ITEM 6: MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Our plan of operation for the twelve months following the date of this annual report is to continue to review other potential acquisitions in the resource sector. Currently, we are in the process of completing due diligence investigation of various opportunities in the base metal sector and investigating opportunities in the alternative energy and environmental sectors.

On February 12 2008, the Company entered into an Earn-in Arrangement with Da Hua Mining Enterprise Limited ("Da Hua"). Under the terms of the arrangement,
the Company can acquire an initial 48% undivided equity interest in the Lechang Shandmudong Mine ("The Property") located in the Guangdong Province by completing within a 2-year period an investment of RMB25 million (approximately US$3.4
million) in a newly formed Chinese company ("Newco") that will hold the exploration
and production licenses underlying the Property. Of the total RMB25 million invested,
RMB10 million will be expended towards the approval by the Guandong Provincial Bureau of Geology and Mineral Resources and transfer of a 30-year exploration and
Production license underlying the Property into Newco. The balance of RMB15 Million will be utilized by Newco towards exploration, production and development Expenditures on the Property. However, to date, a formal agreement has not been executed.

As well, we anticipate spending an additional $25,000 on administrative fees, including fees we will incur in complying with reporting obligations. Total expenditures over the next 12 months are therefore expected to be $50,000.

While we have enough funds on hand to cover our administrative expenses for the next 4 months, we will need additional funding for the review, acquisition and development of business assets. We anticipate that additional funding will be required in the form of equity financing from the sale of our common stock.

However, we do not have any arrangements in place for any future equity financing.

RESULTS OF OPERATIONS FOR THE FISCAL YEAR ENDED JULY 31, 2008

We did not earn any revenues during the fiscal year ended July 31, 2008. We incurred operating expenses in the amount of $369,352 for the fiscal year. These operating expenses were comprised of consulting fees of $49,916, travel and promotion fees of $49,808, interest expense of $186,858, mineral property costs of $25,137 investor relations fees of $10,000, accounting and audit fees of $22,625, filing and transfer agent fees of $250, legal fees of $2,500, office costs of $21,839 and bank charges of $419.

Our net loss in fiscal 2008 ($369,352) was higher than in fiscal 2007 ($197,161) primarily due to an increase in interest expense ($186,858 in 2008 as compared to $47,370 in 2007), an increase in accounting and audit fees ($22,625 in 2008 as compared to $9,136 in 2007), an increase in mineral property costs ($25,137 in 2008 as compared to $5,000 in 2007), and an increase in office expenses ($21,839 in 2008 as compared to $8,136 in 2007).

We have not attained profitable operations and are dependent upon obtaining financing to pursue future acquisitions. For these reasons, there is substantial doubt that we will be able to continue as a going concern.