----

----

|  Nevada                                                                          |   |  20-1740321                                |
|---------------------------------------------------------------------------------------|--------|-------------------------------------------------|
|  (State      or other jurisdiction ofincorporation      or organization)         |   |  (I.R.S.      Employer Identification No.) |
|                                                                                  |   |                                            |
|   26 Densley      Avenue                                               |
|   Toronto, Ontario      M6M 2R1                                        |
|   (Address,      including zip code, of principal executive  offices)  |
|                                                                                  |   |                                            |
|                                                                                  |   |                                            |
|   Issuer’s      telephone number : (416)      246-1100           |
|                                                                        |

| Large accelerated      filer | o      | Accelerated      filer         | o      |
|------------------------------|--------|--------------------------------|--------|
|                         |   |                           |   |
| Non-accelerated      filer   | o      | Smaller reporting      company | x      |

----

|  PART      I: FINANCIAL INFORMATION                                                                  |  Page |
|-----------------------------------------------------------------------------------------------------------|------------|
|                                                                                                      |       |
|  Item      1. Financial Statements:                                                                  |  3    |
|                                                                                                      |       |
|  Item      2. Managements Discussion and Analysis of Financial Condition and Plan of      Operations |  8    |
|                                                                                                      |       |
|  Item      3. Controls and Procedures                                                                |  9    |
|                                                                                                      |       |
|  PART      II: OTHER INFORMATION                                                                     |  9    |
|                                                                                                      |       |
|  Item      1. Legal Proceedings                                                                      |  9    |
|                                                                                                      |       |
|  Item      2. Changes in Securities                                                                  |  9    |
|                                                                                                      |       |
|  Item      3. Defaults upon Senior Securities                                                        |  9    |
|                                                                                                      |       |
|  Item      4. Submission of Matters for a Vote of Security Holders                                   |  9    |
|                                                                                                      |       |
|  Item      5. Other Information                                                                      |  9    |
|                                                                                                      |       |
|  Item      6. Exhibits and Reports on Form 8-K                                                       |  9    |
|                                                                                                      |       |
|  SIGNATURES                                                                                          |  10   |

----

|  INDEX                                                                                                                                                                                                                                    |  Page |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                                                                                                                           |       |
|  Consolidated      Balance Sheets as of March 31, 2008 (Unaudited) and December 31,      2007                                                                                                                                             |  4    |
|                                                                                                                                                                                                                                           |       |
|  Consolidated      Statements of Operation for the Three Months Ended March 31, 2008 and 2007      (Unaudited), and for the period from the inception of the development      stage on October 1, 1992 through March 31, 2008(unaudited)  |  5    |
|                                                                                                                                                                                                                                           |       |
|  Consolidated      Statements of Cash Flows for the Three Months Ended March 31, 2008 and      2007 (Unaudited), and for the period from the inception of the development      stage on October 1, 1992 through March 31, 2008(unaudited) |  6    |
|                                                                                                                                                                                                                                           |       |
|  Notes      to Financial Statements                                                                                                                                                                                                       |  7    |

----

| W2      ENERGY, INC.                                                                 |                                                                                  |
|--------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| (A      Development Stage Company)                                                   |                                                                                  |
| Balance      Sheets                                                                  |                                                                                  |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
| ASSETS                                                                               |                                                                                  |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   | March      31, |   |   | December      31, |   |
|                                                                                 |                                                                                  |   |   | 2008 |   |   | 2007 |   |
|                                                                                 |                                                                                  |   |   | (unaudited) |   |   |   |   |   |
| CURRENT      ASSETS                                                                  |                                                                                  |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 | Cash                                                                                  |   |   | $ |               1,849 |   |   | $ |                    29 |   |
|                                                                                 | Prepaid      expenses                                                                 |   |   |               1,394 |   |   |   |               4,355 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  | Total      Current Assets |   |   |               3,243 |   |   |   |               4,384 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT, net                                                     |                                                                                  |   |             16,006 |   |   |   |             15,263 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
| OTHER      ASSETS                                                                    |                                                                                  |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 | Technology                                                                            |   |   |                       - |   |   |   |                       - |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  | Total      Other Assets |   |   |                       - |   |   |   |                       - |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  | TOTAL      ASSETS |   | $ |             19,249 |   |   | $ |             19,647 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY (DEFICIT)                                  |                                                                                  |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                             |                                                                                  |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 | Accounts      payable and accrued expenses                                            | $ |           131,303 |   |   | $ |             78,914 |   |
|                                                                                 | Related      party payables                                                           |   |   |                  486 |   |   |   |                  486 |   |
|                                                                                 | Notes      payable                                                                    |   |   |           105,946 |   |   |   |           137,556 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  | Total      Current Liabilities |   |   |           237,735 |   |   |   |           216,956 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
| LONG      TERM DEBT                                                                  |                                                                                  |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 | Notes      payable                                                                    |   |   |           402,949 |   |   |   |           402,949 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  | TOTAL      LIABILITIES |   |   |           640,684 |   |   |   |           619,905 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY (DEFICIT)                                                  |                                                                                  |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 | Preferred      stock, $0.001par value; 150,000,000 shares authorized;      61,050,833 |   |   |   |   |   |   |   |
|                                                                                 | and      no shares issued and outstanding, respectively                               |   |             61,051 |   |   |   |                       - |   |
|                                                                                 | Common      stock, $0.001par value; 250,000,000 shares authorized;      114,548,031   |   |   |   |   |   |   |   |
|                                                                                 | and      173,698,864 shares issued and outstanding, respectively                      |   |           114,548 |   |   |   |           173,699 |   |
|                                                                                 | Stock      subscription payable                                                       |   |   |             54,843 |   |   |   |                       - |   |
|                                                                                 | Additional      paid-in capital                                                       |   |   |      17,294,248 |   |   |   |      17,131,148 |   |
|                                                                                 | Accumulated      deficit                                                              |   |   |     (18,146,125 | )  |   |   |     (17,905,105 | )  |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  | Total      Stockholders' Equity (Deficit) |   |          (621,435 | )  |   |   |          (600,258 | )  |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  | TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ |             19,249 |   |   | $ |             19,647 |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                                                                  |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements. |                                                                                  |

----

| W2      ENERGY, INC.                                                                 |
|--------------------------------------------------------------------------------------|
| (A      Development Stage Company)                                                   |
| Statements      of Operations                                                        |
| (Unaudited)                                                                          |
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   | From      Inception of |   |
|                                                                                 |   |   |   |   |   |   | the      Development |   |
|                                                                                 | For      the Three Months |   | Stage      on October |   |
|                                                                                 | Ended |   | 1,      1992 Through |   |
|                                                                                 | March      31, |   | March      31, |   |
|                                                                                 | 2008 |   | 2007 |   | 2008 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |
| REVENUES                                                                             |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| COST      OF GOODS SOLD                                                              |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| GROSS      PROFIT                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Research      and development                                                        |   |   | - |   |   |   | 18,804 |   |   |   | 188,727 |   |
| General      and administrative                                                      |   |   | 57,599 |   |   |   | 40,055 |   |   |   | 15,742,261 |   |
| Consultation      fees                                                               |   |   | 149,032 |   |   |   | 44,102 |   |   |   | 847,061 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Expenses                                                                  |   |   | 206,631 |   |   |   | 102,961 |   |   |   | 16,778,049 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      FROM OPERATIONS                                                            |   |   | (206,631 | ) |   |   | (102,961 | ) |   |   | (16,778,049 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      INCOME (EXPENSES)                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                |   |   | (34,389 | ) |   |   | (13,768 | ) |   |   | (220,274 | ) |
| Interest      income                                                                 |   |   | - |   |   |   | - |   |   |   | 1,748 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Other Income (Expenses)                                                   |   |   | (34,389 | ) |   |   | (13,768 | ) |   |   | (218,526 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED      OPERATIONS                                                         |   |   | - |   |   |   | - |   |   |   | (1,149,550 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                                                                        |   | $ | (241,020 | ) |   | $ | (116,729 | ) |   | $ | (18,146,125 | ) |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      LOSS PER SHARE                                                            |   | $ | (0.00 | ) |   | $ | (0.00 | ) |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| BASIC      WEIGHTED AVERAGE NUMBER OF                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|   SHARES      OUTSTANDING                                                  |   |   | 144,123,448 |   |   |   | 119,255,619 |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements. |

----

| W2      ENERGY, INC.                                                                 |                                             |
|--------------------------------------------------------------------------------------|--------------------------------------------------|
| (A      Development Stage Company)                                                   |                                             |
| Statements      of Cash Flows                                                        |                                             |
| (Unaudited)                                                                          |                                             |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   | From      Inception of |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   | the      Development |   |
|                                                                                 |                                             |   | For      the Three Months |   |   | Stage      on October |   |
|                                                                                 |                                             |   | Ended |   |   | 1,      1992 Through |   |
|                                                                                 |                                             |   | March 31, |   |   | March      31, |   |
|                                                                                 |                                             |   | 2008 |   |   | 2007 |   |   | 2008 |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                            |                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                        |                                             | $ |       (241,020 | )  |   | $ |       (116,729 | )  |   | $ |       (18,146,125 | )  |
| Adjustments      to reconcile net loss to                                            |                                             |   |   |   |   |   |   |   |   |   |   |   |
| net      cash used by operating activities:                                          |                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Depreciation      and amortization               |   |   |                147 |   |   |   |                147 |   |   |   |                 1,321 |   |
|                                                                                 | Common      stock issued for services            |   |         140,000 |   |   |   |         203,926 |   |   |   |          5,368,966 |   |
| Changes      in operating assets and liabilities:                                    |                                             |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | (Increase)      decrease in prepaid expenses     |   |             2,961 |   |   |   |         (73,843 | )  |   |   |                (1,394 | )  |
|                                                                                 | Increase      (decrease) in accounts payable and |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | and      accrued expenses                        |   |   |           52,389 |   |   |   |         (61,410 | )  |   |   |            (309,879 | ) |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Net      Cash Used by Operating Activities       |   |         (45,523 | )  |   |   |         (47,909 | )  |   |   |       (13,087,111 | )  |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| INVESTING      ACTIVITIES                                                            |                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Purchase      of equipment                       |   |   |              (890 | )  |   |   |           (2,312 | )  |   |   |              (17,322 | )  |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Net      Cash Used by Investing Activities       |   |              (890 | )  |   |   |           (2,312 | )  |   |   |              (17,322 | )  |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| FINANCING      ACTIVITIES                                                            |                                             |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Stock      offering costs paid                   |   |   |                    - |   |   |   |                    - |   |   |   |              (50,650 | )  |
|                                                                                 | Repayment      of notes payable                  |   |   |         (31,610 | )  |   |   |       (133,175 | )  |   |   |            (166,105 | )  |
|                                                                                 | Common      stock issued for cash                |   |   |           79,843 |   |   |   |                    - |   |   |   |        13,323,037 |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Net      Cash Provided by Financing Activities   |   |           48,233 |   |   |   |       (133,175 | )  |   |   |        13,106,282 |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | NET      INCREASE (DECREASE) IN CASH             |   |             1,820 |   |   |   |       (183,396 | )  |   |   |                 1,849 |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | CASH      AT BEGINNING OF PERIOD                 |   |   |                  29 |   |   |   |         234,361 |   |   |   |                         - |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | CASH      AT END OF PERIOD                       |   | $ |             1,849 |   |   | $ |           50,965 |   |   | $ |                 1,849 |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| The      accompanying notes are an integral part of these financial      statements. |                                             |

----

----

----

|  31.1 |  Certificate      of Principal Executive Officer                                                                                     |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|  31.2 |  Certificate of      Principal Accounting Officer                                                                               |
|  32.1 |  Certification      Pursuant to 18 U.S.C.  1350, as Adopted Pursuant to Section 906      of the Sarbanes-Oxley Act of 2002 |
|  32.2 |  Certification      Pursuant to 18 U.S.C.  1350, as Adopted Pursuant to Section 906      of the Sarbanes-Oxley Act of 2002 |

----

|  W2      ENERGY, INC.    |   |                                                              |
|-------------------------------|--------|-------------------------------------------------------------------|
|  (Registrant)            |   |                                                              |
|                          |   |                                                              |
|                          |   |                                                              |   |
| Date:      May 20, 2008       | By:    | /s/ Michael      McLaren                                     |   |
|                          |   | Michael      McLaren                                              |   |
|                          |   | Principal      Executive Officer                                  |   |
|                          |   |                                                              |   |
|                          |   |                                                              |
|                          |   |                                                              |   |
| Date:      May 20, 2008  | By:    | /s/ Michael      McLaren                                     |   |
|                          |   | Michael      McLaren                                              |   |
|                          |   | Principal      Accounting OfficerPrincipal      Financial Officer |   |
|                          |   |                                                              |   |

|                    |   |                           |
|-------------------------|--------|--------------------------------|
|                    |   |                           |   |
| Date:      May 20, 2008 | By:    | /s/ Michael      McLaren  |   |
|                    |   | Michael      McLaren, Director |   |
|                    |   |                           |   |

|                    |   |                          |
|-------------------------|--------|-------------------------------|
|                    |   |                          |   |
| Date:      May 20, 2008 | By:    | /s/ Ron      Maruszczak  |   |
|                    |   | Ron      Maruszczak, Director |   |
|                    |   |                          |   |

|                    |   |                                   |
|-------------------------|--------|----------------------------------------|
|                    |   |                                   |   |
| Date:      May 20, 2008 | By:    | /s/ Sigmund      Phillipe Friberg |   |
|                    |   | Sigmund      Phillipe Friberg          |   |
|                    |   |                                   |   |
|                    |   |                                   |   |

|                    |   |                          |   |
|-------------------------|--------|-------------------------------|--------|
| Date:      May 20, 2008 | By:    | /s/ Pierre      Besuchet |   |
|                    |   | Pierre      Besuchet          |   |
|                    |   |                          |   |
|                    |   |                          |   |

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