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<SEC-DOCUMENT>0001225279-10-000137.txt : 20100916
<SEC-HEADER>0001225279-10-000137.hdr.sgml : 20100916
<ACCEPTANCE-DATETIME>20100916153020
ACCESSION NUMBER:		0001225279-10-000137
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20100831
FILED AS OF DATE:		20100916
DATE AS OF CHANGE:		20100916

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SA Recovery Corp.
		CENTRAL INDEX KEY:			0001462223
		STANDARD INDUSTRIAL CLASSIFICATION:	SPECIAL INDUSTRY MACHINERY, NEC [3559]
		IRS NUMBER:				263090646

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-53641
		FILM NUMBER:		101075970

	BUSINESS ADDRESS:	
		STREET 1:		3806 MINNESOTA ST.
		CITY:			BARTLESVILLE
		STATE:			OK
		ZIP:			74006
		BUSINESS PHONE:		(918) 336-1773

	MAIL ADDRESS:	
		STREET 1:		3806 MINNESOTA ST.
		CITY:			BARTLESVILLE
		STATE:			OK
		ZIP:			74006
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>f100915sarecovery10q20100831.htm
<DESCRIPTION>SA RECOVERY FORM 10Q 08.31.2010
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>UNITED STATES </TITLE>
<META NAME="author" CONTENT="April Mather">
<META NAME="date" CONTENT="09/15/2010">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>UNITED STATES</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>WASHINGTON, D.C. 20549</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>FORM 10-Q</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Mark One)</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>For the quarterly period ended<B><U> August 31, 2010</U></B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>Commission File Number: &nbsp;000-53641</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>SA RECOVERY CORP.</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Exact &nbsp;name of small business issuer in its charter)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=361.2></TD><TD width=66></TD><TD width=307.2></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=361.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>Oklahoma</P>
</TD><TD valign=top width=66><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=307.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>26-3090646</P>
</TD></TR>
<TR><TD valign=top width=361.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(State or other jurisdiction of incorporation or organization)</P>
</TD><TD valign=top width=66><P>&nbsp;</P></TD><TD valign=top width=307.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(IRS Employer Identification No.)</P>
</TD></TR>
<TR><TD valign=top width=361.2><P>&nbsp;</P></TD><TD valign=top width=66><P>&nbsp;</P></TD><TD valign=top width=307.2><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=361.2><P>&nbsp;</P></TD><TD valign=top width=66><P>&nbsp;</P></TD><TD valign=top width=307.2><P>&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=361.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>3908 Minnesota St., Bartlesville OK</P>
</TD><TD valign=top width=66><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=307.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>74006</P>
</TD></TR>
<TR><TD valign=top width=361.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Address of principal executive offices)</P>
</TD><TD valign=top width=66><P>&nbsp;</P></TD><TD valign=top width=307.2><P style="line-height:14pt; margin:0px; font-size:12pt" align=center>(Zip Code)</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center>Issuer&#146;s telephone number: &nbsp;&nbsp;<B>(877) 488-8380</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=justify>Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days. &nbsp;Yes [X] &nbsp;No [ &nbsp;&nbsp;&nbsp;]</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" 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 &#147;large accelerated filer,&#148; &#147;accelerated filer,&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act. (Check one): </P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=187.2></TD><TD width=24.4></TD><TD width=106.4></TD><TD width=293.933></TD><TD width=24.067></TD></TR>
<TR><TD style="border-right:1px solid #000000" valign=top width=187.2><P style="margin:0px">Large accelerated filer</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=24.4><P style="margin:0px">&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=106.4><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000" valign=top width=293.933><P style="margin:0px">Accelerated filer </P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=24.067><P>&nbsp;</P></TD></TR>
<TR><TD style="border-right:1px solid #000000" valign=top width=187.2><P style="margin:0px">Non-accelerated filer </P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=24.4><P>&nbsp;</P></TD><TD valign=top width=106.4><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000" valign=top width=293.933><P style="margin:0px">Smaller reporting company </P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=24.067><P style="margin:0px">X</P>
</TD></TR>
<TR><TD style="border-right:1px solid #000000" valign=top width=187.2><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=24.4><P>&nbsp;</P></TD><TD valign=top width=106.4><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000" valign=top width=293.933><P>&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=24.067><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; padding-right:36px" align=justify>Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). &nbsp;&nbsp;&nbsp;&nbsp;Yes [ ] &nbsp;No [X ]</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>As of September 15, 2010, the registrant had 31,073,593 shares of common stock, $.0001 par value, issued and outstanding. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt; page-break-before:always" align=center><B>SA RECOVERY CORP.</B></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>FORM 10-Q</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin:0px; font-size:12pt" align=center><B>TABLE OF CONTENTS</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px"><A HREF="#_Toc272246401"><U>PART I. FINANCIAL INFORMATION</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; text-indent:616.667px"><A HREF="#_Toc272246401">3</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246402"><U>Item 1. Financial Statements</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:603.333px"><A HREF="#_Toc272246402">3</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246403"><U>Note 1 &#150;Basis of Presentation</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:603.333px"><A HREF="#_Toc272246403">7</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246404"><U>Item 2. Management's Discussion And Analysis Or Plan Of Operation</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246404">12</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246405"><U>Item 3. Quantitative And Qualitative Disclosures About Market Risk</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246405">14</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246406"><U>Item 4. &nbsp;Controls And Procedures</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246406">14</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px"><A HREF="#_Toc272246407"><U>PART II - OTHER INFORMATION</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; text-indent:610px"><A HREF="#_Toc272246407">14</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246408"><U>Item 1. Legal Proceedings</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246408">14</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246409"><U>Item 1A. &nbsp;Risk Factors</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246409">14</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246410"><U>Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246410">14</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246411"><U>Item 3. Defaults Upon Senior Securities</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246411">15</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246412"><U>Item 4. Submission of Matters to a Vote of Securities Holders</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246412">15</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246413"><U>Item 5. Other Information</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246413">15</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:13.333px"><A HREF="#_Toc272246414"><U>Item 6. Exhibits</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; padding-left:13.333px; text-indent:596.667px"><A HREF="#_Toc272246414">15</A><U></U></P>
<P style="margin-top:0px; margin-bottom:-16px"><A HREF="#_Toc272246415"><U>SIGNATURES</U></A></P>
<P style="margin-top:0px; margin-bottom:4px; text-indent:610px"><A HREF="#_Toc272246415">16</A><U></U></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<A NAME="_Toc272246401"></A><P style="margin:0px; font-family:Times New Roman Bold" align=center><B>PART I. FINANCIAL INFORMATION </B></P>
<P style="margin:0px" align=center><BR></P>
<A NAME="_Toc272246402"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 1. Financial Statements</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>SA RECOVERY CORP.</B></P>
<P style="margin:0px" align=center><B>(A Development Stage Enterprise)</B></P>
<P style="margin:0px" align=center><B>BALANCE SHEETS</B></P>
<P style="margin:0px" align=center><B>AS OF AUGUST 31, 2010 AND FEBRUARY 28, 2010</B></P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=18.667></TD><TD width=335.933></TD><TD width=94.267></TD><TD width=15.733></TD><TD width=94.267></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=center><B>August 31, 2010</B></P>
<P style="margin:0px" align=center><B>(Unaudited)</B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=center><B>February 28, 2010</B></P>
</TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">ASSETS</P>
</TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">Current Assets</P>
</TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Cash</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;566</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,170</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Total current assets</P>
</TD><TD style="border-top:1px solid #000000" valign=bottom width=94.267><P style="margin:0px" align=right>566</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=94.267><P style="margin:0px" align=right>2,170</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">Non-current assets</P>
</TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Intangible &#150; license permit, net of accumulated amortization of $10,000 and $10,000 as of August 31, 2010 and February 28, 2010, respectively</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Total non-current assets</P>
</TD><TD style="border-top:1px solid #000000" valign=bottom width=94.267><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=94.267><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">TOTAL ASSETS</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=94.267><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;566 </P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=94.267><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,170</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">LIABILITIES AND SHAREHOLDERS' DEFICIT</P>
</TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">Current Liabilities</P>
</TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Accounts payable</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;191</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;191 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5191 </P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Accrued director salary</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>7,500</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>5,000</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Note payable &#150; related party</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>19,763</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>9,150</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Convertible notes and interest payable, net of discounts of $0 at August 31, 2010 and February 28, 2010</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>71,754</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;70,129 </P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Total current liabilities</P>
</TD><TD style="border-top:1px solid #000000" valign=bottom width=94.267><P style="margin:0px" align=right>99,208</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=94.267><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;84,470 </P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">TOTAL LIABILITIES</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=94.267><P style="margin:0px" align=right>99,208 </P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=94.267><P style="margin:0px" align=right>84,470</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">Shareholders' deficit</P>
</TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Common stock, par value $0.001; 495 million shares authorized; 31,073,593 shares issued and outstanding at August 31, 2010 and February 28, 2010</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>3,107</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,107 </P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Additional paid in capital</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>62,649</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,203 </P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Deficit accumulated during the development stage</P>
</TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>(164,398)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(147,610)</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P style="margin:0px">Total shareholders' deficit</P>
</TD><TD style="border-top:1px solid #000000" valign=bottom width=94.267><P style="margin:0px" align=right>(98,642)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=94.267><P style="margin:0px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(82,300)</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=335.933><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=94.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=94.267><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;566 </P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=94.267><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,170</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>See Summary of Significant Accounting Policies and Notes to Financial Statements.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>SA RECOVERY CORP.</B></P>
<P style="margin:0px" align=center><B>(A Development Stage Enterprise)</B></P>
<P style="margin:0px" align=center><B>STATEMENTS &nbsp;OF OPERATIONS</B></P>
<P style="margin:0px" align=center><B>For the Three and Six Months Ended August 31, 2010 and 2009, </B></P>
<P style="margin:0px" align=center><B>And for the Period from Inception (July 28, 2008) to August 31, 2010</B></P>
<P style="margin:0px" align=center><B>(Unaudited)</B></P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=18.667></TD><TD width=166.8></TD><TD width=77.6></TD><TD width=15.733></TD><TD width=77.6></TD><TD width=15.733></TD><TD width=77.6></TD><TD width=15.733></TD><TD width=77.6></TD><TD width=15.733></TD><TD width=77.6></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P>&nbsp;</P></TD><TD valign=bottom colspan=3><P style="margin:0px" align=center><B>&nbsp;Three Months Ended </B></P>
<P style="margin:0px" align=center><B>August 31, </B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom colspan=3><P style="margin:0px" align=center><B>&nbsp;Six Months Ended </B></P>
<P style="margin:0px" align=center><B>August 31, </B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6 rowspan=2><P style="margin:0px" align=center><B>Inception (07/28/08) to 8/31/10</B></P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=center><B>2010</B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=center><B>2009</B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=center><B>2010</B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=center><B>2009</B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">REVENUES</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">EXPENSES</P>
</TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">Director salary</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>1,250</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>793</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>2,500</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>1,557</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>7,500</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">General and administrative</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>8,505</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>1,615</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>12,217</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>9,595</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>35,833</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">Research and development</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>46,500</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">Asset impairments</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>2,055</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">Interest</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>1,068</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>11,650</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>2,071</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>30,591</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>72,510</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">Total expenses</P>
</TD><TD style="border-top:1px solid #000000" valign=bottom width=77.6><P style="margin:0px" align=right>10,823</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=77.6><P style="margin:0px" align=right>14,058</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=77.6><P style="margin:0px" align=right>16,788</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=77.6><P style="margin:0px" align=right>41,743</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=77.6><P style="margin:0px" align=right>164,398</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">Net Loss</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;(10,823)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;(14,058)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;(16,788)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;(41,713)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>$ (164,398)</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">Weighted average shares outstanding</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>31,073,593</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>31,073,593</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>31,073,593</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>31,073,593</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=166.8><P style="margin:0px">Loss per share (basic and fully diluted)</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>See Summary of Significant Accounting Policies and Notes to Financial Statements.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>4</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>SA RECOVERY CORP.</B></P>
<P style="margin:0px" align=center><B>(A Development Stage Enterprise)</B></P>
<P style="margin:0px" align=center><B>STATEMENT OF SHAREHOLDERS&#146; DEFICIT</B></P>
<P style="margin:0px" align=center><B>FROM INCEPTION (JULY 28, 2008) TO AUGUST 31, 2010</B></P>
<P style="margin:0px" align=center><B>(Unaudited)</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=170.6></TD><TD width=62.667></TD><TD width=77></TD><TD width=1.667></TD><TD width=75.333></TD><TD width=80.933></TD><TD width=85.533></TD><TD width=80.933></TD></TR>
<TR><TD valign=bottom width=170.6 rowspan=2><P>&nbsp;</P></TD><TD valign=bottom width=62.667 rowspan=2><P style="margin:0px" align=center>Date</P>
</TD><TD valign=bottom colspan=3><P style="margin:0px" align=center><U>Capital Stock</U></P>
</TD><TD valign=bottom width=80.933 rowspan=2><P style="margin:0px" align=center>&nbsp;Additional Paid In Capital </P>
</TD><TD valign=bottom width=85.533 rowspan=2><P style="margin:0px" align=center>&nbsp;Accumulated Loss </P>
</TD><TD valign=bottom width=80.933 rowspan=2><P style="margin:0px" align=center>&nbsp;Total </P>
</TD></TR>
<TR><TD valign=bottom width=77><P style="margin:0px" align=center>Shares</P>
</TD><TD valign=bottom colspan=2><P style="margin:0px" align=center>Amount</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Balances, July 28, 2008</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=75.333><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P>
</TD><TD valign=bottom width=85.533><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Shares issued to former shareholders of AMS Health Sciences, Inc.</P>
</TD><TD valign=bottom width=62.667><P style="margin:0px" align=center>07/28/08</P>
</TD><TD valign=bottom colspan=2><P style="margin:0px" align=right>13,593</P>
</TD><TD valign=bottom width=75.333><P style="margin:0px" align=right>1</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>(1)</P>
</TD><TD valign=bottom width=85.533><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Founders' shares</P>
</TD><TD valign=bottom width=62.667><P style="margin:0px" align=center>07/28/08</P>
</TD><TD valign=bottom colspan=2><P style="margin:0px" align=right>31,000,000</P>
</TD><TD valign=bottom width=75.333><P style="margin:0px" align=right>3,100</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>(3,100)</P>
</TD><TD valign=bottom width=85.533><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Shares issued to escrow agents for settlements with creditors of AMS Health Sciences, Inc.</P>
</TD><TD valign=bottom width=62.667><P style="margin:0px" align=center>07/28/08</P>
</TD><TD valign=bottom colspan=2><P style="margin:0px" align=right>60,000</P>
</TD><TD valign=bottom width=75.333><P style="margin:0px" align=right>6</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>(6)</P>
</TD><TD valign=bottom width=85.533><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Discount on note payable</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>65,000</P>
</TD><TD valign=bottom width=85.533><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>65,000</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Net loss, inception (7/28/08) to 2/28/09</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=85.533><P style="margin:0px" align=right>(92,663)</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>(92,663)</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Balances, February 28, 2009</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom colspan=2><P style="margin:0px" align=right>31,073,593</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=75.333><P style="margin:0px" align=right>3,107</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=80.933><P style="margin:0px" align=right>61,893</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=85.533><P style="margin:0px" align=right>(92,663)</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=80.933><P style="margin:0px" align=right>(27,663)</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Interest imputed on related-party advances</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>310</P>
</TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>310</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Net loss, year ended 2/28/10</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=85.533><P style="margin:0px" align=right>(54,947)</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>(54,947)</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom colspan=2><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=85.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Balances, February 28, 2010</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom colspan=2><P style="margin:0px" align=right>31,073,593</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75.333><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,107</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=80.933><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,203</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=85.533><P style="margin:0px" align=right>$ &nbsp;&nbsp;(147,610)</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=80.933><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;(82,300)</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Interest imputed on related-party advances</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>446</P>
</TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>446</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Net loss, six months ended 8/31/10</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD valign=bottom colspan=2><P>&nbsp;</P></TD><TD valign=bottom width=75.333><P>&nbsp;</P></TD><TD valign=bottom width=80.933><P>&nbsp;</P></TD><TD valign=bottom width=85.533><P style="margin:0px" align=right>(16,788)</P>
</TD><TD valign=bottom width=80.933><P style="margin:0px" align=right>(16,788)</P>
</TD></TR>
<TR><TD valign=bottom width=170.6><P>&nbsp;</P></TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom colspan=2><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80.933><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=85.533><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=170.6><P style="margin:0px">Balances, August 31, 2010</P>
</TD><TD valign=bottom width=62.667><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom colspan=2><P style="margin:0px" align=right>31,073,593</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75.333><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,107</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=80.933><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,649</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=85.533><P style="margin:0px" align=right>$ &nbsp;&nbsp;(164,398)</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=80.933><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;(98,642)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:-24px" align=center>See Summary of Significant Accounting Policies and Notes to Financial Statements.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>5</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=center><B>SA RECOVERY CORP.</B></P>
<P style="margin:0px" align=center><B>(A Development Stage Enterprise)</B></P>
<P style="margin:0px" align=center><B>STATEMENTS OF CASH FLOWS</B></P>
<P style="margin:0px" align=center><B>For the Six Months Ended August 31, 2010 and 2009, </B></P>
<P style="margin:0px" align=center><B>And for the Period from Inception (July 28, 2008) to August 31, 2010</B></P>
<P style="margin:0px" align=center><B>(Unaudited)</B></P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=18.667></TD><TD width=266.133></TD><TD width=77.6></TD><TD width=15.733></TD><TD width=77.6></TD><TD width=15.733></TD><TD width=77.6></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom colspan=3><P style="margin:0px" align=center><B>&nbsp;Six Months Ended August 31, </B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6 rowspan=2><P style="margin:0px" align=center><B>Inception (07/28/08) to 5/31/10</B></P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=center><B>2010</B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=center><B>2009</B></P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">OPERATING ACTIVITIES:</P>
</TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">Net loss</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;(16,788)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;(41,743)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ (164,398)</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=3><P style="margin:0px">Adjustments to reconcile net loss to cash flows used in operations:</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Amortization of discount on note payable</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>27,083</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>65,000</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Amortization of intangible</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>2,472</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>7,945</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Asset impairment</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>2,055</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Interest imputed on related-party note</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>446</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>756</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">Changes in operating assets and liabilities</P>
</TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Accounts payable and accrued liabilities</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>4,125</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>5,065</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>14,445</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Cash used in operating activities</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>(12,217)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>(7,123)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>(74,197)</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">INVESTING ACTIVITIES</P>
</TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Purchase of license permit</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>(10,000)</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Cash used in investing activities</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>(10,000)</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=2><P style="margin:0px">FINANCING ACTIVITIES</P>
</TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Proceeds from note payable</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>65,000</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Proceeds from related-party note payable</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>10,613</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>1,900</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>19,763</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Cash provided by financing activities</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>10,613</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>1,900</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>84,763</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Net decrease in cash and cash equivalents during the year</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>(1,604)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>(5,223)</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>566</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Cash and cash equivalents at beginning of period</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.6><P style="margin:0px" align=right>2,170</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.6><P style="margin:0px" align=right>5,273</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Cash and cash equivalents at end of period</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;566 </P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50 </P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;566 </P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom colspan=3><P style="margin:0px">SUPPLEMENTAL CASH FLOW DISCLOSURES</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Cash paid for interest</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- &nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=18.667><P>&nbsp;</P></TD><TD valign=bottom width=266.133><P style="margin:0px">Cash paid for income taxes</P>
</TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD><TD valign=bottom width=15.733><P>&nbsp;</P></TD><TD valign=bottom width=77.6><P style="margin:0px" align=right>-</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; padding-left:-24px" align=center>See Summary of Significant Accounting Policies and Notes to Financial Statements.</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>6</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=center><B>SA RECOVERY CORP.</B></P>
<P style="margin:0px" align=center><B>(A Development Stage Enterprise)</B></P>
<P style="margin:0px" align=center><B>NOTES TO FINANCIAL STATEMENTS</B></P>
<P style="margin:0px" align=center><B>(Unaudited)</B></P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc272246403"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Note 1 &#150;Basis of Presentation</B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:13.333px; margin-bottom:3.333px; font-family:Times New Roman Bold"><B>Organization and History</B></P>
<P style="margin:0px" align=justify>SA Recovery Corp. was incorporated in Oklahoma on July 28, 2008. &nbsp;SA Recovery Corp. is a development stage company that is designing a mobile unit that removes contaminants from sand. &nbsp;As of the date of this filing, we have not generated any revenues from our operations. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Our former parent company, AMS Heath Sciences, Inc., (&#147;AMS&#148;) was originally incorporated on May 22, 1987. &nbsp;On December 27, 2007, AMS filed a voluntary Petition for Relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Western District of Oklahoma, Case no. 07-14678. On July 15, 2008, the Bankruptcy Court issued an Order Confirming the First Amended Plan of Reorganization with an effective date of July 28, 2008. &nbsp;Pursuant to the Plan, on July 28, 2008, AMS implemented a 1/670 reverse stock split; issued 25,000,000 restricted shares of common stock to IACE Investments Two, Inc.; issued 600,000 restricted shares of common stock pursuant to a DIP loan; issued 50,000 shares of common stock to the Bankruptcy Trustee; and issued 100 shares of common stock to each class 6 and class 7 claimholder. &nbsp;The products and operations of AMS were sold to a secured creditor. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On July 28, 2008, AMS completed a holding company reorganization that resulted in SA Recovery Corp., a wholly owned subsidiary of AMS, becoming the Holding Company with the exact same equity structure and shareholder base as the former AMS and AMS being merged into a wholly owned subsidiary of SA Recovery Corp., subsequently disposed of all ownership rights in the subsidiary and currently has no ownership or interest in any subsidiaries. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Our common stock is traded is traded on Pinksheets under the symbol &#147;SARY&#148;. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:13.333px; margin-bottom:3.333px; font-family:Times New Roman Bold" align=justify><B>Nature of Operations</B></P>
<P style="margin:0px" align=justify>During the period ended August 31, 2010, the Company is continuing to further develop a mobile unit that removes contaminants from sand. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:6.667px; margin-bottom:6.667px" align=justify><I>Development Stage</I></P>
<P style="margin:0px" align=justify>The Company has not earned revenue from planned principal operations since inception (June 28, 2008). Accordingly, the Company's activities have been accounted for as those of a &quot;Development Stage Enterprise&quot; as provided for in guidance governing Development Stage Enterprises (&#147;ASC 915&#148;). Among the disclosures required by the guidance in ASC 915 are that the Company's financial statements be identified as those of a development stage company, and that the statements of operations, stockholders' equity (deficit) and cash flows disclose activity since the date of the Company's inception.</P>
<P style="margin-top:6.667px; margin-bottom:6.667px" align=justify><I>Basis of Presentation and Summary of Significant Accounting Policies</I></P>
<P style="margin:0px" align=justify>In the opinion of management, the accompanying financial statements includes all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the period ending August 31, 2010. &nbsp;Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. &nbsp;Interim results are not necessarily indicative of results for a full year. &nbsp;The information included in this Form 10-Q should be read in conjunction with information included in our audited financial statements for the period ended February 28, 2010, as reported in Form 10-K filed with the SEC on September 20, 2010. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. &nbsp;The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Use of Estimates</U> </I>The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>7</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=justify><I><U>Cash and Cash Equivalents</U>: </I>For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. As of 11/30/09, there were no cash equivalents.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Property and Equipment: </U></I>&nbsp;&nbsp;New property and equipment are recorded at cost. &nbsp;Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 5 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs and maintenance are charged to operations as incurred. Gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Intangible Assets and Impairments:</U></I> &nbsp;The Company amortizes intangible assets over their estimated useful lives unless such lives are deemed indefinite. Amortizable intangible assets are tested for impairment based on undiscounted cash flows, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested annually for impairment and written down to fair value as required. No impairment of intangible assets has been recorded during any of the periods presented. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Revenue Recognition:</U></I> &nbsp;SA Recovery recognizes revenue when persuasive evidence of an agreement exists, services have been rendered, the sales price of a unit is fixed or determinable, and collectibility is reasonably assured. &nbsp;Since our inception on July 28, 2008, SA Recovery has had no revenues. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Valuation of Long-Lived Assets</U>:</I> We review the recoverability of our long-lived assets including equipment, goodwill and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Stock Based Compensation:</U> </I>Stock-based awards to non-employees are accounted for using the fair value method in accordance with the guidance provided by Account Standards Codification (&#147;ASC&#148;) Topic No. 718 (&#147;ASC 718&#148;), dealing with compensation and stock-based compensation. &nbsp;This guidance requires that companies measure and recognize compensation expense at an amount equal to the fair value of share-based payments granted under compensation arrangements. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>We adopted the guidance of ASC 718 using the &#147;modified prospective&#148; method, which results in no restatement of prior period amounts. Under this method, the provisions of ASC 718 apply to all awards granted or modified after the date of adoption. In addition, compensation expense must be recognized for any unvested stock option awards outstanding as of the date of adoption on a straight-line basis over the remaining vesting period. We calculate the fair value of options using a Black-Scholes option pricing model. We do not currently have any outstanding options subject to future vesting therefore no charge is required for the period ended August 31, 2010. ASC 718 also requires the benefits of tax deductions in excess of recognized compensation expense to be reported in the Statement of Cash Flows as a financing cash inflow rather than an operating cash inflow. In addition, ASC 718 requires a modification to the Company&#146;s calculation of the dilutive effect of 
stock option awards on earnings per share. For companies that adopt ASC 718 using the &#147;modified prospective&#148; method, disclosure of pro forma information for periods prior to adoption must continue to be made. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Accounting For Obligations And Instruments Potentially To Be Settled In The Company&#146;s Own Stock</U></I>: We account for obligations and instruments potentially to be settled in the Company&#146;s stock in accordance with the guidance provided by ASC Topic 815 (&#147;ASC 815&#148;), which addresses derivatives and hedging. &nbsp;This issue addresses the initial balance sheet classification and measurement of contracts that are indexed to, and potentially settled in, the Company&#146;s own stock.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Fair Value of Financial Instruments</U>:</I> ASC 825 &#150; <I>Financial Instruments </I>&nbsp;requires disclosure of fair value information about financial instruments. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of August 31, 2010. The respective carrying value of certain on-balance sheet financial instruments approximated their fair values. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>These financial instruments include cash and cash equivalents, accounts payable and accrued expenses. Fair values were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Earnings per Common Share</U>:</I> Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed using the weighted average number of common and dilutive equivalent shares outstanding during the period. Dilutive common equivalent shares consist of options to purchase common stock </P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>8</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=justify>(only if those options are exercisable and at prices below the average share price for the period) and shares issuable upon the conversion of our Preferred Stock. Due to the net losses reported, dilutive common equivalent shares were excluded from the computation of diluted loss per share, as inclusion would be anti-dilutive for the periods presented. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>There were no common equivalent shares required to be added to the basic weighted average shares outstanding to arrive at diluted weighted average shares outstanding for the six months ended August 31, 2010. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><I><U>Income Taxes:</U> </I>We must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Deferred income taxes are recorded in accordance with the guidance found in ASC Topic 740 (&#147;ASC 740&#148;) addressing income taxes. &nbsp;Under this guidance, deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>ASC 740 provides for the recognition of deferred tax assets if realization of such assets is more likely than not to occur. &nbsp;Realization of our net deferred tax assets is dependent upon our generating sufficient taxable income in future years in appropriate tax jurisdictions to realize benefit from the reversal of temporary differences and from net operating loss, or NOL, carryforwards. We have determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against substantially all of our net deferred tax asset. Management will continue to evaluate the realizability of the deferred tax asset and its related valuation allowance. If our assessment of the deferred tax assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. Our tax rate may also vary based on our results and the mix of income or loss 
in domestic and foreign tax jurisdictions in which we operate. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and to the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we will reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We will record an additional charge in our provision for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>ASC 740 requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:6.667px; margin-bottom:6.667px" align=justify><I>Recent Accounting Pronouncements</I></P>
<P style="margin:0px" align=justify>In September 2006, the FASB issued ASC Topic 820 (&#147;ASC 820&#148;) which provides guidance for using fair value to measure assets and liabilities. It also responds to investors&#146; requests for expanded information about the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on earnings. ASC 820 applies whenever other standards required (or permit) assets or liabilities to be measured at fair value, and does not expand the use of fair value in any new circumstances. &nbsp;ASC 820 is effective for financial statements issued for fiscal years beginning after November&nbsp;15, 2007. We are currently evaluating the effect that the adoption of ASC 820 will have on our results of operations and financial condition and are not yet in a position to determine such effects.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>In February 2007, FASB issued ASC Topic 825 (&#147;ASC 825). ASC 825 permits entities to choose to measure many financial instruments and certain other items at fair values. &nbsp;ASC 825 is effective for fiscal years after November 15, 2007. The Company is currently evaluating the impact of adopting ASC 825 on our financial statements.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>In December 2007, the Financial Accounting Standards Board issued ASC Topic 805 addressing the accounting issues associated with business combinations.&nbsp; ASC 805 provides additional guidance on improving the relevance, representational faithfulness, and comparability of the financial information that a reporting entity provides in its financial reports about a business combination and its effects.&nbsp;This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December&nbsp;15, 2008. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>In December 2007, the Financial Accounting Standards Board issued ASC Topic 810 (&#147;ASC 810&#148;) addressing consolidations. &nbsp;ASC 810 establishes accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidation of a subsidiary.&nbsp;This Statement is effective for fiscal years and interim periods within those fiscal years, beginning on or after December&nbsp;15, 2008. The Company is currently evaluating the impact of adopting this guidance on our financial statements.</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>9</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin-top:0px; margin-bottom:5.533px"><B>Note 2 &#150; Going Concern</B></P>
<P style="margin:0px" align=justify>The accompanying financial statements have been prepared assuming that SA Recovery Corp. will continue as a going concern. As shown in the accompanying financial statements, we had negative cash flows from operations of $74,197 during the period from inception (July 8, 2008) to August 31, 2010, and a working capital deficit of $98,642 at August 31, 2010. &nbsp;These conditions raise substantial doubt as to our ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. &nbsp;Management intends to finance these deficits by making additional shareholder notes and seeking additional outside financing through either debt or sales of its common stock.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Note 3 &#150; Capital Structure</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:6.667px; margin-bottom:6.667px" align=justify><I>Common Stock</I></P>
<P style="margin:0px" align=justify>We are authorized to issue up to 495,000,000 shares of common stock at $.0001 par value with 31,073,593 issued as of August 31, 2010 and February 28, 2010. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:6.667px; margin-bottom:6.667px" align=justify><I>Preferred Stock</I></P>
<P style="margin:0px" align=justify>We are authorized to issue up to 5,000,000 shares of preferred stock at $.0001 par value with no preferred shares issued as of August 31, 2010 and February 28, 2010. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:6.667px; margin-bottom:6.667px" align=justify><I>Potentially Dilutive Securities</I></P>
<P style="margin:0px" align=justify>As is discussed in Note 4, On August 1, 2008, we issued a $65,000 note payable which, at the option of the holder, may be converted to 2 million shares of common stock.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Note 4 &#150; Convertible Note Payable</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On August 1, 2008, the Company borrowed $65,000 for working capital purposes and we issued a one-year note payable. &nbsp;The note matures on August 1, 2009 and bears interest at 5% per year. &nbsp;The holder has the right, with proper notice to convert the note into two-million shares of common stock at $.035 per share. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On July 28, 2009, the maturity date of this note payable was extended until February 28, 2011.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:6.667px; margin-bottom:6.667px" align=justify><I>Note Discount</I></P>
<P style="margin:0px" align=justify>In accounting for this note payable, we applied ASC 470-20 &#150; <I>Debt with Conversion and Other Options</I>. &nbsp;&nbsp;ASC 470-20 requires issuers of convertible debt instruments that may be settled in cash upon conversion to account separately for the liability and equity components in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>We therefore initially accounted for conversion feature as equity by discounting the note in its entirety and crediting &#147;Additional Paid In Capital&#148;. &nbsp;We are amortized the discount over the note&#146;s one-year life using the effective interest method. &nbsp;For the period from inception (July 28, 2008) to February 28, 2010 , we have amortized the entire $65,000 discount to interest expense. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Note 5 &#150; Intangibles: &nbsp;License Permits and Agreement with CGJ Holding, LLC</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On July 28, 2008, the Company purchased the <I>Sand Extraction Prototype I</I> &nbsp;from CGJ Holding, LLC, a Nevada Limited Liability Company (&#147;CGJ&#148;) for the sum of $15,000. &nbsp;We have included the cost of this prototype in Research and Development Expenses.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>The <I>Sand Extraction Prototype I</I> is an apparatus designed to remove contaminants from sand. Concurrently, the Company entered into a two (2) year License Agreement with CGJ for the sum of $10,000 &nbsp;that grants the Company the exclusive right to make, use, and ultimately sell commercial units capable of removing contaminants, including asphalt, from sand or rock composite. &nbsp;We have capitalized the cost of this intangible asset in &#147;Intangible &#150; license permit&#148; and amortized this cost over the two-year life of our agreement with CGJ. &nbsp;For the period from inception (July 28, 2008) to February 28, 2010, we amortized the entire $10,000 of this cost to expense.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>The License is renewable in the event that the Company is able to sell a commercial version of the <I>Sand Extraction Prototype I</I>. &nbsp;Pursuant to the License Agreement, the Company is required to pay a ten percent (10%) royalty fee for each commercial unit sold. </P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>10</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always" align=justify>The License Agreement contains a languishing clause that terminates the License Agreement in the event that the Company is unable to design, manufacturer and sell a commercial unit during the two year time period. &nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>On August 1, 2010, the Company and CGJ Holding, LLC mutually agreed to not renew the terms of the License Agreement beyond the July 28, 2010 expiration. &nbsp;The parties entered the License Agreement with the anticipation that the Prototype Unit would be easily fabricated as a product for sale. &nbsp;The respective parties discovered that the Prototype Unit suffered from operating problems, such as leaked under pressure; jets clogged with sand and was overly cumbersome. &nbsp;The Company is now focused on converting the Prototype Unit into a Mobile Unit. &nbsp;The Company is no longer obligated pay any royalty fee. &nbsp;In the event that the Company elects to fabricate and sell the Prototype Units as originally designed, the Company would be required to obtain a License from CGL Holding, LLC. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Note 6 &#150; Commitments and Contingencies</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>We have no outstanding commitments for office rental or other obligations for which we would require payout disclosures. &nbsp;Our only commitment is our 10% royalty fee, explained in Note 5, which does not begin until commercialization.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Note 7 &#150; Related Party Transactions</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>At August 31, 2010, the Company owes $191 to a related party for expenses paid on behalf of the Company. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>During the year ended February 28, 2010, we received $9,150 from a an affiliate to pay our operating costs. &nbsp;During the six months ended August 31, 2010, we received an additional $10,613 from this affiliate.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>Note 8 &#150; Subsequent Events</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>The Company has evaluated subsequent events through the date these financial statements were issued.</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_Toc272246404"></A><P style="margin:0px; font-family:Times New Roman Bold" align=justify><B>Item 2.<A NAME="FIS_MANAGEMENT_ANALYSIS"></A> Management's Discussion And Analysis Or Plan Of Operation </B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>This report includes &quot;forward-looking statements&quot; within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;). For example, statements included in this report regarding our financial position, business strategy and other plans and objectives for future operations, and assumptions and predictions about future product demand, supply, manufacturing, costs, marketing and pricing <A NAME="eolPage8"></A>factors are all forward-looking statements. When we use words like &quot;intend,&quot; &quot;anticipate,&quot; &#147;will,&#148; &#147;may,&#148; &#147;should,&#148; &#147;could,&#148; &#147;predict,&#148; &#147;potential,&#148; &quot;believe,&quot; &quot;estimate,&quot; &quot;plan&quot; or &quot;expect,&quot; we are making forward-looking statements. We believe that the assumptions and expectations reflected in such forward-looking statements are reasonable, based on information a
vailable to us on the date hereof, but we cannot assure you that these assumptions and expectations will prove to have been correct or that we will take any action that we may presently be planning. We have disclosed certain important factors that could cause our actual results to differ materially from our current expectations elsewhere in this report. You should understand that forward-looking statements made in this report are necessarily qualified by these factors. We are not undertaking to publicly update or revise any forward-looking statement if we obtain new information or upon the occurrence of future events or otherwise. <A NAME="eolPage9"></A></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:13.333px; margin-bottom:3.333px; font-family:Times New Roman Bold" align=justify><B>Description of Business</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>SA Recovery Corp. was incorporated in Oklahoma on July 28, 2008. &nbsp;SA Recovery Corp. is a development stage company that is engaged in the business of designing a mobile unit that removes contaminants from sand. &nbsp;As of the date of this filing, we have not generated any revenues from our operations. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Our former parent company, AMS Heath Sciences, Inc., (&#147;AMS&#148;) was originally incorporated on May 22, 1987. &nbsp;On December 27, 2007, AMS filed a voluntary Petition for Relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Western District of Oklahoma, Case no. 07-14678. On July 15, 2008, the Bankruptcy Court issued an Order Confirming the First Amended Plan of Reorganization with an effective date of July 28, 2008. &nbsp;Pursuant to the Plan, on July 28, 2008, AMS implemented a 1/670 reverse stock split; issued 25,000,000 restricted shares of common stock to IACE Investments Two, Inc.; issued 600,000 restricted shares of common stock pursuant to a DIP loan; issued 50,000 shares of common stock to the Bankruptcy Trustee; and issued 100 shares of common stock to each class 6 and class 7 claimholder. &nbsp;The products and operations of AMS were sold to a secured creditor. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>On July 28, 2008, AMS completed a holding company reorganization that resulted in SA Recovery Corp., a wholly owned subsidiary of AMS, becoming the Holding Company with the exact same equity structure and shareholder base as the former AMS and AMS being merged into a wholly owned subsidiary of SA Recovery Corp., subsequently disposed of all ownership rights in the subsidiary and currently has no ownership or interest in any subsidiaries. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>On July 28, 2008, the Company purchased the <I>Sand Extraction Prototype I</I> &nbsp;from CGJ Holding, LLC, a Nevada Limited Liability Company (&#147;CGJ&#148;) for the sum of $15,000. The <I>Sand Extraction Prototype I</I> is an apparatus designed to remove contaminants from sand. Concurrently, the Company entered into a two (2) year License Agreement with CGJ for the sum of $10,000 &nbsp;that grants the Company the exclusive right to make, use, and ultimately sell commercial units capable of removing contaminants, including asphalt, from sand or rock composite. &nbsp;The License is renewable in the event that the Company is able to sell a commercial version of the <I>Sand Extraction Prototype I</I>. &nbsp;Pursuant to the material terms of the Licensing Agreement, the Company is to a royalty fee of 10% of the gross receipts from the sale any commercial unit capable of removing impurities from sand resulting from the use of the technology. &nbsp;The License Agreement expir
es on the 28<SUP>th</SUP> day of July, 2010, as extended to August, 2010 but may be extended for an additional two years if the Company sells two commercial units capable of filtering impurities from sand at a rate of at least two cubic-yards per hour and for a sale price of no less than $100,000 each. The Company is currently negotiating to extend the terms for an additional year. &nbsp;In the event of default, the License may be terminated. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>The <I>Sand Extraction Prototype </I>utilizes a fluidized bed, vibrating feeds in a counter-flow of wash water in the sand cleaning process. During that hour, the machine is capable of producing two cubic yard of cleaner sand. &nbsp;The completed product is intended to be a mobile unit outfitted onto a standard 50-foot trailer to send directly to a cleanup site. &nbsp;The prototype unit has been unable to sustain a production rate of four (4) cubic yards per hour. &nbsp;When funding becomes available, the Company intends to have the unit undergo an Engineer&#146;s study to determine the exact parameters. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:5.533px" align=justify>Our common stock is currently traded on the Pink Sheets under the symbol SARY. &nbsp;Prior to November 20, 2008, our common stock was traded on the Pink Sheets under the symbol AMSI. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>PLAN OF OPERATIONS</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>As of August 31, 2010, the Company is continuing to further develop a mobile unit that removes contaminants from sand. &nbsp;&nbsp;&nbsp;The company did not have any sales or leases of the unit during the period from inception (July 28, 2008) to August 31, 2010. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>LIQUIDITY AND CAPITAL RESOURCES</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Since Inception to August 31, 2010, we have funded most of our operational expenses from advances from our majority shareholder, IACE Investments Two, Inc. and from a convertible loan for $65,000 from an unrelated party. At August 31, 2010, SA Recovery Corp. had $566 remaining in cash, but we owed $99,208 in liabilities. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>As of August 31, 2010, our sole asset of a Prototype Unit that was purchased in 2008 for the sum of $15,000. &nbsp;The Company has been attempting to further develop the Prototype Unit into a Mobile Unit that can be outfitted onto a semi-truck trailer. &nbsp;On August 31, 2010, our liabilities were $99,208 which consisted of convertible notes and interest payable of $71,754, advanced from an affiliate of $19,763, &nbsp;accounts payable and accrued director fees of $7,691. &nbsp;We had a stockholders&#146; deficit of $98,642. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>For the six months ended August 31, 2010, we had total expenses $16,788 versus $41,743 for the same period ended August 31, 2009. &nbsp;The majority of the decrease from the previous year to the current is a reduction in interest expense &nbsp;resulting from the discount on our $65,000 note payable (See Note 4 to the financial statements) being totally expensed during the year ended February 28, 2010.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>The Company will require additional capital to fund operations of developing a Mobile Unit that is capable or removing contaminants from sand., unless operations generate sufficient revenues to support its business plan. &nbsp;The Company does not have any identified sources of capital at this time. &nbsp;Unless the Company finds needed capital, it will have to change its business objectives and operational plans and curtail some or all of its current operations. &nbsp;Because its capital needs compared to its available working capital and funding prospects, the Company has added a going concern note to the financial statements for the six months ended August 31, 2010. &nbsp;The notes indicates that without an increase in revenues sufficient to cover expenses or additional sources of capital being obtained, the Company may have to substantially curtail operations or terminate operations. &nbsp;In such event, stockholders may experience a loss of their investment, and the C
ompany may not be able to continue. </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_Toc272246405"></A><P style="margin:0px; font-family:Times New Roman Bold" align=justify><B>Item 3. Quantitative And Qualitative Disclosures About Market Risk</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Substantially all of our financial assets consist of bank deposits and we own no portfolio investments that would expose our Company to the type of risks described in Item 304 of Regulation S-K.</P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc272246406"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 4. &nbsp;Controls And Procedures </B></P>
<A NAME="eolPage12"></A><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; font-family:Times New Roman Bold"><B>Evaluation of Disclosure Controls and Procedures</B></P>
<P style="margin:0px" align=justify>We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon that evaluation, our Chief Executive Officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer, as appropriate to allow timely decisions regarding required disclosure.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify>Our management, including our principal executive officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our consolidated financial statements included in this annual report have been prepared in accordance with generally accepted accounting principles. Accordingl
y, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:6.667px; margin-bottom:6.667px" align=justify><I>Change In Internal Control Over Financial Reporting</I></P>
<P style="margin:0px" align=justify>There were no changes in our internal control over financial reporting that occurred during the six months ended August 31, 2010 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<A NAME="_Toc272246407"></A><P style="margin:0px; font-family:Times New Roman Bold" align=center><B>PART II - OTHER INFORMATION</B></P>
<P style="margin:0px" align=center><BR></P>
<A NAME="_Toc272246408"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 1. Legal Proceedings</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">SA Recovery is not currently a party to any legal proceeding. </P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc272246409"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 1A. &nbsp;Risk Factors</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">There have been no material changes in our risk factors since February 28, 2009. &nbsp;See risk factors, within our Form 10-K filed September 10, 2010. </P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc272246410"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>None</P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc272246411"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 3. Defaults Upon Senior Securities </B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">None </P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc272246412"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 4. Submission of Matters to a Vote of Securities Holders</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">None </P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc272246413"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 5. Other Information </B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">None </P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc272246414"></A><P style="margin:0px; font-family:Times New Roman Bold"><B>Item 6. Exhibits </B></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-96px" align=justify>Exhibit 31.1 </P>
<P style="margin:0px; padding-left:96px" align=justify>Certification of the Company's Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities and Exchange Act of 1934.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; text-indent:-96px" align=justify>Exhibit 32.1 </P>
<P style="margin:0px; padding-left:96px" align=justify>&nbsp;Certificate of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. </P>
<A NAME="FIS_SIGNATURES"></A><A NAME="eolPage14"></A><A NAME="_Toc272246415"></A><P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px" align=center>11</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Times New Roman Bold; page-break-before:always" align=center><B>SIGNATURES </B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">SA RECOVERY CORP.</P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=193></TD><TD width=276></TD><TD width=157></TD></TR>
<TR><TD width=193><P>&nbsp;</P></TD><TD width=276><P>&nbsp;</P></TD><TD width=157><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=193><P style="margin:0px">By: &nbsp;&nbsp;/s/ &nbsp;James Ditanna</P>
</TD><TD valign=top width=276><P style="margin:0px">Chief Executive Officer, Chief Financial Officer </P>
</TD><TD valign=top width=157><P style="margin:0px">&nbsp;Dated: &nbsp;September 15, 2010</P>
</TD></TR>
<TR><TD valign=top width=193><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James Ditanna </P>
</TD><TD valign=top width=276><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=157><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=193><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=276><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=157><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR></P>
<A NAME="eolPage15"></A><P style="margin:0px"><BR></P>
<A NAME="FIS_EXHIBIT_INDEX"></A><P style="margin:0px" align=center>INDEX TO EXHIBITS </P>
<P style="margin:0px" align=center><BR></P>
<A NAME="FIS_UNIDENTIFIED_TABLE_2"></A><P style="margin:0px">EXHIBIT </P>
<P style="margin:0px; text-indent:183px">DESCRIPTION </P>
<P style="margin:0px; text-indent:549px">STATUS </P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=27></TD><TD width=525></TD><TD width=84></TD></TR>
<TR><TD width=27><P>&nbsp;</P></TD><TD width=525><P>&nbsp;</P></TD><TD width=84><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=27><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=525><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=84><P style="margin-top:5.533px; margin-bottom:5.533px">&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=27><P style="margin:0px">31 </P>
</TD><TD valign=top width=525><P style="margin:0px">Certification pursuant to Section 301 of the Sarbanes-Oxley Act of 2002 </P>
</TD><TD valign=top width=84><P style="margin:0px">Filed herewith </P>
</TD></TR>
<TR><TD valign=top width=27><P style="margin:0px">32 </P>
</TD><TD valign=top width=525><P style="margin:0px">Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 </P>
</TD><TD valign=top width=84><P style="margin:0px">Filed herewith </P>
</TD></TR>
</TABLE>
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<P style="margin:0px" align=center>12</P>
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<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>f100915exhibit3110q08312010.htm
<DESCRIPTION>EXHIBIT 31 CERTIFICATION
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>EXHIBIT 31</TITLE>
<META NAME="author" CONTENT="John F. Heskett">
<META NAME="date" CONTENT="05/09/2009">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="margin:0px"><B>EXHIBIT 31</B></P>
<P style="margin:0px" align=center><B>CERTIFICATION OF CHIEF EXECUTIVE OFFICER</B></P>
<P style="margin:0px" align=center><B>AND CHIEF FINANCIAL OFFICER</B></P>
<P style="margin:0px" align=center><B>PURSUANT TO 18 U.S.C. SECTION 1350,</B></P>
<P style="margin:0px" align=center><B>AS ADOPTED PURSUANT TO SECTION 302 OF</B></P>
<P style="margin:0px" align=center><B>THE SARBANES-OXLEY ACT OF 2002</B></P>
<P style="margin:0px" align=center>&nbsp;</P>
<P style="margin:0px">I, James A. Ditanna, certify that:</P>
<P style="margin:0px">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=50></TD><TD width=670></TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">1.</P>
</TD><TD valign=top width=670><P style="margin:0px">I have reviewed this Form 10-Q of SA Recovery Corp.:</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">2.</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">3.</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods present in this report;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">4.</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>The small business issuer&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the small business issuer and have:</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">(a)</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">(b)</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding there liability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">(c)</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>Evaluated the effectiveness of the small business issuer&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">(d)</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;Disclosed in this report any change in the small business issuer&#146;s internal control over financing reporting that occurred during the small business issuer&#146;s most recent fiscal quarter (the small business issuer&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer&#146;s internal control over financial reporting; and</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">5.</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>The small business issuer&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer&#146;s auditors and the audit committee of the small business issuer&#146;s board of directors (or persons performing the equivalent functions):</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">(a)</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer&#146;s ability to record, process, summarize and report financial information; and</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">(b)</P>
</TD><TD valign=top width=670><P style="margin:0px" align=justify>Any fraud, whether or not material, that involved management or other employees who have a significant role in the small business issuer&#146;s internal control over financial reporting.</P>
</TD></TR>
<TR><TD valign=top width=50><P style="margin:0px">&nbsp;</P>
</TD><TD valign=top width=670><P style="margin:0px">&nbsp;</P>
</TD></TR>
<TR><TD valign=top colspan=2><P style="margin:0px">Date:&nbsp; September 15, 2010</P>
</TD></TR>
<TR><TD valign=top colspan=2><P style="margin:0px">&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top colspan=2><P style="margin:0px">/s/ &nbsp;&nbsp;James A. Ditanna</P>
</TD></TR>
<TR><TD valign=top colspan=2><P style="margin:0px">James A. Ditanna</P>
<P style="margin:0px">President, Chief Executive Officer, Chief Financial Officer, </P>
<P style="margin:0px">Principal Accounting Officer and Chairman of the Board of Directors</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>3
<FILENAME>f100915exhibit3210q08312010.htm
<DESCRIPTION>EXHIBIT 32 CERTIFICATION
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>EXHIBIT 32</TITLE>
<META NAME="author" CONTENT="John F. Heskett">
<META NAME="date" CONTENT="05/09/2009">
</HEAD>
<BODY style="line-height:12pt; font-family:Times New Roman; font-size:10pt; color:#000000">
<DIV style="width:720px"><P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><B>EXHIBIT 32</B></P>
<P style="margin:0px" align=center><B>CERTIFICATION OF</B></P>
<P style="margin:0px" align=center><B>CHIEF EXECUTIVE OFFICER</B></P>
<P style="margin:0px" align=center><B>AND CHIEF FINANCIAL OFFICER</B></P>
<P style="margin:0px" align=center><B>PURSUANT TO 18 U.S.C. SECTION 1350</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=justify>In connection with the accompanying quarterly report on Form 10-Q of SA Recovery Corp. for the period ending August 31, 2010, I, James A. Ditanna, President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer and Chairman of the Board of Directors of SA Recovery Corp. hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:</P>
<P style="margin:0px">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=40></TD><TD width=680></TD></TR>
<TR><TD valign=top width=40><P style="margin:0px">1.</P>
</TD><TD valign=top width=680><P style="margin:0px" align=justify>Such quarterly report on Form 10-Q for the period ending August 31, 2010, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</P>
</TD></TR>
<TR><TD valign=top colspan=2><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=40><P style="margin:0px">2.</P>
</TD><TD valign=top width=680><P style="margin:0px" align=justify>The information contained in such annual report on Form 10-Q for the quarter ending August 31, 2010, fairly represents in all material respects, the financial condition and results of operations of SA Recovery Corp.</P>
</TD></TR>
</TABLE>
<P style="margin:0px">&nbsp;</P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=720></TD></TR>
<TR><TD valign=top width=720><P style="margin:0px">Date:&nbsp; September 15, 2010</P>
</TD></TR>
<TR><TD valign=top width=720><P style="margin:0px">&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=720><P style="margin:0px"><B>SA Recovery Corp.</B></P>
</TD></TR>
<TR><TD valign=top width=720><P style="margin:0px">&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=720><P style="margin:0px">By: /s/ &nbsp;&nbsp;James A. Ditanna</P>
</TD></TR>
<TR><TD valign=top width=720><P style="margin:0px">James A. Ditanna</P>
<P style="margin:0px">President, Chief Executive Officer, Chief Financial Officer, </P>
<P style="margin:0px">Principal Accounting Officer and Chairman of the Board of Directors</P>
</TD></TR>
<TR><TD valign=top width=720><P style="margin:0px">&nbsp;&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
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