RESULTS OF OPERATIONS

We have generated no revenues since inception and have incurred $886,768 in expenses
from inception through March 31, 2010. We incurred $66,420 and $201,794 in expenses
for the three months ended March 31, 2010 and 2009, respectively. These costs consisted
of sub-contracted general and administrative, engineering and business development
expenses.

The following table provides selected financial data about our company for the three
months ended March 31, 2010.

Balance Sheet Data: March 31, 2010

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Cash $ 82
Total assets $ 415,082
Total liabilities $1,011,850
Shareholders' equity (deficit) $ (596,768)

There was $28,614 cash provided from operating activities for the quarter ended March
31, 2010. From inception, a former director had loaned the company $30,565. The
balance of the loan was written off as at March 31, 2010 and all interest waived. Since
inception, $290,000 has been raised through the issuance of our common stock.

LIQUIDITY AND CAPITAL RESOURCES

Our cash balance at March 31, 2010 was $82. We are a development stage company and
have generated no revenue to date. Although we have been able to secure advances in the
past from directors and officers of the Company there is no assurance that we can secure
additional funding to cover our expenses in the future. We cannot continually incur
operating losses in the future and may decide that we can no longer continue with our
business operations as detailed in our business plan because of a lack of financial results
and a lack of available financial resources. If we are unable to secure adequate capital to
continue, our business will likely fail, and our shareholders could lose some or all of their
investment.