UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the fiscal year ended December 31, 2007

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the transition period from ____________ to ____________

                       Commission file number: 333-1416686


                                AVRO ENERGY INC.
             (Exact Name of Registrant as Specified in its Charter)

           Nevada                                          20-8387017
(State of other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

    Suite 1000 888 - 3rd Street S.W.
       Calgary, Alberta, Canada                             T2P 5C5
(Address of Principal Executive Offices)                   (Zip Code)

              (Registrant's Telephone Number, including Area Code)
                                  403-444-6413

        SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: None

          SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
                    Common Stock, par value $.001 per share

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities  Exchange Act of 1934 ("Exchange  Act") during the
past 12 months (or for such shorter  period that the  registrant was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes [X] No [ ]

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

Indicate by check mark whether the registrant is a shell company,  as defined in
Rule 12b-2 of the Exchange Act. Yes [X] No [ ]

State issuer's revenues for its most recent fiscal year:  Nil

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]

Common Shares outstanding as of March 27, 2008: 25,450,560
<PAGE>
                                TABLE OF CONTENTS
                                                                            Page
                                                                            ----

PART I .....................................................................  3

ITEM 1:  DESCRIPTION OF BUSINESS ...........................................  3
ITEM 2:  DESCRIPTION OF PROPERTY ........................................... 12
ITEM 3:  LEGAL PROCEEDINGS ................................................. 12
ITEM 4:  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS ............... 13
ITEM 5:  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS .......... 13
ITEM 6:  MANAGEMENT DISCUSSION AND ANALYSIS ................................ 13

PART II .................................................................... 18

ITEM 7:  FINANCIAL STATEMENTS .............................................. 18
ITEM 8:  CONTROLS AND PROCEDURES ........................................... 27

PART III ................................................................... 28

ITEM 9:  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS ...... 28
ITEM 10: EXECUTIVE COMPENSATION ............................................ 29
ITEM 11: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT .... 29
ITEM 12: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS .................... 30
ITEM 13: EXHIBITS AND REPORTS .............................................. 30
ITEM 14: PRINCIPAL ACCOUNTANT FEES AND SERVICES ............................ 31

                                       2
<PAGE>
                                     PART I

ITEM 1: DESCRIPTION OF BUSINESS

COMPANY OVERVIEW

Avro Energy, Inc. (hereinafter referred to as the "Company") was incorporated on
January 31, 2007 by filing Articles of Incorporation  under the Nevada Secretary
of State.  The  Company  was  formed to engage  in the  exploration  of  mineral
properties for molybdenum and other metals.

The Company  filed its articles of  incorporation  with the Nevada  Secretary of
State on January 31, 2007, indicating Mike P. Kurtanjek as its sole Director and
its President and sole executive officer.

Mr.  Michael  Heenan was appointed as a Director of the Company on June 1, 2007.
Ms. Marilyn Woodruff was appointed as a Director of the Company on June 1, 2007.
Ms. Woodruff was also appointed as the Secretary for the Company  effective June
1, 2007.

We issued  25,000,000  shares of common  stock on January  31,  2007 for cash of
$86,250 and issued  264,000 shares of common stock on September 1, 2007 for cash
of $66,000  and  issued  186,560  shares of common  stock on October 1, 2007 for
$46,640.

We are  contemplating  raising  additional  capital to finance  our  exploration
programs.  No final decisions  regarding the program or financing have been made
at this time.

We acquired a molybdenum  property that is located  approximately  35 kilometers
north of Vancouver BC, and  approximately 2 kilometers north of the community of
Britannia  Beach,  BC. Our  Molybdenum  Property  comprises  one  mineral  claim
containing 9 cell claim units totalling 188.293 hectares. Mineral property costs
of $20,000 to date have been expensed.

Our business plan is to proceed with the exploration of our molybdenum  property
to determine  whether there is any potential for molybdenum on the property that
comprises our mineral  claims.  We have decided to proceed with the three phases
of a  staged  exploration  program  recommended  by the  geological  report.  We
anticipate that these phases of the recommended  geological  exploration program
will cost approximately  $15,437.5,  $75,000 and $150,000  respectively.  We had
$26,939 in cash reserves as of the period ended  December 31, 2007.  The lack of
cash has kept us from conducting any exploration work on the property.

We will commence  Phase 1 of the  exploration  program once we receive  funding.
Phase 2 and 3 will commence after completion of the Phase 1 program. As such, we
anticipate  that we will  incur  the  following  expenses  over the next  twelve
months:

     >>   $828.49 to be paid to the British  Columbia  Provincial  government to
          keep the claims valid;

     >>   $16,363.75  in  connection  with  the  completion  of  Phase  1 of our
          recommended geological work program;

     >>   $75,000.00  in  connection  with  the  completion  of  Phase  2 of our
          recommended geological work program;

     >>   $150,000 for Phase 3 of our recommended geological work program; and

                                       3
<PAGE>
     >>   $10,000  for  operating  expenses,  including  professional  legal and
          accounting  expenses  associated  with  compliance  with the  periodic
          reporting  requirements  after we become a reporting  issuer under the
          Securities  Exchange  Act  of  1934,  but  excluding  expenses  of the
          offering.

If we determine not to proceed with further  exploration  of our mineral  claims
due to a determination that the results of our initial geological program do not
warrant  further   exploration  or  due  to  an  inability  to  finance  further
exploration,  we plan to pursue the  acquisition of an interest in other mineral
claims. We anticipate that any future  acquisition would involve the acquisition
of an option to earn an interest  in a mineral  claim as we  anticipate  that we
would not have sufficient  cash to purchase a mineral claim of sufficient  merit
to warrant  exploration.  This means that we might offer  shares of our stock to
obtain an option on a property.  Once we obtain an option,  we would then pursue
finding the funds  necessary to explore the mineral  claim by one or more of the
following means: engaging in an offering of our stock; engaging in borrowing; or
locating a joint venture partner or partners.

BANKRUPTCY OR SIMILAR PROCEEDINGS

We  have  not  been  the  subject  of  a  bankruptcy,  receivership  or  similar
proceedings.

PRODUCTS AND SERVICES

We do not currently have any products or services, and we have no new product or
service planned or announced to the public. As a result, we have no customers or
consumers of our  products,  we have no  principal  suppliers or sources for raw
materials  and there is no need for  government  approval  of our  products  and
services.

MARKETS AND CUSTOMERS

We are in the pre  exploration  stage and presently have no operating  assets or
customers.  The market for metals  that we expect to produce  depends on factors
beyond our  control,  including  the extent of  production,  the  proximity  and
capacity of transportation facilities and demand for metals.

COMPETITION

The mining industry is highly competitive. Competitors will include major mining
companies,  other independent  resource  companies and individual  producers and
operators, most of which will have financial resources, personnel and facilities
substantially  greater than we have.  We will face intense  competition  for the
acquisition of mineral leases and properties.

REGULATIONS

Our  proposed  business  will be  affected  by  numerous  laws and  regulations,
including  environmental,  conservation,  tax and  other  laws  and  regulations
relating  to the  resource  industry.  Most of our  extraction  operations  will
require permits or  authorizations  from federal,  provincial or local agencies.
Changes  in any of these  laws and  regulations  or the  denial or  vacating  of
permits could have a material  adverse  effect on our  business.  In view of the
many  uncertainties  with  respect to current and future  laws and  regulations,
including  their  applicability  to us, we cannot  predict the overall effect of
such laws and regulations on our future operations.

                                       4
<PAGE>
We  expect  that our  operations  will  comply  in all  material  respects  with
applicable laws and  regulations.  We believe that the existence and enforcement
of such  laws and  regulations  will have no more  restrictive  an effect on our
operations than on other similar companies in the resource industry.

ENVIRONMENTAL MATTERS

Our  proposed  business   activities  will  be  subject  to  extensive  federal,
provincial and local environmental laws and regulations  relating to water, air,
hazardous  substances  and  wastes  that may  restrict  or limit  such  business
activities.  Compliance  with the  multitude of  regulations  issued by federal,
state,  provincial  and local  administrative  agencies  can be  burdensome  and
costly.

EMPLOYEES

Our only current  employee is Mike P. Kurtanjek our President and sole executive
officer.

RESEARCH AND DEVELOPMENT EXPENDITURES

We have  not  incurred  any  research  or  development  expenditures  since  our
incorporation.

PATENTS AND TRADEMARKS

We do not own, either legally or beneficially, any patents or trademarks.

RISK FACTORS

RISKS RELATED TO OUR BUSINESS

We  are a  new  enterprise  intending  to  engage  in  the  business  of  mining
exploration and development. The business of acquiring, developing and producing
mineral reserves is inherently risky.

WE ARE AN EXPLORATION STAGE COMPANY WITH NO MINERAL  PROPERTIES AND NO OPERATING
HISTORY IN THE BUSINESS OF MINING EXPLORATION AND DEVELOPMENT.  ACCORDINGLY, YOU
WILL HAVE NO BASIS UPON WHICH TO EVALUATE  OUR  ABILITY TO ACHIEVE OUR  BUSINESS
OBJECTIVES.

We  are  an  exploration  stage  company  and  have  no  current  properties  or
operations.  Our business plan involves our  engagement in mineral  exploration,
which may  include  our  acquisition  and  development,  in  Western  Canada and
elsewhere,  of  mining  properties.   As  a  proposed  mineral  exploration  and
development  company with no operating history or properties and related assets,
it is difficult for potential  investors to evaluate our business.  Our proposed
operations  are  therefore   subject  to  all  of  the  risks  inherent  in  the
establishment  of a new business  enterprise  and must be considered in light of
the expenses,  difficulties,  complications and delays frequently encountered in
connection  with the formation of any new business,  as well as those risks that
are specific to the resource industry.  Investors should evaluate us in light of
the delays,  expenses,  problems and  uncertainties  frequently  encountered  by
companies developing markets for new products, services and technologies. We may
never overcome these obstacles.

Our business is speculative and depends upon the  implementation of our business
plan and our ability to enter into  agreements with third parties for the rights
to exploit mineral reserves on terms that will be commercially viable for us.

                                       5
<PAGE>
OUR PROBABLE LACK OF DIVERSIFICATION  WILL INCREASE THE RISK OF AN INVESTMENT IN
US, AS OUR FINANCIAL  CONDITION AND RESULTS OF OPERATIONS MAY  DETERIORATE IF WE
FAIL TO DIVERSIFY.

Our business will focus on the mining  industry in a single or limited number of
businesses  and  properties.  Larger  companies have the ability to manage their
risk by diversification. However, we will lack diversification, in terms of both
the nature and geographic scope of our business.  As a result, we will likely be
impacted more acutely by factors  affecting our industry or the regions in which
we operate than we would if our business  were more  diversified,  enhancing our
risk profile. If we cannot diversify our operations, our financial condition and
results of operations could deteriorate.

STRATEGIC  RELATIONSHIPS UPON WHICH WE MAY RELY ARE SUBJECT TO CHANGE, WHICH MAY
DIMINISH OUR ABILITY TO CONDUCT OUR OPERATIONS.

Our ability to successfully acquire mineral properties, to discover reserves, to
participate  in  extraction   opportunities  and  to  identify  and  enter  into
commercial  arrangements  with  customers  will  depend  on our  developing  and
maintaining close working  relationships  with industry  participants and on our
ability  to select  and  evaluate  suitable  businesses  and  properties  and to
consummate transactions in a highly competitive environment. These realities are
subject to change and may impair our ability to grow.

To develop our business, we will endeavour to use the business  relationships of
our management to enter into strategic relationships, which may take the form of
joint  ventures with private  parties and  contractual  arrangements  with other
resource  companies,  including those that supply  equipment and other resources
that we expect to use in our  business.  We may not be able to  establish  these
strategic relationships, or if established, we may not be able to maintain them.
In  addition,  the dynamics of our  relationships  with  strategic  partners may
require us to incur  expenses or undertake  activities we would not otherwise be
inclined to in order to fulfil our obligations to these partners or maintain our
relationships. If our strategic relationships are not established or maintained,
our  business  prospects  may be limited,  which could  diminish  our ability to
conduct our operations.

WE MAY NOT BE ABLE TO  EFFECTIVELY  ESTABLISH  MINING  OPERATIONS  OR MANAGE OUR
GROWTH, WHICH MAY HARM OUR PROFITABILITY.

Our strategy  envisions  establishing and expanding our mining  business.  If we
fail to  effectively  establish  mining  operations  and  thereafter  manage our
growth,  our financial results could be adversely  affected.  Growth may place a
strain on our management  systems and resources.  We must continue to refine and
expand our business development capabilities,  our systems and processes and our
access to  financing  sources.  As we grow,  we must  continue  to hire,  train,
supervise  and manage new  employees.  We cannot assure you that we will be able
to:

     *    meet our capital needs;

     *    expand our systems effectively or efficiently or in a timely manner;

     *    allocate our human resources optimally;

     *    identify and hire qualified employees or retain valued employees; or

                                       6
<PAGE>
     *    incorporate  effectively  the  components  of any business that we may
          acquire in our effort to achieve growth.

If we are unable to manage our growth,  our operations and our financial results
could  be  adversely   affected  by  inefficiency,   which  could  diminish  our
profitability.

OUR BUSINESS MAY SUFFER IF WE DO NOT ATTRACT AND RETAIN TALENTED PERSONNEL.

Our success will depend in large measure on the abilities,  expertise, judgment,
discretion  integrity and good faith of our  management  and other  personnel in
conducting our intended  business.  We presently have a small  management  team,
which we intend to expand in conjunction with our planned operations and growth.
The loss of a key  individual  or our  inability to attract  suitably  qualified
staff could materially adversely impact our business.

Our success  depends on the ability of our management and employees to interpret
market and  geological  data correctly and to interpret and respond to economic,
market  and  other  conditions  to  locate  and  adopt  appropriate   investment
opportunities,  monitor  such  investments,  and  ultimately,  if  required,  to
successfully  divest such investments.  Further,  no assurance can be given that
our key personnel will continue their  association or employment with us or that
replacement personnel with comparable skills can be found. We have sought to and
will continue to ensure that management and any key employees are  appropriately
compensated;  however, their services cannot be guaranteed.  If we are unable to
attract and retain key personnel, our business may be adversely affected.

OUR  MANAGEMENT  TEAM  DOES NOT HAVE  EXTENSIVE  EXPERIENCE  IN  PUBLIC  COMPANY
MATTERS,  WHICH COULD  IMPAIR OUR  ABILITY TO COMPLY  WITH LEGAL AND  REGULATORY
REQUIREMENTS.

Our management team has had limited U.S. public company management experience or
responsibilities,  which  could  impair  our  ability  to comply  with legal and
regulatory  requirements such as the  Sarbanes-Oxley  Act of 2002 and applicable
federal  securities laws including filing required reports and other information
required on a timely basis.  There can be no assurance that our management  will
be able to implement and affect programs and policies in an effective and timely
manner that adequately  responds to increased legal,  regulatory  compliance and
reporting  requirements  imposed by such laws and  regulations.  Our  failure to
comply with such laws and regulations  could lead to the imposition of fines and
penalties and further result in the deterioration of our business.

RISKS RELATED TO OUR FINANCIAL CONDITION

WE MAY BE UNABLE TO OBTAIN  ADDITIONAL  CAPITAL THAT WE MAY REQUIRE TO IMPLEMENT
OUR BUSINESS PLAN. THIS WOULD RESTRICT OUR ABILITY TO GROW.

The proceeds  from our private  offerings  completed  during the 11 months ended
December 31, 2007,  provide us with a limited  amount of working  capital and is
not  sufficient  to fund our proposed  operations.  We will  require  additional
capital to continue to operate our business and our proposed operations.  We may
be unable to obtain additional capital as and when required.

Future acquisitions and future development, production and marketing activities,
as well as our administrative requirements (such as salaries, insurance expenses
and general overhead expenses,  as well as legal compliance costs and accounting
expenses) will require a substantial amount of additional capital and cash flow.

                                       7
<PAGE>
We may not be successful in locating suitable financing transactions in the time
period required or at all, and we may not obtain the capital we require by other
means. If we do not succeed in raising additional  capital,  the capital we have
received to date may not be  sufficient  to fund our  operations  going  forward
without obtaining additional capital financing.

Any  additional  capital  raised  through  the sale of equity  may  dilute  your
ownership  percentage.  This could also  result in a decrease in the fair market
value of our equity  securities  because  our assets  would be owned by a larger
pool of outstanding  equity.  The terms of securities we issue in future capital
transactions  may be more  favourable  to our  new  investors,  and may  include
preferences,  superior  voting  rights and the  issuance  of  warrants  or other
derivative  securities,  and issuances of incentive awards under equity employee
incentive plans, which may have a further dilutive effect.

Our ability to obtain  needed  financing  may be impaired by such factors as the
capital markets (both generally and in the resource industry in particular), our
status  as a new  enterprise  without  a  demonstrated  operating  history,  the
location of our mineral  properties and the price of minerals on the commodities
markets (which will impact the amount of asset-based  financing available to us)
or the retention or loss of key  management.  Further,  if mineral prices on the
commodities markets decrease,  then our revenues will likely decrease,  and such
decreased  revenues may increase our requirements for capital.  If the amount of
capital we are able to raise from  financing  activities  is not  sufficient  to
satisfy our capital needs, we may be required to cease our operations.

We may incur substantial costs in pursuing future capital  financing,  including
investment banking fees, legal fees,  accounting fees, securities law compliance
fees,  printing  and  distribution  expenses  and  other  costs.  We may also be
required to recognize non-cash expenses in connection with certain securities we
may issue,  such as convertible  notes and warrants,  which may adversely impact
our financial condition.

WE HAVE A HISTORY OF LOSSES AND AN ACCUMULATED DEFICIT AND EXPECT TO CONTINUE TO
INCUR LOSSES UNTIL WE ESTABLISH PROFITABLE BUSINESS OPERATIONS. THIS COULD DRIVE
THE PRICE OF OUR STOCK DOWN.

We incurred a net loss of $194,066 for the 11 months ended December 31, 2007. As
at December 31, 2007 we had an  accumulated  deficit in the aggregate  amount of
$194,066.  If we fail to achieve profitability and continue to incur losses, the
price of our common stock can be expected to fall.

OUR INDEPENDENT  REGISTERED PUBLIC ACCOUNTING FIRM HAS EXPRESSED DOUBT ABOUT OUR
ABILITY TO CONTINUE AS A GOING CONCERN. THIS COULD MAKE IT MORE DIFFICULT FOR US
TO RAISE FUNDS AND ADVERSELY AFFECT OUR  RELATIONSHIPS  WITH LENDERS,  INVESTORS
AND SUPPLIERS.

The  report of our  independent  registered  public  accounting  firm,  Moores &
Associates  CHTD, on our financial  statements  for the 11 months ended December
31, 2007  contains  an  explanatory  paragraph  that  expresses  doubt as to our
ability to continue as a going concern.  We cannot provide any assurance that we
will in fact operate our business  profitably or obtain sufficient  financing to
sustain  our  business  in the event we are not  successful  in our  efforts  to
generate sufficient revenue and operating cash flow.  Accordingly,  there can be
no assurance that the Report of our  Independent  Registered  Public  Accounting
Firm on our future financial statements for any future period will not include a
similar  explanatory  paragraph if we are unable to  successfully  implement our
business plan. The expression of such doubt by our independent registered public
accounting  firm or our inability to overcome the factors  leading to such doubt
could have a  material  adverse  effect on our  relationships  with  prospective

                                       8
<PAGE>
customers, lenders, investors and suppliers, and therefore could have a material
adverse effect on our business.

RISKS RELATED TO OUR INDUSTRY

AMENDMENTS TO CURRENT LAWS AND  REGULATIONS  GOVERNING  OUR PROPOSED  OPERATIONS
COULD HAVE A MATERIAL ADVERSE IMPACT ON OUR PROPOSED BUSINESS.

Our business will be subject to  substantial  regulation  under  provincial  and
federal laws relating to the exploration  for, and the  development,  upgrading,
marketing,  pricing, taxation, and transportation of minerals and other matters.
Amendments to current laws and regulations  governing  operations and activities
of resource  operations  could have a material  adverse  impact on our  proposed
business.  In addition,  there can be no assurance that income tax laws, royalty
regulations and government  incentive  programs related to the resource industry
generally,  will not be changed in a manner  which may  adversely  affect us and
cause delays, inability to complete or abandonment of properties.

Permits,  leases,  licenses,  and  approvals  are  required  from a  variety  of
regulatory authorities at various stages of mining and extraction.  There can be
no assurance that the various government permits, leases, licenses and approvals
sought will be granted to us or, if granted,  will not be  cancelled  or will be
renewed upon expiration.

ESTIMATES OF MINERAL  RESERVES THAT WE MAKE MAY BE INACCURATE WHICH COULD HAVE A
MATERIAL ADVERSE EFFECT ON US

There are numerous  uncertainties  inherent in estimating  quantities of mineral
resources,  including many factors  beyond our control,  and no assurance can be
given  that  expected  levels of  resources  or  recovery  of  minerals  will be
realized. In general,  estimates of recoverable mineral resources are based upon
a number  of  factors  and  assumptions  made as of the  date on which  resource
estimates are  determined,  such as geological and  engineering  estimates which
have  inherent   uncertainties   and  the  assumed   effects  of  regulation  by
governmental  agencies and  estimates of future  commodity  prices and operating
costs,  all of  which  may  vary  considerably  from  actual  results.  All such
estimates are, to some degree,  uncertain and  classifications  of resources are
only attempts to define the degree of uncertainty  involved.  For these reasons,
estimates of the  recoverable  minerals,  the  classification  of such resources
based  on risk of  recovery,  prepared  by  different  engineers  or by the same
engineers at different times, may vary substantially.

ABANDONMENT AND RECLAMATION COSTS ARE UNKNOWN AND MAY BE SUBSTANTIAL.

We will be responsible for compliance with terms and conditions of environmental
and regulatory approvals and all laws and regulations  regarding the abandonment
of our  properties  and  reclamation of lands at the end of their economic life,
which  abandonment  and reclamation  costs may be substantial.  A breach of such
legislation  and/or  regulations may result in the issuance of remedial  orders,
the suspension of approvals, or the imposition of fines and penalties, including
an order for cessation of operations at the site until satisfactory remedies are
made.  It is not  possible  to  estimate  with  certainty  the  abandonment  and
reclamation  costs since they will be a function of regulatory  requirements  at
the time.

INCREASES  IN OUR  OPERATING  EXPENSES  WILL  IMPACT OUR  OPERATING  RESULTS AND
FINANCIAL CONDITION.

                                       9
<PAGE>
Extraction,  development,  production,  marketing (including distribution costs)
and regulatory  compliance costs (including taxes) will substantially impact the
net  revenues  we derive  from the  minerals  that we  produce.  These costs are
subject to  fluctuations  and  variation in  different  locales in which we will
operate,  and we may not be able to  predict or control  these  costs.  If these
costs  exceed  our  expectations,  this may  adversely  affect  our  results  of
operations. In addition, we may not be able to earn net revenue at our predicted
levels, which may impact our ability to satisfy our obligations.

PENALTIES WE MAY INCUR COULD IMPAIR OUR BUSINESS.

Failure to comply  with  government  regulations  could  subject us to civil and
criminal penalties,  could require us to forfeit property rights, and may affect
the value of our assets.  We may also be required  to take  corrective  actions,
such as installing  additional equipment or taking other actions,  each of which
could  require us to make  substantial  capital  expenditures.  We could also be
required  to  indemnify  our  employees  in  connection  with  any  expenses  or
liabilities  that they may incur  individually  in  connection  with  regulatory
action  against  them.  As  a  result,   our  future  business  prospects  could
deteriorate  due to  regulatory  constraints,  and our  profitability  could  be
impaired by our obligation to provide such indemnification to our employees.

ENVIRONMENTAL RISKS MAY ADVERSELY AFFECT OUR BUSINESS.

Mineral extraction  operations present  environmental  risks and hazards and are
subject to  environmental  regulation  pursuant to a variety of federal,  state,
provincial  and  municipal  laws  and  regulations.   Environmental  legislation
provides  for,  among other things,  restrictions  and  prohibitions  on spills,
releases  or  emissions  of various  substances  produced  in  association  with
resource  operations.  The  legislation  also requires  that  facility  sites be
operated, maintained,  abandoned and reclaimed to the satisfaction of applicable
regulatory authorities. Compliance with such legislation can require significant
expenditures  and a breach may result in the  imposition of fines and penalties,
some of which may be material. Environmental legislation is evolving in a manner
we expect may result in stricter  standards  and  enforcement,  larger fines and
liability and potentially  increased  capital  expenditures and operating costs.
The  discharge  of  pollutants  into the air,  soil or  water  may give  rise to
liabilities to  governments  and third parties and may require us to incur costs
to remedy such discharges. The application of environmental laws to our business
may cause us to curtail our production or increase the costs of our  production,
development or exploration activities.

CHALLENGES TO TITLE TO OUR PROPERTIES MAY IMPACT OUR FINANCIAL CONDITION.

Title to mineral  interests  is often not  capable of  conclusive  determination
without  incurring  substantial  expense.  While we intend  to make  appropriate
inquiries into the title of properties and other development  rights we acquire,
title  defects  may  exist.  In  addition,  we may be unable to obtain  adequate
insurance for title defects,  on a commercially  reasonable  basis or at all. If
title defects do exist,  it is possible that we may lose all or a portion of our
right,  title and interests in and to the  properties to which the title defects
relate.

RISKS RELATED TO OUR COMMON STOCK

THE LIMITED  TRADING OF OUR COMMON  STOCK ON THE OTC  BULLETIN  BOARD MAY IMPAIR
YOUR ABILITY TO SELL YOUR SHARES.

                                       10
<PAGE>
There has been a no trading market for our common stock since our inception. The
lack of trading of our common stock and the low volume of any future trading may
impair your  ability to sell your shares at the time you wish to sell them or at
a price that you consider  reasonable.  Such factors may also impair our ability
to raise  capital by selling  shares of capital stock and may impair our ability
to  acquire  other   companies  or   technologies   by  using  common  stock  as
consideration.

THE MARKET PRICE OF OUR COMMON STOCK IS LIKELY TO BE HIGHLY VOLATILE AND SUBJECT
TO WIDE FLUCTUATIONS.

Assuming we are able to establish an active trading market for our common stock,
the market price of our common  stock is likely to be highly  volatile and could
be subject to wide  fluctuations  in  response  to a number of factors  that are
beyond our control, including:

     *    dilution  caused by our issuance of additional  shares of common stock
          and  other  forms of  equity  securities,  which we  expect to make in
          connection  with future capital  financings to fund our operations and
          growth,  to attract and retain  valuable  personnel  and in connection
          with future strategic partnerships with other companies;

     *    announcements of acquisitions,  reserve  discoveries or other business
          initiatives by our competitors;

     *    fluctuations in revenue from our mineral business as new reserves come
          to market;

     *    changes  in the  market  for  commodities  or in the  capital  markets
          generally;

     *    quarterly variations in our revenues and operating expenses;

     *    changes in the valuation of similarly situated companies,  both in our
          industry and in other industries;

     *    changes in analysts'  estimates  affecting us, our  competitors or our
          industry;

     *    changes in the accounting  methods used in or otherwise  affecting our
          industry;

     *    additions and departures of key personnel;

     *    fluctuations in interest rates and the  availability of capital in the
          capital markets; and

These and other factors are largely beyond our control,  and the impact of these
risks, singly or in the aggregate, may result in material adverse changes to the
market price of our common  stock and our results of  operations  and  financial
condition.

OUR OPERATING RESULTS MAY FLUCTUATE  SIGNIFICANTLY,  AND THESE  FLUCTUATIONS MAY
CAUSE OUR STOCK PRICE TO DECLINE.

Our operating  results will likely vary in the future primarily as the result of
fluctuations in our revenues and operating expenses, expenses that we incur, the
price of minerals in the commodities  markets and other factors.  If our results
of operations do not meet the  expectations  of current or potential  investors,
the price of our common stock may decline.

                                       11
<PAGE>
WE DO NOT EXPECT TO PAY DIVIDENDS IN THE FORESEEABLE FUTURE.

We do not  intend  to  declare  dividends  for  the  foreseeable  future,  as we
anticipate  that we will  reinvest any future  earnings in the  development  and
growth of our business.  Therefore,  investors will not receive any funds unless
they sell  their  common  stock,  and  stockholders  may be unable to sell their
shares on favourable terms or at all.  Investors cannot be assured of a positive
return  on  investment  or that they  will not lose the  entire  amount of their
investment in the common stock.

APPLICABLE  SEC RULES  GOVERNING  THE TRADING OF "PENNY  STOCKS"  WILL LIMIT THE
TRADING AND LIQUIDITY OF OUR COMMON STOCK, WHICH MAY AFFECT THE TRADING PRICE OF
OUR COMMON STOCK.

Our common stock is presently considered to be a "penny stock" and is subject to
SEC rules and regulations which impose limitations upon the manner in which such
shares may be publicly traded and regulate broker-dealer practices in connection
with   transactions  in  "penny  stocks."  Penny  stocks  generally  are  equity
securities with a price of less than $5.00 (other than securities  registered on
certain national securities  exchanges or quoted on the NASDAQ system,  provided
that current price and volume  information  with respect to transactions in such
securities is provided by the exchange or system). The penny stock rules require
a  broker-dealer,  prior to a transaction in a penny stock not otherwise  exempt
from the rules, to deliver a standardized risk disclosure document that provides
information  about  penny  stocks and the risks in the penny stock  market.  The
broker-dealer  must  also  provide  the  customer  with  current  bid and  offer
quotations for the penny stock,  the compensation of the  broker-dealer  and its
salesperson  in the  transaction,  and monthly  account  statements  showing the
market value of each penny stock held in the  customer's  account.  In addition,
the penny stock rules  generally  require that prior to a transaction in a penny
stock, the  broker-dealer  make a special written  determination  that the penny
stock is a suitable  investment  for the purchaser  and receive the  purchaser's
written agreement to the transaction. These disclosure requirements may have the
effect of reducing the level of trading  activity in the secondary  market for a
stock that  becomes  subject to the penny  stock rules  which may  increase  the
difficulty investors may experience in attempting to liquidate such securities.

FORWARD-LOOKING STATEMENTS

This Form 10-KSB  contains  forward-looking  statements  that involve  risks and
uncertainties.  We use words such as anticipate,  believe, plan, expect, future,
intend and similar expressions to identify such forward-looking  statements. You
should not place too much  reliance  on these  forward-looking  statements.  Our
actual results are likely to differ  materially from those  anticipated in these
forward-looking statements for many reasons.

ITEM 2: DESCRIPTION OF PROPERTY

Our principal  executive  office is located at Suite 1000,  888 3rd Street S.W.,
Calgary, Alberta T2P 5C5, Canada.

ITEM 3: LEGAL PROCEEDINGS

There are no legal  proceedings  pending or  threatened  against  us, and we are
unaware of any governmental authority initiating a proceeding against us.

                                       12
<PAGE>
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matter  was  submitted  to a vote of  security  holders  during the 11 months
December 31, 2007 through the solicitation of proxies or otherwise.

ITEM 5: MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

MARKET INFORMATION

The Company intends to make  application to FINRA for the Company's shares to be
quoted on the OTCBB. The Company's  application to FINRA will consist of current
corporate  information,  financial statements and other documents as required by
Rule 15c211 of the Securities Exchange Act of 1934.

DIVIDENDS

There are no  restrictions  in our  articles  of  incorporation  or bylaws  that
prevent us from declaring  dividends.  The Nevada Revised Statutes,  however, do
prohibit  us  from  declaring  dividends  where,  after  giving  effect  to  the
distribution of the dividend:

     1.   we would not be able to pay our debts as they  become due in the usual
          course of business; or

     2.   our total assets  would be less than the sum of our total  liabilities
          plus the  amount  that  would be  needed  to  satisfy  the  rights  of
          shareholders who have preferential  rights superior to those receiving
          the distribution.

We have not declared any dividends,  and we do not plan to declare any dividends
in the foreseeable future.

ITEM 6: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

FORWARD-LOOKING STATEMENTS

The  information  set forth in this section  contains  certain  "forward-looking
statements," including, among other things, (i) expected changes in our revenues
and  profitability,  (ii)  prospective  business  opportunities,  and  (iii) our
strategy for financing our business.  Forward-looking  statements are statements
other than  historical  information  or  statements of current  condition.  Some
forward-looking statements may be identified by use of terms such as "believes,"
"anticipates," "intends," or "expects." These forward-looking  statements relate
to our plans,  objectives and  expectations for future  operations.  Although we
believe that our expectations with respect to the forward-looking statements are
based upon  reasonable  assumptions  within the bounds of our  knowledge  of our
business and operations, in light of the risks and uncertainties inherent in all
future projections,  the inclusion of forward-looking  statements in this report
should not be regarded as a  representation  by us or any other  person that our
objectives or plans will be achieved.

                                       13
<PAGE>
PLAN OF OPERATION

Our business plan is to proceed with the exploration of our molybdenum  property
to determine  whether there is any potential for molybdenum on the property that
comprises our mineral  claims.  We have decided to proceed with the three phases
of a  staged  exploration  program  recommended  by the  geological  report.  We
anticipate that these phases of the recommended  geological  exploration program
will cost approximately  $15,437.5,  $75,000 and $150,000  respectively.  We had
$26,939 in cash reserves as of the period ended  December 31, 2007.  The lack of
cash has kept us from conducting any exploration work on the property.

We will commence  Phase 1 of the  exploration  program once we receive  funding.
Phase 2 and 3 will commence after completion of the Phase 1 program. As such, we
anticipate  that we will  incur  the  following  expenses  over the next  twelve
months:

     >>   $828.49 to be paid to the British  Columbia  Provincial  government to
          keep the claims valid;

     >>   $16,363.75  in  connection  with  the  completion  of  Phase  1 of our
          recommended geological work program;

     >>   $75,000.00  in  connection  with  the  completion  of  Phase  2 of our
          recommended geological work program;

     >>   $150,000 for Phase 3 of our recommended geological work program; and

     >>   $10,000  for  operating  expenses,  including  professional  legal and
          accounting  expenses  associated  with  compliance  with the  periodic
          reporting  requirements  after we become a reporting  issuer under the
          Securities  Exchange  Act  of  1934,  but  excluding  expenses  of the
          offering.

If we determine not to proceed with further  exploration  of our mineral  claims
due to a determination that the results of our initial geological program do not
warrant  further   exploration  or  due  to  an  inability  to  finance  further
exploration,  we plan to pursue the  acquisition of an interest in other mineral
claims. We anticipate that any future  acquisition would involve the acquisition
of an option to earn an interest  in a mineral  claim as we  anticipate  that we
would not have sufficient  cash to purchase a mineral claim of sufficient  merit
to warrant  exploration.  This means that we might offer  shares of our stock to
obtain an option on a property.  Once we obtain an option,  we would then pursue
finding the funds  necessary to explore the mineral  claim by one or more of the
following means: engaging in an offering of our stock; engaging in borrowing; or
locating a joint venture partner or partners.

RESULTS OF OPERATIONS

Since the date of our  inception,  January 31, 2007,  we have not  generated any
revenues.

We  incurred  total  operating  expenses  of  $193,982  for the 11 months  ended
December  31,  2007.  The  bulk  of our  operating  expenses  were  incurred  in
connection  with the  preparation  and filing of our  periodic  reports  and SEC
filings.  We incurred $20,000 in mineral property costs.  Legal and professional
fees for the 11 months ended  December 31, 2007 were  $141,177 and were incurred
in  connection  with  filing of periodic  reports,  SEC  compliance  filings and
general corporate matters.

                                       14
<PAGE>
Our total loss for the 11 months ended December 31, 2007 was $194,066. Our total
loss from inception to December 31, 2007 was $194,066.

SELECTED FINANCIAL INFORMATION

                                                    December 31, 2007
                                                    -----------------
     Current Assets                                      $26,939
     Total Assets                                        $26,939
     Current Liabilities                                 $18,717
     Stockholders' Equity                                $ 8,222

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2007,  we had cash in the bank of  approximately  $26,939  (some
funds are denominated in Canadian dollars).

We issued  25,000,000  shares of common  stock on January  31,  2007 for cash of
$86,250 and issued  264,000 shares of common stock on September 1, 2007 for cash
of $66,000  and  issued  186,560  shares of common  stock on October 1, 2007 for
$46,640.

We are  contemplating  raising  additional  capital to finance  our  exploration
programs.  No final decisions  regarding the program or financing have been made
at this time.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

CRITICAL ACCOUNTING POLICIES

Our financial statements are based on the selection and application of generally
accepted  accounting  principles,   which  require  us  to  make  estimates  and
assumptions  about  future  events  that  affect  the  amounts  reported  in our
financial statements and the accompanying notes. Future events and their effects
cannot be determined with certainty.  Therefore,  the determination of estimates
requires  the  exercise of  judgment.  Actual  results  could  differ from those
estimates, and any such differences may be material to our financial statements.
We  believe  that our  policies  may  involve a higher  degree of  judgment  and
complexity in their application than our other accounting policies and represent
the  critical  accounting  policies  used in the  preparation  of our  financial
statements.  If different assumptions or conditions were to prevail, the results
could  be  materially  different  from our  reported  results.  Our  significant
accounting policies are presented in the notes to our financial statements.

When we prepare our financial statements,  we use estimates and assumptions that
may  affect  reported  amounts  and  disclosures.  We base  these  estimates  on
historical results and various other assumptions believed to be reasonable,  the
results of which form the basis for making  estimates  concerning  the  carrying
value of assets  and  liabilities  that are not  readily  available  from  other
sources.  Actual  results  could differ from the amounts  previously  estimated,
which were based on the  information  available at the time the  estimates  were
made. Changes in estimates are recorded if and when better  information  becomes
available.

                                       15
<PAGE>
We  consider  an  accounting  estimate  to be  critical  if: (1) the  accounting
estimate  requires  us to make an  assumption  about a matter  that  was  highly
uncertain  at the time the  estimate  was made,  and (2) changes in the estimate
that are reasonably likely to occur from period to period, or use of a different
estimate that we reasonably could have used in the current period,  could have a
material  impact  on  our  consolidated   results  of  operations  or  financial
condition.

NEW ACCOUNTING PRONOUNCEMENTS -

In  September  2006,  the FASB issued FASB  Statement  No. 157.  This  Statement
defines  fair  value,  establishes  a  framework  for  measuring  fair  value in
generally accepted  accounting  principles (GAAP), and expands disclosures about
fair  value   measurements.   This  Statement  applies  under  other  accounting
pronouncements that require or permit fair value measurements,  the Board having
previously  concluded in those  accounting  pronouncements  that fair value is a
relevant measurement attribute. Accordingly, this Statement does not require any
new fair value measurements. However, for some entities, the application of this
Statement  will change  current  practices.  This  Statement  is  effective  for
financial statements for fiscal years beginning after November 15, 2007. Earlier
application is permitted  provided that the reporting  entity has not yet issued
financial  statements for that fiscal year.  Management  believes this Statement
will have no impact on the financial statements of the Company once adopted.

In February 2007, the FASB issued  Statement of Financial  Accounting  Standards
No. 159, THE FAIR VALUE OPTION FOR FINANCIAL ASSETS AND FINANCIAL  LIABILITIES -
INCLUDING  AN  AMENDMENT  OF FASB  STATEMENT  NO. 115.  This  Statement  permits
entities to choose to measure many financial instruments and certain other items
at fair value.  The  objective  is to improve  financial  reporting by providing
entities with the opportunity to mitigate volatility in reported earnings caused
by measuring related assets and liabilities  differently without having to apply
complex hedge  accounting  provisions.  This Statement  applies to all entities,
including not-for-profit organizations. Most of the provisions of this Statement
apply only to entities that elect the fair value option.  However, the amendment
to FASB Statement No. 115, ACCOUNTING FOR CERTAIN INVESTMENTS IN DEBT AND EQUITY
SECURITIES,   applies  to  all  entities  with  available-for-sale  and  trading
securities.  The fair value  option  permits  all  entities to choose to measure
eligible items at fair value at specified election dates.

A business  entity shall report  unrealized  gains and losses on items for which
the fair value  option has been  elected in  earnings  (or  another  performance
indicator if the business  entity does not report  earnings) at each  subsequent
reporting  date.  The fair value option may be applied  instrument by instrument
(with a few exceptions); is irrevocable (unless a new election date occurs); and
is applied only to entire  instruments and not to portions of instruments.  This
Statement is effective as of the beginning of an entity's first fiscal year that
begins after or before  November  15,  2007,  provided the entity also elects to
apply the provisions of FASB Statement No. 157, FAIR VALUE MEASUREMENT.

The Company  does not expect the adoption of SFAS 159 to  materially  effect the
Company's  financial  position  or results of  operations.  Management  does not
believe   that  any  recently   issued,   but  not  yet   effective   accounting
pronouncements  if  currently  adopted  would  have  a  material  effect  on the
accompanying consolidated financial statements.

                                       16
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

On January 31, 2007 the Company  issued  25,000,000  shares of Common  Stock for
cash of $86,250.

On  September  1, 2007 the  Company  issued  264,000  shares of Common  Stock by
private placement for cash of $66,000.

On October 1, 2007 the Company  issued 186,560 shares of Common Stock by private
placement for cash of $46,640.

                                       17
<PAGE>
                         PART II - FINANCIAL INFORMATION

ITEM 7: FINANCIAL STATEMENTS


MOORE & ASSOCIATES, CHARTERED
  ACCOUNTANTS AND ADVISORS
      PCAOB REGISTERED

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
Avro Energy, Inc.
(An Exploration Stage Company)

We have  audited  the  accompanying  balance  sheet  of Avro  Energy,  Inc.  (An
Exploration  Stage Company) as of December 31, 2007, and the related  statements
of operations,  stockholders'  equity and cash flows since  inception on January
31,  2007  through  December  31,  2007.  These  financial  statements  are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

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

In our opinion,  the financial  statements  referred to above present fairly, in
all  material  respects,  the  financial  position  of  Avro  Energy,  Inc.  (An
Exploration  Stage Company) as of December 31, 2007, and the related  statements
of operations,  stockholders'  equity and cash flows since  inception on January
31, 2007 through  December 31, 2007, in conformity  with  accounting  principles
generally accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 1 to the
financial  statements,  the Company has incurred  net losses and  negative  cash
flows from  operations,  which  raises  substantial  doubt  about its ability to
continue as a going concern.  Management's  plans  concerning  these matters are
also  described  in  Note  1.  The  financial  statements  do  not  include  any
adjustments that might result from the outcome of this uncertainty.


/s/ Moore & Associates, Chartered
-----------------------------------------
Moore & Associates Chartered
Las Vegas, Nevada
March 27, 2008

               2675 S. Jones Blvd. Suite 109, Las Vegas, NV 89146
                       (702) 253-7499 Fax (702) 253-7501

                                       18
<PAGE>
                                AVRO ENERGY INC.
                         (An Exploration Stage Company)
                                  BALANCE SHEET
                             (Stated in US Dollars)

                                                                    December 31,
                                                                       2007
                                                                     ---------
                                     ASSETS

Current Assets
  Cash                                                               $  26,939
                                                                     ---------

      Total current assets                                           $  26,939
                                                                     =========

                                   LIABILITIES

Current Liabilities
  Accounts payable and accrued liabilities                           $  18,717
                                                                     ---------

      Total current liabilities                                         18,717
                                                                     ---------

                            STOCKHOLDERS' DEFICIENCY

Common stock, $0.001 par value
  100,000,000 shares authorized
  25,450,560 shares issued                                              25,451
Additional paid-in capital                                             173,439
Accumulated comprehensive income                                         3,398
Deficit accumulated during the exploration stage                      (194,066)
                                                                     ---------

      Total Stockholders' Equity (Deficit)                               8,222
                                                                     ---------

      Total Liabilities and Stockholders' Equity (Deficit)           $  26,939
                                                                     =========


         The accompanying notes are an integral part of these statements

                                       19
<PAGE>
                                AVRO ENERGY INC.
                         (An Exploration Stage Company)
                            STATEMENTS OF OPERATIONS
                             (Stated in US Dollars)

                                                                January 31, 2007
                                                                    (Date of
                                                                   Inception)
                                                                       To
                                                                   December 31,
                                                                      2007
                                                                   -----------
EXPENSES:
  Accounting and audit fees                                        $     5,683
  Legal and professional fees                                          147,340
  Office and administration                                             20,959
  Mineral property costs                                                20,000
                                                                   -----------

Total expenses                                                         193,982
                                                                   ===========

      Net (loss) from Operations                                      (193,982)

OTHER INCOME AND EXPENSES:
  Gain (loss) from Currency Transaction                                    (84)
                                                                   -----------
      Net Income (loss) before Taxes                                  (194,066)

PROVISION FOR INCOME TAXES:
  Income Tax Benefit                                                        --
                                                                   -----------

     Net Income (loss) for the period                              $  (194,066)
                                                                   ===========

Other Comprehensive Income (loss)                                        3,398
                                                                   -----------

Total Comprehensive income (loss)                                  $  (190,668)
                                                                   ===========

Basic and diluted loss per common share                            $     (0.01)
                                                                   ===========

Weighted average number of common shares outstanding                25,146,470
                                                                   ===========


         The accompanying notes are an integral part of these statements

                                       20
<PAGE>
                                AVRO ENERGY INC.
                         (An Exploration Stage Company)
                        STATEMENT OF STOCKHOLDERS' EQUITY
    for the period January 31, 2007 (Date of Inception) to December 31, 2007
                             (Stated in US Dollars)

<TABLE>
<CAPTION>
                                                                                              Deficit
                                                                                            Accumulated
                                                   Common    Additional        Other          During
                                                   Stock       Paid-In     Comprehensive    Development    Stockholders'
                                      Shares       Amount      Capital        Income           Stage           Equity
                                      ------       ------      -------        ------           -----           ------
<S>                                 <C>          <C>          <C>            <C>             <C>              <C>
Balance January 31, 2007
 - Inception                               --     $    --     $     --        $    --        $      --       $      --
Stock issued for cash -
 January 31, 2007                  25,000,000      25,000       61,250             --               --          86,250
Stock issued for cash -
 September 1, 2007                    264,000         264       65,736             --               --          66,000
 October 1, 2007                      186,560         187       46,453         46,640
Foreign currency
 translation adjustment                    --          --           --          3,398               --           3,398

Net (Loss)                                 --          --           --             --         (194,066)       (194,066)
                                   ----------     -------     --------        -------        ---------       ---------

Balance - December 31, 2007        25,450,560     $25,451     $173,439        $ 3,398        $(194,066)      $   8,222
                                   ==========     =======     ========        =======        =========       =========
</TABLE>


         The accompanying notes are an integral part of these statements

                                       21
<PAGE>
                                AVRO ENERGY INC.
                         (An Exploration Stage Company)
                             STATEMENT OF CASH FLOWS
                             (Stated in US Dollars)

                                                                January 31, 2007
                                                                    (Date of
                                                                   Inception)
                                                                       To
                                                                   December 31,
                                                                      2007
                                                                    ---------
Operating Activities
  Net (loss) for the period                                         $(194,066)
  Change in non-cash working capital balances
   related to operations
     Foreign currency income                                            3,398
     Accounts payable and accrued liabilities                          18,717
                                                                    ---------

Cash used in operating activities                                    (171,951)
                                                                    ---------
Financing Activities
  Capital stock issued                                                198,890
                                                                    ---------

Cash from financing activities                                        198,890
                                                                    ---------

Increase (decrease) in cash during the period                          26,939

Cash, beginning of the period                                              --
                                                                    ---------

Cash, end of the period                                             $  26,939
                                                                    =========

Cash Paid For:
  Interest                                                          $      --
                                                                    =========
  Income Tax                                                        $      --
                                                                    =========

Non-cash Activities                                                 $      --
                                                                    =========


         The accompanying notes are an integral part of these statements

                                       22
<PAGE>
                                AVRO ENERGY INC.
                         (An Exploration Stage Company)
                        NOTES TO THE FINANCIAL STATEMENTS
                                December 31, 2007
                             (Stated in US Dollars)


1.   DESCRIPTION  OF  BUSINESS,  HISTORY AND SUMMARY OF  SIGNIFICANT  ACCOUNTING
     POLICIES

     DESCRIPTION  OF  BUSINESS  AND  HISTORY - Avro  Energy,  Inc.  (hereinafter
     referred  to as the  "Company")  was  incorporated  on January  31, 2007 by
     filing Articles of  Incorporation  under the Nevada Secretary of State. The
     Company was formed to engage in the  exploration of mineral  properties for
     molybdenum  and other  metals.  The  Company's  operations  were limited to
     general  administrative  operations and is considered an Exploration  stage
     company in accordance with Statement of Financial  Accounting Standards No.
     7.

     The  Company  has   acquired  a   molybdenum   property   that  is  located
     approximately  35  kilometers  north of Vancouver BC, and  approximately  2
     kilometers  north of the  community of Britannia  Beach,  BC. The Company's
     Molybdenum  Property  comprises one mineral  claim  containing 9 cell claim
     units totalling 188.293 hectares.

     MANAGEMENT  OF COMPANY - The Company  filed its  articles of  incorporation
     with the Nevada Secretary of State on January 31, 2007,  indicating Mike P.
     Kurtanjek  as its  sole  Director  and its  President  and  sole  executive
     officer.

     Mr.  Michael  Heenan was  appointed as a Director of the Company on June 1,
     2007.  Ms.  Marilyn  Woodruff was appointed as a Director of the Company on
     June 1, 2007.  Ms.  Woodruff was also  appointed as the  Secretary  for the
     Company effective June 1, 2007.

     GOING CONCERN. The ability of the Company to continue as a going concern is
     dependent on additional sources of capital and the success of the Company's
     business plan. As reflected in the accompanying  financial statements,  the
     Company has incurred net losses and  negative  cash flows from  operations,
     which raises substantial doubt about the Company's ability to continue as a
     going concern. The financial statements do not include any adjustments that
     might be necessary if the Company is unable to continue as a going concern.

     YEAR END - The Company's fiscal year end is December 31.

     USE OF ESTIMATES - The  preparation  of financial  statements in conformity
     with generally accepted  accounting  principles requires management to make
     estimates and  assumptions  that affect the reported  amounts of assets and
     liabilities and disclosure of contingent assets and liabilities at the date
     of the  financial  statements  and the  reported  amounts  of  revenue  and
     expenses  during the  reporting  period.  Actual  results could differ from
     those estimates.

     CASH AND  CASH  EQUIVALENTS  - The  Company  considers  all  highly  liquid
     investments  with  original  maturities  of three months or less to be cash
     equivalents.

     LEGAL  PROCEDURES - The Company is not aware of, nor is it involved in, any
     pending legal proceedings.

                                       23
<PAGE>
1.   DESCRIPTION  OF  BUSINESS,  HISTORY AND SUMMARY OF  SIGNIFICANT  ACCOUNTING
     POLICIES (continued)

     RESOURCE  PROPERTIES - Company  follows the  successful  efforts  method of
     accounting for its resource  properties.  Unproved resource  properties are
     periodically assessed and any impairment in value is charged to exploration
     expense.  The costs of  unproved  properties,  which are  determined  to be
     productive are transferred to proved  resource  properties and amortized on
     an equivalent  unit-of-production  basis.  Exploratory expenses,  including
     geological  and  geophysical  expenses  and delay  rentals for  unevaluated
     resource  properties,  are  charged  to expense  as  incurred.  Exploratory
     drilling costs are initially  capitalized as unproved  property but charged
     to expense if and when the well is determined  not to have found proved oil
     and gas reserves.

     INCOME TAXES - The Company accounts for its income taxes in accordance with
     Statement  of  Financial  Accounting  Standards  No.  109,  which  requires
     recognition  of  deferred  tax  assets  and   liabilities  for  future  tax
     consequences  attributable to differences  between the financial  statement
     carrying  amounts of existing assets and  liabilities and their  respective
     tax  bases  and  tax  credit  carry  forwards.   Deferred  tax  assets  and
     liabilities  are  measured  using  enacted  tax rates  expected to apply to
     taxable  income  in the  years in which  those  temporary  differences  are
     expected to be recovered or settled.  The effect on deferred tax assets and
     liabilities  of a change in tax rates is  recognized  in  operations in the
     period that includes the enactment date.

     Management feels the Company will have a net operating loss carryover to be
     used  for  future  years.  The  Company  has not  established  a  valuation
     allowance for the full tax benefit of the operating loss  carryovers due to
     the uncertainty regarding realization.

     NET INCOME (LOSS) PER COMMON SHARE - The Company computes net income (loss)
     per share in  accordance  with SFAS No. 128,  Earnings per Share (SFAS 128)
     and SEC Staff Accounting  Bulletin No. 98 (SAB 98). Under the provisions of
     SFAS 128 and SAB 98,  basic net loss per share is computed by dividing  the
     net loss  available to common  stockholders  for the period by the weighted
     average number of shares of common stock outstanding during the period. The
     calculation  of diluted  net loss per share  gives  effect to common  stock
     equivalents;  however, potential common shares are excluded if their effect
     is  anti-dilutive.  For the 11 months ended  December 31, 2007, Nil options
     and warrants  were excluded from the  computation  of diluted  earnings per
     share because their effect would be anti-dilutive.

     COMPREHENSIVE INCOME (LOSS) - The Company's funds at December 31, 2007 were
     held  in  Canadian  and  U.S.  Dollar  bank  accounts.   Foreign   currency
     translation  gains for the 11 months ended  December  31, 2007  amounted to
     $3,398.  Total foreign currency  translation  gains from January 1, 2007 to
     December 31, 2007 were $3,398.

     FOREIGN  CURRENCY  TRANSLATION  -  The  Company's  functional  currency  is
     Canadian  Dollar but also maintains  funds in US Dollar bank accounts.  The
     Company  uses the  United  States  Dollar  as its  reporting  currency  for
     consistency  with  registrants of the  Securities  and Exchange  Commission
     ("SEC")  and in  accordance  with  the  SFAS  No.  52 -  "Foreign  Currency
     Translation".  Assets and liabilities denominated in a foreign currency are
     translated  at the  exchange  rate in effect at the period end and  capital
     accounts are translated at historical rates.  Income statement accounts are
     translated at the average rates of exchange  prevailing  during the period.
     Translation  adjustments  from the use of  different  exchange  rates  from
     period to period  are  included  in the  comprehensive  income  account  in
     stockholder's equity, if applicable.

                                       24
<PAGE>
1.   DESCRIPTION  OF  BUSINESS,  HISTORY AND SUMMARY OF  SIGNIFICANT  ACCOUNTING
     POLICIES (continued)

     FOREIGN CURRENCY TRANSLATION - continued

     Transactions undertaken in currencies other than the functional currency of
     the  entity  are  translated  using the  exchange  rate in effect as of the
     transaction date. Any exchange gains and losses are included in other items
     on the statement of operations.

     FAIR VALUE OF FINANCIAL  INSTRUMENTS  - The  carrying  amounts of financial
     instruments,  including  cash and cash  equivalents,  accounts  payable and
     accrued expenses approximate fair value at December 31, 2007 because of the
     relatively short maturity of the instruments.

     REVENUE  RECOGNITION  - The  Company  has no  revenues  to  date  from  its
     operations.

     NEW ACCOUNTING PRONOUNCEMENTS -

     In September  2006,  the FASB issued FASB Statement No. 157. This Statement
     defines fair value,  establishes a framework  for  measuring  fair value in
     generally accepted  accounting  principles (GAAP), and expands  disclosures
     about  fair  value   measurements.   This  Statement  applies  under  other
     accounting  pronouncements  that require or permit fair value measurements,
     the Board having  previously  concluded in those accounting  pronouncements
     that fair  value is a relevant  measurement  attribute.  Accordingly,  this
     Statement does not require any new fair value  measurements.  However,  for
     some  entities,  the  application  of this  Statement  will change  current
     practices.  This Statement is effective for financial statements for fiscal
     years beginning after November 15, 2007.  Earlier  application is permitted
     provided that the reporting entity has not yet issued financial  statements
     for that fiscal  year.  Management  believes  this  Statement  will have no
     impact on the financial statements of the Company once adopted.

     In  February  2007,  the FASB  issued  Statement  of  Financial  Accounting
     Standards No. 159, THE FAIR VALUE OPTION FOR FINANCIAL ASSETS AND FINANCIAL
     LIABILITIES  - INCLUDING  AN  AMENDMENT  OF FASB  STATEMENT  NO. 115.  This
     Statement permits entities to choose to measure many financial  instruments
     and  certain  other  items  at fair  value.  The  objective  is to  improve
     financial  reporting by providing entities with the opportunity to mitigate
     volatility  in reported  earnings  caused by measuring  related  assets and
     liabilities  differently  without having to apply complex hedge  accounting
     provisions.   This   Statement   applies   to   all   entities,   including
     not-for-profit  organizations.  Most of the  provisions  of this  Statement
     apply  only to  entities  that elect the fair value  option.  However,  the
     amendment to FASB Statement No. 115,  ACCOUNTING FOR CERTAIN INVESTMENTS IN
     DEBT AND EQUITY SECURITIES, applies to all entities with available-for-sale
     and trading  securities.  The fair value  option  permits  all  entities to
     choose to measure eligible items at fair value at specified election dates.

     A business  entity  shall report  unrealized  gains and losses on items for
     which the fair  value  option  has been  elected in  earnings  (or  another
     performance  indicator if the business entity does not report  earnings) at
     each  subsequent  reporting  date.  The fair  value  option  may be applied
     instrument by instrument (with a few exceptions);  is irrevocable (unless a
     new election date occurs);  and is applied only to entire  instruments  and
     not to portions of  instruments.  This  Statement  is  effective  as of the
     beginning  of an entity's  first  fiscal  year that begins  after or before
     November 15, 2007,  provided the entity also elects to apply the provisions
     of FASB Statement No. 157, FAIR VALUE MEASUREMENT.

                                       25
<PAGE>
1.   DESCRIPTION  OF  BUSINESS,  HISTORY AND SUMMARY OF  SIGNIFICANT  ACCOUNTING
     POLICIES (continued)

     NEW ACCOUNTING PRONOUNCEMENTS - continued

     The Company does not expect the adoption of SFAS 159 to  materially  effect
     the Company's financial position or results of operations.  Management does
     not believe  that any recently  issued,  but not yet  effective  accounting
     pronouncements  if currently  adopted  would have a material  effect on the
     accompanying consolidated financial statements.

2.   MINERAL PROPERTY

     The  Company  has   acquired  a   molybdenum   property   that  is  located
     approximately  35  kilometers  north of Vancouver BC, and  approximately  2
     kilometers  north of the  community of Britannia  Beach,  BC. The Company's
     Molybdenum  Property  comprises one mineral  claim  containing 9 cell claim
     units totalling 188.293 hectares. Mineral property costs of $20,000 to date
     have been expensed.

3.   CAPITAL STOCK

     Authorized:

     100,000,000 Shares of Common Stock with a par value of $0.001 per share.

     Issued:

     As of December 31, 2007, there are 25,450,560 shares issued and outstanding
     for a total cash consideration of $198,890.

     There are no  preferred  shares  outstanding.  The  Company  has  issued no
     authorized preferred shares.

     The  Company  has  no  stock  option  plan,   warrants  or  other  dilutive
     securities.

4.   LITIGATION

     As of December 31, 2007, the Company is not aware of any current or pending
     litigation, which may affect the Company's operations.

                                       26
<PAGE>
ITEM 8. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS

We evaluated the  effectiveness of our disclosure  controls and procedures as of
the date of this report.  This  evaluation  was  conducted by our  President and
Chief Executive Officer, Mike P. Kurtanjek.

Disclosure  controls  are  controls  and other  procedures  that are designed to
ensure that  information that we are required to disclose in the reports we file
pursuant  to  the  Securities  Exchange  Act of  1934  is  recorded,  processed,
summarized and reported.

LIMITATIONS ON EFFECTIVE CONTROLS

Our  management  does not expect that our  disclosure  controls or our  internal
controls over  financial  reporting  will prevent all error and fraud. A control
system, no matter how well conceived and operated,  can provide only reasonable,
but no absolute,  assurance  that the  objectives  of a control  system are met.
Further, any control system reflects limitations on resources,  and the benefits
of a control system must be considered  relative to its costs. These limitations
also include the realities that judgments in  decision-making  can be faulty and
that  breakdowns  can occur  because of simple  error or mistake.  Additionally,
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion of two or more people or by management override of a control. A design
of a control  system is also  based upon  certain  assumptions  about  potential
future conditions;  over time, controls may become inadequate because of changes
in conditions,  or the degree of compliance  with the policies or procedures may
deteriorate.  Because of the inherent  limitations in a  cost-effective  control
system, misstatements due to error or fraud may occur and may not be detected.

CONCLUSIONS

Based upon their  evaluation of our controls,  the Chief  Executive  Officer has
concluded that, subject to the limitations noted above, the disclosure  controls
are  effective in  providing  reasonable  assurance  that  material  information
relating to us is made known to  management  on a timely basis during the period
when our  reports  are being  prepared.  There were no  changes in our  internal
controls  that  occurred  during the period  covered  by this  report  that have
materially affected,  or are reasonably likely to materially affect our internal
controls.

EVALUATION OF AND REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal
control  over  financial  reporting  for  the  company.  Internal  control  over
financial reporting is to provide reasonable assurance regarding the reliability
of our  financial  reporting  purposes  accordance  with  accounting  principles
generally  accepted  in the United  States of  America.  Internal  control  over
financial  reporting  includes  maintaining  records that in  reasonable  detail
accurately and fairly reflect our transaction;  providing  reasonable  assurance
that  transactions  are recorded as necessary for  preparations of our financial
statements;  providing  reasonable  assurance that receipts and  expenditures of
company  assets  are  made in  accordance  with  management  authorization;  and
providing   reasonable   assurance  that  unauthorized   acquisitions,   use  or
disposition of company assets that could have a material effect on our financial
statements would be prevented or detected.

                                       27
<PAGE>
Management  conducted an evaluation of the effectiveness of our internal control
over financial reporting based on the framework in Internal Control - Integrated
Framework  issued by the Committee of Sponsoring  Organizations  of the Treadway
Commission.  Based on this  evaluation  management  concluded that the company's
internal control over financial reporting was effective as of December 31, 2007.
There where no changes in our internal  control over financial  reporting during
the  period  ended  December  31,  2007 that have  materially  affected,  or are
reasonable  likely to materially  affect,  or are reasonably  likely to material
affect, our internal control over financial reporting.

                                    PART III

ITEM 9: DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

<TABLE>
<CAPTION>
                                                                                       Served as a Director
     Name                   Age           Position with Registrant                       or Officer since
     ----                   ---           ------------------------                       ----------------
<S>                        <C>     <C>                                                   <C>
Mike P. Kurtanjek           56     President, Chief Executive Officer and Director        January 1, 2007
Michael Heenan              55     Director                                               June 1, 2007
Marilyn Woodruf             41     Secretary and Director                                 June 1, 2007
</TABLE>

Mike P. Kurtanjek,  56, has been  self-employed  with Grosvenor  Capital Limited
since 1995. Prior to that time, he was employed by Credit Lyonnais,  James Capel
& Co. and Prudential  Assurance Company as a Fund Manager and Investment Banker.
Mr.  Kurtanjek  was the  manager of the Natural  Resources  Group of The British
Sulphur  Corporation  where he  managed  several  Work Bank  sponsored  projects
focused on oil and gas in several North African and Middle Eastern countries.

Michael Heenan,  55, is an independent  businessman  involved in the oil and gas
industry in Canada.

Marilyn Woodruff,  41, is an independent  businesswoman with interest in imports
and sale of goods from Russia.

Neither Mr.  Kurtanjek nor Mr.  Heenan nor Ms.  Woodruf is related to any of our
other  directors  or  officers.  During the last two  years,  there have been no
transactions,  or  proposed  transactions,  to which we were or are a party,  in
which Messrs.  Kurtanjek or Heenan or Ms.  Woodruf had or is to have a direct or
indirect material interest.

All directors are elected annually by our shareholders and hold office until the
next annual  meeting.  Each officer holds office at the pleasure of the board of
directors.

CODE OF ETHICS

The Company has not  formally  adopted a written  code of ethics that applies to
the  Company's  principal  executive  officer,  principal  financial  officer or
controller,  or persons performing  similar functions.  Based on our small size,
early development  stage and limited  financial and human resources,  we did not
believe  that  formally  adopting a written  code of ethics  would  benefit  the
shareholders.

                                       28
<PAGE>
AUDIT COMMITTEE

Since we have only three  directors,  we have neither an audit  committee of the
Board of Directors nor an "audit committee  financial  expert",  as such term is
defined under the Securities Exchange Act.

COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

Section  16(a) of the Exchange  Act, as amended,  requires  that our  directors,
executive  officers  and  persons who own more than 10% of a class of our equity
securities  which  are  registered  under  the  Exchange  Act to file  with  the
Commission  initial  reports of ownership and reports of changes of ownership of
such registered securities.

To our knowledge,  based solely on a review of copies of such reports, no person
required to file such a report failed to file a required  report with respect to
the fiscal year covered by this report.

ITEM 10: EXECUTIVE COMPENSATION

The table below  summarizes all  compensation  awarded to, earned by, or paid to
our executive officers by any person for all services rendered in all capacities
to us for the 11 months ended December 31, 2007.

<TABLE>
<CAPTION>
                                                Annual Compensation                       Long Term Compensation
                                           ------------------------------  -------------------------------------------------
                                                                           Restricted
                                                             Other Annual    Stock     Options/      LTIP        All Other
Name                Title          Year    Salary    Bonus   Compensation   Awarded    SARs (#)   Payouts ($)   Compensation
----                -----          ----    ------    -----   ------------   -------    --------   -----------   ------------
<S>                <C>            <C>       <C>      <C>        <C>           <C>        <C>         <C>           <C>
Mike P. Kurtanjek  President,      2007      $0       $0         $0            $0         $0          $0            $0
                   CEO, CFO and
                   Director

Michael Heenan     Director        2007      $0       $0         $0            $0         $0          $0            $0

Marilyn Woodruf    Secratery       2007      $0       $0         $0            $0         $0          $0            $0
                   and Director
</TABLE>

ITEM 11: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth information regarding the beneficial ownership of
our shares of common  stock at March 8, 2008,  by (i) each person known by us to
be the  beneficial  owner of more  than 5% of our  outstanding  shares of common
stock, (ii) each of our directors, (iii) our executive officers, and (iv) by all
of our  directors and  executive  officers as a group.  Each person named in the
table,  has sole voting and investment power with respect to all shares shown as
beneficially  owned by such person and can be contacted at our executive  office
address.

                                       29
<PAGE>
<TABLE>
<CAPTION>
                                                                Shares of            Options
Title of Class                   Name of Beneficial Owner      Common Stock          (Vested)       Percent of Class
--------------                   ------------------------      ------------          --------       ----------------
<S>                             <C>                            <C>                    <C>           <C>
Common                           Mike P. Kurtanjek               4,800,000              0                 19.2%

Common                           Michael Heenan                    100,000              0                  0.4%

Common                           Marilyn Woodruf                   100,000              0                  0.4%

Directors and Officers as a
 Group consisting of one person                                  5,000,000              0                   20%
</TABLE>

The above  calculations  were made on  25,450,560  shares  of our  Common  Stock
outstanding as of March 8, 2008.

ITEM 12: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None of our  directors,  or  officers,  any  proposed  nominee for election as a
director,  any person who  beneficially  owns,  directly or  indirectly,  shares
carrying more than 10% of the voting rights  attached to all of our  outstanding
shares, any promoter,  or any relative or spouse of any of the foregoing persons
has any material  interest,  direct or indirect,  in any  transaction  since our
incorporation or in any presently  proposed  transaction  which, in either case,
has or will materially affect us.

Our management is involved in other  business  activities and may, in the future
become  involved  in  other  business  opportunities.  If  a  specific  business
opportunity  becomes  available,  such  persons may face a conflict in selecting
between our business  and their other  business  interests.  In the event that a
conflict of interest  arises at a meeting of our  directors,  a director who has
such a conflict  will disclose his interest in a proposed  transaction  and will
abstain from voting for or against the approval of such transaction.

ITEM 13: EXHIBITS AND REPORTS

The following exhibits are included herein,  except for the exhibits marked with
a footnote,  which are incorporated  herein by reference and can be found in the
appropriate document referenced.

Exhibit
Number                             Description
------                             -----------
 3.1(1)   Articles of Incorporation as filed with the Nevada Secretary of State
          on January 31, 2007.
 3.3(1)   Bylaws of the Registrant
31.1      Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant
          to Section 302 of the Sarbanes-Oxley Act of 2002
32.1      Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant
          to Section 906 of the Sarbanes-Oxley Act of 2002

----------
(1)  Incorporated  by reference to the  Registrant's  Registration  Statement on
     Form SB-1/A, filed on May 2, 2007.

                                       30
<PAGE>
ITEM 14: PRINCIPAL ACCOUNTANT FEES AND SERVICES

Moore & Associates  CHTD,  independent  public  accountants,  are our  principal
accountants.  They billed the following  fees for the services  indicated in the
following fiscal years:

                                          Fiscal year-ended
                                          December 31, 2007
                                          -----------------

     Audit fees                                $    0
     Audit-related fees                        $    0
     Tax fees                                  $    0
     All other fees                            $3,000

Audit  fees  consist  of fees  related  to  professional  services  rendered  in
connection  with the audit of our annual  financial  statements.  All other fees
relate to  professional  services  rendered in connection with the review of the
quarterly financial statements.

Insomuch as we do not have an audit committee,  our board of directors  performs
the functions of an audit committee.  Section 10A(i) of the Securities  Exchange
Act of 1934 prohibits our auditors from performing audit services for us as well
as any services not considered to be "audit  services"  unless such services are
pre-approved  by the  board of  directors  (in lieu of the audit  committee)  or
unless the services meet certain de minimis standards.

                                       31
<PAGE>
                                   SIGNATURES

In accordance with Section 13 or 15 (d) of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                          /s/ Mike P. Kurtanjek
                                          --------------------------------------
                                          MIKE KURTANJEK
                                          President, Chief Executive Officer and
                                          Director

                                          Dated: March 31, 2008


                                       32