| U.S. SECURITIES AND EXCHANGE      COMMISSIONWashington,D.C. |
|-------------------------------------------------------------|

| Form 10-Q |
|-----------|

| (Mark one) |
|------------|

| [ X ] | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 for the quarterly period ended September 30,      2008 |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| OR |
|----|

| [ ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 |
|-----|-----------------------------------------------------------------------------------------------|

| Commission File No.  33-19961 |
|-------------------------------|

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

|   | Diamond I, Inc.                                             |   |
|--------|-------------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in      its charter) |   |

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

|   | DELAWARE |   | 01-0623010 |   |
|--------|----------|--------|------------|--------|

|   | (State or Other Jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification Number) |   |
|--------|---------------------------------------------------------------|--------|----------------------------------------|--------|

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

|   | 8733 Siegen Lane, Suite 309, Baton Rouge,      LA 70810 |   |
|--------|---------------------------------------------------------|--------|

|   | (Address of principal executive offices,      including zip code) |   |
|--------|-------------------------------------------------------------------|--------|

|   | (225) 341-4004 |   |
|--------|----------------|--------|

|   | (Issuer’s telephone number, including area      code) |   |
|--------|-------------------------------------------------------------|--------|

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

| Indicate by check mark whether the registrant (1) has filed all      reports required to be filed by Section 13 or 15(d) of the Securities      Exchange Act of 1934 during the preceding 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      [ ] |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Indicate by check mark whether the registrant is a large accelerated      filer, an accelerated filer, a non-accelerated filer, or a smaller      reporting company. See the definitions of "large accelerated filer,"      "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the      Exchange Act. (Check one): |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Large accelerated filer [ ] |   | Accelerated filer [ ] |
|-----------------------------|--------|-----------------------|

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

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

| As of November 17, 2008, there were 464,016,707 shares of the      issuer’s common stock outstanding. |
|-------------------------------------------------------------------------------------------------------------|

| PART I - FINANCIAL  INFORMATION |
|---------------------------------|

| Item 1. Financial Statements |
|------------------------------|

| INDEX TO FINANCIAL  STATEMENTS |
|--------------------------------|

|   | Page |
|--------|------|

| Diamond I,Inc. |
|----------------|

| Condensed Consolidated Balance Sheets as of September 30, 2008      (unaudited), and December 31, 2007 (audited) | 3 |
|------------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statements of Operations for the Three Months      and Nine Months Ended September 30, 2008 (unaudited) and 2007 (unaudited),      and the Period from June 17, 2003 (Inception), Through September 30, 2008      (unaudited) | 4 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statement of Stockholders’ Equity for the Nine      Months Ended September 30, 2008 (unaudited) | 5 |
|------------------------------------------------------------------------------------------------------------------------------|---|

| Condensed Consolidated Statements of Cash Flows for the Nine Months      Ended September 30, 2008 (unaudited) and 2007 (unaudited), and the Period      from June 17, 2003 (Inception), Through September 30, 2008      (unaudited) | 6 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|

| Notes to Condensed Consolidated Financial Statements | 8 |
|------------------------------------------------------|---|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED BALANCE    SHEETS |   |
|--------|------------------------------------------|--------|

|   | September 30, 2008, and December 31,      2007 |   |
|--------|------------------------------------------------|--------|

|   | 9/30/08unaudited |   | 12/31/07 |
|--------|------------------|--------|----------|

| ASSETS |
|--------|

| Current assets |
|----------------|

|   | Cash | $--- |   | $294 |
|--------|------|------|--------|------|

|   | Total current assets | --- |   | 294 |
|--------|----------------------|-----|--------|-----|

| Equipment - net of accumulated depreciation of $102,115 and $100,911,      respectively | --- |   | 1,204 |
|-----------------------------------------------------------------------------------------|-----|--------|-------|

|   | Total assets | $--- |   | $1,498 |
|--------|--------------|------|--------|--------|

| LIABILITIES AND STOCKHOLDERS’ EQUITY      (DEFICIT) |
|-----------------------------------------------------------|

| Current liabilities |
|---------------------|

|   | Accounts payable | $12,877 |   | $4,500 |
|--------|------------------|---------|--------|--------|

|   | Accrued expenses | 110,919 |   | 293,032 |
|--------|------------------|---------|--------|---------|

|   | Short-term payable - third party | 30,400 |   | 30,400 |
|--------|----------------------------------|--------|--------|--------|

|   | Short-term note payable - related party | 23,340 |   | 41,640 |
|--------|-----------------------------------------|--------|--------|--------|

|   | Accrued interest - shareholders | 10,093 |   | 7,582 |
|--------|---------------------------------|--------|--------|-------|

|   | Dividend payable on preferred stock | 127,500 |   | 112,500 |
|--------|-------------------------------------|---------|--------|---------|

|   | Total current liabilities | 315,129 |   | 489,654 |
|--------|---------------------------|---------|--------|---------|

|   | Commitments |   |   |   |
|--------|-------------|--------|--------|--------|

| Stockholders’ equity (deficit) |
|--------------------------------------|

|   | Series A Convertible Preferred Stock, $.001 par value, 50,000,000      shares authorized, 500,000 and -0- Series A shares issued and      outstanding | --- |   | 500 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|-----|--------|-----|

|   | Common stock, $.001 par value; 700,000,000 shares authorized,      464,016,707 and 342,016,707 shares issued and outstanding | 464,017 |   | 342,017 |
|--------|------------------------------------------------------------------------------------------------------------------------------|---------|--------|---------|

|   | Subscription receivable | (128,000) |   | (128,000) |
|--------|-------------------------|-----------|--------|-----------|

|   | Additional paid-in capital | 30,292,658 |   | 29,873,158 |
|--------|----------------------------|------------|--------|------------|

|   | Deficit accumulated during the development stage | (30,943,804) |   | (30,575,831) |
|--------|--------------------------------------------------|--------------|--------|--------------|

|   | Total stockholders’ (deficit) | (315,129) |   | (488,156) |
|--------|-------------------------------------|-----------|--------|-----------|

|   | Total liabilities and stockholders’ equity (deficit) | $--- |   | $1,498 |
|--------|------------------------------------------------------------|------|--------|--------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF      OPERATIONS |   |
|--------|------------------------------------------------------|--------|

|   | For the Three Months and Nine Months Ended      Septmber 30, 2008 and 2007, and the Period from June 17, 2003 (Inception),      Through September 30, 2008 |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Three Months Ended September 30, |   | Nine Months Ended September 30, |   |
|--------|----------------------------------|--------|---------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | 2008(unaudited) |   | 2007(unaudited) |   | Inceptionthrough9/30/2008(unaudited) |
|--------|-------------------|--------|-----------------|--------|-----------------|--------|-----------------|--------|--------------------------------------|

| Revenues | $--- |   | $--- |   | $--- |   | $--- |   | $10,784 |
|----------|------|--------|------|--------|------|--------|------|--------|---------|

| Internet access costs | --- |   | --- |   | --- |   | --- |   | (32,850) |
|-----------------------|-----|--------|-----|--------|-----|--------|-----|--------|----------|

| Gross profit (loss) | --- |   | --- |   | --- |   | --- |   | (22,066) |
|---------------------|-----|--------|-----|--------|-----|--------|-----|--------|----------|

| OPERATING EXPENSES |   |   |   |   |   |   |   |   |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Professional and consulting fees | 107,000 |   | 36,100 |   | 128,000 |   | 285,300 |   | 4,311,672 |
|--------|----------------------------------|---------|--------|--------|--------|---------|--------|---------|--------|-----------|

|   | Compensation expense | 42,887 |   | 75,000 |   | 198,887 |   | 232,200 |   | 5,381,663 |
|--------|----------------------|--------|--------|--------|--------|---------|--------|---------|--------|-----------|

|   | Depreciation and amortization | --- |   | 31,455 |   | 1,204 |   | 110,086 |   | 298,680 |
|--------|-------------------------------|-----|--------|--------|--------|-------|--------|---------|--------|---------|

|   | Impairment loss | --- |   | --- |   | --- |   | --- |   | 17,473,096 |
|--------|-----------------|-----|--------|-----|--------|-----|--------|-----|--------|------------|

|   | General and administrative (excluding professional and consulting      fees, compensation expense, depreciation and impairment loss) | 37,081 |   | 1,808 |   | 37,370 |   | 2,053 |   | 3,424,675 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------|--------|--------|--------|-------|--------|-----------|

|   | Total operating expenses | 186,968 |   | 144,363 |   | 365,461 |   | 629,639 |   | 30,889,786 |
|--------|--------------------------|---------|--------|---------|--------|---------|--------|---------|--------|------------|

| LOSS FROM OPERATIONS | (186,968) |   | (144,363) |   | (365,461) |   | (629,639) |   | (30,091,852) |
|----------------------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|--------------|

| OTHER INCOME (EXPENSE) | (837) |   | --- |   | (2,511) |   | (837) |   | (31,951) |
|------------------------|-------|--------|-----|--------|---------|--------|-------|--------|----------|

| NET LOSS | $(187,805) |   | $(144,363) |   | (367,972) |   | (630,476) |   | $(30,943,803) |
|----------|------------|--------|------------|--------|-----------|--------|-----------|--------|---------------|

| Deemed dividend on preferred stock | $--- |   | $(---) |   | $(---) |   | $(---) |   | $(165,442) |
|------------------------------------|------|--------|--------|--------|--------|--------|--------|--------|------------|

| Cumulative preferred dividends | --- |   | (7,500) |   | (15,000) |   | (22,500) |   | (127,500) |
|--------------------------------|-----|--------|---------|--------|----------|--------|----------|--------|-----------|

| Net Loss Charged to Common Shareholders | $(187,805) |   | $(151,863) |   | $(382,972) |   | $(652,976) |   | $(31,236,745) |
|-----------------------------------------|------------|--------|------------|--------|------------|--------|------------|--------|---------------|

| Net loss applicable to common shareholders |   |   |   |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Basic and diluted | $(0.00) |   | $(0.00) |   | $(0.00) |   | $(0.00) |   |   |
|--------|-------------------|---------|--------|---------|--------|---------|--------|---------|--------|--------|

| Weighted average number of shares outstanding |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|   | Basic and diluted | 450,394,485 |   | 324,883,374 |   | 380,046,335 |   | 310,385,439 |   |   |
|--------|-------------------|-------------|--------|-------------|--------|-------------|--------|-------------|--------|--------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENT OFSTOCKHOLDERS’ EQUITY (DEFICIT) |   |
|--------|-------------------------------------------------------------------------|--------|

|   | For the Nine Months Ended Septmber 30,      2008 (unaudited) |   |
|--------|--------------------------------------------------------------|--------|

|   | Preferred Stock |   | Common Stock |   |
|--------|-----------------|--------|--------------|--------|

|   | Shares |   | Amount |   | Shares |   | Amount |   | Additional Paid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulatedDuring theDevelopmentStage |   | Total |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------------------------------|--------|------------------------|--------|----------------------------------------------|--------|-------|

| Balance, December 31, 2007 | 500,000 |   | $500 |   | 342,016,707 |   | $342,017 |   | $29,873,158 |   | $(128,000) |   | $(30,575,831) |   | $(488,156) |
|----------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|------------|

| Dividend payable on preferred stock | --- |   | --- |   | --- |   | --- |   | (7,500) |   | --- |   | --- |   | (7,500) |
|-------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|--------|-----|--------|-----|--------|---------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (77,265) |   | (77,265) |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|----------|--------|----------|

| Balance, March 31, 2008 | 500,000 |   | $500 |   | 342,016,707 |   | $342,017 |   | $29,865,658 |   | $(128,000) |   | $(30,653,096) |   | $(572,921) |
|-------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|------------|

| Stock issued for bonuses | --- |   | --- |   | 3,000,000 |   | 3,000 |   | 3,000 |   | --- |   | --- |   | 6,000 |
|--------------------------|-----|--------|-----|--------|-----------|--------|-------|--------|-------|--------|-----|--------|-----|--------|-------|

| Stock issued for services | --- |   | --- |   | 9,000,000 |   | 9,000 |   | 9,000 |   | --- |   | --- |   | 18,000 |
|---------------------------|-----|--------|-----|--------|-----------|--------|-------|--------|-------|--------|-----|--------|-----|--------|--------|

| Dividend payable on preferred stock | --- |   | --- |   | --- |   | --- |   | (7,500) |   | --- |   | --- |   | (7,500) |
|-------------------------------------|-----|--------|-----|--------|-----|--------|-----|--------|---------|--------|-----|--------|-----|--------|---------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (102,903) |   | (102,903) |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----------|--------|-----------|

| Balance, June 30, 2008 | 500,000 |   | $500 |   | 354,016,707 |   | $354,017 |   | $29,870,158 |   | $(128,000) |   | $(30,755,999) |   | $(659,324) |
|------------------------|---------|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|------------|

| Cancellation of preferred stock | (500,000) |   | (500) |   | --- |   | --- |   | 500 |   | --- |   | --- |   | --- |
|---------------------------------|-----------|--------|-------|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|

| Stock issued for preferred stock | --- |   | --- |   | 25,000,000 |   | 25,000 |   | (25,000) |   | --- |   | --- |   | --- |
|----------------------------------|-----|--------|-----|--------|------------|--------|--------|--------|----------|--------|-----|--------|-----|--------|-----|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENT OFSTOCKHOLDERS’ EQUITY (DEFICIT) |   |
|--------|-------------------------------------------------------------------------|--------|

|   | For the Nine Months Ended Septmber 30,      2008 (unaudited) |   |
|--------|--------------------------------------------------------------|--------|

|   | Preferred Stock |   | Common Stock |   |
|--------|-----------------|--------|--------------|--------|

|   | Shares |   | Amount |   | Shares |   | Amount |   | Additional Paid-inCapital |   | SubscriptionReceivable |   | DeficitAccumulatedDuring theDevelopmentStage |   | Total |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------------------------------|--------|------------------------|--------|----------------------------------------------|--------|-------|

| Stock issued for accrued salary | --- |   | --- |   | 30,000,000 |   | 30,000 |   | 345,000 |   | --- |   | --- |   | 375,000 |
|---------------------------------|-----|--------|-----|--------|------------|--------|--------|--------|---------|--------|-----|--------|-----|--------|---------|

| Stock issued for consulting services | --- |   | --- |   | 35,000,000 |   | 35,000 |   | 72,000 |   | --- |   | --- |   | 107,000 |
|--------------------------------------|-----|--------|-----|--------|------------|--------|--------|--------|--------|--------|-----|--------|-----|--------|---------|

| Stock issued for cash | --- |   | --- |   | 20,000,000 |   | 20,000 |   | 30,000 |   | --- |   | --- |   | 50,000 |
|-----------------------|-----|--------|-----|--------|------------|--------|--------|--------|--------|--------|-----|--------|-----|--------|--------|

| Net loss | --- |   | --- |   | --- |   | --- |   | --- |   | --- |   | (187,805) |   | (187,805) |
|----------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----------|--------|-----------|

| Balance, September 30, 2008 | --- |   | $--- |   | 464,016,707 |   | $464,017 |   | $30,292,658 |   | $(128,000) |   | $(30,943,804) |   | $(315,129) |
|-----------------------------|-----|--------|------|--------|-------------|--------|----------|--------|-------------|--------|------------|--------|---------------|--------|------------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | CONDENSED CONSOLIDATED STATEMENTS OF CASH      FLOWS |   |
|--------|------------------------------------------------------|--------|

|   | For the Nine Months Ended September 30,      2008 and 2007, and the Period from June 17, 2003 (Inception), Through      September 30, 2008 |   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------|

|   | Nine Months Ended September 30, |   |
|--------|---------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Inception Through 9/30/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|--------------------------------------|

| CASH FLOWS FROM OPERATING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

| Net loss | $(367,972) |   | $(630,476) |   | $(30,943,803) |
|----------|------------|--------|------------|--------|---------------|

|   | Adjustments to reconcile net loss to cash used foroperating activities: |   |   |   |   |   |
|--------|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|

|   | Depreciation and amortization | 1,204 |   | 110,086 |   | 298,680 |
|--------|-------------------------------|-------|--------|---------|--------|---------|

|   | Stock issued for services and bonuses | 131,000 |   | 288,998 |   | 8,407,698 |
|--------|---------------------------------------|---------|--------|---------|--------|-----------|

|   | Stock issued in payment of accrued salary | 375,000 |   | --- |   | 375,000 |
|--------|-------------------------------------------|---------|--------|-----|--------|---------|

|   | Impairment loss and write-down of assets | --- |   | --- |   | 17,473,096 |
|--------|------------------------------------------|-----|--------|-----|--------|------------|

|   | Warrant expense | --- |   | --- |   | 2,200,389 |
|--------|-----------------|-----|--------|-----|--------|-----------|

|   | Donated capital, officers’ salaries | --- |   | --- |   | 279,808 |
|--------|-------------------------------------------|-----|--------|-----|--------|---------|

|   | Loss on debt extinguishment | --- |   | --- |   | 23,000 |
|--------|-----------------------------|-----|--------|-----|--------|--------|

|   | Changes in assets and liabilities: |   |   |   |   |   |
|--------|------------------------------------|--------|--------|--------|--------|--------|

|   | Accrued expenses | (182,113) |   | 189,839 |   | 110,919 |
|--------|------------------|-----------|--------|---------|--------|---------|

|   | Accrued interest | 2,511 |   | --- |   | 10,093 |
|--------|------------------|-------|--------|-----|--------|--------|

|   | Accounts payable | 8,376 |   | 30,400 |   | 12,876 |
|--------|------------------|-------|--------|--------|--------|--------|

| CASH FLOWS USED IN OPERATING ACTIVITIES | (31,994) |   | (11,153) |   | (1,752,244) |
|-----------------------------------------|----------|--------|----------|--------|-------------|

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

| CASH FLOWS FROM INVESTING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

|   | Purchase of equipment | --- |   | --- |   | (102,116) |
|--------|-----------------------|-----|--------|-----|--------|-----------|

| CASH FLOWS USED IN INVESTING ACTIVITIES | --- |   | --- |   | (102,116) |
|-----------------------------------------|-----|--------|-----|--------|-----------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | Nine Months Ended September 30, |   |
|--------|---------------------------------|--------|

|   | (2008)(unaudited) |   | 2007(unaudited) |   | Inception Through 9/30/08(unaudited) |
|--------|-------------------|--------|-----------------|--------|--------------------------------------|

| CASH FLOWS FROM FINANCING ACTIVITIES |   |   |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|

|   | Repayment of related party advances | (18,300) |   | --- |   | (77,300) |
|--------|-------------------------------------|----------|--------|-----|--------|----------|

|   | Proceeds from related party advances | --- |   | --- |   | 100,640 |
|--------|--------------------------------------|-----|--------|-----|--------|---------|

|   | Sale of preferred stock and warrants | --- |   | --- |   | 500,000 |
|--------|--------------------------------------|-----|--------|-----|--------|---------|

|   | Proceeds from exercise of warrants | --- |   | --- |   | 742,400 |
|--------|------------------------------------|-----|--------|-----|--------|---------|

|   | Shareholder contributions to capital | --- |   | 2,220 |   | 5,220 |
|--------|--------------------------------------|-----|--------|-------|--------|-------|

|   | Contract party contributions to capital | --- |   | --- |   | --- |
|--------|-----------------------------------------|-----|--------|-----|--------|-----|

|   | Proceeds from short term payable | --- |   | --- |   | 55,400 |
|--------|----------------------------------|-----|--------|-----|--------|--------|

|   | Sale of common stock, net | 50,000 |   | 10,000 |   | 528,000 |
|--------|---------------------------|--------|--------|--------|--------|---------|

| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 31,700 |   | 12,220 |   | 1,854,360 |
|---------------------------------------------|--------|--------|--------|--------|-----------|

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

| NET CHANGE IN CASH | (294) |   | 1,067 |   | --- |
|--------------------|-------|--------|-------|--------|-----|

| Cash, beginning of period | 294 |   | 35 |   | --- |
|---------------------------|-----|--------|----|--------|-----|

| Cash, end of period | $--- |   | $1,102 |   | $--- |
|---------------------|------|--------|--------|--------|------|

| Supplemental information: |
|---------------------------|

|   | Income taxes paid | $--- |   | $--- |   | $--- |
|--------|-------------------|------|--------|------|--------|------|

|   | Interest paid | $--- |   | $--- |   | $--- |
|--------|---------------|------|--------|------|--------|------|

| Non-cash Investing and FinancingActivities: |
|---------------------------------------------|

|   | Cumulative dividends on preferred stock | $15,000 |   | $22,500 |   | $127,500 |
|--------|-----------------------------------------|---------|--------|---------|--------|----------|

|   | Stock issued in acquisition | $--- |   | $--- |   | $16,687,627 |
|--------|-----------------------------|------|--------|------|--------|-------------|

|   | Stock issued for wi-fi hotspots | $--- |   | $--- |   | $120,900 |
|--------|---------------------------------|------|--------|------|--------|----------|

|   | Warrants issued for patent | $--- |   | $--- |   | $485,133 |
|--------|----------------------------|------|--------|------|--------|----------|

|   | Stock issued for software | $--- |   | $--- |   | $376,000 |
|--------|---------------------------|------|--------|------|--------|----------|

|   | Stock issued for payment of note payable | $--- |   | $--- |   | $25,000 |
|--------|------------------------------------------|------|--------|------|--------|---------|

| The accompanying notes are an integral part of these    statements. |
|---------------------------------------------------------------------|

|   | DIAMOND I, INC. |   |
|--------|-----------------|--------|

|   | (a development stage company) |   |
|--------|-------------------------------|--------|

|   | NOTES TO CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS |   |
|--------|-----------------------------------------------------------|--------|

|   | September 30, 2008(unaudited) |   |
|--------|-------------------------------|--------|

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

| Note 1. Basis of Presentation |
|-------------------------------|

| The condensed consolidated balance sheet as of September 30, 2008,      the statement of revenues and expenses for the three months and nine      months ended September 30, 2008 and 2007, and the period from inception      (June 17, 2003) through September 30, 2008, the statement of stockholders’      equity (deficit) for the nine months ended September 30, 2008, and the      statement of cash flows for the nine months ended September 30, 2008 and      2007, and the period from inception (June 17, 2003) through September 30,      2008, have been prepared by Diamond I, Inc. (together with its      subsidiaries, “Diamond I”) without audit. In the opinion of management,      all adjustments necessary to present fairly the financial position,      results of operations and cash flows of Diamond I at September 30, 2008,      and for all other periods presented, have been made. The results of      operations for interim periods are not necessarily indicative of the      results to be expected for the full year. Certain information and      disclosures normally included in financial statements prepared in      accordance with generally accepted accounting principles have been omitted      in accordance with the Securities and Exchange Commission’s rules for      interim reporting. Accordingly, these financial statements should be read      in conjunction with the financial statements and accompanying notes      thereto in Diamond I’s Annual Report on Form 10-KSB for the fiscal year      ended December 31, 2007. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2. Going Concern |
|-----------------------|

| Diamond I has incurred losses totaling $30,943,803 through September      30, 2008, and had limited working capital at September 30, 2008. Because      of these conditions, Diamond I will require additional working capital to      continue operations and develop the business. Diamond I intends to raise      additional working capital either through private placements, public      offerings and/or bank financing. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| There are no assurances that Diamond I will be able to achieve a      level of revenues adequate to generate sufficient cash flow from      operations or obtain additional financing through private placements,      public offerings and/or bank financing necessary to support Diamond I’s      working capital requirements. To the extent that funds generated from any      private placements, public offerings and/or bank financing are      insufficient, Diamond I will have to raise additional working capital. No      assurance can be given that additional financing will be available, or if      available, will be on terms acceptable to Diamond I. If adequate working      capital is not available Diamond I may not continue its operations or      execute its business plan. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| These conditions raise substantial doubt about Diamond I's ability to      continue as a going concern. The financial statements do not include any      adjustments relating to the recoverability and classification of asset      carrying amounts or the amount and classification of liabilities that      might be necessary should Diamond I be unable to continue as a going      concern. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 3. Capital Stock |
|-----------------------|

| Stock for Services, Salary andBonuses |
|---------------------------------------|

| During the first nine months of 2008, Diamond I issued a total of      44,000,000 shares of common stock to consultants, of which 8,000,000      shares were issued to a director of Diamond I in his role as a consultant      and 36,000,000 shares were issued to third parties, for services,      resulting in $125,000 in non-cash compensation expense included in      professional and consulting fees in the accompanying statement of revenues      and expenses. During the first nine months of 2007, Diamond I issued a      total of 22,640,000 shares of common stock to third-party consultants for      services, resulting in $284,798 in non-cash compensation expense included      in professional and consulting fees in the accompanying statement of      revenues and expenses. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first nine months of 2008, Diamond I issued a total of      3,000,000 shares of common stock valued at $6,000 as bonuses to certain of      its directors. During the first nine months of 2007, Diamond I issued a      total of 200,000 shares of common stock valued at $4,200 as bonuses to      certain of its directors. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| During the first nine months of 2008, Diamond I issued a total of      30,000,000 shares of common stock in payment of $375,000 in accrued and      unpaid salaries of two of its officers. During the first nine months of      2007, Diamond I issued a total of 16,162,951 shares of common stock in      payment of $339,422 in accrued and unpaid salaries of two of its      officers. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Diamond I measured the transactions at the respective dates of      issuance at the then-quoted market price. There are no performance      commitments or penalties for non-performance, therefore Diamond I recorded      the expense at the date of issuance. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 4. Sale of Common Stock |
|------------------------------|

| In July 2008, Diamond I sold 20,000,000 shares of its common stock in      a private offering to unrelated third parties for $50,000 in  cash. |
|------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 5. Purchase of Preferred Stock |
|-------------------------------------|

| In July 2008, Diamond I purchased all 500,000 shares of its      then-outstanding Series A preferred stock, by the issuance of 25,000,000      shares of its common stock. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 6. U.S. BioFuels Exchange, LLC(“US-BX”) |
|----------------------------------------------------------|

| Diamond I has established an Internet site, www.us-bx.com, on which      it intends to establish the US-BX, a new biofuels marketplace. The web      site has been completed, mock trading has begun and live, real-time      trading of biofuels will begin in the near future. Diamond I will derive      revenues from transaction fees charged with respect to each trade on the      US-BX. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 2. Management’s Discussion and Analysis of Financial Condition      and Results of Operations. |
|-----------------------------------------------------------------------------------------------------------|

| General |
|---------|

| References to “us”, “we” and “our” include our subsidiaries, Diamond      I Technology, Inc. and U.S. BioFuels Exchange, LLC, unless otherwise      indicated. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Certain statements contained herein are not based on historical facts      and are "forward-looking statements" within the meaning of Section 21A of      the Securities Exchange Act of 1934. Forward-looking statements which are      based on various assumptions (some of which are beyond the Company's      control), may be identified by reference to a future period or periods, or      by the use of forward-looking terminology, such as "may," "will,"      "believe," "expect," "estimate," "anticipate," "continue," or similar      terms or variations on those terms, or the negative of these terms. Actual      results could differ materially from those set forth in forward-looking      statements, due to a variety of factors, including, but not limited to,      events that deprive us of the services of our president and largest      shareholder, David Loflin, whether we are able to obtain adequate capital      with which to pursue our full business plan; and other uncertainties, all      of which are difficult to predict and many of which are beyond our      control. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| We do not undertake, and specifically disclaim any obligation, to      publicly release the result of any revisions which may be made to any      forward-looking statements to reflect the occurrence of anticipated or      unanticipated events or circumstances after the date of such      statements. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Current Business Activities |
|-----------------------------|

| Until June 2008, we actively pursued the development of our online      casinos that we designed to produce revenues by click-through advertising.      We also had conducted, until June 2008, wireless gaming and oil and gas      business development activities. Our wireless gaming and oil and gas      endeavors lacked needed capital and we had determined to pursue these      business opportunities only at such time as we obtain the capital      necessary to do so. Our strategy to derive click-through advertising      revenues from our online casinos appears to have been capable of success,      following the launch of IslandBlueCasino.net and VegasBetLive.com.      However, following the addition of Thomas Gray to our board of directors,      it was determined that we would pursue Mr. Gray’s vision of an online      biofuels exchange, rather than to continue to pursue our other business      interests. In June 2008, we announced that our company would pursue the      establishment of the U.S. BioFuels Exchange (the  “US-BX”). |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The US-BX |
|-----------|

| We have established an Internet site, www.US-BX.com. We are nearly      ready to launch this new biofuels marketplace. The US-BX is designed to      bring to the presently chaotic biofuels marketplace an orderly and      efficient matching of producers and other sellers with buyers, using the      Internet, in a manner similar to the model currently employed by      eBay.com. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The US-BX is expected to open for trading in December 2008. Because      the US-BX is a new venture, there is no assurance that it will be      successful. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| The US-BX is to be the first and only Internet marketplace for all      current and future biofuels and biofuel products, which include biodiesel      (in all of its forms) and ethanol. Biofuel producers and other sellers      will list their biofuel quantities and desired pricing directly on the      US-BX web site. Then, buyers will buy or bid on these listed biofuel      quantities. It is intended that the US-BX will charge a fee on every      transaction between sellers and buyers. The US-BX expects that it will, in      the long-term, assist in bringing market order to a large, fast-growing      and chaotic marketplace, by offering a venue that will facilitate national      pricing, among other things, for biofuels and biofuel products. The US-BX      will be dynamic. Biofuels producers and other sellers will be able to      update, in real time, their available quantities, as well as pricing, as      often as desired. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Through a private offering of securities, we were able to obtain      $50,000 for the establishment of the US-BX, which amount is adequate to      complete the design and software engineering of the US-BX web site and to      begin the marketing of the online biofuelsexchange. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Critical Accounting Policies |
|------------------------------|

| While we believe that the factors considered provide a meaningful      basis for the accounting policies applied in the preparation of the      consolidated financial statements, we cannot guarantee that our estimates      and assumptions will be accurate. If such estimates and assumptions prove      to be inaccurate, we may be required to make adjustments to these      estimates in future periods. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Revenue      Recognition. We charge our customers service fees for Internet      access and recognize the revenue in the month the services are      provided. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Litigation and Tax      Assessments. Should we become involved in lawsuits, we intend to      assess the likelihood of any adverse judgments or outcomes of any of these      matters as well as the potential range of probable losses. A determination      of the amount of accrual required, if any, for these contingencies will be      made after careful analysis of each matter. The required accrual may      change from time to time, due to new developments in any matter or changes      in approach (such as a change in settlement strategy) in dealing with      these matters. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Additionally, in the future, we may become engaged in various tax      audits by federal and state governmental authorities incidental to our      business activities. We anticipate that we will record reserves for any      estimated probable losses for any suchproceeding. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Stock-Based      Compensation. We account for stock-based compensation based on the      provisions of Statement of Financial Accounting Standards No. 123. In      December 2004, the Financial Accounting Standards Board issued Statement      of Financial Accounting Standards No. 123 (Revised 2004), Share-Based      Payment, (FAS-123R). This statement replaces FAS-123, Accounting for      Stock-Based Compensation, supersedes APB Opinion No. 25, Accounting for      Stock Issued to Employees, and amends FAS-95, Statement of Cash Flows.      FAS-123R requires companies to apply a fair-value-based measurement method      in accounting for share-based payment transactions with employees and to      record compensation cost for all stock awards granted after the required      effective date and for awards modified, repurchased or cancelled after      that date. The scope of FAS-123R encompasses a wide range of share-based      compensation arrangements, including share options, restricted share      plans, performance-based awards, share appreciation rights and employee      share purchase plans. FAS-123R was effective for us on January 1,      2006. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| New Accounting      Pronouncements. In September 2006, the Financial Accounting      Standards Board (“FASB”) issued Statement of Financial Accounting      Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS 157”). SFAS      157 defines fair value, establishes a framework for measuring fair value      in accordance with generally accepted accounting principles, and expands      disclosures about fair value measurements. SFAS 157 is effective January      1, 2008. We do not believe this statement will adversely impact our      financial statements. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In February 2007, the FASB issued SFAS No. 159, The Fair Value Option      for Financial Assets and Financial Liabilities, which 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. SFAS No. 159 applies      to all entities and is effective for fiscal years beginning after November      15, 2007. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In December 2007, the FASB issued SFAS No. 141 (revised 2007),      “Business Combinations” (“SFAS No. 141R”), which establishes principles      and requirements for how the acquirer shall recognize and measure in its      financial statements the identifiable assets acquired, liabilities      assumed, any noncontrolling interest in the acquiree and goodwill acquired      in a business combination. SFAS No. 141(R) is effective for business      combinations for which the acquisition date is on or after the beginning      of the first annual reporting period beginning on or after December 15,      2008. The Company is currently assessing the potential impact that the      adoption of SFAS No. 141(R) will have on its financial position and      results of operations. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Results of Operations |
|-----------------------|

| Three Months Ended      September 30, 2008, vs. Three Months Ended September 30,    2007. |
|-------------------------------------------------------------------------------------------|

| Revenues. We did not generate any revenues during either the 2008 or      the 2007 three month period ended September 30. During the 2008 period, we      began to pursue the development of the US-BX. The US-BX web site has been      substantially completed and we expect that “live” biofuels trading will      begin during December 2008. We cannot predict the level of revenues we      will derive from the US-BX. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Expenses. Our operating expenses during the three months ended      September 30, 2008, were $186,968, up from $144,363 for the prior year’s      three month period. Our non-cash operating expenses, which include stock      issued for services and for bonuses, accrued salaries and depreciation and      amortization, totalled $149,887 and $67,555, for the three month periods,      respectively. In addition, in the current period, we issued a total of      30,000,000 shares in payment of $375,000 in accrued salary to two of our      officers. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| First Nine Months      2008 vs. First Nine Months 2007 |
|--------------------------------------------------------|

| Revenues. We generated no revenues during the First Nine Months 2008.      We did not have any revenue during the Nine Months of 2007. We expect that      the US-BX will begin to derive revenues from operations during the fourth      quarter of 2008. However, there is no assurance that this will be the      case. Further, if the US-BX does begin to produce revenues from      operations, we cannot predict the amount ofrevenues. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Expenses. Our operating expenses during the First Nine Months 2008      were $365,461 compared to $629,639 for the First Nine Months 2007. Our      non-cash operating expenses, which include stock issued for services,      accrued salaries and depreciation and amortization, totalled $328,091 for      the First Nine Months 2008 compared to $399,084 for the First Nine Months      2007. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Until we obtain sufficient operating capital, it can be expected that      we will issue shares of our common stock to third-parties in payment of      services rendered on our behalf. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Financial Condition |
|---------------------|

| We have incurred losses from inception of $30,943,803 and we have      lacked adequate capital with which to accomplish our business objectives.      At September 30, 2008, we had a working capital deficit of $315,129 and we      remain substantially illiquid. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In August 2008, we obtained $50,000, pursuant to a private offering.      $40,000 of these funds is to be applied to the establishment of the US-BX,      while the remaining $10,000 is to be used for working  capital. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Our Capital Needs |
|-------------------|

| We believe that our current level of operations can be maintained for      the next twelve months. We anticipate our capital needs will be met      through the sale of shares for cash, exercise of options and issuance of      shares for services. However, to achieve our complete business plan for      the US-BX, we must obtain an additional $200,000. To date, we have not      received a commitment for additional capital in any amount and we cannot      assure you that we will be able to obtain any additional capital. Should      we fail to obtain such financing, our plan of business would likely be      unsuccessful and we may be forced to ceaseoperations. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Capital Expenditures |
|----------------------|

| During the First Nine Months 2008 and the First Nine Months 2007, we      made no our capital expenditures. |
|-------------------------------------------------------------------------------------------------------------|

| Item 3. Quantitative and Qualitative Disclosures About Market      Risk. |
|--------------------------------------------------------------------------|

| Not applicable. |
|-----------------|

| Item 4T. Controls and Procedures. |
|-----------------------------------|

| Evaluation of Controls and Procedures |
|---------------------------------------|

| As of September 30, 2008, an evaluation was performed by our      President and Acting Chief Financial Officer of the effectiveness of the      design and operation of our disclosure controls and procedures. Based on      that evaluation, our management, including our President and Acting Chief      Financial Officer, concluded that our disclosure controls and procedures      were not effective as of September 30, 2008. Our evaluation identified      deficiencies related to the accuracy and completeness of our accounting      records and disclosures resulting in substantial adjustments identified by      our independent auditors. These deficiencies are due to the limited      resources currently available to the company. Management is making efforts      to utilize its resources more effectively to eliminate these deficiencies      until the company is able to obtain sufficient funds for business      development, including improvements in internal controls and procedures.      There have been no significant changes in our internal controls or in      other factors that could significantly affect internal controls subsequent      to September 30, 2008. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Management’s Assessment of Internal Controls Over Financial      Reporting |
|----------------------------------------------------------------------------------|

| Our management is responsible for establishing and maintaining      adequate internal control over financial reporting. Internal control over      financial reporting is defined in Rules 13a-15(f) and 15d-15(f) under the      Securities Exchange Act. Our management assessed the effectiveness of our      internal control over financial reporting as of September 30, 2008, using      the framework set forth in Internal Control-Integrated Framework issued by      the Committee of Sponsoring Organizations of the Treadway Commission.      Based upon this assessment, our management concluded that, as of September      30, 2008, our internal control over financial reporting was not effective.      Due to our lack of capital, our management determined that our control      environment, risk assessment functions, control activities, information      and communication functions and monitoring systems were not      effective. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| PART II - OTHER INFORMATION |
|-----------------------------|

| Item 1. Legal Proceedings. |
|----------------------------|

| We are not currently involved in any legal  proceedings. |
|----------------------------------------------------------|

| Item 2. Unregistered Sales of Equity Securities and Use of      Proceeds. |
|---------------------------------------------------------------------------|

| None. |
|-------|

| Item 3. Defaults upon SeniorSecurities. |
|-----------------------------------------|

| None. |
|-------|

| Item 4. Submission of Matters to a Vote of Security  Holders. |
|---------------------------------------------------------------|

| No matter was submitted to our shareholders, during the three months      ended September 30 2008. |
|----------------------------------------------------------------------------------------------------|

| Item 5. Other Information. |
|----------------------------|

| None. |
|-------|

| Item 6. Exhibits. |
|-------------------|

|   | Exhibit No. |   | Description |
|--------|-------------|--------|-------------|

|   | 31.1 * |   | Certification of Chief Executive Officer required by Rule 13a-14(a)      or Rule 15d-14(b) |
|--------|--------|--------|--------------------------------------------------------------------------------------------|

|   | 31.2 * |   | Certification of Chief Accounting Officer required by Rule 13a-14(a)      or Rule 15d-14(b) |
|--------|--------|--------|---------------------------------------------------------------------------------------------|

|   | 32.1 * |   | Certification of Chief Executive Officer Pursuant to 18 U.S.C.      Section 1350 |
|--------|--------|--------|----------------------------------------------------------------------------------|

|   | 32.1 * |   | Certification of Chief Accounting Officer Pursuant to 18 U.S.C.      Section 1350 |
|--------|--------|--------|-----------------------------------------------------------------------------------|

|   | * filed herewith. |
|--------|-------------------|

| SIGNATURES |
|------------|

| In accordance with the requirements of the Securities Exchange Act of      1934, Registrant has duly caused this report to be signed on its behalf by      the undersigned, hereunto duly authorized. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| Date: November 19, 2008. | DIAMOND I, INC. |
|--------------------------|-----------------|

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

|   | By: | /s/ DAVID LOFLIN |   |
|--------|-----|------------------|--------|

|   | David Loflin |   |
|--------|--------------|--------|

|   | President and Acting Chief FinancialOfficer |
|--------|---------------------------------------------|