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

----

----

|          |                                                                                                                             | Page     |
|---------------|----------------------------------------------------------------------------------------------------------------------------------|----------|
|          | PART      I                                                                                                                      |     |
|          |                                                                                                                             |     |
| ITEM      1.  | Description      of Business                                                                                                     | 4        |
|          |                                                                                                                             |     |
| ITEM      1A. | Risk      Factors                                                                                                                |  9  |
|          |                                                                                                                             |     |
| ITEM      1B. |  Unresolved      Staff Comments                                                                                             |  11 |
|          |                                                                                                                             |     |
| ITEM      2.  | Description      of Properties                                                                                                   | 11       |
|          |                                                                                                                             |     |
| ITEM      3.  | Legal      Proceedings                                                                                                           | 11       |
|          |                                                                                                                             |     |
| ITEM      4.  | Submission      of Matters to a Vote of Security Holders                                                                         | 11       |
|          |                                                                                                                             |     |
|          |                                                                                                                             |     |
|          | PART      II                                                                                                                     |     |
|          |                                                                                                                             |     |
| ITEM      5.  | Market      for the Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 12       |
|          |                                                                                                                             |     |
| ITEM      6.  | Selected      Financial Data                                                                                                     | 15       |
|          |                                                                                                                             |     |
| ITEM      7.  | Management's      Discussion and Analysis of Financial Condition and Results of      Operations                                  | 15       |
|          |                                                                                                                             |     |
| ITEM      7A. | Quantitative      and Qualitative Disclosures About Market Risk                                                                  |  17 |
|          |                                                                                                                             |     |
| ITEM      8.  | Financial      Statements and Supplementary Data                                                                                 | 17       |
|          |                                                                                                                             |     |
| ITEM      9.  |  Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                             |  17 |
|          |                                                                                                                             |     |
| ITEM      9A. | Controls      and Procedures                                                                                                     | 17       |
|          |                                                                                                                             |     |
| ITEM      9B. | Other      Information                                                                                                           | 18       |
|          |                                                                                                                             |     |
|          |                                                                                                                             |     |
|          | PART      III                                                                                                                    |     |
|          |                                                                                                                             |     |
| ITEM      10. | Directors,      Executive Officers and Corporate Governance                                                                      | 18       |
|          |                                                                                                                             |     |
| ITEM      11. | Executive      Compensation                                                                                                      | 19       |
|          |                                                                                                                             |     |
| ITEM      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                         | 20       |
|          |                                                                                                                             |     |
| ITEM      13. | Certain      Relationships and Related Transactions, and Director      Independence                                              | 21       |
|          |                                                                                                                             |     |
| ITEM      14. |  Principal      Accounting Fees and Services                                                                                |  21 |
|          |                                                                                                                             |     |
|          |  PART IV                                                                                                                    |     |
|          |                                                                                                                             |     |
| ITEM      15. | Exhibit      List and Reports on Form 8-K                                                                                        | 22       |
|          |                                                                                                                             |     |
|          |  Signatures                                                                                                                 | 22       |

----

----

----

| -          High power marine outboard motors |
|------------------------------------------------------------------|

| -          Auxiliary-power units for the truckingindustry |
|-------------------------------------------------------------------------------|

| 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. Risk Factors 

----

----

----

|                                           |   |                                           |      |    |   |   | Fiscal      Years Ending  April 30, 2009 and 2008 |    |   |
|------------------------------------------------|--------|------------------------------------------------|-----------|---------|--------|--------|-------------------------------------------------------------|---------|--------|
| RTBC,      formerly ROTB - ROTOBLOCK      CORP |   |                                           |      |    |   |   |                                                        |    |   |   |   |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
|                                           |   |                                           | BID       |    |   |   | ASK                                                         |    |   |   | PRICE |   |   |
| END      DATE                                  |   | HIGH                                           | LOW       | CLOSE   |   | HIGH   | LOW                                                         | CLOSE   |   | HIGH | LOW | CLOSE | VOLUME |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
|  4/30/2009                                |   |        1.75 | .55       |  0 |   | 2.50   | .60                                                         |  0 |   | 2.50 | .55 | 1.00 |  20,067 |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
|  1/30/2009                                |   | 2.50                                           |  .55 |  0 |   | 3.50   | 1.00                                                        |  0 |   | 3.50 | .55 | 1.00 | 43,751 |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
|  10/31/2008                               |   | 4.75                                           | 2.00      |  0 |   | 5.00   | 2.75                                                        |  0 |   | 5.00 | 2.00 | 2.50 |  19,098 |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
|  7/31/2008                                |   | 10.00                                          | 2.50      |  0 |   | 12.00  | 3.50                                                        |  0 |   | 11.00 | 2.50 | 4.25 |  85,075 |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
| 4/30/2008                                      |   | 5.50                                           | 2.75      | 3.85    |   | 6.00   | 3.00                                                        | 4.00    |   | 6.00 | 2.75 | 4.00 | 65,082 |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
| 1/31/2008                                      |   | 6.75                                           | 3.85      | 4.50    |   | 7.50   | 4.35                                                        | 5.50    |   | 7.50 | 3.85 | 5.00 | 92,066 |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
| 10/31/2007                                     |   | 10.00                                          | 1.00      | 6.00    |   | 11.50  | 1.25                                                        | 6.50    |   | 10.50 | 1.00 | 6.50 | 112,311 |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |
| 7/31/2007                                      |   | 2.90                                           | 1.05      | 1.05    |   | 3.10   | 1.25                                                        | 1.05    |   | 3.00 | 1.05 | 1.05 | 40,060 |
|                                           |   |                                           |      |    |   |   |                                                        |    |   |   |   |   |   |

----

|     |   | Exercise      price |   | Numberof      warrants |   | Remaining      contractual      life (years) |
|----------|--------|---------------------|--------|------------------------|--------|----------------------------------------------|
|     |   | $                   |   |                   |   |                                         |
|     |   |                |   |                   |   |                                         |
| Warrants |   | 12.50               |   | 59,200                 |   | 1.71                                         |
| Warrants |   | 7.50                |   | 50,000                 |   | 2.61                                         |
| Warrants |   | 12.50               |   | 7,600                  |   | 3.35                                         |
| Warrants |   | 12.50               |   | 6,667                  |   | 3.73                                         |
| Warrants |   | 7.50                |   | 20,000                 |   | 3.92                                         |
| Warrants |   | 12.50               |   | 6,667                  |   | 3.94                                         |
| Warrants |   | 7.50                |   | 16,000                 |   | 4.03                                         |
| Warrants |   | 12.50               |   | 3,333                  |   | 4.18                                         |
|     |   |                |   |                   |   |                                         |
|     |   |                |   | 169,467                |   |                                         |

|                                                                                          |   | Number      of warrants |   | Weighted      average exercise price |
|-----------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                                          |   |                    |   | $                                    |
|                                                                                          |   |                    |   |                                 |
| Outstanding      and exercisable at 1 May 2007                                                |   | 239,244                 |   | 22.50                                |
|                                                                                          |   |                    |   |                                 |
| Granted                                                                                       |   | 40,933                  |   | 10.00                                |
| Exercised                                                                                     |   | -                       |   | -                                    |
| Expired                                                                                       |   | (130,043)               |   | 25.00                                |
|                                                                                          |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2008                                             |   | 150,134                 |   | 16.93                                |
|                                                                                          |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the year ended 30 April      2008 |   | 2.79                    |
|                                                                                          |   |                    |   |                                 |
| Outstanding      and exercisable at 1 May 2008                                      |   | 150,134                 |   | 16.93                                |
|                                                                                          |   |                    |   |                                 |
| Granted                                                                                       |   | 19,333                  |   | 8.50                                 |
| Exercised                                                                                     |   | -                       |   | -                                    |
| Expired                                                                                       |   | -                       |   | -                                    |
|                                                                                          |   |                    |   |                                 |
| Outstanding      and exercisable at 30 April 2009                                             |   | 169,467                 |   | 15.97                                |
|                                                                                          |   |                    |   |                                 |
| Weighted      average fair value of warrants granted during the year ended 30 April      2009 |   | 8.58                    |

----

|                         |   |   |   | As      at30      April 2009 |   | As      at30      April 2008 |
|------------------------------|--------|--------|--------|-----------------------------------|--------|-----------------------------------|
|                         |   |   |   |                              |   |                              |
| Risk      free interest rate |   |   |   | 3.02      % - 3.28%               |   | 2.65      % - 3.72%               |
| Expected      life           |   |   |   | 5.0      years                    |   | 5.0      years                    |
| Annualized      volatility   |   |   |   | 153%      - 158%                  |   | 119%      - 150%                  |
| Expected      dividends      |   |   |   | -                                 |   | -                                 |

| i.   | During      the fiscal year ended April 30, 2009, we issued 1,000 shares of common      stock valued at $4,000 ($4.00 per share) for consulting      services |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.        | During      the fiscal year ended April 30, 2009, we issued 6,400 shares of      common stock valued at $96,000 ($15.00 per share) for investor      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. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | During      the fiscal year ended April 30, 2009, we issued 16,000 units valued      at $64,000 ($4.00 per share) as compensation to the Chief Executive      Officer of the Company.  Each unit consists of one      restricted share of common stock and one common stock purchase      warrant.  Each warrant entitles the holder to      purchase one additional share of common stock at a price of $7.50 per      share for a period of five years from the date of offering, expiring on      May 12, 2013.  At April 30, 2009, all 16,000 of these      share purchase warrants 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. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | During      the fiscal year ended April 30, 2009, we issued 1,333 shares of common      stock valued at $10,000 ($7.50 per share) for legal      services.   |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | During      the fiscal year ended April 30, 2009, we issued 1,000 shares of      common stock valued at $7,500 ($7.50 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 of1933. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | During      the fiscal year ended April 30, 2009, we issued 3,200 share of common      stock valued at $24,000 ($7.50 per share) for consulting services to a      related party. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vii.   | During      the fiscal year ended April 30, 2009, we issued 5,000 shares of common      stock valued at $27,500 ($5.50 per share) for consulting services to      a related party.   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. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| viii.   | During      the fiscal year ended April 30, 2009, we issued 3,333 units valued      at $7.50  per unit for total cash proceeds of      $25,000.  Each unit consists of one share of restricted common      stock and one common stock purchase warrant.  Each common stock      purchase warrant entitles the holder to purchase one additional share of      common stock at a price of $12.50 per share for a period of five      years from the date of offering, with a fair value of      $18.525.  At April 30,  2009, all 3,333 of      these common stock purchase warrants 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. |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ix.   | During      the fiscal year ended April 30, 2009, we issued 2,000 shares of common      stock valued at $10,000 ($5.00 per share) in repayment for a      convertible promissorynote.   |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| x.   | During the fiscal      year ended April 30, 2009, we issued 2,000 shares of common stock valued      at $6,000 ($3.00 per share) for consulting services. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| xi.   | During      the fiscal year ended April 30, 2009, we issued 200,000 shares of      common stock valued at $1.25 per share for the purchase of land and a      building from a related party, valued at $250,000. Subsequent to the      period, we rescinded the asset purchase and the 200,000 shares were      returned to the Company. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xii.   | During      the fiscal year ended April 30, 2009, we issued 5,000 shares of      common stock valued at  $5,000 ($1.00 per share) for legal      services. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiii.   | During      the fiscal year ended April 30, 2009, we issued 150,000 shares      of common stock valued at $150,000 ($1.00 per share) as a retainer      for consulting services to two related parties. 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.   | On      June 16, 2009, we issued 19,885 shares of common stock valued between      $0.61 and $0.75 for total cash proceeds of $14,000. These shares are      restricted from trading for a period of one year as defined by Rule 144 of      the United States Securities Act of1933. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | On      July 1, 2009, we entered into a one-year consulting agreement with an      individual whereby it was agreed that we issue a total of 500 shares of      common stock valued at $3,750 ($7.50 per share) for these      services. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | On      July 13, 2009, we entered into one-year consulting agreements with five      individuals whereby it was agreed that we issue a total of 2,300 shares of      common stock valued at $17,250 ($7.50 per share) for these      services. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | On      July 17, 2009, we entered into a one-year consulting agreement with two      individuals whereby it was agreed that we issue a total of 1,000 shares of      common stock valued at $7,500 ($7.50 per share) for these      services. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | On      July 21, 2009, we entered into a one-year consulting agreement with an      individual whereby it was agreed that we issue a total of 500 shares      of common stock valued at $3,750 ($7.50 per share) for these      services. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| 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 and Director (1)                                    | November      1, 2007 to present                                                                                                                                                                                      | 38                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 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                                                                                                                                                                                          | 33                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 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                                                                                                                                                                                        | 25                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 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      Chuen Chan, Director                                                                  | September      26,      2005                            52to      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 (1)                                                               | 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 ($) | All      other Compensation (Restricted Shares of Common Stock) |
|                                             |   | FISCAL      YEAR COMPENSATION |   |   |   |   |   |   |
| Name      and Principal Position                 |   | Year | Salary |   | Bonus | Other      Annual Compensation |   |   |   |
|                                             |   |   | ($) |   | ($) |   |   |   |   |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Chien      Chih Liu, Chief Executive Officer     |   | 2009 |  100,000      (1) |   | 0 | 0 |   | 1,000,000 (4) | 100,000 (1)16,000      (2) | 0 |   |
|                                             |   | 2008 | 110,000      (1) |   | 64,000      (2) |   |   | 0 | 40,000      (1) | 0 |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Richard      Di Stefano, Chief Financial Officer | 2009 | 0 |   | 0 | 0 |   | 0 | 0 | 0 | 0 |
|                                             |   | 2008 | 0 |   | 27,500      (3) | 0 |   | 0 | 0 | 0 | 5,000      (3) |
|                                             |   |   |   |   |    |   |   |   |   |   |   |
| Mariya      Petrovska, Secretary                 |   | 2009 | 50,000      (1) |   | 0 | 0 |   | 0 | 50,000      (1) | 0 | 0 |
|                                             |   | 2008 | 0 |   | 2,000      (3) | 0 |   | 0 | 0 | 0 | 2,000      (3) |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Tony      R. Collins, VP of Development          |   | 2009 | 0 |   | 0 | 0 |   | 0 | 0 | 0 | 0 |
|                                             |   | 2008 | 0 |   | 0 | 0 |   | 0 | 0 | 0 | 0 |

There are no other employment agreements, arrangements orunderstandings between any executive officer and any director or other personpursuant to which any person was selected as a director or an executiveofficer.  None of our executive officers and/or directors receive cashrenumeration for their services.

----

| Name      and Title                                | Number      of Securities 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 |   16,000                                            |  100%                                                       | $4.00                           |  May      12, 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                       | 16,000                                                                                                     | $147,446                                             |

| 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 and Director       | 376,000                                            | 34%                                                                                                          |
| 300      B Street                              |                                            |  Direct                                       |                                                                                                         |
| Santa      Rosa, CA.  95401               |                                            |                                               |                                                                                                         |
|                                           |                                            |                                               |                                                                                                         |
| Ching      Chuen Chan                          |  Director                                  |  3,000                                        |                                                                                                         |
| 399      B Street                              |                                            |  Direct                                  |  <1%                                                                                                 |
| Santa      Rosa, CA. 95401                     |                                            |                                               |                                                                                                         |
|                                           |                                            |                                               |                                                                                                         |
| Richard      Di Stefano                        |  Chief      Financial Officer and Director |  5,000                                        |                  <1% |
|  300      B Street                        |                                            |  Direct                                       |                                                                                                         |
| Santa      Rose, CA. 95401                     |                                            |                                               |                                                                                                         |
|                                           |                                            |                                               |                                                                                                         |
| Mariya      Petrovska                          |  Secretary      and Director               | 52,000                                        |        5%                                                                                               |
|  300      B Street                        |                                            | Direct                                        |                                                                                                         |
|  Santa      Rosa, CA. 95401               |                                            |                                               |                                                                                                         |
| All      Officers and Directors as a group (3) |                                            | 436,000                                            | 38.9%                                                                                                        |

----

|   | ·  | 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. |
|--------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

James Stafford

----

|                                                                 |   |                              |   |                              |
|----------------------------------------------------------------------|--------|-----------------------------------|--------|-----------------------------------|
|                                                                 |   |                              |   |                              |
|                                                                 |   | As      at30      April 2009 |   |  As      at30      April2008 |
|                                                                 |   | $                                 |   | $                                 |
| Assets                                                               |   |                              |   |                              |
|                                                                 |   |                              |   |                              |
| Current                                                              |   |                              |   |                              |
| Cash      and cash equivalents                                       |   | 4,786                             |   | 91,947                            |
| Accounts      receivable                                             |   | 183                               |   | 219                               |
| Prepaid      expenses (Note 9)                                       |   | 78,345                            |   | 26,072                            |
|                                                                 |   |                              |   |                              |
|                                                                 |   | 83,314                            |   | 118,238                           |
|                                                                 |   |                              |   |                              |
| Patents (Note      3)                                                |   | 108,745                           |   | 108,745                           |
|                                                                 |   |                              |   |                              |
| Property, plant and      equipment (Note 4)                     |   | 251,526                           |   | -                                 |
|                                                                 |   |                              |   |                              |
|                                                                 |   | 443,585                           |   | 226,983                           |
|                                                                 |   |                              |   |                              |
| Liabilities                                                          |   |                              |   |                              |
|                                                                 |   |                              |   |                              |
| Current                                                              |   |                              |   |                              |
| Accounts      payable and accrued liabilities (Note 5)               |   | 40,770                            |   | 21,986                            |
| Convertible      promissory note payable (Note 6)                    |   | -                                 |   | 10,000                            |
| Due      to related party (Note 8)                                   |   | 551                               |   | 658                               |
| Provision      for legal dispute (Note 12)                           |   | 72,000                            |   | -                                 |
|                                                                 |   |                              |   |                              |
|                                                                 |   | 113,321                           |   | 32,644                            |
|                                                                 |   |                              |   |                              |
| Stockholders’      equity                                      |   |                              |   |                              |
| Capital stock (Note      10)                                         |   |                              |   |                              |
| Authorized                                                           |   |                              |   |                              |
| 200,000,000      common shares, par value $0.001                     |   |                              |   |                              |
| 50,000,000      preferred shares, par value $0.001                   |   |                              |   |                              |
| Issued      and outstanding                                          |   |                              |   |                              |
| 30      April 2009 – 1,120,195 common shares, par value $0.001 |   |                              |   |                              |
| 30      April 2008 – 723,929 common shares, par value $0.001   |   | 1,120                             |   | 724                               |
| Additional      paid-in capital                                      |   | 5,465,365                         |   | 4,705,286                         |
| Warrants                                                             |   | 280,274                           |   | 114,303                           |
| Accumulated      comprehensive loss                                  |   | (4,198)                           |   | (4,268)                           |
| Deficit,      accumulated during the development stage               |   | (5,412,297)                       |   | (4,621,706)                       |
|                                                                 |   |                              |   |                              |
|                                                                 |   | 330,264                           |   | 194,339                           |
|                                                                 |   |                              |   |                              |
|                                                                 |   | 443,585                           |   | 226,983                           |

----

|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
|------------------------------------------------------------------------------------------|---------|--------|---------|---------------------------------------------------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|
|                                                                                     |    |   |    |  For      the period from the date of inception on 2 September 2003 to30      April 2009      (Unaudited) |    |       For      the year ended30      April2009 |   |       For      the year ended30      April2008 |   |       For      the year ended30      April2007 |
|                                                                                     |    |   |    | $                                                                                                                   |    | $                                                                                 |   | $                                                                                 |   | $                                                                                 |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Expenses                                                                                 |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| General      and administrative (Schedule 1)                                             |    |   |    | 5,168,085                                                                                                           |    | 718,591                                                                           |   | 576,091                                                                           |   | 878,582                                                                           |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Net      loss before other items                                                         |    |   |    | (5,168,085)                                                                                                         |    | (718,591)                                                                         |   | (576,091)                                                                         |   | (878,582)                                                                         |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Other      items                                                                         |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Excess      of consideration over net assets purchased from Rotoblock Inc. (Note      1) |    |   |    | (138)                                                                                                               |    | -                                                                                 |   | -                                                                                 |   | -                                                                                 |
| Provision      for legal dispute (Note 12)                                               |    |   |    | (72,000)                                                                                                            |    | (72,000)                                                                          |   | -                                                                                 |   | -                                                                                 |
| Write-off      of property, plant and equipment                                          |    |   |    | (9,870)                                                                                                             |    | -                                                                                 |   | -                                                                                 |   | -                                                                                 |
| Write-off      of related party receivable                                               |    |   |    | (162,204)                                                                                                           |    | -                                                                                 |   | -                                                                                 |   | 15,000                                                                            |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Loss      for the period                                                                 |    |   |    | (5,412,297)                                                                                                         |    | (790,591)                                                                         |   | (576,091)                                                                         |   | (863,582)                                                                         |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Basic      and diluted loss per common share                                             |    |   |    |                                                                                                                |    | (0.90)                                                                            |   | (0.88)                                                                            |   | (1.47)                                                                            |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Weighted      average number of common shares used in per share    calculations          | 881,986 |   | 651,111 |                                                                                                                | 589,404 |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Comprehensive      loss                                                                  |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Loss      for the period                                                                 |    |   |    | (5,412,297)                                                                                                         |    | (790,591)                                                                         |   | (576,091)                                                                         |   | (863,582)                                                                         |
| Foreign      currency translation adjustment                                             |    |   |    | (4,198)                                                                                                             |    | 70                                                                                |   | (10)                                                                              |   | (5)                                                                               |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Comprehensive      loss                                                                  |    |   |    | (5,416,495)                                                                                                         |    | (790,521)                                                                         |   | (576,101)                                                                         |   | (863,587)                                                                         |
|                                                                                     |    |   |    |                                                                                                                |    |                                                                              |   |                                                                              |   |                                                                              |
| Comprehensive      loss per common share                                                 |    |   |    |                                                                                                                |    | (0.90)                                                                            |   | (0.88)                                                                            |   | (1.47)                                                                            |

----

|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |
|----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|------------------------------------------------------------------|-----------------------------------------------------------------|
|                                                                                                                             | For      the period from the date of inception on 2 September 2003 to30      April 2009(Unaudited) |   For      the year ended30      April 2009                                        |     For      the year ended30      April2008 |     For      the yearended30      April2007 |
|                                                                                                                             |                                                                                                    |                 $ |                                                             | $                                                               |   | $ |   | $ |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Cash      used in from operating activities                                                                                      |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Loss      for the period                                                                                                         |                                                                                                    | (5,412,297)                                                                                       |                                                             | (790,591)                                                       |   | (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) | 300,000                                                                                                 |                                                                                              | 100,000                                                          |                                                            | 100,000 |   | 100,000 |
| Depreciation                                                                                                                     |                                                                                                    | 5,382                                                                                             |                                                             | 1,414                                                           |   | - |   | - |
| Non-cash      interest                                                                                                           |                                                                                                    | 11,705                                                                                            |                                                             | -                                                               |   | - |   | - |
| Shares      issued for services (Notes 10 and 13)                                                                                |                                                                                                    | 1,490,378                                                                                         |                                                             | 394,000                                                         |   | 300,256 |   | 307,424 |
| Stock-based      compensation (Notes 10 and 13)                                                                                  |                                                                                                    | 2,523,998                                                                                         |                                                             | 147,446                                                         |   | 60,664 |   | 414,711 |
| Write-off      of property, plant and equipment                                                                             |                                                                                                    | 9,870                                                                                             |                                                             | -                                                               |   | - |   | - |
| Write-off      of related party receivable                                                                                       |                                                                                                    | 177,204                                                                                           |                                                             | -                                                               |   | - |   | - |
| Changes      in operating assets and liabilities                                                                                 |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| (Increase)      decrease in accounts receivable                                                                                  |                                                                                                    | (183)                                                                                             |                                                             | 36                                                              |   | (20) |   | 487 |
| Decrease      in prepaid expenses                                                                                                |                                                                                                    | (52,273)                                                                                          |                                                             | (52,273)                                                        |   | - |   | 1,369 |
| Increase      (decrease) in accounts payable and accrued liabilities                                                             |                                                                                                    | 29,067                                                                                            |                                                             | 18,784                                                          |   | (22,394) |   | 5,193 |
| Increase      in provision for legal dispute (Note 12)                                                                           |                                                                                                    | 72,000                                                                                            |                                                             | 72,000                                                          |   | - |   | - |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
|                                                                                                                             |                                                                                                    | (845,149)                                                                                         |                                                             | (109,184)                                                       |   | (137,585) |   | (34,398) |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Cash      flows used in investing activities                                                                                     |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Purchase      of equipment (Note 4)                                                                                              |                                                                                                    | (16,778)                                                                                          |                                                             | (2,940)                                                         |   | - |   | - |
| Purchase      of patents                                                                                                         |                                                                                                    | (108,745)                                                                                         |                                                             | -                                                               |   | - |   | - |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
|                                                                                                                             |                                                                                                    | (125,523)                                                                                         |                                                             | (2,940)                                                         |   | - |   | - |
| Cash      flows from financing activities                                                                                        |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Common      shares issued for cash (Note 10)                                                                                     |                                                                                                    | 886,941                                                                                           |                                                             | 6,475                                                           |   | 174,361 |   | 24,000 |
| Warrants      granted for cash (Note 10)                                                                                         |                                                                                                    | 72,164                                                                                            |                                                             | 18,525                                                          |   | 53,639 |   | - |
| Warrants      exercised                                                                                                          |                                                                                                    | 10,000                                                                                            |                                                             | -                                                               |   | - |   | - |
| Convertible      promissory note payable                                                                                         |                                                                                                    | 10,000                                                                                            |                                                             | -                                                               |   | - |   | 10,000 |
| Increase      (decrease) in due to related party (Note 8)                                                                        |                                                                                                    | 551                                                                                               |                                                             | (107)                                                           |   | 60 |   | 1 |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
|                                                                                                                             |                                                                                                    | 979,656                                                                                           |                                                             | 24,893                                                          |   | 228,060 |   | 34,001 |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Foreign      exchange effect on cash                                                                                             |                                                                                                    | (4,198)                                                                                           |                                                             | 70                                                              |   | (10) |   | (5) |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Increase      (decrease) in cash and cash equivalents                                                                            |                                                                                                    | 4,786                                                                                             |                                                             | (87,161)                                                        |   | 90,465 |   | (402) |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                                                              |                                                                                                    | -                                                                                                 |                                                             | 91,947                                                          |   | 1,482 |   | 1,884 |
|                                                                                                                             |                                                                                                    |                                                                                              |                                                             |                                                            |   |   |   |   |
| Cash      and cash equivalents, end of period                                                                                    |                                                                                                    | 4,786                                                                                             |                                                             | 4,786                                                           |   | 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 (inception)                                                                                              | -                            |         | -                               |     | -                                               |                                                  | -                               |   | - |   | - |   | - |
| Shares issued for      cash                                                                                                               |                         | 140,000      |                            | -        |                                            | 534                                                   |                            | - |   | - |   | - |   | 534 |
| Shares issued for      cash                                                                                                               |                         | 4,000        |                            | -        |                                            | 38,130                                                |                            | - |   | - |   | - |   | 38,130 |
| Adjustment to number of shares      issued as a result of the acquisition of net assets of Rotoblock Inc.      (Note 1)                   | (144,000)                    |         | -                               |     | -                                               |                                                  | -                               |   | - |   | - |   | - |
| Shares      issued in connection with the acquisition of net assets of Rotoblock Inc.      (Note 1)                                       |                         | 300,000      |                            | 300      |                                            | (300)                                                 |                            | - |   | - |   | - |   | - |
|          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)                                                                                                 | 300,000                      |         | 300                             |     | 38,364                                          |                                                  | -                               |   | (1,918) |   | (108,581) |   | (71,835) |
|     Shares      issued for cash ($2.50 per share)                                                                     | 200,000                      |         | 200                             |     | 499,800                                         |                                                  | -                               |   | - |   | - |   | 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)                                                                                                 | 500,000                      |         | 500                             |     | 538,164                                         |                                                  | -                               |   | (3,303) |   | (414,774) |   | 120,587 |
|     Shares      issued for cash ($13.08 per share)                                                                    | 10,963                       |         | 11                              |     | 143,430                                         |                                                  | -                               |   | - |   | - |   | 143,441 |
|     Shares issued      for services rendered ($15.59 per share)                                                            |                         | 48,363       |                            | 48       |                                            | 753,829                                               |                            | - |   | - |   | - |   | 753,877 |
| Shares      issued for inventory ($14.50 per share)                                                                                       |                         | 12,221       |                            | 12       |                                            | 177,192                                               |                            | - |   | - |   | - |   | 177,204 |
|          Warrants exercised ($12.50 per share)                                                                             | 800                          |         | 1                               |     | 9,999                                           |                                                  | -                               |   | - |   | - |   | 10,000 |
| Stock-based      compensation                                                                                                             |                         | -            |                            | -        |                                            | 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 (Unaudited)                                                                                                 |                         | 572,347      |                            | 572      |                                            | 3,523,791                                             |                            | - |   | (4,253) |   | (3,182,033) |   | 338,077 |
| Shares      issued for cash ($10.50 per share) (Note 10)                                                                                  |                         | 2,286        |                            | 2        |                                            | 23,998                                                |                            | - |   | - |   | - |   | 24,000 |
|     Shares issued      for services rendered ($5.62 per share) (Note 10)                                                   |                         | 34,185       |                            | 34       |                                            | 192,031                                               |                            | - |   | - |   | - |   | 192,065 |
| Contribution      to capital by related parties – services                                                                          |                         | -            |                            | -        |                                            | 100,000                                               |                            | - |   | - |   | - |   | 100,000 |
| Stock-based      compensation                                                                                                             |                         | -            |                            | -        |                                            | 414,711                                               |                            | - |   | - |   | - |   | 414,711 |
| Foreign      currency translation adjustment                                                                                              | -                            |         | -                               |     | -                                               |                                                  | -                               |   | (5) |   | - |   | (5) |
| Net loss for the      year                                                                                                                |                         | -            |                            | -        |                                            | -                                                     |                            | - |   | - |   | (863,582) |   | (863,582) |
|                                                                                                                                      |                         |         |                            |     |                                            |                                                  |                            |   |   |   |   |   |   |   |
| Balance      at 30 April 2007                                                                                                             |                         | 608,818      |                            | 608      |                                            | 4,254,531                                             |                            | - |   | (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                                                                        |                         | 608,818      |                            | 608                              |                                | 4,254,531                                                   |                                                                                              | - |   | (4,258) |   | (4,045,615) |   | 205,266 |
| Shares issued for cash ($3.38      per share) (Note 10)                                              |                         | 51,600       |                            | 52                               |                                | 174,309                                                     |                                                                                              |  - |   | - |   | - |   | 174,361 |
|     Warrants      granted                                                        |                         | -            |                            | -                                |                                | -                                                           |                                                                                              | 53,639 |   |   |   |   |   | 53,639 |
|          Shares issued for services rendered ($2.78 per share) (Notes 10 and      13) |                         | 63,511       |                            | 64                               |                                | 176,446                                                     |                                                                                              |  - |   | - |   | - |   | 176,510 |
| Contribution      to capital by related parties – services (Notes 9 and 13)                    |                         | -            |                            | -                                |                                | 100,000                                                     |                                                                                              |  - |   | - |   | - |   | 100,000 |
| Stock-based      compensation (Notes10      and 13)                                                  |                         | -            |                            | -                                |                                | -                                                           |                                                                                              | 60,664 |   | - |   | - |   | 60,664 |
|          Foreign currency translation adjustment                                      |                         | -            |                            | -                                |                                | -                                                           |                                                                                              | - |   | (10) |   | - |   | (10) |
| Net      loss for the year                                                                           |                         | -            |                            | -                                |                                | -                                                           |                                                                                              | - |   | - |   | (576,091) |   | (576,091) |
|                                                                                                 |                         |         |                            |                             |                                |                                                        |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 30 April 2008                                                                        |                         | 723,929      |                            | 724                              |                                | 4,705,286                                                   |                                                                                              | 114,303 |   | (4,268) |   | (4,621,706) |   | 194,339 |
| Shares      issued for cash ($1.94 per share) (Note 10)                                              |                         | 3,333        |                            | 3                                |                                | 6,472                                                       |                                                                                              |  - |   | - |   | - |   | 6,475 |
| Warrants      granted (Note 10)                                                                      |                         | -            |                            | -                                |                                | -                                                           |                                                                                              | 18,525 |   |   |   |   |   | 18,525 |
| Shares      issued for services rendered ($1.87 per share) (Note 10)                                 |                         | 190,933      |                            | 191                              |                                | 393,809                                                     |                                                                                              |  - |   | - |   | - |   | 394,000 |
| Shares      issued for property ($1.25 per share) (Notes 4, 9, 10, and    13)                        |                         | 200,000      |                            | 200                              |                                | 249,800                                                     |                                                                                              |  - |   | - |   | - |   | 250,000 |
| Shares      issued for debt ($5.00 per share)  (Notes 6 and    10)                         |                         | 2,000        |                            | 2                                |                                | 9,998                                                       |                                                                                              | - |   | - |   | - |   | 10,000 |
| Contribution      to capital by related parties – services (Notes 10 and 13)                   |                         | -            |                            | -                                |                                | 100,000                                                     |                                                                                              |  - |   | - |   | - |   | 100,000 |
| Stock-based      compensation(Notes      9, 10 and 13)                                               |                         | -            |                            | -                                |                                | -                                                           |                                                                                              |  147,446 |   | - |   | - |   | 147,446 |
|          Foreign currency translation adjustment                                      | -                            |         | -                               |                             | -                                   |                                                        | -                                                                                                 |   | 70 |   | - |   | 70 |
| Net      loss for the year                                                                           |                         | -            |                            | -                                |                                | -                                                           |                                                                                              | - |   | - |   | (790,591) |   | (790,591) |
|                                                                                                 |                         |         |                            |                             |                                |                                                        |                                                                                              |   |   |   |   |   |   |   |
| Balance      at 30 April 2009                                                                        |                         | 1,120,195    |                            | 1,120                            |                                | 5,465,365                                                   |                                                                                              | 280,274 |   | (4,198) |   | (5,412,297) |   | 330,264 |

----

|                                               |   |                                                                                                    |                                           |                                           |                                     |
|----------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|------------------------------------------------|------------------------------------------------|------------------------------------------|
|                                               |   | For      the period from the date of inception on 2 September 2003 to30      April 2009(Unaudited) | For      the year ended30      April 2009 | For      the year ended30      April 2008 | For      the year ended30      April2007 |
|                                               |   |                                                                                                    |                                           | $                                              |                                     | $ |   | $ |   | $ |
|                                               |   |                                                                                                    |                                           |                                           |                                     |   |   |   |   |   |
| Consulting      fees (Notes 9, 10 and 13)          |   |                                                                                                    |                                           | 865,677                                        |                                     | 197,905 |   | 207,320 |   | 114,935 |
| Depreciation                                       |   |                                                                                                    |                                           | 5,382                                          |                                     | 1,414 |   | - |   | - |
| Foreign      exchange loss                         |   |                                                                                                    |                                           | 1,545                                          |                                     | - |   | - |   | 195 |
| Interest                                           |   |                                                                                                    |                                           | 16,723                                         |                                     | 265 |   | 714 |   | 540 |
| Investor      relations (Notes 10 and 13)          |   |                                                                                                    |                                           | 239,878                                        |                                     | 96,000 |   | - |   | 45,358 |
| Listing,      filing and transfer agent fees       |   |                                                                                                    |                                           | 47,913                                         |                                     | 11,465 |   | 7,865 |   | 7,294 |
| Management      fees (Notes 9 and 13)              |   |                                                                                                    |                                           | 300,000                                        |                                     | 100,000 |   | 100,000 |   | 100,000 |
| Office      and sundry                             |   |                                                                                                    |                                           | 60,521                                         |                                     | 11,709 |   | 6,425 |   | 4,672 |
| Professional      fees                             |   |                                                                                                    |                                           | 407,273                                        |                                     | 76,935 |   | 143,908 |   | 64,562 |
| Public      relations and shareholder information  |   | 181,437                                                                                                 |                                           | 37,033                                         |                                     | 3,495 |   | 96,679 |
| Rent                                               |   |                                                                                                    |                                           | 79,205                                         |                                     | - |   | - |   | 27,861 |
| Research      and development                      |   |                                                                                                    |                                           | 314,256                                        |                                     | - |   | - |   | 418 |
| Stock-based      compensation (Notes 9, 10 and 13) |   | 2,523,998                                                                                               |                                           | 147,446                                        |                                     | 60,664 |   | 414,711 |
| Travel      and entertainment                      |   |                                                                                                    |                                           | 124,277                                        |                                     | 38,419 |   | 45,700 |   | 1,357 |
|                                               |   |                                                                                                    |                                           |                                           |                                     |   |   |   |   |   |
|                                               |   |                                                                                                    |                                           | 5,168,085                                      |                                     | 718,591 |   | 576,091 |   | 878,582 |

----

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

----

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

Basis of presentation

----

----

|   | Property,      plant, equipment and depreciation |
|--------|--------------------------------------------------|

----

----

----

----

----

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

|                                                  |   | Balance      at30      April 2009 |   | Balance      at30      April 2008 |
|-------------------------------------------------------|--------|----------------------------------------|--------|----------------------------------------|
|                                                  |   | $                                      |   | $                                      |
|                                                  |   |                                   |   |                                   |
|     Patent      costs to date     |   | 108,745                                |   | 108,745                                |
|     Accumulated      depreciation |   | -                                      |   | -                                      |
|                                                  |   |                                   |   |                                   |
|                                                  |   | 108,745                                |   | 108,745                                |

| 4.   | Property,      plant and equipment |
|----------------|-----------------------------------------|

|                              |   |    |   | Accumulated       depreciation |               | Net      book value |
|-----------------------------------|--------|---------|--------|-------------------------------------|--------------------|---------------------|
|                              |   | Cost    |   |                                | 30      April 2009 |                | 30      April 2008 |
|                              |   | $       |   | $                                   |               | $                   |   | $ |
|                              |   |    |   |                                |               |                |   |   |
|     Equipment |   | 2,940   |   | 538                                 |               | 2,402               |   | - |
|     Property  |   | 68,750  |   | 876                                 |               | 67,874              |   | - |
|     Land      |   | 181,250 |   | -                                   |               | 181,250             |   | - |
|                              |   |    |   |                                |               |                |   |   |
|                              |   | 252,940 |   | 1,414                               |               | 251,526             |   | - |

----

| 5.   | Accounts Payable and Accrued      Liabilities |
|----------------|-----------------------------------------------|

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

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

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

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

----

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

| i.   | During      the year ended 30 April 2007, the Company issued 2,286 restricted common      shares at a price of $10.50 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. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | During      the year ended 30 April 2007, the Company issued 490 common shares at a      price of $9.50 per share for consulting  services. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | During      the year ended 30 April 2007, the Company issued 3,000 common shares at a      price of $9.50 per share for marketingservices. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | During      the year ended 30 April 2007, the Company issued 667 common shares for      legal services valued at $5,000.  Of this amount, $868 was      expensed during the year ended 30 April 2009 (30 April 2008 - $1,140;      cumulative - $5,000). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | During      the year ended 30 April 2007, the Company issued 1,156 common shares      valued at $5,782 for consultingservices. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------|

| vi.        | During      the year ended 30 April 2007, the Company issued 1,380 common shares      valued at $6,210 for consultingservices. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| vii.   | During      the year ended 30 April 2007, the Company issued 1,500 common shares at a      price of $5.00 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. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| viii.   | During      the year ended 30 April 2007, the Company issued 16,000 common shares at a      price of $6.00 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. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ix.   | During      the year ended 30 April 2007, the Company issued 3,847 common shares      valued at $15,389 for rent. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| x.   | During      the year ended 30 April 2007, the Company issued 2,717 common shares      valued at $10,868 for consultingservices. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------|

----

| xi.   | During      the year ended 30 April 2007, the Company issued 1,875 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. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xii.   | During      the year ended 30 April 2007, the Company issued 1,553 common shares      valued at $4,658 for consultingservices. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------|

| xiii.   | During      the year ended 30 April 2007, the Company issued 50,000 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 $7.50 up to 7 December      2011. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiv.   | During      the year ended 30 April 2008, the Company issued 31,600 private placement      restricted common shares at a price of $2.50 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. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  xv.        | During      the year ended 30 April 2008, the Company issued 4,000 common shares      valued at $1.00 per share for consulting  services. |
|-----------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| xvi.   | During      the year ended 30 April 2008, the Company issued 20,000 common shares      valued at $2.50 per share for $50,000 in consulting      services.  Of this amount, $24,454 was expensed during the year      ended 30 April 2009 (30 April 2008 - $25,546, cumulative -      $50,000). |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xvii.   | During      the year ended 30 April 2008, the Company issued 6,000 common shares      valued at $2.50 per share for $15,000 in 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. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xviii.   | During      the year ended 30 April 2008, the Company issued 4,000 common shares      valued at $1.00 per share for $4,000 in consulting    services. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| xix.   | During      the year ended 30 April 2008, the Company issued 7,600 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 $12.50 up to 6 September2012. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xx.   | During      the year ended 30 April 2008, the Company issued 2,571 common shares      valued at $6.50 per share for $16,710 for consulting      services.  Of this amount, $643 was expensed during the year      ended 30 April 2009 (30 April 2008 - $16,067, cumulative -      $16,710). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxi.   | During      the year ended 30 April 2008, the Company issued 1,684 common shares      valued at $4.50 per share for $8,000 for consulting    services. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxii.   | During      the year ended 30 April 2008, the Company issued 589 common shares valued      at $4.50 per share for $2,800 for consulting services. Of this amount,      $108 was expensed during the year ended 30 April 2009 (30 April 2008 –      $2,692, cumulative – $2,800). |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| xxiii.   | During      the year ended 30 April 2008, the Company issued 13,333 units at a price      of $7.50 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      $12.50 per share for a period of five years from the date of offering with      a fair value of $25,793.  As at 30 April 2009, 6,667 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. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxiv.   | During      the year ended 30 April 2008, the Company issued 6,667 units at a price of      $7.50 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 $12.50 per      share for a period of five years from the date of offering with a fair      value of $22,463.  As at 30 April 2009, 6,667 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. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxv.   | During      the year ended 30 April 2008, the Company issued 2,000 common shares      valued at $4.00 per share for $8,000 for consulting    services. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxvi.   | During      the year ended 30 April 2008, the Company issued 2,667 common shares      valued at $3.00 per share for $8,000 for consulting    services. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxvii.   | During      the year ended 30 April 2008, the Company issued 20,000 units valued at      $3.00 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 $7.50 per      share for a period of five years from the date of offering with a fair      value of $60,664.  As at 30 April 2009, 20,000 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. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxviii.   | During      the year ended 30 April 2009, the Company issued 1,000 common shares      valued at $4,000 ($4.00 per common share) in consulting      services. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxix.        | During      the year ended 30 April 2009, the Company issued 6,400 common shares      valued at $96,000 ($15.00 per common share) in investor      relations.  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. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxx.        | During      the year ended 30 April 2009, the Company issued 16,000 common shares      valued at $64,000 ($4.00 per common share) as compensation to the chief      executive officer of the company.  Each unit consists of one      restricted common share and one common share purchase      warrant.  Each warrant entitles the holder to purchase one      additional common share of the Company at a cost of $7.50 expiring 12 May      2013 with a fair value of $147,446.  As at 30 April 2009, 16,000      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 of 1933 (Notes 9 and 13). |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| xxxi.   | During      the year ended 30 April 2009, the Company issued 1,333 common shares      valued at $10,000 ($7.50 per common share) for legal    services. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxii.   | During      the year ended 30 April 2009, the Company issued 1,000 common shares      valued at $7,500 ($7.50 per common share) in 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 of 1933. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiii.   | During      the year ended 30 April 2009, the Company issued 3,200 common shares      valued at $24,000 ($7.50 per common share) in consulting expense to a      related party (Note 9). |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiv.   | During      the year ended 30 April 2009, the Company issued 5,000 common shares      valued at $27,500 ($5.50 per common share) in consulting to a related      party.  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. (Note 9) |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxv.   | During      the year ended 30 April 2009, the Company issued 3,333 units valued at      $7.50 per unit for total cash proceeds of $25,000.  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 $12.50 per      share for a period of five years from the date of offering with a fair      value of $18,525.  As at 30 April 2009, 3,333 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. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxvi.   | During      the year ended 30 April 2009, the Company issued 2,000 common shares      valued at $10,000 ($5.00 per common share) in repayment for a convertible      promissory note (Note 6). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxvii.   | During      the year ended 30 April 2009, the Company issued 2,000 common shares      valued at $6,000 ($3.00 per common share) in consulting      expense.  Of this amount, $3,271 was expensed during the period      (30 April 2008 - $Nil, cumulative - $3,271), and the remaining $2,729 was      classified as prepaid expense which will be expensed as consulting      services in subsequent periods. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxviii.   | During      the year ended 30 April 2009, the Company issued 200,000 shares of common      stock valued at $1.25 per share purchase for land and building from a      related party valued at $250,000 (Notes 4, 9 and      13).   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. |
|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxix.   | During      the year ended 30 April 2009, the Company issued 5,000 common shares      valued at $5,000 ($1.00 per common share) in legal    services. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| xl.   | During      the year ended 30 April 2009, the Company issued 150,000 common shares      valued at $150,000 ($1.00 per common share) in retainer for consulting      expenses to two related parties.  Of this amount, $74,384 was      expensed during the year (30 April 2008 - $Nil, cumulative - $74,384), and      the remaining $75,616 was classified as prepaid expense which will be      expensed as consulting services in subsequent periods.  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. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                             |   | Exercise      price |   | Numberof      warrants |   | Remainingcontractual      life (years) |
|----------------------------------|--------|---------------------|--------|------------------------|--------|----------------------------------------|
|                             |   | $                   |   |                   |   |                                   |
|                             |   |                |   |                   |   |                                   |
|     Warrants |   | 12.50               |   | 59,200                 |   | 1.71                                   |
|     Warrants |   | 7.50                |   | 50,000                 |   | 2.61                                   |
|     Warrants |   | 12.50               |   | 7,600                  |   | 3.35                                   |
|     Warrants |   | 12.50               |   | 6,667                  |   | 3.73                                   |
|     Warrants |   | 7.50                |   | 20,000                 |   | 3.92                                   |
|     Warrants |   | 12.50               |   | 6,667                  |   | 3.94                                   |
|     Warrants |   | 7.50                |   | 16,000                 |   | 4.03                                   |
|     Warrants |   | 12.50               |   | 3,333                  |   | 4.18                                   |
|                             |   |                |   |                   |   |                                   |
|                             |   |                |   | 169,467                |   |                                   |

|                                                                                         |   | Number      of warrants |   | Weighted      average exercise price |
|----------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------------------------------------|
|                                                                                         |   |                    |   | $                                    |
|                                                                                         |   |                    |   |                                 |
|     Outstanding and      exercisable at 1 May 2007                       |   | 239,244                 |   | 22.50                                |
|                                                                                         |   |                    |   |                                 |
|     Granted                                                              |   | 40,933                  |   | 10.00                                |
|     Exercised                                                            |   | -                       |   | -                                    |
|     Expired                                                              |   | (130,043)               |   | 25.00                                |
|                                                                                         |   |                    |   |                                 |
|     Outstanding and      exercisable at 1 May 2008                       |   | 150,134                 |   | 16.93                                |
|                                                                                         |   |                    |   |                                 |
|     Weighted      average fair value of warrants granted during the year |   | 2.79                    |
|                                                                                         |   |                    |   |                                 |
|     Outstanding and      exercisable at 1 May 2008                       |   | 150,134                 |   | 16.93                                |
|                                                                                         |   |                    |   |                                 |
|     Granted                                                              |   | 19,333                  |   | 8.50                                 |
|     Exercised                                                            |   | -                       |   | -                                    |
|     Expired                                                              |   | -                       |   | -                                    |
|                                                                                         |   |                    |   |                                 |
|     Outstanding and      exercisable at 30 April 2009                    |   | 169,467                 |   | 15.97                                |
|                                                                                         |   |                    |   |                                 |
|     Weighted      average fair value of warrants granted during the year |   | 8.58                    |

----

|                                                 |   |   |   | As      at30      April 2009 |   | As      at30      April 2008 |
|------------------------------------------------------|--------|--------|--------|-----------------------------------|--------|-----------------------------------|
|                                                 |   |   |   |                              |   |                              |
|     Risk      free interest rate |   |   |   | 3.02      % - 3.28%               |   | 2.65      % - 3.72%               |
|     Expected      life           |   |   |   | 5.0      years                    |   | 5.0      years                    |
|     Annualized      volatility   |   |   |   | 153%      - 158%                  |   | 119%      - 150%                  |
|     Expected      dividends      |   |   |   | -                                 |   | -                                 |

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

|                                                                                    |   | For      the year ended 30      April 2009 |   | For      the year ended 30      April2008 |
|-----------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|-----------------------------------------------------|
|                                                                                    |   | $                                                    |   | $                                                   |
|                                                                                    |   |                                                 |   |                                                |
|     Deferred tax      asset attributable to:                        |   |                                                 |   |                                                |
|     Current      operations                                         |   | 251,507                                              |   | 195,871                                             |
|     Contributions      to capital by related party – expenses |   | (35,000)                                             |   | (34,000)                                            |
|     Non-deductible      consulting fees                             |   | (69,267)                                             |   | (10,824)                                            |
|     Stock-based      compensation                                   |   | (51,606)                                             |   | (20,626)                                            |
|     Non-deductible      meals and entertainment                     |   | (1,733)                                              |   | (15,538)                                            |
|     Change      in valuation allowance                              |   | (65,025)                                             |   | (122,575)                                           |
|     Change      in long-term Canadian tax rates                     |   | (4,683)                                              |   | (5,610)                                             |
|     Foreign      exchange                                           |   | (24,193)                                             |   | 13,302                                              |
|                                                                                    |   |                                                 |   |                                                |
|     Net      refundable amount                                      |   | -                                                    |   | -                                                   |

----

|                                                           |   | As      at30      April 2009 |   | As      at30      April 2008 |
|----------------------------------------------------------------|--------|-----------------------------------|--------|------------------------------|
|                                                           |   | $                                 |   | $                            |
|                                                           |   |                              |   |                         |
|     Net      operating loss carry forward  |   | 2,244,976                         |   | 2,045,154                    |
|                                                           |   |                              |   |                         |
|     Statutory      federal income tax rate |   | 35%                               |   | 34%                          |
|     Effective      income tax rate         |   | 0%                                |   | 0%                           |
|                                                           |   |                              |   |                         |
|     Deferred tax      asset                |   | 785,742                           |   | 695,352                      |
|     Less:      Valuation allowance         |   | (785,742)                         |   | (695,352)                    |
|                                                           |   |                              |   |                         |
|     Net      deferred tax asset            |   | -                                 |   | -                            |

| i.   | On      15 November 2007,      the Company filed its intention to register 100,000 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 $4.50 per common share      (Note 13). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | The      Company is in a dispute with a former director for services previously      rendered. In the opinion of management, this claim is without merit and      the Company will be successful in its defense of this claim. A total of      $72,000 (30 April 2008 - $Nil) related to this amount was accrued in the      financial statements of the Company during the year ended 30 April      2009. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | 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 with      no financial damages for theCompany. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                    |   | For      the period from the date of inception on 2 September 2003 to30      April2009(Unaudited) |   |      For      the year ended30      April 2009 |   |      For      the year ended30      April 2008 |   |      For      the year ended30      April 2007 |
|-------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|
|                                                                    |   | $                                                                                                 |   | $                                                                            |   | $                                                                            |   | $                                                                            |
|                                                                    |   |                                                                                              |   |                                                                         |   |                                                                         |   |                                                                         |
|     Cash      paid during the year for interest     |   | 11,362                                                                                            |   | -                                                                            |   | -                                                                            |   | -                                                                            |
|     Cash      paid during the year for income taxes | -      |                                                                                              | -      |                                                                         | -      |                                                                         | -      |

----

----