SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, D.C.  20549
                                   
                                   
                              FORM 10-KSB
                                   
                                   
           ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                THE SECURITIES AND EXCHANGE ACT OF 1934
                                   
                                   
               For the fiscal year ended April 30, 1998
                                   
                      Commission File No. 0-29164
                                   
                    TRI-NATIONAL DEVELOPMENT CORP.
            (Name of Small Business Issuer in its charter)
                                   
                                   
                                   
           Wyoming                                  33-0741573
     (State of Incorporation)                       (I.R.S. ID)

                                   
                                   
                   480 Camino Del Rio S., Suite 140
                      San Diego, California 92108
               (Address of principal executive officers)



Securities registered pursuant to section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

                 Common Stock, No Par Value Per Share
                           (Title of Class)



Indicate by check mark whether Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities and Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that
the Registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.

                                   
                          Yes  X     No     
                             -----     -----

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

As of July 31, 1998, 18,434,423 shares of the registrant's common stock
were outstanding.  The aggregate market value of the Registrants's free-
trading common stock, held by non-affiliates on July 31, 1998 was
approximately $7,350,000, based on the closing price of the stock on July
31, 1998.

<PAGE>

                     TRI-NATIONAL DEVELOPMENT CORP.

                               FORM 10-KSB

                FOR THE FISCAL YEAR ENDED APRIL 30, 1998

                            TABLE OF CONTENTS

INTRODUCTION                                                         PAGE

Part I

Item 1    Business . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Item 2    Properties . . . . . . . . . . . . . . . . . . . . . . . . . 13
Item 3    Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . 13
Item 4    Submission of Matters to a Vote of Security Holders. . . . . 13

Part II

Item 5    Market for Registrant's Common Stock and Related
          Stockholder Matters. . . . . . . . . . . . . . . . . . . . . 14
Item 6    Selected Financial Data. . . . . . . . . . . . . . . . . . . 17
Item 7    Management's Discussion and Analysis of Results of
          Operations and Financial Condition . . . . . . . . . . . . . 17
Item 8    Financial Statements and Supplementary Data. . . . . . . . . 21
Item 9    Changes in and Disagreements with Accountants on
          Accounting and Financial Disclosures . . . . . . . . . . . . 21

Part III

Item 10   Directors and Executive Officers of the Registrant . . . . . 22
Item 11   Executive Compensation . . . . . . . . . . . . . . . . . . . 25
Item 12   Security Ownership of Certain Beneficial Owners and
          Management . . . . . . . . . . . . . . . . . . . . . . . . . 25
Item 13   Certain Relationships and Related Transactions . . . . . . . 26

Part IV

Item 14   Exhibits, Financial Statement Schedules and Reports
          on Form 8-K. . . . . . . . . . . . . . . . . . . . . . . . . 27
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44



                                    2

<PAGE>

                                 PART I

Item 1.   BUSINESS

GENERAL

Tri-National Development Corp. ("TND" or the "Company") was incorporated on
July 31, 1979 as Rocket Energy Resources Ltd. under the laws of the
Province of British Columbia, Canada by registration of its Memorandum and
Articles.  The Company changed its name to MRI Medical Technologies, Inc.
in April of 1989.  On December 7, 1992, the Company changed its name to
Tri-National Development Corp. and recapitalized on the basis of five (5)
common shares of MRI Medical Technologies, Inc. for (1) common share of
Tri-National Development Corp.  The shareholders of the Company approved a
resolution to continue the corporate domicile from British Columbia, Canada
to the State of Wyoming at the Annual General Meeting held on January 20,
1997.

Tri-National Development Corp. ("TND" or the "Company") is a publicly
traded corporation, which develops, sells and manages real estate projects
in the U.S., Canada and Mexico.  TND's business strategy emphasizes quality
real estate projects in high growth areas.  The Company is divided into
three main categories: residential development, resort-related development
and assisted living/retirement.

CURRENT PROJECTS

TND/MEDICAL INTERNATIONAL, INC.  This California corporation is a wholly
owned  subsidiary of TND and was formed to acquire, develop and/or manage
medically related businesses.  The initial geographic region for this
company to focus is California and Baja California, Mexico.  On June 4,
1996, TND/Medical International, Inc. acquired an existing entity in
California, the Greater San Diego Imaging Center (GSDIC).  GSDIC has
provided magnetic resonance imaging (MRI) services in the San Diego area
since 1990.  The Company agreed to purchase the fixed assets, certain trade
accounts receivable, certain assignable contracts, leases and agreements,
prepaid expenses and the goodwill of the business.  The purchase price is
$599,999 for the fixed assets and $1.00 for other assets and is payable as
follows:

(a)  by payment of $325,000, of which $25,000 U.S. was paid upon execution
of the agreement (partially paid from deposit on letter agreement), and
(b)  by the issuance of 857,142 common shares in the capital of TND based
upon a value of $0.35 U.S. per share for total share consideration having
a value of $300,000 U.S., and
(c)  on December 30, 1996, the Company entered into an agreement with First
Colonial Ventures, Ltd., Nevada publicly traded company, to sell it 1/3 of
GSDIC for $350,000 cash, payable over twelve months.  As of April 30, 1998,
First Colonial had paid a total of $112,367, with unpaid principal,
interest and penalties of $357,748.  The Company has declared First
Colonial in default and has retained the 1/3 interest as liquidated
damages.

This facility, with build outs, was originally financed for $2.5 million. 
The equipment has a current appraisal of $1.2 million and tenant
improvements of $241,000.  An "open unit" upgrade was recently completed
for claustrophobic and large patients.

                                    3

<PAGE>

MRI MEDICAL DIAGNOSTICS, INC. In 1992, the Company sold its wholly owned
subsidiary, MRI Medical Diagnostics Inc., a California corporation to
Petro-Global, Inc., a Colorado publicly traded corporation.  In return the
Company received 6,000,000 restricted common shares of the purchaser,
Petro-Global, Inc., plus certain mineral properties and leases.  In 1992,
the mineral properties were written down to a nil value in the records and
the name was changed to MRI Medical Diagnostics, Inc.(MRI-Med).  MRI-Med
filed for Chapter 11 bankruptcy protection on July 22, 1993.  After
dividends in kind to TND shareholders totaling 2,000,000 shares in 1992 and
1993, and due to uncertainty in the underlying value of the remaining
4,000,000 MRI-Med shares held by the Company, the carrying cost of these
shares was written-off in 1994.  Tri-National Development Corp. filed a
reorganization plan on behalf of MRI-Med in August 1995 and the Company
received 5,900,000 shares of MRI-Med at a deemed value of $0.50 per share,
ordered by the U.S. Federal Bankruptcy Court, plus 1,400,000 for
reimbursement of current expenses.   In July of 1997, MRI-Med recapitalized
on a 1 for 5 basis.  The investment is recorded in the books at a cost of
$496,994.  The Company declared and paid a stock dividend of 750,000 shares
of MRI-Med to shareholders of record August 31, 1997 and declared a second
stock dividend of an additional 750,000 to shareholders of record January
27, 1998. After the stock dividends paid to TND shareholders in 1992, 1993,
1997 and 1998, and shares sold to finance the reorganization, the Company
retains approximately 415,000 post-split shares of MRI-Med. MRI-Med is
currently traded on the Over the Counter Bulletin Board under the symbol
"MMDI" and has traded in the $.05 to $.10 range for the past several
months.

LITIGATION AGAINST CITIZENS BUSINESS BANK.  As a result of the MRI-Med
Reorganization Plan, the Company acquired all of the common stock of MRI
Grand Terrace, Inc., a California corporation.  MRI Grand Terrace, Inc. was
originally a joint venture between MRI Medical Diagnostics, Inc. and TND
that previously owned the Grand Terrace Retirement Hotel.  This hotel is an
87-room retirement facility located in San Bernardino, California.  The
current sole asset of this corporation is a lawsuit against Chino Valley
Bank, the seller of the retirement hotel. On March 22, 1993, MRI Grand
Terrace, Inc. filed a complaint against Chino Valley Bank, now known as
Citizens Business Bank (AMEX:CVB).  MRI Grand Terrace, Inc. claimed that
the sellers of the property (Chino Valley Bank) had failed to disclose that
the property's parking lot encroached on the property of the adjacent
parcel of land. Contrary to the bank's representations, the Conditional Use
Permit (CUP) under which the hotel was operating was in violation, which
restricted the ability of TND and MRI Grand Terrace, Inc. to operate,
refinance or sell the facility.  MRI Grand Terrace, Inc. stopped making
mortgage payments to the mortgage holder (the same Chino Valley Bank),
which then filed a Notice of Default as an initial step to foreclosure on
the property.  MRI Grand Terrace, Inc. then sought Bankruptcy protection in
July of 1993, and was ultimately dismissed from Bankruptcy in May of 1995. 
The Chino Valley Bank subsequently sold the property in foreclosure to
itself.  TND filed it's own action against the Chino Valley Bank in early
1995, claiming that it was defrauded and misrepresented when it advanced
$383,064 for the closing in 1992.  The Company purchased the remaining
stock of MRI Grand Terrace, Inc., as described in Note 4 in the financial
statements, in an effort to control both lawsuits.  As a result of the
uncertainty of the final results of the lawsuits, the Company wrote off
this investment.  In May of 1998, TND and MRI Grand Terrace, Inc. received
judgements in their favor for fraud, intentional misrepresentation and
deceit/negligent misrepresentation in the Superior Court of San Bernardino,
California. In addition, TND and MRI Grand Terrace, Inc. received
judgements totaling almost $5 million dollars, including punitive and
compensatory damages, plus pre-trial interest. Beginning May 7th, 1998 the
$5 million judgement began accruing, post judgement interest of 10% or
$1,400 per

                                    4

<PAGE>

day until the full award is paid.  By August 17, 1998, the bank must either
appeal or pay this judgement.

HILLS OF BAJAMAR.  TND currently owns 100% of Planificacion Desarollos de
Jatay, S.A. de C.V. ("Planificacion"), a Mexican corporation, having
acquired this entity for a combination of 1,000,000 restricted Common
Shares of the Company at a value of $.70 per share and 500,000 shares of
the Company's Class B Series B Convertible Preferred Stock at a value of
$4.00 per share from Pacific International, Inc. (PMI), see Note ^ in
"Notes to the Financial Statements".  In addition, the Company gave up its
51% interest in PMI.  PMI was formed for the sole purpose of owning and
developing the Hills of Bajamar, formerly known as the Santa Fe Ranch. The
Hills of Bajamar is an approximate 1,000 hectare (roughly 2,500 acre)
parcel of real property located in the Municipality of Ensenada, on the
Pacific Ocean side of Baja, Mexico, 50 miles south of San Diego,
California. Planificacion has a land purchase contract which provides for
an overall purchase price of $6,000,000 for the 2,500 acres ($2,400 per
acre or $.60 per sq. meter).   The terms for the remaining balance of
$4,800,000 are $600,000 per year for 8 years.  There is no interest until
the sixth year, when interest on the remaining balance begins at 6% per
annum.  The purchase terms were negotiated in 1991 prior to four events:
(1) the passage of NAFTA; (2) the liberalization of foreign ownership of
land in Mexico; (3) the California Department of Real Estate issuing a
decree that the advertisement in California for sale of foreign homes and
land is no longer subject to their jurisdiction; and (4) the mega-
developments in the area (see below under "Growth Strategy").  A certified
bank appraisal in March of 1998 showed the property valued in excess of
$71,000 per acre. Planificacion has title to 237 acres and is currently
taking title to 247 additional acres.  Stewart Title of Houston, Texas will
be doing all of the title work for this property.

The Hills of Bajamar property is located in the region that has become
known as "the Gold Coast" because of the current and planned developments. 
Bajamar (see below), a 1,600 acre master-planned oceanfront resort, is 
located directly across the highway from the property.  Bajamar  is currently
owned by Desarrollos Urbanos Baja California, S.A. de C.V., whose largest
shareholder is Grupo Situr, a Mexican publicly traded company.  Bajamar
consists of 1,600 acres, which include 27 holes of championship golf, 81
room hotel with land set aside for an additional 9 holes of golf,
additional 102-room hotel, condominiums and luxury family homes.  Grupo
Situr was in the process of an announced $100,000,000 in improvements,
prior to its parent company's financial problems.

SALES OF PROPERTY AT HILLS OF BAJAMAR

INTERNATIONAL HEALTH NETWORKS, INC. In October of 1997, TND finalized
negotiations and executed agreements to sell 150 acres of its Hills of
Bajamar property to International Health Networks, Inc. ("IHN"), a Nevada 
corporation, for $25,000 per acre with a 3-year option to acquire an
additional 100 acres at a price of $60,000 per acre.  IHN is a medical
development and management company with primary focus on medical ventures
in Mexico.  IHN had been seeking suitable land in Northern Baja,
California, Mexico for development of a medical campus to include a medical
school, medical delivery system for Americans, medical insurance company,
contract research organization, medical mall, continuing medical education
programs, hospital, medicine clinics, anti-aging clinics, special programs
and assisted living .  IHN has also executed participation agreements,
which provide TND with a management fee of 10% of the square foot rental
fees on the site, as well as, a construction contract at cost plus 10% for
all construction required on the total 250 acres.

                                    5

<PAGE>

NETROM, INC.  In February of 1998, TND signed an agreement with Netrom,
Inc. (OTC BB:NRMM) of San Diego, California to sell 50 acres of its Hills
of Bajamar property for 1 million shares of Netrom's Convertible Preferred
Stock, at a value of $3.00 per share, plus a construction and multi-year
management contract. The preferred stock will cumulate interest at a rate
of 15% per annum and will be convertible into common stock at $3.00 per
share or market price for the 10 day average prior to the date of
conversion, which ever is less, but in no event less than $1.50 per share. 
The conversion date is at the option of TND, however, no sooner than 12
months from the date of closing and in no case later than 15 days after the
common stock of NetRom, Inc. trades at or above $4.00 per share for a
period of thirty consecutive days. Additionally, NetRom, Inc. will provide
TND with warrants to purchase 1,000,000 common shares at a price of $1.25
per share, presuming that NetRom, Inc. achieves its stated projection of
$.31 per share in earnings for the year ending December 31, 1998.  In the
event that NetRom, Inc. falls below the $.31 per share earnings projection,
but no lower than $.21 in earnings for that period, then the warrant price
will fall to $1.00 per share.  Further, if the earnings fall to between
$.11 and $.21, then the option price will be reduced to $.75 per share and
in the event the earnings fall below $.11 per share, the option price will
be reduced to $.50 per share.  The price and terms for the property are
based on arms length negotiations between the parties and was approved by
the Board of Directors of TND and the shareholders of NetRom, Inc. at their
Annual Meeting of Shareholders, held on January 19, 1998.

NetRom, Inc., a developer of action sports CD-Rom and interactive internet
programming, has begun the pre-planning stages with the intent to develop
the site as a post-production multimedia studio, with additional rights to
use the site for Action Sports events.

In June of 1998, NetRom, Inc. exercised an option to acquire an additional
200 acres of the Company's Hills of Bajamar property for $4.2 million.  The
$4.2 million was paid with 4.2 million restricted shares of NetRom, Inc.
common stock.  By exercising an option to acquire the 200 acres, NetRom,
Inc. increased their total holdings to 250 acres.  The combined parcel will
be utilized via a joint venture arrangement with TND to develop an extreme
sports destination resort on a total 500 acre parcel.

BAJAMAR HOTEL AND GOLF RESORT.  TND entered into escrow at Stewart Title of
Houston, Texas, in June of 1996 to purchase the existing 27 holes of golf,
81 room hotel, clubhouse with restaurant, tennis courts, driving range,
land for a fourth set of 9 holes, land for a 102 room addition to the hotel
with conference center and approximately 300 acres of assorted residential
properties on the golf courses for a total purchase price of $39,500,000. 
 The escrow, which had an original expected closing by October 5, 1996, has
been extended several times at the request of Grupo Situr.

PLAZAS RESORT TIMESHARES AND COMMERCIAL PROPERTY.  The properties in escrow
at Stewart Title of Houston, Texas are in addition to a vacation ownership
(timeshare) and commercial property at Bajamar, known as the Players Club
at Bajamar the Company is acquiring.  In December of 1996, the Company
entered into an acquisition agreement with Valcas International, S.A. de
C.V., to acquire 100% of the stock of Inmobilaria Plaza Baja California,
S.A. de C.V., a Mexican corporation, including its existing assets, which
include 16+ developed acres of ocean front land within the Bajamar resort
complex with plans for 328 vacation ownership (timeshare) units, plus a
26,000 square foot adjacent commercial building under construction for
$13,079,055, payable with notes for $9,079,055 and 1,000,000 Class B Series
B Convertible Preferred shares with a value of

                                    6

<PAGE>

$4.00 per share  (See Note 14 in the "Notes to the Financial Statements"
for details.).  The Company has projected a five-year sellout with a
minimum sales price of $10,000 per week, per unit for total sales in excess
of $170,000,000, with a construction, marketing and sales cost under
$100,000,000.

ACTIVITY LINK, INC. In January of 1998, TND, through its wholly owned
subsidiary, Tri-National Resorts Management, Inc., acquired 85% of Activity
Link, Inc., a Nevada corporation, for a combination of $228,000 in cash and
75,000 shares of restricted Common Stock in TND and a quarterly
distribution of profits in the amount of 15% once Activity Link, Inc. has
achieved $300,000 in net profits.  Activity Link, Inc. owns the proprietary
rights to "Activity Link", a reservation system for many different types of
tourist activities that will be accessed directly by the concierge desks of
major hotels and resorts.  The hotels and resorts will be billed for each
ticket or reservation paid through Activity Link.  The first three beta
sites for Activity Link are being prepared for a vacation ownership
developer in Hawaii, starting in late 1998.  Once beta testing is complete,
Activity Link plans to initially target the 500 hotels in Hawaii.  In
addition, the Company intends to utilize Activity Link for its own vacation
ownership and resort properties.  As of April 30, 1998, no restricted
Common Stock in TND had been issued in connection with this acquisition.

ASSISTED LIVING. In January of 1998, TND finalized negotiations and
executed agreements to purchase its first assisted living facility to be
built and delivered, for a combination of $110,000 in cash, 864,500 shares
of the Company Class B Series B Convertible Preferred Stock (for terms of
the Preferred Stock see Note 19 in the "Notes to the Financial Statements")
and a new mortgage for a total of $8,140,000 from Solymar, Inc., a Nevada
corporation. TND, through a newly formed subsidiary, Alpine Gardens East,
intends to operate this 100 suite assisted living facility in Youngtown,
Arizona.  This 100-unit facility is planned to include 40 two-bedroom units
and 60 one-bedroom units.  In June of 1998, the Company closed on this
property.  Financing is expected to be in place through FHA by September of
1998 at which time the Company intends to break ground on the construction. 
As of April 30, 1998, the Company had paid a total of $65,000 in cash and
issued 864,500 shares of Class B Series B Convertible Preferred Stock.

In April of 1998, TND executed agreements to allow the Company to begin its
due diligence process for an additional assisted living facility in San
Marcos, California.  Subject to satisfactory results from the marketing
study and due diligence, this facility would be built and delivered for a
combination of cash, preferred stock and a mortgage for a total of
$14,350,000.  This 91-unit facility would include 31 studios and 60 one-
bedroom units.

The Company entered this industry to take advantage of the trends affecting
the long-term care industry.  TND's objective is to provide high quality
assisted living services to senior housing residents in a cost-effective
manner.  TND assisted living facilities are expected to combine housing,
minimum health care and personal support for elderly residents who need
help with certain activities of daily living without the need of a complete
nursing facility.

                                    7

<PAGE>

GROWTH STRATEGY

The Company's primary development focus is the creation of a large-scale
world class resort, also encompassing a residential and retirement complex
on the combined ultimate 4,000 acres of the Hills of Bajamar and the
Bajamar Hotel and Golf Resort.  The residential complex will include
condominiums, single-family housing, ranchettes and assisted living,
located within a 1-hour drive from San Diego, California. The region caters
primarily to Southern California travelers already visiting Baja
California, and provides an alternative attraction to Palm Springs, Phoenix
and Las Vegas.  Where these desert communities are only viable six months
of the year due to extreme heat in the summer, Baja California offers a
year round climate averaging 75 degrees Fahrenheit. Additionally, Baja
California offers the amenities available from its oceanfront location
including fishing, sailing, swimming, surfing, other water sports, and
oceanfront golf, a competitive advantage that desert communities cannot
provide.

The residential development will be built around a 150-acre medical campus
the Company plans to joint venture with International Health Networks, Inc.
on the southwest corner of the Hills of Bajamar property.  The medical
campus will utilize the lower cost for support available in Mexico,
combined with the historic quality of medicine in the United States. The
medical campus is planned to consist of the following components: (1) a
continuing medical educational facility; (2) a pharmaceutical research and
development center, allowing pharmaceutical companies to do clinical
studies with treatment not yet available in the U.S. due to delays and hold
backs from the Food and Drug Administration (FDA); (3) an 80 to 100 bed
hospital; (4) a 500,000 square foot year-round medical exhibition center
and merchandise mart for major manufacturers of medical equipment; (5) a
Children's Hospital accompanied by a Burn Unit; (6) an Urgent Care; (7)
Chemical Dependency Treatment; and (8) a four-year medical school taught in
english. The medical campus will also provide services to the 2 million
tourists crossing the border each month, including the 500,000 people that
cross for work and business, and the 75,000 ex-patriots living in the
region who presently must rely on the Mexican health care system, which is
designed primarily for Mexican Nationals.

To further enhance residential sales and golf and hotel usage, the Company
is developing a 328-unit vacation ownership complex across from the
clubhouse at the Bajamar Hotel and Golf Resort, known as the Players Club
at Bajamar.  It will be on a 16-acre site overlooking the golf course and
Pacific Ocean.  To insure long term growth of Bajamar, the Company plans to
initiate an equity reinvestment program, allowing vacation ownership
purchasers to transfer their equity to any of the residential properties
anywhere on the 4,000 acres.  This allows prospective home buyers to
experience Baja California, without initially making a major financial
commitment.

Other new developments in the region include: (1) access to U.S. title
insurance; (2) access to U.S. mortgage money; (3) a $200 million plan to
privatize and expand the port of Ensenada, which is underway and is to
include a 70 mile railroad link to the United States, Baja California's
first container-handling facility, and a new passenger cruise ship
terminal, which is also under construction; (4) a $400 million power plant
that will generate 440 megawatts, enough to power one million homes, to be
built in the Rosarito and Ensenada area; (5) the possible legislation of
casino gaming which would be a tremendous windfall for the Mexican economy
and the Baja California coast; (6) construction is under way on Puerto
Salina, a reported $150 million, 600-boat marina that is located just one
mile north of the Hills of Bajamar or 46 nautical miles south of San Diego;
(7) Beacon Studios, a Canadian movie production company, in

                                    8

<PAGE>

conjunction with Fox Studios, has built a movie studio located on a 150-acre
site just north of the Hills of Bajamar with a project cost in excess
of $55 million for the filming of the movie, the Titanic.  There are
several additional movies scheduled for filming at this same studio.

FACTORS AFFECTING FUTURE RESULTS REGARDING FORWARD-LOOKING STATEMENTS

The Company's business, results of operations and financial condition are
subject to many risks, including those set forth below.  Certain statements
contained in this report, including without limitation statements
containing the words "believes," "anticipates," "expects," and words of
similar import, constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995.  Such forward-
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of
the Company, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements.  The Company has made forward-looking
statements in this report concerning, among other things, the impact of
future acquisitions and developments, if any, and the level of future
capital expenditures.  These statements are only predictions, however;
actual events or results may differ materially as a result of risks facing
the Company.  These risks include, but are not limited to, those items
discussed below.  Certain of these factors are discussed in more detail
elsewhere in this report, including without limitation under the captions
"Business" and "Management's Discussion and Analysis of Financial Condition
and Results of Operations."  Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking statements,
which speak only as of the date of this report.  The Company disclaims any
obligation to update any such factors or to publicly announce the result of
any revisions to any of the forward-looking statements contained herein to
reflect future events or developments.

The Company has executed numerous contracts for, among other things,
acquisition and development of real estate projects.  Certain risks are
inherent with the implementation of the Company's growth strategy.  These
risks include, but are not limited to, access to capital necessary for
acquisition and development, the Company's ability to sustain and manage
growth, governmental regulation, competition and risks common to the real
estate development industry.

CAPITAL REQUIREMENTS

To implement its growth strategy, the Company intends to initially fund
acquisitions, development and general working capital by issuing a Private
Placement of nine-month Corporate Notes at 10% interest per annum to
institutional and accredited investors. The investors principal and
interest are further bonded by New England Surety Co., for up to $8
million.  The primary use of proceeds generated from the $8 million will be
used for the construction of the first 41-unit phase of the Players Club at
Bajamar vacation ownership (timeshare) complex.  The Company has, at its
option, the ability to renegotiate for up to an additional $15 million of
bonding from New England Surety Co., once the $8 million has been placed,
using the first 41-unit phase as collateral.  The Company intends to repay
the principal and interest with cash flow generated from vacation ownership
sales.  As of April 30, 1998 the Company placed $660,000 in Corporate
Notes.

                                    9

<PAGE>

In addition to the Corporate Notes, the Company is seeking joint venture
partners to finance several projects at the Bajamar Hotel and Golf Resort
and the Hills of Bajamar properties.

COMPETITION

The retirement and residential housing business are highly competitive, and
the Company competes with numerous housing producers ranging from regional
and national firms to small and local builders primarily on the basis of
price, location, financing, design, reputation quality and amenities.  In
addition, the Company competes with other housing alternatives including
existing homes and rental housing.

VACATION OWNERSHIP. There are three vacation ownership properties to
compete with in Baja; the Rosarito Beach Hotel, the Grand Baja Club and
Hussongs Vacation Club in Ensenada, none of which are located on or near a
golf course.  However, the U.S. competition is the Four Seasons at Aviara,
Grand Pacific Resorts in Carlsbad, the Winner's Circle in Del Mar, Pacific
Monarch Resorts in Laguna Hills and the Marriott in Palm Desert, all at
least a 1-3 hour drive from the Players Club at Bajamar.

ASSISTED LIVING.  The health care industry is highly competitive and the
Company expects the assisted living business in particular will become more
competitive in the future.  The Company will face competition from numerous
local, regional and national providers of assisted living and long-term
care whose facilities and services are on either end of the senior care
continuum from skilled nursing facilities and acute care hospitals to
companies providing home based health care, and even family members.  In
addition, the Company expects that as assisted living receives increased
attention among the public and insurance companies, competition from
current and new market entrants, including companies focused on assisted
living, will increase.  Some of the competitors in this industry operate on
a not-for-profit basis or as charitable organizations, while others have,
or may obtain, greater financial resources than those available to the
Company.

RAPID GROWTH

MANAGEMENT OF GROWTH.  As part of its ongoing business, the Company has
experienced and expects to continue to experience rapid growth.  The
Company is planning significant expansion both through internal expansion
and acquisitions and development.  In order to maintain and improve
operating results, the Company's management must manage growth and
expansion effectively.  The Company's ability to manage its growth
effectively requires it to continue to expand its operational, financial
and management information systems and to continue to attract, train,
motivate, manage and retain key employees.  As the Company continues its
expansion, it may become more difficult to manage geographically dispersed
operations.  The Company's failure to effectively manage growth could have
a material adverse effect on the Company's results from operations.

EXTERNAL GROWTH.  In line with its growth strategy, the Company has entered
into, and will continue to enter into, a number of agreements to acquire
properties for development.  There can be no assurance that one or more of
such acquisitions will be completed or that the Company will be able to
find additional suitable properties to continue a steady rate of growth. 
There can be no assurance that suitable properties will be available for
future acquisition and development at prices attractive to the Company. 
The

                                   10

<PAGE>

acquisition and development of properties are subject to a number of risks,
many of which are outside the Company's control.  There can be no assurance
that the Company will be able to complete its planned facilities in the
manner, for the amount or in the time frame currently anticipated.  Delays
in the progress or completion of development projects could affect the
Company's ability to generate revenue or to recognize revenue when
anticipated.

DEVELOPMENT AND CONSTRUCTION RISKS

As part of its growth strategy during the next few years, the Company plans
to develop a number of assisted living/retirement, resort and residential
properties.  The Company's ability to achieve its development plans will
depend upon a variety of factors, many of which are beyond the Company's
control.  The successful development of additional properties involves a
number of risks, including the possibility that the Company may be unable
to locate suitable sites at acceptable prices or may be unable to obtain,
or may experience delays in obtaining, necessary zoning, land use,
building, occupancy, licensing and other required governmental permits and
authorizations.  Development schedules may be changed by the Company in
order to accommodate requirements of staffing of new projects and to allow
a phase-in of start-up losses inherent in the marketing and lease-up of new
facilities.  Certain construction risks are beyond the Company's control,
including strikes, adverse weather, natural disasters, supply of materials
and labor, and other unknown contingencies which could cause the cost of
construction to exceed estimates.  If construction is not commenced or
completed, or if there are unpaid subcontractors or suppliers, or if
required occupancy permits are not issued in a timely manner, cash flow
could be significantly reduced.  In addition, any property in construction
carries with it its own risks such as construction defects, cost overruns,
adverse weather conditions, the discovery of geological or environmental
hazards on the property and changes in zoning restrictions or the method of
applying such zoning restrictions.  The nature of licenses and approvals
necessary for development and construction, and the timing and likelihood
for obtaining them vary widely from country to country, state to state, and
from community to community within a state.

REGULATON AND ENVIRONMENTAL

The Company and its subcontractors must comply with various federal, state
and local ordinances, rules and regulations concerning zoning, building
design, construction and similar matters.  The operations of the Company
are affected by various federal, state and local environmental laws,
ordinances and regulations, including regulations pertaining to
availability of water, municipal sewage treatment capacity, land use,
protection of endangered species, population density and preservation of
the natural terrain and coastlines.  These and other requirements could
become more restrictive in the future, resulting in additional time and
expense to obtain approvals for development.  When acquiring land for
development or existing facilities, the Company typically obtains
environmental reports on the properties as part of its due diligence in
order to lessen its risk of exposure.

The Company is also subject to regulations and restrictions by the
government of Mexico concerning investments in business operations in this
country by U.S. companies, none of which has to date had a material adverse
effect on the Company's consolidated operations.  The Company's foreign
operations are also subject to exchange rate fluctuations, which could
affect the Company's financial statements and the reported profits.

                                   11

<PAGE>

ASSISTED LIVING.  Health care is an area subject to extensive regulation
and frequent regulatory change.  Currently, no federal rules explicitly
define or regulate assisted living.  While a number of states have not yet
enacted specific assisted living regulation, the Company is and will
continue to be subject to varying degrees of regulation and licensing by
health or social service agencies and other regulatory authorities in
various states and localities in which it operates or intends to operate. 
Changes in, or the adoption of, such laws and regulations, or new
interpretations of existing laws and regulations, could have a significant
effect on methods of doing business, costs of doing business.  In addition,
the President and Congress have proposed in the past, and may propose in
future, health care reforms that could impose additional regulations on the
Company or limit the amounts that the Company may charge for its services. 
The Company cannot make any assessment as to the ultimate timing and impact
that any pending or future health care reform proposals may have on the
assisted living or health care industry in general.  No assurance can be
given that any such reform will not have a material adverse effect on the
business, financial condition or results of operations of the Company.

VOLATILTIY OF STOCK PRICE

Sales of substantial amounts of shares of Common Stock in the public market
or the perception that those sales could occur could adversely affect the
market price of the Common Stock and the Company's ability to raise
additional funds in the future in the capital markets.  The market price of
the Common Stock could be subject to significant fluctuations in response
to various factors and events, including the liquidity of the market for
the shares of the Common Stock, variations in the Company's operating
results, change in earnings estimates by the Company and/or securities
analysts, publicity regarding the industry or the Company and the adoption
of new statutes or regulations in any the Company's particular industries. 
In addition, the stock market in recent years has experienced broad price
and volume fluctuations that often have been unrelated to the operating
performance of particular companies.  These market fluctuations may
adversely affect the market price of the shares of Common Stock.

CONTROL BY DIRECTORS AND EXECUTIVE OFFICERS

As of April 30, 1998, the Company's Directors and executive officers and
their affiliates beneficially owned approximately 20% of the Company's
outstanding shares of Common Stock (exclusive of unexercised options to
purchase shares of Common Stock).  See Item 12  "Security Ownership of
Certain Beneficial Owners  and Management."  As a result, these
stockholders, acting together, would be able to significantly influence
many matters requiring approval by the stockholders of the Company,
including the election of Directors. These shares are available for sale in
accordance with Rule 144. Rule 144 provides, in essence, that a shareholder
who is an affiliate of the Company, after holding restricted securities for
a period of one year, may every three months, sell them in an unsolicited
brokerage transaction in an amount equal to 1% of the Company's outstanding
common shares, or the average weekly trading volume, if any, during the
four weeks preceding the sale.  Non-affiliated shareholders holding
restricted securities are not subject to the 1% limitation and may sell
unlimited amounts of shares they own, under certain circumstances, after a
one year holding period.  If a substantial part of the shares, which can be
sold were so sold, the price of the Company's common shares might be
adversely affected.

                                   12

<PAGE>

EMPLOYEES

As of April 30, 1998, the Company and its subsidiaries employed 16 people
on a full-time basis and 3 on a part-time basis.  The Company's success is
highly dependent on its ability to attract and retain qualified employees. 
To date, the Company believes it has been successful in its efforts to
recruit qualified employees, but there is no assurance that it will
continue to be successful in the future.  The Company believes relations
with its employees are excellent.

Item 2.   PROPERTIES

LEASES

The Company leases two office facilities in San Diego, California and one
in Ensenada, Baja California under operating leases which expire in 1999
and the year 2000, respectively.  The leases generally require the Company
to pay all maintenance, insurance and property taxes and are subject to
certain minimum escalation provisions.  Rent expense for all operating
leases was approximately $135,900 for the twelve months ended April 30,
1998.

U.S. PROPERTIES

The Company owns approximately 5.5 acres of developed land in Youngtown,
Arizona for the construction of a 100-unit assisted living facility.

MEXICAN PROPERTIES

HILLS OF BAJAMAR. The Company owns, through its wholly-owned Mexican
corporation, Planificacion Desarollos de Jatay, S.A. de C.V.
("Planificacion") 237 acres and is currently taking title to 247 additional
acres of undeveloped land, known as the Hills of Bajamar. The Hills of
Bajamar is an approximate 1,000 hectare (roughly 2,500 acre) parcel of real
property located in the Municipality of Ensenada, on the Pacific Ocean side
of Baja, Mexico, 50 miles south of San Diego, California. Planificacion has
a land purchase contract which provides for an overall purchase price of
$6,000,000 for the 2,500 acres ($2,400 per acre or $.60 per sq. meter).  
The terms for the remaining balance of $4,800,000 are $600,000 per year for
8 years.

PLAYERS CLUB AT BAJAMAR.  The Company is acquiring 16 acres of developed
land at the Bajamar Hotel and Golf Resort for the construction of a 328-unit
vacation ownership complex.  The Bajamar Hotel and Golf Resort is
location directly across the highway from the Hills of Bajamar (see Note 7
in the "Notes to the Financial Statements".

Item 3.   LEGAL PROCEEDINGS

The only legal proceeding the Company is involved with is as a plaintiff
against Citizens Business Bank.  The legal proceeding is detailed above in
Item 1 - Business, "Litigation Against Citizens Business Bank".

Item 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of security holders during the year
ended April 30, 1998.

                                   13

<PAGE>

                                 PART II

Item 5.   MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS

Until March of 1994, the Company's Common Stock was traded on the Vancouver
Stock Exchange.  In January of 1996, the Company filed for a voluntary
delisting from the Vancouver Stock Exchange and activated its symbol, TNAV,
on the Over the Counter Bulletin Board. The following table sets forth the
trading history on the Over the Counter Bulletin Board.

1996 QUARTER               HIGH BID     LOW BID     HIGH ASK     LOW ASK
------------               --------     -------     --------     -------


First (1/1 - 3/30)          $0.3125    $0.21875     $0.37500    $0.25000
Second (4/1 - 6/30)          0.3125     0.21875      0.37500     0.25000
Third (7/1 - 9/30)           0.3125     0.12500      0.43750     0.31250
Fourth (10/1 - 12/31)        0.3125     0.25000      0.43750     0.28125

1997 QUARTER
------------

First (1/1 - 3/30)         $0.34375    $0.18750     $0.50000    $0.25000
Second (4/1 - 6/30)         0.37500     0.20000      0.43750     0.25000
Third (7/1 - 9/30)          0.87500     0.10000      1.00000     0.18750
Fourth (10/1 - 12/31)       1.00000     0.37500      1.03125     0.59375

1998 QUARTER
------------

First (1/1 - 3/30)         $0.62500    $0.25000     $0.68750    $0.28125
Second (4/1 - 6/30)         0.68750     0.25000      0.78000     0.34375
COMMON STOCK

The authorized Common Stock of the Company consists of 100,000,000 shares
of Common Stock without par value.  At April 30, 1998, there were
18,225,673 shares issued and outstanding.

The Common Stock has full voting rights on all matters for which
shareholder approval is required or permitted.

The Common Stock does not possess any preferential right to dividends and
therefore is entitled to dividends only when and if dividends on such
Common Stock are declared by the Board of Directors, and only from funds
legally available therefore.

The holders of common stock have equal ratable rights to dividends from
funds legally available therefore, when, as and if declared by the Board of
Directors of the Company; are entitled to shares ratably in all of the
assets of the Company available for distribution to holders of Common Stock
upon liquidation, dissolution or winding up of the affairs of the Company;
do not have preemptive, subscription or conversion rights and there are no
redemption or sinking fund provisions applicable thereto. Such shares are
entitled to one vote per share on all matters which stockholders may vote
on at all meetings of shareholders.  All shares of common stock are fully
paid and nonassessable.

The holders of shares of common stock of the Company do not have cumulative
voting rights.  Thus, the holders of more than 50% of such outstanding
shares, voting for the election of directors can elect all of the directors
to be elected, and in such event, the holders of the remaining shares will
not be able to elect any of the Company's directors.

                                   14

<PAGE>

HOLDERS

As of April 30, 1998, there were approximately 903 registered holders of
the Company's Common Stock.

DIVIDEND POLICY

The Company has never declared or paid cash dividends on its Common Stock,
and may elect to retain its net income in the future to increase its
capital base.  The Company does not currently anticipate paying cash
dividends on its Common Stock in the foreseeable future.

STOCK FOR LOTS CONVERSION

During the year end April 30, 1998, the Company carried out a Private
Placement to existing shareholders for 4,000 square foot residential lots
at the Hills of Bajamar.  The cash price per lot was $10,000 and the stock
price per lot was 5,000 shares of Common Stock at a value of $2.00 per
share.  A total of 12 shareholders subscribed to the Private Placement for
a total 16 lots, totaling 80,000 shares of Common Stock.

Once the master plan for the Hills of Bajamar is completed, a plot
selection will be sent out to all of the participants in the Private
Placement, on a first-come first-served basis. Once the participants have
made a lot selection, their Common Stock will be cancelled.

STOCK ISSUED FOR SERVICES

In an effort to preserve cash, the Company issued a total of approximately
1.9 million shares of Common Stock in the Company for services for the year
end April 30, 1998.  Services included full-time and part-time employees,
outside consultants, marketing, architects, accounting and legal services,
web site design and internet marketing.

ESCROW SHARES

In April of 1998, 749,483 Escrow Shares held by the Company's transfer
agent, Montreal Trust, were cancelled, thereby reducing the total issued
and outstanding by 749,483 shares.  The Escrow Shares were issued in 1988
as Performance Shares, pursuant to Canadian law.

STOCK OPTIONS GRANTED AND EXERCISED DURING THE YEAR

In December of 1996, 975,000 Employee Stock Options were issued to officers
and Directors to purchase Common Stock in the Company at a price of $.25
per share, expiring December 31, 1999.  For the twelve months ended April
30, 1998, 100,000 Employee Stock Options had been exercised at $.25 per
share.

For the year ended April 30, 1998 a total of 450,000 Employee Stock Options
were issued to officers to purchase Common Stock in the Company at a price
of $.50 per share and expiring December 31, 1999.  For the twelve months
ended April 30, 1998, no Employee Stock Options had been exercised at $.50
per share.

                                   15

<PAGE>

WARRANTS GRANTED AND EXERCISED DURING THE YEAR

In 1996,the Company carried out a private placement of 1,945,741 units of
the Company at a price of $0.285 per unit for gross proceeds of $521,971. 
Each unit consists of one common share in the capital of the Company and a
two year non-transferable share purchase warrant.  Each non-transferable
share purchase warrant entitles the holder thereof to purchase one common
share in the capital of the Company at any time during the first six months
of the term of the warrant at a price of $0.285, at any time during the
second six months of the term of the warrant at a price of $0.40, at any
time during the third six months of the term of the warrant at a price of
$0.55 or at any time during the final six months of the term of the warrant
at a price of $0.75.  The term of the warrant commenced on the October 30,
1996. As of April 30, 1998, a total of 832,167 warrants had been exercised,
leaving 1,115,909 warrants unexercised.

In 1996,the Company also carried out a private placement of 968,020 units
of the Company at a price of $0.35 per unit for gross proceeds of $338,807. 
Each unit consists of one common share in the capital of the Company and a
two year non-transferable share purchase warrant.  Each non-transferable
share purchase warrant entitles the holder thereof to purchase one common
share in the capital of the Company at any time during the first year of
the term of the warrant at a price of $0.40 or at any time during the final
year of the term of the warrant at a price of $0.50.  The term of the
warrant commenced on the October 30, 1996.  As of April 30, 1998, a total
of 775,073 warrants had been exercised, leaving 192,947 unexercised.

RECENT SALES OF SECURITIES

During the year ended April 30, 1998, the Company carried out a private
placement of 1,601,777 units of the Company for gross proceeds of
approximately $650,000.  Each unit consists of one common share in the
capital of the Company and a one year non-transferable share purchase
warrant for a term of one year.  Each non-transferable share purchase
warrant entitles the holder thereof to purchase one common share in the
capital of the Company at any time during the year of the term of the
warrant at an average price of approximately $.80 per share.  No warrants
for this private placement have been exercised and approximately 50% of the
warrants expire in August 1998.  The shares issued pursuant to this private
placement are restricted securities as defined by Rule 144.

SUBSEQUENT EVENT

In July of 1998, the Company carried out a single issuer private placement
for 500,000 shares at a price of $.35 per share.  No warrants were attached
to the placement.  The shares issued pursuant to this private placement are
restricted securities as defined by Rule 144.

VOLATILTIY OF STOCK PRICE

Sales of substantial amounts of shares of Common Stock in the public market
or the perception that those sales could occur could adversely affect the
market price of the Common Stock and the Company's ability to raise
additional funds in the future in the capital markets.  The market price of
the Common Stock could be subject to significant fluctuations in response
to various factors and events, including the liquidity of the market for
the shares of the Common Stock, variations in the Company's operating
results, change in earnings

                                   16

<PAGE>

estimates by the Company and/or securities analysts, publicity regarding
the industry or the Company and the adoption of new statutes or regulations
in any the Company's particular industries.  In addition, the stock market
in recent years has experienced broad price and volume fluctuations that
often have been unrelated to the operating performance of particular
companies.  These market fluctuations may adversely affect the market price
of the shares of Common Stock.

CONTROL BY DIRECTORS AND EXECUTIVE OFFICERS

As of April 30, 1998, the Company's Directors and executive officers and
their affiliates beneficially owned approximately 20% of the Company's
outstanding shares of Common Stock (exclusive of unexercised options to
purchase shares of Common Stock).  See Item 12  "Security Ownership of
Certain Beneficial Owners  and Management."  As a result, these
stockholders, acting together, would be able to significantly influence
many matters requiring approval by the stockholders of the Company,
including the election of Directors. These shares are available for sale in
accordance with Rule 144. Rule 144 provides, in essence, that a shareholder
who is an affiliate of the Company, after holding restricted securities for
a period of one year, may every three months, sell them in an unsolicited
brokerage transaction in an amount not to exceed 1% of the Company's
outstanding common shares, or the average weekly trading volume, if any,
during the four weeks preceding the sale.  Non-affiliated shareholders
holding restricted securities are not subject to the 1% limitation and may
sell unlimited amounts of shares they own, under certain circumstances,
after a one year holding period.  If a substantial part of the shares,
which can be sold were so sold, the price of the Company's Common Stock
might be adversely affected.

Item 6.   SELECTED FINANCIAL DATA

The following selected financial data has been derived from the audited
consolidated financial statements of the Company and its subsidiaries as of
and for the fiscal years ending April 30, 1997 and 1998.  The data set
forth below should be read in conjunction with the consolidated financial
statements and related notes thereto included in Item 14, "Exhibits,
Financial Statement Schedules and Reports on Form 8-K Financial
Statements," along with Item 7, "Management's Discussion and Analysis of
Financial Condition and Results of Operations."

CONSOLIDATED STATEMENTS OF OPERATIONS


                                                   TWELVE MONTHS ENDED
                                               APR 30, 1998    APR 30, 1997
                                               ------------    ------------
REVENUES:
---------
  Revenues                                       $  434,413     $   77,484 
  Minority Interest                                                 13,597 
  Gain on Sale of Assets                          2,880,000      3,726,917 
                                                 ----------     ---------- 
    Total Revenues                                3,314,413      3,817,998 


EXPENSES:
---------
  General and Administrative Expenses             1,985,850        659,591 
                                                 ----------     ---------- 
    Income Before Unusual Items                   1,328,563      3,158,407 
                                                 ----------     ---------- 

UNUSUAL ITEMS:
  Gain (Loss) on Debt Settlement                                   23,819 
  Gain on Sale of MRI Medical
   Diagnostics Inc. shares
  Write-Down of Investments                        (530,173)      (100,000)
                                                 ----------     ---------- 
    Total Unusual Items                            (530,173)       (76,181)
                                                 ----------     ---------- 

  Minority Interest                                                      - 

Income Before Income Taxes                          798,390      3,082,226 

  Income Taxes                                            -              - 

                                                 ----------     ---------- 
Net Income                                       $  798,390     $3,082,226 
                                                 ==========     ========== 


Earnings per share-Fully Diluted                 $    0.046     $    0.220 
                                                 ==========     ========== 


Item 7.   MANAGEMENT'S DISCUSSION AND ANAYSIS OF RESULTS OF OPERATIONS AND
          FINANCIAL CONDITION

OVERVIEW

Greater San Diego Imaging Center is the magnetic resonance imaging ("MRI")
facility the company acquired in 1997. This center has provided services to
the San Diego medical community since 1990. From 1997 to 1998, the facility
gross increased by over 50%. The increase is based on aggressive new
marketing following on the addition of a $75,000 "open gap" upgrade, which
allowed the facility to cater to overweight and large patients as well as
claustrophobic patients that could not tolerate the very closed other units
in San Diego.

Another public company, First Colonial Ventures, Ltd., had contracted for
a one third ownership position in the center and was to pay the company
$350,000 for that percentage. However, after paying in excess of $100,000
of the contracted amount, First Colonial defaulted on its contract and the
company noticed them of

                                   17

<PAGE>

the default and pursuant to the default provision, terminated their rights
and retained the one third position and cash paid to date as liquidated
damages.

Greater San Diego Imaging Center under the direction of its medical
director, Jerry J. Parker, M.D., is looking to expand its operations during
the second half of 1998 by adding additional diagnostic services.

Bajamar Ocean Front Resort located in Baja California, Mexico on the
Pacific Ocean is the subject of a June 1996 escrow established with Stewart
Title Company of Houston, Texas. The escrow was opened with Desarrollos
Urbanos Baja California, S.A., which is half owned by Grupo Situr, S.A.,
the largest Mexican resort development company in Mexico. Subsequent to the
opening of the escrow, Grupo Siturs financial problems grew into a national
issue and the Mexican government became involved with the banks to attempt
to work out the overall issues. The property at Bajamar, which is the
subject of our contract is only a small fraction of their holdings, however
all sales were on hold until a complete workout plan was effected.
Consequently, we have retained our escrow position and patiently waited for
the resolve, which we believe to be very close to occuring.

Our escrow includes the existing 27 holes of golf, the existing 81 room
hotel, the clubhouse, tennis courts, land and plans for an additional 102
room hotel and conference center, land and plans for an additional 9 holes
of golf and approximately 300 acres of developed land for residential
housing adjacent to the golf courses. The closing of this escrow also is
important to the timeshare/vacation ownership program that is located on 
land separate from this escrow, however located in the Bajamar resort. This
328 unit program is dependent on its relationship with the adjacent golf
courses and hotel and we have delayed the start of the timeshares in
anticipation of our escrow closing and thereby guaranteeing the
availability of these amenities.

The Players Club at Bajamar,a vacation ownership (timeshare) complex will
encompass 328 units located on the golf course and facing the ocean on a
16-acre site purchased by the Company in December of 1996. While we have
been waiting for the above stated escrow to close, work has continued on
the plans for the structures as well as all of the marketing materials. The
Company has also begun accepting preliminary sales of the timeshares, which
the Company anticipates will be in great demand, since there is no real
competition in the region, certainly not on a golf course and on the ocean
only 50 miles from San Diego.

Activity Link, Inc., is a developer of software that allows hotels and
timeshare facilities to direct link with activities located in their area
for the benefit of the guests residing at their various properties. The
Company through its wholly owned subsidiary, Tri-National Resorts
Management, Inc., acquired a 85% interest in Activity Link for cash and
stock in January of 1998. The initial beta site for development is located
in Hawaii where three sites located with a major timeshare developer will
begin during late 1998. Microsoft has agreed to help provide the software
necessary to develop the main server for connecting the entire system. The
Activity Link personnel have established a large base of potential
activities prepared to participate in the program. The program will allow
a guest to stop at a concierge desk and on the spot confirm reservations
for any of the activities already affiliated, with an interactive computer
link provided by Activity Link. The company will receive a fee of $2.00 for
every transaction posted. In Hawaii alone there are 20,000,000 visitors per
year.

Alpine Gardens East is a Nevada corporation created in January 1998 to
focus on assisted. The companys first project is in Youngtown, Arizona just
north of

                                   18

<PAGE>

Phoenix and adjacent to Sun City. This facility will be a 100 unit complex.
The company closed on the land in June and expects to begin construction in
September of 1998. Financing for this development is likely to be through
FHA, however there is a significant amount of financing available for
senior housing and each of the 10-12 projects we are currently assessing
may be financed through different means. The company is also looking at
existing sites for acquisition, also for assisted living. The template for
future facilities would appear to be approximately 100 units with dining
and kitchen facilities and in the $10,000,000 to $14,000,000 range, subject
to the geographic area.

Toronto hotel and condominiums was a project previously announced and was
in the process of the due diligence process, when the seller Mr. Ron
Hibbard suddenly passed away. In addition to the loss of a wonderful human
being, the company found itself without a seller and potentially very
involved estate issues. Mr. Hibbards widow did not wish to proceed with the
contract as had been executed. Consequently, the company honored her desire
and backed away from the possible transaction. Mr. Hibbards passing also
eliminated the ability of the acquisition of his company, Alpine Herbs by
the MRI Medical Diagnostics, Inc., company, as will be discussed below. The
company was disappointed by the reversal of this opportunity, however
decided to move forward instead with its efforts in the Assisted Living
Facility arena as discussed in the previous  paragraph.

Las Vegas Property was discussed a year ago as a possible acquisition for
the company, as a means of giving the company a presence in the gaming
industry. The significance of this was to demonstrate to the Mexican
government our involvement in the casino field in the event that casino
gaming was approved in Mexico. The property that we were attempting to
acquire had a gaming license so it was appropriate for our purposes,
subject to the final details. During our negotiations the seller entered
his company into bankruptcy and it would have required a tremendous amount
of our time and resources to attempt to rescue it. Subsequently the company
determined to cancel its first right of refusal and allow the seller to
proceed on his own. As was the case with the Toronto property, when that
opportunity disappeared, we had the ability to replace it with an even more
appropriate opportunity. In this instance, the company moved forward with
the Activity Link project in place of the Las Vegas opportunity.

New England Surety is a bonding company that is providing nine month surety
bonds to cover principal and interest for lenders that are providing the
company with funds necessary to proceed with the development of the
timeshare program, as well as operational requirements. The program gives
a 10% per annum interest rate to the institutional and accredited lenders
in addition to up to 20% in costs for the bonds and cost of securing the
funding. While this would appear to be expensive the company believes it to
be a good alternative to the usual private placements that would typically
be used to provide these types of funds. If the market price of our stock
was at a much higher level then the decision would probably be different.
However, for the time being this appears to be a viable and less dilutive
approach. The company is required to collaterize the bond with 187 acres of
its Hills of Bajamar property for the first $8,000,000 of loans and has
also been approved for an additional $15,000,000 bond subject to utilizing
the first section of 41 units of completed timeshares as collateral for
that amount.

Private Placements have occurred during this period as discussed in the
notes to the financials. These placements were necessary to carry us
through while the bond program was being developed. Typically a private
placement is at a discount to the market price on the day of purchase,
since the stock acquired has a one year hold period associated with it. It
also usually requires a warrant for

                                   19

<PAGE>

additional shares. During the last 12 months the market price of the
companys shares has been well under a $1.00 and consequently would require
significant dilution if we attempted to raise the same $8,000,000 as is
being done with the bond program.

Netrom, Inc., a California publicly traded company that purchased 50 acres
of the Hills of Bajamar property for $3,000,000 of their stock based on
$60,000 per acre. The original purpose of their purchase was to establish
a studio facility for video production to benefit as Twentieth Century Fox
did with their film production of the "Titantic", from the economic rewards
afforded in Mexico today. Subsequently, they decided to expand their
involvement by acquiring an additional 200 acres, which was originally
contracted with Baja Promociones S.A de C.V. for construction of a auto
racing facility. Baja Promociones assigned their right title and interest
to Netrom on terms agreed between themselves and subsequently approved by
the company. Netrom them proceeded to contract directly with the company to
complete the 200 acre acquisition for $4,200,000, which was paid in full by
deliverance of 4,200,000 shares of their common stock.

Netrom and the company have since entered into a joint venture agreement to
develop a family sports destination resort on the Hills of Bajamar. Netrom
will contribute the 250 acres recently acquired and the company will
contribute an additional 250 acres thereby creating a potential 500 acre
resort. Plans and designs are currently under way for the facility that
will bring major joint venture partners from the sports world that wish to
participate . The facility is envisioned to include man made snow board
hills, lakes for water sports, other board sports taught by professionals,
executive style golf course for teaching golf to beginners, race tracks for
cars and bike racing and its own hotel and spas for a family environment.

International Health Networks/MRI Medical Diagnostics, Inc., is the
combining of the entire medical campus programs for Mexico that the company
has envisioned for the past several years as the magnet for the retiree
market in Baja California, Mexico. As discussed earlier Ron Hibbard who
passed away was also purchasing the shell company known as MRI-Medical
Diagnostics, Inc., which the company retains an interest in. When Mr.
Hibbard died his concept of franchising Alpine Herbs utilizing the MRI-
Medical shell died with him. Upon mutual agreement the parties agreed to
dissolve the original transaction and return MRI-Medical to its original
state. At that time International Health Networks, "IHN", came forward and
agreed to merge with MRI-Medical with the intent of utilizing the shell for
the medical programs that makes up their company. IHN is headed up by three
prominent doctors, all of whom are also shareholders of Tri-National,
including Dr. Jerry Parker, who is also a director of the company.  They
had to move quickly to begin bringing in funds to clear the liabilities
needed to keep the shell from being removed from trading for lack of
filings with the SEC and accounting requirements as well as fees due the
transfer agent.

The medical campus is to be built on Hills of Bajamar property contracted
for by IHN in 1997. The agreement called for 150 acres at the south end of
the property at a price of $25,000 per acre and an option for an additional
100 acres at $60,000 per acre for 3 years. The company retained the right
to build all required facilities on the combined 250 acres and to maintain
a property management contract as well. The campus is to include an acute
care hospital associated with an recognized U.S. provider, a medical school
complete with dormitories, class rooms and auditorium, medical exhibition
center, R & D facilities for pharmaceutical industry and facilities for
long term care combined with anti-aging and wellness programs. This campus
is important not

                                   20

<PAGE>

only to the region, but to the Company's desire to create a retirement
mecca on its properties.

Chino Valley Bank Lawsuit and subsequent jury award, has been addressed in
the financial notes. After five years of involved history and complicated
procedural issues and machinations we finally arrived at a jury trial. The
trial against Chino Valley Bank, now known as Citizens Business Bank,
publicly traded on the American Stock Exchange, came to a head after five
weeks of testimony with a verdict of guilty of fraud against the bank, as
well as deceit and intentional misrepresentation. They soon followed with
an award of close to $5,000,000 for punitive and compensatory damages plus
interest from 1993 to May 7th, 1998. Interest began accruing at the rate of
10%, post judgement, and will continue to accrue until the judgement is
paid. The bank has the right to appeal until August 17, 1998. In the event
that they decide to file their appeal, they will be required to immediately
file a bond equal to one and one-half times the judgement of approximately
$7,500,000. In the event of an appeal, the company then has the right to
cross appeal relative to additional damages not allowed by the Judge during
the trial, which damages exceed the award already received.

Summary of May 1, 1998 to April 30, 1999 targets and plans includes
additional acquisitions and development in the assisted living facility
business, as well as related type facilities to provide current profits.
The company expects to deliver a significant number of timeshare units,
accompanied by the appropriate earnings, in addition to the earnings
associated with the existing golf and hotel properties at Bajamar, which
the company anticipates closing on prior to the year end. We will continue
to seek opportunities for growth, which will be announced from time to time
as is required. However, all announcements subject to completion of
appropriate due diligence, has to be viewed as only a 50-50 chance of
developing into an ongoing business for the Company.

The same is to be said for earnings projections, as is evidenced by this
year, where reality meets actual. The projections assumed the closing of
the Bajamar golf and hotel property and the associated $.20 plus earnings
per share it would have brought to our bottom line. It did not occur during
the fiscal year and the actual earnings were dramatically affected. We are
now again projecting the closing for this coming fiscal year and the
accompanying earnings.

Our target for attaining a NASDAQ listing remains high on our list and we
intend to do all necessary to succeed in that effort. The listing brings us
up to an entirely different level in the perception of the company by
investors, acquisition candidates, employee candidates and the
institutional market at large. This is especially critical when addressing
funding sources relative to our major capital requirements for our joint
ventures, acquisitions or just basic equity versus debt analysis.

The coming year should be the year for the Company's efforts to finally
crystallize and reward us all with a sound and growing investment.

Item 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements and the Independent Auditor's Report are listed at
Item 14 and are included beginning on Page F-1.

Item 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
          FINANCIAL DISCLOSURE

None.

                                   21

<PAGE>

                                PART III

Item 10.  DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT

INDEMNIFICATION OF DIRECTORS AND OFFICERS

The By-Laws of the Company provide for indemnification of officers and
directors.  The specific provision of the By-Laws related to such
indemnification is as follows:

PART 19

INDEMNITY AND PROTECTION
DIRECTORS, OFFICERS AND EMPLOYEES

19.1 Subject to the provisions of the Company Act, the Directors shall
cause the Company to indemnify a Director or former Director of the Company
and the Directors may cause the Company to the Company is or was a
shareholder the heirs or personal representatives of any such person
against all costs, charges and judgment, actually and reasonably incurred
by him or them including an amount paid to settle an action or satisfy a
judgment in a civil, criminal or administrative action or proceeding to
which he is or they are made a party by reason of his being or having been
a Director of the Company or a director of any such corporation.  Each
Director of the Company on being elected or appointed shall be deemed to
have contracted with the Company on the terms of the foregoing indemnity.

19.2 Subject to the provisions of the Company Act, the Directors may cause
the Company to indemnify any officer, employee or agent of the Company or
of a corporation of which the Company is or was a shareholder
(notwithstanding that he is also a Director) and the heirs or personal
representatives against all costs, charges and expenses whatsoever incurred
by him or them and resulting from his acting as of officer, employee or
agent of the Company (if he shall not be a full time employee of the
Company and notwithstanding that he is also a Director), and his heirs and
legal representatives against all costs, charges and expenses whatsoever
incurred by him or them and Secretary by the Company Act or these Articles
and each such Secretary and Assistant Secretary shall on being appointed be
deemed to have contracted with the Company on the terms of the foregoing
indemnity.

19.3 The failure of a Director or officer of the Company to comply with the
provisions of the Company Act or of the Memorandum or these Articles shall
not invalidate any indemnity to which he is entitled under this Part.

19.4 The Directors may cause the Company to purchase and maintain insurance
for the benefit of any person who is or was serving as a Director, officer,
employee or agent of any corporation of which the Company is or was a
shareholder and his heirs or personal representatives against any liability
incurred by him as such Director, officer, employee or agent.

                                   22

<PAGE>

OFFICERS AND DIRECTORS

The following table sets forth certain information regarding the executive 
officers and Directors of the Company as of April 30, 1998.

                              POSITIONS HELD
NAME                   AGE    WITH THE CORPORATION          SINCE
------                 ---    ---------------------         -----
Michael A. Sunstein    56     Director, CEO &               1989
                              President
Gilbert Fuentes        65     Chief Financial Officer       1996
Paul Goss              55     V.P. Legal Counsel            1996
Shane Kennedy          34     Director                      1994
Arthur Lilly           66     Director                      1995
Dr. Jerry Parker       61     V.P. Medical Development      1996
Jay Pasternak          41     Director                      1994
Dr. Robert Rosen       51     Director                      1989
Jason Sunstein         27     Secretary,                    1989
                              V.P. Investor Relations
Ted Takacs             51     Director                      1994
James Vernes           50     V.P. Real Estate Sales        1998

MICHAEL A. SUNSTEIN.  Mr. Sunstein has been the Chief Executive Officer and
a Director of the Company since 1989.  Prior to joining the Company, Mr.
Sunstein spent 15 years in the housing industry, primarily with Kaufman and
Broad Homes, Inc., a New York Stock Exchange listed company, where he
served as President of the Midwestern Division and acting President of the
East Coast Division.  In those capacities he was responsible for the
financial, building and delivery of approximately $30,000,000 in housing
sales annually.  He resigned from Kaufman and Broad and started his own
firm in the building and materials and single-family home industry in
Michigan.  Mr. Sunstein built and sold more than 200 homes prior to
founding Tri-National Development Corp. in 1989.

GILBERT FUENTES.  Mr. Fuentes has been the Chief Financial Officer since
1996.  He has 25 years of experience in the banking industry.  He has held
the positions of President and Chief Executive Officer, Senior Vice
President, Chief Financial Officer, Treasurer and Comptroller for multi-
billion dollar banking organizations.  He has authored several articles in
the fields of finance and cash management, as well as the 1992 and 1993
Economic Forecast of the United States and Mexico, published by the U.S.
Mexico Foundation.  Mr. Fuentes has developed innovative cash management
systems, investment strategies and strategic financial plans that resulted
in millions of dollars of incremental income for his former employers.

PAUL G. GOSS.  Mr. Goss has been a Vice President and General Counsel to
the Company since September of 1996.  Mr. Goss has been the Executive Vice
President and General Counsel for One Capital Corporation, a private
merchant bank with offices in New York and Denver since 1990.  Prior to
joining One Capital Corporation, Mr. Goss was engaged in the private
practice of law in Denver, Colorado with a concentration in real estate,
corporate and securities law.  He is a member of the Denver and Colorado
Bar Associations.  Mr. Goss has a Masters in Business Administration in
addition to his law degree from the University of Denver.

                                   23

<PAGE>

SHANE KENNEDY.  Mr. Kennedy has been a Director of the Company since 1994. 
Mr. Kennedy has been an insurance adjuster for the Insurance Corporation of
British Columbia since 1990 and is also President of Northern Trader
Incorporated, which is an import and export company.  He is Canadian
citizen.  Mr. Kennedy received his B.A. degree in Political Science from
the University of British Columbia.

ARTHUR W. LILLY.  Mr. Lilly has been a Director of the Company since 1995. 
Since January 1, 1995, he has been and is currently Vice President of
Finance and Chief Financial Officer of Canlan Investment Corp.  From 1968
to 1994, Mr. Lilly was a partner in the accounting firm of Lilly
Johanneson, which served as the Company's auditors from 1988 to 1996.  Mr.
Lilly, a Chartered Accountant, has a Bachelor of Commerce degree from the
University of British Columbia.

DR. JACOB J. PARKER.  Dr. Parker is currently Medical Director and Director
of Radiology for several MRI centers and breast imaging centers in Northern
California since 1973.  He was previously Chief of Radiology and Nuclear
Medicine at Ross General Hospital, Clinical Professor of Radiology at the
University of California, Irvine, and Instructor of Radiology at the
University of Southern California Medical Center from 1970 to 1988. 
Dr.Parker received his M.D. from the University of Manitoba, Canada in
1962.

Jay Pasternak.  Mr. Pasternak has been a Director of the Company since
1994.  He is a Canadian citizen who has spent the last ten years in the
private practice of mental health counseling at the Denwood Institute in
Toronto, Canada, Ontario Hydro, Futures Ontario and the Hubar Memorial
Hospital, all Canadian government facilities.  Mr. Pasternak is a C.L.S.
graduate from McMaster University in Hamilton, Ontario (1994) and a Human
Services Counselor graduate from George Brown University 1996.

DR. ROBERT R. ROSEN.  Dr. Rosen has been a Director of the Company since
1989. Dr. Rosen is an opthamologist and is presently Executive Director of
MAC-IPA, a 47 physician multi-specialty IPA in Montgomery County,
Tennessee, where he is responsible for policy, long range strategic
planning, physician recruitment, contracting and utilization review.  From
1993 to 1995 he was Medical Director of the MidSouth Eye Center in
Clarksville, Tennessee, a private practice, and Medical Director of EYE PA,
a nationwide integrated delivery system for eyecare, a subsidiary of
EYECORP/PRG.  From 1992 to 1993 he was Associate Medical Director of East
County Physician Medical Group (IPA) in San Diego, California and from 1977
to 1993 he was President and Medical Director of Eye Care Professionals in
San Diego, a single specialty medical corporation.  He was also Medical
Director of the Pearle Eye Foundation from 1987 to 1993, a non-profit
corporation and he also served as Medical Director for Pearle Visioncare,
a California Knox-Keane HMO from 1986 until 1993. Dr. Rosen was Assistant
Clinical
Professor of Opthamology at the University of California, San Diego from
1977 until 1993.

JASON A. SUNSTEIN.  Mr. Sunstein has been Vice President of Investor
Relations for the Company since 1989 and for MRI Medical Diagnostics, Inc.
since 1992.  He attended San Diego State University where he majored in
Finance and is a licensed securities broker.  He is the son of Michael
Sunstein.

                                   24

<PAGE>

THEODORE TAKACS.  Mr. Takacs has been a Director of the Company since 1994. 
Mr. Takacs is a Canadian citizen who for the last ten years has been
engaged in labor relations consulting and negotiation.  He is presently a
Constituency Assistant to the Honorable Bill Barlee in Osoyoos, British
Columbia where he also owns and operates an orchard.

JAMES J. VERNES.  Mr. Vernes joined the Company in 1998 as Vice President
of Marketing and Sales.  He is one of the foremost authorities on the sales
and marketing of vacation ownership (timeshare) projects.  He will be
responsible for the marketing and sales of the Company's vacation ownership
development at Bajamar.  He has orchestrated over $215 million in sales and
has been the Director for some of the largest and most successful projects
in Canada, Mexico and the United States.  He has created an innovative
approach to sales and marketing that has established such records as $21
million in sales in one day and a total of $34.5 million in 6 months at a
total cost of sales of 25%.  Mr. Vernes' techniques and philosophies are at
the zenith of the industry.  By networking sales through the real estate
brokerage communities, he has proven that superior results can be achieved
in a highly professional, sophisticated manner.  Mr. Vernes will guide the
vacation ownership development at Bajamar through all phases from the
design and development to pricing, sales and marketing.  His consulting,
marketing and sales expertise will provide the development with the widest
market for its product and play an instrumental role in the project's long
term success.

COMPENSATON OF DIRECTORS

The Board of Directors of the Company currently serve without compensation.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires the Company's executive officers
and directors, and persons who own more than ten percent of a registered
class of the Company's equity securities (collectively, "Reporting
Persons"), to file reports on Form 3,4 and 5 of stock ownership and changes
in ownership with the Securities and Exchange Commission.  Reporting
Persons are required to furnish the Company with copies of all forms that
they file.  Based on the Company's review of copies of Forms 3,4 and 5, and
amendments thereto, received by the Company for the year ended April 30,
1998, or written representations from certain Reporting Persons that no
Forms 5 were required to be filed by those persons, the Company believes
that during fiscal year 1997 all filing requirements were complied with by
the Reporting Persons.

ITEM 11.  EXECUTIVE COMPENSATION

Currently, all officers and Directors of Tri-National Development Corp.
serve with minimum compensation and have so served since they have joined
the Company.

Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

SECURITY OWNERSHIP OF DIRECTORS AND NAMED EXECUTIVE OFFICERS

The following table sets forth certain information regarding beneficial
ownership of the Common Stock as of July 31, 1998 (based on a total of
18,434,423 outstanding shares of Common Stock) by (I) each of the Company's
Directors, (II) each of the Named Executive Officers and (III) all
executive officers and directors as a group.  Except as otherwise
indicated, the Company

                                   25

<PAGE>

believes the persons named in the table have sole voting and investment
power with respect to all shares beneficially owned, subject to community
property laws where applicable.

Amounts and percentages listed below does not include warrants and options
(2).

NAME AND ADDRESS OF       SHARES BENEFICIALLY            PERCENTAGE
BENEFICIAL OWNER (1)              OWNED              BENEFICIALLY OWNED
-------------------       -------------------        ------------------
Jerry Parker, M.D.               1,700,857                 %0.09226
Michael A. Sunstein              1,454,222                  0.07888
Paul G. Goss                       200,000                  0.01084
Jason Sunstein                     100,000                  0.00542
Jay Pasternak                       71,287                  0.00386
Dr. Robert Rosen                    40,000                  0.00216
Arthur Lilly                        36,000                  0.00195
Gilbert Fuentes                     30,000                  0.00162
James Vernes                        15,000                  0.00081
Shane Kennedy                        1,200                  0.00006

(1)  Except where otherwise noted, the address of the Company's directors,
     executive officers and selling shareholders is c/o Tri-National
     Development Corp., 480 Camino Del Rio S., Suite 140, San Diego,
     California 92108.

(2)  In December of 1996, 975,000 Employee Stock Options were issued to
     officers and Directors to purchase Common Stock in the Company at a
     price of $.25 per share, expiring December 31, 1999.  For the twelve
     months ended April 30, 1998, 100,000 Employee Stock Options had been
     exercised at $.25 per share.

     For the year ended April 30, 1998 a total of 450,000 Employee Stock
     Options were issued to officers to purchase Common Stock in the
     Company at a price of $.50 per share and expiring December 31, 1999. 
     For the twelve months ended April 30, 1998, no Employee Stock Options
     had been exercised at $.50 per share.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

As of July 31, 1998, no person known to the Company was a beneficial owner
of more than five percent of the Company's Common Stock.

Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None.

                                   26

<PAGE>

                                 PART IV

Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form 8-K

The following documents are filed as a part of the report:

(a)  FINANCIAL STATEMENTS.  The following financial statements of the
Registrant and the Report of Independent Public Accountants therein are
filed as part of this Report on Form 10-KSB:

     Independent Auditors' Report                           F-1
     Consolidated Balance Sheets                            F-2
     Consolidated Statements of Operations                  F-3
     Consolidated Statements of Shareholders' Equity        F-4
     Consolidated Statements Cash Flows                     F-5
     Notes to Consolidated Financial Statements             F-6

(b)  REPORTS ON FORM 8-K.  For the year end April 30, 1998, no reports on
Form 8-K were filed by the Company.

(c)  EXHIBITS. The following exhibits are filed as a part of, or
incorported by reference into this report on Form 10-KSB:

EXHIBIT
NUMBER              DESCRIPTION
------              --------------------------------------------------
10.1                NetRom, Inc. Asset Purchase Agreement for 50 acres
10.2                NetRom, Inc. Assignment from Baja Promociones
10.3                NetRom, Inc. Asset Purchase Agreement for 200 acres
10.4                Activity Link, Inc. Asset Purchase Agreement
10.5                International Health Networks, Inc. Asset Purchase
                    Agreement
27.1                Financial Data Schedule



                                   27

<PAGE>

                     Independent Auditor's Report
                     ----------------------------



We have audited the accompanying balance sheets of Tri-National Development
Corporation as of April 30,  1997 and 1998, and the related statements of
income, retained earnings, cash flows and stockholders' equity for the
years then ended.  These financial statements are the responsibility of the
Company's management.  Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Tri-National
Development Corporation as of (at) April 30,  1997 and 1998, and the
results of its operations and its cash flows for the years then ended in
conformity with generally accepted accounting principles.



Ludlow & Harrison
A CPA Corporation

July 30, 1998

                                   F-1

                                   28

<PAGE>

TRI-NATIONAL DEVELOPMENT CORPORATION
CONSOLIDATED BALANCE SHEETS

ASSETS:                                         APR 30, 1998  APR 30, 1997
-------                                         ------------  ------------
Current  Assets:
----------------
Cash & Cash Equivalents                          $    8,481     $   33,557 
U. S. Treasury Bills                                211,000              - 
Accounts Receivable                                 307,079        163,284 
Chino Bank Judgement Receivable (Note 2)          5,034,153              - 
Notes Receivable (Note 3)                                 -        239,332 
                                                 ----------     ---------- 
    Total Current Assets                          5,560,713        436,173 

Investments:
------------
NetRom, Inc. Convertible Preferred
 Stock (Note 4)                                   3,000,000 
NetRom, Inc. Common Stock (Note 10)               4,200,000 
MRI Medical Diagnostics, Inc. (Note 5)               20,050        496,994 
Hills of Bajamar (Note 6)                         3,723,661      3,841,661 
Plaza Resort Timeshares (Note 7)                 13,079,055     13,279,055 
Activity Link, Inc. (Note 8)                        110,264 
Assisted Living-Youngtown (Note 9)                3,568,000 
Assisted Living-San Marcos                           32,500 
                                                 ----------     ---------- 
    Total Investments                            27,733,529     17,617,710 
Notes Receivable-Baja Promocion
 Internacional (Note 10)                                  -      4,200,000 
Property, Furniture, and Equipment
 (Note 11)                                          637,062        674,555 
                                                 ----------     ---------- 
    Total Assets                                $33,931,304    $22,928,438 
                                                 ==========     ========== 

LIABILITIES AND STOCKHOLDERS' EQUITY:
-------------------------------------
Current Liabilities:
--------------------
Accounts Payable                                 $  354,463     $  227,313 
Chino Bank Judgement Legal Expenses
 Payable (Note 2)                                 1,762,000              - 
Loans Payable-Short Term (Note 12)                  689,201              - 
Notes Payable-Current Portion                       507,441          7,458 
                                                 ----------     ---------- 
    Total Current Liabilities                     3,313,105        234,771 

Notes Payable-Net of Current Portion
 (Note 13)                                        9,230,561     10,196,925 
Deferred Income - Chino Bank
 Judgement (Note 2)                               3,272,153 
Accrued Taxes on Income (Note 14)                         - 
                                                 ----------     ---------- 
    Total Liabilities                            15,815,820     10,196,925 
                                                 ----------     ---------- 


STOCKHOLDERS' EQUITY:
---------------------
Common Stock,no par value; authorized
 100,000,000; issued 18,225,673                   9,070,722      7,438,408 
Preferred Stock, $1 par value;
 authorized 10,100,000; issued 2,364,500          9,458,000      6,000,000 
Minority Interest                                         -        256,365 
Retained Earnings ( Deficit )                      (413,238)    (1,198,031)
                                                 ----------     ---------- 
    Total Stockholders' Equity                   18,115,484     12,496,742 
                                                 ----------     ---------- 


Total Liabilities and Stockholders' Equity      $33,931,304    $22,928,438 
                                                 ==========     ========== 


             See accompanying notes to financial statements.

                                   F-2

                                   29

<PAGE>

TRI-NATIONAL DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS


                                                   TWELVE MONTHS ENDED
                                               APR 30, 1998    APR 30, 1997
                                               ------------    ------------
REVENUES:
---------
  Revenues                                       $  434,413     $   77,484 
  Minority Interest                                                 13,597 
  Gain on Sale of Assets                          2,880,000      3,726,917 
                                                 ----------     ---------- 
    Total Revenues                                3,314,413      3,817,998 


EXPENSES:
---------
  General and Administrative Expenses             1,985,850        659,591 
                                                 ----------     ---------- 
    Income Before Unusual Items                   1,328,563      3,158,407 
                                                 ----------     ---------- 

UNUSUAL ITEMS:
  Gain (Loss) on Debt Settlement                                    23,819 
  Gain on Sale of MRI Medical
   Diagnostics Inc. shares
  Write-Down of Investments                        (530,173)      (100,000)
                                                 ----------     ---------- 
    Total Unusual Items                            (530,173)       (76,181)
                                                 ----------     ---------- 

  Minority Interest                                                      - 

Income Before Income Taxes                          798,390      3,082,226 

  Income Taxes                                            -              - 

                                                 ----------     ---------- 
Net Income                                       $  798,390     $3,082,226 
                                                 ==========     ========== 


Earnings per share-Fully Diluted                 $    0.046     $    0.220 
                                                 ==========     ========== 











             See accompanying notes to financial statements.

                                   F-3

                                   30

<PAGE>

TRI-NATIONAL DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY



<TABLE>
<CAPTION>
                                                                          RETAINED
                   PREFERRED      COMMON       TREASURY      MINORITY     EARNINGS        TOTAL
                     STOCK         STOCK         STOCK       INTEREST     (DEFICIT)       EQUITY
                     -----         -----         -----       --------      -------        ------
<S>                 <C>           <C>           <C>         <C>           <C>            <C>
BALANCE AS
 PREVIOUSLY REPORTED
 APRIL 30, 1997     $6,000,000    $7,720,982    $      -    $ (350,720)    $ (873,520)   $12,496,742 

CORRECTION OF
 ERROR**                     -      (282,574)          - **    607,085       (324,511)             -

                    ----------    ----------    --------    ----------     ----------     ---------- 
ADJUSTED BALANCES
 AT APRIL 30, 1997   6,000,000     7,438,408           -       256,365     (1,198,031)   $12,496,742
                    ----------    ----------    --------    ----------     ----------     ---------- 

ISSUANCE OF PREFERRED
 STOCK               3,458,000                                                             3,458,000 

ISSUANCE OF COMMON
 STOCK                             1,632,314                                               1,632,314 

SALE OF TREASURY STOCK                                 -                                           - 

MINORITY INTEREST                                             (256,365)       (13,597)      (269,962)

NET INCOME                                                                    798,390        798,390 

                    ----------    ----------    --------    ----------     ----------     ---------- 
BALANCE AT
 APRIL 30, 1998     $9,458,000    $9,070,722    $      -    $        -     $ (413,238)   $18,115,484 
                    ==========    ==========    ========    ==========     ==========     ========== 
</TABLE>
** PRIOR PERIOD CORRECTION OF ERROR DUE
   TO UNDERSTATEMENT OF MINORITY INTEREST





             See accompanying notes to financial statements.

                                   F-4

                                   31

<PAGE>

TRI-NATIONAL DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                   TWELVE MONTHS ENDED
                                               APR 30, 1998    APR 30, 1997
                                               ------------    ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
-------------------------------------
  Net Income from Operations                     $  798,390     $3,082,226 
  Depreciation and Amortization                      49,722         26,828 
  Accumulated Deficit & Minority Interest            12,612       (702,057)
  Net Changes in Operating Assets
  and Liabilities:
    Notes and Accounts Receivable                  (738,616)      (390,837)
    Prepaid Expenses                                                 3,794 
    Accounts Payable                                127,150       (376,100)
    Chino Bank Judgement Legal
    Expenses Payable                              1,762,000 
    Accrued Interest Payable                                       (36,145)
    Deferred Income - Chino Bank Judgement        3,272,153 
    Accrued Taxes on Income                               - 
                                                 ----------     ---------- 
      Net Cash Flow From
       Operating Activities                       5,283,411      1,607,709 
                                                 ----------     ---------- 

CASH FLOWS FROM INVESTING ACTIVITIES:
-------------------------------------
  Equipment, Furniture & Fixtures                   (12,229)      (674,555)
  Sale of Land to NetRom, Inc.                   (7,200,000)
  Sale of Land to Baja Promocion                                (4,200,000)
  MRI Medical Diagnostics Investment                                56,875 
  Grand Terrace Investment                                          80,188 
  GSDIC Investment                                                  15,035 
  U. S. Treasury Bills                             (211,000)
  Certificates of Deposit
  Activity Link, Inc.-Investment                   (110,264)
  Sale of Land-Hills of Bajamar                     118,000     (3,534,651)
  Youngtown Assisted Living-Investment           (3,568,000)
  San Marcos Assisted Living- Investment            (32,500)
  Plaza Timeshares-Investment                       200,000    (13,279,055)
                                                 ----------     ---------- 
      Net Cash Flow from
       Investing Activities                     (10,815,993)   (21,536,163)
                                                 ----------     ---------- 

CASH FLOWS FROM FINANCING ACTIVITIES:
-------------------------------------
  Notes Payable                                     222,820       (185,907)
  Notes Payable-Plaza Timeshares                                 9,279,055 
  Notes Payable- Pacific Medical Int'l                             700,000 
  Proceeds from Common Shares                     1,349,740      4,497,171 
  Proceeds from Preferred Shares                  3,458,000      6,000,000 
  Shares Subscribed but not issued                                (375,336)
  Treasury Stock                                                    39,893 
  Proceeds from Common Shares-
   MRI Diagnostics                                  476,944 
                                                 ----------     ---------- 
      Net Cash Flow From
       Financing Activities                       5,507,504     19,954,876 
                                                 ----------     ---------- 

      Net Increase in Cash                          (25,076)        26,422 

      Cash-Beginning of Fiscal Year                  33,557          7,135 

                                                 ----------     ---------- 
      Cash-End of Fiscal Year                    $    8,481     $   33,557 
                                                 ==========     ========== 


             See accompanying notes to financial statements.

                                   F-5

                                   32

<PAGE>

                     TRI-NATIONAL DEVELOPMENT CORP.
                    NOTES TO THE FINANCIAL STATEMENTS
                             April 30, 1998



1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION AND BUSINESS ACTIVITY

Tri-National Development Corp. is a publicly traded international real
estate development and management company.  The Company was incorporated on
July 31, 1979 as Rocket Energy Resources Ltd. under the laws of the
Province of British Columbia, Canada by registration of its Memorandum and
Articles. The Company changed its name to MRI Medical Technologies, Inc. in
April of 1989.  On December 7, 1992, the Company changed its name to Tri-
National Development Corp. and recapitalized on the basis of five (5)
common shares of MRI Medical Technologies, Inc. for one (1) common share of
Tri-National Development Corp.  In January of 1997, the Shareholders
approved a special resolution to change the corporate domicile from
Vancouver, B.C. to the state of Wyoming.  On February 24, 1997, the
Company's Articles of Continuation were accepted by the state of Wyoming
and it is now incorporated under the laws of the State of Wyoming.  The
Company maintains its executive offices in San Diego, California at 480
Camino Del Rio S. in Suite 140 and its telephone number is 619-718-6370.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of Greater San
Diego Imaging Center, a 100% owned subsidiary and Activity Link, Inc.,
owned 85% by the Company.  All material intercompany accounts and
transactions have been eliminated in the consolidation.

EARNINGS PER SHARE

Primary earnings per share have been computed based on the weighted average
number of shares and equivalent shares outstanding during each period.  The
dilutive effect of stock options and warrants has been considered in the
computation of equivalent shares and is included from the respective dates
of issuance.

The fully diluted computation is based on the number of shares for the
twelve months ended April 30, 1998 and 1997.  The computation contemplates
the dilutive effects of common stock equivalent shares as well as
conversion of the convertible preferred stock issued during the last twelve
months.

Since the date of issuance of the warrants and options, both primary and
fully diluted earnings per share computations limit the assumption of the
repurchase of treasury shares to a maximum of 20% of the outstanding shares
of the Company.

FURNITURE AND EQUIPMENT

Furniture and equipment are stated at cost and depreciated over the
estimated useful lives of the assets (five to seven years) using the
straight line method.

                                   F-6

                                   33

<PAGE>

2.   CITIZENS BUSINESS BANK AWARD RECEIVABLE

In March 1992, the Company advanced $383,064 to MRI Medical Diagnostics,
Inc. for a joint venture interest in its subsidiary, MRI Grand Terrace,
Inc., a California corporation, to enable it to acquire a retirement hotel
located in Grand Terrace, California.  In addition to the joint venture
interest, the loan was evidenced by a 15% note receivable from MRI Medical
Diagnostics, Inc. and a second trust deed and an assignment of rents from
MRI Grand Terrace, Inc..   On March 22, 1993, MRI Grand Terrace, Inc. filed
a complaint against Chino Valley Bank, now known as Citizens Business Bank
(AMEX:CVB), as a result of the purchase of the residential retirement hotel
in Grand Terrace from the Chino Valley Bank.  MRI Grand Terrace, Inc.
claimed that the sellers of the property (Chino Valley Bank) had failed to
disclose that the property's parking lot encroached on the property of the
adjacent parcel of land. Contrary to the bank's representations, the
Conditional Use Permit (CUP) under which the hotel was operating was in
violation, which restricted the ability of TND and MRI Grand Terrace, Inc.
to operate, refinance or sell the facility.  MRI Grand Terrace, Inc.
stopped making mortgage payments to the mortgage holder (the same Chino
Valley Bank), which then filed a Notice of Default as an initial step to
foreclosure on the property.  MRI Grand Terrace, Inc. then sought
Bankruptcy protection in July of 1993, and was ultimately dismissed from
Bankruptcy in May of 1995.  The Chino Valley Bank subsequently sold the
property in foreclosure to itself.  TND filed it's own action against the
Chino Valley Bank in early 1995, claiming that it was defrauded and
misrepresented when it advanced the $383,064 for the closing in 1992.  The
Company purchased the stock of MRI Grand Terrace, Inc., as described in
Note 4 to these financial statements, in an effort to control both
lawsuits.  As a result of the uncertainty of the final results of the
lawsuits, the Company previously wrote off the investment.  In May of 1998,
TND and MRI Grand Terrace, Inc. received judgements in their favor for
fraud, intentional misrepresentation and deceit/negligent misrepresentation
in the Superior Court of San Bernardino, California. TND and MRI Grand
Terrace, Inc. received judgements totaling almost $5 million dollars,
including punitive and compensatory damages, plus pre-trial interest.
Beginning May 7th, 1998 the $5 million judgement begins accruing, post
judgement interest of 10% or $1,400 per day until the full award is paid.
By August 17, 1998, the Bank must either appeal or pay this judgement.  A
35% portion of the award is due to the Company's attorney.

3.   NOTES RECEIVABLE

On December 30, 1996, First Colonial Ventures, Ltd., a Nevada publicly
traded company, signed a note to the Company to purchase a 1/3 interest of
Greater San Diego Imaging Center for $350,000, payable over twelve months.
As of April 30, 1998, First Colonial had paid a total of $112,367, with
unpaid principal, interest and penalties of $357,748.  The Company has
declared First Colonial in default and has retained the 1/3 interest as
liquidated damages.

4.   NETROM, INC. CONVERTIBLE PREFERRED STOCK

In January of 1998, the Company, on behalf of its wholly owned subsidiary,
Planificacion y Desarrollo Regional Jatay, S.A. de C.V., a Mexican
corporation,  sold 50 acres of its Hills of Bajamar property to NetRom,
Inc., a California publicly traded corporation for $60,000 per acre, for a
total purchase price of $3,000,000, plus construction and management
contracts on said 50 acres.

                                   F-7

                                   34

<PAGE>

NetRom, Inc. delivered to Tri-National Development Corp. at closing,
1,000,000 shares of its preferred stock at a value of $3.00 per share for
a total value of $3,000,000.  The preferred stock will cumulate interest at
a rate of 15% per annum and will be convertible into common stock at $3.00
per share or market price for the 10 day average prior to the date of
conversion, which ever is less, but in no event less than $1.50 per share. 
The conversion date is at the option of Tri-National Development Corp.,
however, no sooner than 12 months from the date of closing and in no case
later than 15 days after the common stock of NetRom, Inc. trades at or
above $4.00 per share for a period of thirty consecutive days.

Additionally, NetRom, Inc. will provide TND warrants to purchase 1,000,000
common shares at a price of $1.25 per share, presuming that NetRom, Inc.
achieves its stated projection of $.31 per share in earnings for the year
ending December 31, 1998.  In the event that NetRom, Inc. falls below the
$.31 per share earnings projection, but no lower than $.21 in earnings for
that period, then the warrant price will fall to $1.00 per share.  Further,
if the earnings fall to between $.11 and $.21, then the option price will
be reduced to $.75 per share and in the event the earnings fall below $.11
per share, the option price will be reduced to $.50 per share.  The price
and terms for the property are based on arms length negotiations between
the parties and was approved by the Board of Directors of TND and the
shareholders of NetRom, Inc. at their Annual Meeting of Shareholders, held
on January 19, 1998.

In June of 1998, NetRom, Inc. exercised an option to acquire an additional
200 acres of the Company's Hills of Bajamar property for $4.2 million.  The
$4.2 million was paid with 4.2 million restricted shares of NetRom, Inc.
common stock.  By exercising its option to acquire the 200 acres, NetRom,
Inc. increases their total holdings to 250 acres  The combined parcel will
be utilized via a joint venture arrangement with Tri-National to develop an
extreme sports destination resort on a 500 acre total parcel.  This
investment of 4.2 million common shares of NetRom, Inc. represents
approximately 30% of the total shares outstanding of NetRom, Inc.

5.   INVESTMENT IN MRI MEDICAL DIAGNOSTICS INC., A COLORADO CORPORATION

In 1992 the Company sold its wholly owned subsidiary, MRI Medical
Diagnostics Inc., a California corporation to Petro-Global, Inc., a
Colorado publicly traded corporation.  In return the Company received
6,000,000 restricted common shares of the purchaser, Petro-Global, Inc.,
plus certain mineral properties and leases.  In 1992, the mineral
properties were written down to a nil value in the records and the name was
changed from Petro-Global, Inc. to MRI Medical Diagnostics, Inc.(MRI-Med). 
MRI-Med filed for Chapter 11 bankruptcy protection in July 1993 in
conjunction with the Chino Valley Bank action (see Note 2).  After
dividends in kind totaling 2,000,000 shares in 1992 and 1993 to TND
shareholders, and due to uncertainty in the underlying value of the
remaining 4,000,000 MRI-Med shares held by the Company, the carrying cost
of these shares was written-off in 1994.  Tri-National Development Corp.
filed a reorganization plan on behalf of MRI-Med in August 1995 and, in
settlement of the litigation described in Note (2), the Company received
5,900,000 shares of MRI-Med at a deemed value of $0.50 per share, ordered
by the U.S. Federal Bankruptcy Court, plus 1,400,000 shares for
reimbursement of current expenses.   In July of 1997, MRI-Med recapitalized
on a 1 for 5 basis.  The investment is recorded in the books at a cost of
$496,994.  The Company declared and paid a stock dividend of 750,000 shares
of MRI-Med to TND shareholders of record August 31, 1997 and declared a
second stock dividend of an additional 750,000 to TND shareholders of
record January 27, 1998. After the stock dividends paid to TND shareholders
in

                                   F-8

                                   35

<PAGE>

1992, 1993, 1997 and 1998, and shares sold to finance the reorganization
the Company retains approximately 415,000 post-split shares of MRI-Med.
MRI-Med is currently traded on the Over the Counter Bulletin Board under
the symbol "MMDI" and trades in the $.05 to $.10 range.

6.   REAL ESTATE DEVELOPMENT PROPERTY: HILLS OF BAJAMAR

The Hills of Bajamar (formerly the Santa Fe Ranch) consists of
approximately 2,470 acres (divided into ten 247 acres parcels) of
undeveloped land located fifty miles south of San Diego, California on the
Pacific Coast side of the State of Baja California, Mexico, in the
Municipality of Ensenada.  The Company originally had a right to acquire a
100% interest in the property pursuant to a series of agreements requiring
ongoing payments for each 247 acres parcel released by the vendor.

In an effort to accommodate the Vancouver Stock Exchange, which the Company
was trading on at the time, the Company entered into an agreement with
Pacific Medical International, Inc. (PMI) whereby, subject to TND
shareholder approval, TND divested itself of all of its rights in
consideration for: retention of 86.45 acres of the first parcel of the
Santa Fe Ranch to be released by the original vendor; and the greater of
(1) a one percent royalty on the gross proceeds from the sale of any land
that is part of the said Santa Fe Ranch, or (2) $150,000 for each 247 acres
parcel released by the vendor, beginning with the release of the fourth
parcel and continuing with each release thereafter.

Prior to receiving shareholder approval, the Board renegotiated the
agreement and, on June 23, 1995, the Company held an Extraordinary General
Shareholder Meeting that approved the renegotiated agreement.  Under the
renegotiated agreement, the Company was granted 51% of the issued and
outstanding shares of PMI with any dilution of stock to raise further
funding to come from the shareholdings of the minority shareholders of PMI
and not their treasury.  PMI also agreed to assume a convertible promissory
note to a Mr. Yates on renegotiated terms and Yates agreed to such
assumption by PMI.  The Yates note was originally secured by the Company's
rights to its 86.45 acres of the Santa Fe Ranch.  The renegotiated note
with PMI provided for Yates to receive the greater of $2,000 or 50% of the
sale price for each acre of the Santa Fe Ranch sold until all funds due to
him were paid, with Yates also to receive a lien against the first 250
acres of the Santa Fe Ranch as security.

The Company then entered into a new agreement in November of 1996 with PMI
to acquire all right and title to the 237 acres then fully paid and in
escrow, as well as, the balance of the contract for the remaining 2,233
acres for a $700,000 promissory note payable, 500,000 shares of TND Class
B Series B Preferred Stock at a value of $4.00 per share and the return of
its 51% interest in PMI.  In January of 1998, the Company converted the
$700,000 promissory note into 1,000,000 common shares of the Company.  The
Company's basis in the Hills of Bajamar taking into account cash invested,
stock issued and notes given total, $3,843,661.  PMI remains responsible
for its own debts, including Mr. Yates.

7.   PLAZAS RESORT TIMESHARES AND COMMERCIAL PROPERTY 

In December of 1996, the Company entered into an acquisition agreement with
Valcas International, S.A. de C.V., to acquire 100% of the stock of
Inmobilaria Plaza Baja California, S.A. de C.V., a Mexican corporation,
including its existing assets, which include 16+ developed acres of ocean
front land within the Bajamar resort complex with plans for 328 vacation
ownership (timeshare)

                                   F-9

                                   36

<PAGE>

units, known as the Players Club at Bajamar, plus a 26,000 square foot
adjacent commercial building under construction for $13,079,055, payable
with notes for $9,079,055 and 1,000,000 Class B Series B Convertible
Preferred shares with a value of $4.00 per share.  See Note 14 for details
on the Notes Payable.

8.   ACTIVITY LINK, INC.

In January of 1998, TND, through its wholly owned subsidiary, Tri-National
Resorts Management, Inc., acquired 85% of Activity Link, Inc., a Nevada
corporation, for a combination of $228,000 in cash and 75,000 shares of
restricted Common Stock in TND and a quarterly distribution of profits in
the amount of 15% once Activity Link, Inc. has achieved $300,000 in annual
net profits and equally thereafter.  Activity Link, Inc. owns the
proprietary rights to "Activity Link", a reservation system for many
different types of tourist activities that will be accessed directly by the
concierge desks of major hotels and resorts.  The hotels and resorts will
be billed for each ticket or reservation paid through Activity Link.  The
first three beta sites for Activity Link are being prepared for a vacation
ownership developer in Hawaii, starting in late 1998.  Once beta testing is
complete, Activity Link plans to initially target the 500 hotels in Hawaii. 
In addition, the Company intends to utilize Activity Link for its own
vacation ownership and resort properties.  As of April 30, 1998, no
restricted Common Stock in TND had been issued in connection with this
acquisition.

9.   ASSISTED LIVING

In January of 1998, TND finalized negotiations and executed agreements to
purchase its first assisted living facility to be built and delivered, for
a combination of $110,000 in cash, 864,500 shares of the Company Class B
Series B Convertible Preferred Stock and a new mortgage for a total of
$8,140,000. Tri-National, through a newly formed subsidiary, Alpine Gardens
East, intends to own this 100 suite assisted living facility in Youngtown,
Arizona.  This 100-unit facility is planned to include 40 two-bedroom units
and 60 one-bedroom units.  In June of 1998, the Company closed on this
property.  Financing is expected to be in place through FHA by September of
1998 at which time the Company intends to break ground on the construction. 
As of April 30, 1998, the Company had paid a total of $65,000 in cash and
issued 864,500 shares of Class B Series B Convertible Preferred Stock.

10.  BAJA PROMOCIONES INTERNATIONAL, S.A. de C.V.

ASSIGNMENT TO NETROM.  On April 27, 1997, the Company entered into an
agreement to sell 200 acres in the very northern corner of the Hills of
Bajamar to Baja Promociones International, Inc. for use as an Indy style
racing facility for $4,200,000 and retained 25% interest in the business. 
The Company received a note in the amount of $4,200,000.  The buyer was to
receive a credit of $1,000,000 upon completion of the construction of the
main road from the toll road to the race facility property.  The buyer was
expecting to start construction by April 1,1998.  The original cost of this
property was $473,083, yielding a gain on sale of $3,726,917.  In April of
1998, Baja Promociones International, Inc. assigned their rights, title and
interest to NetRom, Inc. (see Note 4) for inclusion in their planned
sports-related destination resort.

                                  F-10

                                   37

<PAGE>

11.  FURNITURE AND EQUIPMENT

Furniture and equipment consists of the following:

     Furniture and equipment                 $713,611
     Less accumulated depreciation            (76,549)
                                             --------
                                             $637,062
                                             ========

12.  LOANS PAYABLE-SHORT TERM

During the year end April 30, 1998, the Company issued a Private Placement
of nine-month Corporate Notes at 10% interest per annum to institutional
and accredited investors.  The investors principal and interest are bonded
by New England Surety Co., for up to $8 million.  The primary use of
proceeds generated from the $8 million will be used for the construction of
the first 41-unit phase of the Players Club at Bajamar vacation ownership
(timeshare) complex.  The Company has, at its option, the ability to
renegotiate for up to an additional $15 million of bonding from New England
Surety Co., once the $8 million has been placed, using the first completed
41-unit phase as collateral.  The Company intends to repay the principal
and interest with cash flow generated from vacation ownership sales.  As of
April 30, 1998 the Company placed $660,000 in Corporate Notes.

14.  LONG-TERM NOTES PAYABLE

Long-term notes payable at April 30, 1998, consisted of the following:

     Note payable to Valcas Internacional,
       S.A. de C.V., plus accrued interest 
       Of 6%, maturing November 1, 2002           $ 6,143,669

     Note payable to Valcas Internacional,
       S.A. de C.V., plus accrued interest
       of 6%, maturing November 1, 2002             2,365,711

     Note payable and cash payable to 
       DUBSCA upon closing of vacation
       ownership (timeshare) project                1,200,000

     Note payable to North County Bank
       Guaranteed by a stockholder and
       secured by equipment, due in 
       monthly installments of $864,
       including interest at 10.5%,
       through October, 2001                           28,622
 
                                                  -----------
                                                    9,738,002
     Less current portion                          (  507,441)
                                                  -----------
     Long-term debt, net of current portion       $ 9,230,561
                                                  ===========

                                  F-11

                                   38

<PAGE>

Maturities at long-term debt are as follows: 

     Year ending
     April 30                                Amount
     --------                                ------

     1999                                    $   507,441
     2000                                      1,863,386
     2001                                      1,864,220
     2002                                      5,502,955
                                             -----------
                                             $ 9,738,002
                                             ===========
15.  INCOME TAXES

The Company began the year with loss carryforwards from prior years
totaling, $798,390.  These losses offset the net income in the current year
of $1,426,124, leaving no taxable income for the year ending April 30,
1998.  There will be a loss carry forward in the amount of $413,239 to
reduce future federal income taxes.

16.  LEASES

The Company leases two office facilities in San Diego, California and one
in Ensenada, Baja California under operating leases which expire in 1999
and the year 2000, respectively.  The leases generally require the Company
to pay all maintenance, insurance and property taxes and are subject to
certain minimum escalation provisions.  Rent expense for all operating
leases was approximately $135,900 for the twelve months ended April 30,
1998.

Future minimum operating lease payments as of April 30, 1998 are as
follows:

     1999                               $136,400
     2000                                140,600
                                        --------
                                        $277,000
                                        ========

17.  GREATER SAN DIEGO IMAGING CENTER

This facility has provided magnetic resonance imaging (MRI) services in the
San Diego area since 1990. On June 4, 1996 the Company entered into an
Asset Purchase Agreement with Greater San Diego Imaging Center (GSDIC) with
an effective date of November 1, 1996.  GSDIC owns and operates a magnetic
resonance imaging center in San Diego, California.  The Company agreed to
purchase the fixed assets, certain trade accounts receivable, certain
assignable contracts, leases and agreements, prepaid expenses and the
goodwill of the business.  The purchase price is $599,999 for the fixed
assets and $1.00 for other assets and is payable as follows:

(a)  by payment of $325,000, of which $25,000 U.S. was paid upon execution
of the agreement (partially paid from deposit on letter agreement), and
(b)  by the issuance of 857,142 common shares of TND based upon a value of
$0.35 U.S. per share for total share consideration having a value of
$300,000 U.S., and
(c)  on December 30, 1996, the Company entered into an agreement with First
Colonial Ventures, Ltd., Nevada publicly traded company, to sell it 1/3 of
GSDIC for $350,000 cash, payable over twelve months.  As of April 30, 1998,
First Colonial had paid a total of $112,367, with unpaid principal,
interest and penalties of $357,748.  The Company has declared First
Colonial in default and has retained the 1/3 interest as liquidated
damages.

                                  F-12

                                   39

<PAGE>

This facility, with tenant improvements, was originally financed for $2.5
million.  The equipment has a current appraisal of $1.2 million and tenant
improvements valued at $241,000.  An $75,000 "open unit" upgrade was
completed for claustrophobic and large patients.

18.  RELATED PARTY TRANSACTIONS 

The aggregate amounts paid and accrued to related parties during the year
follows:

Management Compensation and Consulting Fees $117,000.

19.  SHARE CAPITAL

The authorized capital of the Company consists of 110,100,000 shares
divided into,100,000 Class A Preferred shares with a par value of $1.00
each; 5,500,000 Class B Series A Convertible Preferred shares with a par
value of $1.00 each; 4,500,000 Class B Series B Convertible Preferred
shares with a par value of $1.00 each, of which 2,364,500 are issued and
outstanding; and 100,000,000 common shares without par value, of which
18,225,673 were issued and outstanding at April 30, 1998.

PREFERRED STOCK

CLASS A PREFERRED STOCK

100,000 Class A Preferred shares authorized with a par value of $1.00 each. 
No Class A Preferred Shares have been issued.

CLASS B PREFERRED STOCK

10,000,000 Class B Convertible Preferred shares authorized with a par value
of $1.00.  The 10,000,000 Class B Convertible Preferred shares are
authorized into two different series, 5,500,000 shares of Series A and
4,500,000 Series B.

CLASS B SERIES A PEFERRED STOCK

No Class B Series A Preferred Shares have been issued.

CLASS B SERIES B PREFERRED STOCK

The Class B Series B Preferred Shares are priced at $4.00 per share,
cumulate at 15.00% annually and are convertible into Common Shares at $3.00
per share once the Common Shares have traded at an average of $5.00 or
higher for 30 consecutive trading days.  The Class B Series B Convertible
Preferred Shares are used for acquisitions only and have no voting rights
until converted into Common Stock.  As of April 30, 1998, a total of
2,364,500 share of Class B Series B Convertible Preferred Shares were
issued for acquisitions as follows:

                                  F-13

                                   40

<PAGE>

Shares         Issued TO                          Acquisition
------         ---------                          -----------
  500,000 Pacific Medical International, Inc.     Planificacion y
                                                  Desarrolos Regional
                                                  Jatay, S.A. de C.V.
                                                  For Hills of Bajamar
                                                  property

1,000,000 Valcas International, S.A. de C.V.      Inmobilaria Plaza Baja
                                                  California, S.A. de
                                                  C.V.
                                                  For Bajamar Plazas
                                                  Resort and Plaza Suite
                                                  Bugambillas

  864,500 Solymar, Inc.                           Assisted Living
                                                  Property In Youngtown,
                                                  Arizona

COMMON STOCK

The authorized Common Stock of the Company consists of 100,000,000 shares
of Common Stock without par value.  At April 30, 1998, there were
18,225,673 shares issued and outstanding.

The Common Stock has full voting rights on all matters for which
shareholder approval is required or permitted.

The Common Stock does not possess any preferential right to dividends and
therefore is entitled to dividends only when and if dividends on such
common stock are declared by the Board of Directors, and only from funds
legally available therefore.

The holders of Common Stock have equal ratable rights to dividends from
funds legally available therefore, when, as and if declared by the Board of
Directors of the Company; are entitled to shares ratably in all of the
assets of the Company available for distribution to holders of Common Stock
upon liquidation, dissolution or winding up of the affairs of the Company;
do not have preemptive, subscription or conversion rights and there are no
redemption or sinking fund provisions applicable thereto. Such shares are
entitled to one vote per share on all matters which stockholders may vote
on at all meetings of shareholders.  All shares of Common Stock are fully
paid and nonassessable.

The holders of shares of common stock of the Company do not have cumulative
voting rights.  Thus, the holders of more than 50% of such outstanding
shares, voting for the election of directors can elect all of the directors
to be elected, and in such event, the holders of the remaining shares will
not be able to elect any of the Company's directors.

STOCK FOR LOTS CONVERSION

During the year end April 30, 1998, the Company carried out a Private
Placement to existing shareholders for 4,000 square foot residential lots
at the Hills of Bajamar.  The cash price per lot was $10,000 and the stock
price per lot was 5,000 shares of Common Stock at a value of $2.00 per
share.  A total of 12 shareholders subscribed to the Private Placement for
a total 16 lots, totaling 80,000 shares of Common Stock.

Once the master plan for the Hills of Bajamar is completed, a plot
selection will be sent out to all of the participants in the Private
Placement, on a first-come first-served basis. Once the participants have
made a lot selection, their Common Stock will be cancelled.

                                  F-14

                                   41

<PAGE>

STOCK ISSUED FOR SERVICES

In an effort to preserve cash, the Company issued a total of approximately
1.9 million shares of Common Stock in the Company for services for the year
end April 30, 1998.  Services included full-time and part-time employees,
outside consultants, marketing, architects, accounting and legal services
and web site design and internet marketing.

ESCROW SHARES

In April of 1998, 749,483 Escrow Shares held by the Company's transfer
agent, Montreal Trust, were cancelled, thereby reducing the total issued
and outstanding by 749,483 shares.  The Escrow Shares were issued as
Performance Shares in 1988, pursuant to Canadian law.

20.  OPTIONS AND WARRANTS

STOCK OPTIONS GRANTED AND EXERCISED DURING THE YEAR:

In December of 1996, 975,000 Employee Stock Options were issued to officers
and Directors to purchase Common Stock in the Company at a price of $.25
per share, expiring December 31, 1999.  For the twelve months ended April
30, 1998, 100,000 Employee Stock Options had been exercised at $.25 per
share.

For the year ended April 30, 1998 a total of 450,000 Employee Stock Options
were issued to officers to purchase Common Stock in the Company at a price
of $.50 per share and expiring December 31, 1999.  For the twelve months
ended April 30, 1998, no Employee Stock Options had been exercised at $.50
per share.

WARRANTS GRANTED AND EXERCISED DURING THE YEAR:

In 1996,the Company carried out a private placement of 1,945,741 units of
the Company at a price of $0.285 per unit for gross proceeds of $521,971. 
Each unit consists of one common share in the capital of the Company and a
two year non-transferable share purchase warrant.  Each non-transferable
share purchase warrant entitles the holder thereof to purchase one common
share in the capital of the Company at any time during the first six months
of the term of the warrant at a price of $0.285, at any time during the
second six months of the term of the warrant at a price of $0.40, at any
time during the third six months of the term of the warrant at a price of
$0.55 or at any time during the final six months of the term of the warrant
at a price of $0.75.  The term of the warrant commenced on the October 30,
1996. As of April 30, 1998, a total of 832,167 warrants had been exercised,
leaving 1,115,909 warrants unexercised.

In 1996,the Company also carried out a private placement of 968,020 units
of the Company at a price of $0.35 per unit for gross proceeds of $338,807. 
Each unit consists of one common share in the capital of the Company and a
two year non-transferable share purchase warrant.  Each non-transferable
share purchase warrant entitles the holder thereof to purchase one common
share in the capital of the Company at any time during the first year of
the term of the warrant at a price of $0.40 or at any time during the final
year of the term of the warrant at a price of $0.50.  The term of the
warrant commenced on the October 30, 1996.  As of April 30, 1998, a total
of 775,073 warrants had been exercised, leaving 192,947 unexercised.

                                  F-15

                                   42

<PAGE>

RECENT SALES OF SECURITIES

During the year ended April 30, 1998, the Company carried out a private
placement of 1,601,777 units of the Company for gross proceeds of
approximately $650,000.  Each unit consists of one common share in the
capital of the Company and a one year non-transferable share purchase
warrant for a term of one year.  Each non-transferable share purchase
warrant entitles the holder thereof to purchase one common share in the
capital of the Company at any time during the year of the term of the
warrant at an average price of approximately $.80 per share.  No warrants
for this private placement have been exercised and approximately 50% of the
warrants expire in August 1998.  The shares issued pursuant to this private
placement are restricted securities as defined by Rule 144.

SUBSEQUENT EVENT

In July of 1998, the Company carried out a single issuer private placement
for 500,000 shares at a price of $.35 per share.  No warrants were attached
to the placement.  The shares issued pursuant to this private placement are
restricted securities as defined by Rule 144.

Directors:

M.A. Sunstein                 Jay Pasternack
Ted Takacs                    Shane Kennedy
Dr. Robert Rosen              Arthur Lilly
J.J. Parker, M.D.



                                  F-16

                                   43

<PAGE>

SIGNATURES:

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Amendment No. 1
to the Annual Report on From 10-KSB to be signed on its behalf by this
undersigned, thereunto duly authorized.

Tri-National Development Corp.
a Wyoming Corporation


BY:  s/Michael A. Sunstein    DATED: JULY 31, 1998




     Michael A. Sunstein
     Chief Executive Officer, President
     Director



                                   44