Globetech Ventures Corp. (An exploration stage company) Consolidated Balance Sheets (Unaudited - Canadian Dollars) June 30, 2006 September 30,2005 - ------------------------------------------------------------------------------- ASSETS Current Assets Cash and cash equivalents $3,957 $51,085 GST refundable 2,128 10,330 Other receivable - 18,207 Prepaid expenses and deposits - 1,503 - ------------------------------------------------------------------------------- 6,085 81,125 Equipment (Note 2) 1,647 2,096 MINERAL PROPERTIES (Note 3) 77,734 50,407 - ------------------------------------------------------------------------------- $85,466 $133,628 LIABILITIES Current Liabilities Accounts payable and accrued liabilities $195,637 $148,496 Loans payable - 254,211 - ------------------------------------------------------------------------------- 195,637 402,707 Convertible loans (Note 5) 367,748 - - ------------------------------------------------------------------------------- 563,385 402,707 SHAREHOLDERS' EQUITY Capital stock Authorized unlimited common shares of no par value Issued and outstanding (Note 6) 33,965,311 33,615,191 Contributed surplus 3,008,754 3,008,754 Deficit accumulated during exploration stage (37,451,984) (36,893,024) - ------------------------------------------------------------------------------- (477,919) (269,079) - ------------------------------------------------------------------------------- $85,466 $133,628 - ------------------------------------------------------------------------------- Globetech Ventures Corp. (An exploration stage company) Consolidated Statements of Operation and Deficit (Unaudited - Canadian Dollars) For the three months For the nine months ended ended June 30 ended June 30 2006 2005 2006 2005 - ------------------------------------------------------------------------------- Administrative expenses Accounting and lega 1,815 14,013 13,607 38,862 Amortization 149 210 447 630 Consulting fees 33,000 - 203,350 54,000 Exploration - 10,563 - 12,563 Financing costs - - 165,000 - Foreign exchange loss 970 7,485 970 7,485 Interest and bank charges 24 6,371 88,952 15,736 Management fees 15,000 - 45,000 18,000 Office and miscellaneous 5,150 2,196 18,120 6,661 PUblic relations 5,850 - 8,676 2,274 Reuglatory and transfer agent 2,216 994 9,594 11,455 Stock-based compensation - - - 671,042 Telephone - 299 624 1,439 Travel and promotino 4,620 2,400 4,620 6,790 - ------------------------------------------------------------------------------- Net loss for the period (68,794) (44,531) (558,960) (846,937) Deficit, beginning of period (37,383,190) (36,916,574)(36,893,024)(36,114,168) - ------------------------------------------------------------------------------- Deficit, end of period $(37,451,984) $(36,961,105) $(37,451,984) $(36,961,105) - ------------------------------------------------------------------------------- loss per share $ - $ - $(0.04) $(0.07) - ------------------------------------------------------------------------------ Globetech Ventures Corp. (An exploration stage company) Consolidated Statement of Shareholders' Equity (Deficiency) (Unaudited - Canadian Dollars) Number of Common Shares Contributed Deficit Total shares issued and surplus accumulated fully paid and equity during the portion of exploration convertibel stage debentures - ------------------------------------------------------------------------------- Balance, December 1991 - $- $- $- $- Issuance of shares for cash Private placement 1,280,001 159,500 - - 159,500 Loss for the period (32,080) (32,080) - ------------------------------------------------------------------------------- Balance, September30, 1992 1,280,001 159,500 - (32,080) 127,420 - ------------------------------------------------------------------------------- Issuance of shares for cash By way of prospectus 600,000 360,000 - - 360,000 Exercise of options 112,000 67,200 - - 67,200 Exercise of warrants 100,000 60,000 - - 60,000 Issuance of shares for property 150,000 90,000 - - 90,000 Share issue costs - (83,205) - - (83,205) Loss for the year - - - (105,902) (105,902) - ------------------------------------------------------------------------------- Balance, September 30, 1993 2,242,001 653,495 - (137,982) 515,513 - ------------------------------------------------------------------------------- Issuance of shares for cash Private placement 400,000 576,000 - - 576,000 Share issue costs - (60,622) - - (60,622) Loss for the year - - - (403,571) (403,571) - ------------------------------------------------------------------------------- Balance, September 30, 1994 2,642,001 1,168,873 - (541,553) 627,320 - ------------------------------------------------------------------------------- Issuance of shares for cash Private placement 418,000 1,121,400 - - 1,121,400 Exercise of options 204,000 347,440 - - 347,440 Issuance of shares for finders fees 35,069 99,570 - - 99,570 Share issue costs - (108,570) - - (108,570) Loss for the year - - - (343,044) (343,044) - ------------------------------------------------------------------------------- Balance, September30,1995 3,299,070 2,628,713 - (884,597) 1,744,116 - ------------------------------------------------------------------------------- Issuance of shares for cash Private placement 1,488,000 6,178,000 - - 6,178,000 Exercise of options 1,128,584 4,161,930 - - 4,161,930 Issuance of shares for finders fees 75,624 197,379 - - 197,379 Share issue costs - (365,874) - - (365,874) Loss for the year - - - (1,533,474) (1,533,474) - ------------------------------------------------------------------------------- Balance, September30,1996 5,991,278 12,800,148 - (2,418,071) 10,382,077 - ------------------------------------------------------------------------------- Issuance of shares for cash Exercise of options 243,000 639,730 - - 639,730 Exercise of warrants 845,447 3,696,723 - - 3,696,723 Issuance on conversion of debt 2,464,950 4,821,079 - - 4,821,079 Issuance of common shares for acqusition of subsidiary 171,282 1,124,745 - - 1,124,745 Issuance of shares for finders fee 65,298 457,086 - - 457,086 Share issue costs - (472,562) - - (472,562) Equity portion of convertible debentures - - 169,760 - 169,760 Loss for the year - - - (2,822,786) (2,822,786) - ------------------------------------------------------------------------------- Balance, September30,1997 9,781,255 23,066,949 169,760 (5,240,857) 17,995,852 - ------------------------------------------------------------------------------- Contingent consideration on acquisition of subsidiary - (1,086,901) - - (1,086,901) Issued on conversion of debt 277,776 261,679 (59,219) - 202,460 - ------------------------------------------------------------------------------- 10,059,031 22,241,727 110,541 (5,240,857) 17,111,411 Captial stock consolidation (7:5:1) (8,717,827) - - - - Issued on conversion of debt 221,234 519,691 (110,541) - 409,150 Issued on settlement of debt 550,000 111,152 - - 111,152 Loss for year - - - (20,236,904) (20,236,904) - ------------------------------------------------------------------------------- Balance, September30,1998 2,112,438 22,872,570 (110,541)(25,477,761) (2,605,191) - ------------------------------------------------------------------------------- Issued on settlement of debt 1,433,364 1,604,029 - - 1,604,029 Loss for the year - - - (706,147) (706,147) - ------------------------------------------------------------------------------- Balance, September30,1999 3,545,802 24,476,599 - (26,183,908) (1,707,309) - ------------------------------------------------------------------------------- Issuance of shares for cash Exercise of options 24,100 56,321 - - 56,321 Exercise of warrants 227,273 370,612 - - 370,612 Issued on conversion of debt 1,830,073 1,078,550 - - 1,078,550 Issued on settlement of debt 220,748 489,660 - - 489,660 Subscriptions received in advance 369,875 - - 369,875 Share issue costs - (74,141) - - (74,141) Loss for the year - - - (438,663) (438,663) - ------------------------------------------------------------------------------- Balance, September30,2000 5,847,996 26,767,476 - (26,622,571) 144,905 - ------------------------------------------------------------------------------- Issuance of shares for cash Private placement 2,000,000 456,840 - - 456,840 Issued for subscription received in advance 227,273 369,875 - - 369,875 Subscription received in advance - (369,875) - - (369,875) Issued on acqusition of equity investment 500,000 192,075 - - 192,075 Issued on settlement of debt 914,670 502,784 - - 502,784 Share issue costs - (45,492) - - (45,492) Loss for the year - - - (1,822,692) (1,822,692) - ------------------------------------------------------------------------------- Balance, September30,2001 9,489,939 27,873,683 - (28,445,263) (571,580) - ------------------------------------------------------------------------------- Loss for the year - - - (319,713) (319,713) - ------------------------------------------------------------------------------- Balance, September30,2002 9,489,939 27,873,683 - (28,764,976) (891,293) - ------------------------------------------------------------------------------- Loss for the year - - - (47,171) (47,171) - ------------------------------------------------------------------------------- Balance, September30,2003 9,489,939 27,873,683 - (28,812,147) (938,464) - ------------------------------------------------------------------------------- Issuance of shares for cash Private placement 1,797,674 1,299,990 - - 1,299,990 Issued on conversion of debt 652,000 432,000 - - 432,000 Acquisition of Brazil Gold Ltda. 2,000,000 4,050,000 - - 4,050,000 Share issue costs - (135,690) - - (135,690) Contributed surplus - - 2,429,100 - 2,429,100 Loss for the year - - - (7,302,024) (7,302,024) - ------------------------------------------------------------------------------ Balance, September30,2004 13,939,613 33,519,983 2,429,100 (36,114,171) (165,088) - ------------------------------------------------------------------------------- Issuance of shares for cash Private placement - shares issued due to repricing 302,326 - - - - Acquisition of Gladys Lake option 50,000 18,504 - - 18,504 Issued on conversion of debt 180,000 76,704 - - 76,704 Contributed surplus - - 579,654 - 579,654 Loss for the year - - - (778,853) (778,853) - ------------------------------------------------------------------------------ Balance, September30,2005 14,471,939 33,615,191 3,008,754 (36,893,024) (269,079) - ------------------------------------------------------------------------------- warrant shares issued 257,812 165,000 - - 165,100 Acquisition of Gladys Lake option 50,000 10,500 - - 10,500 Issued on conversion of debt 861,000 174,620 - - 174,620 Loss for the year - - - (558,960) (558,960) - ------------------------------------------------------------------------------ Balance, June 30,2006 15,640,751 33,965,311 3,008,754 (37,451,984) (477,919) - ------------------------------------------------------------------------------- Globetech Ventures Corp. (An exploration stage company) Consolidated Statements of Cash Flows (Unaudited - Canadian Dollars) For the three months For the nine months ended ended June 30 ended June 30 2006 2005 2006 2005 - ------------------------------------------------------------------------------- OPERATING ACTIVITIES Net loss fro the period $(63,794) $(44,531) $(558,960) $(846,937) Items not involving cash: Amortization 149 210 447 630 Stock-based compensation - - - 671,042 Shares issued for debt 174,620 76,704 174,620 76,704 Shares issued for Glady Lake option 10,500 - 10,500 - Exercise of cashless warrants - - 165,000 - Change in non-cash working capital GST refundable and other receivables 6,051 (1,784) 26,409 (6,361) Prepaid and deposits - - 1,503 - Accounts payable and accrued liabilities 52,078 173,138 47,143 134,063 - ------------------------------------------------------------------------------- Net cash used in operating activities 174,604 203,737 (133,338) 29,141 - ------------------------------------------------------------------------------- FINANCING ACTIVITIES Advances from related parties - - - (267,848) Convertible loans (170,000) - 367,748 - Loans payable - (240,101) (254,211) - - ------------------------------------------------------------------------------- Net cash provided from (used in) financing activities (170,000) (240,101) 113,537 (267,848) - ------------------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures on mineral properties (10,500) - (27,327) (10,000) - ------------------------------------------------------------------------------- Net cash used in investing activities (10,500) - (27,327) (10,000) Change in cash and cash equivalents (5,896) (36,364) (47,128) (248,707) Cash and cash equivalents at beginning of period 9,853 92,044 51,085 304,387 - ------------------------------------------------------------------------------- Cash and cash equivalents at end of period $3,957 $55,680 $3,957 $55,680 - ------------------------------------------------------------------------------- Globetech Ventures Corp. Notes to Consolidated Financial Statements June 30, 2006 (in Canadian dollars) (unaudited) 1. Nature of Operations and significant accounting policies The Company is incorporated under the laws of British Columbia, Canada, and its principal business activities included the acquiring and developing of mineral properties and the processing of related mineral resources. During the year ended September 30, 1998, the Company determined that it was not feasible to continue its mineral property operations. The Company is currently pursuing and evaluating potential business ventures in the mineral field. These interim consolidated financial statements should be read in conjunction with the audited September 30, 2005 annual financial statements. These interim financial statements follow the same accounting policies and methods of their application as in the September 30, 2005 annual financial statements. These interim consolidated financial statements do not conform in all respects to the requirements of Canadian generally accepted accounting principles for annual financial statements in that they do not include all note disclosures. The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and expenses for the periods reported. Actual results could differ from those estimates. 2. Equipment 	 For the nine months ended June 30, 2006	 September 30, 2005 	 	 Cost Accumulated Net book Net book amortization value	 value - ----------------------------------------------------------------------------- Office equipment $5,222	 $4,948	 $274	 $323 Computer equipment 26,313 24,940	 1,373	 1,773 - ----------------------------------------------------------------------------- 	 $31,535	$29,888	 $1,647	 $2,096 - ----------------------------------------------------------------------------- 3. Mineral Properties and Deferred Resource Property Expenditures On February 28, 2005, Globetech announced that it entered into an option agreement whereby the Company can earn a 100% interest in the Gladys Lake porphyry molybdenum property from Mr. John Peter Ross of Whitehorse, Yukon. The Gladys Lake property is situated in northwestern British Columbia approximately 50 km northeast of Atlin and 15 km north of the Adanac molybdenum deposit presently undergoing final engineering studies and permitting. In order to earn a 100% interest, the Company is required to pay a total of $95,000, in ascending payments over a period of four years. The agreement also calls for the issuing of 400,000 shares of Globetech over this same period. The Company has issued a total of 100,000 shares to the vendor. After the four-year period, the Company agrees to pay an annual advance royalty of $25,000 commencing February 28, 2010. On completion of a bankable feasibility, the Company will issue to the vendor a further 400,000 shares of Globetech. The vendor will retain a 3% Net Smelter Return Royalty, 2% of which can be purchased by the Company on a pro-rata basis for the sum of $2,000,000 at any time within five years of commencement of commercial production. An initial down payment of $10,000 was paid. The balance of payments and schedule of share issuances is as follows: Date	 Amount	 Shares - -------------------------------------------------------------------- March 21, 2007 $20,000 50,000 March 21, 2008 25,000 100,000 March 21, 2009	 25,000 150,000 The Company has incurred the following costs on the Gladys Lake property: June 30, 2006 September 30, 2005 - ------------------------------------------------------------------------ Acquisition costs $54,004 $28,504 Exploration costs Report 13,199 13,161 Assessment work 1,789 - Geologist 4,000 4,000 Transportation 4,742 4,742 - ------------------------------------------------------------------------ Total $77,734 $50,407 4. Related Parties The Company has entered into the following transactions with related parties: 	 For the three months ended For the three months ended June 30, 2006 June 30, 2005 - ----------------------------------------------------------------------------- Management fees to officers of the Company $45,000 $18,000 Included in accounts payable is $82,231 due to a director. 5. Convertible Loans Agreements have been negotiated with two old creditors to issue shares at $0.20 USD to retire indebtedness of $367,748. 6. Share Capital a) Common Shares The authorized share capital of the Company is unlimited without par value. b) Issued Number of shares Share Capital -------------------------------------------------------------------- Balance, Setember 30, 2005 14,471,939 $33,615,191 warrant shares issued (Note 6d) 257,812 $0.64 165,000 Shares for property option 50,000 0.21 10,500 Shares issued for debt 861,000 0.20 174,620 Balance, June 30, 2006 15,640,751 $33,965,311 C) Stock Options The Company has adopted an incentive stock option plan (the "Plan"). The essential elements of the Plan provide that the aggregate number of shares of the Company's capital stock issuable pursuant to options granted under the Plan may not exceed 5,800,630 shares. Options granted under the Plan may have a maximum term of five (5) years. The exercise price of the options granted under the Plan will not be less than the fair market value of the common stock at the date of grant. The Plan Administrator shall specify the vesting schedule for each stock option granted. The Company is authorized to grant options to directors, employees and consultants. Stock option transactions and the number of stock options outstanding are summarized as follows: Outstanding and Number of Weighted average exercisable options exercise price at Setepmber 30, 2005 2,100,000 US$0.54 Options granted - - Option cancelled/expired - - Options exercised - - Outstanding and exercisable at June 30, 2006 2,100,000 US$0.54 The Company had 2,100,000 stock options of which 1,700,000 were granted on February 3,2005 that expire on February 3,2008 and 400,000 were granted on March 12, 2004, expiring on March 12, 2008. The following table summarizes information about fixed stock options outstanding at June 30, 2006: Options Outstanding Options Exercisable ------------------------------------------------------------------------- Weighted Weighted Weighted Number average average Number average Range of Outstanding remaining exercise exercisable exercise exercise June 30, contractual price 31, price prices (USD$) 2006 life (years) (USD$) 2006 (USD$) -------------------------------------------------------------------------- $0.30-$1.75 2,100,000 3.3 $0.54 2,100,000 $0.54 d) Warrants Pursuant to a convertible debenture agreement dated July 28, 2004 the holders held 1,000,000 warrants to purchase shares at $0.475 USD per share and exercised their right to obtain 257,812 cashless warrants in lieu of exercising the 1,000,000 warrants. The Company issued 257,812 shares at a deemed value of $0.64 USD per share. At June 30, 2006, the Company had 600,000 (2005 - 2,100,000) common share purchase warrants outstanding to purchase 1,100,000 common shares of the Company. Issue date Warrants outstanding Purchase price Expiry date ---------------------------------------------------------------------- June 30, 2004 300,000 USD$1.00 June 30, 2007 April 23, 2004 300,000 USD$1.00 April 23,2007 7. Contingencies The Company has made a demand for the return of 2,000,000 shares issued in connection with the Amapa property due to breach of the contract. The Company is of the opinion that the breaches incurred by the defendants occurred before any non-performance of the contract on its part and that it should able to exercise its rights under the contract to repurchase the 2,000,000 shares issued for $100.00. The outcome is not determinable.