----

----

**FORM      10-KSB**

| T | ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                SECURITIES |
|---|-----------------------------------------------------------------------------------------------|

| * | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                SECURITIES |
|---|---------------------------------------------------------------------------------------------------|

**WHISPERING      OAKS INTERNATIONAL, INC.**

|   | Texas                                   |   | 75-2742601                   |   |
|--------|-----------------------------------------|--------|------------------------------|--------|
|   | (State                of incorporation) |   | (IRS                Employer |   |
|   | Identification                No.)      |   |                         |   |

|   | 7080                River Road, Suite 215              |   |                    |   |
|--------|--------------------------------------------------------|--------|-------------------------|--------|
|   | Richmond,                British Columbia              |   | V6X                1X5  |   |
|   | (Address                of Principal Executive Office) |   | Zip                Code |   |

|   | T   |   | *  |   |
|--------|-----|--------|----|--------|
|   | YES |   | NO |   |

|   | Yes | * | No | T |   |
|--------|-----|---|----|---|--------|

----

----

----

| **ITEM                1.** | **DESCRIPTION                OF BUSINESS** |
|----------------------------|--------------------------------------------|

|   | Ÿ | Patents |
|--------|--------|---------|

|   | Ÿ | Proprietary                  technology |
|--------|--------|-----------------------------------------|

|   | Ÿ | Cash                  in the amount of $129,032 |
|--------|--------|-------------------------------------------------|

|   | Ÿ | A                  51% interest in Biolargo. |
|--------|--------|----------------------------------------------|

----

----

----

----

----

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| **ITEM                2.** | **DESCRIPTION                OF PROPERTY** |
|----------------------------|--------------------------------------------|

| **ITEM                3.** | **LEGAL                PROCEEDINGS** |
|----------------------------|--------------------------------------|

| **ITEM                4.** | **SUBMISSION                OF MATTERS TO A VOTE OF SECURITY                HOLDERS** |
|----------------------------|---------------------------------------------------------------------------------------|

| **ITEM                5.** | **MARKET                FOR COMMON EQUITY AND RELATED STOCKHOLDER** |
|----------------------------|---------------------------------------------------------------------|

**MATTERS.**

----

| Quarter                Ending |   | High   |   | Low    |
|-------------------------------|--------|--------|--------|--------|
|                          |   |   |   |   |
| 3/31/04                       |   | $0.33  |   | $0.24  |
| 6/30/04                       |   | $2.80  |   | $0.69  |
| 9/30/04                       |   | $1.02  |   | $0.51  |
| 12/31/04                      |   | $0.77  |   | $0.52  |
|                          |   |   |   |   |
| 3/31/05                       |   | $1.80  |   | $1.40  |
| 6/30/05                       |   | $1.03  |   | $1.01  |
| 9/30/05                       |   | $0.90  |   | $0.85  |
| 12/31/05                      |   | $0.89  |   | $0.86  |

----

|                                                                                                                                                                                           |   | Number                ofShares |      | NoteReference |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|---------------|--------|
|                                                                                                                                                                                           |   |                           |      |          |   |
| Shares                issuable upon exercise of Non-Qualified Stock options granted to                officers,                directors, employees and consultants.                           |   |                           | 2,575,000 |          |   | A |   |
|                                                                                                                                                                                           |   |                           |      |          |   |   |   |
| Shares                issuable upon exercise of warrants granted to Biocurex’s officers,                directors, employees, financial consultants and private                investors |   |                           | 5,720,215 |          |   | B |   |
|                                                                                                                                                                                           |   |                           |      |          |   |   |   |
| Shares                issuable upon conversion of notes                                                                                                                                        |   |                           | 2,243,549 |          |   | C |   |
|                                                                                                                                                                                           |   |                           |      |          |   |   |   |
| Shares                issuable upon exercise of warrants issued to note holders                                                                                                                |   |                           | 4,811,249 |          |   | C |   |

| A. | See                Item 10 of this report for information concerning the Non-Qualified                Stock                Option Plan. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------|

| B. | Warrants                in this category were not granted pursuant to Biocurex’s Non-Qualified                Stock Option Plan. The warrants are exercisable at prices between                $0.001                and $0.75 per share and expire between November 1, 2006 and January                31,                2009. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | During                2003 Biocurex sold convertible notes in the principal amount of $529,813                to six private investors. The notes bear interest at 5% per year                and are                due and payable five years from the respective dates of the notes.                Each                note may, at the option of the holder, be converted at any time into                shares of Biocurex’s common stock. The number of shares to be issued upon                the conversion of any note is equal in number to the amount determined                by                dividing the principal amount to be converted by the Conversion Price.                The                Conversion Price was separately negotiated for each note and ranges                between $0.05 and $0.23. If all remaining notes were converted Biocurex                would be obligated to issue an additional 2,243,549 shares of common                stock. As of March 15, 2005 one note in the principal amount of $53,000                was repaid and one note in the principal amount of $143,700 had been                converted into 955,800 shares of Biocurex’s common stock. The note holders                also received warrants to collectively purchase 2,567,700 shares                of                Biocurex’s common stock at prices between $0.08 and $0.38 per share. The                warrants expire at various dates between January 17 and November                11, 2005.                As of March 15, 2005 warrants to purchase 737,494 shares had been                exercised. For every share issued upon conversion the note holders                are                entitled to receive warrants to purchase one additional share of                common                stock at prices between $0.05 and $0.38 per share. The warrants expire                at                various dates between January 17 and November 11, 2008. A warrant                for                955,800 shares was issued when the $143,700 note was converted. If                all                remaining notes were converted, Biocurex would be obligated to issue                warrants which would allow the holders to purchase 2,243,549 additional                shares of Biocurex’s common stock. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **ITEM                6.** | **MANAGEMENT’S                DISCUSSION AND ANALYSIS AND PLAN OF                OPERATION** |
|----------------------------|----------------------------------------------------------------------------------------------------|

|   | Ÿ | has                  developed a cancer detection kit for tissues (Histo-RECAFTM) which stains                  cancer cells thereby allowing a pathologist to easily see the cancer                  cells                  with the use of a microscope, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | has                  developed the Cryo-RECAFTM diagnostic kit which can be used by pathologists                  as an aid in determining whether cancer cells are benign or malignant                  during surgery, and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | is                  working on the development of a screening assay which can detect                  multiple                  cancers from a blood (serum) sample. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Ÿ | will                  continue its efforts to license the Histo-Recaf technology to third                  parties. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | plans                  to enter into agreements relating to its RIA blood test with clinical                  laboratories using ASRs. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | intends                  to license its Serum-RECAFTM to other major bio-pharma                  companies. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | if                  necessary, will continue to raise capital through the sale of its                  common                  stock or securities convertible into common stock in order to fund                  Biocurex’s operations and research and                  development. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | continue                  research in the areas of therapeutics and                  imagery. |
|--------|--------|-----------------------------------------------------------------------------------------------|

| Results                of Operations: |   | Year                EndedDecember                31, 2005 |       | Year                EndedDecember                31, 2004 |   |
|---------------------------------------|--------|-----------------------------------------------------------|------------|-----------------------------------------------------------|--------|
|                                  |   |                                                      |       |                                                      |   |
| Revenue                               |   | $                                                         | 200,000    |                                                      | $      | 209,006 |   |
| Operating                Expenses     |   | $                                                         | (1,861,312 | )                                                         | $      | (1,540,227 | ) |
| Other                income (expense) |   | $                                                         | (94,618    | )                                                         | $      | (75,234 | ) |
| Net                loss               |   | $                                                         | (1,755,930 | )                                                         | $      | (1,406,455 | ) |

----

| Balance                Sheet Data:       |   |      |      |      |   |
|------------------------------------------|--------|-----------|-----------|-----------|--------|
|                                     |   | 31-Dec-05 |      | 31-Dec-04 |   |
|                                     |   |      |      |      |   |
| Current                Assets            |   | $         | 666,658   |      | $      | 589,021 |   |
| Total                Assets              |   | $         | 943,460   |      | $      | 822,861 |   |
| Current                Liabilities       |   | $         | 1,152,088 |      | $      | 1,095,834 |   |
| Total                Liabilities         |   | $         | 1,152,088 |      | $      | 1,095,834 |   |
| Working                Capital (Deficit) |   | $         | (485,430  | )         | $      | (506,813 | ) |
| Stockholders'                (Deficit)   |   | $         | (208,628  | )         | $      | (272,973 | ) |

| Item                                            |   | Increase                (I)or                Decrease (D) |   | Reason                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-------------------------------------------------|--------|-----------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                            |   |                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Professional                and Consulting Fees |   | I                                                         |   | The                Company filed an SB2 in Year 2005, which resulted in additional                fees.                                                                                                                                                                                                                                                                                                                                           |
|                                            |   |                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| General                and Administrative       |   | I                                                         |   | Increase                in G&A is mainly due to a $100,000 dollars increase in public                relations expense and $62,000 dollars in administrative expense.                Increase                also due to $53,000 dollars in higher stock based compensation recognized                in the current year. In addition, the prior year balance included                $50,000                dollars in bad debt recoveries. |
|                                            |   |                                                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Interest                Expense                 |   | I                                                         |   | Expense                in 2005 reflected the value of warrants which were issued upon the                conversion of a note.                                                                                                                                                                                                                                                                                                                    |

----

| Cash                used in operations                                                                                  |   | $      | (861,039  | )      |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                                                                    |   |   |      |   |
| Capitalized                patent costs                                                                                 |   |   | (42,858   | )      |
|                                                                                                                    |   |   |      |   |
| Sale                of common stock in private placements and exercise of options and                warrants           |   |   | 1,060,154 |   |
|                                                                                                                    |   |   |      |   |
| Collection                of subscription receivable                                                                    |   |   | 50,000    |   |
|                                                                                                                    |   |   |      |   |
| Repayment                to Related Parties                                                                             |   |   | (99,242   | )      |
|                                                                                                                    |   |   |      |   |
| Use                of cash during year ended December 31, 2004                                                          |   |   | (38,870   | )      |
|                                                                                                                    |   |   |      |   |
| Biocurex’s                sources and (uses) of cash during the year ended December 31, 2005                were: |   |   |      |   |
|                                                                                                                    |   |   |      |   |
| Cash                used in operations                                                                                  |   | $      | (598,867  | )      |
|                                                                                                                    |   |   |      |   |
| Capitalized                patent costs                                                                                 |   |   | (72,003   | )      |
|                                                                                                                    |   |   |      |   |
| Sale                of common stock in private placements and exercise of options and                warrants           |   |   | 787,735   |   |
|                                                                                                                    |   |   |      |   |
| Repayment                to Related Parties                                                                             |   |   | (52,607   | )      |
|                                                                                                                    |   |   |      |   |
| Increase                of cash during year ended December 31, 2005                                                     |   |   | 157,698   |   |

----

| Research                and Development - Theraputics           |   | $      | 400,000   |   |
|-----------------------------------------------------------------|--------|--------|-----------|--------|
| Research                and Development - Histo-Recaf kits      |   |   | 75,000    |   |
| Research                and Development - Serum screening assay |   |   | 250,000   |   |
| Research                and Development - Imagery               |   |   | 200,000   |   |
| Payment                of Outstanding Liabilities               |   |   | 420,000   |   |
| General                and Administrative Expenses              |   |   | 320,000   |   |
| Marketing                and Investor Communications            |   |   | 200,000   |   |
| Total:                                                          |   | $      | 1,865,000 |   |

----

*Revenue      Recognition. *
*Revenue      Recognition in Financial Statements*

*Long-lived      Assets*
*Accounting      for the Impairment or Disposal of Long-Lived Assets*

*Investments*

*Stock      Options*

| **ITEM                7.** | **FINANCIAL                STATEMENTS.** |
|----------------------------|------------------------------------------|

----

| **ITEM                8.** | **CHANGES                IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL                DISCLOSURES** |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------|

----

|   | Ÿ | the                  shares of common stock issued as payment for the Curex notes could                  not be                  valued, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | for                  financial reporting purposes the intellectual property acquired                  from                  Curex, originally valued at $1,715,674, should be shown as having                  no                  value, and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | the                  value of the patents acquired from Curex should be reduced by $149,410                  so                  as to reflect the amount spent by Curex in obtaining the                  patents. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **ITEM                8A.** | **CONTROLS                AND PROCEDURES** |
|-----------------------------|--------------------------------------------|

*Securities      Exchange Act of 1934 *

----

*** Inadequate      controls over equity transactions.***

|   | Ÿ | We                will utilize an outside consulting firm to review all equity transactions                and assist in the implementation of appropriate review and supervision                controls to ensure the proper and timely recording of equity transactions. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | We                will have extensive internal review and approval of all equity                transactions and ensure proper supporting documentation is maintained. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **ITEM                8B.** | **OTHER                INFORMATION** |
|-----------------------------|--------------------------------------|

| **ITEM                9.** | **DIRECTORS,                EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL                PERSONS.** |
|----------------------------|--------------------------------------------------------------------------------------------------|

| Name                                 |   | Age      |   | Position                                                                         |
|--------------------------------------|--------|----------|--------|----------------------------------------------------------------------------------|
|                                 |   |     |   |                                                                             |
| Dr.                Ricardo Moro      |   |  53 |   | President,                Chief Executive Officer and a Director                 |
| Dr.                Gerald Wittenberg |   |  53 |   | Principal                Financial Officer, Secretary, Treasurer, and a Director |
| Dr.                Phil Gold, PhD    |   |  66 |   | Director                                                                         |

**Dr.**
**Ricardo      Moro, MD. - **

**Dr.      Gerald Wittenberg**
**D.M.D.,      MS.**

**Dr.      Phil Gold, C.C., O.Q., MD., PhD.**

----

**ITEM      10. **
**EXECUTIVE      COMPENSATION**

| Name                andPrincipalPosition |   | FiscalYear |   | Salary(1) |   | Bonus(2) |   | OtherAnnualCompensation(3) |   | Restricted                StockAwards(4) |   | OptionsGranted(5) |   | AllOtherCompensation(6) |   |
|------------------------------------------|--------|------------|--------|-----------|--------|----------|--------|----------------------------|--------|------------------------------------------|--------|-------------------|--------|-------------------------|--------|
|                                     |   |       |   |      |   |     |   |                       |   |                                     |   |              |   |                    |   |
| Dr.                Ricardo Moro          |   |       | 2005   |      | $      | --       |   |                       | --     |                                     |   | --                |   |                    | --     |   |   | 225,000 |   |   | -- |   |
| Chief                Executive Officer   |   |       | 2004   |      | $      | --       |   |                       | --     |                                     |   | --                |   |                    | --     |   |   | 650,000 |   |   | -- |   |
| since                December 10, 2002   |   |       | 2003   |      | $      | --       |   |                       | --     |                                     |   | --                |   |                    | --     |   |   | 800,000 |   |   | -- |   |

| (1) | The                dollar value of base salary (cash and non-cash) earned during the                fiscal                year. Biocurex owed Dr. Moro $7,000 for accrued compensation at December                31, 2003, and 2004. In March 2003 Dr. Moro applied $35,000 of the                amount                owed to him toward the exercise price of options to purchase 500,000                shares of Biocurex’s common stock. In March 2003 Biocurex issued Dr. Moro                250,000 shares in payment of $12,000 of accrued                compensation. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                  dollar value of bonus (cash and non-cash)                  received. |
|-----|-------------------------------------------------------------------------------------------|

| (3) | Any other annual compensation not properly categorized                as                salary or bonus, including perquisites and other personal benefits,                securities or property. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | During the periods covered by the table, the value                of the                shares of Biocurex’s common stock issued as compensation for                services. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                            |   | Shares  |   | Value    |
|---------------------------------|--------|---------|--------|----------|
|                            |   |    |   |     |
| Dr.                Ricardo Moro |   | 250,000 |   | $215,000 |

| (5) | The                shares of common stock to be received upon the exercise of all stock                options granted during the periods covered by the table. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | All                other compensation received that Biocurex could not properly report                in any                other column of the table. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

**Employment      Contracts**

**Long-Term      Incentive Plans - Awards in Last Fiscal Year**

**Employee      Pension, Profit Sharing or Other Retirement Plans**

**Compensation      of Directors**

**Stock      Option and Bonus Plans**

----

**Non-Qualified      Stock Option Plan**

**Stock      Bonus Plan**

**Other      Information Regarding the Plans**

----

**Options      Granted and Exercised During the Three Years Ended **

**December      31, 2005 and Value of Options at December 31, 2005**

|                                 |   |                                                                                             |  **2003** |                                                               |   |                          |          |           |
|--------------------------------------|--------|--------------------------------------------------------------------------------------------------|----------------|--------------------------------------------------------------------|--------|-------------------------------|---------------|----------------|
|                                 |   |                                                                                             |           |                                                               |   |                          |          |           |   |
| Name                                 |   | Shares                IssuableUpon                Exercise ofOptions/Warrants                (1) |           | %                of TotalOptionsGranted                toEmployees |   | Price                PerShare |          | ExpirationDate |   |
|                                 |   |                                                                                             |           |                                                               |   |                          |          |           |   |
| Dr.                Ricardo Moro      |   |                                                                                             | 800,000        |                                                     |   | 24                            | %   | $              | 0.001                (2 | )   |   | 8/31/08 |   |
| Dr.                Gerald Wittenberg |   |                                                                                             | 800,000        |                                                               |   | 24                            | %             | $              | 0.001                (2 | ) |   | 8/31/08 |   |
| Dr.                Phil Gold         |   |                                                                                             | 150,000        |                                                               |   | 5                             | %             | $              | 0.001                (2 | ) |   | 8/31/08 |   |
|                                 |   |                                                                                             |           |                                                               |   |                          |          |           |   |   |   |   |   |

|                                 |   |                                                                                             |  **2004** |                                                               |   |                          |          |           |
|--------------------------------------|--------|--------------------------------------------------------------------------------------------------|----------------|--------------------------------------------------------------------|--------|-------------------------------|---------------|----------------|
|                                 |   |                                                                                             |           |                                                               |   |                          |          |           |   |
| Name                                 |   | Shares                IssuableUpon                Exercise ofOptions/Warrants                (1) |           | %                of TotalOptionsGranted                toEmployees |   | Price                PerShare |          | ExpirationDate |   |
|                                 |   |                                                                                             |           |                                                               |   |                          |          |           |   |
| Dr.                Ricardo Moro      |   |                                                                                             | 650,000        |                                                               |   | 28.6                          | %   | $              | 0.001 |   |   | 3/31/09 |   |
| Dr.                Gerald Wittenberg |   |                                                                                             | 650,000        |                                                               |   | 28.6                          | %             | $              | 0.001 |   |   | 3/31/09 |   |
| Dr.                Phil Gold         |   |                                                                                             | 150,000        |                                                               |   | 6.6                           | %             | $              | 0.001 |   |   | 3/31/09 |   |
|                                 |   |                                                                                             |           |                                                               |   |                          |          |           |   |   |   |   |   |

|                                 |   |                                                                                             |  **2005** |                                                               |   |                          |          |           |
|--------------------------------------|--------|--------------------------------------------------------------------------------------------------|----------------|--------------------------------------------------------------------|--------|-------------------------------|---------------|----------------|
| Name                                 |   | Shares                IssuableUpon                Exercise ofOptions/Warrants                (1) |           | %                of TotalOptionsGranted                toEmployees |   | Price                PerShare |          | ExpirationDate |   |
|                                 |   |                                                                                             |           |                                                               |   |                          |          |           |   |
| Dr.                Ricardo Moro      |   |                                                                                             | 225,000        |                                                               |   | 27.0                          | %   | $              | 0.001 |   |   | 3/31/09 |   |
| Dr.                Gerald Wittenberg |   |                                                                                             | 225,000        |                                                               |   | 27.0                          | %             | $              | 0.001 |   |   | 3/31/09 |   |
| Dr.                Phil Gold         |   |                                                                                             | 50,000         |                                                               |   | 6.0                           | %             | $              | 0.001 |   |   | 3/31/09 |   |

| (1) | These                options were granted pursuant to Biocurex’s Non-Qualified Stock Option                Plan. On March 12, 2003 Dr. Moro and Dr. Wittenberg each agreed to                the                cancellation of options for the purchase of 100,000 shares. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                exercise price of these options was set at below market value to                compensate Dr. Moro, Dr. Wittenberg and Dr. Gold for services provided                to                Biocurex. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   |                           |    | Shares                                                |   |                             |         | Number                ofUnexercisedOptions                (3) |    | Value                (in $) ofUnexercised                In-the-Money                Options atDecember                31, 2005(4) |   |
|--------------------------------------|--------|--------------------------------|---------|-------------------------------------------------------|--------|----------------------------------|--------------|---------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                 |   | Date                ofExercise |    | Acquired                OnExercise                (1) |   | ValueRealized                (2) |         | Exercisable/                Unexercisable                     |    | Exercisable/                Unexercisable                                                                                          |   |
|                                 |   |                           |    |                                                  |   |                             |         |                                                          |    |                                                                                                                               |   |
| Dr.                Ricardo Moro      |   |                           | 1/8/03  |                                                  |   | 500,000                          |    | $                                                             | 5,000   |                                                                                                                               |   | --/-- |   |   | --/-- |   |
| Dr.                Gerald Wittenberg |   |                           | 1/8/03  |                                                  |   | 500,000                          |         | $                                                             | 5,000   |                                                                                                                               |   | --/-- |   |   | --/-- |   |
| Dr.                Phil Gold         |   |                           | 1/17/03 |                                                  |   | 130,000                          |         | $                                                             | 5,200   |                                                                                                                               |   | --/-- |   |   | --/-- |   |
| Dr.                Ricardo Moro      |   |                           | 11/3/03 |                                                  |   | 150,000                          |         | $                                                             | 31,500  |                                                                                                                               |   | 650,000/-- |   |   |   |   |
| Dr.                Gerald Wittenberg |   |                           | 11/3/03 |                                                  |   | 150,000                          |         | $                                                             | 31,500  |                                                                                                                               |   | 650,000/-- |   |   |   |   |
| Dr.                Phil Gold         |   |                           | 11/3/03 |                                                  |   | 150,000                          |         | $                                                             | 31,500  |                                                                                                                               |   | --/-- |   |   | --/-- |   |
| Dr.                Ricardo Moro      |   |                           | 9/3/04  |                                                  |   | 200,000                          |         | $                                                             | 150,000 |                                                                                                                               |   | 450,000/-- |   |   |   |   |
| Dr.                Gerald Wittenberg |   |                           | 9/28/04 |                                                  |   | 200,000                          |         | $                                                             | 146,000 |                                                                                                                               |   | 450,000/-- |   |   | --/-- |   |
| Dr.                Phil Gold         |   |                           | 4/5/04  |                                                  |   | 150,000                          |         | $                                                             | 357,000 |                                                                                                                               |   | --/-- |   |   | --/-- |   |

| (1) | The                number of shares received upon exercise of options during the three                years                ended December 31, 2005. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | With                respect to options exercised during Biocurex’s three years ended                December 31, 2005, the dollar value of the difference between the                option exercise price and the market value of the option shares purchased                on the date of the exercise of the                options. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The                total number of unexercised options held as of December 31, 2005,                separated between those options that were exercisable and those options                that were not exercisable. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | For                all unexercised options held as of December 31, 2005, the market                value of                the stock underlying those options as of December 31, 2005. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Summary**

| Plan                category       |   | Numberof                Securitiesto                be IssuedUpon                Exerciseof                OutstandingOptions                [a] |      | Weighted-AverageExercise                Price ofof                OutstandingOptions                [b] |   | Number                of Securities RemainingAvailable                For Future IssuanceUnder                Equity CompensationPlans                (Excluding SecuritiesReflected                in Column (a))[c] |               |
|------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
|                               |   |                                                                                                                                             |      |                                                                                                    |   |                                                                                                                                                                                                                  |               |
| Non-Qualified                Stock |   |                                                                                                                                             | 2,575,000 |                                                                                          |        | $0.06                                                                                                                                                                                                                 |     |   | 3,761,056 |   |
| Option                Plan         |   |                                                                                                                                             |      |                                                                                                    |   |                                                                                                                                                                                                                  |               |   |   |   |

----

| Name                of Plan        |   | Total                SharesReservedUnder                Plans |       | OptionsGranted |   | OptionsExercised |   | SharesIssued                AsStock                Bonus |      | RemainingOptions/SharesUnder                Plans |   |
|------------------------------------|--------|---------------------------------------------------------------|------------|----------------|--------|------------------|--------|----------------------------------------------------------|-----------|---------------------------------------------------|--------|
|                               |   |                                                          |       |           |   |             |   |                                                     |      |                                              |   |
| Non-Qualified                Stock |   |                                                          |       |           |   |             |   |                                                     |      |                                              |   |
| Option                Plan         |   |                                                          | 12,500,000 |           |   | 9,053,944        |   |                                                     | 5,747,944 |                                              |   | N/A |   |   | 3,246,056 |   |
|                               |   |                                                          |       |           |   |             |   |                                                     |      |                                              |   |   |   |   |   |   |
| Stock                Bonus Plan    |   |                                                          | 5,500,000  |           |   | N/A              |   |                                                     | N/A       |                                              |   | 1,582,670 |   |   | 3,917,330 |   |

| Name                                            |   | OptionsGranted |      | ExercisePrice      |   | ExpirationDate                (2) |   | Options                Exercised asof                January 31, 2005 |                                            |
|-------------------------------------------------|--------|----------------|-----------|--------------------|--------|-----------------------------------|--------|-----------------------------------------------------------------------|-------------------------------------------------|
| Ricardo                Moro                     |   |           | 500,000   |     | $      | 0.07                (1            | )      |                                                                  | 11/1/2004                                       |   |   | 500,000 |   |
| Gerald                Wittenberg                |   |           | 500,000   |               | $      | 0.07                (1            | )      |                                                                  | 11/1/2004                                       |   |   | 500,000 |   |
| Phil                Gold                        |   |           | 130,000   |               | $      | 0.07                (1            | )      |                                                                  | 11/1/2004                                       |   |   | 130,000 |   |
| Ricardo                Moro                     |   |           | 800,000   |               | $      | 0.001                (4           | )      |                                                                  | 8/31/2008                                       |   |   | 150,000 |   |
| Gerald                Wittenberg                |   |           | 800,000   |               | $      | 0.001                (4           | )      |                                                                  | 8/31/2008                                       |   |   | 150,000 |   |
| Phil                Gold                        |   |           | 150,000   |               | $      | 0.001                (4           | )      |                                                                  | 8/31/2008                                       |   |   | 150,000 |   |
| Ricardo                Moro                     |   |           | 650,000   |               | $      | 0.001                (4           | )      |                                                                  | 3/31/2009                                       |   |   | 200,000 |   |
| Gerald                Wittenberg                |   |           | 650,000   |               | $      | 0.001                (4           | )      |                                                                  | 3/31/2009                                       |   |   | 200,000 |   |
| Phil                Gold                        |   |           | 150,000   |               | $      | 0.001                (4           | )      |                                                                  | 3/31/2009                                       |   |   | 150,000 |   |
| Ricardo                Moro                     |   |           | 225,000   |               | $      | 0.001                (4           | )      |                                                                  | 1/31/2009                                       |   |   | -- |   |
| Gerald                Wittenberg                |   |           | 225,000   |               | $      | 0.001                (4           | )      |                                                                  | 1/31/2009                                       |   |   | -- |   |
| Phil                Gold                        |   |           | 50,000    |               | $      | 0.001                (4           | )      |                                                                  | 1/31/2009                                       |   |   | -- |   |
| Ricardo                Moro                     |   |           | 230,000   |               | $      | 0.001                (4           | )      |                                                                  | 2/28/2010                                       |   |   | -- |   |
| Gerald                Wittenberg                |   |           | 230,000   |               | $      | 0.001                (4           | )      |                                                                  | 2/28/2010                                       |   |   | -- |   |
| Phil                Gold                        |   |           | 55,000    |               | $      | 0.001                (4           | )      |                                                                  | 2/28/2010                                       |   |   | -- |   |
| Other                employees and consultants: |   |           | 3,708,944 |               |   | (5                                | )      |                                                                  | various                dates prior to 3/31/2009 |   |   | 3,617,944 |   |

| (1) | On                December 5, 2002 Biocurex’s Board of Directors approved a resolution                lowering the exercise price of these options from $1.00 to $0.07.                Biocurex’s directors authorized the repricing of the options since the                exercise price of the options prior to their repricing was substantially                in excess of the market price of Biocurex’s common stock on the repricing                date and as a result the options no longer served as an effective                incentive to the holders of the                options |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | The                options may expire on earlier dates as the result of the termination                of                the option holder’s employment or other association with                Biocurex. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The                exercise price of these options was set at below market value to                compensate Dr. Moro, Dr. Wittenberg and Dr. Gold for services provided                to                Biocurex. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Exercise                prices vary between $0.07 and $0.75 per                share. |
|-----|---------------------------------------------------------------------------------------|

| Name                                           |   | Date   |    | Shares |   |
|------------------------------------------------|--------|--------|---------|--------|--------|
|                                           |   |   |    |   |   |
| Former                employee and consultants |   |   | various |   |   | 1,582,670 |   |

| Name                                 |   | Shares                Issuable UponExercise                of Warrants |      | ExercisePrice      |   | ExpirationDate |               |
|--------------------------------------|--------|------------------------------------------------------------------------|-----------|--------------------|--------|----------------|--------------------|
|                                 |   |                                                                   |      |               |   |           |               |
| Dr.                Gerald Wittenberg |   |                                                                   | 252,278   |     | $      | 0.05           |     |   | 12/31/06 |   |
| Dr.                Gerald Wittenberg |   |                                                                   | 1,275,000 |               | $      | 0.08           |               |   | 01/15/08 |   |

| **ITEM                11.** | **SECURITY                OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND                MANAGEMENT.** |
|-----------------------------|---------------------------------------------------------------------------------------------------|

| **Name                and Address**                      |   | **Number                of****Shares                (1)** |      | **Percent                of****Class** |   |
|----------------------------------------------------------|--------|-----------------------------------------------------------|-----------|----------------------------------------|--------|
|                                                     |   |                                                      |      |                                   |   |
| Dr.                Ricardo Moro                          |   |                                                      | 1,805,000 |                                   |   | 5.09 | % |
| 1007-1625                West 13th                Avenue |   |                                                      |      |                                   |   |   |   |
| Vancouver,                British Columbia               |   |                                                      |      |                                   |   |   |   |
| Canada                V6J 2E9                            |   |                                                      |      |                                   |   |   |   |
|                                                     |   |                                                      |      |                                   |   |   |   |
| Dr.                Gerald Wittenberg                     |   |                                                      | 3,332,278 |                                   |   | 9.39 | % |
| 6857                Churchill Street                     |   |                                                      |      |                                   |   |   |   |
| Vancouver,                British Columbia               |   |                                                      |      |                                   |   |   |   |
| Canada                V6P 5B4                            |   |                                                      |      |                                   |   |   |   |
|                                                     |   |                                                      |      |                                   |   |   |   |
| Dr.                Phil Gold                             |   |                                                      | 105,000   |                                   |   | 0.30 | % |
| 3225                The Boulevard                        |   |                                                      |      |                                   |   |   |   |
| Westmount,                Quebec                         |   |                                                      |      |                                   |   |   |   |
| Canada                H3Y 1S4                            |   |                                                      |      |                                   |   |   |   |
|                                                     |   |                                                      |      |                                   |   |   |   |
| All                Officers and Directors                |   |                                                      | 5,242,278 |                                   |   | 14.77 | % |
| as                a Group (3 persons)                    |   |                                                      |      |                                   |   |   |   |

----

| (1) | Includes                shares issuable upon the exercise of options granted to the following                persons, all of which are presently exercisable. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                                 |   | Shares                Issuable UponExercise                of Options |      | Option                ExercisePrice |   |
|--------------------------------------|--------|-----------------------------------------------------------------------|-----------|-------------------------------------|--------|
|                                 |   |                                                                  |      |                                |   |
| Dr.                Ricardo Moro      |   |                                                                  | 1,555,000 |                      | $      | 0.001 |   |
| Dr.                Gerald Wittenberg |   |                                                                  | 252,278   |                                | $      | 0.05 |   |
| Dr.                Gerald Wittenberg |   |                                                                  | 1,275,000 |                                | $      | 0.08 |   |
| Dr.                Gerald Wittenberg |   |                                                                  | 1,555,000 |                                | $      | 0.001 |   |
| Dr.                Phil Gold         |   |                                                                  | 105,000   |                                | $      | 0.001 |   |

| **ITEM                12.** | **CERTAIN                RELATIONSHIPS AND RELATED                TRANSACTIONS.** |
|-----------------------------|-----------------------------------------------------------------------------------|

----

|   | Ÿ | Patents |
|--------|--------|---------|

|   | Ÿ | Proprietary                technology |
|--------|--------|---------------------------------------|

|   | Ÿ | Cash                in the amount of $129,032 |
|--------|--------|-----------------------------------------------|

|   | Ÿ | A                51% interest in Biolargo. |
|--------|--------|--------------------------------------------|

----

| **ITEM                13.** | **EXHIBITS                AND REPORTS ON FORM 8-K** |
|-----------------------------|-----------------------------------------------------|

| ExhibitNumber  |   | Exhibit                Name                                                                                 |   | Page                Number                                                                                                                                             |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                        |   |                                                                                                                                                                   |
| 3.1                 |   | Certificate                of Incorporation                                                                 |   | Incorporated                by reference to Exhibit 3.1 to Biocurex’s Registration Statement on Form                10-SB.                                       |
|                |   |                                                                                                        |   |                                                                                                                                                                   |
| 3.2                 |   | Bylaws                                                                                                      |   | Incorporated                by reference to Exhibit 3.2 to Registration Statement on Form                10-SB.                                                        |
|                |   |                                                                                                        |   |                                                                                                                                                                   |
| 4.1                 |   | Non-Qualified                Stock Option Plan                                                              |   | Incorporated                by reference to Exhibit 4.1 of Biocurex’s Registration Statement on Form                S-8 (Commission File No. 333-103259).        |
|                |   |                                                                                                        |   |                                                                                                                                                                   |
| 4.2                 |   | Stock                Bonus Plan                                                                             |   | Incorporated                by reference to Exhibit 4.2 of Biocurex’s Registration Statement on Form                S-8 (Commission File No. 333-103529).        |
|                |   |                                                                                                        |   |                                                                                                                                                                   |
| 10.1                |   | Asset                Purchase Agreement relating to the acquisition                of Lagostar Trading S.A. |   | Incorporated                by reference to Exhibit 10.2 to the Company’s                report on Form 8-K dated February 20, 2001.                             |
|                |   |                                                                                                        |   |                                                                                                                                                                   |
| 10.2                |   | Asset                Purchase Agreement with Curex                Technologies, Inc.                        |   | Incorporated                by reference to Exhibit 10.2 to Biocurex’s                report on From 10-KSB for the year ended December 31,                2001. |
|                |   |                                                                                                        |   |                                                                                                                                                                   |
| 31                  |   | Rule                13a-14(a) Certifications                                                                |   |                                                                                                                                                                   |
|                |   |                                                                                                        |   |                                                                                                                                                                   |
| 32                  |   | Section                1350 Certifications                                                                  |   |                                                                                                                                                                   |

| **ITEM                14.** | **PRINCIPAL                ACCOUNTANT FEES AND                SERVICES** |
|-----------------------------|--------------------------------------------------------------------------|

----

|                                          |   | 2005   |   | 2004               |   |
|-----------------------------------------------|--------|--------|--------|--------------------|--------|
|                                          |   |   |   |               |   |
| Audit                Fees                     |   | $      | 26,500 |     | $      | 21,500 |   |
| Audit                Related Fees             |   |   | --     |               |   | -- |   |
| Financial                Information Systems  |   |   | --     |               |   | -- |   |
| Design                and Implementation Fees |   |   | --     |               |   | -- |   |
| Tax                Fees                       |   |   | --     |               |   | -- |   |
| All                Other Fees                 |   |   | --     |               |   | -- |   |

----

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

| Report                of Independent Registered Public Accounting Firm | F-1                        |
|------------------------------------------------------------------------|----------------------------|
|                                                                   |                       |
| Balance                Sheets                                          | F-2                        |
|                                                                   |                       |
| Statements                of Operations                                | F-3                        |
|                                                                   |                       |
| Statements                of Cash Flows                                | F-4                - F-5   |
|                                                                   |                       |
| Statement                of Stockholders’ Deficit                | F-6                - F-10  |
|                                                                   |                       |
| Notes                to the Financial Statements                       | F-11                - F-27 |

----

*Index*

*“Manning      Elliott LLP”*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**BALANCE      SHEETS**

| ASSETS                                                                                                                                                                     |   | December                  31, 2005 |       | December                  31, 2004 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|------------------------------------|--------|
|                                                                                                                                                                       |   | $                                  |       | $                                  |   |
| Current                Assets:                                                                                                                                             |   |                               |       |                               |   |
| Cash                                                                                                                                                                       |   |                               | 252,177    |                               |   | 94,479 |   |
| Investment                securities (Note 3)                                                                                                                              |   |                               | 366,000    |                               |   | 384,000 |   |
| Prepaid                expenses                                                                                                                                            |   |                               | 4,711      |                               |   | 10,000 |   |
| Notes                receivable, net of allowance for doubtful accounts of $65,298 and                $51,298,                respectively (Note 4)                        |   |                               | 43,770     |                               |   | 100,542 |   |
| Total                Current Assets                                                                                                                                        |   |                               | 666,658    |                               |   | 589,021 |   |
|                                                                                                                                                                       |   |                               |       |                               |   |   |   |
| Patents                (Note 5)                                                                                                                                            |   |                               | 276,802    |                               |   | 233,840 |   |
|                                                                                                                                                                       |   |                               |       |                               |   |   |   |
| Total                Assets                                                                                                                                                |   |                               | 943,460    |                               |   | 822,861 |   |
|                                                                                                                                                                       |   |                               |       |                               |   |   |   |
| LIABILITIES                AND STOCKHOLDERS' DEFICIT                                                                                                                       |   |                               |       |                               |   |   |   |
|                                                                                                                                                                       |   |                               |       |                               |   |   |   |
| Current                Liabilities                                                                                                                                         |   |                               |       |                               |   |   |   |
| Accounts                payable                                                                                                                                            |   |                               | 322,217    |                               |   | 106,557 |   |
| Accrued                liabilities                                                                                                                                         |   |                               | 75,679     |                               |   | 39,108 |   |
| Due                to related parties (Note 6)                                                                                                                             |   |                               | 420,819    |                               |   | 473,426 |   |
| Convertible                notes payable (Note 7)                                                                                                                          |   |                               | 333,373    |                               |   | 476,743 |   |
| Total                Current Liabilities                                                                                                                                   |   |                               | 1,152,088  |                               |   | 1,095,834 |   |
|                                                                                                                                                                       |   |                               |       |                               |   |   |   |
| Commitments                and Contingencies (Notes 1 and 11)                                                                                                              |   |                               |       |                               |   |   |   |
|                                                                                                                                                                       |   |                               |       |                               |   |   |   |
| Stockholders'                Deficit                                                                                                                                       |   |                               |       |                               |   |   |   |
| Common                stock, $0.001 par value; 125,000,000 shares Authorized; 34,065,437                and                30,764,307 issued and outstanding, respectively |   |                               | 34,065     |                               |   | 30,764 |   |
| Additional                paid-in capital                                                                                                                                  |   |                               | 7,099,095  |                               |   | 5,527,599 |   |
| Common                stock subscribed                                                                                                                                     |   |                               | 85,962     |                               |   | - |   |
| Stock                subscriptions receivable                                                                                                                              |   |                               | -          |                               |   | (150,682 | ) |
| Deferred                compensation                                                                                                                                       |   |                               | -          |                               |   | (26,834 | ) |
| Accumulated                other comprehensive income                                                                                                                      |   |                               | 204,000    |                               |   | 222,000 |   |
| Accumulated                deficit                                                                                                                                         |   |                               | (114,175   | )                                  |   | (114,175 | ) |
| Deficit                accumulated during the development stage                                                                                                            |   |                               | (7,517,575 | )                                  |   | (5,761,645 | ) |
| Total                Stockholders' Deficit                                                                                                                                 |   |                               | (208,628   | )                                  |   | (272,973 | ) |
|                                                                                                                                                                       |   |                               |       |                               |   |   |   |
| Total                Liabilities and Stockholders' Deficit                                                                                                                 |   |                               | 943,460    |                               |   | 822,861 |   |

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**STATEMENTS      OF OPERATIONS**

|                                                           |   | Years                Ended December                31, |       | Accumulated                During Development                Stage January                1, 2001 to                December                31, |   |
|----------------------------------------------------------------|--------|--------------------------------------------------------|------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                           |   | 2005                                                   |       | 2004                                                                                                                                            |   | 2005 |   |
|                                                           |   | $                                                      |       | $                                                                                                                                               |   | $ |   |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |
| Revenue                                                        |   |                                                   | 200,000    |                                                                                                                                            |   | 209,006 |   |   | 414,456 |   |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Operating                Expenses                              |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Amortization                                                   |   |                                                   | 29,041     |                                                                                                                                            |   | 16,650 |   |   | 86,080 |   |
| General                and administrative (Note 6(b))          |   |                                                   | 802,513    |                                                                                                                                            |   | 511,940 |   |   | 2,199,218 |   |
| Professional                and consulting fees                |   |                                                   | 584,498    |                                                                                                                                            |   | 541,237 |   |   | 3,415,057 |   |
| Research                and development (Note 6(b))            |   |                                                   | 445,260    |                                                                                                                                            |   | 470,400 |   |   | 1,829,560 |   |
| Total                Operating Expenses                        |   |                                                   | 1,861,312  |                                                                                                                                            |   | 1,540,227 |   |   | 7,529,915 |   |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Loss                From Operations                            |   |                                                   | (1,661,312 | )                                                                                                                                               |   | (1,331,221 | ) |   | (7,115,459 | ) |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Other                Income (Expense)                          |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Gain                on extinguishments of convertible debt     |   |                                                   | -          |                                                                                                                                            |   | - |   |   | 33,584 |   |
| Gain                on sale of equity investment               |   |                                                   | -          |                                                                                                                                            |   | - |   |   | 89,533 |   |
| Interest                expense                                |   |                                                   | (105,033   | )                                                                                                                                               |   | (44,418 | ) |   | (835,452 | ) |
| Interest                income                                 |   |                                                   | 10,415     |                                                                                                                                            |   | 2,659 |   |   | 343,694 |   |
| Loss                on issuance of shares                      |   |                                                   | -          |                                                                                                                                            |   | (33,475 | ) |   | (33,475 | ) |
| Total                Other Income (Expense)                    |   |                                                   | (94,618    | )                                                                                                                                               |   | (75,234 | ) |   | (402,116 | ) |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Net                loss                                        |   |                                                   | (1,755,930 | )                                                                                                                                               |   | (1,406,455 | ) |   | (7,517,575 | ) |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Other                Comprehensive Income (Loss):              |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Unrealized                gain (loss) on investment securities |   |                                                   | (18,000    | )                                                                                                                                               |   | 174,000 |   |   | 204,000 |   |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Total                Comprehensive Loss                        |   |                                                   | (1,773,930 | )                                                                                                                                               |   | (1,232,455 | ) |   | (7,313,575 | ) |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Net                Loss Per Share - Basic and Diluted          |   |                                                   | (0.05      | )                                                                                                                                               |   | (0.05 | ) |   |   |   |
|                                                           |   |                                                   |       |                                                                                                                                            |   |   |   |   |   |   |
| Weighted                Average Shares Outstanding             |   |                                                   | 34,763,000 |                                                                                                                                            |   | 27,613,000 |   |   |   |   |

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**STATEMENTS      OF CASH FLOWS**

|                                                                                                             |   | Years                Ended December                31, |       | Accumulated                During Development                Stage January                1, 2001 to December                31, |   |
|------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   | 2005                                                   |       | 2004                                                                                                                             |   | 2005 |   |
|                                                                                                             |   | $                                                      |       | $                                                                                                                                |   | $ |   |
| Operating                Activities:                                                                             |   |                                                   |       |                                                                                                                             |   |   |   |
| Net                loss                                                                                          |   |                                                   | (1,755,930 | )                                                                                                                                |   | (1,406,455 | ) |   | (7,517,575 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities:        |   |                                                   |       |                                                                                                                             |   |   |   |   |   |   |
| Amortization                                                                                                     |   |                                                   | 29,041     |                                                                                                                             |   | 16,650 |   |   | 86,080 |   |
| Amortization                of deferred compensation                                                             |   |                                                   | 26,834     |                                                                                                                             |   | 106,499 |   |   | 275,000 |   |
| Stock-based                compensation expense                                                                  |   |                                                   | 836,566    |                                                                                                                             |   | 731,756 |   |   | 2,948,534 |   |
| Discount                on convertible debentures and due to related parties                                     |   |                                                   | -          |                                                                                                                             |   | - |   |   | 736,542 |   |
| Variable                accounting for equity instruments                                                        |   |                                                   | -          |                                                                                                                             |   | - |   |   | (458,110 | ) |
| Gain                on extinguishments of debt                                                                   |   |                                                   | -          |                                                                                                                             |   | - |   |   | (33,584 | ) |
| Gain                on sale of investment                                                                        |   |                                                   | -          |                                                                                                                             |   | - |   |   | (194,607 | ) |
| Allowance                for (recovery of) for uncollectible notes receivables                                   |   |                                                   | 13,398     |                                                                                                                             |   | (50,000 | ) |   | 65,298 |   |
| Changes                in operating assets and liabilities:                                                      |   |                                                   |       |                                                                                                                             |   |   |   |   |   |   |
| Increase                in accrued interest on notes receivable                                                  |   |                                                   | (6,296     | )                                                                                                                                |   | - |   |   | (6,296 | ) |
| (Increase)                decrease in prepaid expenses                                                           |   |                                                   | 5,289      |                                                                                                                             |   | (10,000 | ) |   | (4,711 | ) |
| Increase                (decrease) in accounts payable                                                           |   |                                                   | 215,660    |                                                                                                                             |   | (10,644 | ) |   | 769,861 |   |
| Increase                in accrued liabilities                                                                   |   |                                                   | 36,571     |                                                                                                                             |   | 23,837 |   |   | 75,679 |   |
| Decrease                in deferred revenue                                                                      |   |                                                   | -          |                                                                                                                             |   | (162,000 | ) |   | (162,000 | ) |
| Increase                in subscriptions receivable                                                              |   |                                                   | -          |                                                                                                                             |   | (100,682 | ) |   | (100,682 | ) |
| Net                Cash Used in Operating Activities                                                             |   |                                                   | (598,867   | )                                                                                                                                |   | (861,039 | ) |   | (3,520,571 | ) |
| Investing                Activities:                                                                             |   |                                                   |       |                                                                                                                             |   |   |   |   |   |   |
| Issuance                of notes receivable                                                                      |   |                                                   | -          |                                                                                                                             |   | (95,885 | ) |   | (100,542 | ) |
| Proceeds                from notes receivable                                                                    |   |                                                   | 93,440     |                                                                                                                             |   | - |   |   | 93,440 |   |
| Patent                costs                                                                                      |   |                                                   | (72,003    | )                                                                                                                                |   | (42,858 | ) |   | (158,414 | ) |
| Proceeds                from sale of investment                                                                  |   |                                                   | -          |                                                                                                                             |   | - |   |   | 230,666 |   |
| Net                Cash Provided by (Used in) Investing Activities Financing                Activities:          |   |                                                   | 21,437     |                                                                                                                             |   | (138,743 | ) |   | 65,150 |   |
| Increase                (decrease) in due to related parties                                                     |   |                                                   | (52,607    | )                                                                                                                                |   | (99,242 | ) |   | 486,969 |   |
| Proceeds                from convertible notes payable                                                           |   |                                                   | -          |                                                                                                                             |   | - |   |   | 639,743 |   |
| Repayment                of convertible notes payable                                                            |   |                                                   | -          |                                                                                                                             |   | - |   |   | (53,000 | ) |
| Proceeds                from private placements of common stock and shares subscriptions                received |   |                                                   | 454,594    |                                                                                                                             |   | 594,682 |   |   | 1,348,272 |   |
| Proceeds                from the exercise of stock options and warrants                                          |   |                                                   | 333,141    |                                                                                                                             |   | 465,472 |   |   | 1,043,063 |   |
| Net                Cash Provided by Financing Activities                                                         |   |                                                   | 735,128    |                                                                                                                             |   | 960,912 |   |   | 3,465,047 |   |
| Net                Increase (Decrease) in Cash                                                                   |   |                                                   | 157,698    |                                                                                                                             |   | (38,870 | ) |   | 9,626 |   |
| Cash,                Beginning of Year                                                                           |   |                                                   | 94,479     |                                                                                                                             |   | 133,349 |   |   | 242,551 |   |
| Cash,                End of Year                                                                                 |   |                                                   | 252,177    |                                                                                                                             |   | 94,479 |   |   | 252,177 |   |
|                                                                                                             |   |                                                   |       |                                                                                                                             |   |   |   |   |   |   |
| Supplemental                Disclosures                                                                          |   |                                                   |       |                                                                                                                             |   |   |   |   |   |   |
| Interest                paid                                                                                     |   |                                                   | -          |                                                                                                                             |   | - |   |   | 779 |   |
| Income                taxes                                                                                      |   |                                                   | -          |                                                                                                                             |   | - |   |   | - |   |

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**STATEMENTS      OF CASH FLOWS**

| 1) | In                  February 2005, the Company issued 70,643 common shares at $0.001                  per share                  pursuant to the exercise of 139,474 warrants by a note holder.                  The method                  of payment was based on the cashless exercise provision of the                  stock                  purchase warrant. A note payable to this same note holder in the                  amount of                  $143,370 was converted into 955,800 common shares at a conversion                  price of                  $0.15 per share. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | In                  February 2005, the Company issued 209,000 shares to employees for                  the                  exercise of their stock options by the issuance of notes receivable                  totaling $125,400. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3) | In                  July 2004, the Company issued 200,000 shares of common stock in                  settlement                  of services provided of $169,642 and services to be provided of                  $12,358. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4) | In                  February 2004, the Company issued 142,928 common shares in settlement                  of                  accounts payable totaling                  $31,444. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**STATEMENT      OF STOCKHOLDERS’ DEFICIT**

|                                                                                                                              |   |                        |       | Additional |   | Common  |   | Stock         |      |       |   | Other         |   |                         |   | DeficitAccumulatedDuring                the |   |                |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|------------|--------|---------|--------|---------------|-----------|------------|--------|---------------|--------|------------------------------|--------|---------------------------------------------|--------|---------------------|--------|
|                                                                                                                              |   | Common                Stock |       | Paid-in    |   | Stock   |   | Subscriptions |      | Deferred   |   | Comprehensive |   | Accumulated                  |   | Development                                 |   | Stockholders’ |   |
|                                                                                                                              |   | Shares                      |       | Amount     |   | Capital |   | Subscribed    |      | Receivable |   | Compensation  |   | Income                (Loss) |   | Deficit                                     |   | Stage               |   | Deficit |   |
|                                                                                                                              |   | #                           |       |  $    |   |  $ |   | $             |      |  $    |   |  $       |   |  $                      |   |  $                                     |   |  $             |   |  $ |   |
| Balance                at January 1, 2001                                                                                         |   |                        | 8,225,022  |       |   | 8,225   |   |          | 46,775    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | (114,175 | ) |   | - |   |   | (59,175 | ) |
| Capital                contributed relating to the forgiveness of advances payable (February                2001)                 |   |                        | -          |       |   | -       |   |          | 59,175    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 59,175 |   |
| Issuance                of common stock at $2.00 per share for patents and intellectual properties                (February 2001) |   |                        | 1,950,000  |       |   | 1,950   |   |          | (1,950    | )          |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Issuance                of common stock at $1.51 per share in settlement of convertible notes                payable (May 2001)   |   |                        | 1,544,404  |       |   | 1,545   |   |          | 464,616   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 466,161 |   |
| Issuance                of common stock for cash: October 2001 - $1.25 per share                                                  |   |                        | 52,000     |       |   | 52      |   |          | 65,000    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 65,052 |   |
| December                2001 - $0.97 per share                                                                                    |   |                        | 32,260     |       |   | 32      |   |          | 31,406    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 31,438 |   |
| Issuance                of common stock at $2.00 per share for services rendered (December                2001)                   |   |                        | 11,000     |       |   | 11      |   |          | 21,989    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 22,000 |   |
| Issuance                of warrants                                                                                               |   |                        | -          |       |   | -       |   |          | 175,000   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 175,000 |   |
| Cumulative                foreign currency translation adjustment                                                                 |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | 28,213 |   |   | - |   |   | - |   |   | 28,213 |   |
| Net                loss for the year                                                                                              |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | (1,089,464 | ) |   | (1,089,464 | ) |
| Balance                at December 31, 2001                                                                                       |   |                        | 11,814,686 |       |   | 11,815  |   |          | 862,011   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | 28,213 |   |   | (114,175 | ) |   | (1,089,464 | ) |   | (301,600 | ) |
| Issuance                of common stock at $0.75 per share (January 2002)                                                         |   |                        | 105,313    |       |   | 105     |   |          | 78,880    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 78,985 |   |
| Issuance                of common stock at $0.10 per share to settle convertible notes payable                (December 2002)     |   |                        | 1,100,000  |       |   | 1,100   |   |          | 108,900   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 110,000 |   |
| Issuance                of common stock for services rendered                                                                     |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |   |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| April                2002 - $0.64 per share                                                                                       |   |                        | 77,149     |       |   | 77      |   |          | 49,062    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 49,139 |   |
| July                2002 - $1.25 per share                                                                                        |   |                        | 7,400      |       |   | 8       |   |          | 9,207     |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 9,215 |   |
| Issuance                of common stock for consulting services at $0.05 per share (November                2002)                 |   |                        | 2,300,000  |       |   | 2,300   |   |          | 112,700   |       |   | -             |   |                         | -      |                                        |   | (115,000            | )      |   | - |   |   | - |   |   | - |   |   | - |   |
| Issuance                of common stock to settle accounts payable at $0.08 per share (December                2002)              |   |                        | 929,244    |       |   | 929     |   |          | 74,181    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 75,110 |   |
| Fair                value of stock options granted                                                                                |   |                        | -          |       |   | -       |   |          | 21,042    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 21,042 |   |
| Fair                value of warrants issued                                                                                      |   |                        | -          |       |   | -       |   |          | 207,188   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 207,188 |   |
| Reclassification                of warrants and options to liability                                                              |   |                        | -          |       |   | -       |   |          | (529,785  | )          |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | (529,785 | ) |
| Reclassification                of warrant liability to equity                                                                    |   |                        | -          |       |   | -       |   |          | 71,675    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 71,675 |   |
| Beneficial                conversion feature of convertible debt                                                                  |   |                        | -          |       |   | -       |   |          | 99,800    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 99,800 |   |
| Cumulative                foreign currency translation adjustment                                                                 |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | (28,213 | ) |   | - |   |   | - |   |   | (28,213 | ) |
| Net                loss for the year                                                                                              |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | (646,771 | ) |   | (646,771 | ) |
| Balance                - December 31, 2002                                                                                        |   |                        | 16,333,792 |       |   | 16,334  |   |          | 1,164,861 |       |   | -             |   |                         | -      |                                        |   | (115,000            | )      |   | - |   |   | (114,175 | ) |   | (1,736,235 | ) |   | (784,215 | ) |

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**STATEMENT      OF STOCKHOLDERS’ DEFICIT**

|                                                                                                   |   |                        |       | Additional |   | Common  |   | Stock         |      |       |   | Other         |   |                         |   | DeficitAccumulatedDuring                the |   |                |   |
|--------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|------------|--------|---------|--------|---------------|-----------|------------|--------|---------------|--------|------------------------------|--------|---------------------------------------------|--------|---------------------|--------|
|                                                                                                   |   | Common                Stock |       | Paid-in    |   | Stock   |   | Subscriptions |      | Deferred   |   | Comprehensive |   | Accumulated                  |   | Development                                 |   | Stockholders’ |   |
|                                                                                                   |   | Shares                      |       | Amount     |   | Capital |   | Subscribed    |      | Receivable |   | Compensation  |   | Income                (Loss) |   | Deficit                                     |   | Stage               |   | Deficit |   |
|                                                                                                   |   | #                           |       |  $    |   | $       |   |  $       |      | $          |   |  $       |   | $                            |   |  $                                     |   | $                   |   | $ |   |
|                                                                                                   |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |   |                                        |   |                |   |   |   |
| Carryforward                Balance - December 31, 2002                                                |   |                        | 16,333,792 |       |   | 16,334  |   |          | 1,164,861 |       |   | -             |   |                         | -      |                                        |   | (115,000            | )      |   | - |   |   | (114,175 | ) |   | (1,736,235 | ) |   | (784,215 | ) |
| Issuance                of common stock to settle debt                                                 |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |   |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                2003 - $0.13 per share                                                            |   |                        | 1,225,000  |       |   | 1,225   |   |          | 154,775   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 156,000 |   |
| April                2003 - $0.17 per share                                                            |   |                        | 300,000    |       |   | 300     |   |          | 50,700    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 51,000 |   |
| July                2003 - $0.19 per share                                                             |   |                        | 353,000    |       |   | 353     |   |          | 66,718    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 67,071 |   |
| October                2003 - $0.24 per share                                                          |   |                        | 300,000    |       |   | 300     |   |          | 71,581    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 71,881 |   |
| Issuance                of common stock for cash                                                       |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |   |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January                2003 - $0.07 per share                                                          |   |                        | 900,543    |       |   | 900     |   |          | 62,137    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 63,037 |   |
| November                2003 - $0.21 per share                                                         |   |                        | 288,095    |       |   | 288     |   |          | 60,195    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 60,483 |   |
| Issuance                of common stock pursuant to exercise of stock options                          |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |   |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                2003 - $0.07 per share                                                            |   |                        | 1,560,000  |       |   | 1,560   |   |          | 107,640   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 109,200 |   |
| May                2003 - $0.16 per share                                                              |   |                        | 1,000,000  |       |   | 1,000   |   |          | 159,000   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 160,000 |   |
| June                2003 - $0.17 per share                                                             |   |                        | 305,822    |       |   | 306     |   |          | 51,594    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 51,900 |   |
| November                2003 - $0.001 per share                                                        |   |                        | 450,000    |       |   | 450     |   |          | -         |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 450 |   |
| March                2003 - $0.07 per share                                                            |   |                        | 135,000    |       |   | 135     |   |          | 9,315     |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 9,450 |   |
| June                2003 - $0.17 per share                                                             |   |                        | 294,118    |       |   | 294     |   |          | 49,706    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 50,000 |   |
| October                2003 - $0.18 per share                                                          |   |                        | 277,777    |       |   | 278     |   |          | 49,722    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 50,000 |   |
| November                2003 - $0.24 per share                                                         |   |                        | 104,167    |       |   | 104     |   |          | 24,896    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 25,000 |   |
| Issuance                of common stock for services                                                   |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |   |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                2003 - $0.40 per share                                                            |   |                        | 156,250    |       |   | 156     |   |          | 62,344    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 62,500 |   |
| October                2003 - $0.16 per share                                                          |   |                        | 1,000,000  |       |   | 1,000   |   |          | 159,000   |       |   | -             |   |                         | -      |                                        |   | (160,000            | )      |   | - |   |   | - |   |   | - |   |   | - |   |
| Fair                value of stock options granted                                                     |   |                        | -          |       |   | -       |   |          | 841,349   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 841,349 |   |
| Amortization                of deferred compensation                                                   |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -      |                                        |   | 141,667             |   |   | - |   |   | - |   |   | - |   |   | 141,667 |   |
| Fair                value of warrants issued                                                           |   |                        | -          |       |   | -       |   |          | 274,601   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 274,601 |   |
| Fair                value of beneficial conversion feature related to convertible                notes |   |                        | -          |       |   | -       |   |          | 255,142   |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 255,142 |   |
| Fair                value of warrants issued for loan provided                                         |   |                        | -          |       |   | -       |   |          | 99,778    |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 99,778 |   |
| Reacquisition                value of beneficial conversion feature                                    |   |                        | -          |       |   | -       |   |          | (33,584   | )          |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | (33,584 | ) |
| Unrealized                gain on investment securities                                                |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | 48,000 |   |   | - |   |   | - |   |   | 48,000 |   |
| Net                loss for the year                                                                   |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -      |                                        |   | -                   |   |   | - |   |   | - |   |   | (2,618,955 | ) |   | (2,618,955 | ) |
| Balance                - December 31, 2003                                                             |   |                        | 24,983,564 |       |   | 24,983  |   |          | 3,741,470 |       |   | -             |   |                         | -      |                                        |   | (133,333            | )      |   | 48,000 |   |   | (114,175 | ) |   | (4,355,190 | ) |   | (788,245 | ) |

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**STATEMENT      OF STOCKHOLDERS’ DEFICIT**

|                                                                                                      |   |                        |       | Additional |   | Common  |   | Stock         |      |       |   | Other         |   |                         |     | DeficitAccumulatedDuring                the |   |                |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|------------|--------|---------|--------|---------------|-----------|------------|--------|---------------|--------|------------------------------|----------|---------------------------------------------|--------|---------------------|--------|
|                                                                                                      |   | Common                Stock |       | Paid-in    |   | Stock   |   | Subscriptions |      | Deferred   |   | Comprehensive |   | Accumulated                  |     | Development                                 |   | Stockholders’ |   |
|                                                                                                      |   | Shares                      |       | Amount     |   | Capital |   | Subscribed    |      | Receivable |   | Compensation  |   | Income                (Loss) |     | Deficit                                     |   | Stage               |   | Deficit |   |
|                                                                                                      |   | #                           |       |  $    |   |  $ |   |  $       |      |  $    |   |  $       |   |  $                      |     |  $                                     |   |  $             |   |  $ |   |
| Carrryforward                Balance - December 31, 2003                                                  |   |                        | 24,983,564 |       |   | 24,983  |   |          | 3,741,470 |       |   | -             |   |                         | -        |                                        |   | (133,333            | )      |   | 48,000 |   |   | (114,175 | ) |   | (4,355,190 | ) |   | (788,245 | ) |
| Issuance                of common stock for cash                                                          |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January                2004- $0.19 per share                                                              |   |                        | 100,000    |       |   | 100     |   |          | 18,900    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 19,000 |   |
| March                2004 - $0.15 per share                                                               |   |                        | 633,334    |       |   | 633     |   |          | 94,367    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 95,000 |   |
| March                2004 - $0.19 per share                                                               |   |                        | 315,790    |       |   | 316     |   |          | 59,684    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 60,000 |   |
| July                2004 - $0.50 per share                                                                |   |                        | 500,000    |       |   | 500     |   |          | 249,500   |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 250,000 |   |
| July                2004 - $0.60 per share                                                                |   |                        | 33,333     |       |   | 33      |   |          | 19,967    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 20,000 |   |
| Dec                2004 - $0.47 per share                                                                 |   |                        | 320,600    |       |   | 321     |   |          | 150,361   |       |   | -             |   |                         | (150,682 | )                                           |   | -                   |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Issuance                of common stock for services                                                      |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                2004 - $0.22 per share                                                            |   |                        | 142,928    |       |   | 143     |   |          | 31,301    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 31,444 |   |
| March                2004 - $0.23 per share                                                               |   |                        | 25,000     |       |   | 25      |   |          | 5,725     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 5,750 |   |
| July                2004 - $0.91 per share                                                                |   |                        | 200,000    |       |   | 200     |   |          | 181,800   |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 182,000 |   |
| October                2004 - $0.72 per share                                                             |   |                        | 60,000     |       |   | 60      |   |          | 43,140    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 43,200 |   |
| December                2004 - $0.63 per share                                                            |   |                        | 79,616     |       |   | 80      |   |          | 50,078    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 50,158 |   |
| Issuance                of common stock pursuant to the exercise of stock options for                cash |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                2004 - $0.14 per share                                                               |   |                        | 40,000     |       |   | 40      |   |          | 5,560     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 5,600 |   |
| March                2004 - $0.22 per share                                                               |   |                        | 200,000    |       |   | 200     |   |          | 43,800    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 44,000 |   |
| April                2004 - $0.14 per share                                                               |   |                        | 65,000     |       |   | 65      |   |          | 9,035     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 9,100 |   |
| April                2004 - $0.001 per share                                                              |   |                        | 150,000    |       |   | 150     |   |          | -         |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 150 |   |
| July                2004 - $0.14 per share                                                                |   |                        | 125,000    |       |   | 125     |   |          | 17,375    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 17,500 |   |
| July                2004 - $0.07 per share                                                                |   |                        | 25,000     |       |   | 25      |   |          | 1,725     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 1,725 |   |
| July                2004 - $0.001 per share                                                               |   |                        | 200,000    |       |   | 200     |   |          |      |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 200 |   |
| September                2004 - $0.07 per share                                                           |   |                        | 20,000     |       |   | 20      |   |          | 1,380     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 1,400 |   |
| October                2004 - $0.73 per share                                                             |   |                        | 128,000    |       |   | 128     |   |          | 93,312    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 93,440 |   |
| Fair                value of stock options granted                                                        |   |                        | -          |       |   | -       |   |          | 419,204   |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 419,204 |   |
| Issuance                of common stock pursuant to the exercise of warrants for                cash      |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| June                2004 - $0.07 per share                                                                |   |                        | 628,571    |       |   | 629     |   |          | 43,371    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 44,000 |   |
| June                2004 - $0.19 per share                                                                |   |                        | 105,263    |       |   | 105     |   |          | 19,895    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 20,000 |   |
| July                2004 - $0.05 per share                                                                |   |                        | 30,000     |       |   | 30      |   |          | 1,470     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 1,500 |   |
| July                2004 - $0.30 per share                                                                |   |                        | 153,945    |       |   | 154     |   |          | 46,030    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 46,184 |   |
| August                2004 - $0.21 per share                                                              |   |                        | 338,095    |       |   | 338     |   |          | 70,662    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 71,000 |   |
| September                2004 - $0.07 per share                                                           |   |                        | 271,972    |       |   | 272     |   |          | 18,766    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 19,038 |   |
| September                2004 - $0.001 per share                                                          |   |                        | 200,000    |       |   | 200     |   |          | -         |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 200 |   |

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**STATEMENT      OF STOCKHOLDERS’ DEFICIT**

|                                                                                                                  |   |                        |       | Additional |   | Common  |   | Stock         |      |       |   | Other         |   |                         |     | DeficitAccumulatedDuring                the |   |                |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|------------|--------|---------|--------|---------------|-----------|------------|--------|---------------|--------|------------------------------|----------|---------------------------------------------|--------|---------------------|--------|
|                                                                                                                  |   | Common                Stock |       | Paid-in    |   | Stock   |   | Subscriptions |      | Deferred   |   | Comprehensive |   | Accumulated                  |     | Development                                 |   | Stockholders’ |   |
|                                                                                                                  |   | Shares                      |       | Amount     |   | Capital |   | Subscribed    |      | Receivable |   | Compensation  |   | Income                (Loss) |     | Deficit                                     |   | Stage               |   | Deficit |   |
|                                                                                                                  |   | #                           |       |  $    |   |  $ |   |  $       |      |  $    |   |  $       |   |  $                      |     |  $                                     |   |  $             |   |  $ |   |
| Issuance                of common stock pursuant to the exercise of warrants for                cash                  |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |
| December                2004 - $0.08 per share                                                                        |   |                        | 145,683    |       |   | 146     |   |          | 11,509    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 11,655 |   |
| December                2004 - $0.05 per share                                                                        |   |                        | 337,313    |       |   | 337     |   |          | 16,528    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 16,865 |   |
| December                2004 - $0.30 per share                                                                        |   |                        | 206,300    |       |   | 206     |   |          | 61,684    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 61,890 |   |
| Amortization                of deferred compensation                                                                  |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -        |                                        |   | 106,499             |   |   | - |   |   | - |   |   | - |   |   | 106,499 |   |
| Unrealized                gain on investment securities                                                               |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | 174,000 |   |   | - |   |   | - |   |   | 174,000 |   |
| Net                loss for the year                                                                                  |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | (1,406,455 | ) |   | (1,406,455 | ) |
| Balance                - December 31, 2004                                                                            |   |                        | 30,764,307 |       |   | 30,764  |   |          | 5,527,599 |       |   | -             |   |                         | (150,682 | )                                           |   | (26,834             | )      |   | 222,000 |   |   | (114,175 | ) |   | (5,761,645 | ) |   | (272,973 | ) |
| Issuance                of common stock for services                                                                  |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                2005 - $0.71 per share                                                                        |   |                        | 15,492     |       |   | 15      |   |          | 10,985    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 11,000 |   |
| March                2005 - $0.90 per share                                                                           |   |                        | 30,000     |       |   | 30      |   |          | 26,970    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 27,000 |   |
| May                2005 - $1.26 per share                                                                             |   |                        | 15,000     |       |   | 15      |   |          | 18,885    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 18,900 |   |
| July                2005 - $1.00 per share                                                                            |   |                        | 70,000     |       |   | 70      |   |          | 72,930    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 73,000 |   |
| December                2005 - $0.89 per share                                                                        |   |                        | 25,000     |       |   | 25      |   |          | 22,225    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 22,250 |   |
| Issuance                of common stock for Cash                                                                      |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| May                2005 - $1.00 per share                                                                             |   |                        | 25,000     |       |   | 25      |   |          | 24,975    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 25,000 |   |
| June                2005 - $1.00 per share                                                                            |   |                        | 135,000    |       |   | 135     |   |          | 134,865   |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 135,000 |   |
| June                2005 - $1.10 per share                                                                            |   |                        | 4,545      |       |   | 5       |   |          | 4,995     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 5,000 |   |
| Issuance                of common stock pursuant to the exercise of stock options for notes                receivable |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                2005 - $0.60 per share                                                                        |   |                        | 209,000    |       |   | 209     |   |          | 125,191   |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 125,400 |   |
| April                2005 - $0.60 per share                                                                           |   |                        | 5,000      |       |   | 5       |   |          | 7,495     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 7,500 |   |
| Fair                value of stock options granted                                                                    |   |                        | -          |       |   | -       |   |          | 384,500   |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 384,500 |   |
| Issuance                of common stock pursuant to the exercise of stock options for                cash             |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March                2005 - $0.001 per share                                                                          |   |                        | 1,750,000  |       |   | 1,750   |   |          | -         |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 1,750 |   |
| March                2005 - $0.07 per share                                                                           |   |                        | 25,000     |       |   | 25      |   |          | 1,725     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 1,750 |   |
| December                2005 - $0.001 per share (cancellation)                                                        |   |                        | (1,750,000 | )          |   | (1,750  | )      |          | -         |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | (1,750 | ) |
| Issuance                of common stock pursuant to the exercise of warrants for                cash                  |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |     |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January                2005 - $0.30 per share                                                                         |   |                        | 26,305     |       |   | 26      |   |          | 7,865     |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 7,891 |   |
| January                2005 - $0.38 per share                                                                         |   |                        | 65,789     |       |   | 66      |   |          | 24,934    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 25,000 |   |
| March                2005 - $0.21 per share                                                                           |   |                        | 50,000     |       |   | 50      |   |          | 10,450    |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 10,500 |   |
| March                2005 - $0.001 per share                                                                          |   |                        | 450,000    |       |   | 450     |   |          | -         |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 450 |   |
| June                2005 - $0.21 per share                                                                            |   |                        | 682,714    |       |   | 683     |   |          | 142,687   |       |   | -             |   |                         | -        |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 143,370 |   |

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**(DBA      BIOCUREX, INC.)**

**STATEMENT      OF STOCKHOLDERS’ DEFICIT**

|                                                                                                     |   |                        |       | Additional |   | Common  |   | Stock         |      |       |   | Other         |   |                         |    | DeficitAccumulatedDuring                the |   |                |   |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|------------|--------|---------|--------|---------------|-----------|------------|--------|---------------|--------|------------------------------|---------|---------------------------------------------|--------|---------------------|--------|
|                                                                                                     |   | Common                Stock |       | Paid-in    |   | Stock   |   | Subscriptions |      | Deferred   |   | Comprehensive |   | Accumulated                  |    | Development                                 |   | Stockholders’ |   |
|                                                                                                     |   | Shares                      |       | Amount     |   | Capital |   | Subscribed    |      | Receivable |   | Compensation  |   | Income                (Loss) |    | Deficit                                     |   | Stage               |   | Deficit |   |
|                                                                                                     |   | #                           |       |  $    |   |  $ |   |  $       |      |  $    |   |  $       |   |  $                      |    |  $                                     |   |  $             |   |  $ |   |
| Issuance                of common stock pursuant to the exercise of warrants for                cash     |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |    |                                        |   |                |   |   |   |
| June                2005 - $0.10 per share                                                               |   |                        | 600,000    |       |   | 600     |   |          | 59,400    |       |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 60,000 |   |
| August                2005 - $0.75 per share                                                             |   |                        | 77,266     |       |   | 77      |   |          | 57,873    |       |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 57,950 |   |
| December                2005 - $0.001 per share (cancellation)                                           |   |                        | (450,000   | )          |   | (450    | )      |          | -         |       |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | (450 | ) |
| Issuance                of common stock pursuant to the cashless exercise of                warrants     |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |    |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                2005 (139,474 warrants)                                                          |   |                        | 70,643     |       |   | 71      |   |          | (71       | )          |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | - |   |
| March                2005 (272,903 warrants)                                                             |   |                        | 213,576    |       |   | 213     |   |          | (213      | )          |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Issuance                of common stock pursuant to the conversion of notes                payable       |   |                        |       |       |   |    |   |          |      |       |   |          |   |                         |    |                                        |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| February                2005                                                                             |   |                        | 955,800    |       |   | 956     |   |          | 142,414   |       |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 143,370 |   |
| February                2005, fair value of warrants issued on conversion of note                payable |   |                        | -          |       |   | -       |   |          | 67,829    |       |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 67,829 |   |
| December                2005, fair value of warrants issued for services                                 |   |                        | -          |       |   | -       |   |          | 222,587   |       |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 222,587 |   |
| Proceeds                from stock subscriptions receivable                                              |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | 150,682 |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 150,682 |   |
| Proceeds                from common shares subscribed pursuant to warrants                exercised      |   |                        | -          |       |   | -       |   |          | -         |       |   | 85,962        |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | - |   |   | 85,962 |   |
| Amortization                of deferred compensation                                                     |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -       |                                        |   | 26,834              |   |   | - |   |   | - |   |   | - |   |   | 26,834 |   |
| Unrealized                loss on investment securities                                                  |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -       |                                        |   | -                   |   |   | (18,000 | ) |   | - |   |   | - |   |   | (18,000 | ) |
| Net                loss for the year                                                                     |   |                        | -          |       |   | -       |   |          | -         |       |   | -             |   |                         | -       |                                        |   | -                   |   |   | - |   |   | - |   |   | (1,755,930 | ) |   | (1,755,930 | ) |
| Balance                - December 31, 2005                                                               |   |                        | 34,065,437 |       |   | 34,065  |   |          | 7,099,095 |       |   | 85,962        |   |                         | -       |                                        |   | -                   |   |   | 204,000 |   |   | (114,175 | ) |   | (7,517,575 | ) |   | (208,628 | ) |

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 1. | NATURE                OF OPERATIONS AND CONTINUANCE OF                BUSINESS |
|----|--------------------------------------------------------------------------------|

| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES |
|----|-----------------------------------------------------------|

*Use      of Estimates*

*Cash      and Cash Equivalents*

*Foreign      Currency Translation*

*Foreign      Currency Translation*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

*Revenue      Recognition*

*Revenue      Recognition in Financial Statements*

*Long-lived      Assets*

*Accounting      for the Impairment or Disposal of Long-Lived Assets*

*Research      and Development Costs*

*Financial      Instruments/Concentrations*

*Income      Taxes*

*Accounting      for Income Taxes*

*The          accompanying notes are an integral part of these financial          statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

*Investment      Securities*

*Reclassifications      *

*Comprehensive      Income*

*Basic      and Diluted Net Loss per Share*

*Stock-based      Compensation*

| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

|                                           |   | 2005   |   | 2004   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|
| Expected                dividend yield         |   |   | 0      | %      |   | 0 | % |
| Risk-free                interest rate         |   |   | 3.27   | %      |   | 2.23 | % |
| Expected                volatility             |   |   | 130    | %      |   | 183 | % |
| Expected                option life (in years) |   |   | 1.3    |   |   | 3.0 |   |

|                                                                                                           |   | Years                EndedDecember                31, |       |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|------------|
|                                                                                                           |   | 2005$                                                 |       | 2004$ |   |
| Net                loss -                as reported                                                           |   |                                                  | (1,755,930 | ) |   | (1,406,455 | ) |
| Add:                Stock-based employee compensation included in net loss - as                reported        |   |                                                  | 384,500    |   |   | 739,929 |   |
| Deduct:                Stock-based employee compensation determined under the fair value                method |   |                                                  | (410,218   | ) |   | (860,347 | ) |
| Pro                forma net loss                                                                         |   |                                                  | (1,781,648 | ) |   | (1,526,873 | ) |
| Basic                and diluted loss per share:                                                               |   |                                                  |       |   |   |   |   |
| As                reported                                                                                     |   |                                                  | (0.05      | ) |   | (0.05 | ) |
| Pro                forma                                                                                       |   |                                                  | (0.05      | ) |   | (0.06 | ) |

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING        OAKS INTERNATIONAL, INC.**

**NOTES        TO FINANCIAL STATEMENTS**

**YEARS        ENDED DECEMBER 31, 2005 AND 2004**

| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

*Recent      Accounting Pronouncements*

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 2. | SUMMARY                OF SIGNIFICANT ACCOUNTING POLICIES                (continued) |
|----|--------------------------------------------------------------------------------------|

*Recent      Accounting Pronouncements *

| 3. | INVESTMENT                SECURITIES |
|----|--------------------------------------|

| 4. | NOTES                RECEIVABLE |
|----|---------------------------------|

|   | a) | In                August and September 2005, the Company received $67,103 and $5,527,                respectively, from various employees for the repayment of their note                receivables. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | In                April 2005, a total of 5,000 common shares were issued pursuant to                stock                options exercised in exchange for a $3,000 non-interest bearing and                unsecured note receivable, which is repayable in full within seven                days’                notice of demand. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | In                April 2005, the Company received $12,000 from an employee for the                repayment of a note receivable. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | In                February 2005, a total of 209,000 common shares were issued pursuant                to                stock options exercised in exchange for $125,400 in non-interest                bearing                and unsecured notes receivable, which are repayable in full within                seven                days’ notice of demand. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | In                October 2004, a total of $128,000 common shares were issued pursuant                to                stock options exercised in exchange for a $93,440 non-interest bearing                and                unsecured note receivable, which is repayable in full within seven                days’                notice of demand. In February 2005, the Company received the $93,440                note                receivable in full. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | PATENTS |
|----|---------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 5. | PATENTS                (continued) |
|----|------------------------------------|

|                                          |   | December                31, |    |
|-----------------------------------------------|--------|-----------------------------|---------|
|                                          |   | 2005$                       |    | 2004$ |   |
| Patents                                       |   |                        | 362,882 |   |   | 290,879 |   |
| Less:                accumulated amortization |   |                        | (86,080 | ) |   | (57,039 | ) |
| Net                carrying value             |   |                        | 276,802 |   |   | 233,840 |   |

|       |   | $      |    |
|------------|--------|--------|---------|
| 2006       |   |   | 20,245  |   |
| 2007       |   |   | 20,245  |   |
| 2008       |   |   | 20,245  |   |
| 2009       |   |   | 20,245  |   |
| 2010       |   |   | 20,245  |   |
| Thereafter |   |   | 175,577 |   |
|       |   |   | 276,802 |   |

| 6. | RELATED PARTY                TRANSACTIONS/BALANCES |
|----|----------------------------------------------------|

|                                                                                |   | December                  31,2005$ |    | December                  31,2004$ |   |
|-------------------------------------------------------------------------------------|--------|------------------------------------|---------|------------------------------------|--------|
| a)                   Due to an officer - interest                    |   |                               | 74,009  |                               |   | 74,009 |   |
| b)                   Due to Pacific BioSciences Research Centre Inc. |   |                               | 337,610 |                               |   | 384,984 |   |
| c)                   Due to officers                                 |   |                               | 9,200   |                               |   | 14,433 |   |
|                                                                                |   |                               | 420,819 |                               |   | 473,426 |   |

|   | a) | The                Company received advances from an officer of the Company that were                unsecured, bore interest at 11% and are due on demand. During fiscal                2004,                the Company repaid the advances totalling $143,089. Accrued interest                of                $74,009 accrued to the repayment date remains outstanding as of December                31, 2005. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | The                Company’s research and development is performed by Pacific BioSciences                Research Centre (“Pacific”). Pacific is 100% owned by the President of the                Company. During the years ended December 31, 2005 and 2004, Pacific                performed research and development for the Company valued at $445,260                and                $470,400, respectively. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | The                amounts owing to officers are unsecured, non-interest bearing and                due on                demand. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 7. | CONVERTIBLE                NOTES PAYABLE |
|----|------------------------------------------|

| 8. | COMMON                    STOCK |
|----|---------------------------------|

|   | a) | In                December 2005, the Company received subscriptions of $19,712 for                394,244                shares of common stock at $0.05 per share pursuant to the exercise                of                warrants. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | In                December 2005, the Company received subscriptions of $50,000 for                500,000                shares of common stock at $0.10 per share pursuant to the exercise                of                warrants. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | In                December 2005, the Company received subscriptions of $16,250 for                325,000                shares of common stock at $0.05 per share pursuant to the exercise                of                warrants. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | In                December 2005, the Company issued 25,000 shares of common stock for                consulting services at a fair value of                $22,250. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | In                December 2005, two directors cancelled 1,750,000 options to purchase                the                Company’s common stock for $1,750. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | In                December 2005, a director cancelled 450,000 warrants to purchase                the                Company’s common stock for $450. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | In                August 2005, the Company issued 77,266 shares of common stock at                $0.75 per                share for proceeds of $57,950. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 8. | COMMON                    STOCK (continued) |
|----|---------------------------------------------|

** **

|   | h) | In                July 2005, the Company issued 20,000 shares of common stock for legal                services received at a fair value of $23,000. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | In                July 2005, the Company entered into a consulting and marketing service                agreement for a period of ninety days. The Company issued 50,000                shares of                common stock at a fair value of                $50,000. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j) | In                June 2005, the Company issued 600,000 shares of common stock at $0.10                per                share pursuant to the exercise of warrants for proceeds of                $60,000. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k) | In                June 2005, the Company issued 4,545 shares of common stock for                consulting                services at a fair value of $5,000. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | l) | In                June 2005, the Company issued 135,000 shares of common stock at $1.00                per                share for proceeds of $135,000. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | m) | In                May 2005, the Company issued 682,714 shares of common stock at $0.21                per                share pursuant to the exercise of warrants for proceeds of                $143,370. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n) | In                May 2005, the Company issued 25,000 shares of common stock at $1.00                per                share for proceeds of $25,000. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o) | In                May 2005, the Company issued 15,000 shares of common stock at a fair                value                at $18,900 to an employee for a performance                bonus. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | p) | In                April 2005, an employee exercised 5,000 options to purchase the Company’s                common stock for $3,000. The Company received a note receivable for                $3,000. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | q) | In                March 2005, the Company issued 213,576 shares of common stock pursuant                to                the exercise of 272,903 warrants by a note holder. This exercise                was based                on the cashless exercise provision of the stock purchase                warrant. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | r) | In                March 2005, two directors exercised 1,750,000 options to purchase                the                Company’s common stock for $1,750. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | s) | In                March 2005, a director exercised 450,000 warrants to purchase the                Company’s common stock for $450. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | t) | In                March 2005, the Company issued 25,000 shares of common stock at $0.07                per                share pursuant to the exercise of stock options for proceeds of                $1,750. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | u) | In                March 2005, the Company issued 50,000 shares of common stock at $0.21                per                share pursuant to the exercise of warrants for proceeds of                $10,500. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | v) | In                March 2005, the Company issued 30,000 shares of common stock at a                fair                value of $27,000 for consulting services                provided. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | w) | In                February 2005, the Company issued 209,000 shares of common stock                to seven                employees for the exercise of their options at their option price                of                $0.60. The Company received note receivables totaling                $125,400. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | x) | In                February 2005, the Company issued 7,042 shares of common stock at                a fair                value of $5,000 for consulting services rendered by                Pacific. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | y) | In                February 2005, the Company issued 8,450 shares of common stock                at                a fair value of $6,000 for consulting services                received. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 8. | COMMON                    STOCK (continued) |
|----|---------------------------------------------|

** **

|   | z) | In                  February 2005 the Company issued 70,643 shares of common stock                  pursuant to                  the exercise of 139,474 warrants by a note holder. This exercise                  was based                  on the cashless exercise provision of the stock purchase warrant.                  A note                  payable to this same note holder in the amount of $143,370 was                  converted                  into 955,800 units at $0.15 per unit. Each unit consisted of one                  common                  share and one common share purchase warrant entitling the holder                  to                  acquire an additional common share at an exercise price of $0.17                  per share                  expiring March 9, 2010. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | aa) | In                  January 2005, the Company issued 26,305 shares of common stock                  at $0.30                  per share and 65,789 common shares at $0.38 per share pursuant                  to the                  exercise of warrants for total proceeds of                  $32,891. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | In                December 2004, the Company issued 79,616 shares of common stock for                $16,000 of consulting services. The stock price that was agreed to                in the                contract was below the stock price at issuance of the shares and                the                Company recorded $34,158 loss on issuance of these shares.  |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | In                December 2004, the Company sold 320,600 units at $0.47 per unit for                proceeds of $150,682. Each unit consisted of one common share and                one                common share purchase warrant entitling a holder to acquire an additional                common share at an exercise price of $0.64 per share, expiring on                December                19, 2006. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | In                October 2004, the Company issued 60,000 shares of common stock for                $25,134                of services provided and for $10,476 of services to be provided,                which was                below the market price of the common shares on the settlement date.                The                Company recorded $10,476 of services to be provided as deferred                compensation and recognized a loss on issuance of shares of                $7,590. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | In                July 2004, the Company sold 500,000 units at $0.50 per unit for proceeds                of $250,000. Each unit consisted of one common share and one common                share                purchase warrant entitling a holder to acquire an additional common                share                at an exercise price of $1.01 per share, expiring on July 15, 2006. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | In                July 2004, the Company sold 33,333 units at $0.60 per unit for proceeds                of                $20,000. Each unit consisted of one common share and one common share                purchase warrant entitling a holder to acquire an additional common                share                at an exercise price of $1.04, expiring on July 31, 2006. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | In                July 2004, the Company issued 200,000 shares of common stock at a                fair                value of $169,642 for services provided and for $12,358 of services                (recorded as deferred compensation) to be                provided. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | In                March 2004, the Company sold 533,334 units at $0.15 per unit for                proceeds                of $80,000. Each unit consisted of one common share and one common                share                purchase warrant entitling a holder to acquire an additional common                share                at an exercise price of $0.15 as to 266,667 warrants and at $0.17                as to                266,667 warrants all expiring on March 31, 2007. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | In                March 2004, the Company sold 100,000 shares of common stock at $0.15                per                share for cash proceeds of $15,000. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | In                March 2004, the Company sold 315,790 units at $0.19 per unit for                proceeds                of $60,000. Each unit consisted of one common share and one common                share                purchase warrant entitling a holder to acquire an additional common                share                at an exercise price of $0.19, expiring on March 31, 2009. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | j) | In                March 2004, the Company issued 25,000 shares of the Company’s common stock                to an employee at a fair value of                $5,750. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | k) | In                February 2004, the Company issued 142,928 shares of common stock                in                settlement of accounts payable at a fair value of                $31,444. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 8. | COMMON                    STOCK (continued) |
|----|---------------------------------------------|

** **

|   | l) | In                January 2004, the Company sold 100,000 shares of common stock at                $0.19 per                share for cash proceeds of $19,000. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | STOCK                    WARRANTS |
|----|-----------------------------------|

|                                      |   | Number |       | WeightedAverageExercisePrice$ |   |
|-------------------------------------------|--------|--------|------------|-------------------------------|--------|
|                                      |   |   |       |                          |   |
| Balance,                December 31, 2003 |   |   | 7,584,561  |                          |   | 0.15 |   |
| Issued                                    |   |   | 2,292,757  |                          |   | 0.36 |   |
| Reinstated                                |   |   | 52,000     |                          |   | 0.07 |   |
| Exercised                                 |   |   | (2,417,140 | )                             |   | 0.12 |   |
| Expired                                   |   |   | (100,000   | )                             |   | 0.50 |   |
|                                      |   |   |       |                          |   |   |   |
| Balance,                December 31, 2004 |   |   | 7,412,178  |                          |   | 0.22 |   |
| Issued                                    |   |   | 1,564,466  |                          |   | 0.67 |   |
| Exercised                                 |   |   | (3,056,429 | )                             |   | 0.15 |   |
| Expired                                   |   |   | (200,000   | )                             |   | 1.15 |   |
|                                      |   |   |       |                          |   |   |   |
| Balance,                December 31, 2005 |   |   | 5,720,215  |                          |   | 0.36 |   |

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 9. | STOCK                    WARRANTS (continued) |
|----|-----------------------------------------------|

| Number                ofWarrants |                    Exercise Price                   $ |   | Expiry                Date |   |
|----------------------------------|-------------------------------------------------------------------------------------|--------|----------------------------|--------|
|                             |                                                                                |   |                       |   |   |
| 25,000                           |                                                                                |   | 2.00                       |   |         | May                12, 2006 |   |
| 25,000                           |                                                                                |   | 3.25                       |   |   | May                17, 2006 |   |
| 135,000                          |                                                                                |   | 2.00                       |   |   | May                27, 2006 |   |
| 110,000                          |                                                                                |   | 3.25                       |   |   | June                1, 2006 |   |
| 25,000                           |                                                                                |   | 3.25                       |   |   | June                2, 2006 |   |
| 500,000                          |                                                                                |   | 1.01                       |   |   | July                15, 2006 |   |
| 33,333                           |                                                                                |   | 1.04                       |   |   | July                31, 2006 |   |
| 160,300                          |                                                                                |   | 0.70                       |   |   | December                19, 2006 |   |
| 252,278                          |                                                                                |   | 0.05                       |   |   | December                31, 2006 |   |
| 266,667                          |                                                                                |   | 0.17                       |   |   | March                31, 2007 |   |
| 266,667                          |                                                                                |   | 0.15                       |   |   | March                31, 2007 |   |
| 38,666                           |                                                                                |   | 1.10                       |   |   | June                30, 2007 |   |
| 450,000                          |                                                                                |   | 0.001                      |   |   | September                27, 2007 |   |
| 1,275,000                        |                                                                                |   | 0.08                       |   |   | January                15, 2008 |   |
| 250,000                          |                                                                                |   | 0.01                       |   |   | September                8, 2008 |   |
| 541,666                          |                                                                                |   | 0.12                       |   |   | October                31, 2008 |   |
| 199,311                          |                                                                                |   | 0.17                       |   |   | November                11, 2008 |   |
| 210,527                          |                                                                                |   | 0.19                       |   |   | March                31, 2009 |   |
| 955,800                          |                                                                                |   | 0.17                       |   |   | March                9, 2010 |   |
|                             |                                                                                |   |                       |   |   |   |   |
| 5,720,215                        |                                                                                |   |                       |   |   |   |   |

| 10. | STOCK                OPTIONS |
|-----|------------------------------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 10. | STOCK                OPTIONS (continued) |
|-----|------------------------------------------|

|                                            |   | Year                EndedDecember                31, 2005 |      | Year                EndedDecember                31, 2004     |   |
|-------------------------------------------------|--------|-----------------------------------------------------------|-----------|---------------------------------------------------------------|--------|
|                                            |   | Number                ofShares                            |      | Weighted                AverageExercise                Price$ |   | Number                ofShares |   | Weighted                AverageExercise                Price$ |   |
|                                            |   |                                                      |      |                                                          |   |   |   |   |   |
| Outstanding                at beginning of year |   |                                                      | 2,137,000 |                                                          |   | 0.07 |   |   | 1,715,000 |   |   | 0.03 |   |
| Granted                                         |   |                                                      | 672,000   |                                                          |   | 0.26 |   |   | 2,275,000 |   |   | 0.14 |   |
| Exercised                                       |   |                                                      | (234,000  | )                                                             |   | 0.54 |   |   | (953,000 | ) |   | 0.18 |   |
| Forfeited                                       |   |                                                      | -         |                                                          |   | - |   |   | (250,000 | ) |   | 0.21 |   |
| Options                exchanged for warrants   |   |                                                      | -         |                                                          |   | - |   |   | (650,000 | ) |   | 0.001 |   |
| Outstanding                at end of year       |   |                                                      | 2,575,000 |                                                          |   | 0.06 |   |   | 2,137,000 |   |   | 0.07 |   |

|                            |   | Outstanding                    |      | Exercisable                                                                                                          |   |
|---------------------------------|--------|--------------------------------|-----------|----------------------------------------------------------------------------------------------------------------------|--------|
| Exercise                Prices$ |   | Number                ofShares |      | Weighted                Average                Remaining                Contractual                Life (Years) |   | Weighted                Average                Exercise                Price$ |   | Number                of Shares |   | Weighted                Average                Exercise                Price$ |   |
| 0.001                           |   |                           | 2,250,000 |                                                                                                                 |   | 2.88 |   |   | 0.001 |   |   | 2,250,000 |   |   | 0.001 |   |
| 0.07                            |   |                           | 100,000   |                                                                                                                 |   | 0.84 |   |   | 0.07 |   |   | 100,000 |   |   | 0.07 |   |
| 0.14                            |   |                           | 35,000    |                                                                                                                 |   | 1.00 |   |   | 0.14 |   |   | 35,000 |   |   | 0.14 |   |
| 0.60                            |   |                           | 18,000    |                                                                                                                 |   | 1.78 |   |   | 0.60 |   |   | 18,000 |   |   | 0.60 |   |
| 0.75                            |   |                           | 172,000   |                                                                                                                 |   | 1.92 |   |   | 0.75 |   |   | - |   |   | - |   |
|                            |   |                           | 2,575,000 |                                                                                                                 |   | 2.70 |   |   | 0.06 |   |   | 2,403,000 |   |   | 0.01 |   |

| 11. | LEGAL                    PROCEEDINGS |
|-----|--------------------------------------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**WHISPERING      OAKS INTERNATIONAL, INC.**

**NOTES      TO FINANCIAL STATEMENTS**

**YEARS      ENDED DECEMBER 31, 2005 AND 2004**

| 12. | INCOME                    TAXES |
|-----|---------------------------------|

|                                         |   | 2005   |   | 2004 |   |
|----------------------------------------------|--------|--------|--------|------|--------|
| Federal                income tax rate       |   |   | (35    | %)   |   | (35 | %) |
| Effect                of valuation allowance |   |   | 35     | %    |   | 35 | % |
| Effective                income tax rate     |   |   | 0      | %    |   | 0 | % |

|                                                |   | 2005$  |       | 2004$  |   |
|-----------------------------------------------------|--------|--------|------------|--------|--------|
| Net                operating losses carried forward |   |   | 2,014,000  |   |   | 1,702,000 |   |
| Less:                valuation allowance            |   |   | (2,014,000 | )      |   | (1,702,000 | ) |
| Net                deferred tax asset               |   |   | -          |   |   | - |   |

| 13. | SUBSEQUENT                    EVENTS |
|-----|--------------------------------------|

|   | a) | In                January 2006, the Company issued 206,250 shares of common stock for                services at a fair value of                $171,313. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | In                January 2006, the Company issued 1,219,244 shares of common stock                for                common share subscriptions totaling $85,962 received in December                2005                pursuant to the exercise of                warrants. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | In                February 2006, the Company granted 515,000 stock options to three                directors of the Company at an exercise price of $0.001 per share                expiring                on February 28, 2010. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | In                February 2006, the Company issued 6,850 shares of common stock for                consulting                services at a fair value of $5,000. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*The        accompanying notes are an integral part of these financial        statements*

----

*Index*

**SIGNATURES**

|   | **WHISPERING                OAKS INTERNATIONAL INC.** |
|--------|-------------------------------------------------------|
|   |                                                  |   |
|   |                                                  |   |
|   | By:                                                   | /s/                Dr. Ricardo Moro |
|   |                                                  | Dr.                Ricardo Moro - President and Chief Executive Officer |
|   |                                                  |   |
|   |                                                  |   |
|   | By:                                                   | /s/                Dr. Gerald Wittenberg |
|   |                                                  | Dr.                Gerald Wittenberg, Principal Financial                Officer |

| Signature                                          |   | Title    |   | Date                            |   |
|---------------------------------------------------------|--------|----------|--------|---------------------------------|--------|
|                                                    |   |     |   |                            |   |
|                                                    |   |     |   |                            |   |
|                                                    |   |     |   |                            |   |
| Dr.                  Ricardo Moro                       |   | Director |   | March                  29, 2006 |   |
| Dr.                  Ricardo Moro                       |   |     |   |                            |   |
|                                                    |   |     |   |                            |   |
|                                                    |   |     |   |                            |   |
| Dr.                  Gerald Wittenberg                  |   | Director |   | March                  29, 2006 |   |
| Dr.                  Gerald                  Wittenberg |   |     |   |                            |   |
|                                                    |   |     |   |                            |   |
|                                                    |   |     |   |                            |   |
| Dr.                  Phil Gold                          |   | Director |   | March                  29, 2006 |   |
| Dr.                  Phil Gold                          |   |     |   |                            |   |

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