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

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|     |                                                                                                                   | 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       |
|     |                                                                                                                   |     |
|     |                                                                                                                   |     |
|     | 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                                                                                                      | 17       |
|     |                                                                                                                   |     |
|     |                                                                                                                   |     |
|     | 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. | Exhibits                                                                                                               | 22       |
|     |                                                                                                                   |     |
|     | Signatures                                                                                                             | 22       |
|     |                                                                                                                   |     |
|     | Consolidated Financial Statements                                                                                      | 23       |

----

----

----

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

| -     Auxiliary-power units for the trucking industry |
|---------------------------------------------------------------------------|

| 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  |                 |                                                 |            |
|       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 

----

----

----

|                  |   |   |   |   |   |   |
|-----------------------|--------|--------|--------|--------|--------|--------|
| RTBC, formerly ROTB - |   |   |   |   |   |   |
| ROTOBLOCK CORP        |   |   |   |   |   |   |
|                  |   |   |   |   |   |   |
|                  |   |   |   | PRICE  |   |   |
| END DATE              |   |   | HIGH   | LOW    | CLOSE  | VOLUME |
|                  |   |   |   |   |   |   |
|  4/30/2010       |   |   | $1.36  | $0.78  | $0.78  | 1,500  |
|                  |   |   |   |   |   |   |
|  1/30/2010       |   |   | -      | -      | $1.44  | -      |
|                  |   |   |   |   |   |   |
|  10/31/2009      |   |   | $1.60  | $1.60  | $1.60  | 1,000  |
|                  |   |   |   |   |   |   |
|  7/31/2009       |   |   | $3.30  | $3.00  | $3.00  | 20,430 |
|                  |   |   |   |   |   |   |
| 4/30/2009             |   |   | $1.00  | $1.00  | $1.00  | 204    |
|                  |   |   |   |   |   |   |
| 1/31/2009             |   |   | -      | -      | $1.00  | -      |
|                  |   |   |   |   |   |   |
| 10/31/2008            |   |   | $2.50  | $2.50  | $2.50  | 165    |
|                  |   |   |   |   |   |   |
| 7/31/2008             |   |   | $5.00  | $4.00  | $4.25  | 256    |
|                  |   |   |   |   |   |   |

----

|     |   | Exercise price |   | Numberof warrants |   | Remainingcontractual life (years) |
|----------|--------|----------------|--------|-------------------|--------|-----------------------------------|
|     |   | $              |   |              |   |                              |
|     |   |           |   |              |   |                              |
| Warrants |   | 12.50          |   | 59,200            |   | 0.70                              |
| Warrants |   | 7.50           |   | 50,000            |   | 1.61                              |
| Warrants |   | 12.50          |   | 7,600             |   | 2.36                              |
| Warrants |   | 12.50          |   | 6,667             |   | 2.73                              |
| Warrants |   | 7.50           |   | 20,000            |   | 2.92                              |
| Warrants |   | 12.50          |   | 6,667             |   | 2.94                              |
| Warrants |   | 7.50           |   | 16,000            |   | 3.03                              |
| Warrants |   | 12.50          |   | 3,333             |   | 3.18                              |
| Warrants |   | 0.25           |   | 25,000            |   | 4.21                              |
| Warrants |   | 0.25           |   | 25,000            |   | 4.23                              |
| Warrants |   | 0.50           |   | 200,000           |   | 4.23                              |
| Warrants |   | 2.50           |   | 57,144            |   | 4.23                              |
| Warrants |   | 0.25           |   | 2,201,750         |   | 4.79                              |
| Warrants |   | 1.00           |   | 50,000            |   | 4.79                              |
| Warrants |   | 0.25           |   | 333,333           |   | 4.83                              |
| Warrants |   | 1.00           |   | 300,000           |   | 4.88                              |
| Warrants |   | 0.25           |   | 6,000,000         |   | 9.89                              |
|     |   |           |   |              |   |                              |
|     |   |           |   | 9,361,694         |   |                              |

----

|                                                            |   | Number of warrants |   | Weighted average exercise price |
|-----------------------------------------------------------------|--------|--------------------|--------|---------------------------------|
|                                                            |   |               |   | $                               |
|                                                            |   |               |   |                            |
| Outstanding and exercisable at May 1, 2008                      |   | 150,134            |   | 16.93                           |
|      Granted                           |   | 19,333             |   | 8.50                            |
|      Exercised                         |   | -                  |   | -                               |
|      Expired                           |   | -                  |   | -                               |
|                                                            |   |               |   |                            |
| Outstanding and exercisable at April 30, 2009                   |   | 169,467            |   | 15.97                           |
|                                                            |   |               |   |                            |
| Weighted average fair value of warrants granted during the year |   | 8.58               |
|                                                            |   |               |   |                            |
| Outstanding and exercisable at May 1, 2009                      |   | 169,467            |   | 15.97                           |
|      Granted                           |   | 9,192,227          |   | 0.30                            |
|      Exercised                         |   | -                  |   | -                               |
|      Expired                           |   | -                  |   | -                               |
|                                                            |   |               |   |                            |
| Outstanding and exercisable at April 30, 2010              |   | 9,361,694          |   | 0.58                            |
|                                                            |   |               |   |                            |
| Weighted average fair value of warrants granted during the year |   | 0.12               |

|                    | As atApril 30, 2010 |   | As atApril 30, 2009 | As atApril 30, 2008 |
|-------------------------|--------------------------|--------|--------------------------|--------------------------|
|                    |                     |   |                     |                     |
| Risk free interest rate | 1.49% - 2.36%            |   | 3.02 % - 3.28%           | 2.65 % - 3.72%           |
| Expected life           | 5.0 - 10.0 years         |   | 5.0 years                | 5.0 years                |
| Annualized volatility   | 580% - 596%              |   | 153% - 158%              | 119% - 150%              |
| Expected dividends      | -                        |   | -                        | -                        |

| 1)   | During the year ended April 30, 2010, a related party returned to treasury 200,000 shares of common stock, valued at $1.25 per share, for a total value of $250,000, related to the disposal of land and building acquired from the related party pursuant to an Agreement entered into on November 24, 2008.  These shares were cancelled on July 29, 2009. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | During the year ended April 30, 2010, we issued 6,552 shares of common stock, valued at $0.61 per share, for cash of $4,000.  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. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | During the year ended April 30, 2010, we issued 13,333 shares of common stock, valued at $0.75 per share, for cash of $10,000.  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. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4)   | During the year ended April 30, 2010, we issued 3,500,083 shares of common stock, valued at prices ranging between $0.15 to $1.00 per share, for $676,675 in consulting expense and salaries and wages. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5)   | During the year ended April 30, 2010, we issued 550,000 common stock purchase warrants, valued at a total of $633,728, for stock-based compensation.  Each common stock purchase warrant entitles the holder to purchase one share of our common stock at prices ranging between $0.25 and $1.00 per share, for a period of five years from the date of the warrant.  At April 30, 2010, all of these warrants are outstanding. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6)   | During the year ended April 30, 2010, we issued 8,585,083 common stock purchase warrants, valued at $469,113, for consulting services.  Each common stock purchase warrant entitles the holder to purchase one share of our common stock at priced ranging between $0.25 and $1.00 per share, for a period of five or ten years from the date of the warrant.  At April 30, 2010, all of these warrants are outstanding. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7)   | During the year ended April 30, 2010, we issued 28,572 units, valued at $1.75 per unit, for total cash proceeds of $50,000. Each unit consists of one share of common stock and two common stock purchase warrants.  Each whole common stock  purchase warrant entitles the holder to purchase one additional share of common stock at a price of $2.50 per share for a period of five years up to July 22, 2014.  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.  At April 30, 2010, all of these warrants are outstanding. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8)   | During the year ended April 30, 2010, we issued 28,572 shares of common stock, valued at $1.75 per share, for total cash proceeds of $50,000.  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. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9)   | During the year ended April 30, 2010, we entered into an Asset Purchase Agreement with an unrelated individual to acquire security and computer equipment valued at $50,000.  The purchase price of the equipment was paid for by the issuance of 50,000 shares of our common stock, valued at $50,000. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |   |
|--------------|--------|

| 10)   | During the year ended April 30, 2010, we entered into an Asset Purchase Agreement with a unrelated company to acquire a number of vehicles valued at $75,000.  The purchase price of the vehicles was paid for by the issuance of 75,000 shares of  of our common stock, valued at $75,000. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11)   | During the year ended April 30, 2010, we issued 2,000 shares of common stock, valued at $5.00 per share, for $10,000 in convertible promissory notes. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

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| 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, Principal Executive Officer and Director (1) | November 1, 2007 to present              |                                         |   | 39                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Mr. Liu has over 15 years of experience in international trade and project management. From 2002 to 2007, he was Vice 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 and China. Mr. Liu received a BS in Chemical Engineering from the University of California-Berkeley. He devotes his time as required to the business of our company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                              |                                     |                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Richard Di Sfefano, Principal Financial Officer              | June 5, 2008 to present                  |                                         |   | 34                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 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 and 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 UK 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                |                                         |   | 26                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Ms. Petrovska was appointed a  director and corporate secretary of the company in April 2007. 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 to Present |        52 |   | 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. |
|                                                              |                                     |                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

| SUMMARY COMPENSATION TABLE                       |
|--------------------------------------------------|
|                                             |   |   |   |   |   |   |   |   |  Change in Pension Value |   |   |
|                                             |   |   |   |   |   |   |   | Non-Equity Incentive  | and  Nonqualified Deferred | All Other |   |
| Name and Principal Position                      |   | Year | Salary |   | Bonus | Stock Awards  | Option Awards  | Plan Compensation | Compensation  Earnings | Compensation | Total  |
|                                             |   |   | ($) |   | ($) |   ($) |   ($) |   ($) | ($) |   ($) |   ($) |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Chien Chih Liu, Principal Executive Officer |   | 2010 |  125,000 (1) |   | 75,000 (1) | 138,625(2) | (1)  | 0 | 0 | 0 | 338,625 |
|                                             |   | 2009 | 0 |   | 0 | 64,000 (3)100,000 (4) |   | 0 |   | 0 | 164,000 |
|                                             |   |   |   |   |   |   |   |   |   |   |   |
| Richard Di Stefano,Principal Financial Officer   | 2010 | 0 |   | 0 | 0 |   0 | 0 | 0 | 0 | 0 |
|                                             |   | 2009 | 0 |   | 0 | 0 |   0 | 0 | 0 | 0 | 0 |
|                                             |   |   |   |   |    |   |   |   |   |   |   |
| Mariya Petrovska, Secretary                      |   | 2010 | 50,000 |   | 0 | 50,000 (5) |   0 | 0 | 0 | 0 | 100,000 |
|                                             |   | 2009 | 0 |   | 0 | 50,000 (4) |   0 | 0 | 0 | 0 | 50,000 |
|                                             |   |   |   |   |   |   |   |   |   |   |   |

There are no other employment agreements, arrangements or understandings between any executive officer and any director or other person pursuant to which any person was selected as a director or an executive officer. 

----

|           |                        | Option Awards          |                   |            |              | Stock Awards       |                                                         |
|----------------|-----------------------------|------------------------|------------------------|-----------------|-------------------|--------------------|--------------------------------------------------------------|
| Name           | Number of                   | Number of              | Equity Incentive       | Option Exercise | Option Expiration | Number of Shares   | Market Value of                                              | Equity Incentive | Equity Incentive |
|           | Securities                  | Securities             | Plan                   | Price           | Date              | or Units           | Shares or                                                    | Plan | Plan |
|           | Underlying Unexercised      | Underlying Unexercised | Awards: Number         | ($)             |              | of Stock That Have | Units of Stock                                               | Awards: Number | Awards: Market or |
|           | Options (#)                 | Options (#)            | of Securities          |            |              | Not Vested         | That Have Not                                                | of Unearned | Payout Value |
|           | Exercisable                 | Unexercisable          | Underlying Unexercised |            |              | (#)                | Vested ($)                                                   | Shares, Units or | of Unearned |
|           |                        |                   | Unearned               |            |              |               |                                                         | Other | Shares, Units |
|           |                        |                   | Options (#)            |            |              |               |                                                         | Rights That Have Not | or Other Rights |
|           |                        |                   |                   |            |              |               |                                                         | Vested | That Have |
|           |                        |                   |                   |            |              |               |                                                         | (#) | Not Vested |
|           |                        |                   |                   |            |              |               |                                                         |   | ($) |
|           |                        |                   |                   |            |              |               |                                                         |   |   |
| Chien Chih Liu |  (1)    | 1,000,000  (1)    |   (1)             |   (1)      |   (1)        |               |            |   |   |
|           |                        |                   |                   |            |              |               |                                                         |   |   |

| 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 | 933,498                                       | 20%                                 |
| 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              |  5,000                                   | <1%                              |
| 300 B Street                          |                                 |  Direct                                  |                                |
| Santa Rose, CA. 95401                 |                                 |                                          |                                |
|                                  |                                 |                                          |                                |
| Mariya Petrovska                      | Secretary and Director               | 385,333                                       |   8%                           |
| 300 B Street                          |                                 | Direct                                        |                                |
| Santa Rosa, CA. 95401                 |                                 |                                          |                                |
|                                  |                                 |                                          |                                |
| All Officers and Directors as a group |                                 | 1,326,831                                     | 28%                                 |

----

|   | ·  | 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 2010 |   |  As at30 April2009 |
|-----------------------------------------------------------------|--------|-------------------------|--------|-------------------------|
|                                                            |   | $                       |   | $                       |
| Assets                                                          |   |                    |   |                    |
|                                                            |   |                    |   |                    |
| Current                                                         |   |                    |   |                    |
| Cash and cash equivalents                                       |   | 925,070                 |   | 4,786                   |
| Accounts receivable                                             |   | 220                     |   | 183                     |
| Prepaid expenses (Note 10)                                      |   | 158,998                 |   | 78,345                  |
|                                                            |   |                    |   |                    |
|                                                            |   | 1,084,288               |   | 83,314                  |
|                                                            |   |                    |   |                    |
| Patents (Note 3)                                                |   | -                       |   | 108,745                 |
| Available-for-sale investment (Note 4)                          |   | 1,231,929               |   | -                       |
| Property and equipment (Note 5)                                 |   | 124,812                 |   | 251,526                 |
|                                                            |   |                    |   |                    |
|                                                            |   | 2,441,029               |   | 443,585                 |
| Liabilities                                                     |   |                    |   |                    |
|                                                            |   |                    |   |                    |
| Current                                                         |   |                    |   |                    |
| Accounts payable and accrued liabilities (Note 6)               |   | 215,115                 |   | 40,770                  |
| Due to related party (Note 8)                                   |   | 663                     |   | 551                     |
| Provision for legal dispute (Note 12 ii)                        |   | -                       |   | 72,000                  |
| Convertible promissory note (Notes 4 and 7)                |   | 2,025,644               |   | -                       |
|                                                            |   |                    |   |                    |
|                                                            |   | 2,241,422               |   | 113,321                 |
|                                                            |   |                    |   |                    |
| 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 2010 – 4,622,307 common shares, par value $0.001 |   |                    |   |                    |
| 30 April 2009 – 1,120,195 common shares, par value $0.001 |   | 4,622                   |   | 1,120                   |
| Additional paid-in capital                                      |   | 5,620,014               |   | 5,465,365               |
| Warrants                                                        |   | 1,421,526               |   | 280,274                 |
| Share subscriptions received in advance (Note 10)               |   | 250,000                 |   | -                       |
| Accumulated other comprehensive income (loss)                   |   | 227,684                 |   | (4,198)                 |
| Deficit, accumulated during the development stage               |   | (7,324,239)             |   | (5,412,297)             |
|                                                            |   |                    |   |                    |
|                                                            |   | 199,607                 |   | 330,264                 |
|                                                            |   |                    |   |                    |
|                                                            |   | 2,441,029               |   | 443,585                 |

----

----

|                                                                           |      |    |  For the period from the date of inception on 2 September 2003 to30 April 2010(Unaudited) | For the year ended30 April2010 | For the year ended30 April2009 | For the year ended30 April2008 |
|--------------------------------------------------------------------------------|-----------|---------|-----------------------------------------------------------------------------------------------------|-------------------------------------|--------------------------------|--------------------------------|
|                                                                           |      |    | $                                                                                                   | $                                   | $                              | $                              |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Expenses                                                                       |      |    |                                                                                                |                                |                           |                           |
| General and administrative (Schedule 1)                                        |      |    | 7,044,666                                                                                           | 1,876,581                           | 718,591                        | 576,091                        |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Net loss before other items                                                    |      |    | (7,044,666)                                                                                         | (1,876,581)                         | (718,591)                      | (576,091)                      |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Other items                                                                    |      |    |                                                                                                |                                |                           |                           |
| Excess of consideration over net assets purchased from Rotoblock Inc. (Note 1) |      |    | (138)                                                                                               | -                                   | -                              | -                              |
| Gain on disposal of property (Notes 5, 9, 10 and 13)                           | 1,384     | 1,384   | -                                                                                                   | -                                   |
| Provision for legal dispute (Note 12 ii)                                       |      |    | -                                                                                                   | 72,000                              | (72,000)                       | -                              |
| Write-off of patents (Note 3)                                                  |      |    | (108,745)                                                                                           | (108,745)                           | -                              | -                              |
| Write-off of property and equipment                                            |      |    | (9,870)                                                                                             | -                                   | -                              | -                              |
| Write-off of related party receivable                                          |      |    | (162,204)                                                                                           | -                                   | -                              | -                              |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Loss for the period                                                            |      |    | (7,324,239)                                                                                         | (1,911,942)                         | (790,591)                      | (576,091)                      |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Basic and diluted loss per common share                                        |      |    |                                                                                                | (1.04)                              | (0.90)                         | (0.88)                         |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Weighted average number of common shares used in per share calculations        | 1,841,638 | 881,986 | 651,111                                                                                             |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Comprehensive loss                                                             |      |    |                                                                                                |                                |                           |                           |
| Loss for the period                                                            |      |    | (7,324,239)                                                                                         | (1,911,942)                         | (790,591)                      | (576,091)                      |
| Foreign currency translation adjustment                                        |      |    | (4,245)                                                                                             | (47)                                | 70                             | (10)                           |
| Unrealized gain on available-for-sale investment (Note 4)                      | 231,929   | 231,929 | -                                                                                                   | -                                   |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Comprehensive loss for the period                                              |      |    | (7,096,555)                                                                                         | (1,680,060)                         | (790,521)                      | (576,101)                      |
|                                                                           |      |    |                                                                                                |                                |                           |                           |
| Comprehensive loss per common share                                            |      |    |                                                                                                | (0.91)                              | (0.90)                         | (0.88)                         |

----

----

|   |                                                                                     |        |      | For the period from the date of inception on 2 September 2003 to30 April 2010(Unaudited) |  For the year ended30 April2010 |  For the year ended30 April2009 |    For the year ended30 April2008 |
|--------|------------------------------------------------------------------------------------------|-------------|-----------|-----------------------------------------------------------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------------------|
|   |                                                                                     |        |      | $                                                                                             | $                                         | $                                         | $                                                     |
|   |                                                                                     |        |      |                                                                                          |                                      |                                      |                                                  |
|   | Cash used in operating activities                                                        |        |      |                                                                                          |                                      |
|   | Loss for the period                                                                      |        |      | (7,324,239)                                                                                   | (1,911,942)                               | (790,591)                                 | (576,091)                                             |
|   | 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                                               |
|   |  Depreciation (Note 5)                                                              |        |      | 8,480                                                                                         | 3,098                                     | 1,414                                     | -                                                     |
|   |     Gain on disposal of property (Notes 5, 9, 10 and 13)                  | (1,384)     | (1,384)   | -                                                                                             | -                                         |
|   |  Non-cash interest (Note 7)                                                         |        |      | 37,349                                                                                        | 25,644                                    | -                                         | -                                                     |
|   |  Shares issued for services (Notes 9, 10 and 13)                                    |        |      | 2,167,053                                                                                     | 676,675                                   | 394,000                                   | 300,256                                               |
|   |  Stock-based compensation (Notes 9, 10 and 13)                                      |        |      | 3,157,726                                                                                     | 633,728                                   | 147,446                                   | 60,664                                                |
|   |  Write-off of patents (Note 3)                                                      |        |      | 108,745                                                                                       | 108,745                                   | -                                         | -                                                     |
|   |  Write-off of property and equipment                                                |        |      | 9,870                                                                                         | -                                         | -                                         | -                                                     |
|   |  Write-off of related party receivable                                              |        |      | 177,204                                                                                       | -                                         | -                                         | -                                                     |
|   | Changes in operating assets and liabilities:                                             |        |      |                                                                                          |                                      |                                      |                                                  |
|   | (Increase) decrease in accounts receivable                                               |        |      | (220)                                                                                         | (37)                                      | 36                                        | (20)                                                  |
|   |  Increase in prepaid expenses                                                       |        |      | (132,926)                                                                                     | (80,653)                                  | (52,273)                                  | -                                                     |
|   |  Increase (decrease) in accounts payable and accrued liabilities                    | 203,412     | 174,345   | 18,784                                                                                        | (22,394)                                  |
|   |      Increase (decrease) in provision for legal dispute (Note 12 ii) | -           | (72,000)  | 72,000                                                                                        | -                                         |
|   |      Increase (decrease) in due to related party (Note 8)            | 663         | 112       | (107)                                                                                         | 60                                        |
|   |                                                                                     | (1,288,267) | (443,669) | (109,291)                                                                                     | (137,525)                                 |
|   | Cash flows used in investing activities                                                  |        |      |                                                                                          |                                      |                                      |                                                  |
|   | Purchase of equipment (Note 5)                                                           |        |      | (16,778)                                                                                      | -                                         | (2,940)                                   | -                                                     |
|   | Investment in Samyang Optics Co. Ltd. (Note 4)                                           |        |      | (1,000,000)                                                                                   | (1,000,000)                               | -                                         | -                                                     |
|   | Purchase of patents (Note 3)                                                             |        |      | (108,745)                                                                                     | -                                         | -                                         | -                                                     |
|   |                                                                                     |        |      | (1,125,523)                                                                                   | (1,000,000)                               | (2,940)                                   | -                                                     |
|   | Cash flows from financing activities                                                     |        |      |                                                                                          |                                      |                                      |                                                  |
|   | Common shares issued for cash (Note 10)                                                  |        |      | 1,000,941                                                                                     | 114,000                                   | 6,475                                     | 174,361                                               |
|   | Warrants granted for cash (Note 10)                                                      |        |      | 72,164                                                                                        | -                                         | 18,525                                    | 53,639                                                |
|   | Warrants exercised                                                                       |        |      | 10,000                                                                                        | -                                         | -                                         | -                                                     |
|   | Convertible promissory note payable (Note 7)                                             |        |      | 2,010,000                                                                                     | 2,000,000                                 | -                                         | -                                                     |
|   | Share subscriptions received in advance (Note 10)                                        |        | 250,000   | 250,000                                                                                       | -                                         | -                                         |
|   |                                                                                     |        |      | 3,343,105                                                                                     | 2,364,000                                 | 25,000                                    | 228,000                                               |
|   |                                                                                     |        |      |                                                                                          |                                      |                                      |                                                  |
|   | Foreign exchange effect on cash                                                          |        |      | (4,245)                                                                                       | (47)                                      | 70                                        | (10)                                                  |
|   |                                                                                     |        |      |                                                                                          |                                      |                                      |                                                  |
|   | Increase (decrease) in cash and cash equivalents                                         |        |      | 925,070                                                                                       | 920,284                                   | (87,161)                                  | 90,465                                                |
|   |                                                                                     |        |      |                                                                                          |                                      |                                      |                                                  |
|   | Cash and cash equivalents, beginning of period                                           |        |      | -                                                                                             | 4,786                                     | 91,947                                    | 1,482                                                 |
|   |                                                                                     |        |      |                                                                                          |                                      |                                      |                                                  |
|   | Cash and cash equivalents, end of period                                                 |        |      | 925,070                                                                                       | 925,070                                   | 4,786                                     | 91,947                                                |

----

|                                            |                                                                                                          |    Number of shares issued |     Capital stock |    Additional paid-in capital |      Warrants |   Accumulated other comprehensive income (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                                                                       |                                      | -                                     |                                         | -                                      |                                                      | -                                                      |                                               | - |   | - |   | (138) |   | (138) |
|                                            | purchased from Rotoblock Inc. (Note 1)                                                                        |                                      |                                  |                                         |                                   |                                                      |                                                   |                                               |   |   |   |   |   |   |   |
|                                            | 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)                                                                     |                                      | 2,286                                 |                                         | 2                                      |                                                      | 23,998                                                 |                                               | - |   | - |   | - |   | 24,000 |
|                                            | Shares issued for services rendered ($5.62 per share)                                                         |                                      | 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 |      Capital stock |     |     Additional paid-in capital |       Warrants |      |      Subscriptions received in advance |    |    Accumulated other comprehensive income (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 (Notes 10 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 for cash (Note 10)                                            |      | -                                               |                                        | -        |                                               | -                                            |      | 18,525                                                     |    | -                                                               |               | -                                                            |        | -                                                       |   | 18,525 |
|                     | Shares issued for services rendered ($1.87 per share) (Notes 10 and 13)        |      | 190,933                                         |                                        | 191      |                                               | 393,809                                      |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 394,000 |
|                     | Shares issued for property ($1.25 per share) (Notes 5, 9, 10, and 13)          |      | 200,000                                         |                                        | 200      |                                               | 249,800                                      |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 250,000 |
|                     | Shares issued for debt ($5.00 per share)  (Note 10 and 13)           |      | 2,000                                           |                                        | 2        |                                               | 9,998                                        |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 10,000 |
|                     | Contribution to capital by related parties – services (Notes 9 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 |
|                     |                                                                           |      |                                            |                                        |     |                                               |                                         |      |                                                       |    |                                                            |               |                                                         |        |                                                    |
|                     | Shares issued for property rescinded ($1.25 per share) (Notes 5, 9, 10 and 13) |      | (200,000)                                       |                                        | (200)    |                                               | (249,800)                                    |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | (250,000) |
|                     | Shares issued for cash ($0.61 per share) (Note 10)                             |      | 6,552                                           |                                        | 6        |                                               | 3,994                                        |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 4,000 |
|                     | Shares issued for cash ($0.75 per share) (Note 10)                             |      | 13,333                                          |                                        | 13       |                                               | 9,987                                        |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 10,000 |
|                     | Shares issued for cash ($1.75 per share) (Note 10)                             |      | 28,572                                          |                                        | 29       |                                               | 49,971                                       |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 50,000 |
|                     | Shares issued for cash ($1.75 per share) (Note 10)                             |      | 28,572                                          |                                        | 29       |                                               | 49,971                                       |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 50,000 |
|                     | Shares issued for services rendered (Notes 10 and 13)                          |      | 3,500,083                                       |                                        | 3,500    |                                               | 673,175                                      |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 676,675 |
|                     | Shares issued for property and equipment (Notes 5, 10 and 13)                  |      | 125,000                                         |                                        | 125      |                                               | 124,875                                      |      | -                                                          |    | -                                                               |               | -                                                            |        | -                                                       |   | 125,000 |
|                     | Fair value of warrants issued                                                  |      | -                                               |                                        | -        |                                               | (507,524)                                    |      | 507,524                                                    |    | -                                                               |               | -                                                            |        | -                                                       |   | - |
|                     | Stock-based compensation (Notes 9, 10 and 13)                             |      | -                                               |                                        | -        |                                               | -                                            |      | 633,728                                                    |    | -                                                               |               | -                                                            |        | -                                                       |   | 633,728 |
|                     | Unrealized gain on available-for-sale investment (Note 4)                      |      | -                                               |                                        | -        |                                               | -                                            |      | -                                                          |    | -                                                               |               | 231,929                                                      |        | -                                                       |   | 231,929 |
|                     | Share subscriptions received in advance (Note 10)                              |      | -                                               |                                        | -        |                                               | -                                            |      | -                                                          |    | 250,000                                                         |               | -                                                            |        | -                                                       |   | 250,000 |
|                     | Foreign currency translation adjustment                                        |      | -                                               |                                        | -        |                                               | -                                            |      | -                                                          |    | -                                                               |               | (47)                                                         |        | -                                                       |   | (47) |
|                     | Net loss for the year                                                          |      | -                                               |                                        | -        |                                               | -                                            |      | -                                                          |    | -                                                               |               | -                                                            |        | (1,911,942)                                             |   | (1,911,942) |
|                     |                                                                           |      |                                            |                                        |     |                                               |                                         |      |                                                       |    |                                                            |               |                                                         |        |                                                    |   |   |
| Balance at 30 April 2010 |                                                                           | 4,622,307 |                                            | 4,622                                       |     | 5,620,014                                          |                                         | 1,421,526 |                                                       | 250,000 |                                                            | 227,684            |                                                         | (7,324,239) |                                                    | 199,607 |

----

----

|                                          |      |      | For the period from the date of inception on 2 September 2003 to30 April 2010(Unaudited) | For the year ended30 April2010 | For the year ended30 April2009 |  For the year ended30 April2008 |
|-----------------------------------------------|-----------|--------------------------|-----------------------------------------------------------------------------------------------|-------------------------------------|--------------------------------|-------------------------------------------|
|                                          |      |                     | $                                                                                             | $                                   | $                              | $                                         |
|                                          |      |                     |                                                                                          |                                |                           |                                      |
| Consulting fees (Notes 9,10 and 13)           |      |                     | 1,128,445                                                                                     | 262,768                             | 197,905                        | 207,320                                   |
| Depreciation (Note 5)                         |      |                     | 8,480                                                                                         | 3,098                               | 1,414                          | -                                         |
| Foreign exchange loss                         |      |                     | 1,545                                                                                         | -                                   | -                              | -                                         |
| Interest                                      |      |                     | 43,347                                                                                        | 26,624                              | 265                            | 714                                       |
| Investor relations (Notes 10 and 13)          |      |                     | 289,878                                                                                       | 50,000                              | 96,000                         | -                                         |
| Listing, filing and transfer agent fees       |      |                     | 55,494                                                                                        | 7,581                               | 11,465                         | 7,865                                     |
| Management fees (Notes 9 and 13)         |      |                     | 300,000                                                                                       | -                                   | 100,000                        | 100,000                                   |
| Office and sundry                             |      |                     | 68,840                                                                                        | 8,319                               | 11,709                         | 6,425                                     |
| Professional fees                             |      |                     | 486,150                                                                                       | 78,877                              | 76,935                         | 143,908                                   |
| Public relations and shareholder information  | 190,846   | 9,409                    | 37,033                                                                                        | 3,495                               |
| Rent                                          |      |                     | 79,205                                                                                        | -                                   | -                              | -                                         |
| Research and development                      |      |                     | 387,173                                                                                       | 72,917                              | -                              | -                                         |
| Salaries and wages (Notes 9, 10, 12 and 13)   |      |                     | 574,007                                                                                       | 574,007                             | -                              | -                                         |
| Stock-based compensation (Notes 9, 10 and 13) | 3,157,726 | 633,728                  | 147,446                                                                                       | 60,664                              |
| Travel and entertainment                      | 273,530   | 149,253                  | 38,419                                                                                        | 45,700                              |
|                                          |      |                     |                                                                                          |                                |                           |                                      |
|                                          |      |                     | 7,044,666                                                                                     | 1,876,581                           | 718,591                        | 576,091                                   |

----

----

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

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----

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

Basis of presentation

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----

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----

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----

----

----

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----

----

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

|   |                     |   | Balance at30 April 2010 |   | Balance at30 April 2009 |
|--------|--------------------------|--------|------------------------------|--------|------------------------------|
|   |                     |   | $                            |   | $                            |
|   |                     |   |                         |   |                         |
|   | Patent costs to date     |   | 108,745                 |   | 108,745                      |
|   | Provision for write-down |   | (108,745)                    |   | -                            |
|   | Accumulated depreciation |   | -                            |   | -                            |
|   |                     |   |                         |   |                         |
|   |                     |   | -                            |   | 108,745                      |

| 4.   | Available-for-sale investment |
|----------------|-------------------------------|

|   |                                              |   |            |   | Unrealized gain/loss |         | Fair value      |
|--------|---------------------------------------------------|--------|-----------------|--------|----------------------|--------------|-----------------|
|   |                                              |   | Adjusted cost   |   |                 | 30 April2010 |            | 30 April 2009 |
|   |                                              |   | $               |   | $                    |         | $               |   | $ |
|   |                                              |   |            |   |                 |         |            |   |   |
|   | 977,966 common shares of Samyang Optics Co., Ltd. |   |  1,000,000 |   |  231,929        |         |  1,231,929 |   |  - |
|   |                                              |   |            |   |                 |         |            |   |   |
|   |                                              |   | 1,000,000       |   | 231,929              |         | 1,231,929       |   | - |

----

----

| 5.   | Property, plant and equipment |
|----------------|------------------------------------|

|                              |   |    |   | Accumulated  depreciation |          | Net book value |
|-----------------------------------|--------|---------|--------|--------------------------------|---------------|----------------|
|                              |   | Cost    |   |                           | 30 April 2010 |           | 30 April 2009 |
|                              |   | $       |   | $                              |          | $              |   | $ |
|                              |   |    |   |                           |          |           |   |   |
|     Equipment |   | 127,940 |   | 3,128                          |          | 124,812        |   | 2,402 |
|     Property  |   | -       |   | -                              |          | -              |   | 67,874 |
|     Land      |   | -       |   | -                              |          | -              |   | 181,250 |
|                              |   |    |   |                           |          |           |   |   |
|                              |   | 127,940 |   | 3,128                          |          | 124,812        |   | 251,526 |

| 6. | Accounts Payable and Accrued Liabilities |
|----|------------------------------------------|

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----

| 7. | Convertible Promissory Note |
|----|-----------------------------|

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

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

----

----

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

| i.   | 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 were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | During the year ended 30 April 2008, the Company issued 4,000 common shares valued at $1.00 per share for $4,000 in consulting services (Note 13). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | 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 (Note 13). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | 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 (Note 13).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v.   | 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 (Note 13). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| vi.   | 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 September 2012.  As at 30 April 2010, 7,600 of these share purchase warrants in this series remain outstanding. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| vii.   | 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 (Note 13). |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| viii.   | 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 (Note 13). |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ix.   | 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 (Note 13). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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----

| x.   | 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 2010, 6,667 of the share purchase warrants in this series remain outstanding.  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xi.   | During the 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 2010, 6,667 of the share purchase warrants in this series remain outstanding.  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xii.   | 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 (Note 13). |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| xiii.   | 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 (Note 13). |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| xiv.   | During the year ended 30 April 2008, the Company issued 20,000 units valued at $3.00 per unit for consulting services (Note 13).  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 31 April 2010, 20,000 of the share purchase warrants in this series remain outstanding.  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xiv.   | During the year ended 30 April 2009, the Company issued 1,000 common shares valued at $4.00 per common share for $4,000 in consulting services (Note 13). |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| xivi.   | During the year ended 30 April 2009, the Company issued 6,400 common shares valued at $15.00 per common share for $96,000 in investor relations (Note 13).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xivii. . | During the year ended 30 April 2009, the Company issued 16,000 units valued at $4.00 per common share each for $64,000 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 2010, 16,000 of the share purchase warrants in this series remain outstanding.  These shares were 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). |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| xviii.   | During the year ended 30 April 2009, the Company issued 1,333 common shares valued at $7.50 per common share each for $10,000 for legal services (Note 13). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xix.   | During the year ended 30 April 2009, the Company issued 1,000 common shares valued at $7.50 per common share for $7,500 in public relations (Note 13).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xx.   | During the year ended 30 April 2009, the Company issued 3,200 common shares valued at $7.50 per common share $24,000 in consulting expense to a related party (Notes 9 and 13). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxi.   | During the year ended 30 April 2009, the Company issued 5,000 common shares valued at $5.50 per common share for $27,500 in consulting to a related party (Notes 9 and 13).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxii.   | 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 2010, 3,333 of the share purchase warrants in this series remain outstanding.  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxiii.   | During the year ended 30 April 2009, the Company issued 2,000 common shares valued at $5.00 per common share for $10,000 in repayment for a convertible promissory note (Note 13). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxiv.   | During the year ended 30 April 2009, the Company issued 2,000 common shares valued at $3.00 per common share for $6,000 in consulting expense (Note 13).  Of this amount, $2,729 was expensed during the year ended 30 April 2010 (30 April 2009 - $3,271, cumulative - $6,000). |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxv.   | 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 5, 9 and 13).   These shares were 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 5,000 common shares valued at $1.00 per common share for $5,000 in legal services (Note 13). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxvii.   | During the year ended 30 April 2009, the Company issued 150,000 common shares valued $1.00 per common share at $150,000 in retainer for consulting expenses to two related parties (Notes 9 and 13).  Of this amount, $75,616 was expensed during the year ended 30 April 2010 (30 April 2009 - $74,384, cumulative - $150,000).  These shares were restricted from trading for a period of one year as defined by Rule 144 of the United States Securities Act of 1933. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| xxviii.   | During the year ended 30 April 2010, the Related Party returned to treasury 200,000 shares of common stock of the Company valued at $1.25 per common share for a total value of $250,000, related to the disposal of land and building acquired from a Related Party pursuant to the Agreement entered into on 24 November 2008.  These shares were cancelled on 29 July 2009 (Notes 5, 9 and 13). |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxix.   | During the year ended 30 April 2010, the Company issued 6,552 common shares valued at $0.61 per common share for cash of $4,000.  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. |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxx.   | During the year ended 30 April 2010, the Company issued 13,333 common shares valued at $0.75 per common share for cash of $10,000.  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. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxi.   | During the year ended 30 April 2010, the Company issued 3,500,083 common shares valued at prices from $0.15 to $1.00 per common share for $676,675 in consulting expense and salaries and wages.  Of this amount, $517,677 was expensed during the period and the remaining $158,998 was classified as prepaid expense which will be expensed as consulting services and salaries and wages in subsequent periods (Notes 9 and 13). |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxii.   | During the year ended 30 April 2010, the Company issued 550,000 common share purchase warrants valued at $633,728 for stock-based compensation.  Each common share purchase warrant entitles the holder to purchase one common share at a price of $0.25 to $1.00 for a period of five years from the date of offering.  As at 30 April 2010, 550,000 of the share purchase warrants in these series remain outstanding (Note 13). |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiii.   | During the year ended 30 April 2010, the Company issued 8,585,083 common share purchase warrants valued at $469,113 for consulting services.  Each common share purchase warrant entitles the holder to purchase one common share at a price of $0.25 to $1.00 for a period of five or ten years from the date of offering.  As at 30 April 2010, 8,585,083 of the share purchase warrants in these series remain outstanding (Notes 9 and 13). |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxiv.   | During the year ended 30 April 2010, the Company issued 28,572 units valued at $1.75 consisting of one share and two warrants for total cash proceeds of $50,000.  Each whole common share purchase warrant entitles the holder to purchase an additional common share at a price of $2.50 per share for a period of five years up to 22 July 2014.  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.  As at 30 April 2010, 57,144 warrants in this series remain outstanding. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxv.   | During the year ended 30 April 2010, the Company issued 28,572 shares valued at $1.75 for total cash proceeds of $50,000.  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. |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| xxxvi.   | During the year ended 30 April 2010, the Company entered into an Asset Purchase Agreement with a non-related individual to acquire security and computer equipment valued at $50,000.  The purchase price of the equipment was paid for by the issuance of 50,000 shares of common stock of the Company valued at $50,000 (Notes 5 and 13). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| xxxvii.   | During the year ended 30 April 2010, the Company entered into an Asset Purchase Agreement with a non-related company to acquire a number of vehicles valued at $75,000.  The purchase price of the vehicles was paid for by the issuance of 75,000 shares of common stock of the Company valued at $75,000 (Notes 5 and 13). |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |     |   | Exercise price |   | Numberof warrants |   | Remainingcontractual life (years) |
|--------|----------|--------|----------------|--------|-------------------|--------|-----------------------------------|
|   |     |   | $              |   |              |   |                              |
|   |     |   |           |   |              |   |                              |
|   | Warrants |   | 12.50          |   | 59,200            |   | 0.70                              |
|   | Warrants |   | 7.50           |   | 50,000            |   | 1.61                              |
|   | Warrants |   | 12.50          |   | 7,600             |   | 2.36                              |
|   | Warrants |   | 12.50          |   | 6,667             |   | 2.73                              |
|   | Warrants |   | 7.50           |   | 20,000            |   | 2.92                              |
|   | Warrants |   | 12.50          |   | 6,667             |   | 2.94                              |
|   | Warrants |   | 7.50           |   | 16,000            |   | 3.03                              |
|   | Warrants |   | 12.50          |   | 3,333             |   | 3.18                              |
|   | Warrants |   | 0.25           |   | 25,000            |   | 4.21                              |
|   | Warrants |   | 0.25           |   | 25,000            |   | 4.23                              |
|   | Warrants |   | 0.50           |   | 200,000           |   | 4.23                              |
|   | Warrants |   | 2.50           |   | 57,144            |   | 4.23                              |
|   | Warrants |   | 0.25           |   | 2,201,750         |   | 4.79                              |
|   | Warrants |   | 1.00           |   | 50,000            |   | 4.79                              |
|   | Warrants |   | 0.25           |   | 333,333           |   | 4.83                              |
|   | Warrants |   | 1.00           |   | 300,000           |   | 4.88                              |
|   | Warrants |   | 0.25           |   | 6,000,000         |   | 9.89                              |
|   |     |   |           |   |              |   |                              |
|   |     |   |           |   | 9,361,694         |   |                              |

----

----

|   |                                                            |   | Number of warrants |   | Weighted average exercise price |
|--------|-----------------------------------------------------------------|--------|--------------------|--------|---------------------------------|
|   |                                                            |   |               |   | $                               |
|   |                                                            |   |               |   |                            |
|   | 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               |
|   |                                                            |   |               |   |                            |
|   | Outstanding and exercisable at 1 May 2009                       |   | 169,467            |   | 15.97                           |
|   |      Granted                           |   | 9,192,227          |   | 0.30                            |
|   |      Exercised                         |   | -                  |   | -                               |
|   |      Expired                           |   | -                  |   | -                               |
|   |                                                            |   |               |   |                            |
|   | Outstanding and exercisable at 30 April 2010                    |   | 9,361,694          |   | 0.58                            |
|   |                                                            |   |               |   |                            |
|   | Weighted average fair value of warrants granted during the year |   | 0.12               |

|   |                    | As at30 April 2010 |   | As at30 April 2009 | As at30 April 2008 |
|--------|-------------------------|-------------------------|--------|-------------------------|-------------------------|
|   |                    |                    |   |                    |                    |
|   | Risk free interest rate | 1.49% - 2.36%           |   | 3.02 % - 3.28%          | 2.65 % - 3.72%          |
|   | Expected life           | 5.0 - 10.0 years        |   | 5.0 years               | 5.0 years               |
|   | Annualized volatility   | 580% - 596%             |   | 153% - 158%             | 119% - 150%             |
|   | Expected dividends      | -                       |   | -                       | -                       |

----

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

|                                |   | For the year ended30 April2010 |   | For the year  ended30 April2009 |
|-------------------------------------|--------|--------------------------------|--------|-------------------------------------------|
|                                |   | $                              |   | $                                         |
| Deferred tax asset attributable to: |   |                           |   |                                      |
| Current operations                  |   | 666,119                        |   | 251,507                                   |
| Permanent differences               |   | (257,686)                      |   | (157,606)                                 |
| Change in valuation allowance       |   | (384,575)                      |   | (65,025)                                  |
| Change in long-term tax rates       |   | -                              |   | (4,683)                                   |
| Foreign exchange                    |   | (23,858)                       |   | (24,193)                                  |
|                                |   |                           |   |                                      |
| Net refundable amount               |   | -                              |   | -                                         |

----

----

|                              |   | As at30 April 2010 |   | As at30 April 2009 |
|-----------------------------------|--------|-------------------------|--------|--------------------|
|                              |   | $                       |   | $                  |
|                              |   |                    |   |               |
| Net operating loss carry forward  |   | 3,503,823               |   | 2,244,976          |
|                              |   |                    |   |               |
| Statutory federal income tax rate |   | 25% - 35%               |   | 25% - 35%          |
| Effective income tax rate         |   | 0%                      |   | 0%                 |
|                              |   |                    |   |               |
| Deferred tax asset                |   | 1,170,317               |   | 785,742            |
| Less: Valuation allowance         |   | (1,170,317)             |   | (785,742)          |
|                              |   |                    |   |               |
| 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. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | The Company is engaged in a dispute with a former director of the Company for services previously rendered and a related provision of $72,000 was accrued in the consolidated financial statements for the year ended 30 April 2009.  The Company continues to defend its position to the fullest extent possible and reversed its provision for loss of $72,000 during the year ended 30 April 2010. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | The Company is committed to issuing 25,000 shares valued at $3,750 pursuant to the one-year consulting agreement for consulting services. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| iv.   | The Company entered into an agreement with the corporate secretary for a salary of $50,000 per annum beginning 1 July 2009.  No salaries have been paid and $41,644 has been recorded in accrued liabilities as at 30 April 2010. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| v.   | The Company entered into an employment agreement with the chief executive officer for a salary of $125,000 per annum and one time signing bonus of $75,000 beginning 1 July 2009.  As of 30 April 2010, $41,251 in salaries has been paid and $137,859 has been recorded in accrued liabilities. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                       |   | For the period from the date of inception on 2 September 2003 to30 April2010(Unaudited) |   For the year ended30 April 2010 |   For the year ended30 April 2009 |   For the year ended30 April 2008 |
|--------|--------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
|   |                                       |   |                                                                                    |                                             |                                             |                                             |
|   |                                       |   | $                                                                                       | $                                                | $                                                | $                                                |
|   | Cash paid during the year for interest     | 11,362 | -                                                                                       | -                                                | -                                                |
|   | Cash paid during the year for income taxes | -      | -                                                                                       | -                                                | -                                                |

----

----

| 14. | Fair Value Measurements |
|-----|-------------------------|

|   | The Company measures its available-for-sale investment at fair value.  Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.  As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.  A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                   |      |                                       | Fair value measurement at reporting date using |
|----------------------------------------|-----------|--------------------------------------------|------------------------------------------------|
|                                   |      |    Balance at 30 April 2010 |                                           |  Quoted prices in active markets for identical assets(Level 1) |   |  Significant other observable inputs(Level 2) |   |   Significant unobservable inputs(Level 3) |   |
|                                   |      | $                                          |                                           | $ |   | $ |   | $ |   |
|                                   |      |                                       |                                           |   |   |   |   |   |   |
| Available-for-sale investment (Note 4) | 1,231,929 |                                       | 1,231,929                                      |   | - |   | - |   |
|                                   |      |                                       |                                           |   |   |   |   |   |   |
| Total                                  |      | 1,231,929                                  |                                           | 1,231,929 |   | - |   | - |   |

| i.   | On 22 April 2010, the Company received $834 for the exercise of 3,334 warrants at a price of $0.25 per share. |
|-----------|---------------------------------------------------------------------------------------------------------------|

| ii.   | On 13 May 2010, Samyang exercised its option to convert its $2,000,000 loan into equity of the Company, receiving 1,818,181 shares valued at $727,272 (Notes 4 and 7). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|