<BODY>

<FONT FACE="Arial" SIZE=2>
<P ALIGN="CENTER">AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JULY
14, 2008</P>
<P ALIGN="RIGHT">Registration No. 333-___________</P>
<P ALIGN="CENTER">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</P>
</FONT><B><FONT FACE="Arial"><P ALIGN="CENTER">FORM S-1</P>
</B></FONT><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Registration Statement<BR>
Under the Securities Act of 1933</P>
</FONT><B><FONT FACE="Arial" SIZE=5><P ALIGN="CENTER">SANTOS RESOURCE CORP.</B></FONT><FONT FACE="Arial" SIZE=2><BR>
(Exact name of Registrant as specified in its charter)</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=609>
<TR><TD WIDTH="31%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"><BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nevada&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
(State or Other Jurisdiction of Incorporation or Organization)</FONT></TD>
<TD WIDTH="37%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"><BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</U>(Primary Standard Industrial Classification Code Number)</FONT></TD>
<TD WIDTH="31%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"><BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98-0507846&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
(I.R.S. Employer <BR>
Identification No.)</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">11450 - 201A Street<BR>
Maple Ridge, British Columbia <BR>
Canada  V2X 0Y4 <BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telephone No.:  (604) 460-8440&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</U>(Address and telephone number of principal executive office)</P>
<P ALIGN="CENTER">Business First Formations, Inc.<BR>
3990 Warren Way<BR>
Reno, Nevada<BR>
USA  89509<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telephone No.:  (775) 338-2598&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
(Name, address and telephone number of agent for service)</P>
<P ALIGN="CENTER">Copies of all communications, including all communications sent<BR>
to the agent for service, should be sent to:</P>
<P ALIGN="CENTER">Fraser and Company LLP<BR>
999 West Hastings Street, Suite 1200<BR>
Vancouver, British Columbia<BR>
Canada  V6C 2W2 <BR>
Telephone No.:  (604) 669-5244<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facsimile No.:  (604) 669-5791&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</U><P>Approximate date of proposed sale to the public:  As soon as practicable after this Registration Statement becomes effective.</P>
<P ALIGN="JUSTIFY">If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.  <FONT FACE="Wingdings">&#253;</FONT>
</P>
<P ALIGN="JUSTIFY">If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. <FONT FACE="Wingdings">&#114;</FONT>
</P>
<P ALIGN="CENTER">1</P>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<P ALIGN="JUSTIFY">If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. <FONT FACE="Wingdings">&#114;</FONT>
</P>
<P ALIGN="JUSTIFY">If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. <FONT FACE="Wingdings">&#114;</FONT>
</P>
<P ALIGN="JUSTIFY">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=638>
<TR><TD WIDTH="54%" VALIGN="TOP"><DIR>

<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Large accelerated filer <FONT FACE="Wingdings">&#114;</FONT>
</DIR>
</FONT></TD>
<TD WIDTH="46%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Accelerated filer <FONT FACE="Wingdings">&#114;</FONT>
</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP"><DIR>

<FONT FACE="Arial" SIZE=2><P>Non-accelerated filer <FONT FACE="Wingdings">&#114;</FONT>
<BR>
(Do not check if a smaller reporting company)</DIR>
</FONT></TD>
<TD WIDTH="46%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Smaller reporting company <FONT FACE="Wingdings">&#253;</FONT>
</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
Calculation Of Registration Fee</p>
<div align="center">
	<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">

			<tr>
				<td width="19%" valign="bottom" style="width:19.4%;border:solid windowtext .5pt;
   padding:0in 5.4pt 0in 5.4pt">
				<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Title
				of Each Class of Securities to be Registered</font></td>
				<td width="19%" valign="bottom" style="width: 19.4%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
				<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Amount
				to be Registered</font></td>
				<td width="19%" valign="bottom" style="width: 19.4%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
				<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
				Proposed Maximum Offering Price per Share</font></td>
				<td width="22%" valign="bottom" style="width: 22.38%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
				<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
				Proposed Maximum Aggregate Offering Price</font></td>
				<td width="19%" valign="bottom" style="width: 19.4%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
				<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Amount
				of Registration Fee</font></td>
			</tr>

		<tr>
			<td width="19%" valign="top" style="width: 19.4%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Common</font></td>
			<td width="19%" valign="top" style="width: 19.4%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
			13,836,500</font></td>
			<td width="19%" valign="top" style="width: 19.4%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">$0.25</font></td>
			<td width="22%" valign="top" style="width: 22.38%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
			$3,459,125</font></td>
			<td width="19%" valign="top" style="width: 19.4%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">$135.94</font></td>
		</tr>
	</table>
</div>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Up to
13,836,500 shares of our common stock may be sold by the selling shareholders to
the public at a fixed price of $0.25 per share until such time as the shares of
our common stock are quoted on the NASD Over-the-Counter Bulletin Board (&quot;OTCBB&quot;)
or listed on an exchange.&nbsp; Although we intend to apply for quotation of our
common stock on the OTCBB, public trading of our common stock may never
materialize.&nbsp; If our common stock becomes quoted on the OTCBB, then the sale
price to the public will vary according to prevailing market prices or privately
negotiated prices by the selling shareholders.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The Company
hereby amends this registration statement on such date or dates as may be
necessary to delay its effective date until the Company shall file a further
amendment which specifically states that this registration statement shall
thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the registration statement shall become effective on such
date as the Commission, acting pursuant to said Section 8(a), may determine.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
(COVER CONTINUED ON FOLLOWING PAGES)</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
2</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" align="center" style="text-align:center"><b>
Prospectus, Subject to Completion, Dated ________________ , 2008</b></p>
</FONT>

<FONT FACE="Arial" SIZE=5>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>Santos Resource Corp.<br>
</b></FONT>

<FONT FACE="Arial" SIZE=2>13,836,500 shares of Common Stock at $0.25 per share</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">This
prospectus relates to the resale, from time to time, of up to 13,836,500 shares
of our common stock by the selling shareholders named in the &quot;Selling
Shareholders&quot; section of this prospectus.&nbsp; Santos Resource Corp. will not
receive any proceeds from this offering and has not made any arrangements for
the sale of these securities.&nbsp; See &quot;Risk Factors&quot; commencing on page 8 for a
full discussion of the risks involved in this offering.</p>
<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">

		<tr>
			<td width="14%" valign="bottom" style="width:14.92%;border:solid windowtext .5pt;
   padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="26%" valign="bottom" style="width: 26.86%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><b><font size="2">
			Offering Price</font></b></td>
			<td width="29%" valign="bottom" style="width: 29.86%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><b><font size="2">
			Commissions</font></b></td>
			<td width="28%" valign="bottom" style="width: 28.36%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><b><font size="2">
			Proceeds to Selling Shareholders</font></b></td>
		</tr>

	<tr>
		<td width="14%" valign="top" style="width: 14.92%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><b><font size="2">Per Share</font></b></td>
		<td width="26%" valign="top" style="width: 26.86%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">$0.25</font></td>
		<td width="29%" valign="top" style="width: 29.86%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">n/a</font></td>
		<td width="28%" valign="top" style="width: 28.36%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">$0.25</font></td>
	</tr>
	<tr>
		<td width="14%" valign="top" style="width: 14.92%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><b><font size="2">Total</font></b></td>
		<td width="26%" valign="top" style="width: 26.86%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
		$3,459,125</font></td>
		<td width="29%" valign="top" style="width: 29.86%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">n/a</font></td>
		<td width="28%" valign="top" style="width: 28.36%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
		$3,459,125</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The
information in this prospectus is not complete and may be changed.&nbsp; We may amend
or supplement this prospectus from time to time by filing amendments or
supplements as required.&nbsp; You should read the entire prospectus and any
amendments or supplements carefully before you make your investment decision.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">This
prospectus is not an offer to sell our securities and it is not soliciting an
offer to buy our securities in any state where the offer or sale is not
permitted.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Neither the
Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the accuracy or
adequacy of this prospectus.&nbsp; Any representation to the contrary is a criminal
offence.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
3</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" align="center" style="text-align:center"><b>TABLE OF
CONTENTS </b></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">

		<tr>
			<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
   2.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
   margin-bottom:2.0pt;margin-left:0in;text-align:center"><u><font size="2">Page</font></u></td>
		</tr>

	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">PROSPECTUS SUMMARY</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">6</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">THE OFFERING</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">6</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">SUMMARY FINANCIAL INFORMATION</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">7</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">RISK FACTORS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">8</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">FORWARD-LOOKING STATEMENTS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">12</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">USE OF PROCEEDS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">12</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">DETERMINATION OF OFFERING PRICE</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">12</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">DILUTION</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">13</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">SELLING SHAREHOLDERS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">13</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">PLAN OF DISTRIBUTION</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">16</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">LEGAL PROCEEDINGS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">20</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS
		AND CONTROL PERSONS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">20</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Executive Officers And Directors</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">20</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Executive Compensation</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">21</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Summary Compensation Table </font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">22</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Director Compensation Table</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">22</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Significant Personnel</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">22</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Committees Of The Board Of Directors</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">22</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Code Of Ethics</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">22</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Involvement In Certain Legal
		Proceedings</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">22</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
		OWNERS AND MANAGEMENT</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">23</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">DESCRIPTION OF CAPITAL STOCK</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">23</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Common Stock</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">24</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Preferred Stock</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">24</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Dividend Policy</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">24</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Share Purchase Warrants</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">24</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Options</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">24</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Convertible Securities</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">25</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Nevada Anti-Takeover Laws</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">25</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Combinations With Interested
		Stockholders</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">25</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">INTERESTS OF NAMED EXPERTS AND COUNSEL</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">25</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">LEGAL MATTERS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">25</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">EXPERTS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">25</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">CHANGES IN AND DISAGREEMENTS WITH
		ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">25</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">MARKET FOR COMMON EQUITY AND RELATED
		STOCKHOLDER MATTERS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">26</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">No Public Market For Common Stock</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">26</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">New Rule 144</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">26</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Penny Stock Regulation</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">26</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Holders</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">27</font></td>
	</tr>
</table>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
4</p>
<p class="MsoNormal">&nbsp;</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">

		<tr>
			<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
   2.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
   margin-bottom:2.0pt;margin-left:0in;text-align:center"><u><font size="2">Page</font></u></td>
		</tr>

	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Dividends</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">27</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Disclosures of Commission Position on
		Indemnification for Securities Act Liabilities</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">27</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">TRANSACTIONS WITH RELATED PERSONS </font>
		</td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">27</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">BUSINESS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">28</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">History And Organization</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">28</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Property Option Agreement</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">28</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Technical Report on Properties</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">30</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Recommended Exploration Program</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">30</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Geological Exploration Program</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">30</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Location, Accessibility, Climate, Local
		Resources Infrastructure and Physiography</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">32</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">History of the Property</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">32</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Conclusions and Recommendations</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">33</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Geological and Technical Staff</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">33</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Competitive Factors</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">33</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Location Challenges</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">34</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Regulations</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">34</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Environmental Factors</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">35</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Employees</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">35</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">MANAGEMENT'S DISCUSSION AND ANALYSIS OF
		FINANCIAL CONDITION AND RESULTS OF OPERATIONS PLAN OF OPERATIONS</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">35</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Overview</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">35</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Plan of Operations</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">35</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Risk Factors</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">36</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Financial Condition</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">36</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Liquidity</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">37</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Capital Resources</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">37</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Results Of Operations </font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">37</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:.2in"><font size="2">Off-balance Sheet Arrangements</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">37</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">AVAILABLE INFORMATION</font></td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">37</font></td>
	</tr>
	<tr>
		<td width="92%" valign="top" style="width:92.3%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:2.0pt;margin-right:0in;margin-bottom:
  2.0pt;margin-left:0in"><font size="2">INDEX TO FINANCIAL STATEMENTS </font>
		</td>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="margin-top:2.0pt;margin-right:0in;
  margin-bottom:2.0pt;margin-left:0in;text-align:center"><font size="2">38</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>You should
rely only on the information contained in this prospectus and in any
accompanying prospectus supplement.&nbsp; We have not, and the Selling Shareholders
have not, authorized anyone to provide you with information different from the
information contained in this prospectus.&nbsp; The information in this prospectus is
accurate only as of the date of this prospectus, regardless of when this
prospectus is delivered or when any sale of our common stock occurs.</b></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
5</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>Prospectus Summary</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The following
summary highlights selected information contained in this prospectus.&nbsp; This
summary does not contain all the information you should consider before
investing in the securities.&nbsp; Before making an investment decision, you should
read the entire prospectus carefully, including the &quot;RISK FACTORS&quot; section, the
financial statements and the notes to the financial statements.&nbsp; As used
throughout this prospectus, the terms &quot;Santos&quot;, the &quot;Company&quot;, &quot;we,&quot; &quot;us,&quot; and
&quot;our&quot; refer to Santos Resource Corp.&nbsp; All dollar amounts in this prospectus are
in U.S. dollars unless otherwise stated.&nbsp;
Unless the context otherwise
requires, we have used an exchange rate of CAD$1 to US$1 in reference to amounts
in Canadian dollars. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Santos
Resource Corp. was incorporated under the laws of the State of Nevada on May 24,
2006. In connection with the organization of our Company, nine founding
shareholders of our Company contributed an aggregate of $15,520 cash in exchange
for a total of 31,040,000 shares of common stock.&nbsp; In June 2007, we entered into
a property option agreement to acquire the Lourdeau Property in Quebec.&nbsp; In
January 2008, we raised $144,225 from 32 BC resident placees by issuing 961,500
shares of common stock.&nbsp; We have not commenced active business operations.&nbsp; As
of the date hereof, all our cash has been raised from the issuance of
securities.&nbsp; We are a &quot;shell company&quot; as defined under Rule 405 of the
Securities Act and Rule 12b-2 of the Exchange Act.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We are an
exploration stage company, and our business plan is to explore for minerals on
our mineral property.&nbsp; In June 2007, we entered into a Property Option Agreement
that allows us to acquire a 75% interest in and to the Lourdeau claims (the &quot;Lourdeau
Property&quot; or &quot;Lourdeau Claims&quot;), which consist of 18 mineral claims covering
900.75 hectares (9.01km2) located in the La Grande geological area of the
province of Quebec in the James Bay Territory about 620 miles (1,000 km) north
of Montreal, Quebec.&nbsp; We intend to explore for uranium on our property.&nbsp; There
can be no assurance that valuable uranium deposits exist on the Lourdeau
Property until proper geological work and analysis is performed.&nbsp; The Lourdeau
Property has no proven or probable mineral reserves.&nbsp; Under the Property Option
Agreement, we have an option to acquire a 75% interest in and to the Lourdeau
Claims by paying a total of $10,000 in cash; issuing 75,000 shares to Starfire
Minerals Inc., the registered owner of the Lourdeau Claims; and incurring at
least a total of $25,000 of expenditures on the property before September 30,
2008, and another $25,000 of expenditures before July 25, 2009.&nbsp; As of the date
hereof, $10,000 has been paid and 75,000 shares have been issued to Starfire.&nbsp;
The Lourdeau Property is subject to a 3% Net Smelter Royalty (&quot;NSR&quot;) interest
payable to Starfire.&nbsp; We may purchase in the aggregate up to two-thirds of the
NSR by paying Starfire an aggregate of $2,500,000 (CAD$2,500,000) on the basis
of $100,000 per 0.1% NSR acquired on the first one-half of the NSR and $150,000
per 0.1% NSR thereafter for the remaining 1% NSR.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our
administrative office is located at 11450 - 201A Street, Maple Ridge, British
Columbia, Canada&nbsp; V2X 0Y4, telephone (604) 460-8440.&nbsp; Our registered office is
located at 3990 Warren Way, Reno, Nevada 89509.&nbsp; Our fiscal year end is February
28 (on a leap year our fiscal year end is February 29).</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><a name="_Toc156803428"><b>The Offering</b></a><b> </b>
</p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="27%" valign="top" style="width:27.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Securities
		Being Offered</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="61%" valign="top" style="width:61.52%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">Up to 13,836,500 shares of our common stock held by the
		selling shareholders named in this prospectus.</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="27%" valign="top" style="width:27.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Offering
		Price and Plan of Distribution</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="61%" valign="top" style="width:61.52%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">The selling shareholders named in this prospectus will
		sell the 13,836,500 shares of our common stock offered under this
		prospectus at an offering price of $0.25 per share unless the offered
		shares are quoted on the over-the-counter bulletin board. We intend to
		apply to the over-the-counter bulletin board to allow for the trading of
		our common stock when we become a reporting entity under the Securities
		Exchange Act of 1934. If our common stock becomes so traded and a market
		for the stock develops, the actual price of our stock will be determined
		by prevailing market prices at the time of sale or by private
		transactions negotiated by the selling shareholders named in this </font>
		</td>
	</tr>
</table>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
6</p>
<p class="MsoNormal">&nbsp;</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="27%" valign="top" style="width:27.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="61%" valign="top" style="width:61.52%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">prospectus. The offering price would thus be determined
		by market factors and the independent decisions of the selling
		shareholders named in this prospectus.</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="27%" valign="top" style="width:27.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Minimum
		number of Shares to be sold in this Offering</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="61%" valign="top" style="width:61.52%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">None.</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="27%" valign="top" style="width:27.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Securities
		issued and to be issued</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="61%" valign="top" style="width:61.52%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">32,076,500 shares of our common stock are issued and
		outstanding as of the date of this prospectus.&nbsp; All of the 13,836,500
		shares to be sold under this prospectus will be sold by existing
		shareholders.</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="27%" valign="top" style="width:27.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Use of
		Proceeds</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">&nbsp;</font></td>
		<td width="61%" valign="top" style="width:61.52%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
		<font size="2">We will not receive any proceeds from the sale of the
		common stock offered through this prospectus by the selling
		shareholders.</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="91%" colspan="6" valign="top" style="width:91.38%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
		<b><font size="2">Summary Financial Information</font></b></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width:34.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="31%" colspan="4" valign="top" style="width:31.0%;border:none;
  border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
		<font size="2">As of Fiscal Year <br>
		Ended February 29, 2008</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width:34.62%;border:none;border-bottom:
  solid windowtext .5pt;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Balance
		Sheet Data:</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width: 6.18%; border: medium none; padding: 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;border:none;border-top:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="18%" valign="top" style="width:18.58%;border:none;border-top:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.14%;border:none;border-top:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width: 34.62%; border: medium none; padding: 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Working
		Capital </font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width:6.18%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="18%" valign="top" style="width:18.58%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">111,059</font></td>
		<td width="3%" valign="top" style="width:3.14%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width:34.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Total
		Assets</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width:6.18%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="18%" valign="top" style="width:18.58%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">132,623</font></td>
		<td width="3%" valign="top" style="width:3.14%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width:34.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Total
		Liabilities</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width:6.18%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="18%" style="width:18.58%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">21,564</font></td>
		<td width="3%" valign="top" style="width:3.14%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width:34.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">
		Shareholder's Equity </font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width:6.18%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="18%" valign="top" style="width:18.58%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">111,059</font></td>
		<td width="3%" valign="top" style="width:3.14%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width:34.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width:6.18%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="18%" valign="top" style="width:18.58%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.14%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="bottom" style="width:34.62%;border:none;border-bottom:
  solid windowtext .5pt;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Statement
		of Operations Data:</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="31%" colspan="4" valign="top" style="width:31.0%;border:none;
  border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
		<font size="2">For the Period from Incorporation on May 24, 2006 to
		February 29, 2008</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width: 34.62%; border: medium none; padding: 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Revenue</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width: 6.18%; border: medium none; padding: 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;border:none;border-top:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="18%" valign="top" style="width:18.58%;border:none;border-top:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">NIL</font></td>
		<td width="3%" valign="top" style="width:3.14%;border:none;border-top:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width:34.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Total
		Expenses</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width:6.18%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="18%" style="width:18.58%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">70,888</font></td>
		<td width="3%" valign="top" style="width:3.14%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="8%" valign="top" style="width:8.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="34%" valign="top" style="width:34.62%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Net Income
		(Loss)</font></td>
		<td width="25%" valign="top" style="width:25.76%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="6%" valign="top" style="width:6.18%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width:3.1%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">($</font></td>
		<td width="18%" style="width:18.58%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">70,888</font></td>
		<td width="3%" valign="top" style="width:3.14%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">)</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>INVESTMENT
IN OUR COMPANY INVOLVES SIGNIFICANT RISKS BECAUSE OUR MINERAL CLAIMS ARE AT THE
EXPLORATION STAGE AS OPPOSED TO THE DEVELOPMENT STAGE.&nbsp; OUR MINERAL CLAIMS DO
NOT HAVE A KNOWN BODY OF COMMERCIAL ORE.&nbsp; THE COMPANY WILL NOT BE RAISING ANY
FUNDS IN THIS OFFERING.&nbsp; THE COMPANY WILL USE AVAILABLE WORKING CAPITAL TO MEET
OUR GENERAL OPERATING EXPENSES AND TO MEET OUR OBLIGATIONS UNDER THE PROPERTY
OPTION AGREEMENT.&nbsp; WE DO NOT HAVE THE FUNDS TO CONDUCT THE RECOMMENDED
EXPLORATION PROGRAM, WHICH CONSISTS OF GRAB AND CHANNEL SAMPLING AND
HELICOPTER-BORNE GEOPHYSICAL SURVEY AND COSTS APPROXIMATELY $107,570.&nbsp; WE WILL
NEED TO RAISE ADDITIONAL MONEY BY PRIVATE PLACEMENTS TO MEET ANY FUTURE FUNDING
REQUIREMENTS.&nbsp; WE ARE ALSO CONSIDERED </b></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
7</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>A
SHELL COMPANY AS DEFINED BY RULE 405 OF THE SECURITIES ACT AND EXCHANGE ACT RULE
12B-2 BECAUSE WE HAVE NOMINAL OPERATIONS AND NOMINAL ASSETS.</b></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Risk Factors</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There is no
assurance that our business will be profitable. We must conduct exploration to
determine what amount, type and quality of minerals, if any, exist on our
property. We do not claim to have any reserves whatsoever at this time on any of
our claims.&nbsp; An investment in our common stock involves a high degree of risk.&nbsp;
You should carefully consider the risks described below and the other
information in this prospectus before investing in our common stock.&nbsp; If any of
the following risks occur, our business, operating results and financial
condition could be seriously harmed.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>You cannot evaluate the investment merits of our Company because we
have no operating history.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We were
incorporated in May 2006, and we have not started our proposed business
operations or realized any revenues, which makes it difficult to evaluate the
investment merits of our Company.&nbsp; We are a start-up company.&nbsp; We have no
operating history and we do not have any business prior to our organization.&nbsp; As
of February 29, 2008, we incurred total expenses of $70,888.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
<a name="_Toc153009729"><b>We may not be able to continue as a going concern if
we do not obtain additional financing.</b></a><b> </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Because of our
lack of sufficient funds and short operating history incurring only expenses,
and no revenues, our independent accountants' audit report states that there is
substantial doubt about our ability to continue as a going concern. Our
independent auditor in their audit report have stated that we incurred only
losses since our inception raising substantial doubt about our ability to
continue as a going concern.&nbsp; Therefore, our ability to continue as a going
concern is highly dependent upon obtaining additional financing for our planned
operations.&nbsp; As of the date hereof, all our cash has been raised from the
issuance of securities.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
<a name="_Toc153009730"><b>If we do not obtain additional financing, our
business will fail because we cannot fund our planned exploration program.</b></a></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In order for
us to perform any exploration program, we will need to obtain additional
financing. As of February 29, 2008, we had cash in the amount of $132,303.&nbsp; We
currently do not have any operations and we have no income. Our business plan
calls for incurring approximately $107,570 on an exploration program
incorporating grab and channel sampling followed by a helicopter-borne
geophysical survey, which would define the targets acquired during the
geophysical surveys and sampling campaign.&nbsp; We have sufficient funds to meet our
general operating expenses and to meet our obligations under the Property Option
Agreement.&nbsp; We do not have funds to conduct the exploration program.&nbsp; If we
raised the funds and conducted the exploration programs, and if our exploration
programs are successful in discovering ore of commercial tonnage and grade, we
will require additional funds in order to place the Lourdeau Claims into
commercial production. We currently do not have any arrangements for financing
and we may not be able to obtain financing when required. Obtaining additional
financing would be subject to a number of factors, including the market price
for uranium, gold, silver, copper, base and precious metals and the cost of
exploring for these minerals. These factors may make the timing, amount, terms
or conditions of additional financing unavailable to us.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Because our
sole executive officer does not have formal training specific to the mining
industry, there is a higher risk our business will fail.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Mr. Richard
Pierce, our sole executive officer, does not have any formal training as a
geologist, or in the technical aspects of management of a company specializing
in mining and exploration for base and precious metals.&nbsp; Mr. Pierce has no
business experience with exploration companies, his decisions and choices may
not take into account standard exploration or mining approaches commonly used in
the </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
8</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
industry.&nbsp; As a result of this inexperience, there is a higher risk of our being
unable to complete our business plan for the exploration of our mineral claims.&nbsp;
In addition, we will have to rely on the technical services of others with
expertise in geological exploration in order for us to carry our planned
exploration program.&nbsp; If we are unable to contract for the services of such
individuals, it will make it difficult and maybe impossible to pursue our
business plan.&nbsp; There is thus a higher risk of business failure.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Because our
sole executive officer has only agreed to provide his services on a part-time
basis, he may not be able or willing to devote a sufficient amount of time to
our business operations, causing our business to fail.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our sole
executive officer is employed on a full time basis by other companies.&nbsp; Because
we are in the early stages of our business, Mr. Pierce, our executive officer,
devotes approximately 10 hours per week to our affairs.&nbsp; If the demands of our
business require the full business time of Mr. Pierce, he is prepared to adjust
his timetable to devote up to 15 hours a week.&nbsp; However, Mr. Pierce may not be
able to devote sufficient time to the management of our business, as and when
needed. It is possible that the demands of Mr. Pierce's other business interests
will increase with the result that he would no longer be able to devote
sufficient time to the management of our business.&nbsp; Competing demands on Mr.
Pierce's time may lead to a divergence between his interests and the interests
of other shareholders.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>We are highly dependent on our senior management. The loss of our sole
executive officer could hinder our ability to pursue our stated plan of
operations and obtain debt or equity financing, if and when required. </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We believe
that our continued success depends to a significant extent upon the efforts and
abilities of our senior management and in particular Richard Pierce, our sole
executive officer.&nbsp; Mr. Pierce has been in management for over 20 years.&nbsp; We
believe that the loss of Mr. Pierce's business and management experience could
hinder our ability to pursue our stated plan of operations and obtain debt or
equity financing, if and when required.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Because the
owner of the Lourdeau Property is Starfire, where our sole executive officer is
also a director, there may be conflicts of interest when our Company transacts
any business with Starfire.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There may be
conflict of interest situations whenever our Company conducts any business with
Starfire, the registered owner of the Lourdeau Property.&nbsp; Richard Pierce, our
sole executive officer, is also a director of Starfire.&nbsp; Shareholders of Santos
will be dependent upon our management exercising, in a manner fair to all of our
shareholders, his fiduciary duties as an officer or as a member of our board of
directors.&nbsp; There is no way to prevent or control any business transactions
between Santos and Starfire relating to the Lourdeau Property that could have a
negative or unfavorable consequence for Santos.&nbsp; There is a significant risk
that Santos may not receive fair treatment in any transaction connected to the
Lourdeau Property and as a result the shareholders of Santos will be adversely
affected.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>We have no
known mineral resources and if we cannot find any mineral resources we may have
to cease operations.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have no
measured mineral bodies.&nbsp; If we do not find a mineral body or bodies containing
valuable minerals or metals or if we cannot conduct further exploration of any
minerals, either because we do not have money to do it or because it is not
economically feasible to do it, we may have to cease operations and you will
loose your investment.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Our sole asset is a Property Option Agreement and if we fail to make
the required payments on a timely basis, we will lose the right to acquire a 75%
interest in and to the Lourdeau Property.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Under the
Property Option Agreement we have a right and option to acquire a 75% interest
in and to the Lourdeau Claims by paying a total of $10,000 in cash; issuing
75,000 shares to Starfire Minerals Inc., the </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
9</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
registered owner of the Lourdeau Claims; and incurring at least a total of
$25,000 of expenditures on the property before September 30, 2008, and another
$25,000 of expenditures before July 25, 2009.&nbsp; The failure of our Company to
make any cash payments and incurring the expenditures within the contractual
time limit will allow Starfire to terminate the Property Option Agreement.&nbsp; If
the Property Option Agreement is terminated, we will lose all rights to the
Lourdeau Property, including any payments previously made to Starfire.&nbsp; The
Property Option Agreement is our sole asset and if we lose the contractual
rights to acquire the Lourdeau Property, we will have no assets and you may lose
all your investment.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Title to the Lourdeau Claims is registered in the name of Starfire
Minerals Inc. and Starfire may transfer title to third parties without our
knowledge.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The Property
Option Agreement only gives us a right to acquire a 75% interest in and to the
Lourdeau Claims by fulfilling our obligations under the contract.&nbsp; We cannot
prevent Starfire from transferring the Lourdeau Property to third parties.&nbsp; A
third party has no way of knowing that we have rights to the Lourdeau Property
since ownership is registered in the name of Starfire with the government of
Quebec.&nbsp; If the Lourdeau Property is transferred to third parties we may have to
litigate in order to determine our ownership rights.&nbsp; There is no way of knowing
if Starfire will or has transferred the property to third parties.&nbsp; Our only
protection is our contractual rights under the Property Option Agreement.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Weather interruptions in the province of Quebec may affect and delay
our proposed exploration operations and as a result, there may be delays in
generating revenues. </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We may not
have access to the Lourdeau Property during the winter season due to snow in the
area and road closures.&nbsp; Extreme weather can also occur in other seasons and
limit access to the Lourdeau Property.&nbsp; The summers are very short (from early
June to late August).&nbsp; As a result, any attempts to visit, test, or explore the
property may be limited to these few months of the year when weather permits
such activities.&nbsp; These limitations can result in significant delays in
exploration efforts, as well as mining and production in the event that
commercial amounts of minerals are found.&nbsp; Such delays can result in our
inability to meet deadlines for exploration expenditures required to be made in
order to retain title to our claims under provincial mineral property laws.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
<a name="_Toc153009734"><b>Since we are subject to compliance with government
regulation, which may change, the anticipated costs of our exploration program
may increase.</b></a><b> </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There are
several governmental regulations that materially restrict mineral exploration or
exploitation. We will be subject to the mining laws of Quebec as we carry out
our exploration programs.&nbsp; Because we are a foreign company working on mining
claims in Quebec, we will need to register with the government of Quebec before
we work on the Lourdeau Claims.&nbsp; We may be required to obtain work permits, post
bonds and perform remediation work for any physical disturbance to the land in
order to comply with these regulations. While our planned exploration program
budgets for regulatory compliance, there is a risk that new regulations could
increase our costs of doing business and prevent us from carrying out our
exploration program. </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Risks associated with this Offering</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Because we have nominal assets, we are considered a &quot;shell company&quot;
and will be subject to more stringent reporting requirements.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The Securities
and Exchange Commission (&quot;SEC&quot;) adopted rules which defines (as defined by Rule
405 of the Securities Act and Exchange Act Rule 12b-2) a shell company as a
registrant that has no or nominal operations, and either (a) no or nominal
assets; (b) assets consisting solely of cash and cash equivalents; or (c) assets
consisting of any amount of cash and cash equivalents and nominal other assets.&nbsp;
Our balance sheet states that we have cash as our only asset therefore, we are
defined as a shell company.&nbsp; The rules prohibit shell companies from using a
Form S-8 to register securities pursuant </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
10</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">to
employee compensation plans.&nbsp; However, the rules do not prevent us from
registering securities pursuant to registration statements.&nbsp; Additionally, the
rules require shell companies to provide more detailed disclosure upon
completion of a transaction that causes it to cease being a shell company.&nbsp; We
must file a current report on Form 8-K containing the information required
pursuant to Regulation S-K and in a registration statement on Form 10, within
four business days following completion of the transaction together with
financial information of the private operating company.&nbsp; In order to assist the
SEC in the identification of shell companies, we are required to check a box on
Form 10-Q and Form 10-K indicating that we are a shell company.&nbsp; To the extent
that we are required to comply with additional disclosure because we are a shell
company, we may be delayed in executing any mergers or acquiring other assets
that would cause us to cease being a shell company.&nbsp; Effective February 15,
2008, the SEC amended Rule 144, which will make resales of restricted securities
by shareholders of a shell company more difficult. See discussion under heading
&quot;New Rule 144&quot; below.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Because our
directors control approximately 66% of our outstanding common stock, investors
may find that corporate decisions influenced by our directors are inconsistent
with the best interests of other stockholders.&nbsp; </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our three
directors and executive officer, Richard Pierce, Shih-Yi Chuang and Andrew Lee
Smith, control approximately 66% of our outstanding shares of common stock.&nbsp; The
interests of our directors may not be, at all times, the same as that of other
shareholders.&nbsp; Since our directors are not simply passive investors but are also
our directors and Mr. Pierce is our sole executive, their interests as
management may, at times, be adverse to those of passive investors. Where those
conflicts exist, our shareholders will be dependent upon our management
exercising, in a manner fair to all of our shareholders, his fiduciary duties as
an officer or as a member of our board of directors. Also, management will have
the ability to significantly influence the outcome of most corporate actions
requiring shareholder approval, including the merger of Santos with or into
another company, the sale of all or substantially all of our assets and
amendments to our articles of incorporation.&nbsp; This concentration of ownership
with our directors may also have the effect of delaying, deferring or preventing
a change in control of Santos, which may be disadvantageous to minority
shareholders.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
<a name="_Toc153009737"><b>If the selling shareholders sell a large number of
shares all at once or in blocks, the market price of our shares would most
likely decline.</b></a></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The selling
shareholders are offering 13,836,500 shares of our common stock through this
prospectus.&nbsp; Our common stock is presently not traded or quoted on any market or
securities exchange, but should a market develop, shares sold at a price below
the current market price at which the common stock is quoted will cause that
market price to decline.&nbsp; Moreover, the offer or sale of a large number of
shares at any price may cause the market price to fall.&nbsp; The shares of common
stock covered by this prospectus represent 43.1% of the common shares
outstanding as of the date of this prospectus.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
<a name="_Toc153009738"><b>Because there is no public trading market for our
common stock, you may not be able to resell your shares.</b></a></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our Company
plans to have its shares quoted on the NASD OTC Bulletin Board.&nbsp; There are no
assurances that we will be successful in listing our shares.&nbsp; There is currently
no public trading market for our common stock.&nbsp; Therefore there is no central
place, like a stock exchange or electronic trading system, to resell your
shares.&nbsp; If you do want to resell your shares, you will have to locate a buyer
and negotiate your own sale.&nbsp; Therefore, you may not be able to resell your
shares. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
<a name="_Toc156803431"><b>Re-sale restrictions for British Columbia residents</b></a><b>
and other Canadian residents may limit the ability of our shareholders to sell
their securities.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Selling
shareholders, who are residents of British Columbia, have to rely on an
exemption from prospectus and registration requirements of B.C. securities laws
to sell their shares, which are being registered for resale by this prospectus.&nbsp;
Selling shareholders have to comply with B.C. Securities Commission's BC
Instrument 72-502 &quot;Trade In Securities of U.S. Registered Issuers&quot; to resell
their </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
11</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">shares.&nbsp;
BC Instrument 72-502 requires, among other conditions, that B.C. residents hold
the shares for four months and limit the volume of shares sold in a 12-month
period.&nbsp; (See &quot;Canadian Securities Law&quot;).&nbsp; These restrictions will limit the
ability of the B.C. residents to resell the securities in the United States and
therefore, may materially affect the market value of your shares.&nbsp; Residents of
other Canadian provinces have to rely on available prospectus exemptions to
re-sell their securities and if no exemptions can be relied upon, then the
shareholders may have to hold the securities for an indefinite period of time.&nbsp;
Shareholders of other Canadian provinces should consult with independent legal
counsel to determine the availability and use of prospectus exemptions to
re-sell their securities.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Forward-Looking Statements</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Some of the
statements under the &quot;Prospectus Summary,&quot; &quot;Risk Factors,&quot; &quot;Plan of Operations,&quot;
&quot;Business&quot; and elsewhere in this prospectus constitute forward-looking
statements. These statements involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of activity,
performance, or achievements to be materially different from any future results,
levels of activity, performance, or achievement expressed or implied by such
forward-looking statements. Such factors include, among other things, those
listed under &quot;Risk Factors&quot; and elsewhere in this prospectus.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In some cases,
you can identify forward-looking statements by terminology such as &quot;may,&quot;
&quot;should,&quot; &quot;could,&quot; &quot;intend&quot;, &quot;expects,&quot; &quot;plan,&quot; &quot;anticipates,&quot; &quot;believes,&quot;
&quot;estimates,&quot; &quot;predicts,&quot; &quot;potential,&quot; or &quot;continue&quot; or the negative of such
terms or other comparable terminology. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Although we
believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance,
or achievements. Moreover, neither we nor any other person assumes
responsibility for the accuracy and completeness of such statements. We are
under no duty to update any of the forward-looking statements after the date of
this prospectus.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>Use Of Proceeds</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
<a name="_Toc347337">We will not receive any proceeds from the sale of common
shares offered in this prospectus by our selling shareholders.</a></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>Determination Of Offering Price</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The $0.25 per
share offering price of our common shares by which our selling shareholders will
sell their shares prior to the quotation of the Company's shares on the NASD OTC
Bulletin Board (&quot;OTCBB&quot;) was arbitrarily chosen based on our internal assessment
of what the market would support.&nbsp; Our founding shareholders purchased
31,040,000 of our common shares at a price of $0.0005 per share on June 19, 2007.&nbsp; The offering price of our shares is substantially higher than the price
paid by our founding shareholders, and exceeds the per share value of our net
tangible assets.&nbsp; Therefore, if you purchase shares in this offering, you will
experience immediate and substantial dilution.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">You may also
suffer additional dilution in the future from the sale of additional shares of
common stock or other securities, if the need for additional financing forces us
to make such sales.&nbsp; Investors should be aware of the risk of judging the real
or potential future market value, if any, of our common stock by comparison to
the offering price.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There is no
established public market for the shares of common stock being registered.&nbsp; As a
result, the offering price and other terms and conditions relative to the shares
of common stock offered hereby have been arbitrarily determined by us and do not
necessarily bear any relationship to assets, earnings, book value or any other
objective criteria of value. In addition, no investment banker, appraiser or
other independent, third party has been consulted concerning the offering price
for the shares or the fairness of the price used for the shares.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
12</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We
intend to apply to the OTCBB to allow the quotation of our common stock upon us
becoming a reporting entity under the Securities Exchange Act of 1934. We intend
to file a registration statement under the Exchange Act concurrently with the
effectiveness of the registration statement of which this prospectus forms a
part. If our common stock becomes so quoted and a market for the stock develops,
the actual price of stock will be determined by prevailing market prices at the
time of sale or by private transactions negotiated by the selling shareholders.
The offering price would thus be determined by market factors and the
independent decisions of the selling shareholders.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Dilution</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The common
stock to be sold by the selling shareholders is common stock that is currently
issued and outstanding. Accordingly, there will be no dilution to our existing
shareholders.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Selling shareholders</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The selling
shareholders named in this prospectus are offering 13,836,500 shares of common
stock acquired by the selling shareholders from us in offerings that were exempt
from registration under Regulation S of the Securities Act of 1933 (&quot;Regulation
S&quot;).&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The selling shareholders,
nine founding shareholders, acquired 12,800,000 shares of our common
stock from us at a price of $0.0005 per share in an offering that was exempt
from registration under Regulation S and completed on June 19, 2007.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The selling shareholder,
optionor of the Lordeau Property, acquired 75,000 shares of our common stock
from us at a deemed price of $0.15 per share in an offering that was exempt from
registration under Regulation S and completed on June 25, 2007.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The selling shareholders,
32 private placees, acquired 961,500 shares of our common stock
from us at a price of $0.15 per share in an offering that was exempt from
registration under Regulation S and completed on February 1, 2008.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The term
&quot;selling shareholders&quot; includes donees, pledges, transferees or other
successors-in-interest selling shares received after the date of this prospectus
from a selling shareholder as a gift, pledge or other non-sale related transfer.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Based on
information provided to us by the selling shareholders, the following table
provides information as of July 9, 2008, regarding the number of shares of our
common stock held by each of the selling shareholders as of the date hereof,
including: (1) the total number of shares that are to be offered by each; (2)
the percentage owned by each prior to the offering; (3) the percentage owned by
each upon completion of the offering; and (4) the identity of the beneficial
holder of any entity that owns the shares.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Except as
disclosed in the table below, to the best knowledge of management of the
Company, the named party beneficially owns and has sole voting and investment
power over all shares or rights to these shares.&nbsp; The numbers in this table
assume that none of the selling shareholders sells shares of common stock not
being offered in this prospectus or purchases additional shares of common stock,
and assumes that all shares offered are sold.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Except as
disclosed below, none of the selling shareholders </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; has had a material relationship with us or any of our affiliates
other than as a security holder at any time within the past three years; or </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:-.5in">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; has
ever been one of our officers or directors.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
13</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt">Except as disclosed in the
table below, none of our selling shareholders are broker-dealers or affiliates
of broker-dealers.</p>
<p class="MsoNormal">&nbsp;</p>
<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">

		<tr>
			<td width="4%" valign="top" style="width:4.7%;border:solid windowtext .5pt;
   border-bottom:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="22%" valign="bottom" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: medium none; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Name
			and Address of Selling Shareholders</font></td>
			<td width="26%" colspan="4" valign="bottom" style="width: 26.82%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Shares
			Beneficially Owned Prior to the Offering</font></td>
			<td width="16%" valign="bottom" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: medium none; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Total
			Shares Offered by this Prospectus </font><sup><font size="2">(1)</font></sup></td>
			<td width="29%" colspan="2" valign="bottom" style="width: 29.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Shares
			Beneficially Owned After the Offering</font></td>
		</tr>
		<tr>
			<td width="4%" valign="top" style="width:4.7%;border:solid windowtext .5pt;
   border-top:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">Number</font></td>
			<td width="3%" valign="top" style="width:3.76%;border:solid windowtext .5pt;
   border-left:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="10%" colspan="2" valign="top" style="width: 10.78%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Percent</font></td>
			<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
   margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">&nbsp;</font></td>
			<td width="16%" valign="bottom" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Number</font></td>
			<td width="12%" valign="bottom" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Percent</font></td>
		</tr>

	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">1</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Robert Birarda<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,155,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(2)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">3.6%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,155,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">2</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Heather Birarda<br>
		West Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(2)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">3</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">James Borkowski<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(3)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">4</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Julian Borkowski<br>
		Surrey, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(3)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">5</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">John David Brougham<br>
		Roberts Creek, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,310,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(4)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">4.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">160,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">6</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Caamano Sound Fishing<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">7</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Marc Casavant<br>
		Port Coquitlam, BC</font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">8</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Yung Hsuan Chou<br>
		Taipei, Taiwan</font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,150,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">3.6%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,150,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">9</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Shih-Yi Chuang<br>
		Chu-Chi Shiang Cha-Yi, Taiwan</font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">7,022,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(5)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">21.9%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,550,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">5,472,000</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">17.1%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">10</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Geoff Cribbs<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">11</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Jean Sui De Melt<br>
		North Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">12</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Cale Dougans<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">5,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">5,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">13</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Craig Engelsman<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">14</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Paul Guedes<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">15</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Graham Heal<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">16</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Nick Houghton<br>
		Vancouver, BC</font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,140,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">3.6%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,140,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">17</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Holly Johnson<br>
		Port Coquitlam, BC&nbsp; </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,150,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">3.6%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,150,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">18</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Judith G. King<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.28%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">160,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.5%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">160,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
</table>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
14</p>
<p class="MsoNormal">&nbsp;</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">

		<tr>
			<td width="4%" valign="top" style="width:4.7%;border:solid windowtext .5pt;
   border-bottom:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="22%" valign="bottom" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: medium none; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Name
			and Address of Selling Shareholders</font></td>
			<td width="26%" colspan="4" valign="bottom" style="width: 26.84%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Shares
			Beneficially Owned Prior to the Offering</font></td>
			<td width="16%" valign="bottom" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: medium none; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Total
			Shares Offered by this Prospectus </font><sup><font size="2">(1)</font></sup></td>
			<td width="29%" colspan="2" valign="bottom" style="width: 29.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Shares
			Beneficially Owned After the Offering</font></td>
		</tr>
		<tr>
			<td width="4%" valign="top" style="width:4.7%;border:solid windowtext .5pt;
   border-top:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">Number</font></td>
			<td width="3%" valign="top" style="width:3.76%;border:solid windowtext .5pt;
   border-left:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="10%" colspan="2" valign="top" style="width: 10.78%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Percent</font></td>
			<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
   margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">&nbsp;</font></td>
			<td width="16%" valign="bottom" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Number</font></td>
			<td width="12%" valign="bottom" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Percent</font></td>
		</tr>

	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">19</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Mark Likness<br>
		Maple Ridge, BC</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">20</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Rob Marwood<br>
		Langley, BC</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">21</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Jane MacDonald<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">22</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Greg MacRae<br>
		Surrey, BC</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">23</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Dan Moshor<br>
		Langley, BC</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">24</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Walter Mustapich<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">25</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Pamela Estelle Nendick<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">26</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Brenton Nichols<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(6)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">27</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">David Nichols<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(6)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">28</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Kazuhiro Okitsu<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">29</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Richard Bruce Pierce<br>
		Maple Ridge, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">7,022,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(7) (8)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">21.9%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,550,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">5,472,000</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">17.1%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">30</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">RoseMarie Pierce<br>
		Gibsons, BC&nbsp; </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,310,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(4)<br>
		(7)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">4.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,150,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">31</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Leslie Robertson<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">6,500</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">6,500</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">32</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Gwen Roland<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">30,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(9)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1 %</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">33</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Raymond W. Roland<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">30,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(9)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">34</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Andrew Shannon<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">35</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">David W. Smalley<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">3,104,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(10)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">9.7%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,280,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">1,824,000</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">5.7%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">36</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Andrew Lee Smith<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">7,182,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(11)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">22.4%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,710,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">5,472,000</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">17.1%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">37</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">John Carson Speers<br>
		Pitt Meadows, BC&nbsp; </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,140,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">3.6%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">1,140,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
</table>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
15</p>
<p class="MsoNormal">&nbsp;</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">

		<tr>
			<td width="4%" valign="top" style="width:4.7%;border:solid windowtext .5pt;
   border-bottom:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="22%" valign="bottom" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: medium none; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Name
			and Address of Selling Shareholders</font></td>
			<td width="26%" colspan="4" valign="bottom" style="width: 26.84%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Shares
			Beneficially Owned Prior to the Offering</font></td>
			<td width="16%" valign="bottom" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: medium none; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Total
			Shares Offered by this Prospectus </font><sup><font size="2">(1)</font></sup></td>
			<td width="29%" colspan="2" valign="bottom" style="width: 29.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Shares
			Beneficially Owned After the Offering</font></td>
		</tr>
		<tr>
			<td width="4%" valign="top" style="width:4.7%;border:solid windowtext .5pt;
   border-top:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">Number</font></td>
			<td width="3%" valign="top" style="width:3.76%;border:solid windowtext .5pt;
   border-left:none;padding:0in 2.15pt 0in 2.15pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
			<td width="10%" colspan="2" valign="top" style="width: 10.78%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Percent</font></td>
			<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
   margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">&nbsp;</font></td>
			<td width="16%" valign="bottom" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Number</font></td>
			<td width="12%" valign="bottom" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Percent</font></td>
		</tr>

	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">38</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Starfire Minerals Inc.<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">75,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><sup><font size="2">(8)</font></sup></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.2%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">75,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">39</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Craig Taylor<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">40</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Douglas Tettman<br>
		Vancouver, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">15,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">41</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Nicholas F. Watters<br>
		Victoria, BC </font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;text-align:right">
		<font size="2">0.1%</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">20,000</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">0%</font></td>
	</tr>
	<tr>
		<td width="4%" valign="top" style="width: 4.7%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="22%" valign="top" style="width: 22.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Total</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">&nbsp;</font></td>
		<td width="3%" valign="top" style="width: 3.76%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width: 8.48%; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">&nbsp;</font></td>
		<td width="2%" valign="top" style="width: 2.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:3.0pt;margin-left:0in;text-align:right"><font size="2">
		13,836,500</font></td>
		<td width="16%" valign="top" style="width: 16.94%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="12%" valign="top" style="width: 12.3%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 2.15pt; padding-right: 2.15pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:3.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
</table>
</FONT>

<FONT FACE="Arial" SIZE=1>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(1)&nbsp;&nbsp;&nbsp;&nbsp; Shares offered by this Prospectus do not include shares deemed
beneficially held by the selling shareholders.&nbsp; </p>
</FONT>

<FONT FACE="Arial" SIZE=2>

<FONT FACE="Arial" SIZE=1>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(2)&nbsp;&nbsp;&nbsp;&nbsp; Robert Birarda is the son of Heather Birarda.&nbsp; Robert Birarda has no
beneficial interest in the shareholding of Heather Birarda, neither does Heather
Birarda have a beneficial interest in the shareholding of Robert Birarda.&nbsp; </p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(3)&nbsp;&nbsp;&nbsp;&nbsp; James Borkowski is the son of Julian Borkowski.&nbsp; James Borkowski has no
beneficial interest in the shareholding of Julian Borkowski, neither does Julian
Borkowski have a beneficial interest in the shareholding of James Borkowski.&nbsp;
</p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(4)&nbsp;&nbsp;&nbsp;&nbsp; John David Brougham is the common-law husband of RoseMarie Pierce.&nbsp; The
beneficial ownership of shares by John David Brougham and RoseMarie Pierce may
be attributable to the other party's respective holdings, and the number of
shares owned and percentage ownership of John David Brougham includes shares
owned by RoseMarie Pierce and vice versa.&nbsp; </p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(5)&nbsp;&nbsp;&nbsp;&nbsp; Shih-Yi Chuang is a director of the Company.&nbsp; </p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(6)&nbsp;&nbsp;&nbsp;&nbsp; Brenton Nichols is the brother of David Nichols.&nbsp; Brenton Nichols has no
beneficial interest in the shareholding of David Nichols, neither does David
Nichols have a beneficial interest in the shareholding of Brenton Nichols.&nbsp; </p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(7)&nbsp;&nbsp;&nbsp;&nbsp; Richard Pierce is a director and our President, Secretary and Treasurer,
sole executive officer.&nbsp; Richard Pierce is the brother of RoseMarie Pierce.&nbsp;
Richard Pierce has no beneficial interest in the shareholding of RoseMarie
Pierce, neither does RoseMarie Pierce have a beneficial interest in the
shareholding of Richard Pierce.&nbsp; </p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(8)&nbsp;&nbsp;&nbsp;&nbsp; Richard Pierce is also a director of Starfire Minerals Inc.&nbsp; Mr. Pierce
disclaims ownership over shares held by Starfire.</p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(9)&nbsp;&nbsp;&nbsp;&nbsp; Gwen Roland is the wife of Raymond W. Roland.&nbsp; The beneficial ownership
of shares by Gwen Roland and Raymond W. Roland may be attributable to the other
party's respective holdings, and the number of shares owned and percentage
ownership of Gwen Roland includes shares owned by Raymond W. Roland and vice
versa.&nbsp; </p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(10)&nbsp;&nbsp; David W. Smalley is legal counsel to the Company.</p>
<p class="MsoNormal" style="text-align: justify; text-indent: -22.5pt; margin-left: 40.5pt; margin-right: 0in; margin-top: 3.0pt; margin-bottom: 3.0pt">
(11)&nbsp;&nbsp; Andrew Lee Smith is a director of the Company.</p>
</FONT>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Plan Of Distribution</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Summary</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have agreed
to register for public resale our common shares, which have been issued to the
selling shareholders.&nbsp; This offering will terminate on the earlier of (i) the
date on which the shares may be resold by the selling stockholders without
registration and without regard to any volume limitations by reason of Rule 144
under the Securities Act or any other rule of similar effect or (ii) all of the
shares have been sold pursuant to this prospectus or Rule 144 under the
Securities Act or any other rule of similar effect. The selling shareholders
will receive all of the net proceeds from their sales.&nbsp; Prior to having its
shares quoted on OTCBB, the selling shareholders may, from time to time, sell
all or a portion of the shares of common stock of our Company, which they own at
$0.25 per share.&nbsp; After the shares of the Company are quoted for trading on the
OTCBB, the selling shareholders may sell their shares at the then market prices
on the OTCBB or privately negotiated prices, which may be less than or greater
than $0.25 per share.&nbsp; Presently, the selling shareholders cannot sell their
common stock of our Company in accordance with new Rule 144 under the Securities
Act because we are defined as a &quot;shell company&quot;.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
16</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The
selling shareholders may sell their shares of common stock of our Company
directly to purchasers or may use brokers, dealers, underwriters or agents to
sell such shares. Brokers or dealers may receive commissions, discounts or
concessions from a selling shareholder or, if any such broker or dealer acts as
agent for the purchaser of such shares, from a purchaser in amounts to be
negotiated. Such compensation may, but is not expected to, exceed that which is
customary for the types of transactions involved. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The selling
shareholders and any brokers, dealers or agents that participate with the
selling shareholders in sales of their shares of common stock of our Company may
be deemed to be &quot;underwriters&quot; within the meaning of the Securities Act of 1933
in connection with such sales. In such event, any commissions received by such
brokers, dealers or agents and any profit on the resale of such shares purchased
by them may be deemed to be underwriting commissions or discounts under the
Securities Act of 1933.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We are
required to pay all fees and expenses incident to the registration of our shares
of common stock offered hereby other than broker or dealer discounts and
commissions. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Selling shareholder's &quot;Underwriter&quot; Status; prospectus Delivery
Requirement</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Shareholders
of the Company who resell their securities pursuant to this prospectus may be
deemed to be statutory &quot;underwriters&quot; (as defined in Securities Act of 1933
Section 2(11)) and &quot;engaged in a public distribution&quot;.&nbsp; Accordingly, Santos
intends to deliver a prospectus to each shareholder.&nbsp; Each selling shareholder
should review it carefully and deliver it to any broker or dealer engaged to
sell stock or to any buyer in a direct sale. Selling shareholders and certain
brokers and dealers are required to deliver a prospectus 48 hours prior to
confirming sales.&nbsp; Additional copies of the prospectus may be printed by
accessing it on the SEC website at
http://www.sec.gov, or it may be obtained by writing or calling Santos Resource Corp. at 11450 -
201A Street, Maple Ridge, British Columbia, Canada&nbsp; V2X 0Y4, telephone (604)
460-8440.&nbsp; See &quot;Selling Shareholders&quot; above for information as to the largest
shareholders, the amounts owned, and any relationships with Santos.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Suggested Selling Shareholder's Underwriting Compliance Procedures</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Except as
indicated under &quot;Selling Shareholders&quot; none of the shareholders is known to
Santos to be a broker- dealer or affiliates of broker-dealers or to have any
experience in the distribution of securities or to have any material
relationships with Santos.&nbsp; Santos is not aware of any intent by a shareholder
to engage in passive market making transactions as permitted by Rule 10b-6A
under the Securities Exchange Act of 1934 or in stabilization or other
transactions affecting the market price.&nbsp; We are not aware of any intent by our
officers, directors or principal shareholders to purchase shares from selling
shareholders.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">It is
suggested to selling shareholders that, to avoid technical violations of
underwriting regulations, they should observe the prospectus delivery
requirement described herein and also consult with their legal counsel.&nbsp; These
suggestions do not constitute legal advice or any representation or warranty
that these are necessary or sufficient to comply with, or avoid enforcement
action (civil or criminal) for alleged violations of, any type of law.
Shareholders engaging in any direct or indirect transactions of any nature as to
any of Santos' securities do so at their own risk and expense.&nbsp; All sales should
be conducted through brokers or dealers, who should be given a copy of the
prospectus and advised of the SEC and NASD position that such sales may be
deemed to be part of a &quot;public distribution&quot; by statutory &quot;underwriters&quot;
(selling shareholders). No purchases of shares or other transactions having the
purpose or effect of affecting the price should be engaged in by or on behalf of
shareholders before or after the sale.&nbsp; Santos' public reporting status should
be brought to the brokers' or dealers' and buyers' attention.&nbsp; Updated
information about Santos will be in its reports to the SEC at http://www.sec.gov.&nbsp;
See &quot;Available Information&quot; near the end of the prospectus, for further details
on how to obtain copies of such reports.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Although
isolated resales often are exempt from state &quot;blue sky&quot; securities regulation
and registration requirements, and the reporting company status of an issuer
broadens the availability of resale exemptions, selling shareholders should be
cautious in view of their &quot;underwriter&quot; status in the eyes of the </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
17</p>
<hr noshade color="#808080"><p Style='page-break-before:always'><p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">SEC and
NASD.&nbsp; They are urged to consult qualified local securities counsel.&nbsp; Santos is
not undertaking, and it will be the selling shareholders' responsibility, to
file any necessary state exemption, qualification, or registration statements or
notices (such as Form U-1) and offering documents (such as this prospectus) if
needed for resales in a particular state.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The selling
shareholders may offer their shares of common stock at various times in one or
more of the following transactions: </p>
<ul>
	<li>
	<p class="MsoNormal" style="text-align: justify; text-indent: -.25in; margin-left: .25in; margin-right: 0in; margin-top: 6px; margin-bottom: .0001pt">
	in the over-the-counter market;</li>
	<li>
	<p class="MsoNormal" style="text-align: justify; text-indent: -.25in; margin-left: .25in; margin-right: 0in; margin-top: 6px; margin-bottom: .0001pt">
	in private transactions other than in the over-the-counter market;</li>
	<li>
	<p class="MsoNormal" style="text-align: justify; text-indent: -.25in; margin-left: .25in; margin-right: 0in; margin-top: 6px; margin-bottom: .0001pt">
	in connection with short sales of our shares;</li>
	<li>
	<p class="MsoNormal" style="text-align: justify; text-indent: -.25in; margin-left: .25in; margin-right: 0in; margin-top: 6px; margin-bottom: .0001pt">
	by pledge to secure debts and other obligations; or</li>
	<li>
	<p class="MsoNormal" style="text-align: justify; text-indent: -.25in; margin-left: .25in; margin-right: 0in; margin-top: 6px; margin-bottom: .0001pt">
	in a combination of any of the above transactions.</li>
</ul>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The selling
shareholders may sell their shares at market prices prevailing at the time of
the sale, at prices related to such prevailing market prices, at negotiated
prices or fixed prices.&nbsp; Until the shares of the Company are quoted for trading
on the OTCBB, the selling shareholders will sell their shares at a price of
$0.25 per share.&nbsp; After the shares of the Company are quoted for trading on the
OTCBB, the selling shareholders may sell their shares at the then market prices
on the OTCBB or privately negotiated prices, which may be less than or greater
than $0.25 per share.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The selling
shareholders may use brokers or dealers to sell their shares.&nbsp; Sales through
brokers or dealers may involve one or more of the following: </p>
<ul>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">block
	trades in which the broker or dealer so engaged will attempt to sell the
	selling shareholder's shares as agent but may position and resell a portion
	of the block as principal to facilitate the transaction;</li>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">purchases
	by a broker or dealer as principal and resale by such broker or dealer for
	its own account pursuant to this prospectus; or</li>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">ordinary
	brokerage transactions and transactions in which the broker solicits
	purchasers.</li>
</ul>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">If a broker or
dealer is engaged by a selling shareholder, such broker or dealer may either
receive discounts or commissions from the selling shareholders, or they will
receive commissions from purchasers of shares for whom they acted as agents.
Affiliates of one or more of the selling shareholders may act as principals or
agents in connection with the offer or sale of shares by selling shareholders.
</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Selling
shareholders also may resell all or a portion of the shares in open market
transactions in reliance upon Rule 144 under the Securities Act of 1933, as
amended, provided that they meet the criteria and conform to the requirements of
that Rule. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Selling
shareholders have been advised that during the time each is engaged in
distribution of the securities covered by this prospectus, to the extent
applicable, each must comply with Regulation M under the Securities Exchange Act
of 1934, as amended, and pursuant to such Regulation: </p>
<ul>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">shall not
	engage in any stabilization activity in connection with our securities;</li>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">shall
	furnish each broker through which securities covered by this prospectus may
	be offered the number of copies of this prospectus which are required by
	each broker; and</li>
</ul>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
18</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
<ul>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">shall not bid for or purchase any of our
	securities or attempt to induce any person to purchase any of our securities
	other than as permitted under the Securities Exchange Act of 1934, as
	amended.</p></li>
</ul>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The selling
shareholders and any brokers, dealers or agents that participate with the
selling shareholder in sales of the shares may be deemed to be underwriters
within the meaning of the Securities Act in connection with such sales and
subject to any liabilities under such Act.&nbsp; Any commissions received by such
brokers, dealers or agents and any profit on the resale of the shares purchased
by them may be deemed to be underwriting commissions or discounts under the
Securities Act.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Canadian Securities Law</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Selling
shareholders who are resident of a province other than British Columbia will
have to rely on available prospectus exemptions to resell their securities.&nbsp; If
they cannot rely on an available prospectus exemption, such non-British
Columbian Canadian residents may be subject to an indefinite hold period with
respect to their securities of Santos.&nbsp; All Canadian shareholders should consult
independent legal counsel with respect to ascertaining any available prospectus
exemptions for reselling their securities of Santos.&nbsp; Selling shareholders who
are residents of British Columbia may to rely on an exemption from prospectus
and registration requirements of B.C. securities laws to sell their shares,
which are being registered for resale by this prospectus.&nbsp; The selling
shareholders may rely on the B.C. Securities Commission's Instrument 72-502
&quot;Trade In Securities of U.S. Registered Issuers&quot; to comply with B.C. securities
laws to resell their shares.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">According to
BC Instrument 72-502, a B.C. resident who acquired securities under a prospectus
exemption in a company that is not a reporting issuer under the B.C. Securities
Act may sell those securities without filing a prospectus under the Act, if the
following conditions are met:</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The securities of the company are registered under section 12 of the
U.S. Securities Exchange Act of 1934, as amended, or the company is required to
file reports under section 15(d) of that Act.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The seller's residential address or registered office is in British
Columbia.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A 4-month period has passed since the date the company issued the
securities to the seller, or a control person sold the securities to the seller.
</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the seller is a control person of the company, then the seller has
held the securities for at least 6 months.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The number of securities the seller proposes to sell under BCI
72-502, plus the number of securities of the company of the same class that the
seller has sold in the preceding 12-month period, does not exceed 5% of the
company's outstanding securities of the same class.&nbsp;&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The seller sells the securities through a registered investment
dealer.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registered investment dealer executes the trade through an
exchange, or market, outside Canada. </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There has been no unusual effort made to prepare the market or create
a demand for the securities. </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(9)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The seller has not paid any extraordinary commission or other
consideration for the trade. </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(10)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the seller is an insider of the company, the seller reasonably
believes that the company is not in default of the securities legislation
(including U.S. federal and state securities legislation) that governs the
company.&nbsp; </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
19</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Legal Proceedings</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We are not
currently a party to, nor is any of our property currently the subject of, any
pending legal proceeding.&nbsp; None of our directors, officers or affiliates is
involved in a proceeding adverse to our business or has a material interest
adverse to our business.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our agent for
service of process is Business First Formations, Inc., of 3990 Warren Way, Reno,
Nevada&nbsp; USA 89509.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Directors, Executive Officers, Promoters And Control
Persons</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Executive Officers And Directors</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The following
table sets forth the directors and executive officers of our Company, their
ages, term served and all officers and positions with our Company.&nbsp; Pursuant to
our bylaws, our directors are elected at our annual meeting of stockholders and
each director holds office until his successor is elected and qualified.&nbsp;
Officers are elected by our Board of Directors and hold office until an
officer's successor has been duly appointed and qualified unless an officer
sooner dies, resigns or is removed by the Board.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There are no
arrangements or understandings regarding the length of time a director of our
company is to serve in such a capacity.</p>
<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">
	<tr>
		<td width="45%" valign="top" style="width:45.0%;border:inset black .75pt;
  padding:2.25pt 2.25pt 2.25pt 2.25pt">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in;page-break-after:avoid"><font size="2">Name </font></td>
		<td width="10%" valign="top" style="width: 10.0%; border-left: medium none; border-right: .75pt inset black; border-top: .75pt inset black; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Age</font></td>
		<td width="45%" valign="top" style="width: 45.0%; border-left: medium none; border-right: .75pt inset black; border-top: .75pt inset black; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Position</font></td>
	</tr>
	<tr>
		<td width="45%" valign="top" style="width: 45.0%; border-left: .75pt inset black; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Richard Pierce</font></td>
		<td width="10%" valign="top" style="width: 10.0%; border-left: medium none; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">47</font></td>
		<td width="45%" valign="top" style="width: 45.0%; border-left: medium none; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Director and President, Secretary and
		Treasurer </font></td>
	</tr>
	<tr>
		<td width="45%" valign="top" style="width: 45.0%; border-left: .75pt inset black; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Shih-Yi Chuang</font></td>
		<td width="10%" valign="top" style="width: 10.0%; border-left: medium none; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">30</font></td>
		<td width="45%" valign="top" style="width: 45.0%; border-left: medium none; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Director</font></td>
	</tr>
	<tr>
		<td width="45%" valign="top" style="width: 45.0%; border-left: .75pt inset black; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Andrew Lee Smith</font></td>
		<td width="10%" valign="top" style="width: 10.0%; border-left: medium none; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">52</font></td>
		<td width="45%" valign="top" style="width: 45.0%; border-left: medium none; border-right: .75pt inset black; border-top: medium none; border-bottom: .75pt inset black; padding: 2.25pt">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Director</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Set forth
below is a brief description of the background and business experience of our
current executive officers and directors: </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Richard
Pierce</b> has been a Director, President and Secretary-Treasurer of the Company
since September&nbsp;13, 2006.&nbsp; Mr. Pierce is also presently the President and CEO of
GFR Pharma Ltd. (since 1998), GFR Health Ltd. (since 1998) and Biologic
Nutritional Resources Inc. (since 2006).&nbsp; GFR Pharma is a contract manufacturer
of Nutraceutical products, GFR Health distributes Nutraceutical products for the
human market, and Biologic distributes nutraceuticals for the pet (animal)
market.&nbsp; Mr. Pierce was also President and CEO of GFR Pharmaceuticals Inc. (from
2000 to 2006), a Nevada company whose shares are quoted on the NASD OTC Bulletin
Board.&nbsp; Mr. Pierce is also presently a director of Starfire Minerals Inc., a
British Columbia company whose shares are listed on the TSX Venture Exchange,
and the Berlin, Frankfurt and Struttgart Stock Exchanges in Germany.&nbsp; Starfire
is also an exploration company with mineral properties and projects in Ontario
and British Columbia.&nbsp; Mr.&nbsp;Pierce is one of five directors of Starfire, and in
the event of a conflict, Mr. Pierce will abstain from voting on a directors
resolution in both Santos and Starfire.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Shih-Yi
Chuang</b> has been a Director of the Company since June 26, 2007.&nbsp; Mr. Chuang
has been working in the investment field as a wealth management advisor for
Cathay Life in Taiwan since 2001.&nbsp; Mr. Chuang is currently an assistant manager
in the wealth management division and as one of the largest life insurance
companies in Asia, Mr. Chuang's experience includes working with some of Cathay
Life's largest clients advising them on insurance and equity investment
strategies.&nbsp; Mr. Chuang is also heavily involved in training Cathay Life
advisors and giving speeches on investing for Cathay Life.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
20</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Mr.
Chuang holds a Masters Degree in Information Management in 2001 from Trans World
University in Tai-Nai, Taiwan.&nbsp; Presently, Mr. Chuang is not on the board of any
public companies, although he has previously served as a director of public
companies.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Andrew Lee
Smith</b>, B.Sc., P.Geo., has been a Director of the Company since May 24,
2006.&nbsp; Mr. Smith was
the President of the Company from May 24, 2006 to September 13, 2006.&nbsp; Mr. Smith has over 20 years of experience in exploring, developing and
operating North American base and precious metal mining projects.&nbsp; He is
presently the President of Iron Mask Exploration Ltd., a Vancouver-based
corporate and geological management firm that consults to the mining industry.&nbsp;
Mr. Smith is also presently Chief Executive Officer and a director of Canaco
Resources Inc., and Chief Executive Officer, President and a director of True
North Gems, both companies listed on the TSX Venture Exchange.&nbsp; Mr.&nbsp;Smith is
also a director of Daytona Energy Corp. and Cincoro Capital Corp., companies
listed on the TSX Venture Exchange; and a director of Candente Resource Corp., a
company listed on the Toronto Stock Exchange.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Mr. Smith
holds a Hons. BSc in Earth Sciences from the University of Waterloo and is a
professional geologist. He has been a registered member of the Association of
Professional Engineers and Geoscientists of British Columbia since January
2001.&nbsp; Prior to this date, he was a Fellow of the Geological Association of
Canada and the Society of Economic Geologists.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We intend to
rely on Mr. Smith to provide the expertise in geological exploration in order
for us to carry our planned exploration program.&nbsp; If we do retain the services
of Mr. Smith, we will compensate Mr.&nbsp;Smith at the public going rate.&nbsp; However,
Mr. Smith may not be able to devote sufficient time to our exploration program,
as and when needed.&nbsp; We may need to rely on the technical services of others
with expertise in geological exploration in order for us to carry our planned
exploration program.&nbsp; We have not contracted with any geologist to assist with
the exploration programs.&nbsp; At the right time, we will hire from the available
pool of contract geologists depending on the time of the year and availability
of experience.&nbsp; Presently, there are no other agreements or understandings to
hire such geologists or engineers.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">During our
early stages of business development, our President intends to devote
approximately 10 hours per week of his time to our business.&nbsp; If, however, the
demands of our business require more business time, such as raising additional
capital or addressing unforeseen issues with regard to our plan of operations,
he is prepared to adjust his timetable to devote up to 15 hours a week on our
business in furtherance of our plan of operations.&nbsp; However, Mr. Pierce may not
be able to devote sufficient time to the management of our business, as and when
needed.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Executive Compensation</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Presently, we
do not pay our directors or officers any salary or consulting fees.&nbsp; Our
directors and executive officer do not currently receive and have never received
any compensation for serving as a director or executive officer of the Company.&nbsp;
In addition, at present, there are no ongoing plans or arrangements for
compensation of any of our officers.&nbsp; Presently, there are no plans or
agreements for compensation of our officers and directors even if certain
milestones are achieved in the business plan.&nbsp; However, we expect to adopt a
plan of reasonable compensation to our officers and employees when and if we
become operational and profitable.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The following
table sets forth all compensation awarded to, earned by, or paid for services
rendered to us in all capacities during the period ended February 29, 2008, by
Mr. Richard Pierce, our sole executive officer, and our directors.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
21</p>
<hr noshade color="#808080"><p Style='page-break-before:always'><p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Summary Compensation Table </b></p>
<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">

		<tr>
			<td width="30%" valign="top" style="width:30.22%;border:solid windowtext .5pt;
   border-bottom:none;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" style="margin-top:3.0pt;page-break-after:avoid">
			<font size="2">&nbsp;</font></td>
			<td width="36%" colspan="2" valign="top" style="width: 36.28%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;text-align:center">
			<font size="2">Compensation - February 29, 2008 </font></td>
			<td width="33%" valign="top" style="width: 33.5%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: medium none; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;text-align:center">
			<font size="2">($) Number of shares Underlying </font></td>
		</tr>
		<tr>
			<td width="30%" valign="top" style="width:30.22%;border:solid windowtext .5pt;
   border-top:none;padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" style="margin-bottom:3.0pt;page-break-after:avoid">
			<font size="2">Name and Principal Position</font></td>
			<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-bottom:3.0pt;text-align:center">
			<font size="2">Salary</font></td>
			<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-bottom:3.0pt;text-align:center">
			<font size="2">($) Bonus</font></td>
			<td width="33%" valign="top" style="width: 33.5%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-bottom:3.0pt;text-align:center">
			<font size="2">Options (#)</font></td>
		</tr>

	<tr>
		<td width="30%" valign="top" style="width: 30.22%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Richard Pierce<br>
		President, Secretary and Treasurer</font></td>
		<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
		<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
		<td width="33%" valign="top" style="width: 33.5%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;page-break-after:avoid"><b>
Director Compensation Table</b></p>
<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">

		<tr>
			<td width="30%" valign="bottom" style="width:30.22%;border:solid windowtext .5pt;
   padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">Name</font></td>
			<td width="18%" valign="bottom" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Fees
			Earned or Paid in Cash<br>
			($)</font></td>
			<td width="18%" valign="bottom" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Stock
			Awards or Options <br>
			(#)</font></td>
			<td width="33%" valign="bottom" style="width: 33.5%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">All
			other Compensation All other Compensation <br>
			($)</font></td>
		</tr>

	<tr>
		<td width="30%" valign="top" style="width: 30.22%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Richard Pierce</font></td>
		<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
		<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
		<td width="33%" valign="top" style="width: 33.5%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
	</tr>
	<tr>
		<td width="30%" valign="top" style="width: 30.22%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Shih-Yi Chuang</font></td>
		<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
		<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
		<td width="33%" valign="top" style="width: 33.5%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
	</tr>
	<tr>
		<td width="30%" valign="top" style="width: 30.22%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Andrew Lee Smith </font></td>
		<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
		<td width="18%" valign="top" style="width: 18.14%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
		<td width="33%" valign="top" style="width: 33.5%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">None</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We do not
presently have a stock option plan but intend to develop an incentive based
stock option plan for our officers and directors in the future and may reserve
up to 20% of our outstanding shares of common stock for that purpose.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Significant Personnel</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have no
significant personnel other than our officers and directors.&nbsp; We presently rely
on consultants and other third party contractors to perform administrative and
geological services for the Company.&nbsp; We have no formal contracts with any of
these consultants and contractors.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Committees of the Board of Directors</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The functions
of the audit committee are currently carried out by our Board of Directors.&nbsp; We
do not have an audit committee or financial expert on our Board carrying out the
duties of the audit committee.&nbsp; Our Board has determined that we do not need
such an expert because we are a start-up exploration company and have no
revenue.&nbsp; The cost of hiring a financial expert to act as a director of Santos
and to be a member of the audit committee or otherwise perform audit committee
functions outweighs the benefits of having a financial expert on the audit
committee.&nbsp; We do not have a compensation committee, nominating committee, an
executive committee of our board of directors, stock plan committee or any other
committees.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Code of
Ethics </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have
adopted a code of ethics that applies to our Chief Executive Officer, Chief
Financial Officer, Principal Executive Officer, Principal Financial Officer,
Principal Accounting Officer, Controller and persons performing similar
functions within the Company.&nbsp; A copy of the code of ethics is filed with the
SEC as an exhibit to this registration statement and a copy may also be obtained
without charge by contacting the Secretary of the Company at 11450 - 201A
Street, Maple Ridge, British Columbia, Canada&nbsp; V2X 0Y4.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Involvement in certain legal proceedings </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">None of our
directors, executive officers, promoters or control persons has been involved in
any of the following events during the past five years: </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
22</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;
&nbsp;<ul>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">any bankruptcy petition
	filed by or against any business of which such person was a general partner
	or executive officer either at the time of the bankruptcy or within two
	years prior to that time; </p></li>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">any conviction in a
	criminal proceeding or being subject to a pending criminal proceeding
	(excluding traffic violations and other minor offences); </p></li>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">being subject to any
	order, judgment, or decree, not subsequently reversed, suspended or vacated,
	of any court of competent jurisdiction, permanently or temporarily
	enjoining, barring, suspending or otherwise limiting his involvement in any
	type of business, securities or banking activities; or </p></li>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">found by a court of
	competent jurisdiction (in a civil action), the Commission or the Commodity
	Futures Trading Commission to have violated a federal or state securities or
	commodities law, and the judgment has not been reversed, suspended, or
	vacated.</p></li>
</ul>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Security Ownership Of Certain Beneficial Owners And
Management</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The following
table sets forth certain information as of July 9, 2008, with respect to the
beneficial ownership of our company's common stock with respect to each named
director and executive officer of our Company, each person known to our Company
to be the beneficial owner of more than five percent (5%) of said securities,
and all directors and executive officers of our Company as a group.&nbsp; Unless
otherwise indicated, the address for each listed person is c/o Santos Resource
Corp., 11450 - 201A Street, Maple Ridge, British Columbia&nbsp; V2X 0Y4.</p>
<p class="MsoNormal">&nbsp;</p>
<table border="1" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse; border: medium none">

		<tr>
			<td width="42%" valign="bottom" style="width:42.4%;border:solid windowtext .5pt;
   padding:0in 5.4pt 0in 5.4pt">
			<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
   3.0pt;margin-left:0in"><font size="2">Name and Address</font></td>
			<td width="15%" valign="bottom" style="width: 15.16%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Title
			of Class</font></td>
			<td width="24%" valign="bottom" style="width: 24.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Amount
			and Nature of Beneficial Ownership</font></td>
			<td width="18%" valign="bottom" style="width: 18.18%; border-left: medium none; border-right: .5pt solid windowtext; border-top: .5pt solid windowtext; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
			<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
   margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
			Percentage <br>
			of Class </font><sup><font size="2">(1)</font></sup></td>
		</tr>

	<tr>
		<td width="42%" valign="top" style="width: 42.4%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Richard Pierce<br>
		President, Secretary &amp; Treasurer and Director</font></td>
		<td width="15%" valign="top" style="width: 15.16%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Common</font></td>
		<td width="24%" valign="top" style="width: 24.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
		7,022,000 </font></td>
		<td width="18%" valign="top" style="width: 18.18%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">21.9%</font></td>
	</tr>
	<tr>
		<td width="42%" valign="top" style="width: 42.4%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Shih-Yi Chuang<br>
		Director</font></td>
		<td width="15%" valign="top" style="width: 15.16%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Common</font></td>
		<td width="24%" valign="top" style="width: 24.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
		7,022,000 </font></td>
		<td width="18%" valign="top" style="width: 18.18%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">21.9%</font></td>
	</tr>
	<tr>
		<td width="42%" valign="top" style="width: 42.4%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">Andrew Lee Smith <br>
		Director</font></td>
		<td width="15%" valign="top" style="width: 15.16%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Common</font></td>
		<td width="24%" valign="top" style="width: 24.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
		7,182,000 </font></td>
		<td width="18%" valign="top" style="width: 18.18%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">22.4%</font></td>
	</tr>
	<tr>
		<td width="42%" valign="top" style="width: 42.4%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">David W. Smalley<br>
		Vancouver, BC </font></td>
		<td width="15%" valign="top" style="width: 15.16%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Common</font></td>
		<td width="24%" valign="top" style="width: 24.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
		3,104,000</font></td>
		<td width="18%" valign="top" style="width: 18.18%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">9.7%</font></td>
	</tr>
	<tr>
		<td width="42%" valign="top" style="width: 42.4%; border-left: .5pt solid windowtext; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" style="margin-top:3.0pt;margin-right:0in;margin-bottom:
  3.0pt;margin-left:0in"><font size="2">All officers &amp; directors as a group (3
		persons)</font></td>
		<td width="15%" valign="top" style="width: 15.16%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">Common</font></td>
		<td width="24%" valign="top" style="width: 24.24%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">
		21,226,000 </font></td>
		<td width="18%" valign="top" style="width: 18.18%; border-left: medium none; border-right: .5pt solid windowtext; border-top: medium none; border-bottom: .5pt solid windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="center" style="margin-top:3.0pt;margin-right:0in;
  margin-bottom:3.0pt;margin-left:0in;text-align:center"><font size="2">66.2%</font></td>
	</tr>
</table>
</FONT>

<FONT FACE="Arial" SIZE=1>
<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in">(1)&nbsp;&nbsp; The percentage
of class is based on 32,076,500 shares of common stock outstanding as of the
date hereof.</p>
</FONT>

<FONT FACE="Arial" SIZE=2>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The persons
named above have full voting and investment power with respect to the shares
indicated. Under the rules of the Securities and Exchange Commission, a person
(or group of persons) is deemed to be a &quot;beneficial owner&quot; of a security if he
or she, directly or indirectly, has or shares the power to vote or to direct the
voting of such security, or the power to dispose of or to direct the disposition
of such security. Accordingly, more than one person may be deemed to be a
beneficial owner of the same security. A person is also deemed to be a
beneficial owner of any security, which that person has the right to acquire
within 60 days, such as options or warrants to purchase our common stock.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Description of Capital Stock</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The shares
registered pursuant to this registration statement are shares of common stock,
all of the same class and entitled to the same rights and privileges as all
other shares of common stock.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
23</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Common Stock</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Santos is
presently authorized to issue 75,000,000 shares of common stock, with a par
value of $0.001 per share.&nbsp; As of the date hereof, there were 32,076,500 shares
of our common stock issued and outstanding, held by 41 stockholders of record.
</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our common
stock is entitled to one vote per share on all matters submitted to a vote of
the stockholders, including the election of directors. Except as otherwise
required by law or provided in any resolution adopted by our board of directors
with respect to any series of preferred stock, the holders of our common stock
will possess all voting power. Generally, all matters to be voted on by
stockholders must be approved by a majority (or, in the case of election of
directors, by a plurality) of the votes entitled to be cast by all shares of our
common stock that are present in person or represented by proxy, subject to any
voting rights granted to holders of any preferred stock. Holders of our common
stock representing ten-percent (10%) of our capital stock issued, outstanding
and entitled to vote, represented in person or by proxy, are necessary to
constitute a quorum at any meeting of our stockholders. A vote by the holders of
a majority of our outstanding shares is required to effectuate certain
fundamental corporate changes such as liquidation, merger or an amendment to our
Articles of Incorporation. Our Articles of Incorporation do not provide for
cumulative voting in the election of directors.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Subject to any
preferential rights of any outstanding series of preferred stock created by our
board of directors from time to time, the holders of shares of our common stock
will be entitled to such cash dividends as may be declared from time to time by
our board of directors from funds available therefore. See &quot;Dividend Policy.&quot;
</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Subject to any
preferential rights of any outstanding series of preferred stock created from
time to time by our board of directors, upon liquidation, dissolution or winding
up of Santos, the holders of shares of our common stock will be entitled to
receive pro rata all assets of Santos available for distribution to such
holders. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In the event
of any merger or consolidation of our company with or into another company in
connection with which shares of our common stock are converted into or
exchangeable for shares of stock, other securities or property (including cash),
all holders of our common stock will be entitled to receive the same kind and
amount of shares of stock and other securities and property (including cash).
</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Holders of our
common stock have no pre-emptive rights, no conversion rights and there are no
redemption provisions applicable to our common stock.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Preferred
Stock</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">As of the date
hereof, Santos has no preferred stock authorized or issued.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Dividend Policy </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have never
declared or paid any cash dividends on our common stock. We currently intend to
retain future earnings, if any, to finance the expansion of our business. As a
result, we do not anticipate paying any cash dividends in the foreseeable
future. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Share
Purchase Warrants</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have not
issued and do not have outstanding any warrants to purchase shares of our common
stock.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Options</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have not
issued and do not have outstanding any options to purchase shares of our common
stock. </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
24</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>
Convertible Securities</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have not
issued and do not have outstanding any securities convertible into shares of our
common stock or any rights convertible or exchangeable into shares of our common
stock. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Nevada Anti-Takeover laws </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Nevada revised
statutes sections 78.378 to 78.3793 provide state regulation over the
acquisition of a controlling interest in certain Nevada corporations unless the
articles of incorporation or bylaws of the corporation provide that the
provisions of these sections do not apply.&nbsp; Our articles of incorporation state
that these provisions do not apply.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Combinations with Interested Stockholders</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Nevada revised
statues sections 78.411 to 78.444 provide state regulations over combination
with the interested stockholder or any corporation, which is, or after the
merger or consolidation, would be, an affiliate or associate of the interested
stockholder, unless the articles of incorporation or bylaws of the corporation
provide that the provisions of those sections do not apply.&nbsp; Our articles of
incorporation state that these provisions do not apply.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Interests of Named Experts and Counsel</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">David W.
Smalley is counsel for Santos, owns 3,104,000 shares of common stock of Santos
and is named as a Selling Shareholder in this prospectus.&nbsp; Mr. Smalley is also a
partner of Fraser and Company LLP, a law firm that has provided an opinion on
the validity of our common stock offered by the Selling Shareholders.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Except as
described above, no experts or counsel named in this prospectus as having
prepared or certified any part of this prospectus or having given an opinion
upon the validity of the securities being registered or upon other legal matters
in connection with the registration or offering of the common stock was employed
on a contingency basis, or had, or is to receive, in connection with the
offering, a substantial interest exceeding $50,000, direct or indirect, in
Santos.&nbsp; Nor was any such person connected with Santos as a promoter, managing
or principal underwriter, voting trustee, director, officer, or employee.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Legal Matters</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Fraser and
Company LLP has provided an opinion on the validity of our common stock offered
by the Selling Shareholders.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>Experts</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">MacKay LLP,
Chartered Accountants (&quot;MacKay&quot;), our independent registered public accounting
firm, has audited our financial statements included in this prospectus and
registration statement to the extent and for the period set forth in their audit
report. MacKay has presented their report with respect to our audited financial
statements.&nbsp; The report of MacKay is included in reliance upon their authority
as experts in accounting and auditing.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There have not
been any changes in or disagreements with our accountants on accounting and
financial disclosure or any other matter.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
25</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Market For Common Equity and Related Stockholder
Matters</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>No Public
Market for Common Stock </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There is
presently no public market for our common stock.&nbsp; We anticipate making an
application for trading of our common stock on the OTCBB upon the effectiveness
of the registration statement of which this prospectus forms a part.&nbsp; We are
qualifying for resale up to 13,836,500 common shares pursuant to this
registration statement.&nbsp; However, we can provide no assurance that our shares
will be traded on the bulletin board or, if traded, that a public market will
materialize. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>New Rule
144</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Santos is
presently a &quot;shell company&quot; as defined under Rule 405 of the Securities Act and
Rule 12b-2 of the Exchange Act.&nbsp; Effective February 15, 2008, the SEC amended
Rule 144 of the Securities Act of 1933, which do not allow shareholders to rely
on Rule 144 for the resale of securities of a shell company.&nbsp; Shareholders may
only rely on new Rule 144 if Santos ceases to be a shell company and only if all
of the following conditions are met:&nbsp; the issuer has ceased to be a shell
company; the issuer is subject to the reporting requirements of the Exchange
Act; the issuer has filed all Exchange Act reports required for the past 12
months; and at least one year has elapsed from the time that the issuer filed
current Form 10 information on Form 8-K changing its status to a non-shell
company.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">If Santos is
defined as not a &quot;shell company&quot;, a total of 18,240,000 shares of our restricted
common stock will be available for resale to the public, in accordance with the
volume and trading limitations of new Rule 144.&nbsp; Also pursuant to the amended
provisions of Rule 144, following the six-month holding period but before one
year after their acquisition of the securities, a person who is not an affiliate
and has not been an affiliate for at least three months prior to the sale, will
be able to make unlimited public resales under Rule 144 except that the current
public information requirement will still apply.&nbsp; After the one-year holding
period, such non-affiliates may make unlimited public resales under Rule 144 and
need not comply with any other Rule 144 requirements.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">If Santos is
not a &quot;shell company&quot;, then under the new Rule 144, a person who has
beneficially owned shares for at least six months is entitled to sell, within
any three-month period, a number of shares that does not exceed the greater of
(1) one percent of the then outstanding shares of common stock, which in our
case is 320,765 shares as of the date of this prospectus; or (2) the average
weekly trading volume in the common stock in the over-the-counter market during
the four calendar weeks preceding the date on which notice of the sale is filed,
provided several requirements concerning availability of public information,
manner of sale and notice of sale are satisfied. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The one year
and six month holding periods described above do not begin to run until the full
purchase price or other consideration is paid by the person acquiring the shares
from the issuer or an affiliate.&nbsp; <b>However, we are a &quot;shell company&quot; and
shareholders holding restricted stock cannot rely on Rule 144 to resell their
restricted shares.&nbsp; </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Penny Stock
Regulation</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our shares
will have to comply with the Penny Stock Reform Act of 1990, which may
potentially decrease your ability to easily transfer our shares. Broker-dealer
practices in connection with transactions in &quot;penny stocks&quot; are regulated. Penny
stocks generally are equity securities with a price of less than $5.00. The
penny stock rules require a broker-dealer, prior to a transaction in a penny
stock not otherwise exempt from the rules, to deliver a standardized risk
disclosure document that provides information about penny stocks and the risks
in the penny stock market. The broker-dealer also must provide the customer with
current bid and offer quotations for the penny stock, the compensation of the
broker-dealer and its salesperson in the transaction, and monthly account
statements showing the market value of each penny stock held in the customer's
account. In addition, the penny stock rules generally require that prior to a
transaction in a penny stock, the broker-dealer make a special written
determination that the penny stock </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
26</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">is a
suitable investment for the purchaser and receive the purchaser's written
agreement to the transaction. These disclosure requirements may have the effect
of reducing the level of trading activity in the secondary market for a stock
that has to comply with the penny stock rules. As our shares immediately
following this offering will likely have to comply with such penny stock rules,
investors in this offering will in all likelihood find it more difficult to sell
their securities.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Holders</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There are 41
shareholders of record for the common shares.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Dividends</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">No dividends
have been declared on the common shares as of the date hereof.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Disclosures
of Commission Position on Indemnification for Securities Act Liabilities</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Insofar as
indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In the event
that a claim for indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>Transactions with Related Persons</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">On June 19,
2007, we issued 24,170,000 shares of our common stock to Richard Pierce,
Shih-Yi Chuang and Andrew Lee Smith, our directors and officers, at $0.0005 per
share and an aggregate proceeds of $12,085.&nbsp; Also on June 19, 2007, we
issued 1,150,000 shares of common stock $0.0005 per share to RoseMarie Pierce,
sister of our sole officer and a director Richard Pierce.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">On June 25,
2007, we entered into a Property Option Agreement with Starfire Minerals Inc.
that allows us to acquire a 75% interest in and to the Lourdeau Claims.&nbsp;
Pursuant to the Property Option Agreement we paid Starfire $10,582 (CAD$10,000)
and issued 75,000 shares of common stock to Starfire.&nbsp; Under the Property Option
Agreement we are obligated to incur $50,000 of expenditures on Lourdeau Property
or pay Starfire 50% in cash and 50% in shares.&nbsp; One of the directors of Starfire
is Richard Pierce, our President, Secretary-Treasurer and a director.&nbsp; The
75,000 shares have a deemed value of $11,250.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">On July 16,
2007, we entered into a services retainer agreement with Fraser and Company LLP,
to provide legal services to Santos.&nbsp; David Smalley, a partner of Fraser and
Company LLP, owns 3,104,000 shares of common stock of Santos.&nbsp; Pursuant to the
agreement, Fraser and Company LLP will provide legal services in connection with
the organization and set up of Santos and the preparation and filing of a
registration statement with the SEC for a fee of approximately $50,000
(CAD$50,000).&nbsp; An initial payment of $30,000 (CAD$30,000) is payable on filing
of the initial registration statement, and the balance of $20,000 (CAD$20,000)
is payable upon the registration statement being declared effective by the SEC.&nbsp;
</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">On February 1,
2008, we issued 160,000 shares of common stock at $0.15 per share, to Andrew Lee
Smith, a director of Santos.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
27</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have
no formal written employment agreement or other contracts with our officers, and
there is no assurance that the services to be provided by them, and facilities
to be provided by Mr. Pierce, will be available for any specific length of time
in the future.&nbsp; Mr. Pierce anticipates initially devoting up to approximately 10
hours a week of his business time to the affairs of our Company. If and when the
business operations of our company increase and a more extensive time commitment
is needed, Mr.&nbsp;Pierce is prepared to devote up to 15 hours a week in the event
that becomes necessary. The amounts of compensation and other terms of any full
time employment arrangements with our Company would be determined if and when
such arrangements become necessary.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Business</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>History and Organization</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Santos was
incorporated under the laws of the state of Nevada on May 24, 2006.&nbsp; We have not
commenced business operations and we are considered an exploration stage
company.&nbsp; We are defined as a &quot;shell company&quot; under the Rule 405 of the
Securities Act and Rule 12b-2 of the Exchange Act because we have nominal
operations and nominal assets. To date, our activities have been limited to
organizational matters, obtaining a geological report on the Lourdeau Claims and
the preparation and filing of the registration statement of which this
prospectus is a part.&nbsp; In connection with the organization of our Company, the
founding shareholders of our Company contributed an aggregate of $15,520 cash in
exchange for a total of 31,040,000 shares of common stock.&nbsp; In January 2008, we
raised another $144,225 from 32 BC resident placees by issuing 961,500 shares of
common stock.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Property Option Agreement</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Under the
Property Option Agreement entered into in June 2007, we acquired an option to
acquire a 75% interest in and to 18 mineral claims called the Lourdeau Claims
from Starfire Minerals Inc., the registered owner of the Lourdeau Claims.&nbsp; The
Lourdeau Claims consist of 18 mineral claims covering approximately 900.75
hectares (9.01km<sup>2</sup>), located in the La Grande geological area of
Quebec in the James Bay Territory about 620 miles (1,000 km) north of Montreal,
Quebec.&nbsp; The following table sets forth the details of the claims. </p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">

		<tr>
			<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
			<p class="MsoNormal" align="center" style="text-align:center"><b>
			<font size="2">Title No.</font></b></td>
			<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
			<p class="MsoNormal" align="center" style="text-align:center"><b>
			<font size="2">Surface Area in Ha</font></b></td>
			<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
			<p class="MsoNormal" align="center" style="text-align:center"><b>
			<font size="2">Titleholder</font></b></td>
			<td width="24%" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
			<p class="MsoNormal" align="center" style="text-align:center"><b>
			<font size="2">Expiry Date</font></b></td>
		</tr>

	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87500*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50,03</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87501*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.03</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87502*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.03</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87503*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.03</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87504*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.03</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87505*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.04</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87506*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.04</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87507*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.04</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87508*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.04</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87509*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.04</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87510*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.05</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87511*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.05</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87512*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.05</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87513*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.05</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87514*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.05</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87515*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.05</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87516*</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">50.05</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">CDC87517</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">51.05</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Starfire Minerals Inc.</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">2009/07/18</font></td>
	</tr>
	<tr>
		<td width="30%" style="width:30.34%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">*Decree no. 241-86</font></td>
		<td width="21%" style="width:21.44%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">&nbsp;</font></td>
		<td width="24%" valign="top" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">&nbsp;</font></td>
		<td width="24%" style="width:24.12%;padding:0in 1.5pt 0in 1.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">&nbsp;</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Under the
Property Option Agreement, Starfire Minerals Inc. has a 3% Net Smelter Return (&quot;NSR&quot;)
royalty interest in the Lourdeau Claims, if and when Santos exercises its option
to acquire a 75% interest in the Lourdeau Claims by making the required cash and
share payments.&nbsp; NSR means the actual </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
28</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">proceeds
received from the sale of ore, metals or concentrated products from the Lourdeau
Property derived from commercial production as recorded by the producer and net
of any smelting and refining charges, penalties, costs of transportation of
ores, metals or concentrates from the Lourdeau Property to any mint, smelter or
other purchaser, cost of insurance of the products, and any export and import
taxes levied with respect to production from the Lourdeau Property.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Santos also
has the right to purchase up to two-thirds of the NSR royalty (i.e. 2% of the
NSR royalty) on the basis of $100,000 for each 0.1% of the NSR royalty (i.e.
$100,000 per 0.1% NSR royalty) acquired on the first one-half of the NSR
royalty, and $150,000 for each 0.1% of the NSR royalty (i.e. $150,000 per 0.1%
NSR royalty) thereafter for the remaining NSR royalty (i.e. the remaining 1% NSR
royalty).&nbsp; To exercise its option to purchase the NSR royalty or any portion
thereof, Santos must provide Starfire with at least 30 days advance written
notice of its intention to do so, and must close upon each purchase within 60
days of each notice.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Under the
Property Option Agreement, Santos is required to make all filings related to the
Lourdeau Property and to maintain the Lourdeau Claims in good standing by
preparing and filing the assessment reports, paying taxes and keeping the
Lourdeau Property free and clear of all liens and encumbrances.&nbsp;
As of the date hereof, all required filings have been
made to maintain the 18 mineral claims in good standing until July 18, 2009.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In order to
exercise the Option and to earn its 75% interest in the Property, Santos has to
pay Starfire $10,582 (CAD$10,000) in cash payment and issue 75,000 shares to
Starfire, and incur an aggregate of $50,000 (CAD$50,000) in expenditures before
September 30, 2009, within the following time schedule:</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pay $10,582 (CAD$10,000) upon signing of the Property Option
Agreement (paid);</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; issue and deliver 75,000 shares within 10 business days of the date
of approval of the Property Option Agreement by the board of directors of Santos
(issued); </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; incur $25,000 (CAD$25,000) of expenditures on the Lourdeau Property
on or before September 30, 2008; and</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; incur $25,000 (CAD$25,000) of expenditures on the Lourdeau Property
between July 25, 2008 to July 25, 2009. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Any shares
delivered, cash payments made, or expenditures incurred toward the option price
that is over and above that required to be made .&nbsp; During a particular time
shall be carried forward and applied against the required payment in subsequent
periods.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">If Santos does
not incur the full amount of expenditures within the set time period, Santos
may, within 45 days after the end of the period, pay Starfire the outstanding
balance to be incurred for that specific year by way of 50% cash and 50%
shares.&nbsp; After these payments, the option from Starfire remains in good standing
and Santos will be deemed to have acquire 75% of the Lourdeau Claims from
Starfire.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Specifically,
we anticipate spending the following over the next 12 months:</p>
<ul>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">$22,000
	for operating expenses and $58,800 for payment of offering expenses related
	to this Registration Statement; and</li>
	<li>
	<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">$107,570
	(CAD$107,570) in connection with the completion of our recommended
	geological work program.</li>
</ul>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We expect our
total expenditures for the next 12 months to be in the range of $105,800 (if we
pay Starfire the required expenditures by way of 50% cash and 50% shares) to
$190,000 (if we carry out the exploration program).&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
29</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In the
event Santos earns a 75% interest in the Lourdeau Property, Starfire and Santos
agree to negotiate in good faith the terms and conditions of entering into a
joint venture agreement to carry out further exploration and mining activities
on the Lourdeau Property, with the intention that all costs and profits will be
split proportionately the by the parties according to their ownership of the
property.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Technical Report on Properties</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Mr. Michel
Boily, Ph.D., P. Geo. was hired by Santos to provide a Technical Report in July
2007 on the Lourdeau Claims.&nbsp; Mr. Boily has been continuously practicing in his
profession as a geologist since 1988, and is a specialist of granitoid-hosted
precious and rare metal deposits in Quebec.&nbsp; He graduated from the University of
Montreal (1988) in Quebec, Canada, with a PhD in geology.&nbsp; He is a registered
Professional Geologist in good standing with l'Ordre des Geologues du Quebec
(permit no. 1097).&nbsp; Mr.&nbsp;Boily does not have any interest in the Lourdeau
Property or the Company.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
Mr. Boily does not have any interest in the Lourdeau
Property or the Company.&nbsp; The report is based on published and private reports,
maps and data provided by the Company and in the public domain.&nbsp; Mr. Boily's
report details the geological and exploration history of the Lourdeau Property,
including the land status, climate, geology and mineralization.&nbsp; Based upon
previous exploration activity in the area, Mr. Boily recommends the Company
conduct a specific exploration program on the Lourdeau Property.&nbsp; The
purpose of this report was to evaluate the area of the claim group, and the
prior exploration work conducted on the claims, and to recommend an exploration
program. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Recommended Exploration Program</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Mr. Boily
recommends a systemic surface sampling program of the Lourdeau Vein site and its
vicinity, and the northern edge of the Lourdeau Hill, incorporating grab and
channel sampling, in order to get a solid geochemical assay database.&nbsp; Mr. Boily
recommends obtaining a helicopter-borne geophysical survey to cover the rest of
the Lourdeau Property.&nbsp; Mr. Boily recommends the geophysical magnetic and
radiometric surveys to be done on a 100 m spaced grid.&nbsp; This program is
estimated to cost approximately $107,570.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Depending on
the results of this program, the next phase could involve a drilling campaign
which would define the targets acquired during the geophysical surveys and
sampling campaign.&nbsp; The focus of the drilling will be the uranium-mineralized
sandstones at the Lourdeau Hill, with the gold, copper and silver-mineralized
metavolcanic constituting secondary targets.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Geological Exploration Program</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our mineral
claims presently do not have any mineral reserves.&nbsp; There is no mining plant or
equipment located on the property.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have not
yet commenced physical exploration of the Lourdeau Claims.&nbsp; Our exploration
program is exploratory in nature and there is no assurance that mineral reserves
will be found.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The
exploration program proposed by the Company's independent consultant is designed
to determine whether mineralization exists to the extent that further
exploration is recommended to outline any such mineralized zones.&nbsp; It is
uncertain at this time the precise quantity of minerals in the property that
would justify actual mining operations.&nbsp; If we decide to abandon our mineral
claim at any stage of our exploration program, we intend to acquire other
properties and conduct similar exploration programs. The other properties may be
located in the same mining district or we may in the future explore properties
located in other jurisdictions, which may include other provinces in Canada, or
in the United States.&nbsp; Currently, the Company does not have any other properties
or any intentions of acquiring any other properties.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We plan to
conduct a systemic surface sampling program of the Lourdeau Vein site and its
vicinity, and the northern edge of the Lourdeau Hill, incorporating grab and
channel sampling, in order to get a solid </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
30</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">
geochemical assay database.&nbsp; Mr. Boily recommends obtaining a helicopter-borne
geophysical survey to cover the rest of the Lourdeau Property.&nbsp; Mr. Boily
recommends the geophysical magnetic and radiometric surveys to be done on a 100
m spaced grid.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Depending on
the results of this program, the next phase could involve a drilling campaign
which would define the targets acquired during the geophysical surveys and
sampling campaign.&nbsp; The focus of the drilling will be the uranium-mineralized
sandstones at the Lourdeau Hill, with the gold, copper and silver-mineralized
metavolcanic constituting secondary targets.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We presently
have funds to meet our general operating expenses and to meet our obligations
under the Property Option Agreement.&nbsp; We do not have the funds to conduct the
recommended exploration program.&nbsp; If we are able to raise additional money, we
plan to conduct the exploration program on the Lourdeau Property in the summer
of 2008.&nbsp; Due to extreme weather conditions, exploration activities can only be
conducted between June and August of each year.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The
recommended exploration program costs approximately $107,570 and consists of the
following:</p>
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse; margin-left: 36.9pt">
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">
		Geophysical Survey</font></b></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Spectrometry, Gradiomag (Helimager)
		and VLF</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">$200 x 120 km (line spacing: 100 m)</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$24,000</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Mobilization/demobilization </font>
		</td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$15,000</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">Channel
		and Grab Sampling</font></b></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Analyses: 150 samples @ $50/sample</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$7,500</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Supervision: geologist/ 2
		technicians for 5 days @ $925/day</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$4,625</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">
		Transport and Lodging</font></b></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Transport Montreal-Radisson .</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$1,000</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Lodging and food for 3 people x
		5days</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$3,750</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Rentals (truck, ATV, saws, etc.)</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$5,000</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">
		Helicopter</font></b></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">3 hours/day x 5 days x $1,250/day</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$18,750</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Fuel: 3 hours/day x 5 days x 160
		liters x $2/liters</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$4,800</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">
		Mineralogy: SEM Analyses</font></b></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">5 samples x $500/sample</font></td>
		<td width="114" valign="top" style="width:85.5pt;border:none;border-bottom:solid windowtext .5pt;
  padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$2,500</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="114" valign="top" style="width: 85.5pt; border: medium none; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><b><font size="2">Subtotal </font></b></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$86,925</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">Contingency (10%)</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$8,693</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Total
		before taxes</font></td>
		<td width="114" valign="top" style="width:85.5pt;border:none;border-top:solid windowtext .5pt;
  padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">$95,618</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">GST (5%)</font></td>
		<td width="114" valign="top" style="width:85.5pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$4,781</font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><font size="2">QST (7.5%)</font></td>
		<td width="114" valign="top" style="width:85.5pt;border:none;border-bottom:solid windowtext .5pt;
  padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="margin-right:.2in;text-align:right">
		<font size="2">$7,171 </font></td>
	</tr>
	<tr>
		<td width="336" valign="top" style="width:3.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">Grand
		Total</font></b></td>
		<td width="114" valign="top" style="width: 85.5pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.5pt double windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;margin-right:.2in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">$107,570 </font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have not
hired any personnel to perform the geological work on the Lourdeau Property.&nbsp;
Any geologist that we hire in the future will be responsible for selecting the
appropriate personnel and incurring all worker-related costs, which we will
reimburse for such services.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>The
sections below describing the property are excerpts from a technical report
dated August 2007 prepared by Mr. Boily, our consulting geologist.&nbsp; Mr. Boily
has not visited the site and no visual inspection has been performed.&nbsp; Mr.
Boily's recommendations are based solely on his </b></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
31</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>interpretation of published reports.&nbsp; No drilling was conducted for
the benefit of his technical report.</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Location,
Accessibility, Climate, Local Resources Infrastructure and Physiography</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The Lourdeau
Property is located in the La Grande geological area of Quebec in the James Bay
Territory about 1,000 km north of Montreal.&nbsp; The property lies on the eastern
shore of the La Grande 3 Reservoir (LG-3) roughly 2.6 km ENE from a major
Hydro-Quebec levee.&nbsp; The property consists of 18 continuous map designed claim
units (or cells) in the NTS 32G/12 sheet for a total surface of 900.75 hectares
or 9.01 km2.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The nearest
village, Radisson (with a population of 400) is located roughly 165 km west of
the property.&nbsp; Several services, including lodging, food, gas, hospital, car and
truck rental and a regional airport can be obtained within this modern village.&nbsp;
To reach the Lourdeau Property, travel from Radisson by road 52 km south on
James Bay Road, 90 km west on Trans Taiga Road, and either take a helicopter
from the LG-3 airport to the property or take a boat from a major Hydro Quebec
levee.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Alternatively,
from the town of Matagami travel 568 km north on James Bay Road, and 90 km west
on Trans Taiga Road, and either take a helicopter from the LG-3 airport to the
property or take a boat from a major Hydro Quebec levee.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The James Bay
area is characterized by a continental climate.&nbsp; Summers are very short (from
early June to late August) but temperate with average maximum of 60<sup>o</sup>F
(20.0<sup>o</sup>C) and minimum of 45<sup>o</sup>F (7.4<sup>o</sup>C) in July.&nbsp;
Winter is harsh and starts in September and lasts until May, with extensive snow
precipitations (294 inches or 267 cm) from October to May.&nbsp; Average temperatures
during winter months reach -19.3<sup>o</sup>F (-28.5<sup>o</sup>C) (minimum) and
-.9<sup>o</sup>F (-18.3<sup>o</sup>C) (maximum) in January.&nbsp; The topography is
typical of the Canadian Shield.&nbsp; The physiography of the region is rough and
undulating, glaciation producing a rolling morainal plain with numerous small
shallow lakes.&nbsp; The vegetation, adapted to the harsh climate, typifies the Taiga
forest where the trees are sparse and small. The dominant species are black
spruce and jack pine, but larch, birch and aspen are also present.&nbsp; The ground
is covered by pale green lichen commonly called reindeer moss that is highly
inflammable during the dry season.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>History of the Property</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The property
has been unexplored since the late 1970's.&nbsp; In the 1960's and 1970's, the
Ministere des Richesses naturelles et de la Faune du Quebec (MRNFQ), conducted a
systematic mapping campaign covering the regions of the La Grande River
hydrographic system before the LG-2 and LG-3 reservoirs were progressively
filled in the late 1970's.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In 1973, the
Societe de Developpement de la Baie James (SDBJ) undertook a regional
geochemical survey of lake bottom sediments that covered the entire James Bay
area.&nbsp; Lasting over 5 years, the survey was carried out with a sample density of
1 sample per 9 km2.&nbsp; Geoterrex completed a regional airborne radiometric survey
in the James Bay area.&nbsp; The results of the survey are published in aeromagnetic
maps pointing out the anomalous sectors (GM 34130).&nbsp; Other general unpublished
airborne and ground-based mag survey were completed by Canico, the SDBJ.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In 1974-1975,
SES-SDBJ recognized a regional N140<sup>o</sup>-oriented fault along the La
Grande River which was associated in some places with radiometric values greater
than 1,000 cps. A follow-up prospection by helicopter identified an anomalous
radiometric zone in argillaceous sediments north of the Lourdeau Hill. Later
that year, geologists discovered a boulder train of Sakami Fm sandstones resting
at the northern base of the hill. The boulder contained yellow and green
impregnations in fractures later identified as autunite, malachite and
chalcocite. A clearing of the hill summit later allowed the recognition of a
network of N125<sup>o</sup>E oriented fractures through a lenticular layer of
sericitic siltstone. The uranium mineralization was associated to this layer,
whilst the copper impregnated the surrounding sandstone. This discovery sparked
a systematic exploration campaign by the SES-SDBJ throughout 1976 and 1977. </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
32</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The
campaign included ground prospection along grids, ground-based radiometric, mag
and VLF surveys, rock and soil sampling and ultimately percussion and core
drilling. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">A series 79
percussion and core drill holes totaling 2.89 miles (4.66 km) were conducted on
the Lourdeau Hill on the different targets delimited from the previous
exploration work.&nbsp; A close examination of the drill sections reveals the
mineralization to be largely confined to a filled zone associated with the main
N125<sup>o</sup>E-oriented fractures. Out of the 25 percussion drill holes
conducted on the Lourdeau Vein site, 12 showed interesting values, one showed an
isolated radioactive peak.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Conclusions and Recommendations</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The Lourdeau
Property, unexplored since the late 1970's, holds a potential for high-grade
uranium mineralization in Proterozoic silicilastic sediments and in gold, copper
and silver in the basement metavolcanic rocks surrounding the sedimentary
rocks.&nbsp; Unconformity associated uranium deposits are generally high grade.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The Lourdeau
Property, notably the uranium, copper and silver unconformity showing associated
to Mid-Proterozoic siliciclastic sediments, represents one of the prime targets
of exploration in the James Bay Territory of Quebec.&nbsp; The main uranium showing,
the Lourdeau Vein, holds a significant potential for a high grade uranium
mineralization.&nbsp; Short percussion drill holes exploring the fracture zone were
carried by the SES-SDBJ in the late 1970's and produced interesting uranium
values extrapolated from radiometric downhole measurement.&nbsp; We will benefit from
the present survey techniques that were not available in the 1970's. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Mr. Boily
recommends a systemic surface sampling program of the Lourdeau Vein site and its
vicinity, and the northern edge of the Lourdeau Hill, incorporating grab and
channel sampling, in order to get a solid geochemical assay database.&nbsp; Mr. Boily
recommends obtaining a helicopter-borne geophysical survey to cover the rest of
the Lourdeau Property.&nbsp; Mr. Boily recommends the geophysical magnetic and
radiometric surveys to be done on a 100 m spaced grid.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Depending on
the results of this program, the next phase could involve a drilling campaign
which would define the targets acquired during the geophysical surveys and
sampling campaign.&nbsp; The focus of the drilling will be the uranium-mineralized
sandstones at the Lourdeau Hill, with the gold, copper and silver-mineralized
metavolcanic constituting secondary targets.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Geological and Technical Staff&nbsp; </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have not
contracted with any geologist to assist with the exploration programs.&nbsp; At the
right time, we will hire from the available pool of contract geologists
depending on the time of the year and availability of experience.&nbsp; Presently,
there are no other agreements or understandings to hire such geologists or
engineers.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Competitive Factors</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The mineral
industry is fragmented. We compete with other exploration companies looking for
a variety of mineral resources. We are a very small exploration company compared
to many of our competitors.&nbsp; Although we will be competing with other
exploration companies, there is no competition for the exploration of minerals
on our mineral claim.&nbsp; We intend to explore and find sufficient mineralization
to a point in which major mining companies or mining financial groups would
seriously consider pursuing the mineral claim as a valuable and significant
acquisition. </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
33</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Location Challenges</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We do not
expect any major challenges in accessing the property during the initial
exploration stages.&nbsp; However, due to the seasonal winter conditions of the area,
we can only access the property between June and August of each year. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Regulations</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We will be
required to comply with all regulations, rules and directives of governmental
authorities and agencies applicable to the exploration of minerals in Canada
generally, and in Quebec specifically.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The key
government agency in charge of mining in Quebec, Canada is the Ministry of
Natural Resources, or ministere des Ressources naturelles. The Ministry of
Natural Resources administers three laws relevant to the mining industry in
Quebec: (i) The Mining Act (Loi sur les mines); (ii) The Mining Duties Act (Loi
concernant les droits sur les mines); and (iii) SOQUEM Act (Loi sur la societe
quebecoise d'exploration miniere).</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The Quebec
Mining Act allows a mineral explorer to claim a portion of available
governmental lands for the exclusive ownership of the mining rights area.
Pursuant to the Quebec Mining Act, a foreign company working on mining claims in
the Province of Quebec must register with the provincial government of Quebec.&nbsp;
We are not registered with the government of Quebec, and we will need to
register with the government of Quebec before we work on the Lourdeau Claims.&nbsp;
</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We currently
have no costs to comply with environmental laws concerning our exploration
program. A permit is required to penetrate the forested areas with the
obligation to store along access zones cut lumber of potential commercial value.
We do not expect to be required to obtain additional governmental authorizations
or to undertake studies of environmental impact and project approval unless and
until we discover commercially viable quantities of mineral deposits. Under the
Quebec Mining Act, should we discover mineral deposits and desire to commence
mining operations, we will be required to file a mining site rehabilitation plan
with the Natural Resources Ministry. This rehabilitation plan discusses how the
operator intends to rehabilitate the property following its intended use of the
property and includes an estimate of the costs involved in the rehabilitation.
We may also be required to obtain permits and distribution rights-of-way from
the Natural Resources Ministry for the construction of the access roads and
power lines.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Other laws are
indirectly relevant to our business, including the Quebec Environmental Quality
Act and the Canadian Environmental Assessment Act. These acts are administered
by separate provincial and federal governmental agencies that have the separate
authority to approve or require changes to a company's impact assessment.
Notwithstanding this separate authority, these federal and provincial
governmental agencies generally attempt to coordinate their review and approval
procedures.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The Quebec
Environment Quality Act, includes standards related to protection of the soil,
water, and air quality. Article 22 of the Environmental Quality Act requires
that any proponent who wants to build or modify the environment in any way
obtain a certificate of approval from the Quebec Environment Ministry. Directive
19, established under the Environmental Quality Act, sets criteria for
environmental impact studies to accompany applications for certificates of
approval under the Act, and also sets standards on the ways different types of
mines should operate.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We are
prepared to engage professionals, if necessary, to ensure regulatory compliance,
but in the near term we expect our activities to require minimal regulatory
oversight. If we expand the scope of our activities in the future, it is
reasonable to expect expenditures on compliance to rise.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
34</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Environmental Factors</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We will also
have to sustain the cost of reclamation and environmental remediation for all
work undertaken which causes sufficient surface disturbance to necessitate
reclamation work.&nbsp; Both reclamation and environmental remediation refer to
putting disturbed ground back as close to its original state as possible.&nbsp; Other
potential pollution or damage must be cleaned-up and renewed along standard
guidelines outlined in the usual permits.&nbsp; Reclamation is the process of
bringing the land back to a natural state after completion of exploration
activities.&nbsp; Environmental remediation refers to the physical activity of taking
steps to remediate, or remedy, any environmental damage caused, i.e. refilling
trenches after sampling or cleaning up fuel spills.&nbsp; Our initial programs do not
require any reclamation or remediation other than minor clean up and removal of
supplies because of minimal disturbance to the ground.&nbsp; The amount of these
costs is not known at this time as we do not know the extent of the exploration
program we will undertake, beyond completion of the recommended three phases
described above.&nbsp; Because there is presently no information on the size, tenor,
or quality of any resource or reserve at this time, it is impossible to assess
the impact of any capital expenditures on our earnings or competitive position
in the event a potentially economic deposit is discovered.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Employees</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Initially, we
intend to use the services of contractors and consultants for exploration work
on our properties. At present, we have no paid employees.&nbsp; We believe keeping a
low number of full-time employees will conserve cash and allow greater
flexibility in the future.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Management's Discussion and Analysis of Financial
Condition and Results of Operations </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The following
presentation of management's discussion and analysis of Santos should be read in
conjunction with the financial statements and other financial information
included herein.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Overview</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Santos was
incorporated under the laws of the state of Nevada on May 24, 2006.&nbsp; We have not
commenced business operations and we are considered an exploration stage
company.&nbsp; We are defined as a &quot;shell company&quot; under the Rule 405 of the
Securities Act and Rule 12b-2 of the Exchange Act because we have nominal
operations and nominal assets.&nbsp; To date, our activities have been limited to
organizational matters, obtaining a geological report on the Lourdeau Claims and
the preparation and filing of a registration statement on Form S-1.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Plan of Operations</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Our business
plan is to proceed with the exploration of the Lourdeau Claims to determine
whether there are commercially exploitable reserves of base and precious
metals.&nbsp; We presently have funds to meet our general operating expenses and to
meet our obligations under the Property Option Agreement.&nbsp; We do not have the
funds to conduct the recommended exploration program.&nbsp; If we are able to raise
additional money, we plan to conduct the exploration program recommended by Mr.
Michel Boily, PhD, P.Geo, in the summer of 2008.&nbsp; We anticipate the recommended
program will cost approximately $107,570.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have not
hired any personnel to perform the geological work on the Lourdeau Property.&nbsp;
Any geologist that we hire in the future will be responsible for selecting the
appropriate personnel and incurring all worker-related costs, which we will
reimburse for such services.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">During this
exploration stage, Mr. Richard Pierce, our president, will only be devoting
approximately 10 hours per week of his time to our business. We do not foresee
this limited involvement as negatively impacting our company over the next 12
months as an outside consultant is performing all exploratory work.&nbsp; If,
however, the demands of our business require more time of Mr. Pierce, such as
raising additional capital or addressing unforeseen issues with regard to our
exploration efforts, he is prepared to </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
35</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">adjust
his timetable to devote more time to our business, up to 15 hours.&nbsp; Mr. Pierce
is also the principal of GFR Pharma Ltd., GFR Health Ltd. and Biologic
Nutritional Resources Inc., and he may not be able to devote the necessary time
to the affairs of our business because of competing demands from his other
companies.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In the event
that we require additional funding, we anticipate that such funding will be in
the form of equity financing from the sale of our common stock.&nbsp; We will not be
using this prospectus in any subsequent unregistered offering and we will comply
with applicable integration rules as set forth in Rule 502(a) of Regulation D.&nbsp;
However, we cannot provide investors with any assurance that we will be able to
raise sufficient funding from the sale of our common stock to fund additional
phases of the exploration program should we decide to proceed. We believe that
debt financing will not be an alternative for funding any further phases in our
exploration program. The risky nature of this enterprise and lack of tangible
assets places debt financing beyond the credit-worthiness required by most banks
or typical investors of corporate debt until such time as an economically viable
mine can be demonstrated. We do not have any arrangements in place for any
future equity financing. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Risk Factors</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">An investment
in our common stock involves a number of very significant risks.&nbsp; Prospective
investors should refer to all the risk factors described under &quot;Risk Factors&quot;
commencing on page 8.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Financial
Condition</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">As at February
29, 2008, Santos had a cash balance of $132,303.&nbsp; Management does not anticipate
generating any revenue for the foreseeable future.&nbsp; When additional funds become
required, the additional funding will come from equity financing from the sale
of Santos' common stock.&nbsp; If Santos is successful in completing an equity
financing, existing shareholders will experience dilution of their interest in
Santos.&nbsp; Santos does not have any financing arranged and Santos cannot provide
investors with any assurance that Santos will be able to raise sufficient
funding from the sale of its common stock.&nbsp; In the absence of such financing,
Santos' business will fail.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Based on the
nature of Santos' business, management anticipates incurring operating losses in
the foreseeable future.&nbsp; Management bases this expectation, in part, on the fact
that very few mineral claims in the exploration stage ultimately develop into
producing, profitable mines.&nbsp; Santos' future financial results are also
uncertain due to a number of factors, some of which are outside its control.&nbsp;
These factors include, but are not limited to:</p>
<ul>
	<li>Santos' ability to raise additional funding; </li>
	<li>the market price for minerals; and</li>
	<li>the results of Santos' proposed exploration programs on its exploration
	mineral properties.</li>
</ul>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Due to Santos'
lack of operating history and present inability to generate revenues, Santos'
auditors have stated their opinion that there currently exists a substantial
doubt about Santos' ability to continue as a going concern.&nbsp; This means that
there is substantial double whether Santos can continue as an on going business
for the next 12 months unless we obtain additional capital to pay our bills.&nbsp; We
presently do not have the funds to conduct the recommended exploration program.&nbsp;
Further, even if Santos completes its current exploration program, we will
require additional funds in order to place the Lourdeau Claims into commercial
production.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
36</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Liquidity</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Santos'
internal sources of liquidity will be loans that may be available to Santos from
management.&nbsp; Although Santos has no written arrangements with any of directors
and officers, Santos expects that the directors and officers will provide Santos
with internal sources of liquidity, if it is required.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Also, Santos'
external sources of liquidity will be private placements for equity conducted
outside the United States.&nbsp; Since inception on May 24, 2006 to February 29,
2008, Santos did not complete any definitive arrangements for any external
sources of liquidity.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Capital
Resources</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">As of February
29, 2008, Santos had total assets of $132,623 and total liabilities of $21,564
for a net working capital of $111,059.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">There are no
assurances that Santos will be able to achieve further sales of its common stock
or any other form of additional financing.&nbsp; If Santos is unable to achieve the
financing necessary to continue its plan of operations, then Santos will not be
able to continue its exploration programs and its business will fail.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Management
estimates that Santos' current cash will be sufficient to fully finance its
operations at current and planned levels through February 2009.&nbsp; Management
intends to manage Santos' expenses and payments to preserve cash until Santos is
profitable, otherwise additional financing must be arranged.&nbsp; Specifically, such
cash management actions include donation of office space and services by Santos'
sole executive officer.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Results of Operations </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We did not
earn any revenues from inception on May 24, 2006 to February 29, 2008.&nbsp; We do
not anticipate earning revenues until such time as we have entered into
commercial production of our mineral properties. We are presently in the
exploration stage of our business and we can provide no assurance that we will
discover commercially exploitable levels of mineral resources on our properties,
or if such resources are discovered, that we will enter into commercial
production of our mineral properties. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We incurred
operating expenses in the amount of $70,888 from inception on May 24, 2006 to
February&nbsp;29, 2008.&nbsp; These operating expenses comprised mainly of mineral
property costs of $31,580 and accounting and legal expenses of $38,682.&nbsp; We
incurred a loss in the amount of $70,888 from inception on May 24, 2006 to
February&nbsp;29, 2008.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify;page-break-after:
avoid"><b>Off-balance Sheet Arrangements</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Santos has no
off-balance sheet arrangements including arrangements that would affect its
liquidity, capital resources, market risk support and credit risk support or
other benefits.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center;
page-break-after:avoid"><b>Available Information</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We are filing
a registration statement on Form S-1 with the United States Securities and
Exchange Commission, under the Securities Act of 1933, covering the securities
in this offering.&nbsp; As permitted by rules and regulations of the Commission, this
prospectus does not contain all of the information in the registration
statement.&nbsp; For further information regarding both Santos Resource Corp. and the
securities in this offering, we refer you to the registration statement,
including all exhibits and schedules.&nbsp; As of the effective date of this
prospectus, we will have to comply with the information requirements of the
Securities Exchange Act of 1934. Upon effectiveness of the Form S-1 registration
statement, we will be required to file reports with the SEC under section 15(d)
of the Securities Act.&nbsp; The reports we will be required to file are Forms 10-K,
10-Q and 8-K. These materials will be available for inspection and </p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
37</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">copying
at the public reference facilities maintained by the Commission at Room 100 F
Street, NE Washington, DC 20549.&nbsp; Copies of the material may be obtained from
the public reference section, at prescribed rates.&nbsp; Please call the Commission
at 1-800-SEC-0330.&nbsp; The Commission maintains an Internet Web site located at
http://www.sec.gov that contains reports, proxy and information statements and
other information regarding issuers that file reports electronically with the
Commission. The site is accessible by the public through any Internet access
service provider.&nbsp; Our registration statement and the referenced exhibits can
also be found on this site.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">38</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>SANTOS RESOURCE CORP.<br>
INDEX
TO FINANCIAL STATEMENTS</b></p>
<p class="MsoNormal">&nbsp;</p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">
	<tr>
		<td width="7%" valign="top" style="width:7.86%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
		<td width="83%" valign="top" style="width:83.64%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
		<td width="8%" valign="top" style="width:8.5%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.86%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
		<td width="83%" valign="top" style="width:83.64%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">Report of Independent Registered Public Accounting Firm</font></td>
		<td width="8%" valign="top" style="width:8.5%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="text-align: center; margin-top: 12.0pt">
		<font size="2">41</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.86%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
		<td width="83%" valign="top" style="width:83.64%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">Balance Sheets</font></td>
		<td width="8%" valign="top" style="width:8.5%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="text-align: center; margin-top: 12.0pt">
		<font size="2">42</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.86%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
		<td width="83%" valign="top" style="width:83.64%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">Statements of Operations</font></td>
		<td width="8%" valign="top" style="width:8.5%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="text-align: center; margin-top: 12.0pt">
		<font size="2">43</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.86%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
		<td width="83%" valign="top" style="width:83.64%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">Statement of Stockholders' Equity</font></td>
		<td width="8%" valign="top" style="width:8.5%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="text-align: center; margin-top: 12.0pt">
		<font size="2">44</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.86%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
		<td width="83%" valign="top" style="width:83.64%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">Statements of Cash Flows</font></td>
		<td width="8%" valign="top" style="width:8.5%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="text-align: center; margin-top: 12.0pt">
		<font size="2">45</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.86%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">&nbsp;</font></td>
		<td width="83%" valign="top" style="width:83.64%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="text-align: justify; margin-top: 12.0pt">
		<font size="2">Notes to Financial Statements</font></td>
		<td width="8%" valign="top" style="width:8.5%;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="center" style="text-align: center; margin-top: 12.0pt">
		<font size="2">46</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">39</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
</FONT>

<FONT FACE="Arial" SIZE=4>
<p class="MsoNormal" align="center" style="text-align:center"><b>
Santos Resource Corp.<br>
</b></FONT>

<FONT FACE="Arial" SIZE=2>
<i>(An Exploration Stage Company)</i></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>Financial Statements</b></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>February 29, 2008</b></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
(Presented In US Dollars)</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">40</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse">
	<tr>
		<td width="288" valign="top" style="width:3.0in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">CHARTERED<br>
		ACCOUNTANTS</font></b><font size="2"><br>
		MacKay LLP</font></td>
		<td width="192" valign="top" style="width:2.0in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="1">1100 -
		1177 West Hastings Street<br>
		Vancouver, BC V6E 4T5<br>
		Tel: 604-687-4511<br>
		Fax: 604-687-5805<br>
		Toll Free: 1-800-351-0426<br>
		www.MacKayLLP.ca</font></td>
	</tr>
</table>
<p class="MsoNormal" align="center" style="text-align:center"><b>Report of
Independent Registered Public Accounting Firm</b></p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>To the Directors of <br>
Santos Resource Corp.<br>
</b>(an Exploration Stage Enterprise)<br>
Vancouver, Canada</p>
<p class="MsoNormal">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have
audited the balance sheets of Santos Resource Corp. (an Exploration Stage
Enterprise) as at February 29, 2008 and 2007 and the statement of operations and
deficit, stockholders' equity, and cash flows for the year ended February 29,
2008 and the periods from incorporation on May 24, 2006 to February 28, 2007 and
February 29, 2008.&nbsp; These financial statements are the responsibility of the
Company's management.&nbsp; Our responsibility is to express an opinion on these
financial statements based on our audits.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We conducted
our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States).&nbsp; Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial statements
are free of material misstatements.&nbsp; The Company has determined that it is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting.&nbsp; Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's internal control over financial
reporting.&nbsp; Accordingly, we express no such opinion.&nbsp; An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation.&nbsp; We believe that our audits provide a
reasonable basis for our opinion.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In our
opinion, these financial statements present fairly, in all material respects,
the financial position of the Company as at February 29, 2008 and 2007 and the
results of its operations and its cash flows for the year ended February 29,
2008 and the periods from incorporation on May 24, 2006 to February 28, 2007 and
February 29, 2008 in conformity with U.S. generally accepted accounting
principles.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The
accompanying financial statements referred to above have been prepared assuming
that the Company will continue as a going concern.&nbsp; As discussed in Note 1 to
financial statements, the Company is in the exploration stage, and has no
permanently established source of revenue and is dependent on its ability to
raise capital from shareholders or other sources to sustain operations.&nbsp; These
factors, along with other matters as set forth in Note 1, raise substantial
doubt that the Company will be able to continue as a going concern.&nbsp; The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.</p>
<p class="MsoNormal">&nbsp;</p>
<p class="MsoNormal">&nbsp;</p>
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse">
	<tr>
		<td width="319" valign="top" style="width:239.4pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal"><b><font size="2">Vancouver, Canada<br>
		May 7, 2008</font></b></td>
		<td width="319" valign="top" style="width:239.4pt;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2"><b><i>&quot;MacKay LLP&quot;</i></b><br>
		</font><b><font size="2">Chartered Accountants</font></b></td>
	</tr>
</table>
<p class="MsoNormal">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">41</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
<div class="Section1">
	</FONT><FONT FACE="Arial">
	<p class="MsoNormal"><b>Santos Resource Corp.</b></FONT><FONT FACE="Arial" SIZE=2><br>
	(an Exploration stage company)<br>
	Balance Sheets<br>
	At February 29, 2008<br>
	(Expressed in US Dollars)</p>
	<p class="MsoNormal">&nbsp;</p>
	<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse">
		<tr style="height:12.75pt">
			<td width="5%" nowrap valign="bottom" style="width:5.22%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="52%" nowrap valign="bottom" style="width:52.56%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">29-Feb-08</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">28-Feb-07</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal"><b><font size="2">Assets</font></b></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal"><b><font size="2">Current Assets</font></b></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal" style="margin-left:.2in"><font size="2">Cash</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">132,303</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal" style="margin-left:.2in"><font size="2">GST
			Receivable</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">320</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal"><b><font size="2">Total Assets</font></b></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">132,623</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal"><b><font size="2">Liabilities and Stockholders
			Equity</font></b></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal"><font size="2">Current Liabilities</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal" style="margin-left:.2in"><font size="2">Accrued
			Payables</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">11,712</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal" style="margin-left:.2in"><font size="2">Payable
			to Shareholders Note 3(b)</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;border:none;
  border-bottom:solid windowtext 1.0pt;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">9,852</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;border:none;
  border-bottom:solid windowtext 1.0pt;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal"><b><font size="2">Total Current Liabilities</font></b></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width: 12.12%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.0pt solid windowtext; padding-left: .85pt; padding-right: .85pt; padding-top: .85pt; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">21,564</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width: 11.7%; height: 12.75pt; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 1.0pt solid windowtext; padding-left: .85pt; padding-right: .85pt; padding-top: .85pt; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="5%" nowrap valign="bottom" style="width:5.22%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="52%" nowrap valign="bottom" style="width:52.56%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width: 12.12%; height: 12.75pt; border: medium none; padding-left: .85pt; padding-right: .85pt; padding-top: .85pt; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width: 11.7%; height: 12.75pt; border: medium none; padding-left: .85pt; padding-right: .85pt; padding-top: .85pt; padding-bottom: 0in">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal"><b><font size="2">Stockholders' Equity</font></b></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal" style="margin-left:.2in"><font size="2">Common
			Stock (Note 5) 75,000,000 shares authorized, <br>
			$0.001 par value<br>
			32,076,500 (2007 - nil) shares issued</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">32,077</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal" style="margin-left:.2in"><font size="2">
			Additional paid in capital</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">149,871</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:9.0pt;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:12.75pt">
			<p class="MsoNormal" style="margin-left:.2in"><font size="2">
			Subscriptions receivable</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp; </font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal" style="margin-left:.2in"><font size="2">Deficit
			accumulated during the exploration stage</font></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">(70,888)</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp; </font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal"><b><font size="2">Total Stockholders' Equity</font></b></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">111,059</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;border-top:solid windowtext 1.0pt;
  border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="57%" nowrap colspan="2" valign="bottom" style="width:57.78%;
  padding:.85pt .85pt 0in .85pt;height:13.5pt">
			<p class="MsoNormal"><b><font size="2">Total Liabilities and
			Stockholders' Equity</font></b></td>
			<td width="8%" nowrap valign="bottom" style="width:8.58%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="12%" nowrap valign="bottom" style="width:12.12%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">132,623</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.82%;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.7%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.85pt .85pt 0in .85pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
	</table>
	<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
	<p class="MsoNormal" style="margin-top:12.0pt"><b>On Behalf of the Board:</b></p>
	<p class="MsoNormal" style="margin-top: 12.0pt"><u><br>
	/s/ Richard Pierce&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>&nbsp;
	Director</p>
	<p class="MsoNormal" style="margin-top: 12.0pt"><u><br>
	/s/ Andrew Lee Smith&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>&nbsp; Director</p>
	<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
	<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
	<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	The accompanying notes are an integral part of these financial statements</p>
	</FONT><FONT FACE="Arial">
	<font face="Arial" size="2">
	<p class="MsoNormal" align="center" style="text-align:center">42</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;</font><p class="MsoNormal"><b>Santos Resource Corp.</b></FONT><FONT FACE="Arial" SIZE=2><br>
	(an Exploration stage company)<br>
	Statements of Operations<br>
	(Expressed in US Dollars)</p>
	<p class="MsoNormal">&nbsp;</p>
	<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">
		<tr style="height:13.5pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:solid windowtext 1.0pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Year Ended<br>
			February 29,<br>
			</font><b><font size="2">2008</font></b></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:solid windowtext 1.0pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Period from<br>
			Incorporation<br>
			May 24, 2006 to<br>
			February 28,</font><b><font size="2"><br>
			2007</font></b></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:solid windowtext 1.0pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Cumulative to<br>
			February 29,</font><b><font size="2"><br>
			2008</font></b></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Expenses</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;General and administrative</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">627</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">627</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Mineral Property Costs </font>
			</td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">31,580</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">31,580</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Professional Fees</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">38,682</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;border:none;border-bottom:
  solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;border:none;border-bottom:
  solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">38,682</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" style="margin-right:.1in"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-top:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" style="margin-right:.1in"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Total Expenses</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">70,888</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;border:none;border-bottom:
  solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp; </font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;border:none;border-bottom:
  solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">70,888</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" style="margin-right:.1in"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" style="margin-right:.1in"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">Net loss and comprehensive loss</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">(70,888)</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;border:none;border-bottom:
  double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;border:none;border-bottom:
  double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">(70,888)</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">Net loss per share</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal" style="margin-right:.1in"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Basic and diluted</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">(0.00)</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;border:none;border-bottom:
  double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">-</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width: 16.22%; height: 13.5pt; border: medium none; padding-left: .9pt; padding-right: .9pt; padding-top: .9pt; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width: 3.6%; height: 13.5pt; border: medium none; padding-left: .9pt; padding-right: .9pt; padding-top: .9pt; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width: 16.22%; height: 13.5pt; border: medium none; padding-left: .9pt; padding-right: .9pt; padding-top: .9pt; padding-bottom: 0in">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="40%" nowrap valign="bottom" style="width:40.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">Weighted average number of
			shares <br>
			outstanding - basic and diluted</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">21,813,036 </font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;border:none;border-bottom:
  double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
			<font size="2">N/A</font></td>
			<td width="3%" nowrap valign="bottom" style="width:3.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="16%" nowrap valign="bottom" style="width:16.22%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
	</table>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	The accompanying notes are an integral part of these financial statements</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="text-align:center">43</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;</FONT><FONT SIZE=2><p class="MsoNormal"></FONT><b><font face="Arial">Santos Resource Corp.<br>
	</font></b>

<FONT FACE="Arial" SIZE=2>
	(an Exploration stage company)<br>
	Statement of Stockholders' Equity<br>
	At February 29, 2008<br>
	(Expressed in US Dollars)</p>
	<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">Common</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Stock</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Additional<br>
			Paid-in</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Deficit<br>
			Accumulated<br>
			During the<br>
			Exploration</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Total<br>
			Shareholders'</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Number</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Par Value</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Capital</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Stage</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="center" style="text-align:center">
			<font size="2">Equity</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Balance, May 24, 2006<br>
			(date of inception)</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Net loss for the period ending<br>
			&nbsp;&nbsp;February 28, 2007</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;border:none;border-bottom:
  solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><b><font size="2">Balance, February 28, 2007</font></b></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;border:none;border-bottom:
  solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Capital Stock issued for
			subscriptions <br>
			receivable at $0.0005 per share and services<br>
			at $0.0005 per share</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">19-Jun-07</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">31,040,000</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">31,040</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">(15,520)&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">15,520</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Mineral Property Option <br>
			&nbsp;&nbsp;- Starfire Minerals</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">25-Jun07</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">75,000</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">75</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">11,175</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">11,250</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Private Placement at $0.15 per
			share</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">1-Feb-08</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">961,500</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">962</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">143,264</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">144,225</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Private Placement Fees</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">1-Feb-08</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">(4,568)</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">(4,568)</font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">Net loss for the year ending<br>
			&nbsp;&nbsp;February 29, 2008</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;border:none;border-bottom:
  solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">-&nbsp;&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">15,520&nbsp;&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">(70,888) </font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">(55,368) </font></td>
		</tr>
		<tr style="height:12.75pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">&nbsp;</font></td>
		</tr>
		<tr style="height:13.5pt">
			<td width="35%" nowrap valign="bottom" style="width:35.18%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><b><font size="2">Balance, February 29, 2008</font></b></td>
			<td width="10%" nowrap valign="bottom" style="width:10.16%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
			<p class="MsoNormal"><font size="2">&nbsp;</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">32,076,500</font></td>
			<td width="9%" nowrap valign="bottom" style="width:9.7%;border:none;border-bottom:
  double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$&nbsp;&nbsp;&nbsp;32,077</font></td>
			<td width="10%" nowrap valign="bottom" style="width:10.86%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$&nbsp;&nbsp;&nbsp;149,871</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.28%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$&nbsp;&nbsp;(70,888)</font></td>
			<td width="11%" nowrap valign="bottom" style="width:11.96%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
			<p class="MsoNormal" align="right" style="text-align:right">
			<font size="2">$&nbsp;&nbsp;111,059</font></td>
		</tr>
	</table>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	&nbsp;</p>
	<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
	The accompanying notes are an integral part of these financial statements</div>
&nbsp;<p class="MsoNormal" align="center" style="text-align:center">44</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;</FONT><p class="MsoNormal"><b><font face="Arial">Santos Resource Corp.<br>
</font></b><font face="Arial" size="2">(an Exploration stage company)<br>
Statements of Cash Flows<br>
(Expressed in US Dollars)</p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">
	<tr style="height:13.5pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:solid windowtext 1.0pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Year Ended<br>
		February 29,</font><b><font size="2"><br>
		2008</font></b></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:solid windowtext 1.0pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Period from<br>
		Incorporation<br>
		May 24, 2006 to<br>
		February 28,<br>
		</font><b><font size="2">2007</font></b></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;border:none;
  border-bottom:solid windowtext 1.0pt;padding:.9pt .9pt 0in .9pt;height:13.5pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">Cumulative to <br>
		February 29,<br>
		</font><b><font size="2">2008</font></b></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><b><font size="2">Cash flows used in Operating
		Activities</font></b></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Net loss for the period</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">(70,888) </font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">(70,888)</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Adjustments to net loss for
		non-cash activities</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for property
		acquisition</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">11,250</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">11,250</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services provided by founders
		in exchange<br>
		&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for shares</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">15,520</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">15,520</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Decrease (Increase) in GST
		Receivable</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">(320)</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">(320)</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Increase (Decrease) in accrued
		payables</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">11,712</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">11,712</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><b><font size="2">Net cash used in operating
		activities</font></b></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border-top:solid windowtext .5pt;
  border-left:none;border-bottom:solid windowtext .5pt;border-right:none;
  padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">(32,726)</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border-top:solid windowtext .5pt;
  border-left:none;border-bottom:solid windowtext .5pt;border-right:none;
  padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;border-top:solid windowtext .5pt;
  border-left:none;border-bottom:solid windowtext .5pt;border-right:none;
  padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">(32,726)</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><b><font size="2">Cash flows from investing
		activities</font></b></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><b><font size="2">Cash flows from financing
		activities</font></b></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Capital Stock issued</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<a name="OLE_LINK7"><font size="2">159,745</font></a></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">159,745</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Private Placement Fees</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">(4,568)</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">(4,568)</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;&nbsp;&nbsp;Advances from shareholders</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">9,852</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">9,852</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><b><font size="2">Net cash flows from financing
		activities</font></b></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border-top:solid windowtext .5pt;
  border-left:none;border-bottom:solid windowtext .5pt;border-right:none;
  padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">165,030</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border-top:solid windowtext .5pt;
  border-left:none;border-bottom:solid windowtext .5pt;border-right:none;
  padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;border-top:solid windowtext .5pt;
  border-left:none;border-bottom:solid windowtext .5pt;border-right:none;
  padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">165,030</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">Cash increase (decrease) during the
		period</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">132,303</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">132,303</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">Cash beginning of the period</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;border:none;
  border-bottom:solid windowtext .5pt;padding:.9pt .9pt 0in .9pt;height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
	</tr>
	<tr style="height:12.75pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:12.75pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:13.5pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal"><font size="2">Cash end of the period</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">132,303</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">132,303</font></td>
	</tr>
	<tr style="height:13.5pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">&nbsp;</font></td>
	</tr>
	<tr style="height:13.5pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal"><font size="2">Interest paid in the period</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  13.5pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
	</tr>
	<tr style="height:14.25pt">
		<td width="46%" nowrap valign="bottom" style="width:46.54%;padding:.9pt .9pt 0in .9pt;
  height:14.25pt">
		<p class="MsoNormal"><font size="2">Income taxes paid in the period</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:14.25pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  14.25pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="1%" nowrap valign="bottom" style="width:1.94%;padding:.9pt .9pt 0in .9pt;
  height:14.25pt">
		<p class="MsoNormal" align="right" style="text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.6%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  14.25pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
		<td width="2%" nowrap valign="bottom" style="width:2.88%;padding:.9pt .9pt 0in .9pt;
  height:14.25pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">$</font></td>
		<td width="15%" nowrap valign="bottom" style="width:15.52%;border:none;
  border-bottom:double windowtext 2.25pt;padding:.9pt .9pt 0in .9pt;height:
  14.25pt">
		<p class="MsoNormal" align="right" style="margin-right:.1in;text-align:right">
		<font size="2">-</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
The accompanying notes are an integral part of these financial statements</p>
</font><font size="2"><font face="Arial" size="2">
<p class="MsoNormal" align="center" style="text-align:center">45</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;</font><p class="MsoNormal" align="center" style="text-align:center">
</font><b><font face="Arial">Santos Resource Corp.<br>
</font></b><font face="Arial" size="2">(an exploration stage company)<br>
Notes to the Financial Statements<br>
For the year ending February 29, 2008<br>
(Expressed in U.S. dollars)</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nature of
Operations and Continuance of Business</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">Santos Resource Corp. (the
&quot;Company&quot;) was incorporated in the state of Nevada on May 24, 2006.&nbsp; The Company
is an Exploration Stage Company.&nbsp; The Company's principal business is the
acquisition and exploration of mineral properties.&nbsp; The Company has not
presently determined whether its properties contain mineral reserves that are
economically recoverable.&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt">The accompanying financial
statements have been prepared on a going concern basis, which implies the
Company will continue to realize its assets and discharge its liabilities in the
normal course of business. The Company has never generated revenues since
inception and has never paid any dividends and is unlikely to pay dividends or
generate earnings in the immediate or foreseeable future. The continuation of
the Company as a going concern is dependent upon the continued financial support
from its shareholders, the ability of the Company to obtain necessary equity
financing to continue operations, confirmation of the Company's interests in the
underlying properties, and the attainment of profitable operations. As at
February 29, 2008, the Company has never generated any revenues and has an
accumulated loss of $70,888, since inception. 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.</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of
Significant Accounting Policies</b></p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basis of
Presentation</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">These financial statements and
related notes are presented in accordance with accounting principles generally
accepted in the United States, and are expressed in U.S. dollars. The Company's
fiscal year-end is February 28 (29 in leap years).</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Use of Estimates</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">The preparation of financial
statements in conformity with U.S. generally accepted accounting principles
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. Actual results could differ
from those estimates.</p>
<p class="MsoNormal" align="center" style="text-align:center">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">46</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;</font><p class="MsoNormal" align="center" style="text-align:center"><b>
<font face="Arial">Santos Resource Corp.<br>
</font></b><font face="Arial" size="2">(an exploration stage company)<br>
Notes to the Financial Statements<br>
For the year ending February 29, 2008<br>
(Expressed in U.S. dollars)</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of
Significant Accounting Policies (continued)</b></p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and Diluted
Net Income (Loss) Per Share</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">The Company computes net income
(loss) per share in accordance with SFAS No. 128, &quot;<i>Earnings per Share</i>&quot;.
SFAS No. 128 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 would be 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. There were no
dilutive instruments outstanding at February 29, 2008.</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive Loss</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">SFAS No. 130, &quot;<i>Reporting
Comprehensive Income</i>,&quot; establishes standards for the reporting and display
of comprehensive loss and its components in the financial statements. As at
February 29, 2008, the Company has no items that represent a comprehensive loss
and, therefore, has not included a schedule of comprehensive loss in the
financial statements.</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and Cash
Equivalents</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">The Company considers all highly
liquid instruments with maturity of three months or less at the time of issuance
to be cash equivalents.</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mineral Property
Costs</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">The Company has been in the
exploration stage since its inception on May 24, 2006 and has not yet realized
any revenues from its planned operations. It is primarily engaged in the
acquisition and exploration of mining properties. Mineral property exploration
costs are expensed as incurred. Mineral property acquisition costs are initially
capitalized when incurred using the guidance in EITF 04-02, &quot;<i>Whether Mineral
Rights Are Tangible or Intangible Assets</i>&quot;. The Company assesses the carrying
costs for impairment under SFAS No. 144, &quot;<i>Accounting for Impairment or
Disposal of Long Lived Assets</i>&quot; at each fiscal quarter end. When it has been
determined that a mineral property can be economically developed as a result of
establishing proven and probable reserves, the costs then incurred to develop
such property, are capitalized. Such costs will be amortized using the
units-of-production method over the estimated life of the probable reserve. If
mineral properties are subsequently abandoned or impaired, any capitalized costs
will be charged to operations.</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-lived Assets</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">In accordance with SFAS No. 144,
&quot;<i>Accounting for the Impairment or Disposal of Long-Lived Assets</i>&quot;, the
carrying value of long-lived assets is reviewed on a regular basis for the
existence of facts or circumstances that may suggest impairment. The Company
recognizes impairment when the sum of the expected undiscounted future cash
flows is less than the carrying amount of the asset. Impairment losses, if any,
are measured as the excess of the carrying amount of the asset over its
estimated fair value.</p>
<p class="MsoNormal" align="center" style="text-align:center">47</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;</font><p class="MsoNormal" align="center" style="text-align:center"><b>
<font face="Arial">Santos Resource Corp.<br>
</font></b><font face="Arial" size="2">(an exploration stage company)<br>
Notes to the Financial Statements<br>
For the year ending February 29, 2008<br>
(Expressed in U.S. dollars)</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summary of
Significant Accounting Policies (continued)</b></p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Instruments</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">The fair values of financial
instruments, which include cash and accounts payable and accrued liabilities,
were estimated to approximate their carrying values due to the immediate or
short-term maturity of these financial instruments. The Company's mineral
property is in Quebec and its administrative operation is in Canada, which
results in exposure to market risks from changes in foreign currency rates. The
financial risk is the risk to the Company's operations that arise from
fluctuations in foreign exchange rates and the degree of volatility of these
rates. Currently, the Company does not use derivative instruments to reduce its
exposure to foreign currency risk.</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income Taxes</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">Potential benefits of income tax
losses are not recognized in the accounts until realization is more likely than
not. The Company has adopted SFAS No. 109 &quot;<i>Accounting for Income Taxes</i>&quot;
and Interpretation No. 48 &quot;Accounting for Uncertainty in Income Taxes - an
Interpretation of FASB Statement No,. 109&quot; (&quot;FIN No. 48&quot;) as of its inception.
Pursuant to this guidance the Company is required to compute tax asset benefits
for net operating losses carried forward. The potential benefits of net
operating losses have not been recognized in these financial statements because
the Company cannot be assured it is more likely than not it will utilize the net
operating losses carried forward in future years.&nbsp; FIN 48 prescribes a
recognition and measurement model for uncertain tax positions taken or expected
to be taken in the Company's tax returns. FIN 48 provides guidance on
recognition, classification, presentation, and disclosure of unrecognized tax
benefits. </p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign Currency
Translation</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">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 SFAS No. 52
&quot;<i>Foreign Currency Translation</i>&quot;, using the exchange rate prevailing at the
balance sheet date. Non-monetary assets are translated at historical exchange
rates, and revenue and expense items at the average rate of exchange prevailing
during the period. Gains and losses arising on 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.</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recent Accounting
Pronouncements</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">The Financial Accounting
Standards Board has issued SFAS No. 155 &quot;Accounting for Certain Hybrid Financial
Instruments - an amendment of FASB Statements No. 133 and 140&quot; and No. 156
&quot;Accounting for Servicing of Financial Assets - an amendment of FASB Statement
No. 140&quot;, but they are not expected to have a material effect in the Company's
results of operations or financial position.</p>
<p class="MsoNormal" style="margin-top:12.0pt">In September 2006, the FASB
issued SFAS 157, Fair Value Measurements, which defines fair value, establishes
a framework for measuring fair value, and expands fair value disclosures. The
standard does not require any new fair value measurements. This standard is
effective for fiscal years beginning after November 15, 2007. The adoption of
this new announcement is not expected to have a material effect on the Company's
financial position or results of operations.</p>
<p class="MsoNormal" align="center" style="text-align:center">48</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;</font><p class="MsoNormal" align="center" style="text-align:center"><b>
<font face="Arial">Santos Resource Corp.<br>
</font></b><font face="Arial" size="2">(an exploration stage company)<br>
Notes to the Financial Statements<br>
For the year ending February 29, 2008<br>
(Expressed in U.S. dollars)</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of
Significant Accounting Policies (continued)</b></p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recent Accounting
Pronouncements (continued)</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">In February, 2007, the FASB
issued Statement of Financial Accounting Standards No. 159, &quot;The Fair Value
Option for Financial Assets and Financial Liabilities - Including an amendment
of FASB Statement No. 115&quot; (hereinafter &quot;SFAS No. 159&quot;). This statement permits
entities to choose to measure many financial instruments and certain other items
at fair value. The objective is to improve financial reporting by providing
entities with the opportunity to mitigate volatility in reported earnings caused
by measuring related assets and liabilities differently without having to apply
complex hedge accounting provisions. This Statement is expected to expand the
use of fair value measurement, which is consistent with the Board's long-term
measurement objectives for accounting for financial instruments. This statement
is effective as of the beginning of an entity's first fiscal year that begins
after November 15, 2007, although earlier adoption is permitted. Management has
not determined the effect that adopting this statement would have on the
Company's financial condition or results of operation.</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related Party
Transactions</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in">a)&nbsp;&nbsp; On June 25,
2007, the Company issued 75,000 shares of common stock at $0.15 per share to
Starfire Minerals as part of its contract to Option to Purchase Property in
Quebec.&nbsp; Richard Pierce, President of Santos Resource Corp. is a director on the
board of each company.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in">b)&nbsp;&nbsp; A
shareholder loaned the company US$9,852 (CAD$10,000) in April 2007. The loan is
non interest bearing and unsecured and is payable upon request from the
shareholder.</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mineral Properties</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">On June 25, 2007 the Company
signed an option agreement to acquire a 75%&nbsp; interest in 18 mineral property
claims in Northern Quebec known as the Lordeau Property, with Starfire Minerals
Inc. (&quot;Starfire&quot;). Santos was granted an option to acquire 75% of the right,
title and undivided interest in the property (subject to the NSR Royalty
reserved to Starfire). Terms and conditions are as follows:&nbsp;&nbsp; </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in">a)&nbsp;&nbsp;&nbsp;$60,000
cash payment by Santos: </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-indent:-.25in">(i)&nbsp;&nbsp; $10,000 on
execution of this agreement (paid); </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-indent:-.25in">(ii)&nbsp;&nbsp; $25,000
on or before September 30, 2008; </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-indent:-.25in">(iii)&nbsp; $25,000
on or before July 25, 2009; and</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in">b)&nbsp;&nbsp;&nbsp;75,000
common shares of Santos to be allotted and issued and certificates therefore
delivered to Starfire as follows: </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-indent:-.25in">(i)&nbsp;&nbsp; 75,000
common shares (issued June 25, 2007)</p>
<p class="MsoNormal" align="center" style="text-align:center">49</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;</font><p class="MsoNormal" align="center" style="text-align:center"><b>
<font face="Arial">Santos Resource Corp.<br>
</font></b><font face="Arial" size="2">(an exploration stage company)<br>
Notes to the Financial Statements<br>
For the year ending February 29, 2008<br>
(Expressed in U.S. dollars)</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mineral Properties
(continued)</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">In addition, any shares
delivered, cash payments made, or Expenditures incurred toward the option price
that is over and above that required to be made during a particular time shall
be carried forward and applied against the required payment in subsequent
periods.</p>
<p class="MsoNormal" style="margin-top:12.0pt">Santos will pay Starfire a 3% net
smelter return royalty (&quot;NSR Royalty&quot;).&nbsp; Santos may purchase in the aggregate up
to two-thirds (i.e., 2% NSR Royalty) of the NSR Royalty on the basis of one
hundred thousand dollars for each one-tenth percent of the NSR Royalty (i.e.,
$100,000 per 0.1% NSR Royalty) acquired on the first one-half of the NSR Royalty
(i.e., the first 1% NSR Royalty), and one hundred fifty ($150,000) dollars for
each one-tenth percent of the NSR Royalty (i.e., $150,000 per 0.1% NSR Royalty)
thereafter for the remaining NSR Royalty (i.e., the remaining 1% NSR Royalty).&nbsp;
To exercise its option to purchase the NSR Royalty or any portion thereof,
Santos must provide the Owner with at least 30 days advance written notice of
its intention to do so, and must close upon each purchase within 60 days of each
notice.</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">On June 19, 2007, the Company
issued 31,040,000 shares of common stock at $0.0005 per share for cash proceeds
of $15,520 and contributed services of $15,520, to Directors, officers and a
relative of a Director.</p>
<p class="MsoNormal" style="margin-top:12.0pt">On June 25, 2007 the Company
issued 75,000 shares of common stock to Starfire Minerals at $0.15 per share for
proceeds of $11,250, as part of its contract to Option to purchase Property in
Quebec.</p>
<p class="MsoNormal" style="margin-top:12.0pt">On February 1, 2008, the Company
issued 961,500 shares of common stock at $0.15 per share for proceeds of
$144,225, all collected in the current year.</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">On July 16, 2007, we entered into
a services retainer agreement with Fraser and Company LLP, to provide legal
services to Santos.&nbsp; Pursuant to the agreement, Fraser and Company LLP will
provide legal services in connection with the organization and set up of Santos
and the preparation and filing of a registration statement with the SEC for a
fee of approximately $50,000 (CAD$50,000).&nbsp; An initial payment of $30,000
(CAD$30,000) is payable on filing of the initial registration statement, and the
balance of $20,000 (CAD$20,000) is payable upon the registration statement being
declared effective by the SEC.</p>
<p class="MsoNormal" align="center" style="text-align:center">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">50</p>
<hr noshade color="#808080"><p Style='page-break-before:always'></font><p class="MsoNormal" align="center" style="text-align:center"><b>
<font face="Arial">Santos Resource Corp.<br>
</font></b><font face="Arial" size="2">(an exploration stage company)<br>
Notes to the Financial Statements<br>
For the year ending February 29, 2008<br>
(Expressed in U.S. dollars)</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Instruments</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">The Company's financial
instruments consist of cash and accrued liabilities unless otherwise noted, it
is management's opinion that the Company is not exposed to significant interest,
currency, or credit risks arising from these financial instruments. The fair
values of these financial instruments approximate their carrying value, unless
otherwise noted.</p>
<p class="MsoNormal" style="margin-top:12.0pt">Currency risk is the risk to the
Company's earnings that arises from fluctuations of foreign exchange rates and
the degree of volatility of these rates. The Company does not use derivative
instruments to reduce its exposure to foreign currency risk.</p>
<p class="MsoNormal" style="margin-top:12.0pt; margin-bottom:0">At February 29, 2008 the Company
had the following financial assets and liabilities in Canadian dollars:</p>
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse">
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="288" valign="top" style="width:3.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="115" valign="top" style="width:1.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">USD
		equivalent</font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="115" valign="top" style="width:1.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">CDN
		Dollars</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="288" valign="top" style="width:3.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Cash on
		deposit&nbsp; </font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="115" valign="top" style="width:1.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;margin-right:.4in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">132,303</font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="115" valign="top" style="width:1.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;margin-right:.4in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">129,630</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="288" valign="top" style="width:3.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Accounts
		payable and accrued liabilities&nbsp; </font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="115" valign="top" style="width:1.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;margin-right:.4in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">11,712</font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">$</font></td>
		<td width="115" valign="top" style="width:1.2in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;margin-right:.4in;
  margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right">
		<font size="2">11,484</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt">At February 29, 2008 US dollar
amounts were converted at a rate of $0.9798 Canadian dollars to $1.00 US dollar.</p>
<p class="MsoNormal" style="margin-top:12.0pt">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income Taxes</b></p>
<p class="MsoNormal" style="margin-top:12.0pt">Potential benefits of income tax
losses are not recognized in the accounts until realization is more likely than
not. The Company has a net operating loss of $35,222, which expires in 2028.
Pursuant to SFAS No. 109, the Company is required to compute tax asset benefits
for net operating losses carried forward. The potential benefits of net
operating losses have not been recognized in these financial statements because
the Company cannot be assured it is more likely than not it will utilize the net
operating losses carried forward in future years.</p>
<p class="MsoNormal" style="margin-top:12.0pt">The components of the net
deferred tax asset at February and the statutory tax rate, the effective tax
rate and the elected amount of the valuation allowance are scheduled below:</p>
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse">
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="192" valign="top" style="width:2.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="38" valign="top" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="96" valign="top" style="width:1.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">February 29,<br>
		2008<br>
		$</font></td>
		<td width="38" valign="top" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="96" valign="top" style="width:1.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="center" style="text-align:center">
		<font size="2">February 28,<br>
		2007<br>
		$</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="192" valign="bottom" style="width:2.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">Net Loss&nbsp; </font></td>
		<td width="38" valign="bottom" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width:1.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">70,888</font></td>
		<td width="38" valign="top" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width:1.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">-</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="192" valign="bottom" style="width:2.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">Statutory Tax Rate&nbsp; </font></td>
		<td width="38" valign="bottom" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width:1.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">35%</font></td>
		<td width="38" valign="top" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width:1.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">35%</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="192" valign="bottom" style="width:2.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">Deferred Tax Asset&nbsp; </font></td>
		<td width="38" valign="bottom" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width:1.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">24,811</font></td>
		<td width="38" valign="top" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width:1.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">-</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="192" valign="bottom" style="width:2.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">Valuation Allowance&nbsp; </font></td>
		<td width="38" valign="bottom" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width:1.0in;border:none;border-bottom:solid windowtext .5pt;
  padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">(24,811)</font></td>
		<td width="38" valign="top" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width:1.0in;border:none;border-bottom:solid windowtext .5pt;
  padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">-</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="192" valign="bottom" style="width:2.0in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">Net Deferred Tax Asset&nbsp; </font></td>
		<td width="38" valign="bottom" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width: 1.0in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 2.25pt double windowtext; padding-left: 1.8pt; padding-right: 1.8pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">-</font></td>
		<td width="38" valign="top" style="width:.4in;padding:0in 1.8pt 0in 1.8pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="96" valign="bottom" style="width: 1.0in; border-left: medium none; border-right: medium none; border-top: medium none; border-bottom: 2.25pt double windowtext; padding-left: 1.8pt; padding-right: 1.8pt; padding-top: 0in; padding-bottom: 0in">
		<p class="MsoNormal" align="right" style="margin-right:.3in;text-align:right">
		<font size="2">-</font></td>
	</tr>
</table>
<p class="MsoNormal" align="center" style="text-align:left">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">51</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
13,836,500 SHARES</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
OF SANTOS RESOURCE CORP.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
COMMON STOCK</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
PROSPECTUS</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<i>&nbsp;</i></p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
Date:&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>, 2008</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">All dealers
that effect transactions in our shares, whether or not participating in this
offering, may be required to deliver a prospectus.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We have not
authorized any dealer, salesperson or other person to provide any information or
make representation about Santos Resource Corp. except the information or
representation contained in this prospectus.&nbsp; You should not rely on any
additional information or representation if made.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">52</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" align="center" style="text-align:center"><b>SANTOS
RESOURCE CORP.<br>
</b>11450 - 201A Street, Maple Ridge<br>
British Columbia, Canada&nbsp; V2X 0Y4</p>
<p class="MsoNormal" style="margin-top:12.0pt"><b>Part II - Information Not
Required In Prospectus</b></p>
<p class="MsoNormal" style="margin-top:12.0pt"><a name="_Toc510680371"><b>Item
24.&nbsp;&nbsp;Indemnification of Directors and Officers</b></a><b> </b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Sections
78.7502 and 78.751 of the Nevada Revised Statutes provide for indemnification of
the Company's officers and directors in certain situations where they might
otherwise personally incur liability, judgments, penalties, fines and expenses
in connection with a proceeding or lawsuit to which they might become parties
because of their position with the Company. Sections 78.7502 and 78.791 provide
as follows: </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Section
78.7502.&nbsp;&nbsp; Discretionary and mandatory indemnification of officers, directors,
employees and agents: General provisions. </p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative,
except an action by or in the right of the corporation, by reason of the fact
that he is or was a director, officer, employee or agent of the corporation, or
is or was serving at the request of the corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or
other enterprise, against expenses, including attorneys' fees, judgments, fines
and amounts paid in settlement actually and reasonably incurred by him in
connection with the action, suit or proceeding if he acted in good faith and in
a manner which he reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere or its equivalent, does not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the corporation, and that, with respect to any criminal action or
proceeding, he had reasonable cause to believe that his conduct was unlawful.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action or
suit by or in the right of the corporation to procure a judgment in its favor by
reason of the fact that he is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against expenses, including amounts paid in
settlement and attorneys' fees actually and reasonably incurred by him in
connection with the defense or settlement of the action or suit if he acted in
good faith and in a manner which he reasonably believed to be in or not opposed
to the best interests of the corporation. Indemnification may not be made for
any claim, issue or matter as to which such a person has been adjudged by a
court of competent jurisdiction, after exhaustion of all appeals therefrom, to
be liable to the corporation or for amounts paid in settlement to the
corporation, unless and only to the extent that the court in which the action or
suit was brought or other court of competent jurisdiction determines upon
application that in view of all the circumstances of the case, the person is
fairly and reasonably entitled to indemnity for such expenses as the court deems
proper.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent that a director, officer, employee or agent of a
corporation has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in subsections 1 and 2, or in defense of
any claim, issue or matter therein, the corporation shall indemnify him against
expenses, including attorneys' fees, actually and reasonably incurred by him in
connection with the defense.</p>
<p class="MsoNormal" align="center" style="text-align:center">53</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">Section
78.751&nbsp;&nbsp;Authorization required for discretionary indemnification; advancement of
expenses; limitation on indemnification and advancement of expenses.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any discretionary indemnification under NRS 78.7502 unless ordered by
a court or advanced pursuant to subsection 2, may be made by the corporation
only as authorized in the specific case upon a determination that
indemnification of the director, officer, employee or agent is proper in the
circumstances. The determination must be made:</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By the stockholders;</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By the board of directors by majority vote of a quorum
consisting of directors who were not parties to the action, suit or proceeding;</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If a majority vote of a quorum consisting of directors who
were not parties to the action, suit or proceeding so orders, by independent
legal counsel in a written opinion; or</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If a quorum consisting of directors who were not parties to
the action, suit or proceeding cannot be obtained, by independent legal counsel
in a written opinion.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The articles of incorporation, the bylaws or an agreement made by the
corporation may provide that the expenses of officers and directors incurred in
defending a civil or criminal action, suit or proceeding must be paid by the
corporation as they are incurred and in advance of the final disposition of the
action, suit or proceeding, upon receipt of an undertaking by or on behalf of
the director or officer to repay the amount if it is ultimately determined by a
court of competent jurisdiction that he is not entitled to be indemnified by the
corporation. The provisions of this subsection do not affect any rights to
advancement of expenses to which corporate personnel other than directors or
officers may be entitled under any contract or otherwise by law.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.5in">
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The indemnification and advancement of expenses authorized in or
ordered by a court pursuant to this section:</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Does not exclude any other rights to which a person seeking
indemnification or advancement of expenses may be entitled under the articles of
incorporation or any bylaw, agreement, vote of stockholders or disinterested
directors or otherwise, for either an action in his official capacity or an
action in another capacity while holding his office, except that
indemnification, unless ordered by a court pursuant to NRS 78.7502 or for the
advancement of expenses made pursuant to subsection 2, may not be made to or on
behalf of any director or officer if a final adjudication establishes that his
acts or omissions involved intentional misconduct, fraud or a knowing violation
of the law and was material to the cause of action.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:1.0in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.5in">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Continues for a person who has ceased to be a director,
officer, employee or agent and inures to the benefit of the heirs, executors and
administrators of such a person.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">To the extent
that indemnification may be related to liability arising under the Securities
Act, the Securities and Exchange Commission takes the position that
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Item 25.&nbsp;
Other Expenses of Issuance and Distribution</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">The following
table sets forth all estimated costs and expenses, other than underwriting
discounts, commissions and expense allowances, payable by the issuer in
connection with the offering for the securities included in this registration
statement:</p>
<p class="MsoNormal">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">54</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse; margin-left: .4pt">

		<tr>
			<td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in">
			<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
			<td width="336" valign="top" style="width:3.5in;padding:0in 0in 0in 0in">
			<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
			<td width="19" valign="top" style="width:.2in;border:none;border-bottom:solid windowtext .5pt;
   padding:0in 0in 0in 0in">
			<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
			<td width="67" valign="top" style="width:.7in;border:none;border-bottom:solid windowtext .5pt;
   padding:0in 0in 0in 0in">
			<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
			<font size="2">Amount</font></td>
			<td width="10" valign="top" style="width:.1in;border:none;border-bottom:solid windowtext .5pt;
   padding:0in 0in 0in 0in">
			<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		</tr>

	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="336" valign="top" style="width:3.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">SEC Registration Fee</font></td>
		<td width="19" valign="top" style="width: .2in; border: medium none; padding: 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">$</font></td>
		<td width="67" valign="top" style="width: .7in; border: medium none; padding: 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">136
		</font></td>
		<td width="10" valign="top" style="width: .1in; border: medium none; padding: 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="336" valign="top" style="width:3.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">Transfer Agent and Miscellaneous Fees</font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">$</font></td>
		<td width="67" valign="top" style="width:.7in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">1,000
		</font></td>
		<td width="10" valign="top" style="width:.1in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="336" valign="top" style="width:3.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">Accounting Fees and Expenses</font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">$</font></td>
		<td width="67" valign="top" style="width:.7in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">11,200
		</font></td>
		<td width="10" valign="top" style="width:.1in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="336" valign="top" style="width:3.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">Legal Fees and Expenses</font></td>
		<td width="19" valign="top" style="width:.2in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">$</font></td>
		<td width="67" valign="top" style="width:.7in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">56,000&nbsp;
		</font></td>
		<td width="10" valign="top" style="width:.1in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="336" valign="top" style="width:3.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">Printing and Shipping Expenses</font></td>
		<td width="19" valign="top" style="width:.2in;border:none;border-bottom:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">$</font></td>
		<td width="67" valign="top" style="width:.7in;border:none;border-bottom:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">464
		</font></td>
		<td width="10" valign="top" style="width:.1in;border:none;border-bottom:solid windowtext .5pt;
  padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
	</tr>
	<tr>
		<td width="48" valign="top" style="width:.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
		<td width="336" valign="top" style="width:3.5in;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><b><font size="2">Total</font></b></td>
		<td width="19" valign="top" style="width: .2in; border: medium none; padding: 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">$</font></td>
		<td width="67" valign="top" style="width: .7in; border: medium none; padding: 0in">
		<p class="MsoNormal" align="right" style="margin-top:6.0pt;margin-right:0in;
  margin-bottom:6.0pt;margin-left:0in;text-align:right"><font size="2">68,800
		</font></td>
		<td width="10" valign="top" style="width: .1in; border: medium none; padding: 0in">
		<p class="MsoNormal" style="margin-top:6.0pt;margin-right:0in;margin-bottom:
  6.0pt;margin-left:0in"><font size="2">&nbsp;</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">All amounts
are estimates, other than the SEC's registration fee.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">We are paying
all expenses of the offering listed above. No portion of these expenses will be
borne by the selling shareholders named in this prospectus. The selling
shareholders, however, will pay any other expenses incurred in selling their
common stock, including any brokerage commissions or costs of sale. </p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Item 26.&nbsp;
Recent Sales of Unregistered Securities</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">On June 19,
2007, we issued an aggregate of 31,040,000 shares of common stock at a price
of $0.0005 per share to nine founding shareholders, which include our directors
and sole officer. We received $15,520 from this offering.&nbsp; These shares were
issued pursuant to Regulation S of the Securities Act of 1933.&nbsp; The purchasers
represented to us that they were non-US persons, as defined in Regulation S, and
that their intentions to acquire the securities was for investment only and not
with a view toward distribution.&nbsp; We did not engage in a distribution of this
offering in the United States and no general solicitation was made to the public
and no advertising was conducted for the offering.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">On June 17,
2007, we issued 75,000 shares of common stock to Starfire Minerals Inc., a
British Columbia company, as partial consideration for Starfire granting us an
option to acquire 75% of the Lourdeau Claims.&nbsp; These shares are issued at a
deemed price of $0.15 per share.&nbsp; These shares were issued pursuant to
Regulation S of the Securities Act of 1933.&nbsp; Starfire represented to us that it
was a non-US person, as defined in Regulation S, and that its intentions to
acquire the securities was for investment only and not with a view toward
distribution.&nbsp; We did not engage in a distribution of this offering in the
United States and no general solicitation was made to the public and no
advertising was conducted for the offering.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">On September
18, 2007, we issued 13,836,500 shares of common stock to 40 purchasers at $0.15
per share pursuant to Regulation S of the Securities Act.&nbsp; The purchasers
represented to us that they were non-US persons, as defined in Regulation S, and
that their intentions to acquire the securities was for investment only and not
with a view toward distribution.&nbsp; We did not engage in a distribution of this
offering in the United States and no general solicitation was made to the public
and no advertising was conducted for the offering.</p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify"><b>Item 27.&nbsp;
Exhibits Index</b></p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">

		<tr>
			<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
			<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
			<b><font size="2">No.</font></b></td>
			<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
			<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
			<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
			<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">
			Exhibit Name</font></b></td>
		</tr>

	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">3.1</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Articles
		of Incorporation</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">3.2</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Bylaws
		</font></td>
	</tr>
</table>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
55</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<table border="0" cellspacing="0" cellpadding="0" width="100%" style="width: 100.0%; border-collapse: collapse">

		<tr>
			<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
			<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
			<b><font size="2">No.</font></b></td>
			<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
			<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
			<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
			<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">
			Exhibit Name</font></b></td>
		</tr>

	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">4.1</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Specimen
		Stock Certificate</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">5.1</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Opinion of
		Counsel </font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">10.1</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Mineral
		Property Option Agreement dated June 25, 2007 between Starfire Minerals
		Inc. and Santos Resource Corp., whereby Santos has an option to acquire
		a 75% interest in and to the Lourdeau Property</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">14</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Code of
		Ethics</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">23.1</font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Consent of
		MacKay LLP, Chartered Accountant</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">23.2 </font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Consent of
		Counsel (included in 5.1)</font></td>
	</tr>
	<tr>
		<td width="7%" valign="top" style="width:7.7%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" align="right" style="margin-top:12.0pt;text-align:right">
		<font size="2">23.3 </font></td>
		<td width="3%" valign="top" style="width:3.08%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">&nbsp;</font></td>
		<td width="89%" valign="top" style="width:89.22%;padding:0in 0in 0in 0in">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Consent of
		Michel Boily, Ph.D., P. Geo., Geologist</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt">All other Exhibits called for by
Rule 601 of Regulation S-K are not applicable to this filing.&nbsp; Information
pertaining to our common stock is contained in our Articles of Incorporation and
Bylaws.</p>
<p class="MsoNormal" style="margin-top:12.0pt"><a name="_Toc515943522"><b>Item
28.&nbsp;&nbsp;Undertakings</b></a><b> </b></p>
<p class="MsoNormal" style="margin-top:12.0pt">The undersigned registrant hereby
undertakes to:</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.25in">(1) File, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement to:</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in">
(i) &nbsp; Include any prospectus required by Section 10(a)(3) of the Securities Act
of 1933, as amended (the &quot;Securities Act&quot;);</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in">
(ii) &nbsp; Reflect in the prospectus any facts or events which, individually or
together, represent a fundamental change in the information in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of the securities offered would
not exceed that which was registered) and any deviation from the low or high end
of the estimated maximum offering range may be reflected in the form of a
prospectus filed with the Commission pursuant to Rule 424(b) under the
Securities Act if, in the aggregate, the changes in volume and price represent
no more than a 20% change in the maximum aggregate offering price set forth in
the &quot;Calculation of Registration Fee&quot; table in the effective registration
statement, and</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in">
(iii) Include any additional or changed material information on the plan of
distribution.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.25in">(2) For determining liability under the Securities Act, treat each
post-effective amendment as a new registration statement of the securities
offered, and the offering of the securities at that time to be the initial bona
fide offering.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.25in">(3) File a post-effective amendment to remove from registration any of
the securities that remain unsold at the end of the offering.</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;text-indent:
-.25in">(4) For determining liability of the undersigned small business issuer
under the Securities Act to any purchaser in the initial distribution of the
securities, the undersigned undertakes that in a primary offering of securities
of the undersigned small business issuer pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to
the purchaser, if the securities are </p>
<p class="MsoNormal" align="center" style="text-align:center">56</p>
<hr noshade color="#808080"><p Style='page-break-before:always'>
&nbsp;<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.25in;margin-bottom:.0001pt;text-align:justify">offered or sold
to such purchaser by means of any of the following communications, the
undersigned small business issuer will be a seller to the purchaser and will be
considered to offer or sell such securities to such purchaser:</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in">
(i)&nbsp; Any preliminary prospectus or prospectus of the undersigned small business
issuer relating to the offering required to be filed pursuant to Rule 424;</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in">
(ii) Any free writing prospectus relating to the offering prepared by or on
behalf of the undersigned small business issuer or used or referred to by the
undersigned small business issuer;</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in">
(iii) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned small business issuer or
its securities provided by or on behalf of the undersigned small business
issuer; and</p>
<p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:.5in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in">
(iv) Any other communication that is an offer in the offering made by the
undersigned small business issuer to the purchaser.</p>
<p class="MsoNormal" align="center" style="margin-top:12.0pt;text-align:center">
<b>Signatures</b></p>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In accordance
with the requirements of the Securities Act of 1933, the Registrant certifies
that it has reasonable grounds to believe that it meets all the requirements of
filing on Form S-1 and authorized this registration statement to be signed on
its behalf by the undersigned, in the City of Vancouver, British Columbia,
Canada on July 9, 2008.</p>
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse">
	<tr>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2">&nbsp;</font></td>
		<td width="384" valign="top" style="width:4.0in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><b><font size="2">SANTOS
		RESOURCE CORP.</font></b></td>
	</tr>
	<tr>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		Date:&nbsp; July 9, 2008</font></td>
		<td width="384" valign="top" style="width:4.0in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-bottom: 0"><font size="2"><br>
		<br>
		By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><u><font size="2">
		/s/ </font><font size="2" FACE="Arial">Richard
		Pierce</font><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u>
		</p>
		<p class="MsoNormal" style="margin-left:.5in; margin-top:0"><font size="2">Richard
		Pierce<br>
		President, Secretary and Treasury<br>
		(Principal Executive Officer and <br>
		Principal Financial Officer)</font></td>
	</tr>
</table>
<p class="MsoNormal" style="margin-top:12.0pt;text-align:justify">In accordance
with the requirements of the Securities Act of 1933, this registration statement
was signed by the following persons in the capacities and on the dates stated.</p>
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse">
	<tr>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Signatures</font></td>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Title</font></td>
		<td width="154" valign="top" style="width:1.6in;padding:0in 5.4pt 0in 5.4pt">
		<p class="MsoNormal" style="margin-top:12.0pt"><font size="2">Date</font></td>
	</tr>
	<tr>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		<u>/s/ </u></font><u><font size="2" FACE="Arial">Richard
		Pierce</font></u><font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
		</u>Richard Pierce</font></td>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		President, Secretary, Treasurer and Director<br>
		(Principal Executive Officer and Principal Financial Officer)</font></td>
		<td width="154" valign="top" style="width:1.6in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		July 9, 2008</font></td>
	</tr>
	<tr>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		<u>/s/ Shih-Yi Chuang&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
		</u>Shih-Yi Chuang</font></td>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		Director</font></td>
		<td width="154" valign="top" style="width:1.6in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		July 9, 2008</font></td>
	</tr>
	<tr>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		<u>/s/
		</u> </font><u>
		<font size="2" FACE="Arial">Andrew Lee Smith </font></u><font size="2">
		<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
		</u>Andrew Lee Smith </font></td>
		<td width="240" valign="top" style="width:2.5in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		Director</font></td>
		<td width="154" valign="top" style="width:1.6in;padding:0in 5.4pt 0in 5.4pt">
		<font size="2"><br>
		<br>
		July 9, 2008</font></td>
	</tr>
</table>
<p class="MsoNormal" style="text-align:justify">&nbsp;</p>
<p class="MsoNormal" align="center" style="text-align:center">57</p>
<hr noshade color="#808080">

</font>

</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "s1.htm", "description": "S-1 REGISTRATION STATEMENT", "secsgml_size_bytes": 647856}]
{"company-data": {"conformed-name": "Santos Resource Corp.", "cik": "0001435387", "irs-number": "980507846", "state-of-incorporation": "NV", "fiscal-year-end": "0228"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-152324", "film-number": "08950807"}, "business-address": {"street1": "11450 - 201A STREET", "city": "MAPLE RIDGE", "state": "A1", "zip": "V2X 0Y4", "phone": "(604) 460-8440 X222"}, "mail-address": {"street1": "11450 - 201A STREET", "city": "MAPLE RIDGE", "state": "A1", "zip": "V2X 0Y4"}}
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JULY
14, 2008
Registration No. 333-___________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
Registration Statement
Under the Securities Act of 1933
SANTOS RESOURCE CORP.
(Exact name of Registrant as specified in its charter)
Nevada
(State or Other Jurisdiction of Incorporation or Organization)
1000
(Primary Standard Industrial Classification Code Number)
98-0507846
(I.R.S. Employer
Identification No.)
11450 - 201A Street
Maple Ridge, British Columbia
Canada  V2X 0Y4
Telephone No.:  (604) 460-8440
(Address and telephone number of principal executive office)
Business First Formations, Inc.
3990 Warren Way
Reno, Nevada
USA  89509
Telephone No.:  (775) 338-2598
(Name, address and telephone number of agent for service)
Copies of all communications, including all communications sent
to the agent for service, should be sent to:
Fraser and Company LLP
999 West Hastings Street, Suite 1200
Vancouver, British Columbia
Canada  V6C 2W2
Telephone No.:  (604) 669-5244
Facsimile No.:  (604) 669-5791
Approximate date of proposed sale to the public:  As soon as practicable after this Registration Statement becomes effective.
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box.
ý
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
r
1
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
r
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
r
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
r
Accelerated filer
r
Non-accelerated filer
r
(Do not check if a smaller reporting company)
Smaller reporting company
ý
Calculation Of Registration Fee
Title
				of Each Class of Securities to be Registered
Amount
				to be Registered
Proposed Maximum Offering Price per Share
Proposed Maximum Aggregate Offering Price
Amount
				of Registration Fee
Common
13,836,500
$0.25
$3,459,125
$135.94
Up to
13,836,500 shares of our common stock may be sold by the selling shareholders to
the public at a fixed price of $0.25 per share until such time as the shares of
our common stock are quoted on the NASD Over-the-Counter Bulletin Board ("OTCBB")
or listed on an exchange.  Although we intend to apply for quotation of our
common stock on the OTCBB, public trading of our common stock may never
materialize.  If our common stock becomes quoted on the OTCBB, then the sale
price to the public will vary according to prevailing market prices or privately
negotiated prices by the selling shareholders.
The Company
hereby amends this registration statement on such date or dates as may be
necessary to delay its effective date until the Company shall file a further
amendment which specifically states that this registration statement shall
thereafter become effective in accordance with Section 8(a) of the Securities
Act of 1933 or until the registration statement shall become effective on such
date as the Commission, acting pursuant to said Section 8(a), may determine.
(COVER CONTINUED ON FOLLOWING PAGES)
2
Prospectus, Subject to Completion, Dated ________________ , 2008
Santos Resource Corp.
13,836,500 shares of Common Stock at $0.25 per share
This
prospectus relates to the resale, from time to time, of up to 13,836,500 shares
of our common stock by the selling shareholders named in the "Selling
Shareholders" section of this prospectus.  Santos Resource Corp. will not
receive any proceeds from this offering and has not made any arrangements for
the sale of these securities.  See "Risk Factors" commencing on page 8 for a
full discussion of the risks involved in this offering.
Offering Price
Commissions
Proceeds to Selling Shareholders
Per Share
$0.25
n/a
$0.25
Total
$3,459,125
n/a
$3,459,125
The
information in this prospectus is not complete and may be changed.  We may amend
or supplement this prospectus from time to time by filing amendments or
supplements as required.  You should read the entire prospectus and any
amendments or supplements carefully before you make your investment decision.
This
prospectus is not an offer to sell our securities and it is not soliciting an
offer to buy our securities in any state where the offer or sale is not
permitted.
Neither the
Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the accuracy or
adequacy of this prospectus.  Any representation to the contrary is a criminal
offence.
3
TABLE OF
CONTENTS
Page
PROSPECTUS SUMMARY
6
THE OFFERING
6
SUMMARY FINANCIAL INFORMATION
7
RISK FACTORS
8
FORWARD-LOOKING STATEMENTS
12
USE OF PROCEEDS
12
DETERMINATION OF OFFERING PRICE
12
DILUTION
13
SELLING SHAREHOLDERS
13
PLAN OF DISTRIBUTION
16
LEGAL PROCEEDINGS
20
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS
		AND CONTROL PERSONS
20
Executive Officers And Directors
20
Executive Compensation
21
Summary Compensation Table
22
Director Compensation Table
22
Significant Personnel
22
Committees Of The Board Of Directors
22
Code Of Ethics
22
Involvement In Certain Legal
		Proceedings
22
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
		OWNERS AND MANAGEMENT
23
DESCRIPTION OF CAPITAL STOCK
23
Common Stock
24
Preferred Stock
24
Dividend Policy
24
Share Purchase Warrants
24
Options
24
Convertible Securities
25
Nevada Anti-Takeover Laws
25
Combinations With Interested
		Stockholders
25
INTERESTS OF NAMED EXPERTS AND COUNSEL
25
LEGAL MATTERS
25
EXPERTS
25
CHANGES IN AND DISAGREEMENTS WITH
		ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
25
MARKET FOR COMMON EQUITY AND RELATED
		STOCKHOLDER MATTERS
26
No Public Market For Common Stock
26
New Rule 144
26
Penny Stock Regulation
26
Holders
27
4
Page
Dividends
27
Disclosures of Commission Position on
		Indemnification for Securities Act Liabilities
27
TRANSACTIONS WITH RELATED PERSONS
27
BUSINESS
28
History And Organization
28
Property Option Agreement
28
Technical Report on Properties
30
Recommended Exploration Program
30
Geological Exploration Program
30
Location, Accessibility, Climate, Local
		Resources Infrastructure and Physiography
32
History of the Property
32
Conclusions and Recommendations
33
Geological and Technical Staff
33
Competitive Factors
33
Location Challenges
34
Regulations
34
Environmental Factors
35
Employees
35
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
		FINANCIAL CONDITION AND RESULTS OF OPERATIONS PLAN OF OPERATIONS
35
Overview
35
Plan of Operations
35
Risk Factors
36
Financial Condition
36
Liquidity
37
Capital Resources
37
Results Of Operations
37
Off-balance Sheet Arrangements
37
AVAILABLE INFORMATION
37
INDEX TO FINANCIAL STATEMENTS
38
You should
rely only on the information contained in this prospectus and in any
accompanying prospectus supplement.  We have not, and the Selling Shareholders
have not, authorized anyone to provide you with information different from the
information contained in this prospectus.  The information in this prospectus is
accurate only as of the date of this prospectus, regardless of when this
prospectus is delivered or when any sale of our common stock occurs.
5
Prospectus Summary
The following
summary highlights selected information contained in this prospectus.  This
summary does not contain all the information you should consider before
investing in the securities.  Before making an investment decision, you should
read the entire prospectus carefully, including the "RISK FACTORS" section, the
financial statements and the notes to the financial statements.  As used
throughout this prospectus, the terms "Santos", the "Company", "we," "us," and
"our" refer to Santos Resource Corp.  All dollar amounts in this prospectus are
in U.S. dollars unless otherwise stated. 
Unless the context otherwise
requires, we have used an exchange rate of CAD$1 to US$1 in reference to amounts
in Canadian dollars.
Santos
Resource Corp. was incorporated under the laws of the State of Nevada on May 24,
2006. In connection with the organization of our Company, nine founding
shareholders of our Company contributed an aggregate of $15,520 cash in exchange
for a total of 31,040,000 shares of common stock.  In June 2007, we entered into
a property option agreement to acquire the Lourdeau Property in Quebec.  In
January 2008, we raised $144,225 from 32 BC resident placees by issuing 961,500
shares of common stock.  We have not commenced active business operations.  As
of the date hereof, all our cash has been raised from the issuance of
securities.  We are a "shell company" as defined under Rule 405 of the
Securities Act and Rule 12b-2 of the Exchange Act.
We are an
exploration stage company, and our business plan is to explore for minerals on
our mineral property.  In June 2007, we entered into a Property Option Agreement
that allows us to acquire a 75% interest in and to the Lourdeau claims (the "Lourdeau
Property" or "Lourdeau Claims"), which consist of 18 mineral claims covering
900.75 hectares (9.01km2) located in the La Grande geological area of the
province of Quebec in the James Bay Territory about 620 miles (1,000 km) north
of Montreal, Quebec.  We intend to explore for uranium on our property.  There
can be no assurance that valuable uranium deposits exist on the Lourdeau
Property until proper geological work and analysis is performed.  The Lourdeau
Property has no proven or probable mineral reserves.  Under the Property Option
Agreement, we have an option to acquire a 75% interest in and to the Lourdeau
Claims by paying a total of $10,000 in cash; issuing 75,000 shares to Starfire
Minerals Inc., the registered owner of the Lourdeau Claims; and incurring at
least a total of $25,000 of expenditures on the property before September 30,
2008, and another $25,000 of expenditures before July 25, 2009.  As of the date
hereof, $10,000 has been paid and 75,000 shares have been issued to Starfire. 
The Lourdeau Property is subject to a 3% Net Smelter Royalty ("NSR") interest
payable to Starfire.  We may purchase in the aggregate up to two-thirds of the
NSR by paying Starfire an aggregate of $2,500,000 (CAD$2,500,000) on the basis
of $100,000 per 0.1% NSR acquired on the first one-half of the NSR and $150,000
per 0.1% NSR thereafter for the remaining 1% NSR.
Our
administrative office is located at 11450 - 201A Street, Maple Ridge, British
Columbia, Canada  V2X 0Y4, telephone (604) 460-8440.  Our registered office is
located at 3990 Warren Way, Reno, Nevada 89509.  Our fiscal year end is February
28 (on a leap year our fiscal year end is February 29).
The Offering
Securities
		Being Offered
Up to 13,836,500 shares of our common stock held by the
		selling shareholders named in this prospectus.
Offering
		Price and Plan of Distribution
The selling shareholders named in this prospectus will
		sell the 13,836,500 shares of our common stock offered under this
		prospectus at an offering price of $0.25 per share unless the offered
		shares are quoted on the over-the-counter bulletin board. We intend to
		apply to the over-the-counter bulletin board to allow for the trading of
		our common stock when we become a reporting entity under the Securities
		Exchange Act of 1934. If our common stock becomes so traded and a market
		for the stock develops, the actual price of our stock will be determined
		by prevailing market prices at the time of sale or by private
		transactions negotiated by the selling shareholders named in this
6
prospectus. The offering price would thus be determined
		by market factors and the independent decisions of the selling
		shareholders named in this prospectus.
Minimum
		number of Shares to be sold in this Offering
None.
Securities
		issued and to be issued
32,076,500 shares of our common stock are issued and
		outstanding as of the date of this prospectus.  All of the 13,836,500
		shares to be sold under this prospectus will be sold by existing
		shareholders.
Use of
		Proceeds
We will not receive any proceeds from the sale of the
		common stock offered through this prospectus by the selling
		shareholders.
Summary Financial Information
As of Fiscal Year
Ended February 29, 2008
Balance
		Sheet Data:
Working
		Capital
$
111,059
Total
		Assets
$
132,623
Total
		Liabilities
$
21,564
Shareholder's Equity
$
111,059
Statement
		of Operations Data:
For the Period from Incorporation on May 24, 2006 to
		February 29, 2008
Revenue
NIL
Total
		Expenses
$
70,888
Net Income
		(Loss)
($
70,888
)
INVESTMENT
IN OUR COMPANY INVOLVES SIGNIFICANT RISKS BECAUSE OUR MINERAL CLAIMS ARE AT THE
EXPLORATION STAGE AS OPPOSED TO THE DEVELOPMENT STAGE.  OUR MINERAL CLAIMS DO
NOT HAVE A KNOWN BODY OF COMMERCIAL ORE.  THE COMPANY WILL NOT BE RAISING ANY
FUNDS IN THIS OFFERING.  THE COMPANY WILL USE AVAILABLE WORKING CAPITAL TO MEET
OUR GENERAL OPERATING EXPENSES AND TO MEET OUR OBLIGATIONS UNDER THE PROPERTY
OPTION AGREEMENT.  WE DO NOT HAVE THE FUNDS TO CONDUCT THE RECOMMENDED
EXPLORATION PROGRAM, WHICH CONSISTS OF GRAB AND CHANNEL SAMPLING AND
HELICOPTER-BORNE GEOPHYSICAL SURVEY AND COSTS APPROXIMATELY $107,570.  WE WILL
NEED TO RAISE ADDITIONAL MONEY BY PRIVATE PLACEMENTS TO MEET ANY FUTURE FUNDING
REQUIREMENTS.  WE ARE ALSO CONSIDERED
7
A
SHELL COMPANY AS DEFINED BY RULE 405 OF THE SECURITIES ACT AND EXCHANGE ACT RULE
12B-2 BECAUSE WE HAVE NOMINAL OPERATIONS AND NOMINAL ASSETS.
Risk Factors
There is no
assurance that our business will be profitable. We must conduct exploration to
determine what amount, type and quality of minerals, if any, exist on our
property. We do not claim to have any reserves whatsoever at this time on any of
our claims.  An investment in our common stock involves a high degree of risk. 
You should carefully consider the risks described below and the other
information in this prospectus before investing in our common stock.  If any of
the following risks occur, our business, operating results and financial
condition could be seriously harmed.
You cannot evaluate the investment merits of our Company because we
have no operating history.
We were
incorporated in May 2006, and we have not started our proposed business
operations or realized any revenues, which makes it difficult to evaluate the
investment merits of our Company.  We are a start-up company.  We have no
operating history and we do not have any business prior to our organization.  As
of February 29, 2008, we incurred total expenses of $70,888.
We may not be able to continue as a going concern if
we do not obtain additional financing.
Because of our
lack of sufficient funds and short operating history incurring only expenses,
and no revenues, our independent accountants' audit report states that there is
substantial doubt about our ability to continue as a going concern. Our
independent auditor in their audit report have stated that we incurred only
losses since our inception raising substantial doubt about our ability to
continue as a going concern.  Therefore, our ability to continue as a going
concern is highly dependent upon obtaining additional financing for our planned
operations.  As of the date hereof, all our cash has been raised from the
issuance of securities.
If we do not obtain additional financing, our
business will fail because we cannot fund our planned exploration program.
In order for
us to perform any exploration program, we will need to obtain additional
financing. As of February 29, 2008, we had cash in the amount of $132,303.  We
currently do not have any operations and we have no income. Our business plan
calls for incurring approximately $107,570 on an exploration program
incorporating grab and channel sampling followed by a helicopter-borne
geophysical survey, which would define the targets acquired during the
geophysical surveys and sampling campaign.  We have sufficient funds to meet our
general operating expenses and to meet our obligations under the Property Option
Agreement.  We do not have funds to conduct the exploration program.  If we
raised the funds and conducted the exploration programs, and if our exploration
programs are successful in discovering ore of commercial tonnage and grade, we
will require additional funds in order to place the Lourdeau Claims into
commercial production. We currently do not have any arrangements for financing
and we may not be able to obtain financing when required. Obtaining additional
financing would be subject to a number of factors, including the market price
for uranium, gold, silver, copper, base and precious metals and the cost of
exploring for these minerals. These factors may make the timing, amount, terms
or conditions of additional financing unavailable to us.
Because our
sole executive officer does not have formal training specific to the mining
industry, there is a higher risk our business will fail.
Mr. Richard
Pierce, our sole executive officer, does not have any formal training as a
geologist, or in the technical aspects of management of a company specializing
in mining and exploration for base and precious metals.  Mr. Pierce has no
business experience with exploration companies, his decisions and choices may
not take into account standard exploration or mining approaches commonly used in
the
8
industry.  As a result of this inexperience, there is a higher risk of our being
unable to complete our business plan for the exploration of our mineral claims. 
In addition, we will have to rely on the technical services of others with
expertise in geological exploration in order for us to carry our planned
exploration program.  If we are unable to contract for the services of such
individuals, it will make it difficult and maybe impossible to pursue our
business plan.  There is thus a higher risk of business failure.
Because our
sole executive officer has only agreed to provide his services on a part-time
basis, he may not be able or willing to devote a sufficient amount of time to
our business operations, causing our business to fail.
Our sole
executive officer is employed on a full time basis by other companies.  Because
we are in the early stages of our business, Mr. Pierce, our executive officer,
devotes approximately 10 hours per week to our affairs.  If the demands of our
business require the full business time of Mr. Pierce, he is prepared to adjust
his timetable to devote up to 15 hours a week.  However, Mr. Pierce may not be
able to devote sufficient time to the management of our business, as and when
needed. It is possible that the demands of Mr. Pierce's other business interests
will increase with the result that he would no longer be able to devote
sufficient time to the management of our business.  Competing demands on Mr.
Pierce's time may lead to a divergence between his interests and the interests
of other shareholders.
We are highly dependent on our senior management. The loss of our sole
executive officer could hinder our ability to pursue our stated plan of
operations and obtain debt or equity financing, if and when required.
We believe
that our continued success depends to a significant extent upon the efforts and
abilities of our senior management and in particular Richard Pierce, our sole
executive officer.  Mr. Pierce has been in management for over 20 years.  We
believe that the loss of Mr. Pierce's business and management experience could
hinder our ability to pursue our stated plan of operations and obtain debt or
equity financing, if and when required.
Because the
owner of the Lourdeau Property is Starfire, where our sole executive officer is
also a director, there may be conflicts of interest when our Company transacts
any business with Starfire.
There may be
conflict of interest situations whenever our Company conducts any business with
Starfire, the registered owner of the Lourdeau Property.  Richard Pierce, our
sole executive officer, is also a director of Starfire.  Shareholders of Santos
will be dependent upon our management exercising, in a manner fair to all of our
shareholders, his fiduciary duties as an officer or as a member of our board of
directors.  There is no way to prevent or control any business transactions
between Santos and Starfire relating to the Lourdeau Property that could have a
negative or unfavorable consequence for Santos.  There is a significant risk
that Santos may not receive fair treatment in any transaction connected to the
Lourdeau Property and as a result the shareholders of Santos will be adversely
affected.
We have no
known mineral resources and if we cannot find any mineral resources we may have
to cease operations.
We have no
measured mineral bodies.  If we do not find a mineral body or bodies containing
valuable minerals or metals or if we cannot conduct further exploration of any
minerals, either because we do not have money to do it or because it is not
economically feasible to do it, we may have to cease operations and you will
loose your investment.
Our sole asset is a Property Option Agreement and if we fail to make
the required payments on a timely basis, we will lose the right to acquire a 75%
interest in and to the Lourdeau Property.
Under the
Property Option Agreement we have a right and option to acquire a 75% interest
in and to the Lourdeau Claims by paying a total of $10,000 in cash; issuing
75,000 shares to Starfire Minerals Inc., the
9
registered owner of the Lourdeau Claims; and incurring at least a total of
$25,000 of expenditures on the property before September 30, 2008, and another
$25,000 of expenditures before July 25, 2009.  The failure of our Company to
make any cash payments and incurring the expenditures within the contractual
time limit will allow Starfire to terminate the Property Option Agreement.  If
the Property Option Agreement is terminated, we will lose all rights to the
Lourdeau Property, including any payments previously made to Starfire.  The
Property Option Agreement is our sole asset and if we lose the contractual
rights to acquire the Lourdeau Property, we will have no assets and you may lose
all your investment.
Title to the Lourdeau Claims is registered in the name of Starfire
Minerals Inc. and Starfire may transfer title to third parties without our
knowledge.
The Property
Option Agreement only gives us a right to acquire a 75% interest in and to the
Lourdeau Claims by fulfilling our obligations under the contract.  We cannot
prevent Starfire from transferring the Lourdeau Property to third parties.  A
third party has no way of knowing that we have rights to the Lourdeau Property
since ownership is registered in the name of Starfire with the government of
Quebec.  If the Lourdeau Property is transferred to third parties we may have to
litigate in order to determine our ownership rights.  There is no way of knowing
if Starfire will or has transferred the property to third parties.  Our only
protection is our contractual rights under the Property Option Agreement.
Weather interruptions in the province of Quebec may affect and delay
our proposed exploration operations and as a result, there may be delays in
generating revenues.
We may not
have access to the Lourdeau Property during the winter season due to snow in the
area and road closures.  Extreme weather can also occur in other seasons and
limit access to the Lourdeau Property.  The summers are very short (from early
June to late August).  As a result, any attempts to visit, test, or explore the
property may be limited to these few months of the year when weather permits
such activities.  These limitations can result in significant delays in
exploration efforts, as well as mining and production in the event that
commercial amounts of minerals are found.  Such delays can result in our
inability to meet deadlines for exploration expenditures required to be made in
order to retain title to our claims under provincial mineral property laws.
Since we are subject to compliance with government
regulation, which may change, the anticipated costs of our exploration program
may increase.
There are
several governmental regulations that materially restrict mineral exploration or
exploitation. We will be subject to the mining laws of Quebec as we carry out
our exploration programs.  Because we are a foreign company working on mining
claims in Quebec, we will need to register with the government of Quebec before
we work on the Lourdeau Claims.  We may be required to obtain work permits, post
bonds and perform remediation work for any physical disturbance to the land in
order to comply with these regulations. While our planned exploration program
budgets for regulatory compliance, there is a risk that new regulations could
increase our costs of doing business and prevent us from carrying out our
exploration program.
Risks associated with this Offering
Because we have nominal assets, we are considered a "shell company"
and will be subject to more stringent reporting requirements.
The Securities
and Exchange Commission ("SEC") adopted rules which defines (as defined by Rule
405 of the Securities Act and Exchange Act Rule 12b-2) a shell company as a
registrant that has no or nominal operations, and either (a) no or nominal
assets; (b) assets consisting solely of cash and cash equivalents; or (c) assets
consisting of any amount of cash and cash equivalents and nominal other assets. 
Our balance sheet states that we have cash as our only asset therefore, we are
defined as a shell company.  The rules prohibit shell companies from using a
Form S-8 to register securities pursuant
10
to
employee compensation plans.  However, the rules do not prevent us from
registering securities pursuant to registration statements.  Additionally, the
rules require shell companies to provide more detailed disclosure upon
completion of a transaction that causes it to cease being a shell company.  We
must file a current report on Form 8-K containing the information required
pursuant to Regulation S-K and in a registration statement on Form 10, within
four business days following completion of the transaction together with
financial information of the private operating company.  In order to assist the
SEC in the identification of shell companies, we are required to check a box on
Form 10-Q and Form 10-K indicating that we are a shell company.  To the extent
that we are required to comply with additional disclosure because we are a shell
company, we may be delayed in executing any mergers or acquiring other assets
that would cause us to cease being a shell company.  Effective February 15,
2008, the SEC amended Rule 144, which will make resales of restricted securities
by shareholders of a shell company more difficult. See discussion under heading
"New Rule 144" below.
Because our
directors control approximately 66% of our outstanding common stock, investors
may find that corporate decisions influenced by our directors are inconsistent
with the best interests of other stockholders.
Our three
directors and executive officer, Richard Pierce, Shih-Yi Chuang and Andrew Lee
Smith, control approximately 66% of our outstanding shares of common stock.  The
interests of our directors may not be, at all times, the same as that of other
shareholders.  Since our directors are not simply passive investors but are also
our directors and Mr. Pierce is our sole executive, their interests as
management may, at times, be adverse to those of passive investors. Where those
conflicts exist, our shareholders will be dependent upon our management
exercising, in a manner fair to all of our shareholders, his fiduciary duties as
an officer or as a member of our board of directors. Also, management will have
the ability to significantly influence the outcome of most corporate actions
requiring shareholder approval, including the merger of Santos with or into
another company, the sale of all or substantially all of our assets and
amendments to our articles of incorporation.  This concentration of ownership
with our directors may also have the effect of delaying, deferring or preventing
a change in control of Santos, which may be disadvantageous to minority
shareholders.
If the selling shareholders sell a large number of
shares all at once or in blocks, the market price of our shares would most
likely decline.
The selling
shareholders are offering 13,836,500 shares of our common stock through this
prospectus.  Our common stock is presently not traded or quoted on any market or
securities exchange, but should a market develop, shares sold at a price below
the current market price at which the common stock is quoted will cause that
market price to decline.  Moreover, the offer or sale of a large number of
shares at any price may cause the market price to fall.  The shares of common
stock covered by this prospectus represent 43.1% of the common shares
outstanding as of the date of this prospectus.
Because there is no public trading market for our
common stock, you may not be able to resell your shares.
Our Company
plans to have its shares quoted on the NASD OTC Bulletin Board.  There are no
assurances that we will be successful in listing our shares.  There is currently
no public trading market for our common stock.  Therefore there is no central
place, like a stock exchange or electronic trading system, to resell your
shares.  If you do want to resell your shares, you will have to locate a buyer
and negotiate your own sale.  Therefore, you may not be able to resell your
shares.
Re-sale restrictions for British Columbia residents
and other Canadian residents may limit the ability of our shareholders to sell
their securities.
Selling
shareholders, who are residents of British Columbia, have to rely on an
exemption from prospectus and registration requirements of B.C. securities laws
to sell their shares, which are being registered for resale by this prospectus. 
Selling shareholders have to comply with B.C. Securities Commission's BC
Instrument 72-502 "Trade In Securities of U.S. Registered Issuers" to resell
their
11
shares. 
BC Instrument 72-502 requires, among other conditions, that B.C. residents hold
the shares for four months and limit the volume of shares sold in a 12-month
period.  (See "Canadian Securities Law").  These restrictions will limit the
ability of the B.C. residents to resell the securities in the United States and
therefore, may materially affect the market value of your shares.  Residents of
other Canadian provinces have to rely on available prospectus exemptions to
re-sell their securities and if no exemptions can be relied upon, then the
shareholders may have to hold the securities for an indefinite period of time. 
Shareholders of other Canadian provinces should consult with independent legal
counsel to determine the availability and use of prospectus exemptions to
re-sell their securities.
Forward-Looking Statements
Some of the
statements under the "Prospectus Summary," "Risk Factors," "Plan of Operations,"
"Business" and elsewhere in this prospectus constitute forward-looking
statements. These statements involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of activity,
performance, or achievements to be materially different from any future results,
levels of activity, performance, or achievement expressed or implied by such
forward-looking statements. Such factors include, among other things, those
listed under "Risk Factors" and elsewhere in this prospectus.
In some cases,
you can identify forward-looking statements by terminology such as "may,"
"should," "could," "intend", "expects," "plan," "anticipates," "believes,"
"estimates," "predicts," "potential," or "continue" or the negative of such
terms or other comparable terminology.
Although we
believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance,
or achievements. Moreover, neither we nor any other person assumes
responsibility for the accuracy and completeness of such statements. We are
under no duty to update any of the forward-looking statements after the date of
this prospectus.
Use Of Proceeds
We will not receive any proceeds from the sale of common
shares offered in this prospectus by our selling shareholders.
Determination Of Offering Price
The $0.25 per
share offering price of our common shares by which our selling shareholders will
sell their shares prior to the quotation of the Company's shares on the NASD OTC
Bulletin Board ("OTCBB") was arbitrarily chosen based on our internal assessment
of what the market would support.  Our founding shareholders purchased
31,040,000 of our common shares at a price of $0.0005 per share on June 19, 2007.  The offering price of our shares is substantially higher than the price
paid by our founding shareholders, and exceeds the per share value of our net
tangible assets.  Therefore, if you purchase shares in this offering, you will
experience immediate and substantial dilution.
You may also
suffer additional dilution in the future from the sale of additional shares of
common stock or other securities, if the need for additional financing forces us
to make such sales.  Investors should be aware of the risk of judging the real
or potential future market value, if any, of our common stock by comparison to
the offering price.
There is no
established public market for the shares of common stock being registered.  As a
result, the offering price and other terms and conditions relative to the shares
of common stock offered hereby have been arbitrarily determined by us and do not
necessarily bear any relationship to assets, earnings, book value or any other
objective criteria of value. In addition, no investment banker, appraiser or
other independent, third party has been consulted concerning the offering price
for the shares or the fairness of the price used for the shares.
12
We
intend to apply to the OTCBB to allow the quotation of our common stock upon us
becoming a reporting entity under the Securities Exchange Act of 1934. We intend
to file a registration statement under the Exchange Act concurrently with the
effectiveness of the registration statement of which this prospectus forms a
part. If our common stock becomes so quoted and a market for the stock develops,
the actual price of stock will be determined by prevailing market prices at the
time of sale or by private transactions negotiated by the selling shareholders.
The offering price would thus be determined by market factors and the
independent decisions of the selling shareholders.
Dilution
The common
stock to be sold by the selling shareholders is common stock that is currently
issued and outstanding. Accordingly, there will be no dilution to our existing
shareholders.
Selling shareholders
The selling
shareholders named in this prospectus are offering 13,836,500 shares of common
stock acquired by the selling shareholders from us in offerings that were exempt
from registration under Regulation S of the Securities Act of 1933 ("Regulation
S").
1.         The selling shareholders,
nine founding shareholders, acquired 12,800,000 shares of our common
stock from us at a price of $0.0005 per share in an offering that was exempt
from registration under Regulation S and completed on June 19, 2007.
2.         The selling shareholder,
optionor of the Lordeau Property, acquired 75,000 shares of our common stock
from us at a deemed price of $0.15 per share in an offering that was exempt from
registration under Regulation S and completed on June 25, 2007.
3.         The selling shareholders,
32 private placees, acquired 961,500 shares of our common stock
from us at a price of $0.15 per share in an offering that was exempt from
registration under Regulation S and completed on February 1, 2008.
The term
"selling shareholders" includes donees, pledges, transferees or other
successors-in-interest selling shares received after the date of this prospectus
from a selling shareholder as a gift, pledge or other non-sale related transfer.
Based on
information provided to us by the selling shareholders, the following table
provides information as of July 9, 2008, regarding the number of shares of our
common stock held by each of the selling shareholders as of the date hereof,
including: (1) the total number of shares that are to be offered by each; (2)
the percentage owned by each prior to the offering; (3) the percentage owned by
each upon completion of the offering; and (4) the identity of the beneficial
holder of any entity that owns the shares.
Except as
disclosed in the table below, to the best knowledge of management of the
Company, the named party beneficially owns and has sole voting and investment
power over all shares or rights to these shares.  The numbers in this table
assume that none of the selling shareholders sells shares of common stock not
being offered in this prospectus or purchases additional shares of common stock,
and assumes that all shares offered are sold.
Except as
disclosed below, none of the selling shareholders
(i)         has had a material relationship with us or any of our affiliates
other than as a security holder at any time within the past three years; or
(ii)         has
ever been one of our officers or directors.
13
Except as disclosed in the
table below, none of our selling shareholders are broker-dealers or affiliates
of broker-dealers.
Name
			and Address of Selling Shareholders
Shares
			Beneficially Owned Prior to the Offering
Total
			Shares Offered by this Prospectus
(1)
Shares
			Beneficially Owned After the Offering
Number
Percent
Number
Percent
1
Robert Birarda
Vancouver, BC
1,155,000
(2)
3.6%
1,155,000
0
0%
2
Heather Birarda
West Vancouver, BC
15,000
(2)
0%
15,000
0
0%
3
James Borkowski
Vancouver, BC
15,000
(3)
0%
15,000
0
0%
4
Julian Borkowski
Surrey, BC
15,000
(3)
0%
15,000
0
0%
5
John David Brougham
Roberts Creek, BC
1,310,000
(4)
4.1%
160,000
0
0%
6
Caamano Sound Fishing
Vancouver, BC
20,000
0.1%
20,000
0
0%
7
Marc Casavant
Port Coquitlam, BC
20,000
0.1%
20,000
0
0%
8
Yung Hsuan Chou
Taipei, Taiwan
1,150,000
3.6%
1,150,000
0
0%
9
Shih-Yi Chuang
Chu-Chi Shiang Cha-Yi, Taiwan
7,022,000
(5)
21.9%
1,550,000
5,472,000
17.1%
10
Geoff Cribbs
Vancouver, BC
15,000
0%
15,000
0
0%
11
Jean Sui De Melt
North Vancouver, BC
20,000
0.1%
20,000
0
0%
12
Cale Dougans
Vancouver, BC
5,000
0%
5,000
0
0%
13
Craig Engelsman
Vancouver, BC
20,000
0.1%
20,000
0
0%
14
Paul Guedes
Vancouver, BC
20,000
0.1%
20,000
0
0%
15
Graham Heal
Vancouver, BC
20,000
0.1%
20,000
0
0%
16
Nick Houghton
Vancouver, BC
1,140,000
3.6%
1,140,000
0
0%
17
Holly Johnson
Port Coquitlam, BC
1,150,000
3.6%
1,150,000
0
0%
18
Judith G. King
Vancouver, BC
160,000
0.5%
160,000
0
0%
14
Name
			and Address of Selling Shareholders
Shares
			Beneficially Owned Prior to the Offering
Total
			Shares Offered by this Prospectus
(1)
Shares
			Beneficially Owned After the Offering
Number
Percent
Number
Percent
19
Mark Likness
Maple Ridge, BC
20,000
0.1%
20,000
0
0%
20
Rob Marwood
Langley, BC
20,000
0.1%
20,000
0
0%
21
Jane MacDonald
Vancouver, BC
15,000
0%
15,000
0
0%
22
Greg MacRae
Surrey, BC
20,000
0.1%
20,000
0
0%
23
Dan Moshor
Langley, BC
20,000
0.1%
20,000
0
0%
24
Walter Mustapich
Vancouver, BC
15,000
0%
15,000
0
0%
25
Pamela Estelle Nendick
Vancouver, BC
15,000
0%
15,000
0
0%
26
Brenton Nichols
Vancouver, BC
20,000
(6)
0.1%
20,000
0
0%
27
David Nichols
Vancouver, BC
20,000
(6)
0.1%
20,000
0
0%
28
Kazuhiro Okitsu
Vancouver, BC
15,000
0%
15,000
0
0%
29
Richard Bruce Pierce
Maple Ridge, BC
7,022,000
(7) (8)
21.9%
1,550,000
5,472,000
17.1%
30
RoseMarie Pierce
Gibsons, BC
1,310,000
(4)
(7)
4.1%
1,150,000
0
0%
31
Leslie Robertson
Vancouver, BC
6,500
0%
6,500
0
0%
32
Gwen Roland
Vancouver, BC
30,000
(9)
0.1 %
15,000
0
0%
33
Raymond W. Roland
Vancouver, BC
30,000
(9)
0.1%
15,000
0
0%
34
Andrew Shannon
Vancouver, BC
15,000
0%
15,000
0
0%
35
David W. Smalley
Vancouver, BC
3,104,000
(10)
9.7%
1,280,000
1,824,000
5.7%
36
Andrew Lee Smith
Vancouver, BC
7,182,000
(11)
22.4%
1,710,000
5,472,000
17.1%
37
John Carson Speers
Pitt Meadows, BC
1,140,000
3.6%
1,140,000
0
0%
15
Name
			and Address of Selling Shareholders
Shares
			Beneficially Owned Prior to the Offering
Total
			Shares Offered by this Prospectus
(1)
Shares
			Beneficially Owned After the Offering
Number
Percent
Number
Percent
38
Starfire Minerals Inc.
Vancouver, BC
75,000
(8)
0.2%
75,000
0
0%
39
Craig Taylor
Vancouver, BC
15,000
0%
15,000
0
0%
40
Douglas Tettman
Vancouver, BC
15,000
0%
15,000
0
0%
41
Nicholas F. Watters
Victoria, BC
20,000
0.1%
20,000
0
0%
Total
13,836,500
(1)     Shares offered by this Prospectus do not include shares deemed
beneficially held by the selling shareholders.
(2)     Robert Birarda is the son of Heather Birarda.  Robert Birarda has no
beneficial interest in the shareholding of Heather Birarda, neither does Heather
Birarda have a beneficial interest in the shareholding of Robert Birarda.
(3)     James Borkowski is the son of Julian Borkowski.  James Borkowski has no
beneficial interest in the shareholding of Julian Borkowski, neither does Julian
Borkowski have a beneficial interest in the shareholding of James Borkowski.
(4)     John David Brougham is the common-law husband of RoseMarie Pierce.  The
beneficial ownership of shares by John David Brougham and RoseMarie Pierce may
be attributable to the other party's respective holdings, and the number of
shares owned and percentage ownership of John David Brougham includes shares
owned by RoseMarie Pierce and vice versa.
(5)     Shih-Yi Chuang is a director of the Company.
(6)     Brenton Nichols is the brother of David Nichols.  Brenton Nichols has no
beneficial interest in the shareholding of David Nichols, neither does David
Nichols have a beneficial interest in the shareholding of Brenton Nichols.
(7)     Richard Pierce is a director and our President, Secretary and Treasurer,
sole executive officer.  Richard Pierce is the brother of RoseMarie Pierce. 
Richard Pierce has no beneficial interest in the shareholding of RoseMarie
Pierce, neither does RoseMarie Pierce have a beneficial interest in the
shareholding of Richard Pierce.
(8)     Richard Pierce is also a director of Starfire Minerals Inc.  Mr. Pierce
disclaims ownership over shares held by Starfire.
(9)     Gwen Roland is the wife of Raymond W. Roland.  The beneficial ownership
of shares by Gwen Roland and Raymond W. Roland may be attributable to the other
party's respective holdings, and the number of shares owned and percentage
ownership of Gwen Roland includes shares owned by Raymond W. Roland and vice
versa.
(10)   David W. Smalley is legal counsel to the Company.
(11)   Andrew Lee Smith is a director of the Company.
Plan Of Distribution
Summary
We have agreed
to register for public resale our common shares, which have been issued to the
selling shareholders.  This offering will terminate on the earlier of (i) the
date on which the shares may be resold by the selling stockholders without
registration and without regard to any volume limitations by reason of Rule 144
under the Securities Act or any other rule of similar effect or (ii) all of the
shares have been sold pursuant to this prospectus or Rule 144 under the
Securities Act or any other rule of similar effect. The selling shareholders
will receive all of the net proceeds from their sales.  Prior to having its
shares quoted on OTCBB, the selling shareholders may, from time to time, sell
all or a portion of the shares of common stock of our Company, which they own at
$0.25 per share.  After the shares of the Company are quoted for trading on the
OTCBB, the selling shareholders may sell their shares at the then market prices
on the OTCBB or privately negotiated prices, which may be less than or greater
than $0.25 per share.  Presently, the selling shareholders cannot sell their
common stock of our Company in accordance with new Rule 144 under the Securities
Act because we are defined as a "shell company".
16
The
selling shareholders may sell their shares of common stock of our Company
directly to purchasers or may use brokers, dealers, underwriters or agents to
sell such shares. Brokers or dealers may receive commissions, discounts or
concessions from a selling shareholder or, if any such broker or dealer acts as
agent for the purchaser of such shares, from a purchaser in amounts to be
negotiated. Such compensation may, but is not expected to, exceed that which is
customary for the types of transactions involved.
The selling
shareholders and any brokers, dealers or agents that participate with the
selling shareholders in sales of their shares of common stock of our Company may
be deemed to be "underwriters" within the meaning of the Securities Act of 1933
in connection with such sales. In such event, any commissions received by such
brokers, dealers or agents and any profit on the resale of such shares purchased
by them may be deemed to be underwriting commissions or discounts under the
Securities Act of 1933.
We are
required to pay all fees and expenses incident to the registration of our shares
of common stock offered hereby other than broker or dealer discounts and
commissions.
Selling shareholder's "Underwriter" Status; prospectus Delivery
Requirement
Shareholders
of the Company who resell their securities pursuant to this prospectus may be
deemed to be statutory "underwriters" (as defined in Securities Act of 1933
Section 2(11)) and "engaged in a public distribution".  Accordingly, Santos
intends to deliver a prospectus to each shareholder.  Each selling shareholder
should review it carefully and deliver it to any broker or dealer engaged to
sell stock or to any buyer in a direct sale. Selling shareholders and certain
brokers and dealers are required to deliver a prospectus 48 hours prior to
confirming sales.  Additional copies of the prospectus may be printed by
accessing it on the SEC website at
http://www.sec.gov, or it may be obtained by writing or calling Santos Resource Corp. at 11450 -
201A Street, Maple Ridge, British Columbia, Canada  V2X 0Y4, telephone (604)
460-8440.  See "Selling Shareholders" above for information as to the largest
shareholders, the amounts owned, and any relationships with Santos.
Suggested Selling Shareholder's Underwriting Compliance Procedures
Except as
indicated under "Selling Shareholders" none of the shareholders is known to
Santos to be a broker- dealer or affiliates of broker-dealers or to have any
experience in the distribution of securities or to have any material
relationships with Santos.  Santos is not aware of any intent by a shareholder
to engage in passive market making transactions as permitted by Rule 10b-6A
under the Securities Exchange Act of 1934 or in stabilization or other
transactions affecting the market price.  We are not aware of any intent by our
officers, directors or principal shareholders to purchase shares from selling
shareholders.
It is
suggested to selling shareholders that, to avoid technical violations of
underwriting regulations, they should observe the prospectus delivery
requirement described herein and also consult with their legal counsel.  These
suggestions do not constitute legal advice or any representation or warranty
that these are necessary or sufficient to comply with, or avoid enforcement
action (civil or criminal) for alleged violations of, any type of law.
Shareholders engaging in any direct or indirect transactions of any nature as to
any of Santos' securities do so at their own risk and expense.  All sales should
be conducted through brokers or dealers, who should be given a copy of the
prospectus and advised of the SEC and NASD position that such sales may be
deemed to be part of a "public distribution" by statutory "underwriters"
(selling shareholders). No purchases of shares or other transactions having the
purpose or effect of affecting the price should be engaged in by or on behalf of
shareholders before or after the sale.  Santos' public reporting status should
be brought to the brokers' or dealers' and buyers' attention.  Updated
information about Santos will be in its reports to the SEC at http://www.sec.gov. 
See "Available Information" near the end of the prospectus, for further details
on how to obtain copies of such reports.
Although
isolated resales often are exempt from state "blue sky" securities regulation
and registration requirements, and the reporting company status of an issuer
broadens the availability of resale exemptions, selling shareholders should be
cautious in view of their "underwriter" status in the eyes of the
17
SEC and
NASD.  They are urged to consult qualified local securities counsel.  Santos is
not undertaking, and it will be the selling shareholders' responsibility, to
file any necessary state exemption, qualification, or registration statements or
notices (such as Form U-1) and offering documents (such as this prospectus) if
needed for resales in a particular state.
The selling
shareholders may offer their shares of common stock at various times in one or
more of the following transactions:
in the over-the-counter market;
in private transactions other than in the over-the-counter market;
in connection with short sales of our shares;
by pledge to secure debts and other obligations; or
in a combination of any of the above transactions.
The selling
shareholders may sell their shares at market prices prevailing at the time of
the sale, at prices related to such prevailing market prices, at negotiated
prices or fixed prices.  Until the shares of the Company are quoted for trading
on the OTCBB, the selling shareholders will sell their shares at a price of
$0.25 per share.  After the shares of the Company are quoted for trading on the
OTCBB, the selling shareholders may sell their shares at the then market prices
on the OTCBB or privately negotiated prices, which may be less than or greater
than $0.25 per share.
The selling
shareholders may use brokers or dealers to sell their shares.  Sales through
brokers or dealers may involve one or more of the following:
block
	trades in which the broker or dealer so engaged will attempt to sell the
	selling shareholder's shares as agent but may position and resell a portion
	of the block as principal to facilitate the transaction;
purchases
	by a broker or dealer as principal and resale by such broker or dealer for
	its own account pursuant to this prospectus; or
ordinary
	brokerage transactions and transactions in which the broker solicits
	purchasers.
If a broker or
dealer is engaged by a selling shareholder, such broker or dealer may either
receive discounts or commissions from the selling shareholders, or they will
receive commissions from purchasers of shares for whom they acted as agents.
Affiliates of one or more of the selling shareholders may act as principals or
agents in connection with the offer or sale of shares by selling shareholders.
Selling
shareholders also may resell all or a portion of the shares in open market
transactions in reliance upon Rule 144 under the Securities Act of 1933, as
amended, provided that they meet the criteria and conform to the requirements of
that Rule.
Selling
shareholders have been advised that during the time each is engaged in
distribution of the securities covered by this prospectus, to the extent
applicable, each must comply with Regulation M under the Securities Exchange Act
of 1934, as amended, and pursuant to such Regulation:
shall not
	engage in any stabilization activity in connection with our securities;
shall
	furnish each broker through which securities covered by this prospectus may
	be offered the number of copies of this prospectus which are required by
	each broker; and
18
shall not bid for or purchase any of our
	securities or attempt to induce any person to purchase any of our securities
	other than as permitted under the Securities Exchange Act of 1934, as
	amended.
The selling
shareholders and any brokers, dealers or agents that participate with the
selling shareholder in sales of the shares may be deemed to be underwriters
within the meaning of the Securities Act in connection with such sales and
subject to any liabilities under such Act.  Any commissions received by such
brokers, dealers or agents and any profit on the resale of the shares purchased
by them may be deemed to be underwriting commissions or discounts under the
Securities Act.
Canadian Securities Law
Selling
shareholders who are resident of a province other than British Columbia will
have to rely on available prospectus exemptions to resell their securities.  If
they cannot rely on an available prospectus exemption, such non-British
Columbian Canadian residents may be subject to an indefinite hold period with
respect to their securities of Santos.  All Canadian shareholders should consult
independent legal counsel with respect to ascertaining any available prospectus
exemptions for reselling their securities of Santos.  Selling shareholders who
are residents of British Columbia may to rely on an exemption from prospectus
and registration requirements of B.C. securities laws to sell their shares,
which are being registered for resale by this prospectus.  The selling
shareholders may rely on the B.C. Securities Commission's Instrument 72-502
"Trade In Securities of U.S. Registered Issuers" to comply with B.C. securities
laws to resell their shares.
According to
BC Instrument 72-502, a B.C. resident who acquired securities under a prospectus
exemption in a company that is not a reporting issuer under the B.C. Securities
Act may sell those securities without filing a prospectus under the Act, if the
following conditions are met:
(1)        The securities of the company are registered under section 12 of the
U.S. Securities Exchange Act of 1934, as amended, or the company is required to
file reports under section 15(d) of that Act.
(2)        The seller's residential address or registered office is in British
Columbia.
(3)        A 4-month period has passed since the date the company issued the
securities to the seller, or a control person sold the securities to the seller.
(4)        If the seller is a control person of the company, then the seller has
held the securities for at least 6 months.
(5)        The number of securities the seller proposes to sell under BCI
72-502, plus the number of securities of the company of the same class that the
seller has sold in the preceding 12-month period, does not exceed 5% of the
company's outstanding securities of the same class.
(6)        The seller sells the securities through a registered investment
dealer.
(7)        The registered investment dealer executes the trade through an
exchange, or market, outside Canada.
(8)        There has been no unusual effort made to prepare the market or create
a demand for the securities.
(9)        The seller has not paid any extraordinary commission or other
consideration for the trade.
(10)       If the seller is an insider of the company, the seller reasonably
believes that the company is not in default of the securities legislation
(including U.S. federal and state securities legislation) that governs the
company.
19
Legal Proceedings
We are not
currently a party to, nor is any of our property currently the subject of, any
pending legal proceeding.  None of our directors, officers or affiliates is
involved in a proceeding adverse to our business or has a material interest
adverse to our business.
Our agent for
service of process is Business First Formations, Inc., of 3990 Warren Way, Reno,
Nevada  USA 89509.
Directors, Executive Officers, Promoters And Control
Persons
Executive Officers And Directors
The following
table sets forth the directors and executive officers of our Company, their
ages, term served and all officers and positions with our Company.  Pursuant to
our bylaws, our directors are elected at our annual meeting of stockholders and
each director holds office until his successor is elected and qualified. 
Officers are elected by our Board of Directors and hold office until an
officer's successor has been duly appointed and qualified unless an officer
sooner dies, resigns or is removed by the Board.
There are no
arrangements or understandings regarding the length of time a director of our
company is to serve in such a capacity.
Name
Age
Position
Richard Pierce
47
Director and President, Secretary and
		Treasurer
Shih-Yi Chuang
30
Director
Andrew Lee Smith
52
Director
Set forth
below is a brief description of the background and business experience of our
current executive officers and directors:
Richard
Pierce
has been a Director, President and Secretary-Treasurer of the Company
since September 13, 2006.  Mr. Pierce is also presently the President and CEO of
GFR Pharma Ltd. (since 1998), GFR Health Ltd. (since 1998) and Biologic
Nutritional Resources Inc. (since 2006).  GFR Pharma is a contract manufacturer
of Nutraceutical products, GFR Health distributes Nutraceutical products for the
human market, and Biologic distributes nutraceuticals for the pet (animal)
market.  Mr. Pierce was also President and CEO of GFR Pharmaceuticals Inc. (from
2000 to 2006), a Nevada company whose shares are quoted on the NASD OTC Bulletin
Board.  Mr. Pierce is also presently a director of Starfire Minerals Inc., a
British Columbia company whose shares are listed on the TSX Venture Exchange,
and the Berlin, Frankfurt and Struttgart Stock Exchanges in Germany.  Starfire
is also an exploration company with mineral properties and projects in Ontario
and British Columbia.  Mr. Pierce is one of five directors of Starfire, and in
the event of a conflict, Mr. Pierce will abstain from voting on a directors
resolution in both Santos and Starfire.
Shih-Yi
Chuang
has been a Director of the Company since June 26, 2007.  Mr. Chuang
has been working in the investment field as a wealth management advisor for
Cathay Life in Taiwan since 2001.  Mr. Chuang is currently an assistant manager
in the wealth management division and as one of the largest life insurance
companies in Asia, Mr. Chuang's experience includes working with some of Cathay
Life's largest clients advising them on insurance and equity investment
strategies.  Mr. Chuang is also heavily involved in training Cathay Life
advisors and giving speeches on investing for Cathay Life.
20
Mr.
Chuang holds a Masters Degree in Information Management in 2001 from Trans World
University in Tai-Nai, Taiwan.  Presently, Mr. Chuang is not on the board of any
public companies, although he has previously served as a director of public
companies.
Andrew Lee
Smith
, B.Sc., P.Geo., has been a Director of the Company since May 24,
2006.  Mr. Smith was
the President of the Company from May 24, 2006 to September 13, 2006.  Mr. Smith has over 20 years of experience in exploring, developing and
operating North American base and precious metal mining projects.  He is
presently the President of Iron Mask Exploration Ltd., a Vancouver-based
corporate and geological management firm that consults to the mining industry. 
Mr. Smith is also presently Chief Executive Officer and a director of Canaco
Resources Inc., and Chief Executive Officer, President and a director of True
North Gems, both companies listed on the TSX Venture Exchange.  Mr. Smith is
also a director of Daytona Energy Corp. and Cincoro Capital Corp., companies
listed on the TSX Venture Exchange; and a director of Candente Resource Corp., a
company listed on the Toronto Stock Exchange.
Mr. Smith
holds a Hons. BSc in Earth Sciences from the University of Waterloo and is a
professional geologist. He has been a registered member of the Association of
Professional Engineers and Geoscientists of British Columbia since January
2001.  Prior to this date, he was a Fellow of the Geological Association of
Canada and the Society of Economic Geologists.
We intend to
rely on Mr. Smith to provide the expertise in geological exploration in order
for us to carry our planned exploration program.  If we do retain the services
of Mr. Smith, we will compensate Mr. Smith at the public going rate.  However,
Mr. Smith may not be able to devote sufficient time to our exploration program,
as and when needed.  We may need to rely on the technical services of others
with expertise in geological exploration in order for us to carry our planned
exploration program.  We have not contracted with any geologist to assist with
the exploration programs.  At the right time, we will hire from the available
pool of contract geologists depending on the time of the year and availability
of experience.  Presently, there are no other agreements or understandings to
hire such geologists or engineers.
During our
early stages of business development, our President intends to devote
approximately 10 hours per week of his time to our business.  If, however, the
demands of our business require more business time, such as raising additional
capital or addressing unforeseen issues with regard to our plan of operations,
he is prepared to adjust his timetable to devote up to 15 hours a week on our
business in furtherance of our plan of operations.  However, Mr. Pierce may not
be able to devote sufficient time to the management of our business, as and when
needed.
Executive Compensation
Presently, we
do not pay our directors or officers any salary or consulting fees.  Our
directors and executive officer do not currently receive and have never received
any compensation for serving as a director or executive officer of the Company. 
In addition, at present, there are no ongoing plans or arrangements for
compensation of any of our officers.  Presently, there are no plans or
agreements for compensation of our officers and directors even if certain
milestones are achieved in the business plan.  However, we expect to adopt a
plan of reasonable compensation to our officers and employees when and if we
become operational and profitable.
The following
table sets forth all compensation awarded to, earned by, or paid for services
rendered to us in all capacities during the period ended February 29, 2008, by
Mr. Richard Pierce, our sole executive officer, and our directors.
21
Summary Compensation Table
Compensation - February 29, 2008
($) Number of shares Underlying
Name and Principal Position
Salary
($) Bonus
Options (#)
Richard Pierce
President, Secretary and Treasurer
None
None
None
Director Compensation Table
Name
Fees
			Earned or Paid in Cash
($)
Stock
			Awards or Options
(#)
All
			other Compensation All other Compensation
($)
Richard Pierce
None
None
None
Shih-Yi Chuang
None
None
None
Andrew Lee Smith
None
None
None
We do not
presently have a stock option plan but intend to develop an incentive based
stock option plan for our officers and directors in the future and may reserve
up to 20% of our outstanding shares of common stock for that purpose.
Significant Personnel
We have no
significant personnel other than our officers and directors.  We presently rely
on consultants and other third party contractors to perform administrative and
geological services for the Company.  We have no formal contracts with any of
these consultants and contractors.
Committees of the Board of Directors
The functions
of the audit committee are currently carried out by our Board of Directors.  We
do not have an audit committee or financial expert on our Board carrying out the
duties of the audit committee.  Our Board has determined that we do not need
such an expert because we are a start-up exploration company and have no
revenue.  The cost of hiring a financial expert to act as a director of Santos
and to be a member of the audit committee or otherwise perform audit committee
functions outweighs the benefits of having a financial expert on the audit
committee.  We do not have a compensation committee, nominating committee, an
executive committee of our board of directors, stock plan committee or any other
committees.
Code of
Ethics
We have
adopted a code of ethics that applies to our Chief Executive Officer, Chief
Financial Officer, Principal Executive Officer, Principal Financial Officer,
Principal Accounting Officer, Controller and persons performing similar
functions within the Company.  A copy of the code of ethics is filed with the
SEC as an exhibit to this registration statement and a copy may also be obtained
without charge by contacting the Secretary of the Company at 11450 - 201A
Street, Maple Ridge, British Columbia, Canada  V2X 0Y4.
Involvement in certain legal proceedings
None of our
directors, executive officers, promoters or control persons has been involved in
any of the following events during the past five years:
22
any bankruptcy petition
	filed by or against any business of which such person was a general partner
	or executive officer either at the time of the bankruptcy or within two
	years prior to that time;
any conviction in a
	criminal proceeding or being subject to a pending criminal proceeding
	(excluding traffic violations and other minor offences);
being subject to any
	order, judgment, or decree, not subsequently reversed, suspended or vacated,
	of any court of competent jurisdiction, permanently or temporarily
	enjoining, barring, suspending or otherwise limiting his involvement in any
	type of business, securities or banking activities; or
found by a court of
	competent jurisdiction (in a civil action), the Commission or the Commodity
	Futures Trading Commission to have violated a federal or state securities or
	commodities law, and the judgment has not been reversed, suspended, or
	vacated.
Security Ownership Of Certain Beneficial Owners And
Management
The following
table sets forth certain information as of July 9, 2008, with respect to the
beneficial ownership of our company's common stock with respect to each named
director and executive officer of our Company, each person known to our Company
to be the beneficial owner of more than five percent (5%) of said securities,
and all directors and executive officers of our Company as a group.  Unless
otherwise indicated, the address for each listed person is c/o Santos Resource
Corp., 11450 - 201A Street, Maple Ridge, British Columbia  V2X 0Y4.
Name and Address
Title
			of Class
Amount
			and Nature of Beneficial Ownership
Percentage
of Class
(1)
Richard Pierce
President, Secretary & Treasurer and Director
Common
7,022,000
21.9%
Shih-Yi Chuang
Director
Common
7,022,000
21.9%
Andrew Lee Smith
Director
Common
7,182,000
22.4%
David W. Smalley
Vancouver, BC
Common
3,104,000
9.7%
All officers & directors as a group (3
		persons)
Common
21,226,000
66.2%
(1)   The percentage
of class is based on 32,076,500 shares of common stock outstanding as of the
date hereof.
The persons
named above have full voting and investment power with respect to the shares
indicated. Under the rules of the Securities and Exchange Commission, a person
(or group of persons) is deemed to be a "beneficial owner" of a security if he
or she, directly or indirectly, has or shares the power to vote or to direct the
voting of such security, or the power to dispose of or to direct the disposition
of such security. Accordingly, more than one person may be deemed to be a
beneficial owner of the same security. A person is also deemed to be a
beneficial owner of any security, which that person has the right to acquire
within 60 days, such as options or warrants to purchase our common stock.
Description of Capital Stock
The shares
registered pursuant to this registration statement are shares of common stock,
all of the same class and entitled to the same rights and privileges as all
other shares of common stock.
23
Common Stock
Santos is
presently authorized to issue 75,000,000 shares of common stock, with a par
value of $0.001 per share.  As of the date hereof, there were 32,076,500 shares
of our common stock issued and outstanding, held by 41 stockholders of record.
Our common
stock is entitled to one vote per share on all matters submitted to a vote of
the stockholders, including the election of directors. Except as otherwise
required by law or provided in any resolution adopted by our board of directors
with respect to any series of preferred stock, the holders of our common stock
will possess all voting power. Generally, all matters to be voted on by
stockholders must be approved by a majority (or, in the case of election of
directors, by a plurality) of the votes entitled to be cast by all shares of our
common stock that are present in person or represented by proxy, subject to any
voting rights granted to holders of any preferred stock. Holders of our common
stock representing ten-percent (10%) of our capital stock issued, outstanding
and entitled to vote, represented in person or by proxy, are necessary to
constitute a quorum at any meeting of our stockholders. A vote by the holders of
a majority of our outstanding shares is required to effectuate certain
fundamental corporate changes such as liquidation, merger or an amendment to our
Articles of Incorporation. Our Articles of Incorporation do not provide for
cumulative voting in the election of directors.
Subject to any
preferential rights of any outstanding series of preferred stock created by our
board of directors from time to time, the holders of shares of our common stock
will be entitled to such cash dividends as may be declared from time to time by
our board of directors from funds available therefore. See "Dividend Policy."
Subject to any
preferential rights of any outstanding series of preferred stock created from
time to time by our board of directors, upon liquidation, dissolution or winding
up of Santos, the holders of shares of our common stock will be entitled to
receive pro rata all assets of Santos available for distribution to such
holders.
In the event
of any merger or consolidation of our company with or into another company in
connection with which shares of our common stock are converted into or
exchangeable for shares of stock, other securities or property (including cash),
all holders of our common stock will be entitled to receive the same kind and
amount of shares of stock and other securities and property (including cash).
Holders of our
common stock have no pre-emptive rights, no conversion rights and there are no
redemption provisions applicable to our common stock.
Preferred
Stock
As of the date
hereof, Santos has no preferred stock authorized or issued.
Dividend Policy
We have never
declared or paid any cash dividends on our common stock. We currently intend to
retain future earnings, if any, to finance the expansion of our business. As a
result, we do not anticipate paying any cash dividends in the foreseeable
future.
Share
Purchase Warrants
We have not
issued and do not have outstanding any warrants to purchase shares of our common
stock.
Options
We have not
issued and do not have outstanding any options to purchase shares of our common
stock.
24
Convertible Securities
We have not
issued and do not have outstanding any securities convertible into shares of our
common stock or any rights convertible or exchangeable into shares of our common
stock.
Nevada Anti-Takeover laws
Nevada revised
statutes sections 78.378 to 78.3793 provide state regulation over the
acquisition of a controlling interest in certain Nevada corporations unless the
articles of incorporation or bylaws of the corporation provide that the
provisions of these sections do not apply.  Our articles of incorporation state
that these provisions do not apply.
Combinations with Interested Stockholders
Nevada revised
statues sections 78.411 to 78.444 provide state regulations over combination
with the interested stockholder or any corporation, which is, or after the
merger or consolidation, would be, an affiliate or associate of the interested
stockholder, unless the articles of incorporation or bylaws of the corporation
provide that the provisions of those sections do not apply.  Our articles of
incorporation state that these provisions do not apply.
Interests of Named Experts and Counsel
David W.
Smalley is counsel for Santos, owns 3,104,000 shares of common stock of Santos
and is named as a Selling Shareholder in this prospectus.  Mr. Smalley is also a
partner of Fraser and Company LLP, a law firm that has provided an opinion on
the validity of our common stock offered by the Selling Shareholders.
Except as
described above, no experts or counsel named in this prospectus as having
prepared or certified any part of this prospectus or having given an opinion
upon the validity of the securities being registered or upon other legal matters
in connection with the registration or offering of the common stock was employed
on a contingency basis, or had, or is to receive, in connection with the
offering, a substantial interest exceeding $50,000, direct or indirect, in
Santos.  Nor was any such person connected with Santos as a promoter, managing
or principal underwriter, voting trustee, director, officer, or employee.
Legal Matters
Fraser and
Company LLP has provided an opinion on the validity of our common stock offered
by the Selling Shareholders.
Experts
MacKay LLP,
Chartered Accountants ("MacKay"), our independent registered public accounting
firm, has audited our financial statements included in this prospectus and
registration statement to the extent and for the period set forth in their audit
report. MacKay has presented their report with respect to our audited financial
statements.  The report of MacKay is included in reliance upon their authority
as experts in accounting and auditing.
Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
There have not
been any changes in or disagreements with our accountants on accounting and
financial disclosure or any other matter.
25
Market For Common Equity and Related Stockholder
Matters
No Public
Market for Common Stock
There is
presently no public market for our common stock.  We anticipate making an
application for trading of our common stock on the OTCBB upon the effectiveness
of the registration statement of which this prospectus forms a part.  We are
qualifying for resale up to 13,836,500 common shares pursuant to this
registration statement.  However, we can provide no assurance that our shares
will be traded on the bulletin board or, if traded, that a public market will
materialize.
New Rule
144
Santos is
presently a "shell company" as defined under Rule 405 of the Securities Act and
Rule 12b-2 of the Exchange Act.  Effective February 15, 2008, the SEC amended
Rule 144 of the Securities Act of 1933, which do not allow shareholders to rely
on Rule 144 for the resale of securities of a shell company.  Shareholders may
only rely on new Rule 144 if Santos ceases to be a shell company and only if all
of the following conditions are met:  the issuer has ceased to be a shell
company; the issuer is subject to the reporting requirements of the Exchange
Act; the issuer has filed all Exchange Act reports required for the past 12
months; and at least one year has elapsed from the time that the issuer filed
current Form 10 information on Form 8-K changing its status to a non-shell
company.
If Santos is
defined as not a "shell company", a total of 18,240,000 shares of our restricted
common stock will be available for resale to the public, in accordance with the
volume and trading limitations of new Rule 144.  Also pursuant to the amended
provisions of Rule 144, following the six-month holding period but before one
year after their acquisition of the securities, a person who is not an affiliate
and has not been an affiliate for at least three months prior to the sale, will
be able to make unlimited public resales under Rule 144 except that the current
public information requirement will still apply.  After the one-year holding
period, such non-affiliates may make unlimited public resales under Rule 144 and
need not comply with any other Rule 144 requirements.
If Santos is
not a "shell company", then under the new Rule 144, a person who has
beneficially owned shares for at least six months is entitled to sell, within
any three-month period, a number of shares that does not exceed the greater of
(1) one percent of the then outstanding shares of common stock, which in our
case is 320,765 shares as of the date of this prospectus; or (2) the average
weekly trading volume in the common stock in the over-the-counter market during
the four calendar weeks preceding the date on which notice of the sale is filed,
provided several requirements concerning availability of public information,
manner of sale and notice of sale are satisfied.
The one year
and six month holding periods described above do not begin to run until the full
purchase price or other consideration is paid by the person acquiring the shares
from the issuer or an affiliate.
However, we are a "shell company" and
shareholders holding restricted stock cannot rely on Rule 144 to resell their
restricted shares.
Penny Stock
Regulation
Our shares
will have to comply with the Penny Stock Reform Act of 1990, which may
potentially decrease your ability to easily transfer our shares. Broker-dealer
practices in connection with transactions in "penny stocks" are regulated. Penny
stocks generally are equity securities with a price of less than $5.00. The
penny stock rules require a broker-dealer, prior to a transaction in a penny
stock not otherwise exempt from the rules, to deliver a standardized risk
disclosure document that provides information about penny stocks and the risks
in the penny stock market. The broker-dealer also must provide the customer with
current bid and offer quotations for the penny stock, the compensation of the
broker-dealer and its salesperson in the transaction, and monthly account
statements showing the market value of each penny stock held in the customer's
account. In addition, the penny stock rules generally require that prior to a
transaction in a penny stock, the broker-dealer make a special written
determination that the penny stock
26
is a
suitable investment for the purchaser and receive the purchaser's written
agreement to the transaction. These disclosure requirements may have the effect
of reducing the level of trading activity in the secondary market for a stock
that has to comply with the penny stock rules. As our shares immediately
following this offering will likely have to comply with such penny stock rules,
investors in this offering will in all likelihood find it more difficult to sell
their securities.
Holders
There are 41
shareholders of record for the common shares.
Dividends
No dividends
have been declared on the common shares as of the date hereof.
Disclosures
of Commission Position on Indemnification for Securities Act Liabilities
Insofar as
indemnification for liabilities arising under the Securities Act may be
permitted to directors, officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable.
In the event
that a claim for indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.
Transactions with Related Persons
On June 19,
2007, we issued 24,170,000 shares of our common stock to Richard Pierce,
Shih-Yi Chuang and Andrew Lee Smith, our directors and officers, at $0.0005 per
share and an aggregate proceeds of $12,085.  Also on June 19, 2007, we
issued 1,150,000 shares of common stock $0.0005 per share to RoseMarie Pierce,
sister of our sole officer and a director Richard Pierce.
On June 25,
2007, we entered into a Property Option Agreement with Starfire Minerals Inc.
that allows us to acquire a 75% interest in and to the Lourdeau Claims. 
Pursuant to the Property Option Agreement we paid Starfire $10,582 (CAD$10,000)
and issued 75,000 shares of common stock to Starfire.  Under the Property Option
Agreement we are obligated to incur $50,000 of expenditures on Lourdeau Property
or pay Starfire 50% in cash and 50% in shares.  One of the directors of Starfire
is Richard Pierce, our President, Secretary-Treasurer and a director.  The
75,000 shares have a deemed value of $11,250.
On July 16,
2007, we entered into a services retainer agreement with Fraser and Company LLP,
to provide legal services to Santos.  David Smalley, a partner of Fraser and
Company LLP, owns 3,104,000 shares of common stock of Santos.  Pursuant to the
agreement, Fraser and Company LLP will provide legal services in connection with
the organization and set up of Santos and the preparation and filing of a
registration statement with the SEC for a fee of approximately $50,000
(CAD$50,000).  An initial payment of $30,000 (CAD$30,000) is payable on filing
of the initial registration statement, and the balance of $20,000 (CAD$20,000)
is payable upon the registration statement being declared effective by the SEC.
On February 1,
2008, we issued 160,000 shares of common stock at $0.15 per share, to Andrew Lee
Smith, a director of Santos.
27
We have
no formal written employment agreement or other contracts with our officers, and
there is no assurance that the services to be provided by them, and facilities
to be provided by Mr. Pierce, will be available for any specific length of time
in the future.  Mr. Pierce anticipates initially devoting up to approximately 10
hours a week of his business time to the affairs of our Company. If and when the
business operations of our company increase and a more extensive time commitment
is needed, Mr. Pierce is prepared to devote up to 15 hours a week in the event
that becomes necessary. The amounts of compensation and other terms of any full
time employment arrangements with our Company would be determined if and when
such arrangements become necessary.
Business
History and Organization
Santos was
incorporated under the laws of the state of Nevada on May 24, 2006.  We have not
commenced business operations and we are considered an exploration stage
company.  We are defined as a "shell company" under the Rule 405 of the
Securities Act and Rule 12b-2 of the Exchange Act because we have nominal
operations and nominal assets. To date, our activities have been limited to
organizational matters, obtaining a geological report on the Lourdeau Claims and
the preparation and filing of the registration statement of which this
prospectus is a part.  In connection with the organization of our Company, the
founding shareholders of our Company contributed an aggregate of $15,520 cash in
exchange for a total of 31,040,000 shares of common stock.  In January 2008, we
raised another $144,225 from 32 BC resident placees by issuing 961,500 shares of
common stock.
Property Option Agreement
Under the
Property Option Agreement entered into in June 2007, we acquired an option to
acquire a 75% interest in and to 18 mineral claims called the Lourdeau Claims
from Starfire Minerals Inc., the registered owner of the Lourdeau Claims.  The
Lourdeau Claims consist of 18 mineral claims covering approximately 900.75
hectares (9.01km
2
), located in the La Grande geological area of
Quebec in the James Bay Territory about 620 miles (1,000 km) north of Montreal,
Quebec.  The following table sets forth the details of the claims.
Title No.
Surface Area in Ha
Titleholder
Expiry Date
CDC87500*
50,03
Starfire Minerals Inc.
2009/07/18
CDC87501*
50.03
Starfire Minerals Inc.
2009/07/18
CDC87502*
50.03
Starfire Minerals Inc.
2009/07/18
CDC87503*
50.03
Starfire Minerals Inc.
2009/07/18
CDC87504*
50.03
Starfire Minerals Inc.
2009/07/18
CDC87505*
50.04
Starfire Minerals Inc.
2009/07/18
CDC87506*
50.04
Starfire Minerals Inc.
2009/07/18
CDC87507*
50.04
Starfire Minerals Inc.
2009/07/18
CDC87508*
50.04
Starfire Minerals Inc.
2009/07/18
CDC87509*
50.04
Starfire Minerals Inc.
2009/07/18
CDC87510*
50.05
Starfire Minerals Inc.
2009/07/18
CDC87511*
50.05
Starfire Minerals Inc.
2009/07/18
CDC87512*
50.05
Starfire Minerals Inc.
2009/07/18
CDC87513*
50.05
Starfire Minerals Inc.
2009/07/18
CDC87514*
50.05
Starfire Minerals Inc.
2009/07/18
CDC87515*
50.05
Starfire Minerals Inc.
2009/07/18
CDC87516*
50.05
Starfire Minerals Inc.
2009/07/18
CDC87517
51.05
Starfire Minerals Inc.
2009/07/18
*Decree no. 241-86
Under the
Property Option Agreement, Starfire Minerals Inc. has a 3% Net Smelter Return ("NSR")
royalty interest in the Lourdeau Claims, if and when Santos exercises its option
to acquire a 75% interest in the Lourdeau Claims by making the required cash and
share payments.  NSR means the actual
28
proceeds
received from the sale of ore, metals or concentrated products from the Lourdeau
Property derived from commercial production as recorded by the producer and net
of any smelting and refining charges, penalties, costs of transportation of
ores, metals or concentrates from the Lourdeau Property to any mint, smelter or
other purchaser, cost of insurance of the products, and any export and import
taxes levied with respect to production from the Lourdeau Property.
Santos also
has the right to purchase up to two-thirds of the NSR royalty (i.e. 2% of the
NSR royalty) on the basis of $100,000 for each 0.1% of the NSR royalty (i.e.
$100,000 per 0.1% NSR royalty) acquired on the first one-half of the NSR
royalty, and $150,000 for each 0.1% of the NSR royalty (i.e. $150,000 per 0.1%
NSR royalty) thereafter for the remaining NSR royalty (i.e. the remaining 1% NSR
royalty).  To exercise its option to purchase the NSR royalty or any portion
thereof, Santos must provide Starfire with at least 30 days advance written
notice of its intention to do so, and must close upon each purchase within 60
days of each notice.
Under the
Property Option Agreement, Santos is required to make all filings related to the
Lourdeau Property and to maintain the Lourdeau Claims in good standing by
preparing and filing the assessment reports, paying taxes and keeping the
Lourdeau Property free and clear of all liens and encumbrances. 
As of the date hereof, all required filings have been
made to maintain the 18 mineral claims in good standing until July 18, 2009.
In order to
exercise the Option and to earn its 75% interest in the Property, Santos has to
pay Starfire $10,582 (CAD$10,000) in cash payment and issue 75,000 shares to
Starfire, and incur an aggregate of $50,000 (CAD$50,000) in expenditures before
September 30, 2009, within the following time schedule:
(a)        pay $10,582 (CAD$10,000) upon signing of the Property Option
Agreement (paid);
(b)        issue and deliver 75,000 shares within 10 business days of the date
of approval of the Property Option Agreement by the board of directors of Santos
(issued);
(c)        incur $25,000 (CAD$25,000) of expenditures on the Lourdeau Property
on or before September 30, 2008; and
(d)        incur $25,000 (CAD$25,000) of expenditures on the Lourdeau Property
between July 25, 2008 to July 25, 2009.
Any shares
delivered, cash payments made, or expenditures incurred toward the option price
that is over and above that required to be made .  During a particular time
shall be carried forward and applied against the required payment in subsequent
periods.
If Santos does
not incur the full amount of expenditures within the set time period, Santos
may, within 45 days after the end of the period, pay Starfire the outstanding
balance to be incurred for that specific year by way of 50% cash and 50%
shares.  After these payments, the option from Starfire remains in good standing
and Santos will be deemed to have acquire 75% of the Lourdeau Claims from
Starfire.
Specifically,
we anticipate spending the following over the next 12 months:
$22,000
	for operating expenses and $58,800 for payment of offering expenses related
	to this Registration Statement; and
$107,570
	(CAD$107,570) in connection with the completion of our recommended
	geological work program.
We expect our
total expenditures for the next 12 months to be in the range of $105,800 (if we
pay Starfire the required expenditures by way of 50% cash and 50% shares) to
$190,000 (if we carry out the exploration program).
29
In the
event Santos earns a 75% interest in the Lourdeau Property, Starfire and Santos
agree to negotiate in good faith the terms and conditions of entering into a
joint venture agreement to carry out further exploration and mining activities
on the Lourdeau Property, with the intention that all costs and profits will be
split proportionately the by the parties according to their ownership of the
property.
Technical Report on Properties
Mr. Michel
Boily, Ph.D., P. Geo. was hired by Santos to provide a Technical Report in July
2007 on the Lourdeau Claims.  Mr. Boily has been continuously practicing in his
profession as a geologist since 1988, and is a specialist of granitoid-hosted
precious and rare metal deposits in Quebec.  He graduated from the University of
Montreal (1988) in Quebec, Canada, with a PhD in geology.  He is a registered
Professional Geologist in good standing with l'Ordre des Geologues du Quebec
(permit no. 1097).  Mr. Boily does not have any interest in the Lourdeau
Property or the Company.
Mr. Boily does not have any interest in the Lourdeau
Property or the Company.  The report is based on published and private reports,
maps and data provided by the Company and in the public domain.  Mr. Boily's
report details the geological and exploration history of the Lourdeau Property,
including the land status, climate, geology and mineralization.  Based upon
previous exploration activity in the area, Mr. Boily recommends the Company
conduct a specific exploration program on the Lourdeau Property.  The
purpose of this report was to evaluate the area of the claim group, and the
prior exploration work conducted on the claims, and to recommend an exploration
program.
Recommended Exploration Program
Mr. Boily
recommends a systemic surface sampling program of the Lourdeau Vein site and its
vicinity, and the northern edge of the Lourdeau Hill, incorporating grab and
channel sampling, in order to get a solid geochemical assay database.  Mr. Boily
recommends obtaining a helicopter-borne geophysical survey to cover the rest of
the Lourdeau Property.  Mr. Boily recommends the geophysical magnetic and
radiometric surveys to be done on a 100 m spaced grid.  This program is
estimated to cost approximately $107,570.
Depending on
the results of this program, the next phase could involve a drilling campaign
which would define the targets acquired during the geophysical surveys and
sampling campaign.  The focus of the drilling will be the uranium-mineralized
sandstones at the Lourdeau Hill, with the gold, copper and silver-mineralized
metavolcanic constituting secondary targets.
Geological Exploration Program
Our mineral
claims presently do not have any mineral reserves.  There is no mining plant or
equipment located on the property.
We have not
yet commenced physical exploration of the Lourdeau Claims.  Our exploration
program is exploratory in nature and there is no assurance that mineral reserves
will be found.
The
exploration program proposed by the Company's independent consultant is designed
to determine whether mineralization exists to the extent that further
exploration is recommended to outline any such mineralized zones.  It is
uncertain at this time the precise quantity of minerals in the property that
would justify actual mining operations.  If we decide to abandon our mineral
claim at any stage of our exploration program, we intend to acquire other
properties and conduct similar exploration programs. The other properties may be
located in the same mining district or we may in the future explore properties
located in other jurisdictions, which may include other provinces in Canada, or
in the United States.  Currently, the Company does not have any other properties
or any intentions of acquiring any other properties.
We plan to
conduct a systemic surface sampling program of the Lourdeau Vein site and its
vicinity, and the northern edge of the Lourdeau Hill, incorporating grab and
channel sampling, in order to get a solid
30
geochemical assay database.  Mr. Boily recommends obtaining a helicopter-borne
geophysical survey to cover the rest of the Lourdeau Property.  Mr. Boily
recommends the geophysical magnetic and radiometric surveys to be done on a 100
m spaced grid.
Depending on
the results of this program, the next phase could involve a drilling campaign
which would define the targets acquired during the geophysical surveys and
sampling campaign.  The focus of the drilling will be the uranium-mineralized
sandstones at the Lourdeau Hill, with the gold, copper and silver-mineralized
metavolcanic constituting secondary targets.
We presently
have funds to meet our general operating expenses and to meet our obligations
under the Property Option Agreement.  We do not have the funds to conduct the
recommended exploration program.  If we are able to raise additional money, we
plan to conduct the exploration program on the Lourdeau Property in the summer
of 2008.  Due to extreme weather conditions, exploration activities can only be
conducted between June and August of each year.
The
recommended exploration program costs approximately $107,570 and consists of the
following:
Geophysical Survey
Spectrometry, Gradiomag (Helimager)
		and VLF
$200 x 120 km (line spacing: 100 m)
$24,000
Mobilization/demobilization
$15,000
Channel
		and Grab Sampling
Analyses: 150 samples @ $50/sample
$7,500
Supervision: geologist/ 2
		technicians for 5 days @ $925/day
$4,625
Transport and Lodging
Transport Montreal-Radisson .
$1,000
Lodging and food for 3 people x
		5days
$3,750
Rentals (truck, ATV, saws, etc.)
$5,000
Helicopter
3 hours/day x 5 days x $1,250/day
$18,750
Fuel: 3 hours/day x 5 days x 160
		liters x $2/liters
$4,800
Mineralogy: SEM Analyses
5 samples x $500/sample
$2,500
Subtotal
$86,925
Contingency (10%)
$8,693
Total
		before taxes
$95,618
GST (5%)
$4,781
QST (7.5%)
$7,171
Grand
		Total
$107,570
We have not
hired any personnel to perform the geological work on the Lourdeau Property. 
Any geologist that we hire in the future will be responsible for selecting the
appropriate personnel and incurring all worker-related costs, which we will
reimburse for such services.
The
sections below describing the property are excerpts from a technical report
dated August 2007 prepared by Mr. Boily, our consulting geologist.  Mr. Boily
has not visited the site and no visual inspection has been performed.  Mr.
Boily's recommendations are based solely on his
31
interpretation of published reports.  No drilling was conducted for
the benefit of his technical report.
Location,
Accessibility, Climate, Local Resources Infrastructure and Physiography
The Lourdeau
Property is located in the La Grande geological area of Quebec in the James Bay
Territory about 1,000 km north of Montreal.  The property lies on the eastern
shore of the La Grande 3 Reservoir (LG-3) roughly 2.6 km ENE from a major
Hydro-Quebec levee.  The property consists of 18 continuous map designed claim
units (or cells) in the NTS 32G/12 sheet for a total surface of 900.75 hectares
or 9.01 km2.
The nearest
village, Radisson (with a population of 400) is located roughly 165 km west of
the property.  Several services, including lodging, food, gas, hospital, car and
truck rental and a regional airport can be obtained within this modern village. 
To reach the Lourdeau Property, travel from Radisson by road 52 km south on
James Bay Road, 90 km west on Trans Taiga Road, and either take a helicopter
from the LG-3 airport to the property or take a boat from a major Hydro Quebec
levee.
Alternatively,
from the town of Matagami travel 568 km north on James Bay Road, and 90 km west
on Trans Taiga Road, and either take a helicopter from the LG-3 airport to the
property or take a boat from a major Hydro Quebec levee.
The James Bay
area is characterized by a continental climate.  Summers are very short (from
early June to late August) but temperate with average maximum of 60
o
F
(20.0
o
C) and minimum of 45
o
F (7.4
o
C) in July. 
Winter is harsh and starts in September and lasts until May, with extensive snow
precipitations (294 inches or 267 cm) from October to May.  Average temperatures
during winter months reach -19.3
o
F (-28.5
o
C) (minimum) and
-.9
o
F (-18.3
o
C) (maximum) in January.  The topography is
typical of the Canadian Shield.  The physiography of the region is rough and
undulating, glaciation producing a rolling morainal plain with numerous small
shallow lakes.  The vegetation, adapted to the harsh climate, typifies the Taiga
forest where the trees are sparse and small. The dominant species are black
spruce and jack pine, but larch, birch and aspen are also present.  The ground
is covered by pale green lichen commonly called reindeer moss that is highly
inflammable during the dry season.
History of the Property
The property
has been unexplored since the late 1970's.  In the 1960's and 1970's, the
Ministere des Richesses naturelles et de la Faune du Quebec (MRNFQ), conducted a
systematic mapping campaign covering the regions of the La Grande River
hydrographic system before the LG-2 and LG-3 reservoirs were progressively
filled in the late 1970's.
In 1973, the
Societe de Developpement de la Baie James (SDBJ) undertook a regional
geochemical survey of lake bottom sediments that covered the entire James Bay
area.  Lasting over 5 years, the survey was carried out with a sample density of
1 sample per 9 km2.  Geoterrex completed a regional airborne radiometric survey
in the James Bay area.  The results of the survey are published in aeromagnetic
maps pointing out the anomalous sectors (GM 34130).  Other general unpublished
airborne and ground-based mag survey were completed by Canico, the SDBJ.
In 1974-1975,
SES-SDBJ recognized a regional N140
o
-oriented fault along the La
Grande River which was associated in some places with radiometric values greater
than 1,000 cps. A follow-up prospection by helicopter identified an anomalous
radiometric zone in argillaceous sediments north of the Lourdeau Hill. Later
that year, geologists discovered a boulder train of Sakami Fm sandstones resting
at the northern base of the hill. The boulder contained yellow and green
impregnations in fractures later identified as autunite, malachite and
chalcocite. A clearing of the hill summit later allowed the recognition of a
network of N125
o
E oriented fractures through a lenticular layer of
sericitic siltstone. The uranium mineralization was associated to this layer,
whilst the copper impregnated the surrounding sandstone. This discovery sparked
a systematic exploration campaign by the SES-SDBJ throughout 1976 and 1977.
32
The
campaign included ground prospection along grids, ground-based radiometric, mag
and VLF surveys, rock and soil sampling and ultimately percussion and core
drilling.
A series 79
percussion and core drill holes totaling 2.89 miles (4.66 km) were conducted on
the Lourdeau Hill on the different targets delimited from the previous
exploration work.  A close examination of the drill sections reveals the
mineralization to be largely confined to a filled zone associated with the main
N125
o
E-oriented fractures. Out of the 25 percussion drill holes
conducted on the Lourdeau Vein site, 12 showed interesting values, one showed an
isolated radioactive peak.
Conclusions and Recommendations
The Lourdeau
Property, unexplored since the late 1970's, holds a potential for high-grade
uranium mineralization in Proterozoic silicilastic sediments and in gold, copper
and silver in the basement metavolcanic rocks surrounding the sedimentary
rocks.  Unconformity associated uranium deposits are generally high grade.
The Lourdeau
Property, notably the uranium, copper and silver unconformity showing associated
to Mid-Proterozoic siliciclastic sediments, represents one of the prime targets
of exploration in the James Bay Territory of Quebec.  The main uranium showing,
the Lourdeau Vein, holds a significant potential for a high grade uranium
mineralization.  Short percussion drill holes exploring the fracture zone were
carried by the SES-SDBJ in the late 1970's and produced interesting uranium
values extrapolated from radiometric downhole measurement.  We will benefit from
the present survey techniques that were not available in the 1970's.
Mr. Boily
recommends a systemic surface sampling program of the Lourdeau Vein site and its
vicinity, and the northern edge of the Lourdeau Hill, incorporating grab and
channel sampling, in order to get a solid geochemical assay database.  Mr. Boily
recommends obtaining a helicopter-borne geophysical survey to cover the rest of
the Lourdeau Property.  Mr. Boily recommends the geophysical magnetic and
radiometric surveys to be done on a 100 m spaced grid.
Depending on
the results of this program, the next phase could involve a drilling campaign
which would define the targets acquired during the geophysical surveys and
sampling campaign.  The focus of the drilling will be the uranium-mineralized
sandstones at the Lourdeau Hill, with the gold, copper and silver-mineralized
metavolcanic constituting secondary targets.
Geological and Technical Staff
We have not
contracted with any geologist to assist with the exploration programs.  At the
right time, we will hire from the available pool of contract geologists
depending on the time of the year and availability of experience.  Presently,
there are no other agreements or understandings to hire such geologists or
engineers.
Competitive Factors
The mineral
industry is fragmented. We compete with other exploration companies looking for
a variety of mineral resources. We are a very small exploration company compared
to many of our competitors.  Although we will be competing with other
exploration companies, there is no competition for the exploration of minerals
on our mineral claim.  We intend to explore and find sufficient mineralization
to a point in which major mining companies or mining financial groups would
seriously consider pursuing the mineral claim as a valuable and significant
acquisition.
33
Location Challenges
We do not
expect any major challenges in accessing the property during the initial
exploration stages.  However, due to the seasonal winter conditions of the area,
we can only access the property between June and August of each year.
Regulations
We will be
required to comply with all regulations, rules and directives of governmental
authorities and agencies applicable to the exploration of minerals in Canada
generally, and in Quebec specifically.
The key
government agency in charge of mining in Quebec, Canada is the Ministry of
Natural Resources, or ministere des Ressources naturelles. The Ministry of
Natural Resources administers three laws relevant to the mining industry in
Quebec: (i) The Mining Act (Loi sur les mines); (ii) The Mining Duties Act (Loi
concernant les droits sur les mines); and (iii) SOQUEM Act (Loi sur la societe
quebecoise d'exploration miniere).
The Quebec
Mining Act allows a mineral explorer to claim a portion of available
governmental lands for the exclusive ownership of the mining rights area.
Pursuant to the Quebec Mining Act, a foreign company working on mining claims in
the Province of Quebec must register with the provincial government of Quebec. 
We are not registered with the government of Quebec, and we will need to
register with the government of Quebec before we work on the Lourdeau Claims.
We currently
have no costs to comply with environmental laws concerning our exploration
program. A permit is required to penetrate the forested areas with the
obligation to store along access zones cut lumber of potential commercial value.
We do not expect to be required to obtain additional governmental authorizations
or to undertake studies of environmental impact and project approval unless and
until we discover commercially viable quantities of mineral deposits. Under the
Quebec Mining Act, should we discover mineral deposits and desire to commence
mining operations, we will be required to file a mining site rehabilitation plan
with the Natural Resources Ministry. This rehabilitation plan discusses how the
operator intends to rehabilitate the property following its intended use of the
property and includes an estimate of the costs involved in the rehabilitation.
We may also be required to obtain permits and distribution rights-of-way from
the Natural Resources Ministry for the construction of the access roads and
power lines.
Other laws are
indirectly relevant to our business, including the Quebec Environmental Quality
Act and the Canadian Environmental Assessment Act. These acts are administered
by separate provincial and federal governmental agencies that have the separate
authority to approve or require changes to a company's impact assessment.
Notwithstanding this separate authority, these federal and provincial
governmental agencies generally attempt to coordinate their review and approval
procedures.
The Quebec
Environment Quality Act, includes standards related to protection of the soil,
water, and air quality. Article 22 of the Environmental Quality Act requires
that any proponent who wants to build or modify the environment in any way
obtain a certificate of approval from the Quebec Environment Ministry. Directive
19, established under the Environmental Quality Act, sets criteria for
environmental impact studies to accompany applications for certificates of
approval under the Act, and also sets standards on the ways different types of
mines should operate.
We are
prepared to engage professionals, if necessary, to ensure regulatory compliance,
but in the near term we expect our activities to require minimal regulatory
oversight. If we expand the scope of our activities in the future, it is
reasonable to expect expenditures on compliance to rise.
34
Environmental Factors
We will also
have to sustain the cost of reclamation and environmental remediation for all
work undertaken which causes sufficient surface disturbance to necessitate
reclamation work.  Both reclamation and environmental remediation refer to
putting disturbed ground back as close to its original state as possible.  Other
potential pollution or damage must be cleaned-up and renewed along standard
guidelines outlined in the usual permits.  Reclamation is the process of
bringing the land back to a natural state after completion of exploration
activities.  Environmental remediation refers to the physical activity of taking
steps to remediate, or remedy, any environmental damage caused, i.e. refilling
trenches after sampling or cleaning up fuel spills.  Our initial programs do not
require any reclamation or remediation other than minor clean up and removal of
supplies because of minimal disturbance to the ground.  The amount of these
costs is not known at this time as we do not know the extent of the exploration
program we will undertake, beyond completion of the recommended three phases
described above.  Because there is presently no information on the size, tenor,
or quality of any resource or reserve at this time, it is impossible to assess
the impact of any capital expenditures on our earnings or competitive position
in the event a potentially economic deposit is discovered.
Employees
Initially, we
intend to use the services of contractors and consultants for exploration work
on our properties. At present, we have no paid employees.  We believe keeping a
low number of full-time employees will conserve cash and allow greater
flexibility in the future.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
The following
presentation of management's discussion and analysis of Santos should be read in
conjunction with the financial statements and other financial information
included herein.
Overview
Santos was
incorporated under the laws of the state of Nevada on May 24, 2006.  We have not
commenced business operations and we are considered an exploration stage
company.  We are defined as a "shell company" under the Rule 405 of the
Securities Act and Rule 12b-2 of the Exchange Act because we have nominal
operations and nominal assets.  To date, our activities have been limited to
organizational matters, obtaining a geological report on the Lourdeau Claims and
the preparation and filing of a registration statement on Form S-1.
Plan of Operations
Our business
plan is to proceed with the exploration of the Lourdeau Claims to determine
whether there are commercially exploitable reserves of base and precious
metals.  We presently have funds to meet our general operating expenses and to
meet our obligations under the Property Option Agreement.  We do not have the
funds to conduct the recommended exploration program.  If we are able to raise
additional money, we plan to conduct the exploration program recommended by Mr.
Michel Boily, PhD, P.Geo, in the summer of 2008.  We anticipate the recommended
program will cost approximately $107,570.
We have not
hired any personnel to perform the geological work on the Lourdeau Property. 
Any geologist that we hire in the future will be responsible for selecting the
appropriate personnel and incurring all worker-related costs, which we will
reimburse for such services.
During this
exploration stage, Mr. Richard Pierce, our president, will only be devoting
approximately 10 hours per week of his time to our business. We do not foresee
this limited involvement as negatively impacting our company over the next 12
months as an outside consultant is performing all exploratory work.  If,
however, the demands of our business require more time of Mr. Pierce, such as
raising additional capital or addressing unforeseen issues with regard to our
exploration efforts, he is prepared to
35
adjust
his timetable to devote more time to our business, up to 15 hours.  Mr. Pierce
is also the principal of GFR Pharma Ltd., GFR Health Ltd. and Biologic
Nutritional Resources Inc., and he may not be able to devote the necessary time
to the affairs of our business because of competing demands from his other
companies.
In the event
that we require additional funding, we anticipate that such funding will be in
the form of equity financing from the sale of our common stock.  We will not be
using this prospectus in any subsequent unregistered offering and we will comply
with applicable integration rules as set forth in Rule 502(a) of Regulation D. 
However, we cannot provide investors with any assurance that we will be able to
raise sufficient funding from the sale of our common stock to fund additional
phases of the exploration program should we decide to proceed. We believe that
debt financing will not be an alternative for funding any further phases in our
exploration program. The risky nature of this enterprise and lack of tangible
assets places debt financing beyond the credit-worthiness required by most banks
or typical investors of corporate debt until such time as an economically viable
mine can be demonstrated. We do not have any arrangements in place for any
future equity financing.
Risk Factors
An investment
in our common stock involves a number of very significant risks.  Prospective
investors should refer to all the risk factors described under "Risk Factors"
commencing on page 8.
Financial
Condition
As at February
29, 2008, Santos had a cash balance of $132,303.  Management does not anticipate
generating any revenue for the foreseeable future.  When additional funds become
required, the additional funding will come from equity financing from the sale
of Santos' common stock.  If Santos is successful in completing an equity
financing, existing shareholders will experience dilution of their interest in
Santos.  Santos does not have any financing arranged and Santos cannot provide
investors with any assurance that Santos will be able to raise sufficient
funding from the sale of its common stock.  In the absence of such financing,
Santos' business will fail.
Based on the
nature of Santos' business, management anticipates incurring operating losses in
the foreseeable future.  Management bases this expectation, in part, on the fact
that very few mineral claims in the exploration stage ultimately develop into
producing, profitable mines.  Santos' future financial results are also
uncertain due to a number of factors, some of which are outside its control. 
These factors include, but are not limited to:
Santos' ability to raise additional funding;
the market price for minerals; and
the results of Santos' proposed exploration programs on its exploration
	mineral properties.
Due to Santos'
lack of operating history and present inability to generate revenues, Santos'
auditors have stated their opinion that there currently exists a substantial
doubt about Santos' ability to continue as a going concern.  This means that
there is substantial double whether Santos can continue as an on going business
for the next 12 months unless we obtain additional capital to pay our bills.  We
presently do not have the funds to conduct the recommended exploration program. 
Further, even if Santos completes its current exploration program, we will
require additional funds in order to place the Lourdeau Claims into commercial
production.
36
Liquidity
Santos'
internal sources of liquidity will be loans that may be available to Santos from
management.  Although Santos has no written arrangements with any of directors
and officers, Santos expects that the directors and officers will provide Santos
with internal sources of liquidity, if it is required.
Also, Santos'
external sources of liquidity will be private placements for equity conducted
outside the United States.  Since inception on May 24, 2006 to February 29,
2008, Santos did not complete any definitive arrangements for any external
sources of liquidity.
Capital
Resources
As of February
29, 2008, Santos had total assets of $132,623 and total liabilities of $21,564
for a net working capital of $111,059.
There are no
assurances that Santos will be able to achieve further sales of its common stock
or any other form of additional financing.  If Santos is unable to achieve the
financing necessary to continue its plan of operations, then Santos will not be
able to continue its exploration programs and its business will fail.
Management
estimates that Santos' current cash will be sufficient to fully finance its
operations at current and planned levels through February 2009.  Management
intends to manage Santos' expenses and payments to preserve cash until Santos is
profitable, otherwise additional financing must be arranged.  Specifically, such
cash management actions include donation of office space and services by Santos'
sole executive officer.
Results of Operations
We did not
earn any revenues from inception on May 24, 2006 to February 29, 2008.  We do
not anticipate earning revenues until such time as we have entered into
commercial production of our mineral properties. We are presently in the
exploration stage of our business and we can provide no assurance that we will
discover commercially exploitable levels of mineral resources on our properties,
or if such resources are discovered, that we will enter into commercial
production of our mineral properties.
We incurred
operating expenses in the amount of $70,888 from inception on May 24, 2006 to
February 29, 2008.  These operating expenses comprised mainly of mineral
property costs of $31,580 and accounting and legal expenses of $38,682.  We
incurred a loss in the amount of $70,888 from inception on May 24, 2006 to
February 29, 2008.
Off-balance Sheet Arrangements
Santos has no
off-balance sheet arrangements including arrangements that would affect its
liquidity, capital resources, market risk support and credit risk support or
other benefits.
Available Information
We are filing
a registration statement on Form S-1 with the United States Securities and
Exchange Commission, under the Securities Act of 1933, covering the securities
in this offering.  As permitted by rules and regulations of the Commission, this
prospectus does not contain all of the information in the registration
statement.  For further information regarding both Santos Resource Corp. and the
securities in this offering, we refer you to the registration statement,
including all exhibits and schedules.  As of the effective date of this
prospectus, we will have to comply with the information requirements of the
Securities Exchange Act of 1934. Upon effectiveness of the Form S-1 registration
statement, we will be required to file reports with the SEC under section 15(d)
of the Securities Act.  The reports we will be required to file are Forms 10-K,
10-Q and 8-K. These materials will be available for inspection and
37
copying
at the public reference facilities maintained by the Commission at Room 100 F
Street, NE Washington, DC 20549.  Copies of the material may be obtained from
the public reference section, at prescribed rates.  Please call the Commission
at 1-800-SEC-0330.  The Commission maintains an Internet Web site located at
http://www.sec.gov that contains reports, proxy and information statements and
other information regarding issuers that file reports electronically with the
Commission. The site is accessible by the public through any Internet access
service provider.  Our registration statement and the referenced exhibits can
also be found on this site.
38
SANTOS RESOURCE CORP.
INDEX
TO FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm
41
Balance Sheets
42
Statements of Operations
43
Statement of Stockholders' Equity
44
Statements of Cash Flows
45
Notes to Financial Statements
46
39
Santos Resource Corp.
(An Exploration Stage Company)
Financial Statements
February 29, 2008
(Presented In US Dollars)
40
CHARTERED
ACCOUNTANTS
MacKay LLP
1100 -
		1177 West Hastings Street
Vancouver, BC V6E 4T5
Tel: 604-687-4511
Fax: 604-687-5805
Toll Free: 1-800-351-0426
www.MacKayLLP.ca
Report of
Independent Registered Public Accounting Firm
To the Directors of
Santos Resource Corp.
(an Exploration Stage Enterprise)
Vancouver, Canada
We have
audited the balance sheets of Santos Resource Corp. (an Exploration Stage
Enterprise) as at February 29, 2008 and 2007 and the statement of operations and
deficit, stockholders' equity, and cash flows for the year ended February 29,
2008 and the periods from incorporation on May 24, 2006 to February 28, 2007 and
February 29, 2008.  These financial statements are the responsibility of the
Company's management.  Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted
our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States).  Those standards require that we plan and
perform an audit to obtain reasonable assurance whether the financial statements
are free of material misstatements.  The Company has determined that it is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting.  Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's internal control over financial
reporting.  Accordingly, we express no such opinion.  An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation.  We believe that our audits provide a
reasonable basis for our opinion.
In our
opinion, these financial statements present fairly, in all material respects,
the financial position of the Company as at February 29, 2008 and 2007 and the
results of its operations and its cash flows for the year ended February 29,
2008 and the periods from incorporation on May 24, 2006 to February 28, 2007 and
February 29, 2008 in conformity with U.S. generally accepted accounting
principles.
The
accompanying financial statements referred to above have been prepared assuming
that the Company will continue as a going concern.  As discussed in Note 1 to
financial statements, the Company is in the exploration stage, and has no
permanently established source of revenue and is dependent on its ability to
raise capital from shareholders or other sources to sustain operations.  These
factors, along with other matters as set forth in Note 1, raise substantial
doubt that the Company will be able to continue as a going concern.  The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.
Vancouver, Canada
May 7, 2008
"MacKay LLP"
Chartered Accountants
41
Santos Resource Corp.
(an Exploration stage company)
Balance Sheets
At February 29, 2008
(Expressed in US Dollars)
29-Feb-08
28-Feb-07
Assets
Current Assets
Cash
$
132,303
$
-
GST
			Receivable
320
-
Total Assets
$
132,623
$
-
Liabilities and Stockholders
			Equity
Current Liabilities
Accrued
			Payables
$
11,712
$
-
Payable
			to Shareholders Note 3(b)
9,852
-
Total Current Liabilities
21,564
-
Stockholders' Equity
Common
			Stock (Note 5) 75,000,000 shares authorized,
$0.001 par value
32,076,500 (2007 - nil) shares issued
32,077
-
Additional paid in capital
149,871
-
Subscriptions receivable
-
-
Deficit
			accumulated during the exploration stage
(70,888)
-
Total Stockholders' Equity
111,059
-
Total Liabilities and
			Stockholders' Equity
$
132,623
$
-
On Behalf of the Board:
/s/ Richard Pierce
Director
/s/ Andrew Lee Smith
Director
The accompanying notes are an integral part of these financial statements
42
Santos Resource Corp.
(an Exploration stage company)
Statements of Operations
(Expressed in US Dollars)
Year Ended
February 29,
2008
Period from
Incorporation
May 24, 2006 to
February 28,
2007
Cumulative to
February 29,
2008
Expenses
General and administrative
$
627
$
-
$
627
Mineral Property Costs
31,580
-
31,580
Professional Fees
38,682
-
38,682
Total Expenses
70,888
-
70,888
Net loss and comprehensive loss
$
(70,888)
$
-
$
(70,888)
Net loss per share
Basic and diluted
$
(0.00)
$
-
Weighted average number of
			shares
outstanding - basic and diluted
21,813,036
N/A
The accompanying notes are an integral part of these financial statements
43
Santos Resource Corp.
(an Exploration stage company)
Statement of Stockholders' Equity
At February 29, 2008
(Expressed in US Dollars)
Common
Stock
Additional
Paid-in
Deficit
Accumulated
During the
Exploration
Total
Shareholders'
Number
Par Value
Capital
Stage
Equity
Balance, May 24, 2006
(date of inception)
-
$         -
$         -
$         -
$         -
Net loss for the period ending
February 28, 2007
-
-
-
-
-
Balance, February 28, 2007
-
-
-
-
-
Capital Stock issued for
			subscriptions
receivable at $0.0005 per share and services
at $0.0005 per share
19-Jun-07
31,040,000
31,040
(15,520)
-
15,520
Mineral Property Option
- Starfire Minerals
25-Jun07
75,000
75
11,175
-
11,250
Private Placement at $0.15 per
			share
1-Feb-08
961,500
962
143,264
-
144,225
Private Placement Fees
1-Feb-08
-
-
(4,568)
-
(4,568)
Net loss for the year ending
February 29, 2008
-
-
15,520
(70,888)
(55,368)
Balance, February 29, 2008
32,076,500
$   32,077
$   149,871
$  (70,888)
$  111,059
The accompanying notes are an integral part of these financial statements
44
Santos Resource Corp.
(an Exploration stage company)
Statements of Cash Flows
(Expressed in US Dollars)
Year Ended
February 29,
2008
Period from
Incorporation
May 24, 2006 to
February 28,
2007
Cumulative to
February 29,
2008
Cash flows used in Operating
		Activities
Net loss for the period
$
(70,888)
$
-
$
(70,888)
Adjustments to net loss for
		non-cash activities
Shares issued for property
		acquisition
11,250
-
11,250
Services provided by founders
		in exchange
for shares
15,520
-
15,520
Decrease (Increase) in GST
		Receivable
(320)
-
(320)
Increase (Decrease) in accrued
		payables
11,712
-
11,712
Net cash used in operating
		activities
(32,726)
-
(32,726)
Cash flows from investing
		activities
-
-
-
Cash flows from financing
		activities
Capital Stock issued
159,745
-
159,745
Private Placement Fees
(4,568)
-
(4,568)
Advances from shareholders
9,852
-
9,852
Net cash flows from financing
		activities
165,030
-
165,030
Cash increase (decrease) during the
		period
132,303
-
132,303
Cash beginning of the period
-
-
-
Cash end of the period
$
132,303
$
-
$
132,303
Interest paid in the period
$
-
$
-
$
-
Income taxes paid in the period
$
-
$
-
$
-
The accompanying notes are an integral part of these financial statements
45
Santos Resource Corp.
(an exploration stage company)
Notes to the Financial Statements
For the year ending February 29, 2008
(Expressed in U.S. dollars)
1)         Nature of
Operations and Continuance of Business
Santos Resource Corp. (the
"Company") was incorporated in the state of Nevada on May 24, 2006.  The Company
is an Exploration Stage Company.  The Company's principal business is the
acquisition and exploration of mineral properties.  The Company has not
presently determined whether its properties contain mineral reserves that are
economically recoverable.
The accompanying financial
statements have been prepared on a going concern basis, which implies the
Company will continue to realize its assets and discharge its liabilities in the
normal course of business. The Company has never generated revenues since
inception and has never paid any dividends and is unlikely to pay dividends or
generate earnings in the immediate or foreseeable future. The continuation of
the Company as a going concern is dependent upon the continued financial support
from its shareholders, the ability of the Company to obtain necessary equity
financing to continue operations, confirmation of the Company's interests in the
underlying properties, and the attainment of profitable operations. As at
February 29, 2008, the Company has never generated any revenues and has an
accumulated loss of $70,888, since inception. 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.
2)          Summary of
Significant Accounting Policies
a)         Basis of
Presentation
These financial statements and
related notes are presented in accordance with accounting principles generally
accepted in the United States, and are expressed in U.S. dollars. The Company's
fiscal year-end is February 28 (29 in leap years).
b)         Use of Estimates
The preparation of financial
statements in conformity with U.S. generally accepted accounting principles
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. Actual results could differ
from those estimates.
46
Santos Resource Corp.
(an exploration stage company)
Notes to the Financial Statements
For the year ending February 29, 2008
(Expressed in U.S. dollars)
2.         Summary of
Significant Accounting Policies (continued)
c)         Basic and Diluted
Net Income (Loss) Per Share
The Company computes net income
(loss) per share in accordance with SFAS No. 128, "
Earnings per Share
".
SFAS No. 128 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 would be 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. There were no
dilutive instruments outstanding at February 29, 2008.
d)         Comprehensive Loss
SFAS No. 130, "
Reporting
Comprehensive Income
," establishes standards for the reporting and display
of comprehensive loss and its components in the financial statements. As at
February 29, 2008, the Company has no items that represent a comprehensive loss
and, therefore, has not included a schedule of comprehensive loss in the
financial statements.
e)         Cash and Cash
Equivalents
The Company considers all highly
liquid instruments with maturity of three months or less at the time of issuance
to be cash equivalents.
f)          Mineral Property
Costs
The Company has been in the
exploration stage since its inception on May 24, 2006 and has not yet realized
any revenues from its planned operations. It is primarily engaged in the
acquisition and exploration of mining properties. Mineral property exploration
costs are expensed as incurred. Mineral property acquisition costs are initially
capitalized when incurred using the guidance in EITF 04-02, "
Whether Mineral
Rights Are Tangible or Intangible Assets
". The Company assesses the carrying
costs for impairment under SFAS No. 144, "
Accounting for Impairment or
Disposal of Long Lived Assets
" at each fiscal quarter end. When it has been
determined that a mineral property can be economically developed as a result of
establishing proven and probable reserves, the costs then incurred to develop
such property, are capitalized. Such costs will be amortized using the
units-of-production method over the estimated life of the probable reserve. If
mineral properties are subsequently abandoned or impaired, any capitalized costs
will be charged to operations.
g)         Long-lived Assets
In accordance with SFAS No. 144,
"
Accounting for the Impairment or Disposal of Long-Lived Assets
", the
carrying value of long-lived assets is reviewed on a regular basis for the
existence of facts or circumstances that may suggest impairment. The Company
recognizes impairment when the sum of the expected undiscounted future cash
flows is less than the carrying amount of the asset. Impairment losses, if any,
are measured as the excess of the carrying amount of the asset over its
estimated fair value.
47
Santos Resource Corp.
(an exploration stage company)
Notes to the Financial Statements
For the year ending February 29, 2008
(Expressed in U.S. dollars)
2.            Summary of
Significant Accounting Policies (continued)
h)         Financial
Instruments
The fair values of financial
instruments, which include cash and accounts payable and accrued liabilities,
were estimated to approximate their carrying values due to the immediate or
short-term maturity of these financial instruments. The Company's mineral
property is in Quebec and its administrative operation is in Canada, which
results in exposure to market risks from changes in foreign currency rates. The
financial risk is the risk to the Company's operations that arise from
fluctuations in foreign exchange rates and the degree of volatility of these
rates. Currently, the Company does not use derivative instruments to reduce its
exposure to foreign currency risk.
i)          Income Taxes
Potential benefits of income tax
losses are not recognized in the accounts until realization is more likely than
not. The Company has adopted SFAS No. 109 "
Accounting for Income Taxes
"
and Interpretation No. 48 "Accounting for Uncertainty in Income Taxes - an
Interpretation of FASB Statement No,. 109" ("FIN No. 48") as of its inception.
Pursuant to this guidance the Company is required to compute tax asset benefits
for net operating losses carried forward. The potential benefits of net
operating losses have not been recognized in these financial statements because
the Company cannot be assured it is more likely than not it will utilize the net
operating losses carried forward in future years.  FIN 48 prescribes a
recognition and measurement model for uncertain tax positions taken or expected
to be taken in the Company's tax returns. FIN 48 provides guidance on
recognition, classification, presentation, and disclosure of unrecognized tax
benefits.
j)          Foreign Currency
Translation
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 SFAS No. 52
"
Foreign Currency Translation
", using the exchange rate prevailing at the
balance sheet date. Non-monetary assets are translated at historical exchange
rates, and revenue and expense items at the average rate of exchange prevailing
during the period. Gains and losses arising on 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.
k)         Recent Accounting
Pronouncements
The Financial Accounting
Standards Board has issued SFAS No. 155 "Accounting for Certain Hybrid Financial
Instruments - an amendment of FASB Statements No. 133 and 140" and No. 156
"Accounting for Servicing of Financial Assets - an amendment of FASB Statement
No. 140", but they are not expected to have a material effect in the Company's
results of operations or financial position.
In September 2006, the FASB
issued SFAS 157, Fair Value Measurements, which defines fair value, establishes
a framework for measuring fair value, and expands fair value disclosures. The
standard does not require any new fair value measurements. This standard is
effective for fiscal years beginning after November 15, 2007. The adoption of
this new announcement is not expected to have a material effect on the Company's
financial position or results of operations.
48
Santos Resource Corp.
(an exploration stage company)
Notes to the Financial Statements
For the year ending February 29, 2008
(Expressed in U.S. dollars)
2.         Summary of
Significant Accounting Policies (continued)
k)         Recent Accounting
Pronouncements (continued)
In February, 2007, the FASB
issued Statement of Financial Accounting Standards No. 159, "The Fair Value
Option for Financial Assets and Financial Liabilities - Including an amendment
of FASB Statement No. 115" (hereinafter "SFAS No. 159"). This statement permits
entities to choose to measure many financial instruments and certain other items
at fair value. The objective is to improve financial reporting by providing
entities with the opportunity to mitigate volatility in reported earnings caused
by measuring related assets and liabilities differently without having to apply
complex hedge accounting provisions. This Statement is expected to expand the
use of fair value measurement, which is consistent with the Board's long-term
measurement objectives for accounting for financial instruments. This statement
is effective as of the beginning of an entity's first fiscal year that begins
after November 15, 2007, although earlier adoption is permitted. Management has
not determined the effect that adopting this statement would have on the
Company's financial condition or results of operation.
3.         Related Party
Transactions
a)   On June 25,
2007, the Company issued 75,000 shares of common stock at $0.15 per share to
Starfire Minerals as part of its contract to Option to Purchase Property in
Quebec.  Richard Pierce, President of Santos Resource Corp. is a director on the
board of each company.
b)   A
shareholder loaned the company US$9,852 (CAD$10,000) in April 2007. The loan is
non interest bearing and unsecured and is payable upon request from the
shareholder.
4.         Mineral Properties
On June 25, 2007 the Company
signed an option agreement to acquire a 75%  interest in 18 mineral property
claims in Northern Quebec known as the Lordeau Property, with Starfire Minerals
Inc. ("Starfire"). Santos was granted an option to acquire 75% of the right,
title and undivided interest in the property (subject to the NSR Royalty
reserved to Starfire). Terms and conditions are as follows:
a)   $60,000
cash payment by Santos:
(i)   $10,000 on
execution of this agreement (paid);
(ii)   $25,000
on or before September 30, 2008;
(iii)  $25,000
on or before July 25, 2009; and
b)   75,000
common shares of Santos to be allotted and issued and certificates therefore
delivered to Starfire as follows:
(i)   75,000
common shares (issued June 25, 2007)
49
Santos Resource Corp.
(an exploration stage company)
Notes to the Financial Statements
For the year ending February 29, 2008
(Expressed in U.S. dollars)
4.         Mineral Properties
(continued)
In addition, any shares
delivered, cash payments made, or Expenditures incurred toward the option price
that is over and above that required to be made during a particular time shall
be carried forward and applied against the required payment in subsequent
periods.
Santos will pay Starfire a 3% net
smelter return royalty ("NSR Royalty").  Santos may purchase in the aggregate up
to two-thirds (i.e., 2% NSR Royalty) of the NSR Royalty on the basis of one
hundred thousand dollars for each one-tenth percent of the NSR Royalty (i.e.,
$100,000 per 0.1% NSR Royalty) acquired on the first one-half of the NSR Royalty
(i.e., the first 1% NSR Royalty), and one hundred fifty ($150,000) dollars for
each one-tenth percent of the NSR Royalty (i.e., $150,000 per 0.1% NSR Royalty)
thereafter for the remaining NSR Royalty (i.e., the remaining 1% NSR Royalty). 
To exercise its option to purchase the NSR Royalty or any portion thereof,
Santos must provide the Owner with at least 30 days advance written notice of
its intention to do so, and must close upon each purchase within 60 days of each
notice.
5.         Common Stock
On June 19, 2007, the Company
issued 31,040,000 shares of common stock at $0.0005 per share for cash proceeds
of $15,520 and contributed services of $15,520, to Directors, officers and a
relative of a Director.
On June 25, 2007 the Company
issued 75,000 shares of common stock to Starfire Minerals at $0.15 per share for
proceeds of $11,250, as part of its contract to Option to purchase Property in
Quebec.
On February 1, 2008, the Company
issued 961,500 shares of common stock at $0.15 per share for proceeds of
$144,225, all collected in the current year.
6.         Commitments
On July 16, 2007, we entered into
a services retainer agreement with Fraser and Company LLP, to provide legal
services to Santos.  Pursuant to the agreement, Fraser and Company LLP will
provide legal services in connection with the organization and set up of Santos
and the preparation and filing of a registration statement with the SEC for a
fee of approximately $50,000 (CAD$50,000).  An initial payment of $30,000
(CAD$30,000) is payable on filing of the initial registration statement, and the
balance of $20,000 (CAD$20,000) is payable upon the registration statement being
declared effective by the SEC.
50
Santos Resource Corp.
(an exploration stage company)
Notes to the Financial Statements
For the year ending February 29, 2008
(Expressed in U.S. dollars)
7.          Financial
Instruments
The Company's financial
instruments consist of cash and accrued liabilities unless otherwise noted, it
is management's opinion that the Company is not exposed to significant interest,
currency, or credit risks arising from these financial instruments. The fair
values of these financial instruments approximate their carrying value, unless
otherwise noted.
Currency risk is the risk to the
Company's earnings that arises from fluctuations of foreign exchange rates and
the degree of volatility of these rates. The Company does not use derivative
instruments to reduce its exposure to foreign currency risk.
At February 29, 2008 the Company
had the following financial assets and liabilities in Canadian dollars:
USD
		equivalent
CDN
		Dollars
Cash on
		deposit
$
132,303
$
129,630
Accounts
		payable and accrued liabilities
$
11,712
$
11,484
At February 29, 2008 US dollar
amounts were converted at a rate of $0.9798 Canadian dollars to $1.00 US dollar.
8.         Income Taxes
Potential benefits of income tax
losses are not recognized in the accounts until realization is more likely than
not. The Company has a net operating loss of $35,222, which expires in 2028.
Pursuant to SFAS No. 109, the Company is required to compute tax asset benefits
for net operating losses carried forward. The potential benefits of net
operating losses have not been recognized in these financial statements because
the Company cannot be assured it is more likely than not it will utilize the net
operating losses carried forward in future years.
The components of the net
deferred tax asset at February and the statutory tax rate, the effective tax
rate and the elected amount of the valuation allowance are scheduled below:
February 29,
2008
$
February 28,
2007
$
Net Loss
70,888
-
Statutory Tax Rate
35%
35%
Deferred Tax Asset
24,811
-
Valuation Allowance
(24,811)
-
Net Deferred Tax Asset
-
-
51
13,836,500 SHARES
OF SANTOS RESOURCE CORP.
COMMON STOCK
PROSPECTUS
Date:
, 2008
All dealers
that effect transactions in our shares, whether or not participating in this
offering, may be required to deliver a prospectus.
We have not
authorized any dealer, salesperson or other person to provide any information or
make representation about Santos Resource Corp. except the information or
representation contained in this prospectus.  You should not rely on any
additional information or representation if made.
52
SANTOS
RESOURCE CORP.
11450 - 201A Street, Maple Ridge
British Columbia, Canada  V2X 0Y4
Part II - Information Not
Required In Prospectus
Item
24.  Indemnification of Directors and Officers
Sections
78.7502 and 78.751 of the Nevada Revised Statutes provide for indemnification of
the Company's officers and directors in certain situations where they might
otherwise personally incur liability, judgments, penalties, fines and expenses
in connection with a proceeding or lawsuit to which they might become parties
because of their position with the Company. Sections 78.7502 and 78.791 provide
as follows:
Section
78.7502.   Discretionary and mandatory indemnification of officers, directors,
employees and agents: General provisions.
(1)        A corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative,
except an action by or in the right of the corporation, by reason of the fact
that he is or was a director, officer, employee or agent of the corporation, or
is or was serving at the request of the corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or
other enterprise, against expenses, including attorneys' fees, judgments, fines
and amounts paid in settlement actually and reasonably incurred by him in
connection with the action, suit or proceeding if he acted in good faith and in
a manner which he reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement,
conviction or upon a plea of nolo contendere or its equivalent, does not, of
itself, create a presumption that the person did not act in good faith and in a
manner which he reasonably believed to be in or not opposed to the best
interests of the corporation, and that, with respect to any criminal action or
proceeding, he had reasonable cause to believe that his conduct was unlawful.
(2)        A corporation may indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action or
suit by or in the right of the corporation to procure a judgment in its favor by
reason of the fact that he is or was a director, officer, employee or agent of
the corporation, or is or was serving at the request of the corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against expenses, including amounts paid in
settlement and attorneys' fees actually and reasonably incurred by him in
connection with the defense or settlement of the action or suit if he acted in
good faith and in a manner which he reasonably believed to be in or not opposed
to the best interests of the corporation. Indemnification may not be made for
any claim, issue or matter as to which such a person has been adjudged by a
court of competent jurisdiction, after exhaustion of all appeals therefrom, to
be liable to the corporation or for amounts paid in settlement to the
corporation, unless and only to the extent that the court in which the action or
suit was brought or other court of competent jurisdiction determines upon
application that in view of all the circumstances of the case, the person is
fairly and reasonably entitled to indemnity for such expenses as the court deems
proper.
(3)        To the extent that a director, officer, employee or agent of a
corporation has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in subsections 1 and 2, or in defense of
any claim, issue or matter therein, the corporation shall indemnify him against
expenses, including attorneys' fees, actually and reasonably incurred by him in
connection with the defense.
53
Section
78.751  Authorization required for discretionary indemnification; advancement of
expenses; limitation on indemnification and advancement of expenses.
(1)        Any discretionary indemnification under NRS 78.7502 unless ordered by
a court or advanced pursuant to subsection 2, may be made by the corporation
only as authorized in the specific case upon a determination that
indemnification of the director, officer, employee or agent is proper in the
circumstances. The determination must be made:
(a)        By the stockholders;
(b)        By the board of directors by majority vote of a quorum
consisting of directors who were not parties to the action, suit or proceeding;
(c)        If a majority vote of a quorum consisting of directors who
were not parties to the action, suit or proceeding so orders, by independent
legal counsel in a written opinion; or
(d)        If a quorum consisting of directors who were not parties to
the action, suit or proceeding cannot be obtained, by independent legal counsel
in a written opinion.
(2)        The articles of incorporation, the bylaws or an agreement made by the
corporation may provide that the expenses of officers and directors incurred in
defending a civil or criminal action, suit or proceeding must be paid by the
corporation as they are incurred and in advance of the final disposition of the
action, suit or proceeding, upon receipt of an undertaking by or on behalf of
the director or officer to repay the amount if it is ultimately determined by a
court of competent jurisdiction that he is not entitled to be indemnified by the
corporation. The provisions of this subsection do not affect any rights to
advancement of expenses to which corporate personnel other than directors or
officers may be entitled under any contract or otherwise by law.
(3)        The indemnification and advancement of expenses authorized in or
ordered by a court pursuant to this section:
(a)        Does not exclude any other rights to which a person seeking
indemnification or advancement of expenses may be entitled under the articles of
incorporation or any bylaw, agreement, vote of stockholders or disinterested
directors or otherwise, for either an action in his official capacity or an
action in another capacity while holding his office, except that
indemnification, unless ordered by a court pursuant to NRS 78.7502 or for the
advancement of expenses made pursuant to subsection 2, may not be made to or on
behalf of any director or officer if a final adjudication establishes that his
acts or omissions involved intentional misconduct, fraud or a knowing violation
of the law and was material to the cause of action.
(b)        Continues for a person who has ceased to be a director,
officer, employee or agent and inures to the benefit of the heirs, executors and
administrators of such a person.
To the extent
that indemnification may be related to liability arising under the Securities
Act, the Securities and Exchange Commission takes the position that
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable.
Item 25. 
Other Expenses of Issuance and Distribution
The following
table sets forth all estimated costs and expenses, other than underwriting
discounts, commissions and expense allowances, payable by the issuer in
connection with the offering for the securities included in this registration
statement:
54
Amount
SEC Registration Fee
$
136
Transfer Agent and Miscellaneous Fees
$
1,000
Accounting Fees and Expenses
$
11,200
Legal Fees and Expenses
$
56,000
Printing and Shipping Expenses
$
464
Total
$
68,800
All amounts
are estimates, other than the SEC's registration fee.
We are paying
all expenses of the offering listed above. No portion of these expenses will be
borne by the selling shareholders named in this prospectus. The selling
shareholders, however, will pay any other expenses incurred in selling their
common stock, including any brokerage commissions or costs of sale.
Item 26. 
Recent Sales of Unregistered Securities
On June 19,
2007, we issued an aggregate of 31,040,000 shares of common stock at a price
of $0.0005 per share to nine founding shareholders, which include our directors
and sole officer. We received $15,520 from this offering.  These shares were
issued pursuant to Regulation S of the Securities Act of 1933.  The purchasers
represented to us that they were non-US persons, as defined in Regulation S, and
that their intentions to acquire the securities was for investment only and not
with a view toward distribution.  We did not engage in a distribution of this
offering in the United States and no general solicitation was made to the public
and no advertising was conducted for the offering.
On June 17,
2007, we issued 75,000 shares of common stock to Starfire Minerals Inc., a
British Columbia company, as partial consideration for Starfire granting us an
option to acquire 75% of the Lourdeau Claims.  These shares are issued at a
deemed price of $0.15 per share.  These shares were issued pursuant to
Regulation S of the Securities Act of 1933.  Starfire represented to us that it
was a non-US person, as defined in Regulation S, and that its intentions to
acquire the securities was for investment only and not with a view toward
distribution.  We did not engage in a distribution of this offering in the
United States and no general solicitation was made to the public and no
advertising was conducted for the offering.
On September
18, 2007, we issued 13,836,500 shares of common stock to 40 purchasers at $0.15
per share pursuant to Regulation S of the Securities Act.  The purchasers
represented to us that they were non-US persons, as defined in Regulation S, and
that their intentions to acquire the securities was for investment only and not
with a view toward distribution.  We did not engage in a distribution of this
offering in the United States and no general solicitation was made to the public
and no advertising was conducted for the offering.
Item 27. 
Exhibits Index
No.
Exhibit Name
3.1
Articles
		of Incorporation
3.2
Bylaws
55
No.
Exhibit Name
4.1
Specimen
		Stock Certificate
5.1
Opinion of
		Counsel
10.1
Mineral
		Property Option Agreement dated June 25, 2007 between Starfire Minerals
		Inc. and Santos Resource Corp., whereby Santos has an option to acquire
		a 75% interest in and to the Lourdeau Property
14
Code of
		Ethics
23.1
Consent of
		MacKay LLP, Chartered Accountant
23.2
Consent of
		Counsel (included in 5.1)
23.3
Consent of
		Michel Boily, Ph.D., P. Geo., Geologist
All other Exhibits called for by
Rule 601 of Regulation S-K are not applicable to this filing.  Information
pertaining to our common stock is contained in our Articles of Incorporation and
Bylaws.
Item
28.  Undertakings
The undersigned registrant hereby
undertakes to:
(1) File, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement to:
(i)   Include any prospectus required by Section 10(a)(3) of the Securities Act
of 1933, as amended (the "Securities Act");
(ii)   Reflect in the prospectus any facts or events which, individually or
together, represent a fundamental change in the information in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of the securities offered would
not exceed that which was registered) and any deviation from the low or high end
of the estimated maximum offering range may be reflected in the form of a
prospectus filed with the Commission pursuant to Rule 424(b) under the
Securities Act if, in the aggregate, the changes in volume and price represent
no more than a 20% change in the maximum aggregate offering price set forth in
the "Calculation of Registration Fee" table in the effective registration
statement, and
(iii) Include any additional or changed material information on the plan of
distribution.
(2) For determining liability under the Securities Act, treat each
post-effective amendment as a new registration statement of the securities
offered, and the offering of the securities at that time to be the initial bona
fide offering.
(3) File a post-effective amendment to remove from registration any of
the securities that remain unsold at the end of the offering.
(4) For determining liability of the undersigned small business issuer
under the Securities Act to any purchaser in the initial distribution of the
securities, the undersigned undertakes that in a primary offering of securities
of the undersigned small business issuer pursuant to this registration
statement, regardless of the underwriting method used to sell the securities to
the purchaser, if the securities are
56
offered or sold
to such purchaser by means of any of the following communications, the
undersigned small business issuer will be a seller to the purchaser and will be
considered to offer or sell such securities to such purchaser:
(i)  Any preliminary prospectus or prospectus of the undersigned small business
issuer relating to the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on
behalf of the undersigned small business issuer or used or referred to by the
undersigned small business issuer;
(iii) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned small business issuer or
its securities provided by or on behalf of the undersigned small business
issuer; and
(iv) Any other communication that is an offer in the offering made by the
undersigned small business issuer to the purchaser.
Signatures
In accordance
with the requirements of the Securities Act of 1933, the Registrant certifies
that it has reasonable grounds to believe that it meets all the requirements of
filing on Form S-1 and authorized this registration statement to be signed on
its behalf by the undersigned, in the City of Vancouver, British Columbia,
Canada on July 9, 2008.
SANTOS
		RESOURCE CORP.
Date:  July 9, 2008
By:
/s/
Richard
		Pierce
Richard
		Pierce
President, Secretary and Treasury
(Principal Executive Officer and
Principal Financial Officer)
In accordance
with the requirements of the Securities Act of 1933, this registration statement
was signed by the following persons in the capacities and on the dates stated.
Signatures
Title
Date
/s/
Richard
		Pierce
Richard Pierce
President, Secretary, Treasurer and Director
(Principal Executive Officer and Principal Financial Officer)
July 9, 2008
/s/ Shih-Yi Chuang
Shih-Yi Chuang
Director
July 9, 2008
/s/
Andrew Lee Smith
Andrew Lee Smith
Director
July 9, 2008
57