984 and presently is self-employed as
a business consultant.

Aloysius (Ken) Kow Aloysius (Ken) Kow was a director of
Drucker, Inc. from October 2000 until August 11, 2003 when he resigned. He had
been a consultant to the Company and acted as Manager, Petroleum Operations, in
charge of petroleum exploration since 1997. He received a Bachelor of Science in
Chemistry in 1965 and a Ph.D in Chemistry in 1980 from the University of London,
England. From 1984 to 1986, he was Manager of Core Analysis with Geotechnical
Resources, Ltd. in Calgary, Alberta and from 1986 to 1988 he was Technical
Manager with C&G Laboratories in Calgary, Alberta. From 1988 to 1997 he was
employed with Waha Oil Company as a Petroleum Analyst in Tripoli, Libya, North
Africa. He has served as a Director of the Company since 1997 to present. He was
Secretary of Richco Investors, Inc. (a public company) from 1997 to 2002. Mr.
Kow was re-appointed as Director of Drucker January 13, 2006.

New BusinessThe Company entered into a letter of
intent (LOI) dated October 19, 2007 with Global Fusion Media Inc. (Global)
and its shareholders to acquire 100% of the issued and outstanding shares of
Global. In consideration for the acquisition of 100% of Globals issued and
outstanding shares, the Company will issue to the Global shareholders a total of
15,000,000 shares of the Companys authorized capital on a pro rata basis. Such
shares will be held in escrow to be released on the basis of one share for every
$0.20 of revenue received by the Company, flowing from the business of Global.
Global is a private company which has contracts to install a captive television
network

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7

in a number of army bases in the U.S. As well, Global has been
negotiating with a major health and pharmaceutical supplier in the U.S. to
install a captive television network in various of the suppliers locations and
the LOI is subject to a contract being signed between the supplier and Global
(or Globals subsidiaries) for such installations. The LOI is also subject to
the completion of a ninety day due diligence period and the receipt of a due
diligence report satisfactory to the Company from such review. Both parties also
agree to execute a formal agreement prior to the end of the due diligence
period.

By separate letter agreement dated October 19, 2007 the parties
also agreed that the Company would retain a five percent interest in and to the
captive television network business of Global should Global decide not to
execute a formal agreement with the Company at the end of the due diligence
period.

By Loan Agreement dated October 29, 2007 made between the
Company and Global the Company loaned Global the sum of $50,000Cdn (Loan).
Under the terms of the Loan, Global must use the funds solely for the operation
of its business and not for the purpose of acquisitions or other capital
expenditures. The Loan must be paid upon demand and a demand promissory note was
executed by Global. Demand for repayment cannot be made before ninety days from
the date of the Loan and the Loan will accrue interest at the annual rate of 2%
over prime after demand and not before. Global agreed to further secure the Loan
by executing an assignment of receivables.

Investment Company Act and Other RegulationsThe
Company may participate in a business opportunity by purchasing or selling the
securities of such business. The Company does not intend to engage primarily in
such activities. The Company intends to dispose of its marketable securities
over the course of time. The Company is looking for an acquisition and has
signed a letter of intent with Global Fusion Media Inc. The Company intends to
conduct its activities so as to avoid being classified as an "investment
company" under the Investment Company Act of 1940 (the "Investment Act"), and
therefore to avoid application of the costly and restrictive registration and
other provisions of the Investment Act and the regulations promulgated there
under.

Section 3(a) of the Investment Act contains the definition of
an "investment company" and it excludes any entity that does not engage
primarily in the business of investing, reinvesting or trading in securities, or
that does not engage in the business of investing, owning, holding or trading
"investment securities" (defined as "all securities other than government
securities or securities of majority-owned subsidiaries") the value of which
exceeds 40% of the value of its total assets (excluding government securities,
cash or cash items). The Company intends to implement its business plan in a
manner resulting in the availability of this exception from the definition of an
"investment company". Consequently, the Company's participation in a business or
opportunity through the purchase and sale of investment securities will be
limited.

The Company's plan of business may involve changes in its
capital structure, management, control and business, especially as it
consummates the reorganization as discussed above. Each of these areas are
contemplated within regulations of the Investment Act in order to protect
purchasers of investment company securities. Since the Company will not register
as an investment company, stockholders will not be afforded these protections.

Any securities acquired by the Company in exchange for its
Common Stock are expected to be "restricted securities" within the meaning of
the Securities Act of 1933, as amended (the "Act"). If the Company elects to
resell such

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8

securities, any such sale cannot proceed unless the shares are
registered in a registration statement declared effective by the Securities and
Exchange Commission or an exemption from registration is available. Section 4(1)
of the Act, which exempts sales of securities not involving a distribution,
would in all likelihood be available to permit a private sale. Although the plan
of operation does not contemplate resale of securities acquired, if such a sale
were to be necessary, the Company would be required to comply with the
provisions of the Act before such resale.

Administrative OfficesThe Company currently
maintains an office at #900 - 789 West Pender Street, Vancouver, B.C. Canada V6C
1H2.

The Company's telephone number is (604) 689 4407.

EmployeesThe Company does not currently have any
employees. Management of the Company expects to use consultants, attorneys and
accountants as necessary, and does not anticipate a need to engage any full-time
employees so long as it is seeking and evaluating business opportunities. The
need for employees and their availability will be addressed in connection with
the decision whether or not to acquire or participate in specific business
opportunities. Although there is no current plan with respect to its nature or
amount, remuneration may be paid to or accrued for the benefit of the Company's
officers prior to, or in conjunction with, the completion of a business
acquisition for services actually rendered.

See also "Executive Compensation" and "Certain Relationships
and Related Transactions" Items 10 and 12

Risk Factors

1. Conflicts of Interest. Certain conflicts of interest
may exist between the Company and its officers and directors. They have other
business interests to which they devote their attention in part, and may be
expected to continue to do so. As a result, conflicts of interest may arise that
can be resolved only through exercise of such judgment as is consistent with
fiduciary duties to the Company.

See also Certain Relationships and Related Transactions Item
12

2. Need For Additional Financing. Company funds may not
be adequate to continue operations. Even if the Company's funds prove to be
sufficient to operate, the Company may not have enough capital to succeed. The
ultimate success of the Company may depend upon its ability to raise additional
capital. The Company has not investigated the availability, source, or terms
that might govern the acquisition of additional capital and will not do so until
it determines a need for additional financing. If additional capital is needed,
there is no assurance that funds will be available from any source or, if
available, that they can be obtained on terms acceptable to the Company. If not
available, the Company's operations will be limited to those that can be
financed with its available capital.

3. Regulation of Penny Stocks. The Company's securities
are subject to a Securities and Exchange Commission rule that imposes special
sales practice requirements upon broker-dealers who sell such securities to
persons other than established customers or accredited investors.

For purposes of the rule, the phrase "accredited investors"
means, in general terms, institutions with assets in excess of $5,000,000, or
individuals having a net worth in excess of $1,000,000 or having an annual
income that exceeds $200,000 (or that, when combined with a spouse's income,
exceeds $300,000). For transactions covered by the rule, the broker-dealer must
make a special suitability determination for the purchaser and receive the
purchaser's written agreement to the transaction prior to the sale.

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9

Consequently, the rule may affect the ability of broker-dealers
to sell the Company's securities and also may affect the ability of purchasers
in this offering to sell their securities in any market that might develop
thereafter.

In addition, the Securities and Exchange Commission has adopted
a number of rules to regulate "penny stocks." Such rules include Rules 3a51-1,
15g-1, 15g-2, 15g-3, 15g-4, 15g-5, 15g-6, 15g-7, and 15g-9 under the Securities
Exchange Act of 1934, as amended. Because the securities of the Company may
constitute "penny stocks" within the meaning of the rules, the rules would apply
to the Company and to its securities. The rules may further affect the ability
of owners of Shares to sell the securities of the Company in any market that
might develop for them.

Shareholders should be aware that the market for penny stocks
has suffered in recent years from patterns of fraud and abuse. Such patterns
include:

|(i)   | control of the market for the security by one or a few
      broker-dealers that are often related to the promoter or issuer;
  and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(ii)  | manipulation of prices through prearranged matching of
      purchases and sales and false and misleading press releases; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(iii) | "boiler room" practices involving high-pressure sales
      tactics and unrealistic price projections by inexperienced sales persons;
      and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(iv)  | excessive and undisclosed bid-ask differentials and
      markups by selling broker-dealers; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(v)   | the wholesale dumping of the same securities by promoters
      and broker- dealers after prices have been manipulated to a desired level,
      along with the resulting inevitable collapse of those prices and with
      consequent investor losses. The Company's management is aware of the
      abuses that have occurred historically in the penny stock market. Although
      the Company does not expect to be in a position to dictate the behavior of
      the market or of broker-dealers who participate in the market, management
      will strive within the confines of practical limitations to prevent the
      described patterns from being established with respect to the Company's
      securities.

4. Lack of Profitable Operating History. The Company was
inactive from 1994 to 1996. From 1997 to early 2003, the Company conducted
exploration activities on oil and gas properties for joint venture participation
in China, Egypt and Algeria. The exploration efforts in China and Africa were
not successful and the Company was not profitable from the operations. Currently
the Company has no revenues from oil and gas operations. The Company faces all
of the risks of a new business and the risks inherent in the acquisition of a
new business opportunity. The Company should be regarded as a new or "start-up"
venture with all of the unforeseen costs, expenses, problems, and difficulties
to which such ventures are subject.

5. No Assurance of Success or Profitability. There is no
assurance that the Company will be profitable. There is no assurance that any
business acquired will generate revenues or profits, or that the market price of
the Company's Common Stock will be increase.

6. Lack of Diversification. Because of the limited
financial resources that the Company has, it is unlikely that the Company will
be able to diversify its acquisitions or operations. The Company's probable
inability to diversify its activities into more than one area will subject the
Company to economic fluctuations within its particular business or industry and
therefore increase the risks associated with the Company's operations.

7. Dependence upon Directors and Limited Participation of
Management. The Company will be heavily dependent upon the skills, talents,
and abilities of its officers and directors to implement its business plan, and
may, from time

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10

to time, find that the inability of the officers and directors
to devote their full time and attention to the business of the Company results
in a delay in progress toward implementing its business plan. See "Management".

Because investors will not be able to evaluate the merits of
possible business acquisitions by the Company, they should critically assess the
information concerning the Company's officers and directors.

8. Lack of Continuity in Management. The Company does
not have an employment agreement with its officers and directors and as a
result, there is no assurance they will continue to manage the Company in the
future. In connection with any acquisition of a business opportunity, it is
likely the current officers and directors of the Company may resign subject to
compliance with Section 14f of the Securities Exchange Act of 1934. A decision
to resign will be based upon the identity of the business opportunity and the
nature of the transaction and is likely to occur without the vote or consent of
the stockholders of the Company.

9. Indemnification of Officers and Directors. Delaware
Revised Statutes provide for the indemnification of its directors, officers,
employees, and agents, under certain circumstances, against attorney's fees and
other expenses incurred by them in any litigation to which they become a party
arising from their association with or activities on behalf of the Company. The
Company will also bear the expenses of such litigation for any of its directors,
officers, employees, or agents, upon such person's promise to repay the Company
therefore if it is ultimately determined that any such person shall not have
been entitled to indemnification. This indemnification policy could result in
substantial expenditures by the Company it may be unable to recoup.

10. Director's Liability is Limited. Delaware Revised
Statutes exclude personal liability to the Company and its stockholders from its
directors for monetary damages for breach of fiduciary duty except in certain
specified circumstances. Accordingly, the Company will have a much more limited
right of action against its directors than otherwise would be the case. This
provision does not affect the liability of any director under federal or
applicable state securities laws.

11. Lack of Experienced Management.The Companys
management is lacking in operating experience in the Companys potential venture
into the private television network venture with Global Fusion Media Inc. - see
also New Business on page 5.

12. Dependence upon Outside Advisors. To supplement the
business experience of its officers and directors, the Company may be required
to employ accountants, technical experts, appraisers, attorneys, or other
consultants or advisors. The President of the Company will select outside
advisors, without any input from stockholders. Furthermore, it is anticipated
that such advisors may be engaged on an "as needed" basis without a continuing
fiduciary or other obligation to the Company. In the event the President of the
Company considers it necessary to hire outside advisors, he may elect to hire
persons who are affiliates, if they are able to provide the required services.

13. No Foreseeable Dividends. The Company has not paid
dividends on its Common Stock and does not anticipate paying such dividends in
the foreseeable future.

Political RisksMany foreign markets are monitored
by government, which can impose taxes or restrictions at any time which would
make operations unprofitable and

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11

infeasible and cause a write-off of investment in the
properties should the Company choose to enter those markets.

ITEM 2. Description of Property

(a) Real Estate. None (b) Title to properties. None (c)
Oil and Gas Drilling Activities. None (d) Oil and Gas Production. None
(e) Oil and Gas Reserves. None (f) Natural Gas Gathering/Processing
Facilities. None (g) Present Activities and Subsequent Events: The Company
is reorganizing its affairs and seeking profitable business opportunities.

ITEM 3. Legal Proceedings

The Company has commenced legal action to recover approximately
$214,705usd plus $56,000cdn from certain parties formerly associated with the
Company. It is the Companys position that, contrary to good corporate
governance and internal financial controls, these funds were improperly
withdrawn from the Company. The issues are expected to be heard in court
February 2009.

The Company has commenced legal action to recover approximately
$5,655,000cdn funds improperly spent by certain former directors of the Company.
It is the Companys position that, contrary to good corporate governance and
internal financial controls, these funds were improperly withdrawn from the
Company and the certain former directors breached their respective fiduciary
duties to the Company. The issues are expected to be heard in court February
2009.

ITEM 4. Submission of Matters to a Vote of Security Holders

No matters were submitted to a vote of security holders of
Drucker, Inc., through the solicitation of proxies or otherwise, during the
fiscal year covered by this report.

PART II

ITEM 5. Market for Common Equity and Related Stockholder
Matters and Small Business Issuer Purchases of Equity Securities

Bids and Offers for the Company's common stock are quoted by
the NASD on the Over-the-Counter Bulletin Board. Such over the counter market
quotations reflect interdealer prices, without retail mark up, mark down or
commission and may not necessarily represent actual transactions. The Company is
delinquent in its reporting obligations for the years 2005, 2006 and 2007.

As of December 31, 2004 the Registrant had 60 shareholders of
record of its common stock.

No dividends on outstanding common stock have been paid within
the last two fiscal years and the Company does not anticipate or intend upon
paying dividends for the foreseeable future.

ITEM 6. Management's Discussion and Analysis or Plan of
Operation

The information presented here should be read in conjunction
with Drucker, Inc.'s financial statements and other information included in this
Form 10-KSB. When used in this Form 10-KSB, the words "expects," "anticipates,"
"estimates" and similar expressions are intended to identify forward-looking
statements. Such statements are subject to risks and uncertainties, including
those set forth below under "Risks and Uncertainties," that could cause

---

12

actual results to differ materially from those projected. These
forward-looking statements speak only as of the date hereof. The Company
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any statement is based.

Overview

On June 15, 2003 the Company entered into an Acquisition
Agreement to acquire 100% of the issued and outstanding shares of Beijing
Beike-Masic Automation Engineering Company Limited ("BK"), a Chinese company
specializing in industrial automation, in exchange for 93,020,800 shares of
common stock of the Company, calculated on a pre-consolidation basis. The
Agreement provided for a one for three reverse split of all the outstanding
shares of Drucker to be approved by shareholders before the issuance of the
additional shares would be completed. Pursuant to the Agreement, the Company
issued 17,500,000 common shares pre-consolidation.

Shareholders' did not approve the required reverse split and
the agreement did not complete. Subsequently the Company cancelled the
17,500,000 common shares previously issued.

During the period of the agreement directors of the Company
expended $2,023,986 pursuant to negotiations thereto. The negotiations were
unsuccessful and upon review of the expenditures by current management it became
evident that proper corporate governance and financial controls had not been
followed by prior management with respect to the expenditures; therefore the
Company demanded the $2,023,986 be returned to the Company. The debt was
recovered during 2007.

Results of Operations

During the fiscal year ended December 31, 2004 the Company's
revenues were derived from the disposal of 495,600 shares of Tanganyika Oil
Company Ltd. for a gain of $2,348,896 and earned interest income of $6,621, for
total revenue of $2,355,517. The Company incurred expenses of $1,351,822 in
general and administrative expenditures as compared to $434,261 for the same
period of the prior year. The increase of $917,561 was due in large part to the
legal and accounting fees incurred in connection with the failed BK acquisition.
No future commitments exist for the BK acquisition.

The 2004 level of expenditures did not continue into 2005 based
on the Companys current business situation. The Company currently has
sufficient cash to operate for the balance of 2005 at its current level of
business. This could change, however, if any other business venture were to be
embarked upon and the available cash could be depleted more rapidly.

In 2004 the net loss was $(1,159,825) compared to a net income
of $899,988 for 2003. The operating loss in 2004 includes additional costs
related to the Companys failed attempt to acquire Beijing Beike-Masic
Automation Engineering Company Limited ("BK") and includes $1,652,801 written
off at December 31, 2004 as a bad debt when parties related to the Company
received funds from the Company for the advancement of the acquisition of BK,
the BK acquisition did not complete and the acquisition agreement was
terminated. As a consequence, the Company demanded $2,023,986 of the funds
advanced to the related parties be returned to the Company and initiated legal
action for their return. As a consequence of the legal action the defendant
parties agreed to return certain hard assets of the Company which were in their
possession and further agreed to provide such other funds which may be earned in
the future by such parties from finders fees on third party agreements up to a
maximum of $5,000,000 inclusive of the $2,023,986 subsequently returned

---

13

to the Company. The resulting account receivable was fully
allowed for as a bad debt at December 31, 2004. Subsequent to December 31, 2004
the Company received $249,492 in recovery of the bad debt and received 9,639,000
shares of common stock of Great China Mining, Inc. (now Continental Minerals
Corporation  1,097,296 shares) in early 2007 with a then current market value
of $1,821,511 in (partial) settlement of the accounts receivable from related
parties and in recovery of the bad debt.

Liquidity

The Company may use all of its liquidity in the attempt to
acquire or develop a business. The Company is unable to carry out any plan of
business without adequate funding. The Company cannot predict to what extent its
current liquidity and capital resources will impair the consummation of a
business combination or whether it will incur further operating losses through
any business entity which the Company may eventually acquire. There is no
assurance that the Company can continue as a going concern without more and
substantial funding in any business, for which funding there is no committed
source.

The Company had cash at December 31, 2004 of $271,669 and stock
of Tanganyika Oil Company, Ltd. valued at $93,921. The Company's primary capital
resources are its cash on deposit, the stock from another company, Tanganyika
Oil Company, Ltd., and its own authorized capital. 495,600 shares of Tanganyika
were sold during 2004 and 14,700 shares were held as of December 31, 2004.
Management will continue to sell the remaining shares for working capital
purposes, if required. The Company's own stock may be illiquid because it is
restricted in an unproved company with a short history of income generation.

The Company will be dependent on its cash reserves for its
short term needs. The Company had current assets of $271,669 at December 31,
2004 and had current liabilities of $23,440. These amounts are sufficient for
the Company to continue operations at a reduced level until the end of 2005.
This could change, however, if any other business venture were to be embarked
upon, and the available cash could be depleted much more rapidly. On a long-term
basis, the Company has no long term or other debt.

The Company also has an amount due from a related party of
$116,389. The Company has negotiated for repayment by installments of the amount
due.

The Company has no plans for significant research and
development or for capital expenditures in the next twelve months, nor does it
expect to hire any employees, subject to its discovery and completion of a
merger opportunity.

Market Risk

Except for the securities held for sale, the Company does not
hold any derivatives or other investments that are subject to market risk. The
carrying values of any financial instruments approximate fair value as of those
dates because of the relatively short-term maturity of these instruments
eliminating any potential market risk associated with such instruments.

Need for Additional Financing

No commitments to provide additional funds have been made by
management or other stockholders. Accordingly, there can be no assurance that
any additional funds will be available to the Company to allow it to cover
expenses as they may be incurred.

---

14

In the event the Company's cash and other assets prove to be
inadequate to meet the Company's operational needs, the Company might seek to
compensate providers of services by issuances of stock in lieu of cash.

ITEM 7. Financial Statements

DRUCKER, INC.INDEX TO FINANCIAL STATEMENTS

|Report of Independent
      Registered Public Accounting Firm
|-------------------------------------------------------------
|Balance Sheets                                               
|Statements of Operations                                     
|Statements of Changes in Stockholders
      Equity          
|Statements of Cash Flows                                     
|Notes to the Financial Statements                            

---

15



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of Drucker, Inc.

We have audited the accompanying balance sheet of Drucker, Inc.
(a development stage company) as of December 31, 2004 and the related statements
of operations, cash flows and stockholders equity for the year ended December
31, 2004 and the period from February 2, 2002 (date of re-entry into the
development stage) to December 31, 2004. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit. The financial
statements as of December 31, 2003 and for the period from February 2, 2002
(date of re-entry into the development stage) to December 31, 2003 were audited
by other auditors whose report dated April 13, 2004 expressed an unqualified
opinion on those financial statements. The financial statements as of December
31, 2003 and for the period from February 2, 2002 (date of re-entry into the
development stage) to December 31, 2003 reflect a total net loss of $5,340,528
of the related cumulative totals. Our opinion, insofar as it relates to amounts
included for such prior periods, is based solely on the report of such other
auditors.

We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform an audit to obtain reasonable assurance whether
the financial statements are free of material misstatement. The Company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Companys internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.

In our opinion, based on our audit and the report of other
auditors, these financial statements present fairly, in all material respects,
the financial position of Drucker, Inc. as of December 31, 2004 and the results
of its operations and its cash flows for the year then ended and for the period
from February 2, 2002 (date of re-entry into the development stage) to December
31, 2004 in conformity with accounting principles generally accepted in the
United States of America.

The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern. As discussed in Note
1 to the financial statements, the Company is in the development stage, has not
generated revenues since inception, has incurred losses in developing its
business, and further losses are anticipated. The Company requires additional
funds to meet its obligations and the costs of its operations. These factors
raise substantial doubt about the Companys ability to continue as a going
concern. Managements plans in this regard are described in Note 1. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.

DALE MATHESON CARR-HILTON LABONTE LLPCHARTERED
ACCOUNTANTS

Vancouver, Canada September 27, 2007



---

16

DRUCKER, INC.(A Development Stage Company)
BALANCE SHEETS

|                                                                           |   | December 31, |   |   | December 31, |  
|-------------------------------------------------------------------------- | - | ------------ | - | - | ------------ | -
|                                                                           |   | 2004         |   |   | 2003         |  
|                                                                           |   |              |   |   |              |  
|ASSETS                                                                     |   |              |   |   |              |  
|Current Assets                                                             |   |              |   |   |              |  
|Cash                                                                       | $ | 271,669      |   | $ | 1,274,931    |  
|Marketable Securities (Note 8)                                             |   | 113,043      |   |   | 2,927,112    |  
|Prepaid expenses and other
      current assets                            |   | -            |   |   | 4,728        |  
|Prepaid expenses  related party (Note 3)                                  |   | -            |   |   | 18,265       |  
|                                                                           |   | 384,712      |   |   | 4,225,036    |  
|                                                                           |   |              |   |   |              |  
|Equipment(Note 2)                                                          |   | 6,348        |   |   | 14,729       |  
|Due from related party(Note 3)                                             |   | 116,389      |   |   | 111,652      |  
|Acquisition advances(Note 7)                                               |   | 2,788,951    |   |   | -            |  
|                                                                           |   |              |   |   |              |  
|                                                                           | $ | 3,296,400    |   | $ | 4,351,417    |  
|                                                                           |   |              |   |   |              |  
|                                                                           |   |              |   |   |              |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                                       |   |              |   |   |              |  
|Current Liabilities                                                        |   |              |   |   |              |  
|Accounts payable and accrued liabilities                                   | $ | 23,440       |   | $ | 56,520       |  
|                                                                           |   |              |   |   |              |  
|COMMITMENTS(Notes 6 and 9)                                                 |   |              |   |   |              |  
|SUBSEQUENT EVENTS(Note 9)                                                  |   |              |   |   |              |  
|                                                                           |   |              |   |   |              |  
|Stockholders' Equity                                                       |   |              |   |   |              |  
|Common stock (Note 5)                                                      |   |              |   |   |              |  
|Authorized:
      50,000,000 common shares, $0.001 par value               |   |              |   |   |              |  
|Issued and outstanding:
      49,976,250 (2003  32,476,250) shares        |   | 49,615       |   |   | 32,115       |  
|Additional paid-in capital                                                 |   | 9,615,254    |   |   | 6,843,803    |  
|Other Comprehensive Income                                                 |   | 108,444      |   |   | 2,759,507    |  
|Accumulated deficit                                                        |   | (6,105,675   | ) |   | (6,135,675   | )
|Retained Earnings (Deficit) accumulated during the
      development stage |   | (394,678     | ) |   | 795,147      |  
|Total Stockholders' Equity                                                 |   | 3,272,960    |   |   | 4,294,897    |  
|                                                                           |   |              |   |   |              |  
|                                                                           | $ | 3,296,400    |   | $ | 4,351,417    |  

The accompanying notes are an integral part of these financial
statements.

---

17

DRUCKER, INC.(A Development Stage Company)
STATEMENTS OF OPERATIONS

|                                                                   |   |              |   |   |              |   |   | February 2,  |  
|------------------------------------------------------------------ | - | ------------ | - | - | ------------ | - | - | ------------ | -
|                                                                   |   | Year Ended   |   |   | Year Ended   |   |   | 2002 to      |  
|                                                                   |   | December 31, |   |   | December 31, |   |   | December 31, |  
|                                                                   |   | 2004         |   |   | 2003         |   |   | 2004         |  
|EXPENSES                                                           |   |              |   |   |              |   |   |              |  
|Consulting (Note 3)                                                |   | 262,754      |   |   | 232,053      |   |   | 593,804      |  
|Depreciation                                                       |   | 1,858        |   |   | 1,406        |   |   | 4,390        |  
|Foreign exchange (gain) loss                                       |   | 21,693       |   |   | (5,492       | ) |   | 16,712       |  
|Legal and professional                                             |   | 914,863      |   |   | 162,968      |   |   | 1,072,660    |  
|Other operating expenses                                           |   | 150,654      |   |   | 43,326       |   |   | 209,860      |  
|                                                                   |   |              |   |   |              |   |   |              |  
|LOSS BEFORE OTHER ITEMS                                            |   | 1,351,822    |   |   | 434,261      |   |   | 1,897,426    |  
|                                                                   |   |              |   |   |              |   |   |              |  
|Other (income) expense                                             |   |              |   |   |              |   |   |              |  
|Gain on disposal of securities
       available for sale (Note 4) |   | (2,348,896   | ) |   | (1,364,530   | ) |   | (3,713,426   | )
|Write off of acquisition advances (Note 7)                         |   | 1,652,801    |   |   | -            |   |   | 1,652,801    |  
|Interest income                                                    |   | (6,621       | ) |   | (6,638       | ) |   | (18,916      | )
|                                                                   |   | (702,716     | ) |   | (1,371,168   | ) |   | (2,079,541   | )
|                                                                   |   |              |   |   |              |   |   |              |  
|                                                                   |   |              |   |   |              |   |   |              |  
|LOSS (INCOME) FROM CONTINUING
      OPERATIONS                     |   | 649,106      |   |   | (936,907     | ) |   | (182,115     | )
|                                                                   |   |              |   |   |              |   |   |              |  
|LOSS FROM DISCONTINUED OPERATION                                   |   |              |   |   |              |   |   |              |  
|Loss from discontinued operations, net of
      income taxes       |   | 510,719      |   |   | 36,919       |   |   | 576,794      |  
|                                                                   |   |              |   |   |              |   |   |              |  
|NET LOSS (INCOME)                                                  | $ | 1,159,825    |   | $ | (899,988     | ) | $ | 394,679      |  
|                                                                   |   |              |   |   |              |   |   |              |  
|BASIC AND DILUTED NET LOSS PER SHARE                               | $ | (0.03        | ) | $ | (0.02        | ) |   |              |  
|                                                                   |   |              |   |   |              |   |   |              |  
|WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                         |   |              |   |   |              |   |   |              |  
| BASIC AND DILUTED                                                |   | 38,133,784   |   |   | 32,476,250   |   |   |              |  

The accompanying notes are an integral part of these financial
statements.

---

18

DRUCKER, INC.(A Development Stage Company)STATEMENT OF STOCKHOLDERS' EQUITYFrom February 2, 2002 to
December 31, 2004

AccumulatedStock
      
      
      Additional
      
      
      
      
      
      OtherCommon
      
      
      **Amount At**
      
      
      Paid-In
      
      
      Accumulated
      
      
      **Comprehensive**Shares
      
      
      Par Value
      
      
      Capital
      
      
      Deficit
      
      
      Income (Loss)
      
      
      Total$
      
      
      $
      
      
      $
      
      
      $
      
      
      $Balance, February 2, 2002
      32,476,250
      
      
      32,115
      
      
      6,843,803
      
      
      (5,968,278
      )
      
      -
      
      
      907,640Components of comprehensive income:Translation adjustments
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      170
      
      
      170Unrealized gain on securities
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      54,315
      
      
      57,315Net loss
      -
      
      
      -
      
      
      -
      
      
      (272,238
      )
      
      -
      
      
      (272,238
      )Balance, December 31, 2002
      32,476,250
      
      
      32,115
      
      
      6,843,803
      
      
      (6,240,516
      )
      
      54,485
      
      
      689,887Components of comprehensive income:Translation adjustment
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (9,966
      )
      
      (9,966
      )Unrealized gain on securities
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      2,714,988
      
      
      2,714,988Net income
      -
      
      
      -
      
      
      -
      
      
      899,988
      
      
      -
      
      
      899,988Balance, December 31, 2003
      32,476,250
      
      
      32,115
      
      
      6,843,803
      
      
      (5,340,528
      )
      
      2,759,507
      
      
      4,294,897Issuance of common shares foracquisition of BK
      17,500,000
      
      
      17,500
      
      
      2,771,451
      
      
      -
      
      
      -
      
      
      2,788,951Components of comprehensive income:Translation adjustment
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      9,796
      
      
      9,796Realized gain on securities
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (2,660,859
      )
      
      (2,660,859
      )Net loss
      -
      
      
      -
      
      
      -
      
      
      (1,159,825
      )
      
      -
      
      
      (1,159,825
      )Balance, December
        31, 2004
      49,976,250
      
      
      49,615
      
      
      9,615,254
      
      
      (6,500,353
      )
      
      108,444
      
      
      3,272,960


The accompanying notes are an integral part of these financial
statements.

---

19

DRUCKER, INC.(A Development Stage Company)STATEMENTS OF CASH FLOWS

|                                                                   |   | Year ended   |   |   | Year Ended   |   |   | February 2, 2002 |  
|------------------------------------------------------------------ | - | ------------ | - | - | ------------ | - | - | ---------------- | -
|                                                                   |   | December 31, |   |   | December 31, |   |   | to December 31,  |  
|                                                                   |   | 2004         |   |   | 2003         |   |   | 2004             |  
|Cash flows from operating activities                               |   |              |   |   |              |   |   |                  |  
|Net income (loss) from continuing
      operations                 | $ | (649,106     | ) | $ | 936,307      |   | $ | 182,115          |  
|Depreciation                                                       |   | 1,858        |   |   | 2,286        |   |   | 5,270            |  
|Gain on disposal of securities
       available for sale          |   | (2,348,896   | ) |   | (1,364,530   | ) |   | (3,713,426       | )
|Changes in assets and liabilities                                  |   |              |   |   |              |   |   |                  |  
|(Increase) decrease in prepaid expenses                            |   | 4,728        |   |   | (1,907       | ) |   | 1,008            |  
|(Increase) decrease in due from a related company                  |   | 4,737        |   |   | (6,154       | ) |   | 7,376            |  
|(Increase) decrease in prepaid expenses  related party            |   | -            |   |   | (16,195      | ) |   | 18,265           |  
|Increase (decrease) in accounts payable and accrued liabilities    |   | (33,080      | ) |   | 42,307       |   |   | 2,334            |  
|Net cash flows used in continuing
      operations                 |   | (3,019,759   | ) |   | (407,886     | ) |   | (3,497,058       | )
|Net cash flows used in discontinued operations                     |   | (495,405     | ) |   | (36,319      | ) |   | (477,578         | )
|                                                                   |   |              |   |   |              |   |   |                  |  
|Cash flows from investing activities                               |   |              |   |   |              |   |   |                  |  
|Proceeds from disposal of
      securities  available for sale    |   | 2,502,106    |   |   | 1,519,586    |   |   | 4,021,692        |  
|Advances from discontinued operations of
      disposed subsidiary |   | -            |   |   | -            |   |   | 241,306          |  
|Disposal of equipment                                              |   | -            |   |   | (16,693      | ) |   | (16,693          | )
|Net cash flows provided by investing activities                    |   | 2,502,106    |   |   | 1,502,893    |   |   | 4,246,305        |  
|                                                                   |   |              |   |   |              |   |   |                  |  
|Effect of foreign exchange on cash                                 |   | 9,796        |   |   | (9,966       | ) |   | -                |  
|                                                                   |   |              |   |   |              |   |   |                  |  
|Increase (Decrease) in cash                                        |   | (1,003,262   | ) |   | 1,048,722    |   |   | 271,669          |  
|Cash  beginning                                                   |   | 1,274,931    |   |   | 226,209      |   |   | -                |  
|                                                                   |   |              |   |   |              |   |   |                  |  
|Cash  ending                                                      | $ | 271,669      |   | $ | 1,274,931    |   | $ | 271,669          |  
|                                                                   |   |              |   |   |              |   |   |                  |  
|                                                                   |   |              |   |   |              |   |   |                  |  
|Supplemental information:                                          |   |              |   |   |              |   |   |                  |  
|Cash paid for:                                                     |   |              |   |   |              |   |   |                  |  
|Interest                                                           | $ | -            |   | $ | 30           |   | $ | -                |  
|Income taxes                                                       |   | -            |   |   | -            |   |   | -                |  
|                                                                   |   |              |   |   |              |   |   |                  |  
|Non-cash investing activities:                                     |   |              |   |   |              |   |   |                  |  
|Shares
      received in the sale of subsidiary                    | $ | -            |   | $ | -            |   | $ | 312,865          |  
|Shares issued on acquisition                                       | $ | 2,788,951    |   | $ | -            |   | $ | 2,788,951        |  

The accompanying notes are an integral part of these financial
statements.

---

20

DRUCKER, INC.(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTSDECEMBER 31, 2004

NOTE 1  NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

Nature of BusinessDrucker Inc. (the Company) is a Delaware corporation. By an
  agreement dated February 1, 2002, the Company disposed of its wholly-owned subsidiary,
  Drucker Petroleum, Inc. During the year ended December 31, 2004, the Company
  abandoned its wholly-owned subsidiary, Drucker Mining, Inc. As a result of this
  disposal, the Company entered the development stage and its plan is to seek
  out investigate, and if warranted, acquire one or more resource properties and
  businesses and to pursue other related activities intended to enhance shareholder
  value.

These financial statements have been prepared on the assumption
that the Company will continue as a going concern, meaning it will continue its
operations for the foreseeable future and will be able to realize assets and
discharge liabilities in the ordinary course of business. The Company has
incurred losses since inception resulting in an accumulated deficit of
$6,500,353. Different bases of measurement may be appropriate if the Company is
not expected to continue operations for the foreseeable future. As of December
31, 2004 the Company is not able to finance day-to-day activities through
operations. The Companys continuation as a going concern is dependent upon its
ability to attain profitable operations and generate funds there from and/or
raise equity capital or borrowings sufficient to meet current and future
obligations.

Summary of Significant Accounting PoliciesUse of
estimates  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

Marketable Securities  Marketable securities are
classified as available-for-sale, stated at market value as determined by the
most recently traded price at the balance sheet date with the change in fair
value (unrealized gains or losses) during the period excluded from earnings and
recorded net of tax as a component of other comprehensive income. Realized gains
and losses are recognized in earnings.

Equipment  Equipment is stated at cost and is
depreciated over the assets estimated useful lives ranging from three to five
years. Significant improvements and betterments to equipment is capitalized
where it is probable that the expenditure resulted in an increase in the future
economic benefits expected to be obtained from the use of the asset beyond its
originally assessed standard of performance. Routine repairs and maintenance are
expensed when incurred. Gains and losses on disposal of equipment are recognized
in the statement of operations based on the net disposal proceeds less the
carrying amount of the assets.

Impairment of Long-lived Assets  The Company reports
the impairment of long-lived assets and certain identifiable intangibles in
accordance with Statement of Financial Accounting Standards (SFAS) No. 144,
Accounting for the Impairment or Disposal of Long-lived Assets. Certain
long-lived assets and identifiable intangibles held by the Company are reviewed
for impairment whenever assets or changes in circumstances indicate the carrying
amount of an asset may not be recoverable. Accordingly, an impairment loss is
recognized in the period it is determined.

Income taxes  The Company accounts for income taxes
following the provisions of SFAS No. 109 Accounting for Income Taxes. Under
SFAS No. 109 deferred income tax assets and liabilities are computed for
differences between the financial statements and tax bases of assets and
liabilities that will result in taxable or deductible amounts in the future,
based on enacted tax laws and rates applicable to the periods in which the
differences are expected to affect taxable income. Valuation allowances are
established when necessary to reduce deferred income tax assets to the amount
expected to be realized.

Foreign currency translations  The Companies functional
currency is the U.S. dollar. Assets and liabilities denominated in foreign
currencies are translated into U.S. dollars at exchange rates prevailing at the
balance sheet date and revenues and expenses are translated at average exchange
rates for the year. Resulting translation adjustments are reflected as a
separate component of stockholders equity. Transaction gains and losses that
arise from exchange rate fluctuations on transactions denominated in a currency
other than the functional currency are included in the results of operations as
incurred.

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21

Fair value of financial instruments  The carrying value
of cash, marketable securities, accounts payable and other accrued liabilities
and certain amounts due from and to related parties approximate their fair value
due to their short maturities. Certain amounts due to related parties are
repayable in shares and the fair value of these amounts are calculated with
reference to the fair value of the shares due.

Earnings per share  Basic earnings or loss per share
are based on the weighted average number of common shares outstanding. Diluted
earnings or loss per share is based on the weighted average number of common
shares outstanding and dilutive common stock equivalents. Basic earnings or loss
per share is computed by dividing income or loss (numerator) applicable to
common stockholders by the weighted average number of common shares outstanding
(denominator) for the period. All earnings or loss per share amounts in the
financial statements are basic earnings or loss per share, as defined by SFAS
No. 128, Earnings Per Share. Diluted earnings or loss per share do not differ
from basic earnings or loss per share for all periods presented. Convertible
securities that could potentially dilute basic earnings or loss per share in the
future such as options and warrants are not included in the computation of
diluted earnings or loss per share because to do so would be anti-dilutive. All
per share and per share information are adjusted retroactively to reflect stock
splits and changes in par value.

Stock-based compensation  Stock-based compensation -
The Company accounts for stock-based compensation using the intrinsic value
method prescribed in Accounting Principles Board ("APB") Opinion No. 25,
"Accounting for Stock Issued to Employees." Compensation cost for stock options,
if any, is measured as the excess of the quoted market price of the Company's
stock at the date of grant over the amount an employee must pay to acquire the
stock. SFAS No.123, "Accounting for Stock-Based Compensation," established
accounting and disclosure requirements using a fair-value-based method of
accounting for stock-based employee compensation plans. The Company has elected
to remain on its current method of accounting as described above, and has
adopted the disclosure requirements of SFAS No. 123. In December 2002, the FASB
issued SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and
Disclosure, amending FASB No. 123, and "Accounting for Stock-Based
Compensation". This statement amends Statement No. 123 to provide alternative
methods of transition for an entity that voluntarily changes to the fair value
based method of accounting for stock-based employee compensation. SFAS No. 148
amends APB Opinion No. 28 "Interim Financial Reporting" to require disclosure
about those effects in interim financial information. The Company adopts the
disclosure provisions and the amendment to APB No. 28 effective for interim
periods beginning after December 15, 2002.

Comprehensive income  The Company includes items of
other comprehensive income, such as translation adjustments and unrealized gains
or losses on marketable securities, in the financial statement and displays the
accumulated balance of other comprehensive income in the statement of
stockholders equity. The Company discloses comprehensive income, the total of
other comprehensive income and accumulated deficit, in the balance sheet.

Reclassification  Certain prior period amounts have
been reclassified to conform to the current years presentation.

Recent Accounting Pronouncements  The FASB issued the
following pronouncements, only one is expected to have a significant affect on
the financial statements:

In February 2007 the FASB issued SFAS No. 159, The Fair Value
Option for Financial Assets and Financial Liabilities. This Statement permits
entities to choose to measure many financial assets and financial liabilities at
fair value. Unrealized gains and losses on items for which the fair value option
has been elected are reported in earnings. SFAS No. 159 is effective for fiscal
years beginning after November 15, 2007. The Company is currently assessing the
impact of SFAS No. 159 on its financial position and results of operations.

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22

NOTE 2  EQUIPMENT

Equipments consist of the following:

NOTE 3  RELATED PARTY TRANSACTIONS

During the year ended December 31, 2004 the Company prepaid
travel expenses of $Nil (2003: $18,265) to an officer and director of the
Company.

|                              |   | 2004   |   |   | 2003   |  
|----------------------------- | - | ------ | - | - | ------ | -
|Computer equipment            | $ | 3,680  |   | $ | 9,347  |  
|Furniture and fixtures        |   | 9,290  |   |   | 11,026 |  
|Total                         |   | 12,970 |   |   | 20,373 |  
|Less accumulated depreciation |   | (6,622 | ) |   | (5,644 | )
|Net book value                | $ | 6,348  |   | $ | 14,729 |  

At December 31, 2004 the Company is owed $116,389 (2003:
$111,652) from a company with common directors. This loan is unsecured, bears
interest at the US Bank prime rate plus one percent calculated semi-annually and
has no specified repayment terms.

During the year ended December 31, 2004 interest of $6,621
(2003: $7,010) was paid to the Company by a company with common directors.

During the year ended December 31, 2004 the Company was charged
consulting fees of $262,754 (2003: $197,359) by companies with common directors
and with current and former directors of the Company.

Related party transactions are measured at the exchange amount
which is the amount agreed to by the related parties.

NOTE 4  INCOME TAXES

The provision for income taxes reported differs from the
amounts computed by applying aggregate US federal and state income tax rates for
the loss before tax provision due to the following:

|                                                                   |   | 2004       |   |   | 2003     |  
|------------------------------------------------------------------ | - | ---------- | - | - | -------- | -
|                                                                   |   |            |   |   |          |  
|Loss before income taxes                                           | $ | (1,159,825 | ) | $ | (899,988 | )
|Statutory tax rate                                                 |   | 40%        |   |   | 40%      |  
|                                                                   |   |            |   |   |          |  
|Expected recovery of income taxes computed at standard
      rates |   | (463,930   | ) |   | (359,995 | )
|Changes in valuation allowance                                     |   | 463,930    |   |   | 359,995  |  
|                                                                   |   |            |   |   |          |  
|Income tax recovery                                                | $ | -          |   | $ | -        |  

The approximate tax effect of each type of temporary difference
  that gives rise to the Companys deferred tax assets and liabilities are
  as follows:

|                                                         |   | 2004       |   |   | 2003       |  
|-------------------------------------------------------- | - | ---------- | - | - | ---------- | -
|                                                         |   |            |   |   |            |  
|Components of deferred tax assets and
      liabilities: |   |            |   |   |            |  
|Non capital loss carry forwards                          | $ | 3,045,000  |   | $ | 2,650,000  |  
|                                                         |   |            |   |   |            |  
|Less: Valuation allowance                                |   | (3,045,000 | ) |   | (2,650,000 | )
|                                                         |   |            |   |   |            |  
|Net deferred tax asset                                   | $ | -          |   | $ | -          |  

The Company has available net operating loss carry forwards of
approximately $6,400,000 (2003: $5,500,000) for tax purposes to offset future
taxable income, which expire beginning 2015. The Company has accumulated capital
losses of approximately $132,000 available to offset future years capital
gains. The potential deferred tax benefits of these losses carried-forward have
not been reflected in these financial statements due to the uncertainty
regarding their ultimate realization.

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23

NOTE 5  COMMON STOCK

Common stockAuthorized:50,000,000 shares of
common stock with a par value of $0.001 per share.

Issued and outstanding: During the year ended December 31,
2004 the Company issued 17,500,000 shares of common stock with a fair value of
$2,788,951 as part of the purchase consideration for Beijing Beike-Masic
Automation Engineering Company Limited ("BK") (See Note 6).

Share Purchase WarrantsAt December 31, 2004 the
Company has 11,084,130 (2003: 11,084,130) share purchase warrants outstanding.
Each warrant entitles the holder the right to purchase one additional unit of
the Company at $0.40 per unit until the earlier of March 31, 2005 and the
90th day after the day on which the weighted average trading price of
the Companys shares exceed $0.60 per share for 10 consecutive trading days.
Each unit consists of one common share of the Company and one additional
warrant. Each additional warrant entitles the holder thereof the right to
purchase one additional common share of the Company at $0.60 per share. The
additional warrants will expire one year after the occurrence of the exercise of
the original warrants. The warrants expired unexercised subsequent to December
31, 2004 (See Note 9).

Stock OptionsAt December 31, 2004 the Company has
2,950,000 (2003: 2,950,000) stock options outstanding to officers, directors and
employees (1,175,000) of the Company and consultants (1,775,000) to the Company
to purchase shares of the Companys common stock at an exercise price of $0.40
per share, expiring on March 31, 2006. The weighted average exercise price is
$0.40 per share and the number of stock options outstanding is equal to the
number exercisable as there are no vesting provisions. The options expired
unexercised subsequent to December 31, 2004 (See Note 9).

NOTE 6  TERMINATED TRANSACTION

By an agreement dated June 15, 2003 the Company agreed to
acquire 100% of the issued shares of BK for the issuance of 17,500,000 shares of
common stock (pre-consolidation) in escrow, and a further 25,173,600 common
shares (post-consolidated) after the shareholders have approved a consolidation
of the Company's shares on a 3 old shares for 1 new share basis and audited
financial statements of BK have been delivered. The Company agreed to pay legal
fees in common shares equal to 7% of the total shares issued under the
agreement. BK, a business corporation incorporated under the laws of the Peoples
Republic of China, is a provider of complete system solutions for industrial
automation and control.

During the year ended December 31, 2004 the Company issued
17,500,000 common shares with a fair value of $2,788,951 pursuant to this
agreement. However, as BK failed to deliver audited financial statements to the
Company, the Companys shareholders did not approve the forward split and
announced it had decided not to proceed with the acquisition of BK resulting in
these shares being cancelled during the year ended December 31, 2006 (See Note
9).

NOTE 7  ACQUISITION ADVANCES

Former directors of the Company, associates of former directors
of the Company and companies related to former directors of the Company received
funds from the Company for the advancement of the acquisition of BK, as
described in Note 6 above. The BK acquisition did not close and the acquisition
agreement was terminated subsequent to December 31, 2004 (See Note 9). The
Company demanded funds advanced be returned and subsequently initiated legal
action to recover the funds. During the year ended December 31, 2004 the Company
fully provided against these advances due to the uncertainty of their
collection. Subsequent to December 31, 2004 the Company recovered certain of
these advances (See Note 9).

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24

NOTE 8  MARKETABLE SECURITIES

During the year ended December 31, 2004 the Company disposed of
495,600 shares in Tanganyika Oil Company Ltd., a Company listed on the TSX
Venture Exchange. The marketable securities disposed of had a cost base of
$153,210 and an associated unrealized gain of $2,660,859, deferred in other
comprehensive income at December 31, 2003. The proceeds on disposal were
$2,502,106 resulting in a gain of $2,348,896. At December 31, 2004, there are
14,700 shares in Tanganyika Oil Company Ltd. remaining, with a cost base of
$4,599.

Reconciliation of unrealized gains included in other
comprehensive income is as follows:

There is no provision for income tax expense due to the
utilization of available income tax  loss carry-forwards.

|                                                    |   | 2004       |   |   | 2003       |  
|--------------------------------------------------- | - | ---------- | - | - | ---------- | -
|Beginning balance                                   | $ | 2,769,303  |   | $ | 54,315     |  
|Unrealized holding gains during period              |   | -          |   |   | 3,723,370  |  
|Reclassification  gains included in
      earnings |   | (2,660,859 | ) |   | (1,008,382 | )
|Ending balance                                      | $ | 108,444    |   | $ | 2,769,303  |  

NOTE 9  SUBSEQUENT EVENTS

Subsequent to the year ended December 31, 2004 the Company
borrowed 1,250,000 shares of Great China Mining, Inc. (GCM), a company quoted
on the OTC Bulletin Board, from a company with common directors. These shares
were disposed of for proceeds of $187,756. Subsequent to the share loan, GCM
merged with Continental Minerals Corporation (CMC), a company also listed on
the TSX-Venture Exchange. In accordance with the merger every 8.7873 GCM shares
were exchanged for one CMC share. The 1,250,000 shares of GCM were repaid
subsequent to year end.

Subsequent to December 31, 2004, a termination agreement was
entered into with the vendors of BK to put all parties back in the position they
were in before the acquisition agreement was executed including returning any BK
interest acquired and canceling all of the 17,500,000 common shares of the
Company that was issued as part of the acquisition agreement.

Subsequent to December 31, 2004, the Company reached a
settlement agreement with a former director and companies related to him for the
recovery of acquisition advances totaling CAD$200,000. These funds were received
subsequent to December 31, 2004.

Subsequent to December 31, 2004, action has been settled with
one of the former directors. The settlement called for the former director to
pay the Company USD $64,480, CAD $129,462, and to transfer of 9,639,000 shares
of common stock of GCM to the Company. Subsequent to December 31, 2004 the
Company received cash of USD $185,286 (CAD $198,562) in recovery of the advance.
9,639,000 shares of common stock of GCM were received during the year ended
December 31, 2006 in full settlement of the funds advanced to the directors. Of
the 9,639,000 shares of common stock of GCM received, 1,250,000 were returned to
a company with common directors.

Subsequent to the year ended December 31, 2004 the Company
disposed of its remaining 14,700 shares in Tanganyika Oil Company Ltd. The
proceeds on disposal were $110,935 resulting in a gain of $106,336.

Subsequent to the year ended December 31, 2004, all 11,084,130
of the share purchase warrants expired unexercised and 2,950,000 stock options
outstanding at December 31, 2004 expired unexercised.

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25

ITEM 8. Changes in and Disagreements With Accountants on
Accounting and Financial Disclosure

Effective March 18, 2004 Amisano Hanson, Chartered Accountants,
resigned as the principal accountant engaged to audit the financial statements
of Drucker, Inc. (the "Company"). Amisano Hanson performed the December 31, 2002
and 2001 audits of the Company's financial statements. During this period and
the subsequent interim period prior to their resignation, there were no
disagreements with Amisano Hanson on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedure, which
disagreements if not resolved to Amisano Hansons satisfaction would have caused
Amisano Hanson to make reference to this subject matter of the disagreements in
connection with Amisano Hansons audit report, nor were there any "reportable
events" as such term is defined in Item 304(a)(1)(iv) of Regulation S-K,
promulgated under the Securities Exchange Act of 1934, as amended ("Regulation
S-K").

On March 18, 2004, the Company engaged Clancy & Co.
P.L.L.C. to audit the Company's financial statements for the year ended December
31, 2003. Prior to its engagement, the Company had not consulted with Clancy
& Co. P.L.L.C. with respect to: (i) the application of accounting principles
to a specified transaction, either completed or proposed; (ii) the type of audit
opinion that might be rendered on the Company's financial statements; or (iii)
any matter that was either the subject or disagreement (as defined in Item
304(a)(1)(iv) of Regulation S-K) or a reportable event (as described in Item
304(a)(1)(iv) of Regulation S-K). The Board of Directors of the Company approved
the change in accountants described herein and Clancy & Co. performed the
December 31, 2003 audit of the Company's financial statements.

Due to timing constraints, Clancy & Co resigned as auditors
for the Company effective May 25, 2006. There were no reportable disagreements
between the Company and Clancy & Co. On May 26, 2007 the Company engaged
Dale Matheson Carr-Hilton Labonte, Chartered Accountants, (DMCL) to audit the
Company's financial statements. Prior to its engagement, the Company had not
consulted with DMCL with respect to: (i) the application of accounting
principles to a specified transaction, either completed or proposed; (ii) the
type of audit opinion that might be rendered on the Company's financial
statements; or (iii) any matter that was either the subject or disagreement (as
defined in Item 304(a)(1)(iv) of Regulation S-K) or a reportable event (as
described in Item 304(a)(1)(iv) of Regulation S-K). The Board of Directors of
the Company approved the change in accountants described herein and DMCL
performed the December 31, 2004 audit of the Company's financial statements.

ITEM 8A. Controls and Procedures

The Company's president, as chief executive officer, and the
Company's chief financial officer are responsible for establishing and
maintaining disclosure controls and procedures for the Company.

(a) Evaluation of Disclosure Controls and Procedures

Based on their evaluation as of December 15, 2007 the chief
executive officer and chief financial officer have concluded that the Company's
disclosure controls and procedures (as defined in Rule 13a-14(c) and 15d-15(e)
of the Securities Exchange Act of 1934, as amended) are effective to ensure that
information required to be disclosed by the Company in reports that the Company
files or submits under the Securities Exchange Act as amended is recorded,
processed, summarized and reported within the time periods specified in the
rules and forms of the Securities and Exchange Commission, with the exception
that the Company was not prepared to file this form 10KSB for the year ended
December 31, 2004 in a timely manner and has become

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26

delinquent in its reporting responsibilities. The Company has
taken measures to reorganize its affairs and is in the process of bringing its
required filings to a current status.

(b) Changes in Internal Controls

Subsequent to December 31, 2004 and to January 13, 2006, the
then board of directors failed to maintain the Companys internal controls.
Based on their subsequent evaluation as of December 15, 2007 the current chief
executive officer and chief financial officer have concluded that there were no
significant changes in the Company's internal controls over financial reporting
or in any other areas that could significantly affect the Company's internal
controls subsequent to the date of their most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses, with the exception of a lack of control over the then board of
directors in their disbursement of funds from the Company. Due to the lack of
economic size of its business, the Company relies upon its board of directors
for active management and maintenance of its internal controls over operations
and reporting. Subsequent to the year ended December 31, 2004, on January 13,
2006, the Company accepted all except one of the resignations of its then
directors and appointed two new directors to manage the Company and to bring its
required public filings to a current status. The Company subsequently determined
to put in place proper corporate governance wherein as a minimum, monthly
documented board meetings are to be held and are to include a review of
finances, there are to be outside directors on the board with an audit committee
composed of at least one outside director and the Company will separate the
board from day to day operations wherever practical.

ITEM 8B. Other Information

There were no other reportable events during the quarter ended
December 31, 2004.

PART III

ITEM 9. Directors, Executive Officers, Promoters, Control
Persons and Corporate Governance; Compliance With Section 16(a) of the Exchange
Act

(a) The following table furnishes the information concerning
our directors and officers as of December 31, 2006 as well as those who were
directors as of December 31, 2004. The directors of the Registrant are elected
every year and serve until their successors are elected and qualify.

|Name                        |  | Age |  | Title                          |  | Term  
|--------------------------- |  | --- |  | ------------------------------ |  | ------
|                            |  |     |  |                                |  |       
|Robert Smiley               |  | 60  |  | President                      |  | Annual
|(appointed January 13, 2006 |  |     |  |                                |  |       
|                            |  |     |  |                                |  |       
|Gerald William Runolfson    |  | 62  |  | Director (and former President |  |       
|(December 31, 2002          |  |     |  | re-appointed January 13, 2006) |  |       
|to June 15, 2003)           |  |     |  | Secretary and Director         |  | Annual
|                            |  |     |  |                                |  |       
|Aloysius (Ken) Kow          |  | 63  |  | Director                       |  | Annual
|(appointed January 13, 2006 |  |     |  |                                |  |       
|                            |  |     |  |                                |  |       
|Ronald Xiuru Xie            |  | 41  |  | President, CEO, Acting CFO     |  |       
|(appointed June 16, 2003)   |  |     |  | and Director (resigned         |  |       
|                            |  |     |  | January 13, 2006)              |  |       

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27

Nick Ringma
      
      56
      
      Vice President and Director(appointed June 16, 2003)
      
      
      
      (resigned January 13, 2006)Wei Zhang Liu
      
      53
      
      Director and Chairman(appointed August 11, 2003)
      
      
      
      (resigned January 13, 2006)Liang Hong
      
      40
      
      Director(appointed August 11, 2003)
      
      
      
      (resigned January 13, 2006)Liang Song Ge
      
      38
      
      Director(appointed August 11, 2003)
      
      
      
      (resigned January 13, 2006)Yi Kang Sun
      
      71
      
      Director(appointed August 11, 2003)
      
      
      
      (resigned January 13, 2006)


The term of office for each director is set at one (1) year or
until his/her successor is elected at the Company's annual meeting. The term of
office for each officer is determined by the board of directors.

As of August 31, 2003, the Board of Directors acts as the Audit
Committee and Compensation Committee.

(b) Identification of Significant Employees.

There are no employees other than the directors disclosed above
who make, or are expected to make, significant contributions to the business,
the disclosure of which would be material.

(c) Family Relationships. None

(d) Business Experience.

The following is a brief account of the business experience
during the past five years of each director and executive officer of the
Registrant, including principal occupations and employment during that period
and the name and principal business of any corporation or other organization in
which such occupation and employment were carried on.

MANAGEMENT EXPERIENCE

GERALD WILLIAM RUNOLFSON, during the fiscal year ended December
31, 2004 was Secretary and Director, age 62, and was President and Director of
Drucker, Inc. from 1991 to June 2003. He received a Bachelor of Science in Civil
Engineering in 1963 from University of Saskatchewan, Canada. He studied Business
Administration 1970 - 1971 at University of Alberta, Canada. From 1988 to 2000,
he has been President of International Butec Industries Corp., Vancouver, BC, a
company involved in mining exploration but switched to high tech (smart card
technology) in 2000. He has resigned as an officer and director from Butec
effective January 29, 2001. From 1991 to 1994 he was President of N-Viro
Recovery, Inc. and from 1994 to present he has been President of Elkon Products,
Inc. of Vancouver, B.C. The principal business of Elkon Products is the supply
of silica fume. Silica fume is a product 100 times finer than cement and is a
byproduct of the silicon metal manufacturing business. Elkon has the exclusive
Canadian distribution rights for all silica fume produced in Canada. The product
is used mainly in oil well cementing operation and in concrete construction. It
is delivered by bulk rail car from Quebec to Alberta and then delivered by
tanker truck to customers. Major customers include the oilfield service
companies: Halliburton, BJ Services. He has been a Director of Horseshoe Gold
Mines since 1991, a mining exploration company currently focusing on diamond
exploration in Northern Canada. He resigned as President of Drucker Inc. in June
2003 and was then appointed Secretary.

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28

RONALD XIURU XIE, age 41, President, Director, CEO, and Acting
CFO of Drucker, Inc. (appointed in June 2003) obtained a BA degree from Beijing
University of International Business & Economics in 1984 and a Master of Law
in 1986 from School of Law, Beijing University of International Business &
Economics. He obtained an LLB (law) in 1992 from Queen's University in Canada.
He is President and director of China NetTV Holdings, Inc. since July 2003 to
present. He was a founding partner of Allied Law Office in Beijing, PR China
since 1998. He was a Senior Partner, Great Wall Law Office in Beijing, China,
1995-1998. He is admitted to practice in China since 1988 and was called to the
Bar of Ontario, Canada in 1993. Mr. Xie will devote approximately 40% of his
time to company operations.

NICK RINGMA, age 56, was appointed a director of Drucker, Inc.
in June 2003. Mr. Ringma studied at Calvin College 1967-68 and obtained a BA in
1973 from Simon Fraser University in Vancouver, BC. From 1997 to present, he has
been Vice President and director of Digital Accelerator Corp. He has been a
director of Vertigo Technologies, Inc. from September 2002 to present. From
1980-1982, he was President of Miller Electronics - a Division of Gendis.

WEI ZHANG LIU, age 53, was appointed a director of Drucker,
Inc. on August 11, 2003. He obtained a Bachelor Degree from University of
Science and Technology Beijing ("USTB") in 1976 and also obtained a Bachelor
Degree from the Arts & Law School of USTB in 1982. During the period from
1990 to present, Mr. Liu acted as Vice G.M. and G.M. of BK Machinery; G.M. and
President of BK. He is in charge of overall affairs of BK and has turned the
company into a major manufacturer and provider of automation system solutions
and related products in China.

LIANG HONG, age 40, was appointed a director of Drucker, Inc.
on August 11, 2003. He obtained a Bachelor Degree in 1985 from Automation
Department of USTB. From the beginning of 2003 to the present, he has been Vice
G.M. in School-funded Industrial Group of USTB. His major responsibilities
include assessment for investment in connection with whole school's industry,
estimation of legal risks, project plan, capital operation, public relationship,
etc. Mr. Hong was a founder of BK and acts as Vice President, participating in
all major decisions and development plan of the company, and shouldering such
responsibilities as the establishment of technical and marketing teams,
operating management, organization of R & D, development of new technology,
administration of major projects, public relations, financing, etc. From 2001 to
2002, Mr. Hong set up Time High-Tech Co., Ltd. (THT) and acted as Vice G.M. Mr.
Hong participated in all initial activities including project assessment,
financing negotiations, incorporation of joint ventures. From 1999 to 2002, Mr.
Hong acted as vice director of Robot Institute of USTB.

LIANG SONG GE, age 38, was appointed a director of Drucker,
Inc. on August 11, 2003. He obtained a Bachelor Degree in 1986 from the
Automation Department of USTB and a Master Degree in 1989 from Automation
Department of Harbin Institute of Technology, China. From 1998 to 2002, Mr. Ge
acted as Vice G.M. of BK. Since the beginning of 2003, Mr. Ge has acted as G.M.
of BK.

YI KANG SUN, age 71, was appointed a director of Drucker, Inc.
on August 11, 2003. He is a professor of automation at USTB, obtained a Bachelor
Degree in 1952 from Tsinghua University in Beijing, China with a major in
Material Molding and Control Engineering. Since 1999, Mr. Sun has acted as
Technical Director of BK. He has been a director since incorporation of the
company, responsible for technology directions, application and management,
product development, international communication and development planning, R
& D, and project planning. From 1994 to 1999, Mr. Sun acted as Chief
Engineer of BK and was responsible for all major engineering and technological
issues.

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29

(e) Directors' Compensation

Each member of the Board of Directors receives outside travel
expenses for each Board meeting he attends and for each Committee meeting he
attends during the fiscal year. Directors who are also officers of the Company
receive no compensation for services as a director. Certain directors have
received consulting and other fees  see Item 10.

Indemnification of Officers and Directors

As permitted by Delaware Law, the Company may indemnify its
directors and officers against expenses and liabilities they incur to defend,
settle, or satisfy any civil or criminal action brought against them on account
of their being or having been Company directors or officers unless, in any such
action, they are adjudged to have acted with gross negligence or willful
misconduct.

Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers or persons
controlling the Company pursuant to the foregoing provisions, the Company has
been informed that, in the opinion of the Securities and Exchange Commission,
such indemnification is against public policy as expressed in that Act and is,
therefore, unenforceable.

Exclusion of Liability

The Delaware Corporation Law excludes personal liability for
its directors for monetary damages based upon any violation of their fiduciary
duties as directors, except as to liability for any breach of the duty of
loyalty, acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law, acts in violation of the Delaware Law,
or any transaction from which a director receives an improper personal benefit.
This exclusion of liability does not limit any right which a director may have
to be indemnified and does not affect any director's liability under federal or
applicable state securities laws.

Conflicts of Interest

The officers and directors of the Company will not devote more
than a portion of their time to the affairs of the Company. There will be
occasions when the time requirements of the Company's business conflict with the
demands of their other business and investment activities. Such conflicts may
require that the Company attempt to employ additional personnel. There is no
assurance that the services of such persons will be available or that they can
be obtained upon terms favorable to the Company.

There is no procedure in place to allow officers or directors
to resolve potential conflicts in an arms-length fashion. Accordingly, any
director will be required to use his or her discretion to resolve them in a
manner he or she considers appropriate.

The Company's officers and directors may actively negotiate or
otherwise consent to the purchase of a portion of their common stock as a
condition to, or in connection with, a proposed merger or acquisition
transaction. It is anticipated that a substantial premium over the initial cost
of such shares may be paid by the purchaser in conjunction with any sale of
shares by the Company's officers and directors which is made as a condition to,
or in connection with, a proposed merger or acquisition transaction. The fact
that a substantial premium may be paid to the Company's officers and directors
to acquire their shares creates a potential conflict of interest for them in
satisfying their fiduciary duties to the Company and its other shareholders.
Even though such a sale could result in a substantial profit to them, they

---

30

would be legally required to make the decision based upon the
best interests of the Company and the Company's other shareholders, rather than
their own personal pecuniary benefit.

ITEM 10. Executive Compensation

(a) Cash Compensation. Compensation paid, for all services
provided during the fiscal year ended December 31, 2004, to each of our
executive officers and to all officers as a group is set forth below.

SUMMARY COMPENSATION TABLE OF EXECUTIVES

Annual Compensation
      
      AwardsName and
      Year
      Salary
      Bonus
      Other Annual
      Restricted
      SecuritiesPrincipal
      
      ($)
      ($)
      Compensation
      Stock Award
      UnderlyingPosition
      
      
      
      ($)
      ($)
      Options/SARs(#)Gerald Runolfson
      2004
      0
      0
      18,000
      0
      0Secretary/Director
      2003
      0
      0
      20,000
      0
      02002
      0
      0
      23,000
      0
      02001
      0
      0
      24,000
      0
      0Ronald Xie
      2004
      0
      0
      180,350
      0
      0President/Director
      2003
      0
      20,000
      70,000
      0
      02002
      0
      0
      0
      0
      02001
      0
      0
      0
      0
      0Nick Ringma
      2004
      0
      0
      42,800
      0
      0Vice President/Director
      2003
      0
      10,000
      28,000
      0
      02002
      0
      0
      0
      0
      02001
      0
      0
      0
      0
      0Aloysius (Ken) Kow
      2004
      0
      0
      0
      0
      0Director
      2003
      0
      0
      36,919
      0
      0(resigned August 2003)(re-appointed January 2006)Zhang Liu Wei
      2004
      0
      0
      0
      0
      0Director
      2003
      0
      0
      0
      0
      0Hong Liang
      2004
      0
      0
      60,000
      0
      0Director
      2003
      0
      0
      0
      0
      0Liang Song Ge
      2004
      0
      0
      0
      0
      0Director
      2003
      0
      0
      0
      0
      0Liang Hong
      2004
      0
      0
      0
      0
      0Director
      2003
      0
      0
      0
      0
      0Yi Kang Sun
      2004
      0
      0
      0
      0
      0Director
      2003
      0
      0
      0
      0
      0Joseph Tong
      2003
      0
      0
      0
      0
      0Director(resigned June 2003)Ernest Cheung
      2003
      0
      0
      6,000
      0
      0Secretary
      2002
      0
      0
      25,000
      0
      0(resigned June 2003)
      2001
      0
      0
      48,000
      0
      0Patrick Chan
      2003
      0
      0
      0
      0
      0Chairman
      2002
      0
      0
      0
      0
      0(resigned June 2003)
      2001
      0
      0
      0
      0
      0Officers
      2004
      0
      0
      301,150
      0
      0as a group
      2003
      0
      30,000
      124,000
      0
      02002
      0
      0
      48,000
      0
      02001
      0
      0
      72,000
      0
      0


(b) Compensation Pursuant to Option Plans. See Summary
Compensation Table of Executives

(c) Other Compensation.

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31

None. No stock appreciation rights or warrants to management
exist.

(d) Compensation of Directors.

Compensation paid by us for all services provided during the
fiscal year ended December 31, 2004 to each of our directors and to all
directors as a group is set forth above.

(e) Termination of Employment and Change of Control
Arrangements. None

(f) Stock purchase options:

| | Patrick Chan                      | 550,000 shares (1)
| | --------------------------------- | ------------------
| | FKT Exploration Consultants, Ltd. | 325,000 shares (2)
| | Ken K Consulting, Ltd.            | 325,000 shares (3)
| | Cobilco Inc.                      | 550,000 shares (4)
| | Lancaster Pacific Investment Ltd. | 550,000 shares (5)
| | Gerry Runolfson                   | 300,000 shares (6)
| | Yonderiche Int'l Consultants      | 150,000 shares (7)
| | 808719 Ont. Ltd.                  | 100,000 shares (8)
| | Gemsco Management Ltd.            | 100,000 shares (9)

The above options were issued in November 1999 with expiry
March 31, 2006 and exercisable at US$0.40 per share. As of the date of this
report all of the above options expired unexercised.

At the time of the issuance of the options:

|(1) | Mr. Chan was Chairman of the Board.                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | FKT Exploration Consultant, Ltd. is owned by Fred Tse, a
      consultant to the Company.                                                                       
|(3) | Ken K Consultant, Ltd. is owned by Aloysius (Ken) Kow, a
      paid consultant and director of the Company.                                                     
|(4) | Cobilco is owned by Raoul Tsakok, a major shareholder of
      Richco Investors, Inc. which is in turn a shareholder of the
    Company.                        
|(5) | Lancaster Pacific Investment, Ltd. is owned by Paul Chan,
      a consultant to the Company.                                                                    
|(6) | Mr. Runolfson is a current director and past President of
      the Company.                                                                                    
|(7) | Yonderiche Int'l Consultants is owned by Jack Song, a
      consultant to the Company.                                                                          
|(8) | 808719 Ont., Ltd. is owned and controlled by Joe Tong, a
      director of the Company.                                                                         
|(9) | Gemsco Management, Ltd. is owned and controlled by
      Maurice Tsakok, a director of Richco Investors, Inc. which is a major
      shareholder of the Company.

Section 16(a) of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), requires the Registrant's officers and directors,
and persons who own more than 10% of a registered class of the Registrant's
equity securities, to file reports of ownership and changes in ownership of
equity securities of the Registrant with the Securities and Exchange Commission.
Officers, directors and greater-than 10% shareholders are required by the
Securities and Exchange Commission regulation to furnish us with copies of all
Section 16(a) forms that they file. All prior officers and directors had
previously filed reports under 16a as required, although all of them were filed
late in 2003 as to Forms 3. To the knowledge of the Company, no reports have
been filed for 2004 and subsequent periods.

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32

ITEM 11. Security Ownership of Certain Beneficial Owners and
Management and Related Stockholder Matters

Beneficial owners of five percent (5%) or greater, of the
Registrant's Common Stock and Warrants: No Preferred Stock is outstanding at the
date of this offering. The following sets forth information with respect to
ownership by holders of more than five percent (5%) of the Registrant's Common
Stock known by us based upon 49,976,250 shares outstanding at December 31, 2004.

(i) Title
      
          of 
        Class
    
    Name and Address of Beneficial Owner
    
    Amount and Nature of Beneficial Interest
    
    Percent of ClassCommon Stock
    
    Richco Investors, Inc. 789
      West Pender St. #950 Vancouver, B.C. Canada V6C 1H2
    
    9,225,000 *
    
    18.46%Common Shares
    
    Beijing Beike Machinery
      Electronics Materials Hightech Corp.
    
    17,500,000 **
    
    35.02%


* 9,225,000 shares are owned by Richco Investors, Inc. Richco
Investors, Inc. is beneficially owned by Raoul Tsakok through ownership of
approximately 50% of the shares of common stock of Richco Investors, Inc.
Additionally, Mr. Tsakok, through Cobilco, Inc., has an option to acquire
550,000 shares of the Company.

** Liang Song Ge, Liang Hong, Wei Zhang Liu, Yi Kong Sun, and
USTB (university) received an aggregate of 17,500,000 shares. Subsequent to
December 31, 2004 the 17,500,000 shares were returned to the Company and
cancelled.

(ii)

The following sets forth information with respect to our Common
Stock beneficially owned by each officer and director of the Company at December
31, 2004 and by all directors and officers as a group. (Table includes options
granted to officers and directors. See Item 10(f) Stock Purchase Options.)

Title
      
      Name of
      
      Amount and
      
      Percentof
      
      Beneficial
      
      Nature of
      
      ofClass
      
      Owner
      
      Beneficial Ownership
      
      ClassCommon
      
      Gerald Runolfson
      
      512,501 ***
      
      1.5%Director(former President)Vancouver, B.C., Canada
      
      (812,501 *** including options
        2.4%)


*** Porta-Pave Industries, Inc. (a company owned by the
Runolfson family) owns 380,002 shares. Gerald Runolfson individually owns
132,499 shares and has an option to acquire 300,000 shares.

ITEM 12. Certain Relationships and Related Transactions, and
Director Independence

Richco Investors, Inc., a major shareholder of the Company, is
indebted to the Company for $116,389 at December 31, 2004, with no fixed terms
of repayment.

---

33

On June 15, 2003, the Company entered into an Acquisition
Agreement to acquire 100% of the issued and outstanding shares of Beijing
Beike-Masic Automation Engineering Company Limited ("BK"), a Chinese company
specializing in industrial automation, in exchange for 93,020,800 shares of
common stock of the Company, calculated on pre-consolidation basis. The
Agreement provided for a one for three reverse split of all the outstanding
shares of Drucker to be approved by shareholders before the issuance of the
shares may be completed. Pursuant to the Agreement, the Company issued
17,500,000 common shares pre-consolidation February 1, 2004 for the acquisition
of 25% of the BK shares.

The new officers, directors, and principal shareholders of the
Company, Liang Song Ge, Liang Hong, Wei Zhang Liu, Yi Kong Sun, and USTB
(university) received an aggregate of 17,500,000 shares in 2004 and were to
receive an additional 75,520,800 shares in 2004 upon completion of a reverse
split or increase of authorized capital. Upon the completion of the proposed
reverse split or increase of authorized capital the Company committed to issue
to an officer 6,511,456 shares in payment of legal fees for the transaction,
which is equal to 7% of the stock issued and to be issued for the BK
transaction. Neither the reverse split nor the increase of authorized capital of
the Company received shareholders' approval and the acquisition transaction and
agreement was terminated.

ITEM 13. Exhibits

None for the reporting period

ITEM 14. Principal Accountant Fees and Services

(1) Audit Fees

Dale Matheson Carr-Hilton Labonte, LLP (DMCL), provided audit
services to the Company in connection with its annual report for the fiscal year
ended December 31, 2004.

Clancy and Co., P.L.L.C. {"Clancy") provided audit services to
the Company in connection with its annual report for the fiscal year ended
December 31, 2003.

Amisano Hanson ("AH") provided audit services to the Company in
connection with the Company's annual report for the fiscal year ended 2002.

The aggregate fees billed by DMCL for the 2004 audit of the
Company's annual financial statements were $22,000. The aggregate fees billed by
Clancy for the 2003 audit of the Company's annual financial statements was
$12,000 and the aggregate fees billed by AH for the 2003 quarterly reviews of
the Company was $9,369. The aggregate fees billed by AH for the 2002 audit of
the Company's annual financial statements and a review of the Company's
quarterly financial statements was $31,319.

(2) Audit Related Fees

No fees were billed by DMCL, Clancy or AH to the Company for
professional services that are reasonably related to the audit or review of the
Company's financial statements that are not disclosed in "Audit Fees" above for
either 2004, 2003 or 2002.

(3) Tax Fees

No fees were billed by DMCL, Clancy or AH to the Company in
2004, 2003 or in 2002 for professional services rendered in connection with the
preparation of the Company's tax returns for the period.

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34

(4) All Other Fees

No fees were billed by DMCL, Clancy or AH to the Company for
other professional services rendered or any other services not disclosed above.

(5) Audit Committee Pre-Approval

As of August 31, 2003, the Board of Directors acts as the Audit
Committee and the Compensation Committee.



Signatures

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|                        | DRUCKER, INC.
|----------------------- | -------------
|                        |              
|Date: December 15, 2007 | By:          
|                        |              
|                        |              

In accordance with the Exchange Act, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.

Date: December 15, 2007
    By:
    /s/ Robert SmileyRobert Smiley,President and DirectorDate: December 15, 2007
    
    /s/ Aloysius (Ken) KowAloysius (Ken) Kow,DirectorDate: December 15, 2007
    
    /s/ Gerald W. RunolfsonGerald W. Runolfson,Director


---