ANNUAL REPORT (2005 Financial Results)

Overview

During the year ended December 31, 2005 the Company incurred an operating loss of $206,541 ($0.01 per share) compared to a restated net loss of $407,424 ($0.02 per share for the year ended December 31, 2004). The previously stated net loss for the year ended December 31, 2004 was $382,118. The variance of $25,306 was the inclusion of stocked based compensation in the restated amount. The decrease in fiscal 2005 was mainly as a result of a reduction in consulting fees of $59,530 (2004 - $143,344), a reduction in office and travel of $4,568 (2004 ¡V $79,825), a reduction in stock based compensation of Nil (2004 - $25,306) and a reduction in management fees of $Nil (2004 ¡V $48,000).

Expenses

Expenses totaled $210,881 for the year ended December 31, 2005 compared to $387,774 in the prior year. Details of these some items are as follows:

Consulting fees of $59,530 (2004 - $143,344) were attributed to $22,900 for office administration and accounting services and $30,000 to management fees accrued to a director and an officer of the Company. In 2004 $143,344 was paid to a former officer and former director for management services.

Professional fees of $47,517 (2004 - $43,389) were attributed to $30,017 (2004 - $35,889) for legal affairs of the Company and audit fees of $17,500 (2004 - $7,500) for the annual audit and restatement of prior year.

Office and Travel of $4,568 (2004 - $79,825)

Amortization of $86,724 (2004 ¡V $25,278) for the amortization on the Company's two Web sites it had purchased.

Stock based compensation of $Nil (2004 - $25,306 - restated). There were no options issued in the current year.

Share Structure:

• Shares Outstanding; 22,557,593
• Fully Diluted; 30,490,024
• Institutions Holdings; not known
• Management Holdings; estd 25%