ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion highlights the principal factors that have affected our financial condition and results of operations as well as our liquidity and capital resources for the periods described. This discussion contains forward-looking statements. Please see "Forward-Looking Statements" for a discussion of the uncertainties, risks and assumptions associated with these forward-looking statements.

The following discussion and analysis of the Company's financial condition and results of operations are based on the preparation of our financial statements in accordance with U.S. generally accepted accounting principles. You should read the discussion and analysis together with such financial statements and the related notes thereto.

Results of Operations

Fiscal year Ended January 31, 2009 and 2008

We are still in our exploration stage and have generated no revenues to date.

We incurred total operating expenses of $582,984 and $386,366 for the years ended January 31, 2009 and 2008, respectively. These expenses increased in the fiscal year ended January 31, 2009 primarily as a result of the write off of the entire $557,927 balance of the Loan. General and administrative expenses decreased to $25,057 in the fiscal year ended January 31, 2009 from $386,366 in the fiscal year ended January 31, 2008. These expenses in the fiscal year ended January 31, 2009 consisted primarily of accounting and legal costs relating to the preparation and filing of our periodic reports, while in the fiscal year ended January 31, 2008, they related to the completion of the Merger and its subsequent unwinding.

Our net losses for years ended January 31, 2009 and 2008 were $(582,965) and $(387,922), respectively.

We have generated no revenues and our net operating loss from inception through January 31, 2009 was $(1,021,320).

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Liquidity and Capital Resources

Our cash and cash equivalents balance as of January 31, 2009 was $4,113.

We are a development stage company and currently have no operations.

We do not have sufficient funds on hand to pursue our business objectives for the near future or to commence operations without seeking additional funding. We currently do not have a specific plan of how we will obtain such funding.

We have minimal operating costs and expenses at the present time due to our limited business activities. We will, however, be required to raise additional capital over the next twelve months to meet our current administrative expenses, and, additionally, we may do so in connection with or in anticipation of possible acquisition transactions. This financing may take the form of additional sales of our equity or debt securities or loans from our sole officer or directors. There is no assurance that additional financing will be available, or, if available, that it will be on terms favorable to us.

Our auditors have included an explanatory paragraph in their report on our consolidated financial statements relating to the uncertainty of our business as a going concern, due to our limited operating history, our lack of historical profitability, and our limited funds. We believe that we will be able to raise the required funds for operations and to achieve our business plan.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.