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<div style="display: block; text-indent: 0pt"></div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 1. OVERVIEW AND NATURE OF BUSINESS</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">Endeavor Power Corp. (the “Company”) was incorporated in the State of Nevada on July 6, 2005 under the name VB Biotech Laboratories, Inc.  On September 21, 2007, the Company filed a Certificate of Amendment with the State of Nevada to change its operating name to VB Trade, Inc., with principal business operations to develop an online website that allowed web designers to sell their website designs in exchange for a commission on all products that were sold through the website.  On September 21, 2007, the Company entered into a Plan of Merger (the “Merger”) with Endeavor Uranium, Inc., a mineral exploration company with mineral properties in the northwestern United States. Effectively, the Company changed its name to Endeavor Uranium, Inc. as part of the Merger transaction. On December 23, 2008, the Company entered into a Joint Venture Agreement (the “Agreement”) with Federated Energy Corporation, a Tennessee corporation, for working interests in prospective oil and gas wells located in Nowata County, Oklahoma. Effectively on December 23, 2008, the Company changed its operating name to Endeavor Power Corp.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">In November, 2010, Management assessed a potential business opportunity and determined that in an effort to create value for its Shareholders, the Company should change its business direction. On November 8, 2010, the Company discontinued its operations in its working interests in oil and gas exploration and changed its operating focus to the development of E-Waste processing services aimed at industrial and government clients. The Company’s new direction sought to limit the impact of discarded “E-Waste” on the environment. Discarded computers and electronic equipment pose environmental hazards.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On May 26, 2011, Mr. Alfonso Knoll resigned from all positions with the Company, including but not limited to, that of President, Chief Executive Officer, Chief Financial Officer, Treasurer and Secretary. The resignation did not involve any disagreement with the Company. On June 8, 2011, the Company entered into a Settlement Agreement and General Mutual Release (“Settlement Agreement”) to terminate Mr. Knoll’s Employment Agreement dated November 8, 2010, and to accept his resignation. Pursuant to the Settlement Agreement, Mr. Knoll immediately ceased all services to the Company and, on June 11, 2011, returned to the Company any and all shares of its common stock then held by him.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On June 2, 2011, Mr. Matthew Carley was appointed as the Company’s President, Chief Executive Officer, Chief Financial Officer, Treasurer, Secretary and Director. Mr. Carley accepted the appointment, but resigned his positions effective September 27, 2011. The Company’s Board of Directors accepted the resignation of Mr. Carley, as well as the resignation of Mr. Keith Kress as a member of the Board of Directors. Simultaneously, Tom Mackay was appointed as the President/Chief Executive Officer, Secretary, Treasurer/Chief Financial Officer and the sole member of the Board of Directors.</font></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">In accordance with a change in management effective September 27, 2011, the Company’s business operations changed. The Company intended to provide managerial services, and pursue potential funding opportunities for the Company. It retained consultants to perform the necessary due diligence on certain mining properties located in Venezuela, Brazil, Bolivia, Guyana and several other South American countries. Management, however, determined that the outcome of such due diligence did not provide the Company a viable opportunity, nor did it provide sufficient economic benefit for the Company. Management has therefore ceased its due diligence and exploration of mining property opportunities, and is pursuing other viable business opportunities to increase shareholder market value.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Going Concern</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has not generated significant revenues to date and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. As at December 31, 2011, the Company had a working capital deficit of $307,578, and an accumulated deficit of $18,397,170. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability to raise equity or debt financing, and the attainment of profitable operations from the Company’s future business. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. </font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Basis of Presentation</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The Company’s fiscal year-end is December 31.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="font: 10pt Times New Roman"><u>Cash
and Cash Equivalents</u></font></div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="font: 10pt Times New Roman"><u> </u></font><br /></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As at December 31, 2011 and 2010, the Company had no cash equivalents.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Use of Estimates</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The preparation of financial statements in conformity with generally accepted accounting principles in the United States and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the valuation of its mineral properties, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.</font></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="display: block; text-indent: 0pt; font-size: 10pt; text-decoration: underline"><br /></div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; font-size: 10pt; text-decoration: underline">Basic and Diluted Net Income (Loss) Per Share<br /></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The Company computes net income (loss) per share in accordance with ASC 260, <font style="display: inline; font-style: italic">Earning per Share</font>. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Comprehensive Loss</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">ASC 220,<font style="display: inline; font-style: italic"> </font><font style="display: inline; font-style: italic">Comprehensive Income,</font> establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at December 31, 2011, the Company has no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Foreign Currency Translation</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC 830 <font style="display: inline; font-style: italic">Foreign Currency Translation Matters,</font> using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Canadian dollars. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Revenue Recognition</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The Company recognizes revenue in accordance with ASC 605, <font style="display: inline; font-style: italic">Revenue Recognition</font>. Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service has been provided, and collectability is reasonably assured.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Property and Equipment</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">Property and equipment is comprised of vehicles and general equipment and are recorded at cost and is depreciated using the straight-line method over the estimated useful lives of three years. Maintenance and repairs are charged to expense as incurred. Significant renewals and betterments are capitalized.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Financial Instruments</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">Pursuant to ASC 820, <font style="display: inline; font-style: italic">Fair Value Measurements and Disclosures</font><font style="display: inline; font-style: italic"> </font>and ASC 825, <font style="display: inline; font-style: italic">Financial Instruments</font>, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 and 825 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 and 825 prioritizes the inputs into three levels that may be used to measure fair value:</font><br />
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left">
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<tr>
<td style="vertical-align: top; width: 5%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: top; width: 8%">
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman"><font style="display: inline">Level 1</font></font></div>
</td>
<td style="vertical-align: top; width: 82%; text-align: justify">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt times new roman">Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.</font></div>
</td>
<td style="text-align: left; vertical-align: top; width: 5%"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr>
<td style="vertical-align: top; width: 5%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: top; width: 8%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: top; width: 82%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: top; width: 5%"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr>
<td style="vertical-align: top; width: 5%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: top; width: 8%">
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman"><font style="display: inline">Level 2</font></font></div>
</td>
<td style="vertical-align: top; width: 82%; text-align: justify">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt times new roman">Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.</font></div>
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<td style="text-align: left; vertical-align: top; width: 5%"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr></table>
<div> </div>
<div> </div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td style="vertical-align: top; width: 5%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: top; width: 8%">
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman"><font style="display: inline">Level 3</font></font></div>
</td>
<td style="vertical-align: top; width: 82%; text-align: justify">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: 10pt times new roman">Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.</font></div>
</td>
<td style="text-align: left; vertical-align: top; width: 5%"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr></table>
</div>
</div>
<div style="display: block; text-indent: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The Company’s financial instruments consist principally of cash, accounts payable, and accrued liabilities. Pursuant to ASC 820 and 825, the fair value of cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Stock-Based Compensation</font></font><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The Company records stock-based compensation in accordance with ASC 718, <font style="display: inline; font-style: italic">Share-Based Payments</font>, using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Recently Adopted Accounting Standards</font>: The Company evaluates the pronouncements of various authoritative accounting organizations, primarily the Financial Accounting Standards Board (“FASB”), the US Securities and Exchange Commission (“SEC”), and the Emerging Issues Task Force (“EITF”), to determine the impact of new pronouncements on US GAAP and the impact on the Company. The Company has adopted the following new accounting standards during 2011:</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
</div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
<div style="text-align: justify; display: block; margin-left: 18pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-style: italic">ASU No. 2010-13:</font> Issued in April 2010, ASU No. 2010-13 clarifies the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 18pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"> <font style="display: inline; font-style: italic">ASU 2010-29: </font>Issued in December 2010, ASU 2010-29 requires a public entity to disclose pro forma information for business combinations that occurred in the current reporting period. The disclosures include pro forma revenue and earnings of the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period. This ASU will be 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, 2010, with early adoption permitted.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
</div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; text-decoration: underline">Recently Issued Accounting Standards Updates:</font> The following accounting standards updates were recently issued and have not yet been adopted by the Company. These standards are currently under review to determine their impact on the Company’s consolidated financial position, results of operations, or cash flows.</font></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="display: block; text-indent: 0pt"><br />
</div>
</div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
<div style="text-align: justify; display: block; margin-left: 18pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-style: italic">Trouble Debt Restructuring:</font> Issued in April, 2011, ASU 2011-02 clarifies which loan modifications constitute troubled debt restructurings. It is intended to assist creditors in determining whether a modification of the terms of a receivable meets the criteria to be considered a troubled debt restructuring, both for purposes of recording an impairment loss and for disclosure of troubled debt restructurings. The new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructurings occurring on or after the beginning of the fiscal year of adoption. Early adoption is permitted.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 18pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-style: italic">Comprehensive Income</font>: Issued in June, 2011, ASU 2011-05 eliminates the current option to present other comprehensive income and its components in the statement of changes in equity. It will require companies to report the total of comprehensive income including the components of net income and the components of other comprehensive income in either a single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments in the ASU are effective for interim and annual periods beginning on or after December 15, 2011, and should be applied retrospectively. Early adoption is permitted.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 18pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-style: italic">Intangibles:</font> Issued in September, 2011, ASU 2011-08<font style="display: inline; font-style: italic"> </font>permits entities to first perform a qualitative assessment to determine whether it is more likely than not (a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. If the entity determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, it would then perform the first step of the goodwill impairment test; otherwise, no further impairment test would be required. The amendments will be effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 18pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman"><font style="display: inline; font-style: italic">Disclosures about Offsetting Assets and Liabilities</font>: Issued in December, 2011, ASU 2011-11 requires disclosures to provide information to help reconcile differences in the offsetting requirements under U.S. GAAP and IFRS. The differences in the offsetting requirements account for a significant difference in the amounts presented in statements of financial position prepared in accordance with U.S. GAAP and IFRS for certain entities. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
</div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">There were other various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries. None of the updates are expected to a have a material impact on the Company’s consolidated financial position, results of operations or cash flows.</font></div></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 3. PROPERTY AND EQUIPMENT</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">Property and Equipment consists of the following:</font></div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td style="vertical-align: bottom; width: 60%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 16%; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">December 31, 2011</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 16%; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">December 31, 2010</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 60%">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">General Equipment</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="display: inline; font: 10pt times new roman">2,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="display: inline; font: 10pt times new roman">2,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 60%; padding-bottom: 2px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Automobiles</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">11,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">11,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 60%">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Sub-Total</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="display: inline; font: 10pt times new roman">13,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="display: inline; font: 10pt times new roman">13,500</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 60%; padding-bottom: 2px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Accumulated Deprecation</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(5,153 </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(653 </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 60%; padding-bottom: 4px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Property and Equipment, Net</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 15%; border-bottom: black 4px double; text-align: right"><font style="display: inline; font: 10pt times new roman">8,347</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 15%; border-bottom: black 4px double; text-align: right"><font style="display: inline; font: 10pt times new roman">12,487</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">Depreciation expense totaled $4,500 and $653 for the years ended December 31, 2011 and 2010, respectively.</font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 5. NOTES AND LOANS PAYABLE</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td>
<div style="text-align: justify"><font style="display: inline; font: 10pt Times New Roman">In June, 2010, the Company issued a note payable in the principal amount of $9,075 to a non-related party. Under the terms of the note, the amount is unsecured, non-interest bearing, and due upon demand.</font></div>
</td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" style="font: 10pt times new roman; width: 100%; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td>
<div style="text-align: justify"><font style="display: inline; font: 10pt Times New Roman">In June, 2010, the Company issued a note payable in the principal amount of $10,000 to a non-related party. Under the terms of the note, the amount is unsecured, accrues interest at a rate of 8% per annum, and is due upon demand.  As of December 31, 2011, the Company has recorded $1,412 in interest as an accrued expense.</font></div>
</td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" style="font: 10pt times new roman; width: 100%; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td>
<div style="text-align: justify"><font style="display: inline; font: 10pt Times New Roman">On April 21, 2011, the Company issued a note payable in the principal amount of $65,000 to a non-related party. The note is unsecured, bears interest at a rate of 10% per annum, and is due upon demand. As of December 31, 2011, the Company has recorded $6,179 in interest as an accrued expense.</font></div></td></tr></table></div>
<div style="display: block; text-indent: 0pt"></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 6. RELATED PARTY PAYABLE</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">As at December 31, 2011, related party payable consists of $108,349 representing miscellaneous operating expenses paid on behalf of the Company by certain related parties. The amounts owing are unsecured, non-interest bearing, and due upon demand.</font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 7. NOTES PAYABLE – RELATED PARTY</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On August 25, 2009, the Company issued a convertible promissory note (the “Note”) of $826,541 to a related party to settle outstanding debt obligations owing as of the issuance date. Under the terms of the Note, the amount owing accrues interest at a rate of 10% per annum, was due August 25, 2011, and contained certain provisions to convert the debt into common shares of the Company.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On June 17, 2010, the Company issued the related party 375,000 common shares to settle $75,000 of the outstanding Note, reducing the principal balance to $751,541.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">In September, 2010, the Company issued the related party 140,000,000 common shares to settle $500,000 of the Note, reducing the principal balance to $251,541.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On September 17, 2010, the Company amended the Note with the related party to combine the remaining principal of $251,541 with the accrued interest to date of $65,897, for a revised principal balance of $317,438. The new principal balance continues to accrue interest at a rate of 10% per annum, but no longer contains a provision for conversion.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">In November, 2010, the Company received an additional $100,000 from the related party, increasing the principal balance to $417,438.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">As at December 31, 2011, the principal balance of the Note is $417,438. The Company has recorded $74,275 in interest as an accrued expense.</font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 8. COMMON STOCK</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: italic 10pt Times New Roman">All common shares issued for services or settlements of debt are valued based on the end-of-day market prices on the date of issuance, unless otherwise specified.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: italic 10pt Times New Roman">The Company and its Board of Directors authorized a 1:100 reverse common stock split on August 16, 2010, The effects of the reverse stock split resulted in the number of issued and outstanding common stock to decrease from 106,388,200 common shares to 1,063,898 common shares, have been applied on a retroactive basis, and are reflected below where applicable.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The total number of authorized shares of common stock that may be issued by the Company is 250,000,000 with a par value of $0.001 per share.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td>
<div style="text-align: justify"><font style="display: inline; font: 10pt Times New Roman">During the year ended December 31, 2006, the Company issued 325,000,000 founder shares for cash proceeds of $5,000. These shares were cancelled during the year ended December 31, 2007.</font></div>
</td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" style="font: 10pt times new roman; width: 100%; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td>
<div style="text-align: justify"><font style="display: inline; font: 10pt Times New Roman">During the year ended December 31, 2006, the Company issued 513,448 (post-split adjusted) common shares for cash proceeds of $78,991.</font></div>
</td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div>
<table align="center" border="0" cellpadding="0" cellspacing="0" style="font: 10pt times new roman; width: 100%; font-size: 10pt; font-family: times new roman">
<tr style="vertical-align: top">
<td>
<div style="text-align: justify"><font style="display: inline; font: 10pt Times New Roman">In October 2007, the Company issued 140,000 (post-split adjusted) common shares at $0.40 per common share, with a fair value of $5,600,000, to acquire mineral properties.</font></div>
</td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On July 22, 2009, the Company issued 460 (post-split adjusted) common shares of the Company with a fair value of $67,376 to settle debt obligations of $27,500, resulting in a loss on settlement of debt of $39,876.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On July 22, 2009, the Company issued 460 (post-split adjusted) common shares of the Company with a fair value of $67,376 to settle debt obligations of $27,500, resulting in a loss on settlement of debt of $39,876.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On July 22, 2009, the Company issued 1,667 (post-split adjusted) common shares of the Company with a fair value of $245,000 to settle debt obligations of $100,000, resulting in a loss on settlement of debt of $145,000.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On July 22, 2009, the Company issued 100 (post-split adjusted) common shares of the Company with a fair value of $14,700 to settle debt obligations of $12,000, resulting in a loss on settlement of debt of $2,700.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On July 22, 2009, the Company issued 750 (post-split adjusted) common shares of the Company with a fair value of $110,250 to a related party as incentive bonus shares for the conversion of amounts owing into a long-term convertible note payable.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On August 25, 2009, the Company issued 32,000 (post-split adjusted) common shares of the Company for consulting services with a fair value of $3,776,000.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On June 17, 2010, the Company issued 375,000 (post-split adjusted) common shares to a related party for the repayment of payable note payable of $75,000, resulting in a loss on settlement of debt of $180,000. Per the convertible note agreement the Company was to convert the debt at $0.006 per share (post split) for a total issuance of 12,500,000 shares. The additional 25,000,000 shares were issued at the closing price of the stock on the day of issuance resulting in the $180,000 loss.</font></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On September 20, 2010, the Company issued 140,000,000 common shares to settle outstanding notes payable of $500,000 resulting in a loss on settlement of debt of $3,116,667. Per the convertible note agreement the Company was to convert the debt at $0.006 per share (post split) for a total issuance of 83,333,333 shares. The additional 56,666,667 shares were issued at the closing price of the stock on the day of issuance resulting in the $3,166,667 loss.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On November 8, 2010, the Company issued 3,500,000 common shares to the CEO of the Company for management services with a fair value of $910,000. As a result, $906,500 was recorded as paid in capital.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On February 23, 2011, the Company issued 10,000,000 shares of its common stock in exchange for services rendered to the Company, valued at $1,800,000. As a result, $1,790,000 was recorded as paid in capital.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On June 14, 2011, pursuant to the Settlement Agreement related to the resignation of the Company’s former CEO/President, the 3,500,000 shares of common stock previously issued on November 8, 2010, were returned to treasury. As a result, paid in capital was reduced by $3,500.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">As of December 31, 2011, the Company had 151,063,898 common shares issued and outstanding.</font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 9. WARRANTS</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">During the year ended December 31, 2011, the Company had the following share purchase warrants outstanding:</font><br />
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td colspan="14" style="vertical-align: bottom; width: 99%; border-top-style: none; border-top-width: medium; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Outstanding and Exercisable Warrants</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-top-style: none; border-top-width: medium; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr>
<td style="vertical-align: bottom; width: 22%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Number of</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Remaining <br />
Contractual Life</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 16%">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Exercise Price <br />
times Number</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 16%">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Weighted</font></div>
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Average</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr>
<td style="vertical-align: bottom; width: 22%; padding-bottom: 2px">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Exercise Price</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Shares</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">(in years)</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 16%; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">of Shares</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 16%; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Exercise Price</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 22%">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">$0.900</font></div>
</td>
<td style="vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; text-align: center"><font style="display: inline; font: 10pt times new roman"> </font><font style="display: inline; font: 10pt times new roman">500,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 15%; text-align: center"><font style="display: inline; font: 10pt times new roman"> </font><font style="display: inline; font: 10pt times new roman">0.66</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="display: inline; font: 10pt times new roman">450,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 15%; text-align: right"><font style="display: inline; font: 10pt times new roman">0.900</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"> </div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td style="vertical-align: bottom; width: 60%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: left">
<div style="display: block; text-indent: 0pt"><font style="display: inline; font: 10pt times new roman"><br />
</font></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman"> </font></div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">Warrants</font></font></div>
</td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 16%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: left">
<div style="display: block; text-indent: 0pt; text-align: center"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">Number</font></font></font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">of Shares</font></font></div>
</td>
<td style="vertical-align: top; width: 4%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 16%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: center"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">Weighted</font> </font></font></font>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: center">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">Average</font></font></font></div>
<font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">Exercise</font></font></div>
<font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">Price</font></font></td>
<td style="vertical-align: top; width: 1%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 60%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Outstanding at December 31, 2010</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 16%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">500,000</font></div>
</td>
<td style="vertical-align: top; width: 4%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></div>
</td>
<td style="vertical-align: bottom; width: 15%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">0.900</font></div>
</td>
<td style="vertical-align: top; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
</tr><tr style="background-color: white">
<td style="vertical-align: bottom; width: 60%; padding-left: 0pt; margin-left: 9pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 36pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Issued</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 16%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">-</font></div>
</td>
<td style="vertical-align: bottom; width: 4%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
<td style="vertical-align: bottom; width: 15%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">-</font></div>
</td>
<td style="vertical-align: top; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">  </font></td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 60%; padding-left: 0pt; margin-left: 9pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 36pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Exercised</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 16%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">-</font></div>
</td>
<td style="vertical-align: bottom; width: 4%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
<td style="vertical-align: bottom; width: 15%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">-</font></div>
</td>
<td style="vertical-align: top; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
</tr><tr style="background-color: white">
<td style="vertical-align: bottom; width: 60%; padding-left: 0pt; padding-bottom: 2px; margin-left: 9pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 36pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Expired / Cancelled</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 16%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: right">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">-</font></div>
</td>
<td style="vertical-align: bottom; width: 4%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 15%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: right">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">-</font></div>
</td>
<td style="vertical-align: top; width: 1%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 60%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -27pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Outstanding at December 31, 2011</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 16%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: right">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">500,000</font></div>
</td>
<td style="vertical-align: top; width: 4%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: left">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></div>
</td>
<td style="vertical-align: bottom; width: 15%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: right">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">0.900</font></div>
</td>
<td style="text-align: left; vertical-align: top; width: 1%; padding-bottom: 2px">
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman"> </font></div>
</td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The outstanding share purchase warrants expire on August 25, 2012.</font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 10. DISCONTINUED OPERATIONS</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">On November 8, 2010, the Company discontinued all operations related to the former activities of exploring mineral properties. As at November 8, 2010, the Company had no assets or liabilities relating to mineral properties and exploration and did not incur any mineral property or exploration cost during the year 2010 or 2011.</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The results of discontinued operations are summarized as follows:</font></div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"> </div>
<div style="text-align: center">
<table cellpadding="0" cellspacing="0" style="width: 70%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td style="vertical-align: bottom; width: 75%; border-top-style: none; border-top-width: medium; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 3%; border-top-style: none; border-top-width: medium; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 21%; border-top-style: none; border-top-width: medium; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: center">
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: 10pt times new roman">Accumulated</font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: 10pt times new roman">from July 6, 2005 to December 31, 2009</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-top-style: none; border-top-width: medium; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr>
<td style="vertical-align: bottom; width: 75%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Operating expenses:</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 21%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 75%; padding-left: 0pt; margin-left: 9pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Impairment of joint venture costs</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 20%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">609,718</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="vertical-align: bottom; width: 75%; padding-left: 0pt; margin-left: 9pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Impairment of mineral property costs</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">5,600,000</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 75%; padding-left: 0pt; margin-left: 9pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 18pt; text-indent: -9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Mineral property expenditures</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: right"><font style="display: inline; font: 10pt times new roman">382,377</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="vertical-align: bottom; width: 75%; padding-left: 0pt; padding-bottom: 2px; margin-left: 9pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Total expenses</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">6,592,095</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 75%; padding-left: 0pt; padding-bottom: 2px; margin-left: 9pt; text-indent: 0pt; margin-right: 0pt; text-align: left">
<div style="display: block; margin-left: 27pt; text-indent: -9pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman">Net Loss</font></div>
</td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 20%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(6,592,095</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">As at December 31, 2011 and 2010, there were no remaining assets and liabilities of the discontinued mineral properties exploration operation.</font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 11. INCOME TAXES</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The components of the net deferred tax asset at December 31, 2011 and 2010, the statutory tax rate, the effective tax rate and the amount of the valuation allowance are indicated below:</font><br />
</div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="text-align: center">
<table cellpadding="0" cellspacing="0" style="width: 70%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td style="text-align: left; vertical-align: bottom; width: 50%; border-top-style: none; border-top-width: medium; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 3%; border-top-style: none; border-top-width: medium; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 21%; border-top-style: none; border-top-width: medium; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">December 31,</font></div>
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">2011</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-top-style: none; border-top-width: medium; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 3%; border-top-style: none; border-top-width: medium; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 21%; border-top-style: none; border-top-width: medium; border-bottom: black 2px solid">
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">December 31,</font></div>
<div style="text-align: center; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">2010</font></div>
</td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-top-style: none; border-top-width: medium; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr>
<td style="text-align: left; vertical-align: bottom; width: 50%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="text-align: left; vertical-align: bottom; width: 21%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="text-align: left; vertical-align: bottom; width: 21%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Income (Loss) Before Taxes</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman">(1,967,287</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman">(5,129,937</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 2px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Statutory rate</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">34</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman">%</font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">34</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman">%</font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Computed expected tax payable (recovery)</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman">668,878</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman">1,744,179</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Non-deductible expenses</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman">(1,530 </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman">(1,377,620 </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 2px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Change in valuation allowance</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(667,348 </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; border-bottom: black 2px solid; text-align: right"><font style="display: inline; font: 10pt times new roman">(366,559 </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; text-align: left"><font style="display: inline; font: 10pt times new roman">)</font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 20%; text-align: right"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 4px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Reported income taxes</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 20%; border-bottom: black 4px double; text-align: right"><font style="display: inline; font: 10pt times new roman">–</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 3%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 4px double; text-align: left"><font style="display: inline; font: 10pt times new roman">$</font></td>
<td style="vertical-align: bottom; width: 20%; border-bottom: black 4px double; text-align: right"><font style="display: inline; font: 10pt times new roman">–</font></td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; text-align: left"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr></table>
</div>
<div style="display: block; text-indent: 0pt"><font style="display: inline; font: 10pt Times New Roman"> </font></div>
<div style="display: block; text-indent: 0pt"><font style="display: inline; font: 10pt Times New Roman">The significant components of deferred income tax assets and liabilities at December 31, 2011 and 2010 are as follows:</font></div>
<div>
<div> </div>
<div style="text-align: center">
<table cellpadding="0" cellspacing="0" style="width: 70%; font: 10pt times new roman; font-size: 10pt; font-family: times new roman">
<tr>
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 3%; padding-bottom: 2px; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: center"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 21%; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; border-bottom: black 2px solid; text-align: center"><font style="display: inline; font: 10pt times new roman"> </font><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">2011</font></font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td colspan="2" style="vertical-align: bottom; width: 21%; border-bottom: black 2px solid; text-align: center"><font style="display: inline; font: 10pt times new roman"> </font><font style="display: inline; font: 10pt times new roman"><font style="display: inline; font: 10pt times new roman">2010</font></font></td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman">  </font></td>
</tr><tr>
<td style="text-align: left; vertical-align: bottom; width: 50%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 20%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: right; vertical-align: bottom; width: 20%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman"> </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%">
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Net operating loss carried forward</font></div>
</td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">$</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 20%">
<div style="text-align: right; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">5,890,292</font></div>
</td>
<td style="text-align: left; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">$</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 20%">
<div style="text-align: right; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">3,927,505</font></div>
</td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 20%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: right; vertical-align: bottom; width: 20%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 2px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Valuation allowance</font></div>
</td>
<td style="text-align: left; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: right; vertical-align: bottom; width: 20%; border-bottom: black 2px solid">
<div style="text-align: right; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">(5,890,292</font></div>
</td>
<td style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">)</font></div>
</td>
<td style="text-align: left; vertical-align: bottom; width: 3%; padding-bottom: 2px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%; border-bottom: black 2px solid"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: right; vertical-align: bottom; width: 20%; border-bottom: black 2px solid">
<div style="text-align: right; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">(3,927,505</font></div>
</td>
<td style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">)</font></div>
</td>
</tr><tr style="background-color: white">
<td style="text-align: left; vertical-align: bottom; width: 50%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: right; vertical-align: bottom; width: 20%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: right; vertical-align: bottom; width: 20%"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="vertical-align: bottom; width: 1%"><font style="display: inline; font: 10pt times new roman">  </font></td>
</tr><tr style="background-color: #cceeff">
<td style="text-align: left; vertical-align: bottom; width: 50%; padding-bottom: 4px">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">Net deferred income tax asset</font></div>
</td>
<td style="text-align: left; vertical-align: bottom; width: 3%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: black 4px double">
<div style="text-align: left; display: block; margin-left: 9pt; text-indent: -9pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">$</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 20%; border-bottom: black 4px double">
<div style="text-align: right; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">–</font></div>
</td>
<td style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman">  </font></td>
<td style="text-align: left; vertical-align: bottom; width: 3%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman"> </font></td>
<td style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: black 4px double">
<div style="text-align: left; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">$</font></div>
</td>
<td style="text-align: right; vertical-align: bottom; width: 20%; border-bottom: black 4px double">
<div style="text-align: right; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt times new roman">–</font></div>
</td>
<td style="vertical-align: bottom; width: 1%; padding-bottom: 4px"><font style="display: inline; font: 10pt times new roman">  </font></td>
</tr></table>
</div>
</div>
<div style="display: block; text-indent: 0pt"> </div>
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">As at December 31, 2011, the Company had $5,890,292 of net operating losses which expire commencing in the year 2026.</font></div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt; text-align: justify"><font style="display: inline; font: bold 10pt Times New Roman">NOTE 12. SUBSEQUENT EVENTS</font></div>
<div style="display: block; text-indent: 0pt"><br />
</div>
<div style="display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt">
<div style="text-align: justify; display: block; margin-left: 0pt; text-indent: 0pt; margin-right: 0pt"><font style="display: inline; font: 10pt Times New Roman">The Company has evaluated events and transactions that occurred between December 31, 2011 and the date the consolidated financial statements were available for issue, for possible disclosure or recognition in the consolidated financial statements. The Company has determined that there were no such events or transactions that warrant disclosure or recognition in the consolidated financial statements.</font></div></div>
1
3763461
653461
653461
688898
144563898
151063898
1800000
910000
32
3500
10000
3775968
906500
1790000
3776000
1
32000
3500000
10000000
3250000
-3250000
-3500000
3250
-3250
-3500
1750
-1750
3500
5000
-5000
513460
513
78478
78991
140000
140
5599860
5600000
255050
255050
37883
37883
826541
826541
3437
140000000
3616667
3
140000
504698
3476667
504701
375000
255000
375
254625
19667
19667
-92802
-152388
-483981
7900
16667
34155
62085
69296
172394
110250
1800000
910000
6880452
4500
653
5153
688784
826541
-13500
-13500
13500
13500
65000
193690
1489576
83991
264949
65000
19075
84075
174615
1061561
5000
-992095
-609718
-382377
-27802
27802
27802
500000
500000
5600000
151063898
9063834