----

----

|                                                                 |                                                                                               |
|----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| þ                                                               | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF 1934  |
|                                                                 |                                                                                               |
| For      the quarterly period ended: January 31,      2010           |
| Or                                                                   |
| o                                                                    | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF 1934 |
|                                                                 |                                                                                               |
| For      the transition period from: _____________ to  _____________ |

|   | EVOLUTION RESOURCES,      INC.                              |   |
|--------|-------------------------------------------------------------|--------|
|   | (Exact name of      registrant as specified in its charter) |   |

| Nevada                                                                  |   | 333-140306                  |   | 20-2356853                                 |
|-------------------------------------------------------------------------|--------|-----------------------------|--------|--------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) |   | Commissionfile      number) |   | (IRS      EmployerIdentification      No.) |

| Large Accelerated      Filer   o | Accelerated      Filer   o | Non-Accelerated      Filer   o | Smaller Reporting      Company   þ |
|-------------------------------------------------|-------------------------------------------|-----------------------------------------------|--------------------------------------------------------|

----

----

----

|                             |                                                                                                                                                                                               | Page      No.(s) |
|----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
| Item      1.                     | Financial      Statements                                                                                                                                                                          |             |
|                             |                                                                                                                                                                                               |             |
|                             | Consolidated      Balance Sheets as of January 31, 2010 (Unaudited) and October 31,      2009                                                                                                      | 1                |
|                             |                                                                                                                                                                                               |             |
|                             | Consolidated      Statements of Operations For the Three Months Ended January 31, 2010 and      For the Period from April 9, 2009 (Inception) through January 31, 2010      (Unaudited)            | 2                |
|                             |                                                                                                                                                                                               |             |
|                             | Consolidated      Statement of Stockholders’ Equity For the Period from April 9, 2009      (Inception) through January 31, 2010 (Unaudited)                                                  | 3                |
|                             |                                                                                                                                                                                               |             |
|                             | Consolidated      Statements of Cash Flows For the Three Months Ended January 31, 2010 and      For the Period from April 9, 2009 (Inception) through January 31,      2010  (Unaudited) | 4                |
|                             |                                                                                                                                                                                               |             |
|                             | Notes      to the Consolidated Financial Statements (Unaudited)                                                                                                                                    | 5                |
|                             |                                                                                                                                                                                               |             |
| Item      2.                     | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                              | 16               |
|                             |                                                                                                                                                                                               |             |
| Item      3.                     | Quantitative      and Qualitative Disclosures About Market Risk                                                                                                                                    | 22               |
|                             |                                                                                                                                                                                               |             |
| Item      4.                     | Controls      and Procedures                                                                                                                                                                       |             |
|                             |                                                                                                                                                                                               | 22               |
| PART      II - OTHER INFORMATION |                                                                                                                                                                                               |
|                             |                                                                                                                                                                                               |             |
| Item      1.                     | Legal      Proceedings                                                                                                                                                                             | 22               |
|                             |                                                                                                                                                                                               |             |
| Item      2.                     | Unregistered      Sales of Equity Securities and Use of Proceeds                                                                                                                                   | 23               |
|                             |                                                                                                                                                                                               |             |
| Item      3.                     | Defaults      Upon Senior Securities                                                                                                                                                               | 23               |
|                             |                                                                                                                                                                                               |             |
| Item      4.                     | Submission      of Matters to a Vote of Security Holders                                                                                                                                           | 23               |
|                             |                                                                                                                                                                                               |             |
| Item      5.                     | Other      Information                                                                                                                                                                             | 23               |
|                             |                                                                                                                                                                                               |             |
| Item      6.                     | Exhibits                                                                                                                                                                                           | 23               |
|                             |                                                                                                                                                                                               |             |
| SIGNATURES                       | 24                                                                                                                                                                                                 |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | January      31, 2010 |                   | October      31, 2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|------------------------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  | (Unaudited)            |                  |   |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                  |                   |                  |   |   |
| Current      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  |                   |                  |   |   |
|    Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                     | 4,913                  |                  | $      | 2,221 |   |
|    Prepaid      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                  | 35,917                 |                  |   | 56,781 |   |
|    Other      receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                  | 43,417                 |                  |   | - |   |
|    Capitalized      issuance expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                  | 15,584                 |                  |   | 57,667 |   |
| Total      current      assets                                                                                                                                                                                                                        |                  | 99,831                 |                  |   | 116,669 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  |                   |                  |   |   |   |
| Property      and equipment, net of accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                  |   10,445,970 |                  |   | 10,538,970 |   |
| Equipment,      net held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                  | 3,090,000              |                  |   | 5,150,000 |   |
| License      agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                  | -                      |                  |   | 1,500,000 |   |
| Total      assets                                                                                                                                                                                        | $                     | 13,635,801             |                  | $      | 17,305,639 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  |                   |                  |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                  |                   |                  |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  |                   |                  |   |   |   |
|   Accounts      payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $                     | 1,241,167              |                  | $      | 865,067 |   |
|   Related      party payables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                  | 624,626                |                  |   | 214,085 |   |
|   Accrued      interest      payable                                                                                                                                                                                         |                  | 317,648                |                  |   | 282,502 |   |
|   Common      stock in dispute (500,000 shares held by Company)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  | 2,000,000              |                  |   | - |   |
|   Current      portion of      deferred liability                                                                                                                                                                       |                  | -                      |                  |   | 60,000 |   |
| Total      current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  | 4,183,441              |                  |   | 1,421,654 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  |                   |                  |   |   |   |
| Deferred      liability, net of current      portion                                                                                                                                                                              |                  | -                      |                  |   | 1,440,000 |   |
| Notes      payable, net of discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                  | 1,374,000              |                  |   | 1,320,250 |   |
| Derivative      liability                                                                                                                                                                                |                  | 4,827,503              |                  |   | 4,392,823 |   |
| Deferred      income tax liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                  | 1,792,934              |                  |   | 1,792,934 |   |
|             Total      liabilities                                                                                                           |                  | 12,177,878             |                  |   | 10,367,661 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  |                   |                  |   |   |   |
| Stockholders’      equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  |                   |                  |   |   |   |
| Convertible      preferred stock, Series A, at $0.001 par value; 1,000,000 authorized,      liquidation preference of $100 per share; 22,500 shares authorized; 22,500      shares issued and outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  | 90,467                 |                  |   | 53,973 |   |
| Common      stock, $0.001 par value, 74,000,000 shares  authorized,      17,581,077 shares issued and 17,156,077 and 17,581,077 outstanding at      January 31, 2010 and October 31, 2009, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                  | 17,156                 |                  |   | 17,581 |   |
| Additional      paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                  | 3,636,969              |                  |   | 3,386,023 |   |
| Earnings      (deficit) accumulated during the development stage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  | (2,286,669)            |                  |   | 3,480,401 |   |
| Total      stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                  | 1,457,923              |                  |   | 6,937,978 |   |
| Total      liabilities and      stockholders’  equity                                                                                                                                    | $                     | 13,635,801             |                  | $      | 17,305,639 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Three      months ended January 31, 2010 |       |   | For      the period from April 9, 2009 (Inception) through January 31,      2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|------------|--------|----------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |
| Revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                        | -          |   |                                                                             | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Operating expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                     |       |   |                                                                             |   |   |   |
|  Professional      fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                     | 391,024    |   |                                                                             |   | 728,778 |   |
|      Compensation      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                     | 2,250,521  |   |                                                                             |   | 2,250,521 |   |
|      Management      services                                                                                                               |   |                                     | 125,000    |   |                                                                             |   | 215,987 |   |
|      Depreciation      and      amortization                                                                                                |   |                                     | 146,750    |   |                                                                             |   | 401,000 |   |
|      General and      administrative                                                                                                                                                |   |                                     | 274,723    |   |                                                                             |   | 485,351 |   |
| Total      operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                     | 3,188,018  |   |                                                                             |   | 4,081,637 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Loss      from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                     | (3,188,018 | )      |                                                                             |   | (4,081,637 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Other      expense (income):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                     |       |   |                                                                             |   |   |   |
| Interest      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                     | 47,878     |   |                                                                             |   | 92,900 |   |
| Loss      on derivative liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     | 471,174    |   |                                                                             |   | 4,622,834 |   |
| Other      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     | -          |   |                                                                             |   | (16,779 | ) |
| Impairment      on equipment held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     | 2,060,000  |   |                                                                             |   | 2,060,000 |   |
| Total      other expense (income)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     | 2,579,052  |   |                                                                             |   | 6,758,955 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Loss      before income taxes and extraordinary gain                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     | (5,760,760 | )      |                                                                             |   | (10,840,592 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Income      tax provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                     | -          |   |                                                                             |   | (1,792,934 | ) |
| Loss      before extraordinary gain                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                     | (5,767,070 | )      |                                                                             |   | (12,633,526 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Extraordinary      gain on acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                     | -          |   |                                                                             |   | 10,346,857 |   |
| Net      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                        | (5,767,070 | )      |                                                                             | $      | (2,286,669 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Net      loss per common share – basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                        | (0.33      | )      |                                                                             | $      | (073 | ) |
| Net      income per common share from extraordinary gain on acquisition – basic      & diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                     | -          |   |                                                                             |   | 0.60 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Net      loss per common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                        | (0.33      | )      |                                                                             | $      | (0.13 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |
| Weighted      average number of common shares outstanding - basic and      diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                     | 17,647,110 |   |                                                                             |   | 17,237,643 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     |       |   |                                                                             |   |   |   |

----

|                                                         |   | PreferredStock(Shares) |   |   | PreferredStock($) |   |    | Discount      on Preferred Stock($) |   |   | CommonStock(Shares) |   |   | CommonStock($) |             |   | AdditionalPaid-inCapital($) |   |   | (Deficit)Income      Accumulated During the DevelopmentStage($) |   |   | TotalStockholders’Equity($) |   |
|--------------------------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|---------|-------------------------------------|--------|--------|---------------------|--------|--------|----------------|------------------|--------|-----------------------------|--------|--------|-----------------------------------------------------------------|--------|--------|-----------------------------------|--------|
| Balance      at April 9, 2009 (Inception)                    |   |                   | -      |   |              | $      | -       |                                |   | $      | -                   |   |   |           | 9,760,000        |   |                        | $      | 9,760  |                                                            |   | $      | 49,995                            |   |   | $ | (83,218 | ) |   | $ | (23,463 | ) |
| Reverse      Acquisition                                     |   |                   |   |   |              |   |    |                                |   |   |                |   |   |           | 7,321,077        |   |                        |   | 7,321  |                                                            |   |   | (66,745                           | )      |   |   | 83,218 |   |   |   | 23,794 |   |
| Sale      of 12,000 preferred shares                         |   |                   | 12,000 |   |              |   | 120,000 |                                |   |   | (120,000            | )      |   |           |             |   |                        |   |   |                                                            |   |   |                              |   |   |   |   |   |   |   | - |   |
| Sale      of 5,000 preferred shares                          |   |                   | 5,000  |   |              |   | 50,000  |                                |   |   | (50,000             | )      |   |           |             |   |                        |   |   |                                                            |   |   |                              |   |   |   |   |   |   |   | - |   |
| Sale      of 5,500 preferred shares                          |   |                   | 5,500  |   |              |   | 55,000  |                                |   |   | (55,000             | )      |   |           |             |   |                        |   |   |                                                            |   |   |                              |   |   |   |   |   |   |   | - |   |
| Shares      issued for cancelled warrants                    |   |                   |   |   |              |   |    |                                |   |   |                |   |   |           | 500,000          |   |                        |   | 500    |                                                            |   |   | 3,402,773                         |   |   |   |   |   |   |   | 3,403,273 |   |
| Amortization      of discount on preferred shares            |   |                   |   |   |              |   |    |                                |   |   | 53,973              |   |   |           |             |   |                        |   |   |                                                            |   |   |                              |   |   |   |   |   |   |   | 53,973 |   |
| Net      income                                              |   |                   |   |   |              |   |    |                                |   |   |                |   |   |           |             |   |                        |   |   |                                                            |   |   |                              |   |   |   | 3,480,401 |   |   |   | 3,480,401 |   |
| Balance      at October 31, 2009                             |   |                   | 22,500 |   |              |   | 225,000 |                                |   |   | (171,027            | )      |   |           | 17,581,077       |   |                        |   | 17,581 |                                                            |   |   | 3,386,023                         |   |   |   | 3,480,401 |   |   |   | 6,937,978 |   |
| Shares      in dispute, held by Company,                     |   |                   |   |   |              |   |    |                                |   |   |                |   |   |           | (500,000         | )      |                        |   | (500   | )                                                               |   |   | (1,999,500                        | )      |   |   |   |   |   |   | (2,000,000 | ) |
| Shares      issued for services                              |   |                   |   |   |              |   |    |                                |   |   |                |   |   |           |             |   |                        |   |   |                                                            |   |   | 2,250,446                         |   |   |   |   |   |   |   | 2,250,446 |   |
| Issuance      of shares to Harborview                        |   |                   |   |   |              |   |    |                                |   |   |                |   |   |           | 75,000           |   |                        |   | 75     |                                                            |   |   |                              |   |   |   |   |   |   |   | 75 |   |
| Amortization      of discount on  preferred shares |   |                   |   |   |              |   |    |                                |   |   | 36,494              |   |   |           |             |   |                        |   |   |                                                            |   |   |                              |   |   |   |   |   |   |   | 36,494 |   |
| Net      loss                                                |   |                   |   |   |              |   |    |                                |   |   |                |   |   |           |             |   |                        |   |   |                                                            |   |   |                              |   |   |   | (5,767,070 | ) |   |   | (5,767,070 | ) |
| Balance      at January 31, 2010                             |   |                   | 22,500 |   |              | $      | 225,000 |                                |   | $      | (134,533            | )      |   |           | 17,156,      077 |   |                        | $      | 17,156 |                                                            |   | $      | 3,636,969                         |   |   | $ | (2,286,669 | ) |   | $ | 1,457,923 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Three      months ended January 31, 2010 |       |   | For      the period from April 9, 2009 (Inception) through January 31,      2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|------------|--------|----------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                     |       |   |                                                                             |   |
| Cash      flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                     |       |   |                                                                             |   |
| Net      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                        | (5,767,070 | )      |                                                                             | $      | (2,286,669 | ) |
| Adjustments      to reconcile net loss to net cash provided by (used in) operating      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                     |       |   |                                                                             |   |   |   |
| Gain      on acquisition, net of cash acquired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                     | -          |   |                                                                             |   | (10,284,842 | ) |
| Discount      on note payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                     | -          |   |                                                                             |   | (215,000 | ) |
| Impairment      on equipment held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                     | 2,060,000  |   |                                                                             |   | 2,060,000 |   |
| Stock      compensation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                     | 2,250,521  |   |                                                                             |   | 2,250,521 |   |
| Loss      on derivative liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                     | 471,174    |   |                                                                             |   | 4,700,906 |   |
| Depreciation      and      amortization                                                                                                                                               |   |                                     | 146,750    |   |                                                                             |   | 401,000 |   |
| Discount      on preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                     | (36,494    | )      |                                                                             |   | (207,521 | ) |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                     | 71,640     |   |                                                                             |   | 95,434 |   |
| Changes      in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                     |       |   |                                                                             |   |   |   |
| Prepaid      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                     | 20,864     |   |                                                                             |   | (35,917 | ) |
| Related      party accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                     | (43,417    | )      |                                                                             |   | (43,417 | ) |
| Licensing      agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                     | -          |   |                                                                             |   | (1,500,000 | ) |
| Capitalized      issuance expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                     | 42,083     |   |                                                                             |   | (15,584 | ) |
| Accounts      payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                     | 376,100    |   |                                                                             |   | 790,457 |   |
| Related      party accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                     | 410,541    |   |                                                                             |   | 624,626 |   |
| Deferred      liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                     | -          |   |                                                                             |   | 1,500,000 |   |
| Income      taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     | -          |   |                                                                             |   | 1,792,934 |   |
| Net      cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                     | 2,692      |   |                                                                             |   | (373,072 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                     |       |   |                                                                             |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                     |       |   |                                                                             |   |   |   |
| Cash      paid for acquisition of Liquafaction                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                     | -          |   |                                                                             |   | (62,015 | ) |
| Net      cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                     | -          |   |                                                                             |   | (62,015 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                     |       |   |                                                                             |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                     |       |   |                                                                             |   |   |   |
| Sale      of Series A convertible preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                     | -          |   |                                                                             |   | 225,000 |   |
| Cash      from note payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                     | -          |   |                                                                             |   | 215,000 |   |
| Net      cash  provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                     | -          |   |                                                                             |   | 440,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                     |       |   |                                                                             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                     |       |   |                                                                             |   |   |   |
| Net      decrease in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                     | 2,692      |   |                                                                             |   | 4,913 |   |
| Cash      and cash equivalents, beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                     | 2,221      |   |                                                                             |   | - |   |
| Cash      and cash equivalents, end of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                        | 4,913      |   |                                                                             | $      | 4,913 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                     |       |   |                                                                             |   |   |   |
| Supplemental      disclosures:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                     |       |   |                                                                             |   |   |   |
| Cash      paid during the period for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                        | 18,811     |   |                                                                             | $      | - |   |
| Cash      paid during the period for income      taxes                                                                                             |   | $                                        | -          |   |                                                                             | $      | - |   |

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| Level      1 |   | Quoted      market prices available in active markets for identical assets or      liabilities as of the reporting date.                                                   |
|--------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level      2 |   | Pricing      inputs other than quoted prices in active markets included in Level 1,      which are either directly or indirectly observable as of the reporting      date. |
| Level      3 |   | Pricing      inputs that are generally observable inputs and not corroborated by market      data.                                                                         |

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| · | Of      management’s responsibility for establishing and maintaining adequate      internal control over its financialreporting; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| · | Of      management’s assessment of the effectiveness of its internal control over      financial reporting as of year end;and |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| · | Of      the framework used by management to evaluate the effectiveness of the      Company’s internal control over financial      reporting.  Furthermore, it is required to file the auditor’s      attestation report separately on the Company’s internal control over      financial reporting on whether it believes that the Company has      maintained, in all material respects, effective internal control over      financial reporting. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                       |   | July      14, 2009 |       |
|------------------------------------------------------------|--------|--------------------|------------|
| Property      & equipment                              |   | $                  | 10,631,970 |   |
| Inventory      available for sale                          |   |               | 5,150,000  |   |
|      Total      assets            |   |               | 15,781,970 |   |
| Liabilities                                                |   |               | 1,868,749  |   |
|      Total      acquisition price |   | $                  | 3,473,364  |   |

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| Note      Holder               |   | Date      of Issuance |   | Maturity      Date |   | Interest      Rate |                                |   | Issue      Amount |    |
|--------------------------------|--------|-----------------------|--------|--------------------|--------|--------------------|-------------------------------------|--------|-------------------|---------|
| NWNRG/ADAB      (1)            |   | 4/27/2007             |   | 1/31/2010          |   |               |      9.25% |   |              | $       | 360,000 |   |
| Shawn      Bunce (2)           |   | 5/29/2007             |   | 1/31/2010          |   |               | 12.00                               |   |              |    | 358,000 |   |
| Bruce      Blackwell (3)       |   | 8/1/2008              |   | 1/31/2010          |   |               | 12.00                               |   |              |    | 220,000 |   |
| Harborview      Master Fund LP |   | 7/31/2009             |   | 11/30/2009         |   |               | 18.00                               |   |              |    | 215,000 |   |
| Bruce      Blackwell (4)       |   | 5/1/2007              |   | 1/31/2010          |   |               | 12.00                               |   |              |    | 200,000 |   |
| Marguerite      Heiser (5)     |   | 11/26/2007            |   | 10/31/2010         |   |               | 9.25                                |   |              |    | 11,000 |   |
| Pat      Brannen (6)           |   | 2/15/2008             |   | 8/9/2008           |   |               | 9.50                                |   |              |    | 10,000 |   |
|                           |   |                  |   |               |   |               |                                |   |              | $       |         1,374,000 |   |
| Accrued      Interest          |   |                  |   |               |   |               |                                |   |              |  $ |      317,648 |   |

| Note (5): | Marguerite      Heiser entered into 3 separate promissory notes with Liquafaction;      $39,600, $30,000 and $4,650.  The note for $39,600 was secured by      equipment and was due on August 9, 2008.  When the principal balance      and interest due was not paid as per the initial agreement, Marguerite      Heiser enforced the security agreement and the equipment was sold to      reduce her total notes payable balance.  A verbal agreement with      Marguerite Heiser was entered into for $11,000 and is included in the      notes payable balance at January, 31,2010. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Development      of a 4 million gallon per year (mmgy) cellulosic ethanol production      facility located in an area with a large availability of straw biomass.      The project is attractive as the initial cellulosic facility due to the      fact that the site for the proposed facility has existing ethanol      components and equipment, initial design work for the project has already      been completed, and certain permits for ethanol production already exist      at the facility. These elements, combined with the goal of engineering and      constructing a relatively small commercial scale production facility,      provide the potential to complete the project and bring it online in as      little as relatively quickly. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Development      of a 60 mmgy cellulosic ethanol production facility to be located adjacent      to an existing pulping facility. The project will leverage the existing      mill assets for the handling of large quantities of wood biomass and the      capability to produce pulp cellulose, and will utilize a proprietary      technology to convert the cellulose to fermentable  sugars. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|     1.      | To      preserve and create jobs and to promote economic  recovery |
|----------------------------------------------------------|--------------------------------------------------------------------|

|     2.      | To      assist those most impacted by therecession |
|----------------------------------------------------------|----------------------------------------------------|

|     3.    | To      provide investments needed to increase economic efficiency by spurring      technological advances in science andhealth |
|----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|

|     4.      | To      invest in transportation, environmental protection, and other      infrastructure that will provide long-term economic    benefits |
|----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

|     5.     | To      stabilize State and local government budgets in order to minimize and      avoid reduction in essential services and counterproductive state and      local tax increases. |
|----------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 11/12/2009 | Issued      75,000 common shares valued at $2.62 per share in payment for      services and fees to employees, directors and other third      parties. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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31.1

31.2

32.1

32.2 

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|  Date:      April 20, 2010  | EVOLUTION      RESOURCES, INC.(Registrant) |                                                                                           |
|---------------------------------------|-------------------------------------------------|------------------------------------------------------------------------------------------------|
|                                  |                                            |                                                                                           |
|                                  | By:                                   |  /s/      Dennis G. McLaughlin                                                       |   |
|                                  |                                            |  Dennis      G. McLaughlin                                                           |   |
|                                  |                                            |  President      and Chief Executive Officer (Principal      Executive Officer)  |   |

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