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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

Form 10-Q

(Mark One)

[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
  SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2008

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

For the transition period from __________to ____________

Commission file number333-141131

MABCURE INC.(Exact name of
registrant as specified in its charter)

|Nevada                                           | 20-4907822                       
|------------------------------------------------ | ---------------------------------
|                                                 |                                  
|(State or other jurisdiction of incorporation or | (IRS Employer Identification No.)
|organization)                                    |                                  

3702 South Virginia Street, #G12-401, Reno, Nevada
89502-6030(Address of principal executive offices) (zip code)

(775) 338-2598(Registrants telephone number,
including area code)

Not Applicable(Former name, former address and
former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (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.

Yes [ x ] No []

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See definitions of large accelerated filer, accelerated
filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.
(Check one):

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

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2

Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ x ] No []

APPLICABLE ONLY TO CORPORATE REGISTRANTS

State the number of shares outstanding of each of the issuers
classes of common stock, as of the latest practicable date:

27,000,000 common shares issued and outstanding as of May
19, 2008

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3

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Our financial statements are stated in United States dollars
and are prepared in accordance with United States generally accepted accounting
principles.

It is the opinion of management that the interim financial
statements for the quarter ended March 31, 2008 include all adjustments
necessary in order to ensure that the interim financial statements are not
misleading.

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4

MABCURE INC.(A Development Stage Company)

FINANCIAL STATEMENTS

MARCH 31, 2008

(Unaudited)

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5

|MABCURE INC.                 
|-----------------------------
|(A Development Stage Company)
|BALANCE SHEETS               
|(Stated in US Dollars)       
|                             

|                                                              |   | March 31,   |   |   | December 31,   |  
|------------------------------------------------------------- | - | ----------- | - | - | -------------- | -
|                                                              |   | 2008        |   |   | 2007           |  
|                                                              |   | (Unaudited) |   |   | (Audited)      |  
|                                                              |   |             |   |   |                |  
|                                                              |   |             |   |   |                |  
|                                                              |   |             |   |   |                |  
|                                                              |   |             |   |   |                |  
|ASSETS                                                        |   |             |   |   |                |  
|                                                              |   |             |   |   |                |  
|Total assets                                                  | $ | -           |   | $ | -              |  
|                                                              |   |             |   |   |                |  
|                                                              |   |             |   |   |                |  
|                                                              |   |             |   |   |                |  
|                                                              |   |             |   |   |                |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                         |   |             |   |   |                |  
|                                                              |   |             |   |   |                |  
|Current                                                       |   |             |   |   |                |  
|Accounts payable and
      accrued liabilities                | $ | 42,413      |   | $ | 4,000          |  
|Loan payable                                                  |   | 87,680      |   |   | 45,265         |  
|                                                              |   |             |   |   |                |  
|Total current liabilities                                     |   | 130,093     |   |   | 49,265         |  
|                                                              |   |             |   |   |                |  
|Stockholders deficit                                         |   |             |   |   |                |  
|Common stock (Note 5)                                         |   |             |   |   |                |  
|Authorized:                                                   |   |             |   |   |                |  
|1,500,000,000 common shares, par value $0.001
      per share |   |             |   |   |                |  
|Issued and
      outstanding:                                 |   |             |   |   |                |  
|27,000,000 common shares                                      |   | 27,000      |   |   | 27,000         |  
|Additional paid-in capital                                    |   | 24,000      |   |   | 24,000         |  
|Donated capital (Note
      5)                                |   | 11,500      |   |   | 10,000         |  
|Deficit accumulated during the
      development stage        |   | (192,593    | ) |   | (110,265       | )
|                                                              |   |             |   |   |                |  
|Total stockholders deficit                                   |   | (130,093    | ) |   | (
      49,265 | )
|                                                              |   |             |   |   |                |  
|Total liabilities and stockholders deficit                   | $ | -           |   | $ | -              |  

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

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6

|MABCURE INC.                        
|------------------------------------
|(A Development Stage Company)       
|STATEMENTS OF OPERATIONS (Unaudited)
|(Stated in US Dollars)              
|                                    

|                                                    |   |                |   |   |                |   |   | May 8, 2006   |  
|--------------------------------------------------- | - | -------------- | - | - | -------------- | - | - | ------------- | -
|                                                    |   |                |   |   |                |   |   | (Date of      |  
|                                                    |   | 3 months ended |   |   | 3 months ended |   |   | Inception) to |  
|                                                    |   | March 31,      |   |   | March 31,      |   |   | March 31,     |  
|                                                    |   | 2008           |   |   | 2007           |   |   | 2008          |  
|                                                    |   |                |   |   |                |   |   |               |  
|                                                    |   |                |   |   |                |   |   |               |  
|                                                    |   |                |   |   |                |   |   |               |  
|ADMINISTRATION EXPENSES                             |   |                |   |   |                |   |   |               |  
|Management fees                                     | $ | 1,500          |   | $ | 1,500          |   | $ | 11,500        |  
|Consulting fees                                     |   | 26,220         |   |   | -              |   |   | 26,220        |  
|Filing fees                                         |   | 1,367          |   |   | -              |   |   | 2,805         |  
|Professional fees                                   |   | 53,241         |   |   | 49,000         |   |   | 152,068       |  
|                                                    |   |                |   |   |                |   |   |               |  
|                                                    |   |                |   |   |                |   |   |               |  
|Loss for the period                                 | $ | (82,328        | ) | $ | (50,500        | ) | $ | (192,593      | )
|                                                    |   |                |   |   |                |   |   |               |  
|Basic and diluted loss per share                    | $ | (0.00          | ) | $ | (0.02          | ) | $ | (0.05         | )
|                                                    |   |                |   |   |                |   |   |               |  
|Weighted average number of shares
      outstanding |   | 27,000,000     |   |   | 3,868,530      |   |   | 1,171,292     |  

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

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7

|MABCURE INC.                                  
|----------------------------------------------
|(A Development Stage Company)                 
|STATEMENT OF STOCKHOLDERS DEFICIT (Unaudited)
|(Stated in US Dollars)                        
|                                              

|                                |  | Common Stock |   |   |         |   |   |            |   |   |                |  |   |            
|------------------------------- |  | ------------ | - | - | ------- | - | - | ---------- | - | - | -------------- |  | - | -----------
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   | Deficit    
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   | Accumulated
|                                |  |              |   |   |         |   |   | Additional |   |   | Donated        |  |   | During the 
|                                |  |              |   |   |         |   |   | Paid-in    |   |   | Capital        |  |   | Development
|                                |  | Number       |   |   | Amount  |   |   | Capital    |   |   | (Note
      5) |  |   | Stage      
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|Balance, May 8, 2006 (Date of   |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|Inception)                      |  | -            |   | $ | -       |   | $ | -          |   | $ | -              |  | $ | -          
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|Common stock issued for cash at |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|$0.02 per share, December 20,   |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|2006                            |  | 2,550,000    |   |   | 2,550   |   |   | 48,450     |   |   | -              |  |   | -          
|Donated services                |  | -            |   |   | -       |   |   | -          |   |   | 4,000          |  |   | -          
|Loss for the period             |  | -            |   |   | -       |   |   | -          |   |   | -              |  |   | (4,000     
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|Balance, December 31, 2006      |  | 2,550,000    |   |   | 2,550   |   |   | 48,450     |   |   | 4,000          |  |   | (4,000     
|Donated services                |  | -            |   |   | -       |   |   | -          |   |   | 6,000          |  |   | -          
|Forward stock split (20:1)      |  | 48,450,000   |   |   | 48,450  |   |   | (48,450    | ) |   | -              |  |   | -          
|Returned to treasury            |  | (24,000,000  | ) |   | (24,000 | ) |   | 24,000     |   |   | -              |  |   | -          
|Loss for the period             |  | -            |   |   | -       |   |   | -          |   |   | -              |  |   | (106,250   
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|Balance,December 31, 2007       |  | 27,000,000   |   |   | 27,000  |   |   | 24,000     |   |   | 10,000         |  |   | (110,265   
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|Donated services                |  | -            |   |   | -       |   |   | -          |   |   | 1,500          |  |   | -          
|Loss for the period             |  | -            |   |   | -       |   |   | -          |   |   | -              |  |   | (82,328    
|                                |  |              |   |   |         |   |   |            |   |   |                |  |   |            
|Balance, March 31, 2008         |  | 27,000,000   |   | $ | 27,000  |   | $ | 24,000     |   | $ | 11,500         |  | $ | (192,593   

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

---

8

|MABCURE INC.                        
|------------------------------------
|(A Development Stage Company)       
|STATEMENTS OF CASH FLOWS (Unaudited)
|(Stated in US Dollars)              
|                                    

|                                                            |   |           |   |   |           |   |   | May 8,     |  
|----------------------------------------------------------- | - | --------- | - | - | --------- | - | - | ---------- | -
|                                                            |   |           |   |   |           |   |   | 2006 (Date |  
|                                                            |   |           |   |   |           |   |   | of         |  
|                                                            |   | 3 months  |   |   | 3 months  |   |   | Inception) |  
|                                                            |   | ended     |   |   | ended     |   |   | to         |  
|                                                            |   | March 31, |   |   | March 31, |   |   | March 31,  |  
|                                                            |   | 2008      |   |   | 2007      |   |   | 2008       |  
|                                                            |   |           |   |   |           |   |   |            |  
|                                                            |   |           |   |   |           |   |   |            |  
|CASH FLOWS FROM OPERATING ACTIVITIES                        |   |           |   |   |           |   |   |            |  
|Loss for the period                                         | $ | (82,328   | ) | $ | (50,500   | ) | $ | (191,093   | )
|                                                            |   |           |   |   |           |   |   |            |  
|Adjustments to reconcile net loss to net
      cash used by |   |           |   |   |           |   |   |            |  
|operating activities                                        |   |           |   |   |           |   |   |            |  
|Donated services                                            |   | 1,500     |   |   | 1,500     |   |   | 10,000     |  
|Decrease in
      prepaid expenses                          |   | -         |   |   | 4,000     |   |   | -          |  
|Increase in accounts payable and accrued liabilities        |   | 38,413    |   |   | -         |   |   | 42,413     |  
|                                                            |   |           |   |   |           |   |   |            |  
|Net cash used in
      operating activities                 |   | (42,415   | ) |   | (45,000   | ) |   | (138,680   | )
|                                                            |   |           |   |   |           |   |   |            |  
|CASH FLOWS FROM FINANCING ACTIVITIES                        |   |           |   |   |           |   |   |            |  
|Increase in loan payable                                    |   | 42,415    |   |   | -         |   |   | 87,680     |  
|Issuance of common
      shares                             |   | -         |   |   | -         |   |   | 51,000     |  
|                                                            |   |           |   |   |           |   |   |            |  
|Net cash provided by
      financing activities             |   | 42,415    |   |   | -         |   |   | 138,680    |  
|                                                            |   |           |   |   |           |   |   |            |  
|Decrease in cash during the period                          |   | -         |   |   | (45,000   | ) |   | -          |  
|                                                            |   |           |   |   |           |   |   |            |  
|Cash beginning of period                                    |   | -         |   |   | 45,000    |   |   | -          |  
|                                                            |   |           |   |   |           |   |   |            |  
|Cash end of period                                          |   | -         |   |   | -         |   |   | -          |  
|                                                            |   |           |   |   |           |   |   |            |  
|Supplemental disclosure of cash flow
      information:     |   |           |   |   |           |   |   |            |  
|Cash paid during the period for:                            |   |           |   |   |           |   |   |            |  
|Interest                                                    | $ | -         |   | $ | -         |   | $ | -          |  
|Income taxes                                                | $ | -         |   | $ | -         |   | $ | -          |  

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

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9

|MABCURE HOLDINGS INC.            
|---------------------------------
|(A Development Stage Company)    
|NOTES TO THE FINANCIAL STATEMENTS
|(Stated in US Dollars)           
|March 31, 2008                   
|                                 

|1. | NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING
      POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The Company was incorporated in the State of Nevada on
      May 8, 2006. The Company is in the business of developing biotech products
      in China. The Company is considered to be a development stage company as
      it has not generated revenues from operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The accompanying financial statements have been prepared
      assuming the Company will continue as a going concern. As of March 31,
      2008, the Company has a working capital of deficiency of $130,093, has not
      yet achieved profitable operations and has accumulated a deficit of
      $192,593 since inception. Its ability to continue as a going concern is
      dependent upon the ability of the Company to obtain the necessary
      financing to meet its obligations and pay its liabilities arising from
      normal business operations when the come due. The outcome of these matters
      cannot be predicted with any certainty at this time and raise substantial
      doubt that the Company will be able to continue as a going concern. These
      financial statements do not include any adjustments to the amounts and
      classification of assets and liabilities that may be necessary should the
      Company be unable to continue as a going concern.                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Unaudited Interim Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The accompanying unaudited interim financial statements
      have been prepared in accordance with generally accepted accounting
      principles in the United States (US GAAP) for interim financial
      information and with the instructions to Form 10-QSB of Regulation S-B.
      They may not include all information and footnotes required by US GAAP for
      complete financial statements. However, except as disclosed herein, there
      has been no material changes in the information disclosed in the notes to
      the financial statements for the initial period ended December 31, 2007
      included in the Companys Form SB-2 filed with the Securities and Exchange
      Commission (SEC). The interim unaudited financial statements should be
      read in conjunction with those financial statements included in the Form
      SB-2. In the opinion of Management, all adjustments considered necessary
      for a fair presentation, consisting solely of normal recurring
      adjustments, have been made. Operating results for the period ended March
      31, 2008 are not necessarily indicative of the results that may be
      expected for the year ending December 31, 2008.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The financial statements have, in managements opinion,
      been properly prepared within the framework of the significant accounting
      policies summarized below:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Organizational and Start-up Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Costs of start-up activities, including organizational
      costs, are expensed as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Development Stage Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The Company is in the development stage. Since its
      formation, the Company has not yet realized any revenues from its planned
      operations. The Company is in the business of developing biotech products
      in China                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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10

|MABCURE INC.                     
|---------------------------------
|(A Development Stage Company)    
|NOTES TO THE FINANCIAL STATEMENTS
|(Stated in US Dollars)           
|March 31, 2008                   
|                                 

SIGNIFICANT ACOUNTING POLICIES(contd)

Financial Instruments

The carrying value of the Companys
financial instruments, consisting of cash, prepaid expenses and accounts payable
and accrued liabilities approximate their fair value due to the short-term
maturity of such instruments. Unless otherwise noted, it is managements opinion
that the Company is not exposed to significant interest, currency or credit
risks arising from these financial statements.

Income Taxes

The Company has adopted SFAS No. 109 
Accounting for Income Taxes. SFAS No. 109, requires the use of the asset and
liability method of accounting of income taxes. Under the asset and liability
method of SFAS No. 109, deferred tax assets and liabilities are recognized for
the future tax consequences attributable to temporary differences between the
financial statements carrying amounts of existing assets and liabilities and
their respective tax bases.

Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or
settled.

Basic and Diluted Loss per
Share

In accordance with SFAS No. 128 
Earnings Per Share, the basic loss per common share is computed by dividing
net loss available to common stockholders by the weighted average number of
common shares outstanding. Diluted loss per common share is computed similar to
basic loss per common share except that the denominator is increased to include
the number of additional common shares that would have been outstanding if the
potential common shares had been issued and if the additional common shares were
dilutive. At March 31, 2008, the Company had no stock equivalents that were
anti-dilutive and excluded in the loss per share computation.

Stock-based Compensation

In December 2004, the FASB issued SFAS
No. 123R, Share-Based Payment, which replaced SFAS No. 123, Accounting for
Stock-Based Compensation and superseded APB Opinion No. 25, Accounting for
Stock Issued to Employees. In January 2005, the Securities and Exchange
Commission (SEC) issued Staff Accounting Bulletin (SAB) No. 107,
Share-Based Payment, which provides supplemental implementation guidance for
SFAS No. 123R. SFAS No. 123R requires all share-based payments to employees,
including grants of employee stock options, to be recognized in the financial
statements based on the grant date fair value of the award. SFAS No. 123R was to
be effective for interim or annual reporting periods beginning on or after June
15, 2005, but in April 2005 the SEC issued a rule that will permit most
registrants to implement SFAS No. 123R at the beginning of their next fiscal
year, instead of the next reporting period as required by SFAS No. 123R. The
pro-forma disclosures previously permitted under SFAS No. 123 no longer will be
an alternative to financial statement recognition. Under SFAS No. 123R, the
Company must determine the appropriate fair value model to be used for valuing
share-based payments, the amortization method for compensation cost and the
transition method to be used at date of

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11

|MABCURE INC.                     
|---------------------------------
|(A Development Stage Company)    
|NOTES TO THE FINANCIAL STATEMENTS
|(Stated in US Dollars)           
|March 31, 2008                   
|                                 

SIGNIFICANT ACCOUNTING POLICIES
(contd)

adoption. The transition provisions
include prospective and retroactive adoption methods. Under the retroactive
method, prior periods may be restated either as of the beginning of the year of
adoption or for all periods presented. The prospective method requires that
compensation expense be recorded for all unvested stock options and restricted
stock at the beginning of the first quarter of adoption of SFAS No. 123R, while
the retroactive methods would record compensation expense for all unvested stock
options and restricted stock beginning with the first period restated. The
Company has adopted the requirements of SFAS No. 123R which did not have any
impact on the financial statements as, to date, the Company has not granted any
stock options or any other share based payments..

The Company accounts for equity
instruments issued in exchange for the receipt of goods or services from other
than employees in accordance with SFAS No. 123 and the conclusions reached by
the Emerging Issues Task Force in Issue No. 96-18, Accounting for Equity
Instruments That Are Issued to Other Than Employees for Acquiring or in
Conjunction with Selling Goods or Services (EITF 96-18). Costs are measured
at the estimated fair market value of the consideration received or the
estimated fair value of the equity instruments issued, whichever is more
reliably measurable. The value of equity instruments issued for consideration
other than employee services is determined on the earlier of a performance
commitment or completion of performance by the provider of goods or services as
defined by EITF 96-18.

The Company has not adopted a stock
option plan and has not granted any stock options. Accordingly, no stock-based
compensation has been recorded to date.

Recent Accounting
Pronouncements

In February 2006, the FASB issued SFAS
No. 155, Accounting for Certain Hybrid Financial Instruments-an amendment of
FASB Statements No. 133 and 140, to simplify and make more consistent the
accounting for certain financial instruments. SFAS No. 155 amends SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities, to permit
fair value remeasurement for any hybrid financial instrument with an embedded
derivative that otherwise would require bifurcation, provided that the whole
instrument is accounted for on a fair value basis. SFAS No. 155 amends SFAS No.
140, Accounting for the Impairment or Disposal of Long-Lived Assets, to
allow a qualifying special-purpose entity to hold a derivative financial
instrument that pertains to a beneficial interest other than another derivative
financial instrument. SFAS No. 155 applies to all financial instruments acquired
or issued after the beginning of an entitys first fiscal year that begins after
September 15, 2006, with earlier application allowed. This standard is not
expected to have a significant effect on the Companys future reported financial
position or results of operations.

In March 2006, the FASB issued SFAS No.
156, "Accounting for Servicing of Financial Assets, an amendment of FASB
Statement No. 140, Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities". This statement requires all separately
recognized servicing assets and servicing liabilities be initially measured at
fair value, if practicable, and permits for subsequent measurement using either
fair value measurement with changes in fair value reflected in earnings or the

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12

|MABCURE INC.                     
|---------------------------------
|(A Development Stage Company)    
|NOTES TO THE FINANCIAL STATEMENTS
|(Stated in US Dollars)           
|March 31, 2008                   
|                                 

|   | SIGNIFICANT ACCOUNTING POLICIES
(contd)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | amortization and impairment requirements of Statement No.
      140. The subsequent measurement of separately recognized servicing assets
      and servicing liabilities at fair value eliminates the necessity for
      entities that manage the risks inherent in servicing assets and servicing
      liabilities with derivatives to qualify for hedge accounting treatment and
      eliminates the characterization of declines in fair value as impairments
      or direct write-downs. SFAS No. 156 is effective for an entitys first
      fiscal year beginning after September 15, 2006. This adoption of this
      statement is not expected to have a significant effect on the Companys
      future reported financial position or results of operations.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | On December 20, 2006, the Company issued 2,550,000 shares
      of common stock at a price of $0.02 per share for total proceeds of
      $51,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|2. | COMMON STOCK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Common shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The common shares of the Company are all of the same
      class, are voting and entitle stockholders to receive dividends. Upon
      liquidation or wind-up, stockholders are entitled to participate equally
      with respect to any distribution of net assets or any dividends which may
      be declared.                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The excess of proceeds received for shares of common
      stock over their par value of $0.001, less share issue costs, is credited
      to additional paid-in capital.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

---

13

|MABCURE INC.                     
|---------------------------------
|(A Development Stage Company)    
|NOTES TO THE FINANCIAL STATEMENTS
|(Stated in US Dollars)           
|March 31, 2008                   
|                                 

|3. | DEFERRED TAX ASSETS                                                                                  
|-- | -----------------------------------------------------------------------------------------------------
|   |                                                                                                      
|   | The following table summarizes the significant components
      of the Companys deferred tax assets:

| |                                                  |   | March 31, |   |   | December 31, |  
| | ------------------------------------------------ | - | --------- | - | - | ------------ | -
| |                                                  |   | 2008      |   |   | 2007         |  
| |                                                  |   |           |   |   |              |  
| | Deferred Tax Assets                              |   |           |   |   |              |  
| | Non-capital losses
      carryforward            | $ | 32,300    |   | $ | 18,500       |  
| | Valuation allowance for deferred tax
      asset |   | (32,300   | ) |   | (18,500      | )
| |                                                  |   |           |   |   |              |  
| | Income tax provision                             | $ | -         |   | $ | -            |  

|   | At March 31, 2008, the Company has accumulated
      non-capital losses totaling $192,593, which are available to reduce
      taxable income in future taxation years. These losses expire beginning
      2026. The potential benefit of those losses, if any, has not been recorded
      in the financial statements.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                          
|4. | DONATED CAPITAL                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                          
|   | The Company records transactions of commercial substance
      with related parties at fair value as determined with management. The
      Company recognized donated services to directors of the Company for
      management fees, valued at $500 per month, as
follows:                                              

May 8, 2006(Date of Inception) to March
      31, 2008Management fees
    $
    11,500


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14

Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations.

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These statements
relate to future events or our future financial performance. In some cases, you
can identify forward-looking statements by terminology such as may, should,
expects, plans, anticipates, believes, estimates, predicts,
potential or continue or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors, including the risks in the section
entitled Risk Factors, that may cause our or our industrys actual results,
levels of activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements expressed or
implied by these forward-looking statements.

Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. Except as required by
applicable law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these
statements to actual results.

Our financial statements are stated in United States Dollars
(US$) and are prepared in accordance with United States Generally Accepted
Accounting Principles.

In this quarterly report, unless otherwise specified, all
references to common shares refer to the common shares in our capital
stock.

As used in this quarterly report, the terms we, us, our,
and company mean MabCure Inc., unless otherwise indicated.

RESULTS OF OPERATIONS

For the three month period ended March 31, 2008 and March
31, 2007

We did not generate any revenues for the three month periods
ended March 31, 2008 and 2007. Our operating activities during these periods
consisted primarily of developing our business plan and developing our pesticide
removal detergent.

General and administrative expenses were $83,328 for the three
month period ended March 31, 2008 compared to $50,500 for the three month period
ended March 31, 2007. The increase in general and administrative expenses was
due to the increase in consulting fees and professional fees. General and
administrative expenses generally include management fees, consulting fees,
filing fees and professional fees.

Professional fees were $53,241 for the three month period ended
March 31, 2008 compared to $49,000 for the three month period ended March 31,
2007. The increase in professional fees was due to an increase in overall
activity. Consulting fees were $26,220 for the three month period ended March
31, 2008 compared to $Nil for the three month period ended March 31, 2007. The
increase in consulting fees was due to increase activity with respect to the
companys reverse merger.. Filing fees were $1,367 for the three month period
ended March 31, 2008 compared to $Nil for the three month period ended March 31,
2007. The increase in filing fees was due to additional activity related to the
Companys reverse merger.

Our net loss for the three month period ended March 31, 2008
was $82,328 or $0.00 per share compared to $50,500 or $0.02 for the three month
period ended March 31, 2007. The weighted average number of shares outstanding
was 27,000,000 at March 31, 2008 compared to 3,868,530 at March 31, 2007.

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15

Our primary objective in the next twelve months will be to
complete development of our proposed pesticide removal detergent, establish our
marketing plan, commence an advertising campaign for our proposed pesticide
removal detergent, and employ our first sales force for direct sales of our
proposed product in China.

Since our incorporation on May 8, 2006, we have taken active
steps to implement our business plan. In August 2003, our chief technology
officer and one of our directors, Pua Soo Siang, began the development of our
pesticide removal detergent. Mr. Siang has completed several experiments of key
components that will form the basis of our proposed pesticide removal
detergent.

We anticipate that, in time, the primary source of revenue for
our business model will be the sale of our proposed pesticide removal detergent.
We also anticipate that we may receive compensation for professional services
such as customized design and development of the pesticide removal detergent.
Currently, we do not have any customers, as our pesticide removal detergent is
not yet fully developed.

LIQUIDITY AND CAPITAL RESOURCES

As at March 31, 2008

As at March 31, 2008, our total assets were $Nil and our
current liabilities were $130,093, resulting in working capital deficit of
$130,093.

As at March 31, 2008, our total liabilities were $130,093
compared to current liabilities of $49,265 as at December 31, 2007, all
consisting of current liabilities. The increase in total liabilities at March
31, 2008 compared to the period ended December 31, 2007 was due primarily to
accrued invoices related to the Companys reverse merger.

Stockholders deficit increased from $49,265 at December 31,
2007 to $130,093 at March 31, 2008.

For the three month period ended March 31, 2008, net cash used
in operating activities was $42,415 compared to net cash used in operating
activities of $45,000 for the three month period ended March 31, 2007. Net cash
used in operating activities for the three month period ended March 31, 2008 was
comprised of a net loss of $82,328 (2007: $50,500), donated services of $1,500
(2007: $1,500), prepaid expenses of $Nil (2007: $4,000) and accounts payable and
accrued liabilities $38,413 (2007: $Nil).

Net cash flows from financing activities for the three month
period ended March 31, 2008 was $42,415 compared to net cash flows from
financing activities of $nil for the three month period ended March 31, 2007.
The increase in net cash from financing activities for the period ended March
31, 2008 was primarily the result of an increase in loans payable.

Cash Requirements

We anticipate that our total operating expenses will be
approximately $49,000 for the next twelve months. This includes our estimated
expenses as follows:

- $5,000 for the development of our demonstrable pesticide removal
  detergent;
- $5,000 to complete the development of our commercial version of our
  pesticide removal detergent
- $10,000 to commence our advertising and marketing campaign;
- $4,000 for our audit fees over the next twelve months;
- $10,000 for our legal and organization fees over the next twelve months;
  and
- $15,000 for other operating expenses not included above.

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16

Going Concern

The audited financial statements accompanying our annual report
on Form 10-KSB for the year ended December 31, 2007 have been prepared on a
going concern basis, which implies that our company will continue to realize its
assets and discharge its liabilities and commitments in the normal course of
business. Our company has not generated revenues since inception and has never
paid any dividends and is unlikely to pay dividends or generate earnings in the
immediate or foreseeable future. The continuation of our company as a going
concern is dependent upon the continued financial support from our shareholders,
the ability of our company to obtain necessary equity financing to achieve our
operating objectives, and the attainment of profitable operations. As of March
31, 2008, we had cash of $Nil and we estimate that we will require approximately
$49,000 to fund our business operations over the next twelve months.
Accordingly, we do not have sufficient funds for planned operations and we will
be required to raise additional funds for operations after that date.

These circumstances raise substantial doubt about our ability
to continue as a going concern, as described in the explanatory paragraph to our
independent auditors report on the December 31, 2007 and 2006 financial
statements. The financial statements do not include any adjustments that might
result from the outcome of that uncertainty.

The continuation of our business is dependent upon us raising
additional financial support. The issuance of additional equity securities by us
could result in a significant dilution in the equity interests of our current
stockholders. Obtaining commercial loans, assuming those loans would be
available, will increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further
funds required for our continued operations. We are pursuing various financing
alternatives to meet our immediate and long-term financial requirements. There
can be no assurance that additional financing will be available to us when
needed or, if available, that it can be obtained on commercially reasonable
terms. If we are not able to obtain the additional financing on a timely basis,
we will be forced to scale down or perhaps even cease the operation of our
business.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
investors.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements have, in managements opinion, been
properly prepared within the framework of the significant accounting policies
summarized below:

Organizational and Start-up Costs

Costs of start-up activities, including organizational costs,
are expensed as incurred.

Development Stage Company

Our company is in the development stage. Since our formation,
we have not yet realized any revenues from our planned operations. We are in the
business of developing biotech products in China.

Financial Instruments

The carrying value of our companys financial instruments,
consisting of cash, prepaid expenses and accounts payable and accrued
liabilities approximate their fair value due to the short-term maturity of such
instruments. Unless otherwise noted, it is managements opinion that our company
is not exposed to significant interest, currency or credit risks arising from
these financial statements.

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17

Income Taxes

We have adopted SFAS No. 109  Accounting for Income Taxes.
SFAS No. 109, requires the use of the asset and liability method of accounting
of income taxes. Under the asset and liability method of SFAS No. 109, deferred
tax assets and liabilities are recognized for the future tax consequences
attributable to temporary differences between the financial statements carrying
amounts of existing assets and liabilities and their respective tax bases.

Deferred tax assets and liabilities are measured using enacted
tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled.

Basic and Diluted Loss per Share

In accordance with SFAS No. 128  Earnings Per Share, the
basic loss per common share is computed by dividing net loss available to common
stockholders by the weighted average number of common shares outstanding.
Diluted loss per common share is computed similar to basic loss per common share
except that the denominator is increased to include the number of additional
common shares that would have been outstanding if the potential common shares
had been issued and if the additional common shares were dilutive. At March 31,
2008, our company had no stock equivalents that were anti-dilutive and excluded
in the loss per share computation.

Stock-based Compensation

In December 2004, the FASB issued SFAS No. 123R, Share-Based
Payment, which replaced SFAS No. 123, Accounting for Stock-Based Compensation
and superseded APB Opinion No. 25, Accounting for Stock Issued to Employees.
In January 2005, the Securities and Exchange Commission (SEC) issued Staff
Accounting Bulletin (SAB) No. 107, Share-Based Payment, which provides
supplemental implementation guidance for SFAS

No. 123R. SFAS No. 123R requires all share-based payments to
employees, including grants of employee stock options, to be recognized in the
financial statements based on the grant date fair value of the award. SFAS No.
123R was to be effective for interim or annual reporting periods beginning on or
after June 15, 2005, but in April 2005 the SEC issued a rule that will permit
most registrants to implement SFAS No. 123R at the beginning of their next
fiscal year, instead of the next reporting period as required by SFAS No. 123R.
The pro-forma disclosures previously permitted under SFAS No. 123 no longer will
be an alternative to financial statement recognition. Under SFAS No. 123R, our
company must determine the appropriate fair value model to be used for valuing
share-based payments, the amortization method for compensation cost and the
transition method to be used at date of adoption. The transition provisions
include prospective and retroactive adoption methods. Under the retroactive
method, prior periods may be restated either as of the beginning of the year of
adoption or for all periods presented. The prospective method requires that
compensation expense be recorded for all unvested stock options and restricted
stock at the beginning of the first quarter of adoption of SFAS No. 123R, while
the retroactive methods would record compensation expense for all unvested stock
options and restricted stock beginning with the first period restated. Our
company has adopted the requirements of SFAS No. 123R which did not have any
impact on the financial statements as, to date, we have not granted any stock
options or any other share based payments..

Our company accounts for equity instruments issued in exchange
for the receipt of goods or services from other than employees in accordance
with SFAS No. 123 and the conclusions reached by the Emerging Issues Task Force
in Issue No. 96-18, Accounting for Equity Instruments That Are Issued to Other
Than Employees for Acquiring or in Conjunction with Selling Goods or Services
(EITF 96-18). Costs are measured at the estimated fair market value of the
consideration received or the estimated fair value of the equity instruments
issued, whichever is more reliably measurable. The value of equity instruments
issued for consideration other than employee services is determined on the
earlier of a performance commitment or completion of performance by the provider
of goods or services as defined by EITF 96-18.

Our company has not adopted a stock option plan and has not
granted any stock options. Accordingly, no stock-based compensation has been
recorded to date.

---

18

RECENT ACCOUNTING PRONOUNCEMENTS

In February 2006, the FASB issued SFAS No. 155, Accounting
for Certain Hybrid Financial Instruments-an amendment of FASB Statements No. 133
and 140, to simplify and make more consistent the accounting for certain
financial instruments. SFAS No. 155 amends SFAS No. 133, Accounting for
Derivative Instruments and Hedging Activities, to permit fair value
remeasurement for any hybrid financial instrument with an embedded derivative
that otherwise would require bifurcation, provided that the whole instrument is
accounted for on a fair value basis. SFAS No. 155 amends SFAS No. 140,
Accounting for the Impairment or Disposal of Long-Lived Assets, to allow
a qualifying special-purpose entity to hold a derivative financial instrument
that pertains to a beneficial interest other than another derivative financial
instrument. SFAS No. 155 applies to all financial instruments acquired or issued
after the beginning of an entitys first fiscal year that begins after September
15, 2006, with earlier application allowed. This standard is not expected to
have a significant effect on our companys future reported financial position or
results of operations.

In March 2006, the FASB issued SFAS No. 156, Accounting for
Servicing of Financial Assets, an amendment of FASB Statement No. 140,
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities. This statement requires all separately recognized servicing
assets and servicing liabilities be initially measured at fair value, if
practicable, and permits for subsequent measurement using either fair value
measurement with changes in fair value reflected in earnings or the amortization
and impairment requirements of Statement No. 140. The subsequent measurement of
separately recognized servicing assets and servicing liabilities at fair value
eliminates the necessity for entities that manage the risks inherent in
servicing assets and servicing liabilities with derivatives to qualify for hedge
accounting treatment and eliminates the characterization of declines in fair
value as impairments or direct write-downs. SFAS No. 156 is effective for an
entitys first fiscal year beginning after September 15, 2006. This adoption of
this statement is not expected to have a significant effect on our companys
future reported financial position or results of operations.

RISK FACTORS

An investment in our common shares involves a number of very
significant risks. You should carefully consider the following risks and
uncertainties in addition to other information herein when evaluating our
business. Our business, operating results and financial condition could be
seriously harmed and you could lose all or part of your investment in our common
shares due to any of the following risks.

Risks Associated with our Business

Our auditors have issued a going concern opinion because we
may not be able to achieve our objectives and we may have to suspend or cease
our proposed operations as a development company entirely.

Our auditors have issued a going concern opinion. This means
that there is doubt that we can continue with our proposed business operations
as a development company for the next twelve months. As at March 31, 2008, we
had cash in the amount of $nil and incurred $82,328 in expenses. We do not
believe that this amount will be enough to support our operations until March
31, 2009.

In addition, in the course of developing our pesticide removal
detergent over the next twelve months, we may:

- incur unexpected costs in completing the development of our pesticide
  removal detergent or encounter unexpected technical or other difficulties;
- incur delays and additional expenses as a result of product failure;
- be unable to create a substantial market for our pesticide removal
  detergent; or
- incur significant and unanticipated expenses.

The occurrence of any of the aforementioned events could cause
us to run out of money so that we are unable to pay our ongoing expenses in
respect of the development and marketing of our pesticide removal detergent. If
we do not complete the development of our pesticide removal detergent by
December 31, 2008 and if we are not able to raise

---

19

additional capital when needed to complete the development of
our pesticide removal detergent, we may have to suspend or cease our operations
because we will not be able to pay our ongoing expenses in respect of the
development and marketing of our pesticide removal detergent.

We have no operating history and have maintained losses
since inception, which we expect to continue into the future.

Since inception, we have not realized any revenues. We have no
operating history upon which an evaluation of our future success or failure can
be made. We incurred a net loss of $192,593 from inception to March 31, 2008.
Our ability to achieve and maintain profitability and positive cash flow is
dependent upon:

- our ability to develop our pesticide removal detergent;
- our ability to market our pesticide removal detergent;
- our ability to generate ongoing revenues;
- our ability to reduce development and marketing costs; and
- our ability to compete with other established pesticide removal detergent.

We expect to incur operating losses in future periods. This
will happen because there are substantial costs and expenses associated with the
research, development and marketing of our product. We may fail to generate
revenues in the future. Failure to generate revenues will cause us to go out of
business because we will not have the money to pay our ongoing expenses.

If we are unable to obtain the necessary financing to
implement our business plan we will not have the money to pay our ongoing
expenses and we may go out of business.

Our ability to successfully develop our pesticide removal
detergent and to eventually produce and sell our product to generate operating
revenues depends on our ability to obtain the necessary financing to implement
our business plan. Given that we have no operating history, no revenues and only
losses to date, we may not be able to achieve this goal, and if this occurs, we
will not be able to pay the development and marketing costs in respect of our
pesticide removal detergent and we may go out of business.

We may need to issue additional equity securities in the future
to raise the necessary funds. The issuance of additional equity securities by us
would result in a significant dilution in the equity interests of our current
stockholders. The resale of our common shares by our existing stockholders may
result in significant downward pressure on the price of our common shares and
cause negative impact on our ability to sell additional equity securities.
Obtaining loans will increase our liabilities and future cash commitments. If we
are unable to obtain financing in the amounts required we will not have the
money that we require for the development and marketing of our pesticide removal
detergent and we may go out of business.

If we are unable to complete the development of our
pesticide removal detergent and sell our product we will not be able to generate
revenues and you will lose your investment.

We have not completed development of our pesticide removal
detergent and we have no contracts for the sale of our pesticide removal
detergent. The success of our proposed business will depend on the completion of
our pesticide removal detergent and the acceptance of our product by businesses
and the general public. Achieving such acceptance will require significant
marketing investment. The pesticide removal detergent we develop may not be
accepted by our customers at sufficient levels to support our operations and
build our business. If the pesticide removal detergent that we develop is not
accepted at sufficient levels, our proposed business will fail.

Our product may contain defects that will make it more
difficult for us to establish and maintain customers.

We have not yet completed the initial development of our
product and it has not been tested by users. Our product may contain undetected
design faults and errors that are discovered only after it has been used by
customers. Any

---

20

such default or error could cause delays in delivering our
product or require design modifications. These could adversely affect our
competitive position and cause us to lose potential customers or opportunities.
Since our product is intended to be utilized to develop a market for pesticide
removal detergents, the effect of any such delays will likely have a detrimental
impact on us. In addition, given that pesticide removal detergent has yet to
gain widespread acceptance in the market, any delays would likely have a more
detrimental impact on our business than if we were a more established company.

If product liability lawsuits are successfully brought
against us, we will incur substantial liabilities and may be required to limit
commercialization of our products.

We face an inherent business risk of exposure to product
liability claims in the event that an individual is harmed because of the
failure of our products to function properly. If we cannot successfully defend
ourselves against the product liability claim, we will incur substantial
liabilities. Regardless of merit or eventual outcome, liability claims may
result in:

- decreased demand for our products;
- injury to our reputation;
- costs of related litigation;
- substantial monetary awards to plaintiffs;
- loss of revenues; and
- the inability to commercialize our technologies.

We currently carry no product liability insurance. Although we
expect to obtain product liability insurance coverage in connection with the
commercialization of our products, such insurance may not be available on
commercially reasonable terms or at all, or such insurance, even if obtained,
may not adequately cover any product liability claim. A product liability or
other claim with respect to uninsured liabilities or in excess of insured
liabilities could have a material adverse effect on our business and prospects.

Currency translation and transaction risk may negatively
affect our net sales, cost of sales and gross margins, and could result in
exchange losses.

Although our reporting currency is the United States dollar, we
intend to conduct our business and incur costs in the local currency of the
other countries in which we intend to operate. Changes in exchange rates between
foreign currencies and the United States dollar could affect our net sales and
cost of sales figures, and could result in exchange losses. In addition, we
incur currency transaction risk whenever we enter into either a purchase or a
sales transaction using a dollar currency other than the United States.

Our pesticide removal detergent is not protected by any
trademarks, patents and/or other intellectual property registrations. If we are
unable to protect our intellectual property rights, our proposed business will
fail.

We have not applied for any trademark, patent or other
intellectual property registration with any governmental agency for our name or
for our product. At present we have non-disclosure agreements with our employees
to protect our product. Despite our precautions taken to protect our pesticide
removal detergent, unauthorized parties may attempt to reverse engineer, copy or
obtain and use our pesticide removal detergent. If they are successful we could
lose our product or they could develop similar products, which could create more
competition for us and even cause our proposed business operations to fail.

We depend to a significant extent on certain key personnel,
the loss of any of whom may materially and adversely affect our company.

Currently, we have only three employees and they are also our
officers and directors. Our performance depends to a significant extent on the
continued services and technical expertise of Mr. Pua Soo Siang, our director
and chief technology officer. There is intense competition for skilled
personnel. There can be no assurance that we will be

---

21

able to attract and retain qualified personnel on acceptable
terms. The loss of Mr. Siangs services could prevent us from completing the
development of our pesticide removal detergent. In the event of the loss of
services of such personnel, no assurance can be given that we will be able to
obtain the services of adequate replacement personnel. We do not maintain key
person insurance on the lives of any of our officers or employees.

We have no sales and marketing experience.

We have not yet begun marketing our product and thus have yet
to make any commercial sales of our product. Our employees have no experience in
marketing such a product and no distribution system has been developed. While we
have plans for marketing and sales, there can be no assurance that such efforts
will be successful or that we will be able to attract and retain qualified
individuals with marketing and sales expertise. Our future success will depend,
among other factors, upon whether our product can be sold at a profitable price
and the extent to which consumers acquire, adopt and continue to use it. There
can be no assurance that our product will gain wide acceptance in its targeted
markets or that we will be able to effectively market our product.

If our estimates related to expenditures are erroneous, our
business will fail and you will lose your entire investment.

Our success is dependent in part upon the accuracy of our
managements estimates of expenditures. If such estimates are erroneous or
inaccurate, we may not be able to carry out our business plan, which could, in a
worst-case scenario, result in the failure of our business and you losing your
entire investment.

Our officers and directors are engaged in other activities
and may not devote sufficient time to our affairs, which may affect our ability
to conduct operations and generate revenues.

The persons serving as our officers and directors have existing
responsibilities and may have additional responsibilities to provide management
and services to other entities. Mr. Yapp Moi Lee, our president (principal
executive officer) and a director, is also the senior manager of Linde
Enterprise Co., which is headquartered in Malaysia with offices in China. We
expect Mr. Lee to spend approximately 10 to 20 hours a week on the business of
our company.

Mr. Pua Soo Siang, our chief technology officer and a director,
is a senior engineer at Vepact Chemical Ltd., which is also headquartered in
Malaysia, with offices throughout Asia. We expect Mr. Siang to spend
approximately 10 hours or more a week on the business of our company.

Mr. Martin Bajic, our chief financial officer (principal
financial officer) and our treasurer (principal accounting officer) provides
independent accounting and consulting services to public and private companies
to assist with financial statements and public reporting disclosure
requirements.

As a result, demands for the time and attention from our
directors and officers from our company and other entities may conflict from
time to time. Because we rely primarily on our directors and officers to
maintain our business contacts and to promote our pesticide removal detergent,
their limited devotion of time and attention to our business may hurt the
operation of our business.

Risks Associated with our Common Shares

Because we do not intend to pay any dividends on our common
shares, investors seeking dividend income or liquidity should not purchase our
common shares.

We have not declared or paid any dividends on our common shares
since inception, and we do not anticipate paying any such dividends for the
foreseeable future. Investors seeking dividend income or liquidity should not
invest in our common shares.

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22

Because we can issue additional shares of common shares,
purchasers of our common shares may incur immediate dilution and may experience
further dilution.

We are authorized to issue up to 1,500,000,000 common shares,
of which 51,000,000 common shares are issued and outstanding. Our board of
directors has the authority to cause the issuance of additional common shares
and to determine the rights, preferences and privilege of such common shares,
without consent of any of our stockholders. Consequently, the stockholders may
experience more dilution in their ownership of our common shares in the future.

A decline in the price of our common share could affect our
ability to raise further working capital, may adversely impact our ability to
continue operations and we may go out of business.

A prolonged decline in the price of our common shares could
result in a reduction in the liquidity of our common shares and a reduction in
our ability to raise capital. Because we may attempt to acquire a significant
portion of the funds we need in order to conduct our planned operations through
the sale of equity securities, a decline in the price of our common shares could
be detrimental to our liquidity and our operations; the decline may cause
investors to not choose to invest in our common shares. If we are unable to
raise the funds we require for all of our planned operations, we may be forced
to reallocate funds from other planned uses and may suffer a significant
negative effect on our business plan and operations, including our ability to
develop new products and continue our current operations. As a result, our
business may suffer and not be successful and we may go out of business. Also,
we might not be able to meet our financial obligations if we cannot raise enough
funds through the sale of our common shares and we may be forced to go out of
business.

Trading of our common shares may be restricted by the SECs
penny stock regulations, which may limit a stockholders ability to buy and sell
our common shares.

The SEC has adopted regulations which generally define penny
stock to be any equity security that has a market price (as defined) less than
$5.00 per share or an exercise price of less than $5.00 per share, subject to
certain exceptions. Our securities are covered by the penny stock rules, which
impose additional sales practice requirements on broker-dealers who sell to
persons other than established customers and accredited investors. The term
accredited investor refers generally to institutions with assets in excess of
$5,000,000, or individuals with a net worth in excess of $1,000,000 or annual
income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock
rules require a broker-dealer, prior to a transaction in a penny stock not
otherwise exempt from the rules, to deliver a standardized risk disclosure
document in a form prepared by the SEC, which provides information about penny
stocks and the nature and level of risks in the penny stock market. The
broker-dealer also must provide the customer with current bid and offer
quotations for the penny stock, the compensation of the broker-dealer and its
salesperson in the transaction and monthly account statements showing the market
value of each penny stock held in the customers account. The bid and offer
quotations, and the broker-dealer and salesperson compensation information, must
be given to the customer orally or in writing prior to effecting the transaction
and must be given to the customer in writing before or with the customers
confirmation. In addition, the penny stock rules require that prior to a
transaction in a penny stock not otherwise exempt from these rules, the
broker-dealer must make a special written determination that the penny stock is
a suitable investment for the purchaser and receive the purchasers written
agreement to the transaction. These disclosure requirements may have the effect
of reducing the level of trading activity in the secondary market for the stock
that is subject to these penny stock rules. Consequently, these penny stock
rules may affect the ability of broker-dealers to trade our securities. We
believe that the penny stock rules discourage investor interest in and limit the
marketability of our common shares.

FINRA sales practice requirements may also limit a
stockholders ability to buy and sell our stock.

In addition to the penny stock rules described above, the
Financial Industry Regulatory Authority (the FINRA), formerly the
National Association of Securities Dealers, has adopted rules that require that
in recommending an investment to a customer, a broker-dealer must have
reasonable grounds for believing that the investment is suitable for that
customer. Prior to recommending speculative low priced securities to their
non-institutional customers, broker-dealers must make reasonable efforts to
obtain information about the customers financial status, tax status,

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23

investment objectives and other information. Under
interpretations of these rules, the FINRA believes that there is a high
probability that speculative low priced securities will not be suitable for at
least some customers. The FINRA requirements make it more difficult for
broker-dealers to recommend that their customers buy our common shares, which
may limit your ability to buy and sell our Common Shares and have an adverse
effect on the market for our common shares.

Other Risks

Because all of our officers and directors are located in
non-U.S. jurisdictions, you may have no effective recourse against the
management for misconduct and may not be able to enforce judgment and civil
liabilities against our officers and directors.

All of our directors and officers are nationals and/or
residents of countries other than the United States, and all or a substantial
portion of such persons assets are located outside the United States. As a
result, it may be difficult for investors to enforce within the United States
any judgments obtained against our officers or directors, including judgments
predicated upon the civil liability provisions of the securities laws of the
United States or any state thereof.

Item 3. Quantitative and Qualitative Disclosures About
Market Risk.

Not Applicable.

Item 4T. Controls and Procedures.

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commissions rules and forms, and that such information
is accumulated and communicated to our management, including our president (who
is acting as our principal executive officer) and our secretary and treasurer
(who is acting as our principal financial officer and principal accounting
officer) to allow for timely decisions regarding required disclosure. In
designing and evaluating our disclosure controls and procedures, our management
recognizes that any controls and procedures, no matter how well designed and
operated, can provide only reasonable assurance of achieving the desired control
objectives, and our management is required to apply its judgment in evaluating
the cost-benefit relationship of possible controls and procedures.

As of March 31, 2008, the end of the three month period year
covered by this report, we carried out an evaluation, under the supervision and
with the participation of our management, including our president (who is acting
as our principal executive officer) and our secretary and treasurer (who is
acting as our principal financial officer and principal accounting officer), of
the effectiveness of the design and operation of our disclosure controls and
procedures. Based on the foregoing, our president (who is acting as our
principal executive officer) and our secretary and treasurer (who is acting as
our principal financial officer and principal accounting officer) concluded that
our disclosure controls and procedures were effective as of the end of the
period covered by this quarterly report.

There have been no significant changes in our internal controls
over financial reporting that occurred during the quarter ended March 31, 2008
that have materially affected, or are reasonably likely to materially affect,
our internal controls over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, active or pending legal proceedings against
  our company, nor are we involved as a plaintiff in any material proceeding or
  pending litigation. There are no proceedings in which any of our directors,
  officers or affiliates, or any registered or beneficial shareholder, is an adverse
  party or has a material interest adverse to our interest.

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24

Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds.

Except as reported by us on a Current Report on Form 8-K, we
did not sell any equity securities which were not registered under the
Securities Act during the three month period ended March 31, 2008.

Item 3. Defaults Upon Senior Securities.

None.

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

None.

Item 5. Other Information.

None.

Item 6. Exhibits

|Exhibit No. | Description                                                                                                                                    
|----------- | -----------------------------------------------------------------------------------------------------------------------------------------------
|            |                                                                                                                                                
|3.1         | Articles of Incorporation (Incorporated
      by reference from our Registration Statement on Form SB-2 filed on March
      8, 2007)          
|            |                                                                                                                                                
|3.2         | Bylaws (Incorporated by reference
      from our Registration Statement on Form SB-2 filed on March 8, 2007)                                   
|            |                                                                                                                                                
|3.3         | Certificate of Change (Incorporated
      by reference from our Quarterly Report on Form 10-QSB filed on November
      20, 2007)              
|            |                                                                                                                                                
|3.4         | Certificate of Correction (Incorporated
      by reference from our Quarterly Report on Form 10-QSB/A filed on November
      23, 2007)        
|            |                                                                                                                                                
|3.5         | Articles of Merger (Incorporated
      by reference from our Current Report on Form 8-K filed on January 24, 2008)                             
|            |                                                                                                                                                
|4.1         | Specimen ordinary share certificate
      (Incorporated by reference from our Registration Statement on Form SB-2
      filed on March 8, 2007)
|            |                                                                                                                                                
|31.1*       | Section
      302 Certification of the Sarbanes-Oxley Act of 2002 of Yapp Moi Lee                                                              
|            |                                                                                                                                                
|31.2*       | Section
      302 Certification of the Sarbanes-Oxley Act of 2002 of Martin Bajic                                                              
|            |                                                                                                                                                
|32.1*       | Section
      906 Certification of the Sarbanes-Oxley Act of 2002 of Yapp Moi Lee                                                              
|            |                                                                                                                                                
|32.2*       | Section
      906 Certification of the Sarbanes-Oxley Act of 2002 of Martin Bajic                                                              

* Filed herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

Dated: May 20, 2008

MABCURE INC.

/s/ Yapp Moi LeeYapp Moi LeePresident, Chief
Executive Officer and a member of the Board of Directors (who also performs
as the Principal Executive Officer) 
  May 20, 2008

/s/ Martin Bajic Martin BajicChief Financial
Officer and Treasurer(who also performs as Principal Financial and Executive
Officer and Principal Accounting Officer) 
  May 20, 2008

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