----

|          |                                                                                                                             | Page                                                                                                                                                     |
|---------------|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|          | PART      I                                                                                                                      |                                                                                                                                                     |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      1.  | Business                                                                                                                         | 3                                                                                                                                                        |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      1A. | Risk      Factors                                                                                                                | 6                                                                                                                                                        |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      1B. | Unresolved      Staff Comments                                                                                                   | 7                                                                                                                                                        |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      2.  | Properties                                                                                                                       | 7                                                                                                                                                        |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      3.  | Legal      Proceedings                                                                                                           | 7                                                                                                                                                        |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      4.  | Submission      of Matters to a Vote of Security Holders                                                                         | 8                                                                                                                                                        |
|          |                                                                                                                             |                                                                                                                                                     |
|          |                                                                                                                             |                                                                                                                                                     |
|          | PART      II                                                                                                                     |                                                                                                                                                     |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      5.  | Market      for the Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 8                                                                                                                                                        |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      6.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                            | 12                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      7.  | Financial      Statements                                                                                                        | 13                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      8.  | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                   | 13                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      8A. | Controls      and Procedures                                                                                                     | 13                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      8B. | Other      Information                                                                                                           | 14                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
|          |                                                                                                                             |                                                                                                                                                     |
|          | PART      III                                                                                                                    |                                                                                                                                                     |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      9.  | Directors,      Executive Officers and Corporate Governance                                                                      | 14                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      10. | Executive      Compensation                                                                                                      | 15                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      11. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                         | 16                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      12. | Certain      Relationships and Related Transactions, and Director      Independence                                              | 17                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      13. | Exhibits                                                                                                                         |                               17 |
|          |                                                                                                                             |                                                                                                                                                     |
| ITEM      14. | Principal      Accountant Fees and Services                                                                                      | 17                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
|          | Financial      Statements                                                                                                        | 20                                                                                                                                                       |
|          |                                                                                                                             |                                                                                                                                                     |
|          |  Report      of Former Auditors                                                                                             |                               40 |
|          |                                                                                                                             |                                                                                                                                                     |

----

----

| Name      of Patent                                                                                                  | Patent      #   |  Issue      Date       | Expiration      Date |
|----------------------------------------------------------------------------------------------------------------------|---------------------------|-----------------------------------------------------------|----------------------|
|                                                                                                                 |                      |                                                      |                 |
| Oscillating Piston      Engine -                                                                                     | 5,222,463                 | 6/29/1993                                                 | 6/28/2010            |
|      This      patent covers the basic Oscillating Piston Engine OPE, all of its      parts |                      |                                                      |                 |
|      and      functionality                                                                 |                      |                                                      |                 |
|                                                                                                                 |                      |                                                      |                 |
| Oscillating      Piston Engine for Driving a Ducted Fan -                                                            | 5,303,546                 | 4/19/1994                                                 | 4/18/2011            |
|       This      patent covers the application of the OPE as a means of driving      a  |                      |                                                      |                 |
|      driving      a ducted fan (e.g., aircraft, boat, hovercraft, etc.                      |                      |                                                      |                 |
|                                                                                                                 |                      |                                                      |                 |
| Oscillating      Piston Engine for an Electrical Charging System                                                     | 5,323,737                 | 6/28/1994                                                 | 6/27/2011            |
|                                                                                                                 |                      |                                                      |                 |
| for      Electrically Powered Vehicles -                                                                             |                      |                                                      |                 |
|      This      patent covers any applications for an OPE powering an    electric            |                      |                                                      |                 |
|      charging      system for an electrically powered vehicle (e.g., a hybrid      vehicle) |                      |                                                      |                 |
|                                                                                                                 |                      |                                                      |                 |
| Oscillating      Piston Engine for Pumping System -                                                                  | 5,324,176                 | 6/28/1994                                                 | 6/27/2011            |
|      This      patent covers applications for the OPE being used to power                   |                      |                                                      |                 |
|      pumping      systems.                                                                  |                      |                                                      |                 |
|                                                                                                                 |                      |                                                      |                 |
| Oscillating      Piston Engine for Helicopters -                                                                     | 5,467,744                 | 11/28/1995                                                | 11/20/2012           |
|      This      patent covers applications for the OPE as a power source to      power       |                      |                                                      |                 |
|      helicopters                                                                            |                      |                                                      |                 |
|                                                                                                                 |                      |                                                      |                 |

----

----

Item 1A. RiskFactors 

----

----

|                       |   |   |   |   |   |   | Fiscal      Years Ending  April 30, 2008 and 2007 |   |   |
|----------------------------|--------|--------|--------|--------|--------|--------|-------------------------------------------------------------|--------|--------|
| ROTB      - ROTOBLOCK CORP |   |   |   |   |   |   |                                                        |   |   |   |   |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
|                       |   |   | BID    |   |   |   | ASK                                                         |   |   |   |   | PRICE |   |
| END      DATE              |   | HIGH   | LOW    | CLOSE  |   | HIGH   | LOW                                                         | CLOSE  |   | HIGH | LOW | CLOSE | VOLUME |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
| 4/30/2008                  |   | 0.11   | 0.055  | 0.077  |   | 0.12   | 0.06                                                        | 0.08   |   | 0.12 | 0.055 | 0.08 | 3,254,081 |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
| 1/31/2008                  |   | 0.135  | 0.077  | 0.09   |   | 0.15   | 0.087                                                       | 0.11   |   | 0.15 | 0.077 | 0.1 | 4,603,306 |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
| 10/31/2007                 |   | 0.2    | 0.02   | 0.12   |   | 0.23   | 0.025                                                       | 0.13   |   | 0.21 | 0.02 | 0.13 | 5,615,563 |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
| 7/31/2007                  |   | 0.058  | 0.021  | 0.021  |   | 0.062  | 0.25                                                        | 0.025  |   | 0.06 | 0.021 | 0.021 | 2,003,008 |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
| 4/30/2007                  |   | 0.096  | 0.0255 | 0.05   |   | 0.1    | 0.035                                                       | 0.054  |   | 0.1 | 0.03 | 0.05 | 2,871,626 |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
| 1/31/2007                  |   | 0.172  | 0.075  | 0.08   |   | 0.18   | 0.079                                                       | 0.085  |   | 0.18 | 0.075 | 0.08 | 5,898,994 |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
| 10/31/2006                 |   | 0.19   | 0.07   | 0.09   |   | 0.2    | 0.08                                                        | 0.1    |   | 0.2 | 0.07 | 0.1 | 3,014,764 |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |
| 7/31/2006                  |   | 0.27   | 0.125  | 0.125  |   | 0.31   | 0.15                                                        | 0.15   |   | 0.28 | 0.125 | 0.15 | 2,640,819 |
|                       |   |   |   |   |   |   |                                                        |   |   |   |   |   |   |

----

|     |   | Exercise      price ($) |   | Number      of Warrants |   | Remaining      contractual life (years) |
|----------|--------|-------------------------|--------|-------------------------|--------|-----------------------------------------|
|     |   |                    |   |                    |   |                                    |
| Warrants |   | 0.25                    |   | 2,960,000               |   | 2.71                                    |
| Warrants |   | 0.15                    |   | 2,500,000               |   | 3.61                                    |
| Warrants |   | 0.25                    |   | 380,000                 |   | 4.35                                    |
| Warrants |   | 0.25                    |   | 333,334                 |   | 4.73                                    |
| Warrants |   | 0.15                    |   | 1,000,000               |   | 4.92                                    |
| Warrants |   | 0.25                    |   | 333,334                 |   | 4.94                                    |
|     |   |                    |   | 7,506,668               |   |                                    |
|     |   |                    |   |                    |   |                                    |

|                                                                                            |   | Number      of warrants |   | Weighted      average exercise price |
|-------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                                            |   |                    |   | $                                    |
|                                                                                            |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2006                                               |   | 14,462,160              |   | 0.45                                 |
|                                                                                            |   |                    |   |                                 |
| Granted                                                                                         |   | 2,500,000               |   | 0.15                                 |
| Exercised                                                                                       |   | -                       |   | -                                    |
| Expired                                                                                         |   | (5,000,000)             |   | 0.50                                 |
|                                                                                            |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2007                                               |   | 11,962,160              |   | 0.45                                 |
|                                                                                            |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the year ended 30 April      2007   |   |                    |   | 0.09                                 |
|                                                                                            |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2007                                               |   | 11,962,160              |   | 0.45                                 |
|                                                                                            |   |                    |   |                                 |
| Granted                                                                                         |   | 2,046,668               |   | 0.20                                 |
| Exercised                                                                                       |   | -                       |   | -                                    |
| Expired                                                                                         |   | (6,502,160)             |   | 0.50                                 |
|                                                                                            |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2008                                               |   | 7,506,668               |   | 0.34                                 |
|                                                                                            |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the period ended 30 April      2008 |   |                    |   | 0.06                                 |

|                         |   |   |   | As      at 30April 2008 |   | As      at 30April 2007 |
|------------------------------|--------|--------|--------|------------------------------|--------|------------------------------|
|                         |   |   |   |                         |   |                         |
| Risk      free interest rate |   |   |   | 2.65      % - 3.72%          |   | 4.04      – 4.82%      |
| Expected      life           |   |   |   | 5.0      years               |   | 2.0      – 5.0 years   |
| Annualized      volatility   |   |   |   | 119%      - 150%             |   | 117      – 141%        |
| Expected      dividends      |   |   |   | -                            |   | -                            |

----

| i.   | During      the fiscal year ended April 30, 2008, we issued 1,580,000 private      placement restricted shares of common stock at a price of $0.05 per share      for total cash proceeds of $78,000.  These shares are restricted      from trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.        | During      the fiscal year ended April 30, 2008, we issued 200,000 shares of common      stock valued at $0.02 per share for consulting    services.  |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | During      the fiscal year ended April 30, 2008, we issued 1,000,000 shares of common      stock valued at $0.05 per share for consulting      services.   |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | During      the fiscal year ended April 30, 2008, we issued 300,000 shares of common      stock valued at $0.05 per share for public relations      services.   |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | During      the fiscal year ended April 30, 2008, we issued 200,000 shares of common      stock valued at $0.02 per share for $4,000 for consulting      services. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | During      the fiscal year ended April 30, 2008, we issued 380,000 share purchase      warrants with a fair value of $5,383.  Each share purchase      warrant entitles the holder to purchase an additional share of      our common stock at a price of $0.25 up to 6 September      2012. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vii.   | During      the fiscal year ended April 30, 2008, we issued 128,538 shares of common      stock valued at $0.13 per share for $16,710 for consulting      services.   |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| viii.   | During      the fiscal year ended April 30, 2008, we issued 84,211 shares of common      stock valued at $0.09 per share for $8,000 for consulting      services. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ix.   | During      the fiscal year ended April 30, 2008, we issued 29,474 shares of common      stock valued at $0.09 per share for $2,800 for consulting      services.   |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| x.   | During      the fiscal year ended April 30, 2008, we issued 666,666 units at a price      of $0.15 per unit for total cash proceeds of $100,000.  Each      unit consists of one share of our restricted common stock and      one-half  common share purchase warrant.  Each whole common      share purchase warrant entitles the holder to purchase an additional share      of our common stock at a price of $0.25 per share for a period of      five years from the date of offering.  At April      30,  2008, 333,334 of the share purchase warrants in this series      remain outstanding. These shares are restricted from trading for a period      of one year as defined by Rule 144 of the United States Securities Act of      1933. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xi.   | During      the fiscal year ended April 30, 2008, we issued 333,334 units at a price      of $0.15 per unit for total cash proceeds of $50,000.  Each unit      consists of one restricted share  of our common stock and one common      share purchase warrant.  Each whole common share purchase      warrant entitles the holder to purchase an additional share of our common      stock at a price of $0.25 per share for a period of five years from the      date of offering.  At April 30, 2008, 333,334 of the      share purchase warrants in this series remain outstanding. These shares      are restricted from trading for a period of one year as defined by Rule      144 of the United States Securities Act of1933. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xii.   | During      the fiscal year ended April 30, 2008, we issued 100,000 shares of common      stock valued at $0.08 per share for $8,000 for consulting      services. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiii.   | During      the fiscal year ended April 30, 2008, we issued 133,333 shares of common      stock valued at $0.06 per share for $8,000 for consulting      services. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiv.   | During      the fiscal year ended April 30, 2008, we issued 1,000,000 units valued at      $0.06 per unit for consulting services.  Each unit consists of      one shares of our restricted common stock and one common share      purchase warrant.  Each whole common share purchase warrant      entitles the holder to purchase an additional share of our common      stock at a price of $0.15 per share for a period of five years from      the date of offering.  At April 30, 2008, 1,000,000 of the      share purchase warrants in this series remain outstanding. These shares      are restricted from trading for a period of one year as defined by Rule      144 of the United States Securities Act of1933. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | 50,000      shares of common stock valued at $4,000 for consulting services ($0.08 per      common share) |
|----------------|-----------------------------------------------------------------------------------------------------------|

| ii.   | 320,000      shares of common stock valued at $96,000 for investor relations      ($0.30 per common share).  These shares are restricted from      trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | 800,000      sharews of common stock valued at $0.08 per share for $64,000 and      800,000 common share purchase warrants valued at $64,000 for compensation      to the chief executive officer of the company. Each common share purchase      warrant entitles the holder to purchase one additional share of common      stock of the Company at a cost of $0.15,  expiring May 12, 2013.      These shares are restricted from trading for a period of one year as      defined by Rule 144 of the United States Securities Act of      1933. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Date      Issued       |   | Numbero      of      shares |   | Value      ($) |   | Price       per share ($)     | Services      Provided  |
|------------------------|--------|-----------------------------|--------|----------------|--------|------------------------------------|-------------------------|
|                   |   |                        |   |           |   |                               |                    |
| 24      August 2005    |   | 250,000                     |   | 95,000         |   | 0.38                               | Consulting*             |
| 24      August 2005    |   | 25,000                      |   | 9,500          |   | 0.38                               | Computer      and IT    |
| 24      August 2005    |   | 50,000                      |   | 19,000         |   | 0.38                               | Public      relations   |
| 24      August 2005    |   | 25,000                      |   | 9,500          |   | 0.38                               | Investor      relations |
| 24      August 2005    |   | 300,000                     |   | 114,000        |   | 0.38                               | Legal                   |
| 24      August 2005    |   | 250,000                     |   | 95,000         |   | 0.38                               | Consulting*             |
| 24      August 2005    |   | 25,000                      |   | 9,500          |   | 0.38                               | Accounting              |
| 28      September 2005 |   | 104,171                     |   | 29,168         |   | 0.28                               | Investor      relations |
| 29      September 2005 |   | 100,000                     |   | 25,000         |   | 0.25                               | Consulting              |
| 29      September 2005 |   | 150,000                     |   | 37,500         |   | 0.25                               | Consulting*             |
| 27      October 2005   |   | 327,586                     |   | 95,000         |   | 0.29                               | Investor      relations |
| 28      October 2005   |   | 99,360                      |   | 24,840         |   | 0.25                               | Rent                    |
| 1      November 2005   |   | 50,000                      |   | 14,000         |   | 0.28                               | Public      relations   |
| 1      November 2005   |   | 125,000                     |   | 35,000         |   | 0.28                               | Consulting              |
| 2      November 2005   |   | 80,000                      |   | 23,200         |   | 0.29                               | Consulting              |
| 14      November 2005  |   | 100,000                     |   | 50,000         |   | 0.50                               | Printing                |
| 12      January 2006   |   | 250,000                     |   | 37,500         |   | 0.15                               | Consulting              |
| 12      January 2006   |   | 16,667                      |   | 2,500          |   | 0.15                               | Legal                   |
| 25      January 2006   |   | 68,287                      |   | 21,169         |   | 0.31                               | Commission      bonus   |
| 7      February 2006   |   | 22,059                      |   | 7,500          |   | 0.34                               | Consulting              |
| 30      June 2006      |   | 24,513                      |   | 4,658          |   | 0.19                               | Consulting              |
| 3      July 2006       |   | 150,000                     |   | 28,500         |   | 0.19                               | Investor      relations |
| 10      August 2006    |   | 33,333                      |   | 5,000          |   | 0.15                               | Legal                   |
| 3      October 2006    |   | 57,820                      |   | 5,782          |   | 0.10                               | Consulting              |
| 20      October 2006   |   | 69,000                      |   | 6,210          |   | 0.09                               | Consulting              |
| 10      November 2006  |   | 75,000                      |   | 7,500          |   | 0.10                               | Public      relations   |
| 29      November 2006  |   | 800,000                     |   | 96,000         |   | 0.12                               | Public      relations   |
| 22      December 2006  |   | 192,363                     |   | 15,389         |   | 0.08                               | Rent                    |
| 2      January 2007    |   | 135,850                     |   | 10,868         |   | 0.08                               | Consulting              |
| 7      February 2007   |   | 93,750                      |   | 7,500          |   | 0.08                               | Public      relations   |
| 3      April 2007      |   | 77,633                      |   | 4,658          |   | 0.06                               | Consulting              |
| 29      October 2007   |   | 400,000                     |   | 8,000          |   |      0.02 | Consulting*             |
| 30      October 2007   |   | 1,000,000                   |   | 50,000         |   | 0.05                               | Consulting              |
| 30      October 2007   |   | 300,000                     |   | 15,000         |   | 0.05                               | Public      relations   |
| 9      November 2007   |   | 128,538                     |   | 16,710         |   | 0.13                               | Consulting              |
| 10      December 2007  |   | 84,211                      |   | 8,000          |   | 0.09                               | Consulting*             |
| 11      December 2007  |   | 29,474                      |   | 2,800          |   | 0.09                               | Consulting              |
| 7      February 2008   |   | 100,000                     |   | 8,000          |   | 0.08                               | Consulting*             |
| 1      April 2008      |   | 133,333                     |   | 8,000          |   | 0.06                               | Consulting*             |
| 1      April 2008      |   | 1,000,000                   |   | 60,000         |   | 0.06                               | Consulting*             |
| Total                  |   | 7,302,948                   |   | 1,122,452      |   |                               |                    |

----

```
      o    WHETHER THE ALTERNATIVE ENERGY FOR OUR PRODUCTS CONTINUES TO GROW AND, IF IT DOES, THE PACE AT WHICH IT MAY GROW;
```

```
      o    OUR ABILITY TO ATTRACT AND RETAIN THE PERSONNEL QUALIFIED TO IMPLEMENT OUR GROWTH STRATEGIES,
```

```
      o    OUR ABILITY TO OBTAIN APPROVAL FROM GOVERNMENT AUTHORITIES FOR OUR PRODUCTS;
```

```
      o    OUR ABILITY TO PROTECT THE PATENTS ON OUR PROPRIETARY TECHNOLOGY;
```

```
      o    OUR ABILITY TO FUND OUR SHORT-TERM AND LONG-TERM FINANCING NEEDS;
```

```
      o    OUR ABILITY TO COMPETE AGAINST LARGE COMPETITORS IN A RAPIDLY CHANGING  MARKET;
```

```
      o    CHANGES IN OUR BUSINESS PLAN AND CORPORATE STRATEGIES; AND
```

```
      o    OTHER RISKS AND UNCERTAINTIES DISCUSSED IN GREATER DETAIL IN VARIOUS SECTIONS OF THIS REPORT.
```

----

```
Item 8a. Controls and Procedures
```

----

| Name      of Director or Officer and Position in the Company                                     | Officer      or Director Since                                                                                                                                                                                        | Age                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Office(s)      Held and Other Business Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                             |                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Chien Chih      Liu, Chief Executive Officer                                                     | November      1, 2007 to present                                                                                                                                                                                      | 37                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Mr.      Liu has over 15 years of experience in international trade and project      management. From 2002 to 2007, he wasVice President of Tianyi Group,      a company engagd in the business of international trade and project      management in California.  Prior to Tianyi Group, he was in the real      estate investment business in both the US an dChina. Mr. Liu received a BS      in Chemical Engineering fromn the University of California-Berkeley. He      devotes his time as required to the business of our company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                             |                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Richard Di      Sfefano, Chief Financial Officer, Principal Accounting Officer and      Director | June      5, 2008 to present                                                                                                                                                                                          | 32                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Mr. DiStefano is a business strategist with      over 13 years experience managing multiple product lines in both the      corporate and entrepeneurial environments. From 2004 to the present, he      has been the owner/operator of Premier Wireless, a retail multi-carrier      phone sales and service outlet business. He grew the company from one      outlet to 12 in 36 months in premium mall locations and formed dealer      relationships with Sprint, Verizon, Cingular, T-Mobile and Metro      PCS.  In addition, from 2004 to the present, Mr. DiStefano is a      Director of Produt Mobile for Match.com, where he has developed andf      launched SMS alerts, an integrated WAP site and Brew downloadable client      applications with AT&T, Sprint, Virgin, Alltel and Telefonica in      Spain. He has led the global on-deck expansion of Match.com into the U K      and Spain with Vodafone and Orange,  and created and launched      the model for Match and MSN dating and personals in the US and 14 other      countries, including contract negotiations.  He received a BS      Degree in Rhetoric and Communications      from the University of California-Davis in 1998 and a Law Degree from      Lincoln Law School in Sacramento, CA. in 2004. Mr. DiStefano devotes his      time as required to the business of our      company.  |
|                                                                                             |                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Mariya      Petrovska, Secretary and    Director                                                 | April      18, 2007 to Present                                                                                                                                                                                        | 24                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Ms.      Petrovska was appointed a  director and corporate secretary of      the company in April 2007 when the former secretary and director, Renay      Cude, resigned. She graduated from Sonoma State University in May 2006      with a Bachelors Degree in Communications and has worked as an intern for      the Comunications and Public Relations Firm in San Francisco, CA, where      she assisted with various marketing and promotions campaigns. After      graduation, Ms. Petrovska joined ZAP, a publicly-traded company, where she      worked as a Marketing and Event Coordinator. Ms. Petrovska has travelled      extensively throughout Europe, living in the Middle East and completing a      year at St. Louis University in Madrid, Spain. Ms. Petrovska devotes      her time as required to the business of our company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                             |                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Ching Chen Chan,    Director                                                                     | September      26,      2005                            51to      Present | Professor      at the University of Hong Kong and one of China's foremost authorities on      drive train design and engineering. He has been called the "Father of      Asian Electric Vehicles" by Global View Magazine 2003 and has been      actively involved in electric vehicle (EV) projects in China, India,      Japan, United States and Europe. In 2001, Asiaweek selected Chan as      "Asia's Best Technology Pioneer". He has authored and co-authored eight      books and over 220 technical papers and holds eight patents. His 2001 book      "Modern Electric Vehicle Technology" is considered a comprehensive      reference book on the subject. Professor Chan is a member of the National      Committee of the Chinese People's Political Consultative Conference and      Chief Panelist for the Ministry of Science and Technology. He is the      Science & Technology advisor for Shandong Province, as well as Chief      Advisor on EVs for the Mayor of Wuhan. He founded the International      Research Centre for EVs at the University of Hong Kong, hosted the 10th      International EV Symposium in Hong Kong and      co-founded the World EV Association. He has also served as the President      of EV Association of Asia Pacific, President of the Hong Kong Institution      of Engineers, and is now Vice President of the Hong Kong Academy of      Engineering Sciences and President of the Asian EV Society. Professor Chan      was born to a Chinese entrepreneurial family in Indonesia. He obtained his      academic credentials from Tsinghua University and the University of Hong      Kong and holds honorary degrees from universities in Russia, Ukraine and      the United Kingdom. He worked for 11 years in the research and development      of electric machines and power systems; and for 29 years in polytechnic      and universities devoted to teaching and research in electrical      engineering. He has also served as a guest lecturer in the U.S. at UC      Berkeley, MIT and UC Davis. Mr Chan devotes his time as required to the      business of our company.  |
|                                                                                             |                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Steve      Schneider, Director                                                                   | August      11, 2005 to present                                                                                                                                                                                       | 45                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Mr.      Schneider is a director and Chief Executive Officer of ZAP since      October 26, 2002. ZAP is an advanced technology vehicle distributor.      Under Mr. Schneider’s leadership, the company obtained over 2 billion      dollars in purchase orders; over $400 million in revolving credit,      successfully brought to market America’s highest fuel economy vehicle as      well as bringing the first production Chinese and electric vehicle to the      U.S. In 2001, Mr. Schneider founded Voltage Vehicles, an electric vehicle      distribution company specializing in electric vehicles and      full-performance alternative fuel vehicles such as automobiles,      motorcycles, and bicycles. Mr. Schneider devotes his time as required to      the business of our company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                             |                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Tony      R. Collins, Vice President of Corporate Development and      Technology                | December      1, 2006 to present                                                                                                                                                                                      | 35                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  Prior      to joining the Registrant, Mr. Collins most recently served as President      of Merchant West Communications from 2004 to 2006. From 2001 to 2004, Mr.      Collins was Corporation Communications Director for Skyline Marketing      Group. From 1998 to 2001, Mr. Collins was in senior management positions      with Indus Investment Group and Molson Indy Vancouver, respectively. Mr.      Collins is a resident of Vancouver, British Columbia, Canada. Mr.      Collins      devotes his time as required to the business of our company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

| SUMMARY      COMPENSATION TABLE                  |
|--------------------------------------------------|
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             | FISCAL      YEAR COMPENSATION | LONG-TERM      COMPENSATION |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   | Awards |   | Payouts |   |
|                                             |   |   |   |   |   |   |   | Securities      Underlying Option/SARs Granted | Restricted      Shares or Restricted Share Units | LTIP      Payouts ($) | All      other Compensation |
|                                             |   | FISCAL      YEAR COMPENSATION |   |   |   |   |   |   |
| Name      and Principal Position                 |   | Year | Salary |   | Bonus | Other      Annual Compensation |   |   |   |
|                                             |   |   | ($) |   | ($) |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Chien      Chih Liu, Chief Executive Officer     |   | 2008 | 110,000(1) |   | 64,000      (2) | 0 |   | 0 | 2,000,000      (1) | 0 | 800,000 |
|                                             |   | 2007 | 0 |   | 0 | 0 |   | 0 | 0 | 0 | 0 |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Richard      Di Stefano, Chief Financial Officer | 2008 | 0 |   | 27,500      (2) | 0 |   | 0 | 250,000      (2) | 0 | 0 |
|                                             |   | 2007 | 0 |   | 0 | 0 |   | 0 | 0 | 0 | 0 |
|                                             |   |   |   |   |    |   |   |   |   |   |   |
| Mariya      Petrovska, Secretary                 |   | 2008 | 0 |   | 2,000      (2) | 0 |   | 0 | 0 | 0 | 100,000 |
|                                             |   | 2007 | 0 |   | 0 | 0 |   | 0 | 0 | 0 | 0 |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Tony      R. Collins, VP of Development          |   | 2008 | 0 |   | 0 | 0 |   | 0 | 0 | 0 | 0 |
|                                             |   | 2007 | 0 |   | 0 | 0 |   | 0 | 0 | 0 | 0 |

----

During the fiscal years ended April 30,2008, officers and directors received common stock share purchase warrantsexercisable at a per share price of $0.15, expiring between March - May, 2013.The following table sets out the common stock sharepurchase warrants granted in lieu of salaries and/or bonuses during the fiscalyears ended April 30, 2008 to the Named Executive Officers:

| Name      and Tital                                | Number      of Securitiews Underlying Options/SARs Granted (#) | %      of Total Options/SARs Granted to Employees in Fiscal Year | Exercise      or Base Price ($) | Expiration      Date      |
|----------------------------------------------------|----------------------------------------------------------------|------------------------------------------------------------------|---------------------------------|---------------------------|
|                                               |                                                           |                                                             |                            |                      |
|  Chien      Chih Liu, Chief Executive Officer |         1,800,000                                    |  100%                                                       | $0.15       |  March-May      2013 |

| Name                | Shares      Acquired on Exercise (#) | Value      Realized ($) | Number      of Securities Underlying Unexercised Options/SARs at FY-End (#)      Exercisable/Unexercisable | Value      of Unexercised Options/SARs at FY-End ($) |
|---------------------|--------------------------------------|-------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------|
|                |                                 |                    |                                                                                                       |                                                 |
| Chieh      Chih Liu | 0                                    | 0                       | 1,800,000                                                                                                  | 124,000                                              |

| Name      and Address of Beneficial Owner      | Position(s)      Held        | Nature      and Amount of Beneficial Ownership (1) | Percent      of Outstanding Common Stock |
|------------------------------------------------|------------------------------|----------------------------------------------------|------------------------------------------|
|                                           |                         |                                               |                                     |
|                                           |                         |                                               |                                     |
| Chien      Chih Liu                            | Chief      Executive Officer | 2,800,000                                          | 10%                                      |
| 300      B Street                              |                         |  Direct                                       |                                     |
| Santa      Rosa, CA.  95401               |                         |                                               |                                     |
|                                           |                         |                                               |                                     |
| Autodistributors                               | None                         | 3,390,568                                          | 9%                                       |
| 300      B Street                              |                         |  Direct                                       |                                     |
| Santa      Rosa, CA.  95401               |                         |                                               |                                     |
|                                           |                         |                                               |                                     |
| All      Officers and Directors as a group (3) |                         | 2,000,000                                          | 5%                                       |

----

|    | ·  | All audit services      that the auditor may provide to us or any subsidiary (including, without      limitation, providing comfort letters in connection with securities      underwritings or statutory audits) as required by §10A(i)(1)(A) of the      Exchange Act (as amended by the Sarbanes-Oxley Act of 2002) are      preapproved by the Board.   |
|--------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | ·  | All non-audit      services (other than certain de      minimis services described in §10A(i)(1)(B) of the Exchange Act (as      amended by the Sarbanes-Oxley Act of 2002)) that the auditors propose to      provide to us or any of our subsidiaries are preapproved by the Board.        |
|--------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

JamesStafford

James Stafford,Inc.*

----

|                                                                  |   | As      at30      April 2008 |   |  As      at30      April2007 |
|-----------------------------------------------------------------------|--------|-----------------------------------|--------|-----------------------------------|
|                                                                  |   | $                                 |   | $                                 |
| Assets                                                                |   |                              |   |                              |
|                                                                  |   |                              |   |                              |
| Current                                                               |   |                              |   |                              |
| Cash      and cash equivalents                                        |   | 91,947                            |   | 1,482                             |
| Accounts      receivable                                              |   | 219                               |   | 199                               |
| Prepaid      expenses                                                 |   | 26,072                            |   | 149,818                           |
|                                                                  |   |                              |   |                              |
|                                                                  |   | 118,238                           |   | 151,499                           |
|                                                                  |   |                              |   |                              |
| Patents (Note      3)                                                 |   | 108,745                           |   | 108,745                           |
|                                                                  |   |                              |   |                              |
|                                                                  |   | 226,983                           |   | 260,244                           |
| Liabilities                                                           |   |                              |   |                              |
|                                                                  |   |                              |   |                              |
| Current                                                               |   |                              |   |                              |
| Accounts      payable and accrued liabilities (Note 4)                |   | 10,281                            |   | 32,675                            |
| Convertible      promissory note payable (Note 6 and 12)              |   | 10,000                            |   | 10,000                            |
| Due      to related party (Note 8)                                    |   | 658                               |   | 598                               |
| Interest      payable (Notes 5 and 12)                                |   | 11,705                            |   | 11,705                            |
|                                                                  |   |                              |   |                              |
|                                                                  |   | 32,644                            |   | 54,978                            |
|                                                                  |   |                              |   |                              |
| Stockholders’      equity                                       |   |                              |   |                              |
| Capital stock (Note 10)                                               |   |                              |   |                              |
| Authorized                                                            |   |                              |   |                              |
| 75,000,000      common shares, par value $0.001                       |   |                              |   |                              |
| Issued      and outstanding                                           |   |                              |   |                              |
| 30      April 2008 – 36,196,442 common shares, par value $0.001 |   |                              |   |                              |
| 30      April 2007 – 30,440,886 common shares, par value $0.001 |   | 36,196                            |   | 30,440                            |
| Additional      paid-in capital                                       |   | 4,669,814                         |   | 4,224,699                         |
| Warrants                                                              |   | 114,303                           |   | -                                 |
| Accumulated      comprehensive loss                                   |   | (4,268)                           |   | (4,258)                           |
| Deficit,      accumulated during the development stage                |   | (4,621,706)                       |   | (4,045,615)                       |
|                                                                  |   |                              |   |                              |
|                                                                  |   | 194,339                           |   | 205,266                           |
|                                                                  |   |                              |   |                              |
|                                                                  |   | 226,983                           |   | 260,244                           |

1

----

|                                                                                     |   |   |      |    |       |  For      the period from the date of inception on 2 September 2003 to30      April 2008(Unaudited) |       |      For      theyear      ended30      April 2008 |   |      For      theyear      ended30      April 2007 |
|------------------------------------------------------------------------------------------|--------|--------|-----------|---------|------------|----------------------------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|
|                                                                                     |   |   |      |    |       | $                                                                                                        |       | $                                                                                |   | $                                                                                |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Expenses                                                                                 |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| General      and administrative (Schedule 1)                                             |   |   | 4,449,494 |    | 576,091    |                                                                                                     | 878,582    |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Net      loss before other items                                                         |   |   |      |    |       | (4,449,494)                                                                                              |       | (576,091)                                                                        |   | (878,582)                                                                        |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Other      items                                                                         |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Excess      of consideration over net assets purchased from Rotoblock Inc. (Note      1) |   |   | (138)     |    |  -    |                                                                                                     |  -    |
| Write-off      of property and equipment                                                 |   |   | (9,870)   |    | -          |                                                                                                     | -          |
| Write-off      of related party receivable                                               |   |   | (162,204) |    | -          |                                                                                                     | 15,000     |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Loss      for the period                                                                 |   |   |      |    |       | (4,621,706)                                                                                              |       | (576,091)                                                                        |   | (863,582)                                                                        |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Basic      and diluted loss per common share                                             |   |   |      |    |       | (0.018)                                                                                                  |       | (0.029)                                                                          |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Weighted      average number of common shares used in per share    calculations          |   |   |      |    | 32,598,893 |                                                                                                     | 29,470,208 |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Comprehensive      loss                                                                  |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Loss      for the period                                                                 |   |   |      |    |       | (4,621,706)                                                                                              |       | (576,091)                                                                        |   | (863,582)                                                                        |
| Foreign      currency translation adjustment                                             |   |   |      | (4,268) |       | (10)                                                                                                     |       | (5)                                                                              |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Comprehensive      loss                                                                  |   |   |      |    |       | (4,625,974)                                                                                              |       | (576,101)                                                                        |   | (863,587)                                                                        |
|                                                                                     |   |   |      |    |       |                                                                                                     |       |                                                                             |   |                                                                             |
| Comprehensive      loss per common share                                                 |   |   |      |    |       |                                                                                                     |       |  (0.018)                                                                    |   |  (0.029)                                                                    |

----

|                                                                             | For      the period from the date of inception on 2 September 2003 to30      April 2008(Unaudited) |    For theyear      ended30      April 2008                                   | For      theyear      ended30      April2007 |
|----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|----------------------------------------------|
|                                                                             |                                                                                                    |                 $ |                                         | $ |   | $ |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   |   |
| Cash      flows from operating activities                                        |                                                                                                    |                                                                                              |                                         |   |   |   |
| Loss      for the period                                                         |                                                                                                    | (4,621,706)                                                                                       |                                         | (576,091) |   | (863,582) |
| Adjustments      to reconcile loss to net cash used by operating activities      |                                                                                                    |                                                                                              |                                         |   |   |   |
| Contributions      to capital by related party – expenses (Notes 9 and 13) |                                                                                                    | 200,000                                                                                           |                                         | 100,000 |   | 100,000 |
| Depreciation                                                                     |                                                                                                    | 3,968                                                                                             |                                         | - |   | - |
| Non-cash      interest                                                           |                                                                                                    | 11,705                                                                                            |                                         | - |   | - |
| Shares      issued for services (Notes 9, 10 and 13)                             |                                                                                                    | 1,096,378                                                                                         |                                         | 300,256 |   | 307,424 |
| Stock-based      compensation (Notes 10 and 13)                                  |                                                                                                    | 2,376,552                                                                                         |                                         | 60,664 |   | 414,711 |
| Write-off      of property and equipment                                         |                                                                                                    | 9,870                                                                                             |                                         | - |   | - |
| Write-off      of related party receivable                                       |                                                                                                    | 177,204                                                                                           |                                         | - |   | - |
| Changes      in operating assets and liabilities                                 |                                                                                                    |                                                                                              |                                         |   |   |   |
| (Increase)      decrease in accounts receivable                                  |                                                                                                    | (219)                                                                                             |                                         | (20) |   | 487 |
| Decrease      in prepaid expenses                                                |                                                                                                    |                                                                                              |                                         | - |   | 1,369 |
| Increase      (decrease) in accounts payable and accrued liabilities             |                                                                                                    | 10,283                                                                                            |                                         | (22,394) |   | 5,193 |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   |   |
|                                                                             |                                                                                                    | (735,965)                                                                                         |                                         | (137,585) |   | (34,398) |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   |   |
| Cash      flows from investing activities                                        |                                                                                                    |                                                                                              |                                         |   |   |   |
| Purchase      of equipment                                                       |                                                                                                    | (13,838)                                                                                          |                                         | - |   | - |
| Purchase      of patents                                                         |                                                                                                    | (108,745)                                                                                         |                                         | - |   | - |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   | - |
|                                                                             |                                                                                                    | (122,583)                                                                                         |                                         | - |   |   |
| Cash      flows from financing activities                                        |                                                                                                    |                                                                                              |                                         |   |   |   |
| Common      shares issued for cash                                               |                                                                                                    | 880,466                                                                                           |                                         | 174,361 |   | 24,000 |
| Warrants      granted for cash                                                   |                                                                                                    | 53,639                                                                                            |                                         | 53,639 |   | - |
| Warrants      exercised                                                          |                                                                                                    | 10,000                                                                                            |                                         | - |   | - |
| Convertible      promissory note payable                                         |                                                                                                    | 10,000                                                                                            |                                         | - |   | 10,000 |
| Increase      in due to related party                                            |                                                                                                    | 658                                                                                               |                                         | 60 |   | 1 |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   |   |
|                                                                             |                                                                                                    | 954,763                                                                                           |                                         | 228,060 |   | 34,001 |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   |   |
| Foreign      exchange effect on cash                                             |                                                                                                    | (4,268)                                                                                           |                                         | (10) |   | (5) |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   |   |
| Increase      (decrease) in cash and cash equivalents                            |                                                                                                    | 91,947                                                                                            |                                         | 90,465 |   | (402) |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   |   |
| Cash      and cash equivalents, beginning of period                              |                                                                                                    | -                                                                                                 |                                         | 1,482 |   | 1,884 |
|                                                                             |                                                                                                    |                                                                                              |                                         |   |   |   |
| Cash      and cash equivalents, end of period                                    |                                                                                                    | 91,947                                                                                            |                                         | 91,947 |   | 1,482 |

----

|                                                                                                                                                | Number      of shares issued | CapitalStock | Additional      Paid-in capital | Warrants |   Accumulated      comprehensive loss | Deficit      accumulated during the development stage | Stockholders’      equity |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|--------------|---------------------------------|----------|-------------------------------------------------|-------------------------------------------------------|---------------------------------|
|                                                                                                                                                |                         |         |                            | $        |                                            | $                                                     |                            | $ |   | $ |   | $ |   | $ |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 2 September 2003                                                                                                                    |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Shares issued for      cash                                                                                                                         |                         | 7,000,000    |                            | -        |                                            | 534                                                   |                            | - |   | - |   | - |   | 534 |
| Shares issued for      cash                                                                                                                         |                         | 200,000      |                            | -        |                                            | 38,130                                                |                            | - |   | - |   | - |   | 38,130 |
| Adjustment to number of shares      issued as a result of the acquisition of net assets of Rotoblock      Inc.    (Note      1) |                         | (7,200,000)  |                            | -        |                                            | -                                                     |                            | - |   | - |   | - |   | - |
| Shares      issued in connection with the acquisition of net assets of Rotoblock Inc.      (Note 1)                                                 |                         | 15,000,000   |                            | 15,000   |                                            | (15,000)                                              |                            | - |   | - |   | - |   | - |
| Excess      of consideration over net assets purchased from Rotoblock Inc. (Note      1)                                                            |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (138) |   | (138) |
| Foreign      currency translation adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (1,918) |   | - |   | (1,918) |
| Net loss for the      period                                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (108,443) |   | (108,443) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2004 (Unaudited)                                                                                                           |                         | 15,000,000   |                            | 15,000   |                                            | 23,664                                                |                            | - |   | (1,918) |   | (108,581) |   | (71,835) |
| Shares issued for cash ($0.05      per share)                                                                                                       |                         | 10,000,000   |                            | 10,000   |                                            | 490,000                                               |                            | - |   | - |   | - |   | 500,000 |
| Foreign currency translation      adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (1,385) |   | - |   | (1,385) |
| Net loss for the      year                                                                                                                          |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (306,193) |   | (306,193) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2005 (Unaudited)                                                                                                           |                         | 25,000,000   |                            | 25,000   |                                            | 513,664                                               |                            | - |   | (3,303) |   | (414,774) |   | 120,587 |
| Shares issued for cash ($0.26      per share) (Note 10)                                                                                             |                         | 548,160      |                            | 548      |                                            | 142,893                                               |                            | - |   | - |   | - |   | 143,441 |
| Shares issued for services      rendered ($0.31 per share) (Note 10)                                                                                |                         | 2,418,130    |                            | 2,418    |                                            | 751,459                                               |                            | - |   | - |   | - |   | 753,877 |
| Shares      issued for inventory ($0.29 per share) (Note 10)                                                                                        |                         | 611,048      |                            | 611      |                                            | 176,593                                               |                            | - |   | - |   | - |   | 177,204 |
| Warrants      exercised ($0.25 per share) (Note 10)                                                                                                 |                         | 40,000       |                            | 40       |                                            | 9,960                                                 |                            | - |   | - |   | - |   | 10,000 |
| Stock-based compensation (Note      8)                                                                                                              |                         | -            |                            | -        |                                            | 1,901,177                                             |                            | - |   | - |   | - |   | 1,901,177 |
| Foreign      currency translation adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (950) |   | - |   | (950) |
| Net loss for the      year                                                                                                                          |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (2,767,259) |   | (2,767,259) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2006                                                                                                                       |                         | 28,617,338   |                            | 28,617   |                                            | 3,495,746                                             |                            | - |   | (4,253) |   | (3,182,033) |   | 338,077 |
| Shares issued for cash ($0.21      per share) (Note 10)                                                                                             |                         | 114,286      |                            | 114      |                                            | 23,886                                                |                            | - |   | - |   | - |   | 24,000 |
| Shares issued for services      rendered (Note 10)                                                                                                  |                         | 1,709,262    |                            | 1,709    |                                            | 190,356                                               |                            | - |   | - |   | - |   | 192,065 |
| Contribution      to capital by related parties – services (Notes 9 and 10)                                                                   |                         | -            |                            | -        |                                            | 100,000                                               |                            | - |   | - |   | - |   | 100,000 |
| Stock-based      compensation (Note 10)                                                                                                             |                         | -            |                            | -        |                                            | 414,711                                               |                            | - |   | - |   | - |   | 414,711 |
| Foreign      currency translation adjustment                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | (5) |   | - |   | (5) |
| Net loss for the      period                                                                                                                        |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (863,582) |   | (863,582) |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2007                                                                                                                       |                         | 30,440,886   |                            | 30,440   |                                            | 4,224,699                                             |                            | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
|                                                                                                                                                |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |

----

|                                                                              | Number      of shares issued | CapitalStock | Additional      Paid-in capital |     Warrants | Accumulated      comprehensive loss | Deficit      accumulated during the development stage | Stockholders’      equity |
|-----------------------------------------------------------------------------------|------------------------------|--------------|---------------------------------|----------------------------------|-------------------------------------|-------------------------------------------------------|---------------------------------|
|                                                                              |                         |         |                            |                             |                                | $                                                     |                            | $ |   | $ |   | $ |   | $ |
|                                                                              |                         |         |                            |                             |                                |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2007                                                     |                         | 30,440,886   |                            | 30,440                           |                                | 4,224,699                                             |                            | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
| Shares issued for cash ($0.05      per share) (Note 10)                           |                         | 2,580,000    |                            | 2,580                            |                                | 171,781                                               |                            |  - |   | - |   | - |   | 174,361 |
|     Warrants      granted                                     |                         | -            |                            | -                                |                                | -                                                     |                            | 53,639 |   |   |   |   |   | 53,639 |
| Shares issued for services      rendered (Notes 10 and 13)                        |                         | 3,175,556    |                            | 3,176                            |                                | 173,334                                               |                            |  - |   | - |   | - |   | 176,510 |
| Contribution      to capital by related parties – services (Notes 9 and 13) |                         | -            |                            | -                                |                                | 100,000                                               |                            |  - |   | - |   | - |   | 100,000 |
| Stock-based      compensation (Note 10)                                           |                         | -            |                            | -                                |                                | -                                                     |                            | 60,664 |   | - |   | - |   | 60,664 |
| Foreign      currency translation adjustment                                      |                         | -            |                            | -                                |                                | -                                                     |                            |  - |   | (10) |   | - |   | (10) |
| Net      loss for the period                                                      |                         | -            |                            | -                                |                                | -                                                     |                            | - |   | - |   | (576,091) |   | (576,091) |
|                                                                              |                         |         |                            |                             |                                |                                                  |                            |   |   |   |   |   |   |   |
|                                                                              |                         |         |                            |                             |                                |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2008                                                     |                         | 36,196,442   |                            | 36,196                           |                                | 4,669,814                                             |                            | 114,303 |   | (4,268) |   | (4,621,706) |   | 194,339 |

----

|                                              |   |   | For      the period from the date of inception on 2 September 2003 to30      April 2008(Unaudited) | For      theyear      ended 30 April 2008 | For      theyear      ended 30 April 2007 |
|---------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------|-------------------------------------------|-------------------------------------------|
|                                              |   |   |                                                                                               |                                      |                                      | $ |   | $ |   | $ |
|                                              |   |   |                                                                                               |                                      |                                      |   |   |   |   |   |
| Consulting      fees (Notes 9 and 13)             |   |   |                                                                                               |                                      |                                      | 667,772 |   | 207,320 |   | 114,935 |
| Depreciation                                      |   |   |                                                                                               |                                      |                                      | 3,968 |   | - |   | - |
| Foreign      exchange loss                        |   |   |                                                                                               |                                      |                                      | 1,545 |   | - |   | 195 |
| Interest                                          |   |   |                                                                                               |                                      |                                      | 16,458 |   | 714 |   | 540 |
| Investor      relations                           |   |   |                                                                                               |                                      |                                      | 143,878 |   | - |   | 45,358 |
| Listing,      filing and transfer agent fees      |   |   |                                                                                               |                                      |                                      | 36,448 |   | 7,865 |   | 7,294 |
| Management      fees (Notes 9 and 13)             |   |   |                                                                                               |                                      |                                      | 200,000 |   | 100,000 |   | 100,000 |
| Office      and sundry                            |   |   |                                                                                               |                                      |                                      | 48,812 |   | 6,425 |   | 4,672 |
| Professional      fees                            |   |   |                                                                                               |                                      |                                      | 330,338 |   | 143,908 |   | 64,562 |
| Public      relations and shareholder information |   |   |                                                                                               |                                      |                                      | 144,404 |   | 3,495 |   | 96,679 |
| Rent                                              |   |   |                                                                                               |                                      |                                      | 79,205 |   | - |   | 27,861 |
| Research      and development                     |   |   |                                                                                               |                                      |                                      | 314,256 |   | - |   | 418 |
| Stock-based      compensation                     |   |   |                                                                                               |                                      |                                      | 2,376,552 |   | 60,664 |   | 414,711 |
| Travel      and entertainment                     |   |   |                                                                                               |                                      |                                      | 85,858 |   | 45,700 |   | 1,357 |
|                                              |   |   |                                                                                               |                                      |                                      |   |   |   |   |   |
|                                              |   |   |                                                                                               |                                      |                                      | 4,449,494 |   | 576,091 |   | 878,582 |

----

| 1.   | Nature and Continuance of      Operations |
|----------------|-------------------------------------------|

----

| 2.   | Significant      Accounting Policies |
|----------------|--------------------------------------|

Basis of presentation

----

----

----

| 3.   | Patents |
|----------------|---------|

|                          |   | Balance      at 30 April 2008 |   | Balance      at 30 April 2007 |
|-------------------------------|--------|-------------------------------|--------|-------------------------------|
|                          |   | $                             |   | $                             |
| Patent      costs to date     |   | 108,745                       |   | 108,745                       |
| Accumulated      depreciation |   | -                             |   | -                             |
|                          |   |                          |   |                          |
|                          |   | 108,745                       |   | 108,745                       |

| 4.   | Accounts Payable and Accrued      Liabilities |
|----------------|-----------------------------------------------|

| 5.   | Interest      Payable |
|----------------|-----------------------|

| 6.   | Convertible Promissory  Note |
|----------------|------------------------------|

| 7.   | Joint      Venture Agreement |
|----------------|------------------------------|

|   | i) | keep      the OPE patents in good standing and ensure that maintenance fees are paid      in a timely manner (Note 3); and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | ii) | exercise      the Option for all patents on or before 31 May 2007 or negotiate an      extension. |
|--------|-----|---------------------------------------------------------------------------------------------------|

----

| 8.   | Due      to Related Party |
|----------------|---------------------------|

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

| 10.   | Capital      Stock |
|-----------------|--------------------|

| i.   | During      the year ended 30 April 2004, the Company issued 15,000,000 common shares      pursuant to the acquisition of the net assets of Rotoblock Inc. (Note      1).  Theses shares are restricted from trading as defined in      Rule 144 of the United States Securities Act of  1933. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | During      the year ended 30 April 2005, the Company issued 10,000,000 units at a      price of $0.05 per unit.  Each unit consists of one common share      and one-half common share purchase warrant.  Each whole common      share purchase warrant entitles the holder to purchase an additional      common share at a price of $0.50 per share for a period of two years from      the date of offering.  As at 30 April 2008, none of the share      purchase warrants in this series remain  outstanding. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | During      the year ended 30 April 2006, the Company issued 548,160 common shares      valued at prices in the range of $0.14 and $0.36 per share for total cash      proceeds of $143,411. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | During      the year ended 30 April 2006, the Company issued 40,000 common shares at a      price of $0.25 per share upon the exercise of previously outstanding share      purchase warrants.  As at 30 April 2008, 2,960,000 share      purchase warrants in this series remain  outstanding. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | During      the year ended 30 April 2006, the Company issued 611,048 common shares      valued at a price of $0.29 per share for the acquisition of inventory      (Note 7). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | During      the year ended 30 April 2006, the Company issued 2,418,130 common shares      for services valued at $753,877.  Of this amount, $6,843 was      expensed during the period ended 30 April 2008 (30 April 2007 - $226,098;      Cumulative - $668,669) and the remaining $85,208 was classified as prepaid      expense which will be expensed as the services are received in subsequent      periods. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vii.   | During      the year ended 30 April 2007, the Company issued 114,286 restricted common      shares at a price of $0.21 per share.  These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| viii.   | During      the year ended 30 April 2007, the Company issued 24,513 common shares at a      price of $0.19 per share for consulting  services. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ix.   | During      the year ended 30 April 2007, the Company issued 150,000 common shares at      a price of $0.19 per share for marketing  services. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| x.   | During      the year ended 30 April 2007, the Company issued 33,333 common shares for      legal services valued at $5,000.  Of this amount, $1,140 was      expensed during the period ended 30 April 2008 (30 April 2007 - $2,992;      Cumulative - $4,132) and the remaining $868 was classified as prepaid      expense which will be expensed as the services are received in subsequent      periods. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xi.   | During      the year ended 30 April 2007, the Company issued 57,820 common shares      valued at $5,782 for consultingservices. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

| xii.        | During      the year ended 30 April 2007, the Company issued 69,000 common shares      valued at $6,210 for consultingservices. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------|

| xiii.   | During      the year ended 30 April 2007, the Company issued 75,000 common shares at a      price of $0.10 per share for consulting services.  These shares      are restricted from trading for a period of one year as defined by Rule      144 of the United States Securities Act of1933. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiv.   | During      the year ended 30 April 2007, the Company issued 800,000 common shares at      a price of $0.12 per share for public relations services.  Of      this amount, $55,759 was expensed during the current year (30 April 2007 -      $40,241, Cumulative - $96,000).  These shares are restricted      from trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xv.   | During      the year ended 30 April 2007, the Company issued 192,363 common shares      valued at $15,389 for rent. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| xvi.   | During      the year ended 30 April 2007, the Company issued 135,850 common shares      valued at $10,868 for consultingservices. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| xvii.   | During      the year ended 30 April 2007, the Company issued 93,750 common shares      valued at $7,500 for public relations.  These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xviii.   | During      the year ended 30 April 2007, the Company issued 77,633 common shares      valued at $4,658 for consultingservices. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| xix.   | During      the year ended 30 April 2007, the Company issued 2,500,000 share purchase      warrants to officer and directors of the Company with fair value of      $219,824. Each share purchase warrant entitles the holder to purchase an      additional common share at a price of $0.15 up to 7 December      2011. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xx.   | During      the year ended 30 April 2007, the Company recognized stock compensation      expense of $78,061 on the amendment of the expiry date of 2,000,000      warrants issued on 11 August 2005 to 11 August  2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| xxi.   | During      the year ended 30 April 2007, the Company recognized stock compensation      expense of $116,825 on the amendment of the expiry date of 3,000,000      warrants issued on 24 August 2005 to 24 August  2009. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxii.   | During      the period ended 30 April 2008, the Company issued 1,580,000 private      placement restricted common shares at a price of $0.05 per share for total      cash proceeds of $78,000.  These shares are restricted from      trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiii. | During the period ended 30 April 2008, the      Company issued 200,000 common shares valued at $0.02 per share for      consulting services.  Of this amount, $4,000 was expensed during      the period. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxiv.   | During      the period ended 30 April 2008, the Company issued 1,000,000 common shares      valued at $0.05 per share for consulting services.  Of this      amount, $25,546 was expensed during the period (30 April 2007 - $nil,      Cumulative - $25,546), and the remaining $24,454 was classified as prepaid      expense which will be expensed as the consulting services are received in      subsequent periods. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxv.   | During      the period ended 30 April 2008, the Company issued 300,000 common shares      valued at $0.05 per share for public relations services.  These      shares are restricted from trading for a period of one year as defined by      Rule 144 of the United States Securities Act of 1933. Of this amount,      $15,000 was expensed during the prioryear. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxvi.   | During      the period ended 30 April 2008, the Company issued 200,000 common shares      valued at $0.02 per share for $4,000 for consulting    services. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxvii.   | During      the period ended 30 April 2008, the Company issued 380,000 share purchase      warrants with a fair value of $5,383.  Each share purchase      warrant entitles the holder to purchase an additional common share at a      price of $0.25 up to 6 September2012. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxviii.   | During      the period ended 30 April 2008, the Company issued 128,538 common shares      valued at $0.13 per share for $16,710 for consulting      services.  Of this amount, $16,067 was expensed during the      period (30 April 2007 - $nil, Cumulative - $16,067), and the remaining      $643 was classified as prepaid expense which will be expensed as the      consulting services are received in subsequent  periods. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxix.   | During      the period ended 30 April 2008, the Company issued 84,211 common shares      valued at $0.09 per share for $8,000 for consulting    services. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxx.   | During      the period ended 30 April 2008, the Company issued 29,474 common shares      valued at $0.09 per share for $2,800 for consulting      services.  Of this amount, $2,692 was expensed during the period      (30 April 2007 - $nil, Cumulative - $2,692), and the remaining $108 was      classified as prepaid expense which will be expensed as the consulting      services are received in subsequentperiods. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxi.   | During      the period ended 30 April 2008, the Company issued 666,666 units at a      price of $0.15 per unit for total cash proceeds of      $100,000.  Each unit consists of one restricted common share and      one-half common share purchase warrant.  Each whole common share      purchase warrant entitles the holder to purchase an additional common      share at a price of $0.25 per share for a period of five years from the      date of offering with a fair value of $25,793.  As at 30 April      2008, 333,334 of the share purchase warrants in this series remain      outstanding. These shares are restricted from trading for a period of one      year as defined by Rule 144 of the United States Securities Act of      1933. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxii.   | During      the period ended 30 April 2008, the Company issued 333,334 units at a      price of $0.15 per unit for total cash proceeds of      $50,000.  Each unit consists of one restricted common share and      one common share purchase warrant.  Each whole common share      purchase warrant entitles the holder to purchase an additional common      share at a price of $0.25 per share for a period of five years from the      date of offering with a fair value of $22,463.  As at 30 April      2008, 333,334 of the share purchase warrants in this series remain      outstanding. These shares are restricted from trading for a period of one      year as defined by Rule 144 of the United States Securities Act of      1933. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiii.   | During      the period ended 30 April 2008, the Company issued 100,000 common shares      valued at $0.08 per share for $8,000 for consulting    services. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiv.   | During      the period ended 30 April 2008, the Company issued 133,333 common shares      valued at $0.06 per share for $8,000 for consulting    services. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxv.   | During      the period ended 30 April 2008, the Company issued 1,000,000 units valued      at $0.06 per unit for consulting services.  Each unit consists      of one restricted common share and one common share purchase      warrant.  Each whole common share purchase warrant entitles the      holder to purchase an additional common share at a price of $0.15 per      share for a period of five years from the date of offering with a fair      value of $60,664.  As at 30 April 2008, 1,000,000 of the share      purchase warrants in this series remain outstanding. These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Date      Issued       |   | Numberof      shares |   | Value     |   | Priceper      share                | Service                 |
|------------------------|--------|----------------------|--------|-----------|--------|------------------------------------|-------------------------|
|                   |   |                 |   | $         |   | $                                  |                    |
| 24      August 2005    |   | 250,000              |   | 95,000    |   | 0.38                               | Consulting*             |
| 24      August 2005    |   | 25,000               |   | 9,500     |   | 0.38                               | Computer      and IT    |
| 24      August 2005    |   | 50,000               |   | 19,000    |   | 0.38                               | Public      relations   |
| 24      August 2005    |   | 25,000               |   | 9,500     |   | 0.38                               | Investor      relations |
| 24      August 2005    |   | 300,000              |   | 114,000   |   | 0.38                               | Legal                   |
| 24      August 2005    |   | 250,000              |   | 95,000    |   | 0.38                               | Consulting*             |
| 24      August 2005    |   | 25,000               |   | 9,500     |   | 0.38                               | Accounting              |
| 28      September 2005 |   | 104,171              |   | 29,168    |   | 0.28                               | Investor      relations |
| 29      September 2005 |   | 100,000              |   | 25,000    |   | 0.25                               | Consulting              |
| 29      September 2005 |   | 150,000              |   | 37,500    |   | 0.25                               | Consulting*             |
| 27      October 2005   |   | 327,586              |   | 95,000    |   | 0.29                               | Investor      relations |
| 28      October 2005   |   | 99,360               |   | 24,840    |   | 0.25                               | Rent                    |
| 1      November 2005   |   | 50,000               |   | 14,000    |   | 0.28                               | Public      relations   |
| 1      November 2005   |   | 125,000              |   | 35,000    |   | 0.28                               | Consulting              |
| 2      November 2005   |   | 80,000               |   | 23,200    |   | 0.29                               | Consulting              |
| 14      November 2005  |   | 100,000              |   | 50,000    |   | 0.50                               | Printing                |
| 12      January 2006   |   | 250,000              |   | 37,500    |   | 0.15                               | Consulting              |
| 12      January 2006   |   | 16,667               |   | 2,500     |   | 0.15                               | Legal                   |
| 25      January 2006   |   | 68,287               |   | 21,169    |   | 0.31                               | Commission      bonus   |
| 7      February 2006   |   | 22,059               |   | 7,500     |   | 0.34                               | Consulting              |
| 30      June 2006      |   | 24,513               |   | 4,658     |   | 0.19                               | Consulting              |
| 3      July 2006       |   | 150,000              |   | 28,500    |   | 0.19                               | Investor      relations |
| 10      August 2006    |   | 33,333               |   | 5,000     |   | 0.15                               | Legal                   |
| 3      October 2006    |   | 57,820               |   | 5,782     |   | 0.10                               | Consulting              |
| 20      October 2006   |   | 69,000               |   | 6,210     |   | 0.09                               | Consulting              |
| 10      November 2006  |   | 75,000               |   | 7,500     |   | 0.10                               | Public      relations   |
| 29      November 2006  |   | 800,000              |   | 96,000    |   | 0.12                               | Public      relations   |
| 22      December 2006  |   | 192,363              |   | 15,389    |   | 0.08                               | Rent                    |
| 2      January 2007    |   | 135,850              |   | 10,868    |   | 0.08                               | Consulting              |
| 7      February 2007   |   | 93,750               |   | 7,500     |   | 0.08                               | Public      relations   |
| 3      April 2007      |   | 77,633               |   | 4,658     |   | 0.06                               | Consulting              |
| 29      October 2007   |   | 400,000              |   | 8,000     |   |      0.02 | Consulting*             |
| 30      October 2007   |   | 1,000,000            |   | 50,000    |   | 0.05                               | Consulting              |
| 30      October 2007   |   | 300,000              |   | 15,000    |   | 0.05                               | Public      relations   |
| 9      November 2007   |   | 128,538              |   | 16,710    |   | 0.13                               | Consulting              |
| 10      December 2007  |   | 84,211               |   | 8,000     |   | 0.09                               | Consulting*             |
| 11      December 2007  |   | 29,474               |   | 2,800     |   | 0.09                               | Consulting              |
| 7      February 2008   |   | 100,000              |   | 8,000     |   | 0.08                               | Consulting*             |
| 1      April 2008      |   | 133,333              |   | 8,000     |   | 0.06                               | Consulting*             |
| 1      April 2008      |   | 1,000,000            |   | 60,000    |   | 0.06                               | Consulting*             |
| Total                  |   | 7,302,948            |   | 1,122,452 |   |                               |                    |

----

|     |   | Exercise      price |   | Numberof      warrants |   | Remainingcontractual      life (years) |
|----------|--------|---------------------|--------|------------------------|--------|----------------------------------------|
|     |   | $                   |   |                   |   |                                   |
|     |   |                |   |                   |   |                                   |
| Warrants |   | 0.25                |   | 2,960,000              |   | 2.71                                   |
| Warrants |   | 0.15                |   | 2,500,000              |   | 3.61                                   |
| Warrants |   | 0.25                |   | 380,000                |   | 4.35                                   |
| Warrants |   | 0.25                |   | 333,334                |   | 4.73                                   |
| Warrants |   | 0.15                |   | 1,000,000              |   | 4.92                                   |
| Warrants |   | 0.25                |   | 333,334                |   | 4.94                                   |
|     |   |                |   |                   |   |                                   |
|     |   |                |   | 7,506,668              |   |                                   |

|                                                                                            |   | Number      of warrants |   | Weighted      average exercise price |
|-------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                                            |   |                    |   | $                                    |
|                                                                                            |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2006                                               |   | 14,462,160              |   | 0.45                                 |
|                                                                                            |   |                    |   |                                 |
| Granted                                                                                         |   | 2,500,000               |   | 0.15                                 |
| Exercised                                                                                       |   | -                       |   | -                                    |
| Expired                                                                                         |   | (5,000,000)             |   | 0.50                                 |
|                                                                                            |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2007                                               |   | 11,962,160              |   | 0.45                                 |
|                                                                                            |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the year ended 30 April      2007   |   |                    |   | 0.09                                 |
|                                                                                            |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2007                                               |   | 11,962,160              |   | 0.45                                 |
|                                                                                            |   |                    |   |                                 |
| Granted                                                                                         |   | 2,046,668               |   | 0.20                                 |
| Exercised                                                                                       |   | -                       |   | -                                    |
| Expired                                                                                         |   | (6,502,160)             |   | 0.50                                 |
|                                                                                            |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2008                                               |   | 7,506,668               |   | 0.34                                 |
|                                                                                            |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the period ended 30 April      2008 |   |                    |   | 0.06                                 |

----

|                         |   |   |   | As      at 30April 2008 |   | As      at 30April 2007 |
|------------------------------|--------|--------|--------|------------------------------|--------|------------------------------|
|                         |   |   |   |                         |   |                         |
| Risk      free interest rate |   |   |   | 2.65      % - 3.72%          |   | 4.04      – 4.82%      |
| Expected      life           |   |   |   | 5.0      years               |   | 2.0      – 5.0 years   |
| Annualized      volatility   |   |   |   | 119%      - 150%             |   | 117      – 141%        |
| Expected      dividends      |   |   |   | -                            |   | -                            |

| 11.        | Income      Taxes |
|-----------------|-------------------|

|                                                            |   | For      the year ended 30      April 2008 |   | For      the year ended 30      April2007 |
|-----------------------------------------------------------------|--------|-----------------------------------------------------------|--------|-----------------------------------------------------|
|                                                            |   | $                                                         |   | $                                                   |
|                                                            |   |                                                      |   |                                                |
| Deferred      tax asset attributable to:                        |   |                                                      |   |                                                |
| Current      operations                                         |   | 195,871                                                   |   | 293,618                                             |
| Contributions      to capital by related party – expenses |   | (34,000)                                                  |   | (34,000)                                            |
| Stock-based      compensation                                   |   | (20,626)                                                  |   | (141,002)                                           |
| Less:      Change in valuation allowance                        |   | (141,245)                                                 |   | (118,616)                                           |
|                                                            |   |                                                      |   |                                                |
| Net      refundable amount                                      |   | -                                                         |   | -                                                   |

|                                   |   | As      at30      April 2008 |   | As      at30      April 2007 |
|----------------------------------------|--------|-----------------------------------|--------|------------------------------|
|                                   |   | $                                 |   | $                            |
|                                   |   |                              |   |                         |
| Net      operating loss carry forward  |   | 2,045,154                         |   | 1,629,726                    |
|                                   |   |                              |   |                         |
| Statutory      federal income tax rate |   | 34%                               |   | 34%                          |
| Effective      income tax rate         |   | 0%                                |   | 0%                           |
|                                   |   |                              |   |                         |
| Deferred      tax asset                |   | 695,352                           |   | (554,107)                    |
| Less:      Valuation allowance         |   | (695,352)                         |   | (554,107)                    |
|                                   |   |                              |   |                         |
| Net      deferred tax asset            |   | -                                 |   | -                            |

----

| i.   | On      30 March 2004, the Company entered into a loan agreement, as amended, for      $500,000, of which $350,000 was received by November 30,      2004.  During the 2006 fiscal year, the principal portion of the      loan was paid out in full.  The loan was secured by all the      assets of the Company, bore interest at 5% per annum and was payable on      demand.  Accrued interest on the loan has been calculated at      $11,705; however, this amount has not yet been paid to the      lender. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | On      30 April 2007, the Company entered into a convertible promissory note      agreement, for $10,000 cash.  The note is non-interest bearing,      unsecured and repayable in cash or 100,000 shares by 13 November      2008. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | On      15 November 2007,      the Company filed its intention to register 5,000,000 common shares      of the Company to be covered under S8 Registration for future issuances to      any and all consultants, employees, attorneys, officers and directors of      the Company at a proposed maximum offering price of $0.09 per common share      (Note 13). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | For      the period from the date of inception on 2 September 2003 to30      April2008(Unaudited) |   |      For      theyear      ended30      April 2008 |   |      For      theyear      ended30      April 2007 |
|-------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
|                                            |   | $                                                                                                 |   | $                                                                           |   | $                                                                           |
|                                            |   |                                                                                              |   |                                                                        |   |                                                                        |
| Cash      paid during the year for interest     |   | 11,362                                                                                            |   | -                                                                           |   | -                                                                           |
| Cash      paid during the year for income taxes |   | -                                                                                                 |   | -                                                                           |   | -                                                                           |

|   | The      Company was named in the lawsuit as a defendant versus a former consultant      for the breach of contract. On 3 June 2008, the law suit was resolved      (Note 15). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| i.   | The      Company issued 50,000 common shares valued at $4,000 for consulting      services ($0.08 per common share). |
|----------------|----------------------------------------------------------------------------------------------------------------------|

| ii.   | The      Company issued 320,000 common shares valued at $96,000 for investor      relations ($0.30 per common share).  These shares are restricted      from trading for a period of one year as defined by Rule 144 of the United      States Securities Act of 1933. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | The      Company issued 800,000 common shares valued at $0.08 per share for $64,000      and 800,000 warrants valued at $64,000 for compensation to the chief      executive officer of the company. Each warrant entitles the holder to      purchase one additional common share of the Company at a cost of $0.15      expiring 12 May 2013. These shares are restricted from trading for a      period of one year as defined by Rule 144 of the United States Securities      Act of 1933. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | The      Company signed a term sheet to acquire 51 percent majority interest in      Hikom Gottel Corporation for US $25,000,000 in cash and stock options. The      final purchase price is subject to an independent audit, which will be      carried out during the acquisitionproceedings. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | The      lawsuit that the Company was in as a defendant was resolved with no      financial damages for the Company (Note14). |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

----

| STALEY,      OKADA & PARTNERSCHARTERED      ACCOUNTANTS | Suite      400 - 889 West Pender StreetVancouver,      BC Canada V6C 3B2Tel      604 694-6070Fax      604 585-8377info@staleyokada.comwww.staleyokada.com |
|-------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| Vancouver,      BC, Canada                                                  | STALEY,      OKADA & PARTNERS |
|-----------------------------------------------------------------------------|-----------------------------------|
| July      7, 2006 (except as to      Note 12, which is as of July 18, 2006) | CHARTERED      ACCOUNTANTS        |

----