<SUBMISSION>
<ACCESSION-NUMBER>0000950134-07-012487
<TYPE>DEF 14C
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20070529
<FILING-DATE>20070529
<DATE-OF-FILING-DATE-CHANGE>20070529
<EFFECTIVENESS-DATE>20070529
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>APOLLO RESOURCES INTERNATIONAL INC
<CIK>0001048237
<ASSIGNED-SIC>1311
<IRS-NUMBER>841431425
<STATE-OF-INCORPORATION>UT
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14C
<ACT>34
<FILE-NUMBER>000-25873
<FILM-NUMBER>07883925
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3001 KNOX STREET, SUITE 407
<CITY>DALLAS
<STATE>TX
<ZIP>75205
<PHONE>214-389-2151
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3001 KNOX STREET, SUITE 407
<CITY>DALLAS
<STATE>TX
<ZIP>75205
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>POWERBALL INTERNATIONAL INC
<DATE-CHANGED>20000814
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>NATEX CORP
<DATE-CHANGED>19991029
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>NATEX CORP/UT
<DATE-CHANGED>19990409
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>DEF 14C
<SEQUENCE>1
<FILENAME>d47136def14c.htm
<DESCRIPTION>DEFINITIVE INFORMATION STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>def14c</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 14pt; margin-top: 6pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>SCHEDULE 14C INFORMATION</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt">Information Statement Pursuant to Section&nbsp;14(c) <BR>of the Securities
Exchange Act of 1934</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box:

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Preliminary Proxy Statement</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD><B>Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14c-</B><B>5(d)(2)</B><B>)</B></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#254;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Definitive Information Statement</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt">&nbsp;</DIV>

<DIV align="center">
<b>APOLLO RESOURCES INTERNATIONAL, INC.</b></DIV>
<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
(Name of Registrant as Specified In Its Charter)</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Payment of Filing Fee (Check the appropriate box):

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#254;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>No fee required.</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Fee computed on table below per Exchange Act Rules&nbsp;14c-5(g) and 0-11</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(1)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Title of each class of securities to which transaction applies:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(2)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Aggregate number of securities to which transaction applies:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(3)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Per unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule&nbsp;0-11 (set forth the amount on which the filing fee is calculated and state how it was
determined):</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(4)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Proposed maximum aggregate value of transaction:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(5)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Total fee paid:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Fee paid previously with preliminary materials.</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="1%" nowrap align="left" valign="top">
<FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2)
and identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of its
filing.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(1)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Amount Previously Paid:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(2)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Form, Schedule or Registration Statement No.:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(3)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Filing Party:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">(4)</TD>
<TD width="1%">&nbsp;</TD>
<TD>Date Filed:</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR>
<TD width="2%">&nbsp;</TD>
<TD width="3%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD style="font-size: 10pt"><DIV align="left">

</DIV></TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="2%" style="background: transparent">&nbsp;</TD>
<TD width="3%" nowrap align="left">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APOLLO RESOURCES INTERNATIONAL, INC.<BR>
3001 Knox Street, Suite&nbsp;403<BR>
Dallas, Texas 75205</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NOTICE OF ACTION BY WRITTEN CONSENT OF SHAREHOLDERS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Shareholder:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The purpose of this letter is to inform you that shareholders representing more than 50% of our
outstanding Common Stock have executed a Written Consent in Lieu of Special Meeting, approving an
reverse stock split of our Common Stock followed immediately by a forward stock split of our Common
Stock (the &#147;<I>Reverse/Forward Stock Split</I>&#148;). Under Utah law, our Articles of Incorporation, and
Bylaws, this consent will satisfy the shareholder approval requirement for the Reverse/Forward
Stock Split of our Common Stock.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This letter and the accompanying Information Statement are being furnished to the holders of record
of the Company&#146;s Common Stock as of April&nbsp;9, 2007. The Information Statement is being mailed to
shareholders on or about May&nbsp;29, 2007.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WE ARE NOT ASKING YOU FOR A PROXY AND<BR>
YOU ARE REQUESTED NOT TO SEND US A PROXY</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;16-10a-704 of the Utah Revised Business Corporation Act (the &#147;<I>Business Corporation Act</I>&#148;)
provides that the written consent of the holders of the outstanding shares of voting stock, having
not less than the minimum number of votes which would be necessary to authorize or take such action
at a meeting at which all shares entitled to vote thereon were present and voted, may be
substituted for such a meeting. Pursuant to Section&nbsp;16-10a-1003 of the Business Corporation Act, a
majority of the outstanding voting shares of stock entitled to vote thereon is required in order to
amend our Articles of Incorporation. In order to eliminate the costs and management time involved
in having a special meeting of shareholders and obtaining proxies, and in order to effect the
resolutions as early as possible in order to accomplish the purposes of the Company as hereafter
described, the Board of Directors of the Company voted to utilize, and did in fact obtain, the
written consent of the holders of a majority of the voting power of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to Section&nbsp;16-10a-704 of the Business Corporation Act, the Company is required to provide
prompt notice of the taking of the corporate action without a meeting of the shareholders who have
not consented in writing to such action. The Information Statement is intended to provide such
notice. No dissenters&#146; or appraisal rights under the Business Corporation Act are afforded to the
Company&#146;s shareholders as a result of the approval of the proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying Information Statement is for informational purposes only. It describes why an
increase in the authorized Common Stock capitalization limit was required, and contains other
disclosures required by law in connection with shareholder approval of the increase in the
authorized Common Stock capitalization limit of our Company. Please read the accompanying
Information Statement carefully.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>APOLLO RESOURCES INTERNATIONAL, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><IMG src="d47136d4713601.gif" alt="-s- Dennis G. McLaughlin, III"></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dennis G. McLaughlin, III</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Chief Executive Officer</I></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dallas, Texas<BR>
May&nbsp;29, 2007

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->2 of 34<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APOLLO RESOURCES INTERNATIONAL, INC.<BR>
3001 Knox Street, Suite&nbsp;403<BR>
Dallas, Texas 75205<BR>
(214)&nbsp;389-9800</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NOTICE OF ACTION BY WRITTEN CONSENT OF SHAREHOLDERS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Information Statement is being furnished to you, as a record holder of common stock, par value
$0.001 (&#147;<I>Common Stock</I>&#148;) of Apollo Resources, Inc., a Utah corporation (the &#147;<I>Company</I>&#148; or &#147;<I>we</I>&#148;), on
May&nbsp;18, 2007, to inform you of (i)&nbsp;the approval on March&nbsp;9, 2007 and April&nbsp;4, 2007 of consent
resolutions by our Board of Directors (the &#147;<I>Board</I>&#148;) proposing amendments to our Restated Articles
of Incorporation (the &#147;<I>Articles of Incorporation</I>&#148;) to effect a reverse stock split of our Common
Stock followed immediately by a forward stock split of our Common Stock (the &#147;<I>Reverse/Forward Stock
Split</I>&#148;) and (ii)&nbsp;our receipt of written consents dated April&nbsp;23, 2007, approving such amendments by
stockholders entitled to vote on the matter as of April&nbsp;9, 2007 (the &#147;<I>Record Date</I>&#148;). As of the
Record Date, there were 376,738,622 shares of Common Stock issued and outstanding each entitled to
one vote per share. A majority of the votes entitled to be cast by holders of the issued and
outstanding shares of Common Stock was required to approve the Reverse/Forward Stock Split.
Stockholders holding 197,893,644 shares of our issued and outstanding Common Stock, or 52.5% of the
total Common Stock class vote, voted in favor of the Reverse/Forward Stock Split and the Articles
of Amendment (hereinafter defined). The resolutions adopted by the Board and the written consents
of the stockholders give us the authority to file Articles of Amendment to the Articles of
Incorporation (the &#147;<I>Articles of Amendment</I>&#148;). The Articles of Amendment shall be filed with the Utah
Division of Corporations and Commercial Code on or after the expiration of 20 calendar days
following the date this Information Statement is first mailed to our stockholders and will become
effective immediately thereafter (the &#147;<I>Effective Date</I>&#148;). As a result of the Reverse/Forward Stock
Split, as described in more detail below, stockholders owning fewer than 65,000 shares of our
Common Stock will be paid consideration of $0.035 per share for all shares owned and will no longer
be stockholders in the Company, and the holdings of all other stockholders will remain unchanged.
The Reverse/Forward Stock Split was approved by the Board upon evaluating the feasibility and
fairness from a financial point of view to the unaffiliated stockholders of the Company of a going
private transaction and to recommend a price to effect that transaction that is fair to those
stockholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Although the Reverse/Forward Stock Split has been approved by the requisite number of stockholders,
the Board reserves the right, in its discretion, to abandon the Reverse/Forward Stock Split prior
to the proposed Effective Date if it determines that abandoning the Reverse/Forward Stock Split is
in the best interests of the Company and its stockholders. This could occur because stockholders
may purchase, sell or otherwise transfer shares of our Common Stock after the date of the mailing
of this Information Statement, and the possible number of stockholders who would receive cash
payments in connection with the Reverse/Forward Stock Split and the number of shares which we would
purchase from such stockholders may fluctuate between the date of the mailing of this Information
Statement and the date immediately preceding the Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The intended effect of the Reverse/Forward Stock Split is to reduce the number of record holders of
our Common Stock to fewer than 300 so that we will be eligible to terminate the public registration
of our Common Stock under the Securities Exchange Act of 1934, as amended (the &#147;<I>Exchange Act</I>&#148;).
Provided that the Reverse/Forward Stock Split has the intended effect, we intend to immediately
file a Certificate and Notice of Termination of Registration under Section 12(g) of the Exchange
Act on Form&nbsp;15 to terminate the registration of our Common Stock. Upon filing the Form&nbsp;15, our
obligation to file periodic reports with the Securities and Exchange Commission (the &#147;<I>Commission</I>&#148;)
such as Forms 10-QSB, 10-KSB and 8-K will be immediately suspended and we will no longer be subject
to the Commission&#146;s proxy rules. However, we will continue to be subject to the general anti-fraud
provisions of federal and applicable state securities laws. Deregistration of our Common Stock will
be effective 90&nbsp;days after the filing of the Form&nbsp;15.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>WE ARE NOT ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US A PROXY.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Information Statement is dated May&nbsp;18, 2007 and is first being mailed to our stockholders on
or about May&nbsp;29, 2007.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION (i)&nbsp;HAS APPROVED
OR DISAPPROVED OF THIS TRANSACTION; (ii)&nbsp;PASSED UPON THE MERITS OR FAIRNESS OF THE TRANSACTION; OR
(iii)&nbsp;PASSED UPON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE IN THIS INFORMATION STATEMENT. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All necessary corporate approvals in connection with the Reverse/Forward Stock Split have been
obtained. This Information Statement is being furnished to all of our stockholders pursuant to
Section 14(c) of the Exchange Act, the rules promulgated thereunder and the provisions of the Utah
Revised Business Corporation Act (the &#147;<I>Business Corporation Act</I>&#148;), solely for the purpose of
informing stockholders of the Reverse/Forward Stock Split before it takes effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to Section&nbsp;16-10a-704 of the Business Corporation Act, the Company is required to provide
prompt notice of the taking of the corporate action without a meeting of the shareholders who have
not consented in writing to such action. The Information Statement is intended to provide such
notice. No dissenters&#146; or appraisal rights under the Business Corporation Act are afforded to the
Company&#146;s shareholders as a result of the approval of the proposal.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reverse/Forward Stock Split is comprised first of a reverse stock split (the &#147;<I>Reverse Split</I>&#148;)
pursuant to which each 65,000 shares of Common Stock registered in the name of a stockholder
immediately prior to the effective time of the Reverse Split will be converted into one share of
Common Stock, followed immediately thereafter by a forward stock split (the &#147;<I>Forward Split</I>&#148;),
pursuant to which each share of Common Stock outstanding upon consummation of the Reverse Split
will be converted into 65,000 shares of Common Stock. Interests in fractional shares owned by
stockholders owning fewer than 65,000 shares of Common Stock, whose shares of Common Stock would be
converted into less than one share in the Reverse Split, will instead be converted solely into the
right to receive a cash payment of $0.035 per share owned by such stockholders prior to the Reverse
Split. However, if a registered stockholder holds 65,000 or more shares of Common Stock in his or
her account immediately prior to the effective time of the Reverse Split, any fractional share in
such account resulting from the Reverse Split will not be cashed out and the total number of shares
held by such holder will not change as a result of the Reverse/Forward Stock Split.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The determination of the 1 for 65,000 Reverse Split ratio was based on the Company&#146;s intention to
reduce the number of record stockholders remaining after the Reverse Split to fewer than 300 so
that the Company could terminate the registration of its Common Stock with the Commission. The
resulting estimated cost to cash out these shares was determined to be reasonable in light of the
expected benefits from the Reverse/Forward Stock Split.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We intend for the Reverse/Forward Stock Split to treat stockholders holding Common Stock in street
name through a nominee (such as a bank or broker) in the same manner as stockholders whose shares
are registered in their names, and nominees will be instructed to effect the Reverse/Forward Stock
Split for their beneficial holders. However, nominees may have different procedures, and
stockholders holding shares in street name should contact their nominees. A stockholder holding
fewer than 65,000 shares of Common Stock in street name who wants to receive cash in the
Reverse/Forward Stock Split should instruct his, her or its nominee to transfer such stockholder&#146;s
shares into a record account in such stockholder&#146;s name by June&nbsp;15, 2007 to ensure that such
stockholder will be considered a holder of record prior to the Effective Date of the
Reverse/Forward Stock Split. A stockholder holding fewer than 65,000 shares of Common Stock in
street name through a nominee who does not transfer shares into a record account by June&nbsp;15, 2007
may not have his, her or its shares cashed out in connection with the Reverse/Forward Stock Split.
For instance, a stockholder&#146;s shares may not be cashed out if such stockholder&#146;s nominee is a
record holder of an aggregate of 65,000 or more shares of Common Stock, holds shares for multiple
stockholders in street name and does not provide such beneficial ownership positions by June&nbsp;15,
2007 to Colonial Stock Transfer Company, Inc., our exchange agent (the &#147;Exchange Agent&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As soon as practicable after the Effective Date, we will send all stockholders with stock
certificates representing the right to receive cash payments a letter of transmittal to be used to
transmit Common Stock certificates to the Exchange Agent. Upon proper completion and execution of
the letter of transmittal, and the return of the letter of transmittal and accompanying stock
certificate(s) to the Exchange Agent, each stockholder entitled to receive payment will receive a
check for such stockholder&#146;s stock. Stockholders should allow for approximately five (5)&nbsp;business
days after mailing for the Exchange Agent to receive the letter of transmittal and accompanying
stock certificate. The Exchange Agent will send a check for such stockholder&#146;s stock within
approximately five (5)&nbsp;business days of receiving such letter of transmittal and accompanying stock
certificate. In the event we are unable to locate certain stockholders or if a stockholder fails
properly to complete, execute and return the letter of
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">transmittal and accompanying stock certificate to the Exchange Agent, any funds payable to such holders pursuant to the
Reverse/Forward Stock Split will be held in escrow until a proper claim is made, subject to
applicable abandoned property laws.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101"><B>ForwardLooking Statements</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102"><B>Summary of Terms of Reverse/Forward Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>8</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103"><B>Questions and Answers about the Reverse/Forward Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>9</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104"><B>Special Factors</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#105">a) Reasons for and Purposes of the Reverse/Forward Stock Split</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">b) Strategic Alternatives Considered</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#107">c) Background of the Reverse/Forward Stock Split</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">d) Effects of the Reverse/Forward Stock Split</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#109">e) Potential Disadvantages of the Reverse/Forward Stock Split to Stockholders; Accretion in
Ownership and Control of Certain Stockholders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#110">f) Effect of the Reverse/Forward Stock Split on Option Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#111">g) Effect of the Reverse/Forward Stock Split on Warrants Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#112">h) Effect of the Reverse/Forward Stock Split on Holders of Outstanding Convertible
Debentures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#113">i) Financial Effect of the Reverse/Forward Stock Split</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#114">j) Federal Income Tax Consequences of the Reverse/Forward Stock Split</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#115"><B>Structure of the Reverse/Forward Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>21</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#116"><B>Fairness of the Reverse/Forward Stock Split to Stockholders</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>22</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#117">a) Reports, Opinions or Appraisals &#091;Remove section if inapplicable&#093;</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#118">b) Procedural Fairness to All Stockholders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#119">c) Termination of Exchange Act Registration</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#120"><B>Description of the Reverse/Forward Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>24</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#121">a) Amendments of Articles of Incorporation to Effect the Reverse/Forward Stock Split</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#122">b) Regulatory Approvals</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#123">c) Vote Required</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#124">d) Holders as of Effective Date; Net Effect After Reverse/Forward Stock Split</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#125">e) Exchange of Certificates for Cash Payment or Shares</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#126">f) Appraisal Rights</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#127"><B>Financing of the Reverse/Forward Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#128"><B>Costs of the Reverse/Forward Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>25</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#129"><B>Conduct of the Company&#146;s Business After the Reverse/Forward Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#130"><B>Recommendation of the Board; Fairness of the Reverse/Forward Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>26</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#131">g) Reservation of Rights</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#132"><B>Financial Statements</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#133">h) Financial Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#134"><B>Trading Market and Price of Our Common Stock and Dividend Policy</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>27</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#135"><B>Security Ownership of Certain Beneficial Owners and Management</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>28</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#136"><B>Interests of Certain Persons</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>28</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#137"><B>Change of Control</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#138"><B>Incorporation of Certain Documents by Reference</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#139"><B>Available Information</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#140"><B>ANNEX A-1 &#150; Form of Certificate of Amendment of Certificate of Incorporation to Effect Reverse
Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6 of 34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#141"><B>ANNEX A-2- Form of Certificate of Amendment of Certificate of Incorporation to Effect Forward
Stock Split</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#142"><B>ANNEX B- Annual Report on Form&nbsp;10KSB for the Year Ended December&nbsp;31, 2005</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#143"><B>ANNEX C- Quarterly Report on Form&nbsp;10QSB for the Quarterly Period Ended September&nbsp;30, 2006</B></A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>1</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7 of 34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Forward-Looking Statements</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Information Statement contains forward-looking statements. The words &#147;believe,&#148; &#147;expect,&#148;
&#147;anticipate,&#148; &#147;estimate,&#148; &#147;project&#148; and similar expressions identify forward-looking statements,
which speak only as of the date of this Information Statement. The Company does not assume any
obligation to update or correct forward-looking statements to reflect subsequent events or actual
results. Forward-looking statements are inherently subject to risks and uncertainties, some of
which cannot be predicted or quantified. Future events and actual results could differ materially
from those made in, contemplated by, or underlying the forward-looking statements. For these
reasons, you should not place undo reliance on any forward-looking statements included in this
Information Statement.
</DIV>

<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Summary of Terms of Reverse/Forward Stock Split</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following is a summary of the material terms of the proposed Articles of Amendment, the
Reverse/Forward Stock Split and the other transactions contemplated in connection with the
Reverse/Forward Stock Split.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Information Statement contains a detailed description of the terms of the proposed Articles of
Amendment and the Reverse/Forward Stock Split. We encourage you to read the entire Information
Statement and each of the documents that we have attached as an Annex to this Information Statement
carefully.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board, including all of the non-employee directors, has authorized, and the
Company&#146;s stockholders have approved, a 1-for-65,000 Reverse Split of our Common Stock,
followed immediately thereafter by a 65,000-for-1 Forward Split of our Common Stock. See
also the information under the captions &#147;Structure of the Reverse/Forward Stock Split,&#148;
and &#147;Recommendation of the Board; Fairness of Reverse/Forward Stock Split&#148; in this
Information Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board, including all of the non-employee directors, has determined that the
Reverse/Forward Stock Split is fair to and in the best interest of all of our
unaffiliated stockholders, including those stockholders owning shares being cashed out
pursuant to the Reverse/Forward Stock Split and those who will retain an equity interest
in our Company subsequent to the consummation of the Reverse/Forward Stock Split. See
also the information under the caption &#147;Recommendation of the Board; Fairness of the
Reverse/Forward Stock Split&#148; in this Information Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A majority of the votes entitled to be cast by holders of the issued and outstanding shares
of Common Stock was required to approve the Reverse/Forward Stock Split.
Stockholders holding 197,893,644 shares of our issued and outstanding Common Stock, or
52.5% of the total Common Stock, was voted in favor of the Reverse/Forward Stock Split
and the Articles of Amendment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When the Reverse/Forward Stock Split becomes effective, if you hold at least 65,000
shares of Common Stock, the number of shares of Common Stock that you hold will not
change, and you will not be entitled to receive any cash payments. You will not need to
take any action, including exchanging or returning any existing stock certificates,
which will continue to evidence ownership of the same number of shares as set forth
currently on the face of the certificates. See also the information under the caption
&#147;Description of the Reverse/Forward Stock Split&#148; in this Information Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When the Reverse/Forward Stock Split becomes effective, if you hold fewer than 65,000
shares of Common Stock, you will receive a cash payment of $0.035 per pre-split share.
As soon as practicable after the Effective Date, you will be notified and asked to
surrender your stock certificates to the Exchange Agent. You should allow for
approximately five (5)&nbsp;business days after mailing for the Exchange Agent to receive the
stock certificates surrendered. Upon receipt of a properly completed letter of
transmittal and your stock certificates by the Exchange Agent, you will receive your
cash payment within approximately five (5)&nbsp;business days. See also the information under
the caption &#147;Description of the Reverse/Forward Stock Split&#151;Exchange of Certificates for
Cash Payment or Shares&#148; in this Information Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Reverse/Forward Stock Split is not expected to affect holders of warrants.
See also the information under the caption &#147;Special Factors&#151;Effect of the
Reverse/Forward Stock Split on Option Holders,&#148; &#147;Special Factors&#151;Effect of the
Reverse/Forward Stock Split on Warrant Holders&#148; and &#147;Special Factors&#151;Effect of the
Reverse/Forward Stock Split on Holders of Outstanding Convertible Debentures&#148; in this
Information Statement.</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->8 of 34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Reverse/Forward Stock Split is not expected to affect our current business plan
or operations, except for the anticipated cost and management time savings associated
with termination of our obligations as a public reporting company. See also the
information under the captions &#147;Special Factors&#151;Effects of the Reverse/Forward Stock
Split, &#147;Special Factors&#151;Financial Effect of the Reverse/Forward Stock Split&#148; and
&#147;Conduct of the Company&#146;s Business After the Reverse/Forward Stock Split&#148; in this
Information Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>When the Reverse/Forward Stock Split becomes effective, we intend to terminate the
registration of our Common Stock with the Commission. Upon termination of our
registration, we will no longer file periodic reports with the Commission, including,
among other things, Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and
Current Reports on Form 8-K, and we will not be subject to the Commission&#146;s proxy rules.
See also the information under the captions &#147;Special Factors&#151;Reasons for and Purposes of
the Reverse/Forward Stock Split&#148; and &#147;Recommendation of the Board; Fairness of
Reverse/Forward Stock Split&#148; in this Information Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Board of Directors has made determinations as to the fairness from a financial
point of view of the consideration to be paid to the holders of shares of the Company&#146;s
Common Stock who will receive cash payments for their pre-split shares and will not be
continuing stockholders of the Company. See also the information under the caption
&#147;Fairness of the Reverse/Forward Stock Split to Stockholders&#148; in this Information
Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For those stockholders who receive a cash payment in the Reverse/Forward Stock Split,
your receipt of cash will be a taxable transaction for United States federal income tax
purposes and may be such for state, local, foreign and other tax purposes as well. For
those stockholders that retain Common Stock immediately following the Reverse/Forward
Stock Split, you will not recognize any gain or loss for federal income tax purposes.
See also the information under the caption &#147;Special Factors&#151;Federal Income Tax
Consequences of the Reverse/Forward Stock Split&#148; in this Information Statement. You are
urged to consult with your own tax advisor regarding the tax consequences of the
Reverse/Forward Stock Split in light of your own particular circumstances.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You are not entitled to dissenters rights under either our governance documents or
the Utah Business Corporation Act. See also the information under the caption
&#147;Description of the Reverse/Forward Stock Split&#151;Dissenter Rights&#148; in this Information
Statement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We currently have the financial resources to complete the Reverse/Forward Stock
Split. See also the information under the caption &#147;Financing of the Reverse/Forward
Stock Split&#148; in this Information Statement.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Questions and Answers about the Reverse/Forward Stock Split</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following questions and answers briefly address some commonly asked questions about the
Reverse/Forward Stock Split that are not addressed in the &#147;Summary of Terms of Reverse/Forward
Stock Split.&#148; They may not include all the information that is important to you. We urge you to
read carefully this entire Information Statement, including our financial statements and the
Annexes hereto.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Q: <B>What are some of the advantages of the Reverse/Forward Stock Split?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A: Our Board believes that the Reverse/Forward Stock Split may have, among others, the
following advantages:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will terminate the registration of our Common Stock under the Exchange Act,
which will eliminate the significant tangible and intangible costs of our being a
public company, with tangible cost savings of an estimated $500,000 before taxes
annually, based on our historical costs. In addition, as a result of the enactment of
the Sarbanes-Oxley Act (the &#147;<I>Sarbanes-Oxley Act</I>&#148;) signed on June&nbsp;30, 2002, the costs of
being a public company have increased, and are expected to continue to increase
significantly. We estimate one-time cost savings of at least $750,000 and future annual
cost savings of approximately $1,000,000 because we would not incur external auditor
fees, consulting and legal fees, in preparation for Section&nbsp;404 of the Sarbanes-Oxley
Act and other expenses for compliance, planning,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->9 of 34<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>documentation and testing, in
preparation for the internal controls audit requirements imposed by Section&nbsp;404, or the
retention of additional personnel to handle the increased obligations of Section&nbsp;404;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>small stockholders will not be obligated to pay any commissions in connection
with the Reverse/Forward Stock Split, however if you hold your shares through a nominee
your nominee may charge you a fee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we believe we will be able to achieve overhead reductions associated with the
Reverse/Forward Stock Split without negatively affecting our business operations. Since
we will no longer have to comply with the public reporting and other requirements of
the Exchange Act and the Sarbanes-Oxley Act we will no longer need to incur certain
expenses relating to printing and mailing stockholder documents, EDGAR filing fees and
personnel time required to comply with the Exchange Act and the Sarbanes-Oxley Act. In
addition, we estimate that we will be able to achieve future annual cost savings of an
estimated $500,000 which we would have had to incur to retain additional personnel to
handle the increased obligations due to Section&nbsp;404 of the Sarbanes-Oxley Act;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we will be able to provide complete liquidity for the relatively large number
of unaffiliated record stockholders holding fewer than 65,000 shares where there has
been limited liquidity available through the public market, and will be able to do so
through a transaction in which such unaffiliated stockholders generally may be eligible
to receive capital gains tax treatment for their proceeds; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may benefit from not having to reveal detailed financial and operational
information to the public and our competitors.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">See also information under the caption &#147;Special Factors&#151;Reasons for and Purposes of the
Reverse/Forward Stock Split&#148; in this Information Statement.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Q: <B>What are some of the disadvantages of the Reverse/Forward Stock Split?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A: Our Board believes that the Reverse/Forward Stock Split may have, among others, the
following disadvantages:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stockholders owning fewer than 65,000 shares of our Common Stock will not have
an opportunity to liquidate their shares at a time and for a price of their choosing;
instead, such stockholders will be cashed out, will no longer be stockholders of our
Company and will not have the opportunity to participate in or benefit from any future
potential appreciation in our value;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stockholders holding our Common Stock following the Reverse/Forward Stock Split
will no longer have readily available to them all of the legally mandated information
regarding our operations and financial results that is currently available in our
filings with the Commission;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it will be more difficult for us to access the public capital markets;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the termination of our Exchange Act registration will make many of the
provisions of the Exchange Act, such as certain short-swing profit provisions of
Section&nbsp;16, the proxy solicitation rules under Section&nbsp;14 and the stock ownership
reporting rules under Section&nbsp;13, no longer applicable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Sarbanes-Oxley Act which imposed many additional rules and regulations on
public companies that were designed to protect investors will no longer apply to us;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>stockholders will no longer have certain other rights and protections that the
federal securities laws give to stockholders of public companies.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">See also information under the captions &#147;Special Factors&#151;Effects of the Reverse/Forward
Stock Split,&#148; &#147;Special Factors&#151;Financial Effect of the Reverse/Forward Stock Split&#148; and
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->10 of 34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&#147;Recommendation of the Board; Fairness of the Reverse/Forward Stock Split&#148; in this
Information Statement.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Q: <B>What are some of the reasons for going private now?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A: Our Board believes that any material benefit from our public company status is
outweighed by the significant and increasing costs of being a public company.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Do not have significant staff to manage the aspects of being public</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="10%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Do not have the financial wherewithal to manage the implementation of
Sarbanes-Oxley</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">See also information under the caption &#147;Special Factors&#151;Reasons for and Purposes of the
Reverse/Forward Stock Split&#148; in this Information Statement.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Q: <B>What are some of the factors that the Board considered in approving the Reverse/Forward
Stock Split?</B></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">A:</TD>
    <TD width="92%">The Board considered several factors in approving the Reverse/Forward Stock Split. Importantly, the Board considered the
relative advantages and disadvantages discussed above and under the captions &#147;Special Factors&#151;Reasons for and
Purposes of the Reverse/Forward Stock Split,&#148; &#147;Special Factors&#151;Strategic Alternatives Considered,
&#147;Special Factors&#151;Background of the Reverse/Forward Stock Split&#148; and &#147;Special Factors&#151;Effects of the
Reverse/Forward Stock Split&#148; in this Information Statement. The Board also considered numerous other factors, including:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the financial presentations and analyses of management regarding the
Reverse/Forward Stock Split, including the valuation of the Company and determination
of the range of fair prices per pre-split share;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Board&#146;s discussions and conclusions about the fairness of the price of
$0.035 per pre-split share to be paid following the Reverse/Forward Stock Split to our
stockholders owning fewer than 65,000 shares of our Common Stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the recommendation of the C.E.O. to the Board regarding the fairness of the
Reverse/Forward Split to our stockholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the opinion that, as of March&nbsp;9, 2007 and April&nbsp;4, 2007 (the date of the
approval of the Articles of Amendment by the Board), consideration of $0.035 per
pre-split share is fair, from a financial point of view, to holders of shares of the
Company&#146;s Common Stock who will receive cash payments for their pre-split shares and
will not be continuing stockholders of the Company; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the projected tangible and intangible cost savings to us by terminating our
status as a public company.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">See also information under the captions &#147;Fairness of the Reverse/Forward Stock
Split&#151;Opinion of Imperial Capital&#148; and &#147;Recommendation of the Board; Fairness of the
Reverse/Forward Stock Split&#148; in this Information Statement.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">Q:</TD>
    <TD width="92%"><B>What are the interests of directors and executive officers in the Reverse/Forward Stock
Split?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">A:</TD>
    <TD width="92%">As a result of the Reverse/Forward Stock Split, we believe that our directors and
executive officers, collectively, will increase their direct beneficial ownership of
our Common Stock from approximately 43.2% to 53.0%. The number of shares held by our
directors and officers will remain substantially unchanged as a result of the
Reverse/Forward Stock Split.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">See also information under the captions &#147;Special Factors&#151;Effects of the Reverse/Forward
Stock Split&#148; and &#147;Special Factors&#151;Potential Disadvantages of the Reverse/Forward Stock
Split to Stockholders; Accretion in Ownership and Control of Certain Stockholders&#148; in
this Information Statement.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">Q:</TD>
    <TD width="92%"><B>What is the total cost of the Reverse/Forward Stock Split to the Company?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">A:</TD>
    <TD width="92%">We estimate that we will pay up to approximately $2,179,636 to cash out fractional shares.
In addition, we anticipate incurring approximately $500,000 in advisory, legal,
financial, accounting, printing and other fees and costs in connection with the
Reverse/Forward Stock Split.</TD></TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">See also information under the captions &#147;Special Factors&#151;Effects of the Reverse/Forward
Stock Split,&#148; &#147;Special Factors&#151;Financial Effect of the Reverse/Forward Stock Split&#148; and
&#147;Costs of the Reverse/Forward Stock Split&#148; in this Information Statement.</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">Q:</TD>
    <TD width="92%"><B>At what prices has our stock traded recently?</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">A:</TD>
    <TD width="92%">Our Common Stock was formerly quoted on the NASD&#146;s Over the Counter Bulletin Board
(&#147;OTCBB&#148;) under the ticker symbol &#147;AOOR.OB.&#148; On or about April&nbsp;23, 2007, the NASD
notified the Company that the Company&#146;s securities were to be removed from quotation on
the OTCBB effective at the open of business on April&nbsp;27, 2007. As such, the Company
now trades on as an OTC &#147;Pink Sheet&#148; security under the ticker symbol &#147;AOORE.OB and
shall be trading under the symbol &#147;AOOR.PK.&#148; We consider our common stock to be thinly
traded and any reported bid or sale prices may not be a true market-based valuation of
the common stock. On May&nbsp;17, 2007, the last practicable trading day prior to the date
of this Information Statement, our Common Stock&#146;s closing price was $0.034..</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">See also information under the caption &#147;Trading Market and Price of our Common Stock
and Dividend Policy&#148; in this Information Statement.
</DIV>
<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Special Factors</B>
</DIV>

<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>a) Reasons for and Purposes of the Reverse/Forward Stock Split</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The primary purpose of the Reverse/Forward Stock Split is to reduce the number of record
holders of our Common Stock to fewer than 300, so that we can terminate the registration of our
Common Stock under Section 12(g) of the Exchange Act. The Reverse/Forward Stock Split is
expected to result in the elimination of the expenses related to our disclosure, compliance and
reporting requirements under the Exchange Act, to decrease the management resources deployed to
comply with the federal securities laws and to decrease the administrative expense we incur in
servicing a large number of record stockholders who own relatively small numbers of our shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Board believes that any material benefit derived from continued registration under the
Exchange Act is outweighed by the significant and increasing cost. The Company&#146;s historical
costs associated with being a public company are approximately $500,000 annually, before taxes.
We expect these costs to increase since we will be required to comply with Section&nbsp;404 of the
Sarbanes-Oxley Act beginning in our fiscal year ending December&nbsp;31, 2007. We estimate one-time
expenses of at least $50,000 and future annual expenses of approximately $1,000,000 relating to
compliance with Section&nbsp;404. We believe we have been unable to provide increased value to our
stockholders as a public company, and particularly as a result of the increased cost and
tangible and intangible burdens associated with being a public company following the passage of
the Sarbanes-Oxley Act, we do not believe that continuing our public company status is in the
best interest of the Company or our stockholders. The corporate governance, reporting, internal
control documentation and attestation procedures, and disclosure compliance obligations
required by the Sarbanes-Oxley Act are disproportionately more burdensome to us based on our
size, financial resources, human capital, cost of remaining a public company, small number and
percentage of shares that are held by the public, absence of sustained interest from public
investors and securities research analysts and inability to access the capital markets,
compared to a larger public company. The expenses involved for compliance with the
Sarbanes-Oxley Act are a disproportionately larger percentage of our revenues compared to that
of a larger public company. Compliance under the Sarbanes-Oxley Act means significant increases
in annual accounting, legal
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">and insurance costs simply for being a reporting company and significantly effects the time
management can devote to operating our business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">Our Board believes that our status as a public company places an unnecessary financial,
management and competitive burden on us. That burden has only risen in recent years, since the
enactment of the Sarbanes-Oxley Act. As a public company, we incur direct costs associated with
compliance with the Commission&#146;s filing and reporting requirements imposed on public companies.
To comply with the public company requirements, we incur an estimated $500,000 annually before
taxes in related expenses, based on our historical costs, and an estimated $1,000,000 of future
annual expenses for compliance with Section&nbsp;404 as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Estimated Future Annual Savings to be Realized if the Company Goes Private</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><I>Historical Costs</I>:</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><I>Costs</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Audit Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stockholder Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Legal Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:45px; text-indent:-15px"><B>Total Historical Costs</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>500,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Additional Expected Annual Costs:</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;404 Audit Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">New Personnel Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">100,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional Consulting and Legal Fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="right"><DIV style="margin-left:60px; text-indent:-15px"><B>Total Additional Costs</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>500,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right"><DIV style="margin-left:15px; text-indent:-15px"><B>Total Expected Estimated Annual Cost Savings</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>$</B></TD>
    <TD align="right"><B>1,000,000</B></TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">The dollar amounts set forth above are only estimates. The actual savings that we may
realize may be higher or lower than the estimates set forth above. In light of our current
size, opportunities and resources, the Board does not believe that such costs are justified.
Therefore, the Board believes that it is in our best interests and the best interests of our
stockholders to eliminate the administrative, financial and additional accounting burdens
associated with being a public company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">The substantial costs and burdens imposed on us as a result of being public have
significantly increased since the passage of the Sarbanes-Oxley Act and the implementation of
the regulatory reforms adopted by the Commission. The overall management time expended on the
preparation and review of our public filings has increased substantially in order for our Chief
Executive Officer and Chief Financial Officer to certify the financial statements in each of
our public filings as required under the Sarbanes-Oxley Act. Since we have relatively few
management personnel, these indirect costs are significant relative to our overall expenses
and, although there will be no direct monetary savings with respect to these indirect costs
when the Reverse/Forward Stock Split is effected and we cease filing periodic reports with the
Commission, the time currently devoted by management to our public company reporting and
compliance obligations could be devoted to other purposes, such as operational and strategic
projects to promote and improve our business and the interests of our stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">In addition, beginning in our fiscal year ending December&nbsp;31, 2007, as a public company we
would need to comply with the requirements of Section&nbsp;404 of the Sarbanes-Oxley Act. Under
Section&nbsp;404, we would be required to include a report of management of the Company&#146;s internal
control over financial reporting and, beginning in our fiscal year ending December&nbsp;31, 2008, an
attestation report of the Company&#146;s independent registered public accounting firm on
management&#146;s assessment of the Company&#146;s internal control over financial reporting. Our auditor
estimates that adding Section&nbsp;404 attestation procedures to the annual audit process would
cause our annual audit costs to increase approximately $200,000 per year. We also expect that
we would incur an additional expense of approximately 200,000 per year in consulting and legal
fees due to issues relating to Section&nbsp;404. We would also incur additional expenses of
approximately $100,000 annually, to retain additional personnel to handle the increased
obligations as a result of Section&nbsp;404. We also estimate that we will have to incur a one-time
expense of approximately $50,000 to $100,000 for documentation and implementation of internal
systems relating to preparation for compliance with Section&nbsp;404, an additional one-time expense
of approximately $10,000 to $20,000 for auditor expenses, and an additional one-time expense of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">approximately $10,000 to $20,000 for consulting and legal fees. We would start incurring these
expenses in advance of the end of our 2007 fiscal year as we start implementing the procedures
to comply with Section&nbsp;404. We avoid these expenses by ceasing to be a public company and going
private now.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">See also information under the caption &#147;Special Factors&#151;Strategic Alternatives Considered&#148;
in this Information Statement for an additional description of the reasons why our Board
approved the Reverse/Forward Stock Split instead of another alternative transaction structure.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Reverse/Forward Stock Split will terminate the equity interests in the Company of
approximately 4,431 record holders of Common Stock; as of April&nbsp;4, 2007, each of these record
holders held fewer than 65,000 shares of Common Stock. We intend for the Reverse/Forward Stock
Split to treat stockholders holding Common Stock in street name through a nominee (such as a
bank or broker) in the same manner as record holders. Nominees will be instructed to effect the
Reverse/Forward Stock Split for their beneficial holders. However, nominees may have different
procedures and stockholders holding shares in street name are urged to contact their nominees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Reverse/Forward Stock Split and the deregistration of our Common Stock is expected to
relieve us of the administrative burden, cost and other disadvantages associated with filing
reports and otherwise complying with the requirements of registration under the federal
securities laws. Additionally, the Reverse/Forward Stock Split will provide small stockholders
an efficient mechanism to liquidate their equity interest at a fair price for their shares and
without brokers&#146; commission.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Based on information available to us, we presently have an aggregate of approximately
4,679 record holders and beneficial holders of our Common Stock (collectively, &#147;<I>holders</I>&#148;), of
which approximately 4,431 holders each owns fewer than 65,000 shares.
In the aggregate, the shares held by these small holders comprise less than 18.5% of our outstanding shares of Common
Stock, but represented approximately 94.7% of our total number of record stockholders.
Administrative expenses, consisting of transfer agent expenses relating to accounts for all our
record holders is approximately $37,000 per year. Approximately $10,000 of these expenses
relate to administering accounts of small holders. These expenses are included in the table
above as part of the cost savings relating to stockholder expenses. As a result, a
disproportionate amount of our expense relating to the administration of stockholder accounts
is attributable to stockholders holding only 94.7% of our issued and outstanding shares. The
administrative burden and cost to us of maintaining records in respect of these numerous small
accounts and the associated cost of preparing, printing and mailing information to them is, in
the Board&#146;s view, excessive given our limited size and the nature of our operations. The
Reverse/Forward Stock Split will enable us to eliminate much of these costs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">When the Reverse/Forward Stock Split is consummated, stockholders owning fewer than 65,000
shares of Common Stock will no longer have any equity interest in the Company and will not
participate in our future earnings or any increases in the value of our equity, assets or
operations. The stockholders that will continue to have an equity interest in the Company after
the Reverse/Forward Stock Split will own a security, the liquidity of which will be severely
restricted. See also information under the captions &#147;Recommendation of the Board; Fairness of
the Reverse/Forward Stock Split&#148; and &#147;Fairness of the Reverse/Forward Stock Split to
Stockholders&#148; in this Information Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Reverse/Forward Stock Split will (i)&nbsp;cause us to cash out shares held by any
stockholder holding fewer than 65,000 pre-split shares, (ii)&nbsp;not cash out any shares held by
any stockholder holding at least 65,000 pre-split shares of Common Stock and (iii)&nbsp;change the
percentage of Common Stock held by the remaining stockholders to 100%. However, the Board
reserves the right, in its discretion, to abandon the Reverse/Forward Stock Split prior to the
proposed Effective Date if it determines that abandoning the Reverse/Forward Stock Split is in
the best interests of the Company. If stockholders take actions to reduce their holdings to
under 65,000 shares prior to the proposed Effective Date, the Company may be forced to make
further changes to the Reverse Split ratio or to abandon the Reverse/Forward Stock Split
entirely.
</DIV>
<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>b) Strategic Alternatives Considered</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In making the determination to proceed with the Reverse/Forward Stock Split, the Board
evaluated other strategic alternatives. As discussed below, the Board ultimately rejected the
alternatives to the Reverse/Forward Stock Split because the Board believed that the
Reverse/Forward Stock Split would be the simplest and most cost-effective approach to achieve
the purposes described in this Information Statement. These alternatives were:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Self-Tender Offer. </B>The Board considered a self-tender offer by which we would offer
to repurchase shares of our outstanding Common Stock. The results of an issuer tender
offer would be unpredictable, however, due to its voluntary nature. The Board was
uncertain whether this alternative would result in shares being tendered by a sufficient
number of record stockholders so as to permit us to reduce the number of record
stockholders to fewer than 300 and to terminate our public reporting requirements. The
Board believed it unlikely that many holders of small numbers of shares would make the
effort to tender their shares. In addition, the Board considered that the estimated
transaction costs of completing a tender offer would be similar to or greater than the
costs of the Reverse/Forward Stock Split transaction, and these costs could be
significant in relation to the value of the shares purchased since there could be no
certainty that stockholders would tender a significant number of shares. The Board
estimated that the transaction costs of completing a tender offer would be approximately
$5,000,000, compared to approximately $3,000,000 for the Reverse/Forward Stock Split. We
believe that it is not in the best interests of our stockholders to incur such
additional expenses without reasonable assurances that a tender offer would result in
the reduction of our record stockholders to fewer than 300.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><Font face="wingdings"><B>&#167;</B></font></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Taking No Action. </B>The Board also considered taking no action to reduce the number
of our stockholders and remaining a public company. However, due to the significant and
increasing costs of being public, the Board believed that maintaining taking no action
would be detrimental to all of our stockholders. We would continue to incur the expenses
of being a public company without realizing many benefits of public company status.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Each of the above-referenced alternatives was evaluated by the C.E.O., which recommended
the Reverse/Forward Stock Split to the Board.
</DIV>
<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>c) Background of the Reverse/Forward Stock Split</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">At special meetings of the Board held on March&nbsp;9, 2007 and April&nbsp;4, 2007, the Board
discussed concerns regarding the significant and increasing ongoing costs of remaining a public
company, relative to the value realized by the Company&#146;s stockholders as a result of the
Sarbanes-Oxley Act and the rules and regulations of the SEC After a review, including the
advantages and disadvantages of the various alternatives, the Board generally concurred that
going private pursuant to a reverse stock split which would reduce the number of record
stockholders to fewer than 300 might be a desirable strategic alternative to consider, provided
that it was effected at a price and on terms fair to all of the Company&#146;s stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Following that discussion, the Board then explored in more depth the feasibility and
fairness from a financial point of view to the unaffiliated stockholders of the Company of such
a going private transaction and to determine a price to effect that transaction that is fair to
those stockholders. The Board considered Glenn E. Floyd and Billy A. Mickle as independent in
that neither director (nor any family member) was or is an employee of the Company, or
otherwise receives any compensation from the Company other than as service as a director,
neither Glenn E. Floyd nor Billy A. Mickle own any shares of common stock or other security of
the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">On April&nbsp;4, 2007, the Board held a meeting at which all members were present. The sole
agenda item was the continuation of discussion and consideration of the privatization of the
Company through a reverse stock split. The C.E.O. reported to the Board that he recommended a
going private transaction to be effected by a reverse stock split followed immediately by a
forward stock split which would cash out fractional holders that exist prior to the forward
stock split at a price of $0.035 per share, which represented a price it determined fair from a
financial point of view to pay to the unaffiliated stockholders. Based on the recommendation of
the C.E.O. and after a general discussion, the Board determined that the Reverse/Forward Stock
Split is fair to and in the best interest of all of our unaffiliated stockholders and
unanimously approved the transaction as recommended.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">On April&nbsp;23, 2007 the Company received the written consent of stockholders holding
sufficient shares to approve the Reverse/Forward Stock Split and the filing of the Articles of
Amendment.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>d) Effects of the Reverse/Forward Stock Split</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">If effected, based on current information available to us, the Reverse/Forward Stock Split
will reduce the number of record stockholders of our Common Stock from approximately 4,679 to
approximately 248. This reduction in the number of our stockholders will enable us to terminate
the registration of our Common Stock under the Exchange Act, which will substantially reduce
the information required to be furnished by us to our
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">stockholders and to the Commission. Additionally, certain provisions of the Exchange Act will
no longer apply, such as the proxy rules and the short-swing profit recovery provisions of
Section&nbsp;16(b).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">For a total expenditure by us of up to approximately $10,000 in transaction costs
(including advisory, legal, financial, accounting, printing and other fees and costs) and
approximately $2,179,636 in purchase costs for fractional shares, we estimate we will realize
an estimated $500,000 in cost savings on an annual basis by terminating our public company
status, based on our historical costs. Additionally, the Company will avoid the increasing cost
of compliance with the Sarbanes-Oxley Act in future periods. We estimate one-time cost savings
of at least $40,000 and future annual cost savings of approximately $1,000,000 because we would
not incur external auditor fees, consulting and legal fees and other expenses for compliance,
planning, documentation and testing, in preparation for the internal controls audit
requirements imposed by Section&nbsp;404 of the Sarbanes-Oxley Act or the retention of additional
personnel to handle the increased obligations of Section&nbsp;404. We intend to apply for
termination of registration of our Common Stock under the Exchange Act as soon as practicable
following completion of the Reverse/Forward Stock Split. However, the Board reserves the right,
in its discretion, to abandon the Reverse/Forward Stock Split prior to the proposed Effective
Date if it determines that abandoning the Reverse/Forward Stock Split is in the best interests
of the Company and its stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">The effect of the Reverse/Forward Stock Split on each stockholder will depend on the
number of shares that such stockholder owns, as summarized in the table below. See also
information under the caption &#147;Structure of the Reverse/Forward Stock Split&#148; in this
Information Statement for additional information with respect to the effect of the
Reverse/Forward Stock Split on each stockholder.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Stockholders Before Completion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Net Effect After Completion</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of the Reverse/Forward Stock Split</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of the Reverse/Forward Stock Spilt</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Registered stockholders holding
65,000 or more shares of Common
Stock.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">The percentage of beneficial
ownership of each of the remaining
stockholders of the Company will be
increased. Based on an assumed
cash-out of approximately 4,431
(post)&nbsp;shares, the percentage
ownership of each holder remaining
after the Reverse/Forward Stock
Split will increase by approximately
22%.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Registered stockholders holding
fewer than 65,000 shares of Common
Stock.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Shares will be converted into the
right to receive cash at $0.035 per
pre-split share.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->16 of 34<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Stockholders Before Completion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Net Effect After Completion</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of the Reverse/Forward Stock Split</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>of the Reverse/Forward Stock Spilt</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">Stockholders holding Common Stock in
street name through a nominee (such
as a bank or broker).
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">We intend for the Reverse/Forward
Stock Split to treat stockholders
holding Common Stock in street name
through a nominee (such as a bank or
broker) in the same manner as
stockholders whose shares are
registered on the books of the
Company in their own names. Nominees
will be instructed to effect the
Reverse/Forward Stock Split for
their beneficial holders. However,
nominees may have different
procedures and stockholders holding
shares in street name are urged to
contact their nominees. A
stockholder holding fewer than
65,000 shares of Common Stock in
street name who wants to receive
cash in the Reverse/Forward Stock
Split should instruct his, her or
its nominee to transfer such
stockholder&#146;s shares into a record
account in such stockholder&#146;s name
by June&nbsp;15, 2007 to ensure that such
stockholder will be considered a
holder of record prior to the
Effective Date of the
Reverse/Forward Stock Split. A
stockholder holding fewer than
65,000 shares of Common Stock in
street name through a nominee who
does not transfer shares into a
record account by June&nbsp;15, 2007 may
not have his, her or its shares
cashed out in connection with the
Reverse/Forward Stock Split. For
instance, a stockholder&#146;s shares may
not be cashed out if such
stockholder&#146;s nominee is a record
holder of an aggregate of 65,000 or
more shares of Common Stock, holds
shares for multiple stockholders in
street name and does not provide
such beneficial ownership positions
by June&nbsp;15, 2007 to the Exchange
Agent.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="109"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>e)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Potential Disadvantages of the Reverse/Forward Stock Split to Stockholders; Accretion in
Ownership and Control of Certain Stockholders</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The stockholders owning fewer than 65,000 shares of Common Stock immediately prior to the
effectiveness of the Reverse/Forward Stock Split will, after giving effect to the
Reverse/Forward Stock Split, no longer have any equity interest in the Company and therefore
will not participate in our future potential earnings or growth. It is expected that all but
approximately 248 holders will be fully cashed out in the Reverse/Forward Stock Split. It will
be difficult or impossible for cashed out stockholders to re-acquire an equity interest in the
Company unless they purchase an interest from the remaining stockholders or an active public
market for the Common Stock develops, which the Board believes is unlikely.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Reverse/Forward Stock Split will require stockholders who own fewer than 65,000 shares
of Common Stock involuntarily to surrender their shares for cash. These stockholders will not
have the ability to continue to hold their shares. The ownership interest of these stockholders
will be terminated as a result of the Reverse/Forward Stock Split, but the Board has concluded
that the completion of the Reverse/Forward Stock Split overall will benefit these stockholders
because of, among other reasons, the immediate liquidity provided to them by the transaction at
a price determined by the Board and Imperial Capital to be fair, from a financial point of
view, to these stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Reverse/Forward Stock Split will increase the percentage of beneficial ownership of
each of the remaining stockholders of the Company. Based on an assumed cash-out of
approximately 4,431 shares, the percentage ownership of each holder remaining after the
Reverse/Forward Stock Split will increase by approximately 22%. See also information under the
caption &#147;Security Ownership of Certain Beneficial Owners and Management&#148; in this Information
Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Potential disadvantages to our stockholders who will remain as stockholders after the
Reverse/Forward Stock Split include a significant decrease in the disclosure of Company
information and a potentially more illiquid market for their Common Stock. When the
Reverse/Forward Stock Split is effected, we intend to terminate the
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">registration of our Common Stock under the Exchange Act. As a result of the termination, we
will no longer be subject to the periodic reporting requirements or the proxy rules of the
Exchange Act. Our Common Stock was formerly quoted on the NASD&#146;s Over the Counter Bulletin
Board (&#147;OTCBB&#148;) under the ticker symbol &#147;AOOR.OB.&#148; On or about April&nbsp;23, 2007, the Company&#146;s
securities were removed from quotation on the OTCBB effective at the open of business on April
27, 2007. As such, the Company now trades on as an OTC &#147;Pink Sheet&#148; security under the ticker
symbol &#147;AOORE.OB.&#148; The over-the-counter market on the OTCBB is a quotation service that
displays real time quotes, last sales prices and volume information in over-the-counter equity
securities. This source of liquidity and information will no longer be available to our
stockholders following the Reverse/Forward Stock Split and the termination of our registration
and reporting obligations to the SEC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Termination of registration under the Exchange Act will also substantially reduce the
information which we will be required to furnish to our stockholders. After we become a
non-reporting, privately-held company, our stockholders will have access to our corporate books
and records to the extent provided by the Business Corporation Act, and to any additional
disclosures required by our directors&#146; and officers&#146; fiduciary duties to us and our
stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Termination of registration under the Exchange Act also will make many of the provisions
of the Exchange Act no longer applicable to us, including the short-swing profit provisions of
Section&nbsp;16, the proxy solicitation rules under Section&nbsp;14 and the stock ownership reporting
rules under Section&nbsp;13. In addition, affiliate stockholders may be deprived of the ability to
dispose of their Common Stock under Rule&nbsp;144 promulgated under the Securities Act of 1933, as
amended (the &#147;<I>Securities Act</I>&#148;). In addition, we will no longer be subject to the Sarbanes-Oxley
Act, which imposed many additional rules and regulations on public companies that were designed
to protect investors.
</DIV>
<DIV align="left">
<A name="110"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>f)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Effect of the Reverse/Forward Stock Split on Option Holders</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">None.
</DIV>
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>g)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Effect of the Reverse/Forward Stock Split on Warrants Holders</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">None. Warrant holders will own the same number of warrants after the reverse/forward
split.
</DIV>
<DIV align="left">
<A name="112"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>h)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Effect of the Reverse/Forward Stock Split on Holders of Outstanding Convertible Debentures</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">None.
</DIV>
<DIV align="left">
<A name="113"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>i)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Financial Effect of the Reverse/Forward Stock Split</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Completion of the Reverse/Forward Stock Split will require approximately $2,329,636 of
cash, which includes the acquisition costs of the Common Stock being cashed out as a result of
the transaction as well as advisory, legal, financial, accounting, printing and other fees and
costs related to the transaction. See also the information under the caption &#147;Financing of the
Reverse/Forward Stock Split&#148; in this Information Statement.
</DIV>
<DIV align="left">
<A name="114"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>j)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Federal Income Tax Consequences of the Reverse/Forward Stock Split</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><I>Summary</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following is a summary of the material United States federal income tax consequences
of the Reverse/Forward Stock Split, but does not purport to be a complete analysis of all the
potential tax considerations relating thereto. This summary is based upon the provisions of the
Internal Revenue Code of 1986, as amended (the &#147;<I>Code</I>&#148;), Treasury regulations promulgated
thereunder, administrative rulings and judicial decisions, all as of the date hereof. These
authorities may be changed, possibly retroactively, so as to result in United States federal
income tax consequences different from those set forth below. We have not sought any ruling
from the Internal Revenue Service (the &#147;<I>IRS</I>&#148;) with respect to the statements made and the
conclusions reached in the following summary, and there can be no assurance that the IRS will
agree with such statements and conclusions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">This summary also does not address the tax considerations arising under the laws of any
foreign, state or local jurisdiction. In addition, this discussion does not address tax
considerations applicable to a stockholder&#146;s particular circumstances or to stockholders that
may be subject to special tax rules, including, without limitation:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>

<TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>banks, insurance companies or other financial institutions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>persons subject to the alternative minimum tax;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>tax-exempt organizations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>dealers in securities or currencies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>traders in securities that elect to use a mark-to-market method of accounting for
their securities holdings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>persons that own, or are deemed to own, more than five percent of our Company (except
to the extent specifically set forth below);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certain former citizens or long-term residents of the United States;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>persons who hold our Common Stock as a position in a hedging transaction, &#147;straddle,&#148;
&#147;conversion transaction&#148; or other risk reduction transaction; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>persons deemed to sell our Common Stock under the constructive sale provisions of the
Code.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In addition, if a partnership holds our Common Stock, the tax treatment of a partner
generally will depend on the status of the partner and upon the activities of the partnership.
Accordingly, partnerships which hold our Common Stock and partners in such partnerships should
consult their tax advisors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>YOU ARE URGED TO CONSULT YOUR TAX ADVISOR WITH RESPECT TO THE APPLICATION OF THE UNITED
STATES FEDERAL INCOME TAX LAWS TO YOUR PARTICULAR SITUATION, AS WELL AS ANY TAX CONSEQUENCES OF
THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR COMMON STOCK ARISING UNDER THE UNITED STATES
FEDERAL ESTATE OR GIFT TAX RULES OR UNDER THE LAWS OF ANY STATE, LOCAL, FOREIGN OR OTHER TAXING
JURISDICTION OR UNDER ANY APPLICABLE TAX TREATY.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>Apollo Resources International, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We will not recognize taxable income, gain or loss in connection with the Reverse/Forward
Stock Split.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>Stockholders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The federal income tax consequences of the Reverse/Forward Stock Split for our
stockholders will differ depending on the number of shares of pre-split Common Stock owned and,
in some cases, constructively owned by such stockholders. As set forth in more detail below,
stockholders who own at least 65,000 shares of pre-split Common Stock will retain their shares
and will not recognize any gain, loss or dividend income as a result of the Reverse/Forward
Stock Split. Stockholders who own fewer than 65,000 shares of pre-split Common Stock will
receive cash, the treatment of which will depend on whether the constructive ownership rules
described below are applicable. If such constructive ownership rules do not apply, a
stockholder who owns fewer than 65,000 shares of pre-split Common Stock generally will
recognize gain or loss upon the sale or exchange of the pre-split Common Stock. If such
constructive ownership rules apply, the stockholder may be required to treat any cash received
as a dividend distribution rather than as gain or loss from a sale or exchange, as more fully
described below. The differences in tax consequences to the stockholders do not depend on
whether a stockholder is an affiliate of the Company, has voted to approve the Reverse/Forward
Stock Split or is an unaffiliated stockholder. With respect to the Company, as described above,
the Company will not recognize any income, gain or loss in connection with the Reverse/Forward
Stock Split. Neither the differences in tax consequences between stockholders who hold at least
65,000 shares of pre-split Common Stock and stockholders who own fewer than 65,000 shares of
pre-split Common Stock nor the differences in tax consequences between the stockholders and the
Company were reasons for the Company to undertake the Reverse/Forward Stock Split in this form
at this time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>Stockholders Who Receive Shares of Post-Split Common Stock</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A stockholder who retains shares of post-split Common Stock in the transaction (i.e., a
stockholder who owns at least 65,000 shares of pre-split Common Stock) will not recognize gain
or loss or dividend income as a result of the Reverse/Forward Stock Split, and the tax basis
(as adjusted for the Reverse/Forward Stock Split) and holding period
of such stockholder in shares of pre-split Common Stock will carry over as the tax basis and holding period of such
stockholder&#146;s shares of post-split Common Stock.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --> 19 of 34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B>Stockholders Who Receive Cash</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A stockholder who receives cash in the Reverse/Forward Stock Split (i.e., a stockholder
that owns fewer than 65,000 shares of pre-split Common Stock) will be
treated as having such shares redeemed in a taxable transaction governed by Section&nbsp;302 of the Code and, depending on
a stockholder&#146;s situation, the transaction will be taxed as either:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a sale or exchange of the redeemed shares, in which case the stockholder will
recognize gain or loss equal to the difference between the cash payment and the
stockholder&#146;s tax basis for the redeemed shares; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a cash distribution which is treated: (i)&nbsp;first, as a taxable dividend to the extent
of allocable earnings and profits, if any; (ii)&nbsp;second, as a tax-free return of capital
to the extent of the stockholder&#146;s tax basis in the redeemed shares; and (iii)&nbsp;finally,
as gain from the sale or exchange of the redeemed shares.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Amounts treated as gain or loss from the sale or exchange of redeemed shares will be
capital gain or loss. Currently, amounts treated as a taxable dividend are taxed to the
recipient at special reduced federal income tax rates. A corporate taxpayer (other than an S
corporation) may be allowed a dividends received deduction subject to applicable limitations
and other special rules.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Under Section&nbsp;302 of the Code, a redemption of shares from a stockholder as part of the
Reverse/Forward Stock Split will be treated as a sale or exchange of the redeemed shares if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Reverse/Forward Stock Split results in a &#147;complete termination&#148; of such
stockholder&#146;s interest in the Company;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the receipt of cash is &#147;substantially disproportionate&#148; with respect to the stockholder; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the receipt of cash is &#147;not essentially equivalent to a dividend&#148; with respect to the stockholder.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">These
three tests (the &#147;<I>Section&nbsp;302 Tests</I>&#148;) are applied by taking into account not only shares that a stockholder actually owns, but also shares that the stockholder constructively
owns pursuant to Section&nbsp;318 of the Code. Under the constructive ownership rules of Section&nbsp;318
of the Code, a stockholder is deemed to constructively own shares owned by certain related
individuals and entities in which the stockholder has an interest in addition to shares
directly owned by the stockholder. For example, an individual
stockholder is considered to own shares owned by or for his or her spouse and his or her children, grandchildren and parents
(&#147;<I>family attribution</I>&#148;). In addition, a stockholder is considered to own a proportionate number
of shares owned by estates or certain trusts in which the stockholder has a beneficial
interest, by partnerships in which the stockholder is a partner, and by corporations in which
50% or more in value of the stock is owned directly or indirectly by or for such stockholder.
Similarly, shares directly or indirectly owned by beneficiaries of estates of certain trusts,
by partners of partnerships and, under certain circumstances, by stockholders of corporations
may be considered owned by these entities (&#147;<I>entity attribution</I>&#148;). A stockholder is also deemed
to own shares which the stockholder has the right to acquire by exercise of an option or by
conversion or exchange of a security. Constructively owned shares may be reattributed to
another taxpayer. For example, shares attributed to one taxpayer as a result of entity
attribution may be attributed from that taxpayer to another taxpayer through family
attribution.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A stockholder who receives cash in the Reverse/Forward Stock Split (i.e., owns fewer than
65,000 shares of pre-split Common Stock) and does not constructively own any shares of
post-split Common Stock will have his or her interest in the Company completely terminated by
the Reverse/Forward Stock Split and will therefore receive sale or exchange treatment on his or
her pre-split Common Stock. That is, such a stockholder will recognize gain or loss equal to
the difference between the cash payment and the stockholder&#146;s tax basis for his or her shares
of pre-split Common Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A stockholder who receives cash in the Reverse/Forward Stock Split and would only
constructively own shares of post-split Common Stock as a result of family attribution may be
able to avoid constructive ownership of the shares of post-split Common Stock by waiving family
attribution and, thus, be treated as having had his or her interest in the Company completely
terminated by the Reverse/Forward Stock Split. Among other things, waiving family attribution
requires (i)&nbsp;that the stockholder have no interest in the Company (including as an officer,
director, employee or stockholder) other than an interest as a creditor and does not acquire
such an interest during the ten-year period immediately following the Reverse/Forward Stock
Split other than stock
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">acquired by bequest or inheritance and (ii)&nbsp;including an election to waive family attribution
in the stockholder&#146;s tax return for the year in which the Reverse/Forward Stock Split occurs.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A stockholder who receives cash in the Reverse/Forward Stock Split and immediately after
the Reverse/Forward Stock Split constructively owns shares of post-split Common Stock must
compare (i)&nbsp;his, her or its percentage ownership immediately before the Reverse/Forward Stock
Split (i.e., the number of voting shares actually or constructively owned by him, her or it
immediately before the Reverse/Forward Stock Split divided by the number of voting shares
outstanding immediately before the Reverse/Forward Stock Split) with (ii)&nbsp;his, her or its
percentage ownership immediately after the Reverse/Forward Stock Split (i.e., the number of
voting shares constructively owned by his, her or it immediately after the Reverse/Forward
Stock Split divided by the number of voting shares outstanding immediately after the
Reverse/Forward Stock Split).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">If the stockholder&#146;s post-Reverse/Forward Stock Split ownership percentage is less than
80% of the stockholder&#146;s pre-Reverse/Forward Stock Split ownership percentage, the receipt of
cash is &#147;substantially disproportionate&#148; with respect to the stockholder, and the stockholder
will, therefore, receive sale or exchange treatment on the portion of his, her or its shares of
pre-split Common Stock exchanged for cash in lieu of fractional shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">If the receipt of cash by a stockholder fails to constitute an &#147;exchange&#148; under the
&#147;substantially disproportionate&#148; test or the &#147;complete termination&#148; test, the receipt of cash
may constitute an &#147;exchange&#148; under the &#147;not essentially equivalent to a dividend&#148; test. The
receipt of cash by a stockholder will be &#147;not essentially equivalent to a dividend&#148; if the
transaction results in a &#147;meaningful reduction&#148; of the stockholder&#146;s proportionate interest in
the Company. If (i)&nbsp;the stockholder exercises no control over the affairs of the Company (e.g.,
is not an officer, director or high ranking employee), (ii)&nbsp;the stockholder&#146;s relative stock
interest in the Company is minimal, and (iii)&nbsp;the stockholder&#146;s post-Reverse/Forward Stock
Split ownership percentage is less than the stockholder&#146;s pre-Reverse/Forward Stock Split
ownership percentage, the receipt of cash will generally not be essentially equivalent to a
dividend with respect to the stockholder and the stockholder will, therefore, receive sale or
exchange treatment on the portion of his, her or its shares of pre-split Common Stock exchanged
for cash in lieu of fractional shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In all other cases, cash in lieu of fractional shares received by a stockholder who
immediately after the Reverse/Forward Stock Split constructively owns shares of post-split
Common Stock will be treated: (i)&nbsp;first, as a taxable dividend to the extent of allocable
earnings and profits, if any; (ii)&nbsp;second, as a tax-free return of capital to the extent of the
stockholder&#146;s tax basis in the redeemed shares; and (iii)&nbsp;finally, as gain from the sale or
exchange of the redeemed shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><I>Backup Tax Withholding</I>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We are required to furnish to the holders of Common Stock, other than corporations and
other exempt holders, and to the IRS, information with respect to dividends paid on the Common
Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">You may be subject to backup withholding at the rate of 28% with respect to proceeds
received from a disposition of the shares of Common Stock. Certain holders (including, among
others, corporations and certain tax-exempt organizations) are generally not subject to backup
withholding. You will be subject to backup withholding if you are not otherwise exempt and you
(a)&nbsp;fail to furnish your taxpayer identification number (&#147;TIN&#148;), which, for an individual, is
ordinarily his or her social security number; (b)&nbsp;furnish an incorrect TIN; (c)&nbsp;are notified by
the IRS that you have failed to properly report payments of interest or dividends; or (d)&nbsp;fail
to certify, under penalties of perjury, that you have furnished a correct TIN and that the IRS
has not notified you that you are subject to backup withholding. Backup withholding is not an
additional tax but, rather, is a method of tax collection. You generally will be entitled to
credit any amounts withheld under the backup withholding rules against your United States
federal income tax liability provided that the required information is furnished to the IRS in
a timely manner.
</DIV>
<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Structure of the Reverse/Forward Stock Split</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reverse/Forward Stock Split includes both a reverse stock split and a forward stock split
of our Common Stock. The Reverse Split is expected to occur on the Effective Date, which will be 20
calendar days following the date this Information Statement is first mailed to our stockholders and
the Forward Split is expected to occur immediately thereafter. Although the Reverse/Forward Stock
Split has been approved by the requisite number of stockholders,</div>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Board reserves the right, in its discretion, to abandon the Reverse/Forward Stock Split prior
to the proposed Effective Date if it determines that abandoning the Reverse/Forward Stock Split is
in the best interests of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reverse/Forward Stock Split will not impact any of the holders of our outstanding options,
warrants or convertible debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upon consummation of the Reverse Split, each registered stockholder on the Effective Date will
receive one share of Common Stock for each 65,000 shares of Common Stock held in his, her or its
account immediately prior to the effective time of the Reverse Split. If a registered stockholder
holds more than 65,000 shares of Common Stock in his, her or its account, any fractional share in
such account will not be cashed out after the Reverse Split and the total number of shares held by
such holder will not change as a result of the Reverse/Forward Stock Split. Such holders will not
need to exchange or return any existing stock certificates, which will continue to evidence
ownership of the same number of shares as set forth currently on the face of the certificates. Any
registered stockholder who holds fewer than 65,000 shares of Common Stock in his, her or its
account immediately prior to the effective time of the Reverse Split will receive a cash payment of
$0.035 per pre-split share instead of fractional shares. In connection with the Forward Split, all
registered stockholders holding at least 65,000 shares prior to the Reverse Split will receive
65,000 shares of Common Stock for every one share of Common Stock they held following the Reverse
Split.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The determination of the 1 for 65,000 Reverse Split ratio was based on the Company&#146;s intention to
reduce the number of record stockholders remaining after the Reverse Split to fewer than 300, in
light of the Company&#146;s intention to terminate its registration with the Commission. The resulting
estimated cost to cash out these shares was determined to be reasonable in light of the expected
benefits from the Reverse/Forward Stock Split. The Company has reserved the right not to proceed
with the Reverse/Forward Stock Split in the event that it determines that abandoning the
Reverse/Forward Stock Split would be in the best interests of the Company. If stockholders take
actions to reduce their holdings to under 65,000 shares prior to the proposed Effective Date, the
Company may be forced to make changes to the ratio or to abandon the Reverse/Forward Stock Split
entirely.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We intend for the Reverse/Forward Stock Split to treat stockholders holding Common Stock in street
name through a nominee (such as a bank or broker) in the same manner as stockholders whose shares
are registered in their names, and nominees will be instructed to effect the Reverse/Forward Stock
Split for their beneficial holders. However, nominees may have different procedures, and
stockholders holding shares in street name should contact their nominees. A stockholder holding
fewer than 65,000 shares of Common Stock in street name who wants to receive cash in the
Reverse/Forward Stock Split should instruct his, her or its nominee to transfer such stockholder&#146;s
shares into a record account in such stockholder&#146;s name by June&nbsp;15, 2007 to ensure that such
stockholder will be considered a holder of record prior to the Effective Date of the
Reverse/Forward Stock Split. A stockholder holding fewer than 65,000 shares of Common Stock in
street name through a nominee who does not transfer shares into a record account by June&nbsp;15, may
not have his, her or its shares cashed out in connection with the Reverse/Forward Stock Split. For
instance, a stockholder&#146;s shares may not be cashed out if such stockholder&#146;s nominee is a record
holder of an aggregate of 65,000 or more shares of Common Stock, holds shares for multiple
stockholders in street name and does not provide such beneficial ownership positions by June&nbsp;15,
2007 to the Exchange Agent.
</DIV>

<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Fairness of the Reverse/Forward Stock Split to Stockholders</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upon consultation with and the recommendation of the C.E.O., the Board determined that the
Reverse/Forward Stock Split, including the proposed cash payment of $0.035 per pre-split share to
stockholders whose shares will be cashed out, is substantively fair, from a financial point of
view, to all of our unaffiliated stockholders, including those whose shares will be cashed out and
those who will be continuing stockholders of the Company. Factors considered in determining the
fairness of the transaction include the following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The current market price is roughly $0.034 per share, with
relatively low volumes of shares traded. The offer of $0.035 per share allows shareholders holding under 65,000
shares to be cashed out all at once at a slight premium to the current market price. If
this action is not taken, there is a likelihood that the price will decrease even further
due to the fact the Company now trades on the Pink Sheets and due to the information in
this Information Statement;</TD>
</TR>

</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The last time the Company&#146;s stock price traded at $0.035 per share was on March&nbsp;21,
2007. The stock has trended down each month since that time. The Company has no certainty
that this trend would not continue;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The going concern value of the Company, calculated as the fair market value of the
Company&#146;s assets less the Company&#146;s liabilities, is estimated to be $50,600,000, while the
liquidation value is estimated to be $14,500,000.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="117"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Reports, Opinions or Appraisals.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">No outside party provided any reports, opinions, or appraisals.
</DIV>
<DIV align="left">
<A name="118"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Procedural Fairness to All Stockholders</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Upon consultation with and the recommendation of the C.E.O., the Board determined that the
Reverse/Forward Stock Split is procedurally fair to all unaffiliated stockholders, including
both stockholders who will receive cash payments in connection with the Reverse/Forward Stock
Split and will not be continuing stockholders of the Company and stockholders who will retain
an equity interest in the Company. Further, the transaction was approved unanimously by the
non-employee independent directors of Apollo.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Board determined not to structure the Reverse/Forward Stock Split transaction so that
approval of at least a majority of unaffiliated security holders is required. The Board also
determined not to retain an unaffiliated representative to act solely on behalf of the
unaffiliated stockholders. Requiring approval of a majority of unaffiliated security holders
and/or retaining an unaffiliated representative on behalf of the unaffiliated stockholders
would cause unnecessary delay and add expense to the Reverse/Forward Stock Split transaction
and would not affect the outcome of the transaction because a majority vote of the unaffiliated
stockholders is not required under applicable law. The Board also did not retain an
unaffiliated representative though the non-employee independent directors served to protect
the interests of the unaffiliated stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Board did not grant unaffiliated stockholders access to our corporate files, except as
provided under the Utah Business Corporation Act, nor did it extend the right to retain counsel
or appraisal services at our expense. With respect to unaffiliated stockholders&#146; access to our
corporate files, the Board determined that this Information Statement, together with our other
filings with the Commission, provide adequate information for unaffiliated stockholders. The
Board also considered the fact that under the Utah Business Corporation Act stockholders have
the right to review our relevant books and records of account. In deciding not to adopt these
additional procedures, the Board also took into account factors such as our size and financial
capacity and the costs of such procedures.
</DIV>
<DIV align="left">
<A name="119"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>c)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Termination of Exchange Act Registration</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Our Common Stock is currently registered under the Exchange Act and quoted on the OTCBB.
We are permitted to terminate such registration if there are fewer than 300 record holders of
outstanding shares of our Common Stock. As of April&nbsp;4, 2007, we had approximately 4,679 holders
of our Common Stock. Upon the effectiveness of the Reverse/Forward Stock Split, we expect to
have approximately 248 record holders of our Common Stock. We intend to terminate the
registration of our Common Stock under the Exchange Act and to delist our Common Stock from the
OTCBB as promptly as possible after the Effective Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Termination of registration under the Exchange Act will substantially reduce the
information which we will be required to furnish to our stockholders. After we become a
non-reporting, privately-held company, our stockholders will have access to our corporate books
and records to the extent provided by the Utah Business Corporation Act, and to any additional
disclosures required by our directors&#146; and officers&#146; fiduciary duties to us and our
stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Termination of registration under the Exchange Act also will make many of the provisions
of the Exchange Act no longer applicable to us, including the short-swing profit provisions of
Section&nbsp;16, the proxy solicitation rules under Section&nbsp;14 and the stock ownership reporting
rules under Section&nbsp;13. In addition, affiliate stockholders may be deprived of the ability to
dispose of their Common Stock under Rule&nbsp;144 promulgated under the Securities Act. In addition,
we will no longer be subject to the Sarbanes-Oxley Act, which imposed many additional rules and
regulations on public companies that were designed to protect investors.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Description of the Reverse/Forward Stock Split</B>
</DIV>

<DIV align="left">
<A name="121"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Amendments of Articles of Incorporation to Effect the Reverse/Forward Stock Split</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Board determined that it is advisable to amend our Articles of Incorporation to effect
a 1-for-65,000 Reverse Split of Common Stock immediately followed by a 65,000-for-1 Forward
Split of Common Stock, and to provide for the cash payment of $0.035 per pre-split share in
lieu of fractional shares of Common Stock that would otherwise be issued following the Reverse
Split.
</DIV>
<DIV align="left">
<A name="122"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>b)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Regulatory Approvals</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Aside from stockholder approval of the Articles of Amendment, which has been obtained, the
amendments are not subject to any regulatory approvals.
</DIV>
<DIV align="left">
<A name="123"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>c)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Vote Required</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">A majority of the votes entitled to be cast by holders of the issued and outstanding
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares of Common Stock was required to approve the Reverse/Forward Stock Split. We have
received the written consent of stockholders holding 197,893,644 shares of our issued and
outstanding Common Stock , or 52.5% of the total Common Stock class vote, voted in favor of the
Reverse/Forward Stock Split and the Articles of Amendment. No special meeting of stockholders
is required under Utah law, since the requisite vote for adoption of the Reverse/Forward Stock
Split has been obtained and the vote of other stockholders is not necessary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Board determined not to condition the approval of the Reverse/Forward Stock Split on
approval by a majority of unaffiliated stockholders because the vote of a majority of
unaffiliated stockholders was not required under Utah law.
</DIV>
<DIV align="left">
<A name="124"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>d)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Holders as of Effective Date; Net Effect After Reverse/Forward Stock Split</B></TD>
</TR>

</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Stockholders holding fewer than 65,000 pre-split shares of Common Stock will be cashed out
at a price of $0.035 per share, and the holdings of all other stockholders will be unchanged
after implementation of the Reverse/Forward Stock Split. Any stockholders whose shares are
cashed out will have no continuing equity interest in the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">NOMINEES AND BROKERS ARE EXPECTED TO DELIVER TO THE EXCHANGE AGENT THE BENEFICIAL
OWNERSHIP POSITIONS THEY HOLD. HOWEVER, IF YOU ARE A BENEFICIAL OWNER OF COMMON STOCK WHO IS
NOT THE RECORD HOLDER OF THOSE SHARES AND WISH TO ENSURE THAT YOUR OWNERSHIP POSITION IS
ACCURATELY DELIVERED TO THE COMPANY&#146;S EXCHANGE AGENT, YOU SHOULD INSTRUCT YOUR BROKER OR
NOMINEE TO TRANSFER YOUR SHARES INTO A RECORD ACCOUNT IN YOUR NAME. NOMINEES AND BROKERS MAY
HAVE REQUIRED PROCEDURES. THEREFORE, SUCH HOLDERS SHOULD CONTACT THEIR NOMINEES AND BROKERS BY
JUNE 15, 2007 TO DETERMINE HOW TO EFFECT THE TRANSFER.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The proposed Articles of Amendment are attached as Annexes A-1 and A-2 to this Information
Statement. The Reverse/Forward Stock Split will become effective upon the filing of the
proposed Articles of Amendment with the Utah Division of Corporations and Commercial Code.
</DIV>
<DIV align="left">
<A name="125"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>e)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exchange of Certificates for Cash Payment or Shares</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">We will file the Articles of Amendment with the Utah Division of Corporations and
Commercial Code and effect the amendments set forth in <I>Annexes A-1 </I>and <I>A-2 </I>to this Information
Statement approximately twenty (20)&nbsp;calendar days after the mailing date of this Information
Statement. Colonial Stock Transfer Company, Inc. has been appointed as the Exchange Agent to
carry out the exchange of certificates for cash.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">As soon as practicable after the Effective Date, record holders holding fewer than 65,000
shares will be notified and sent a letter of transmittal and instructed how to transmit their
certificates representing shares of Common Stock to the Exchange Agent. Upon proper completion
and execution of the letter of transmittal, and the return of the letter of transmittal and
accompanying stock certificate(s) to the Exchange Agent, each stockholder entitled to receive
payment will receive a check for such stockholder&#146;s stock. Stockholders should allow for
approximately five (5)&nbsp;business days after mailing for the Exchange Agent to receive the letter
of transmittal and accompanying stock certificate. The Exchange Agent will send a check for
such stockholder&#146;s
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">stock within approximately five (5)&nbsp;business days of receiving such letter of transmittal and
accompanying stock certificate. In the event we are unable to locate certain stockholders or if
a stockholder fails properly to complete, execute and return the letter of transmittal and
accompanying stock certificate to the Exchange Agent, any funds payable to such holders
pursuant to the Reverse/Forward Stock Split will be held in escrow until a proper claim is
made, subject to applicable abandoned property laws. Record holders owning fewer than 65,000
shares of Common Stock on the Effective Date will receive in exchange a cash payment in the
amount of $0.035 per pre-split share. Those record holders beneficially owning at least 65,000
shares of Common Stock will continue to hold the same number of shares of Common Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">If the Reverse/Forward Stock Split is effected, any stockholder owning fewer than 65,000
shares of the currently outstanding Common Stock will cease to have any rights with respect to
our Common Stock, except to be paid the cash consideration, as described in this Information
Statement. No interest will be paid or accrued on the cash payable to holders of fewer than
65,000 shares after the Reverse/Forward Stock Split is effected.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">No service charges will be payable by stockholders in connection with the exchange of
certificates for cash, all expenses of which will be borne by us except for expenses, if any,
imposed by your nominee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Nominees (such as a bank or broker) may have required procedures, and a stockholder
holding Common Stock in street name should contact his, her or its nominee to determine how the
Reverse/Forward Stock Split will affect them. The Exchange Agent appointed by us to carry out
the exchange has informed us that nominees are expected to provide beneficial ownership
positions to them so that beneficial owners may be treated appropriately in effecting the
Reverse/Forward Stock Split. However, if you are a beneficial owner of fewer than 65,000 shares
of Common Stock, you should instruct your nominee to transfer your shares into a record account
in your name by June&nbsp;15, 2007 to ensure that you will be considered a holder of record prior to
the Effective Date, which is anticipated to be on or after June&nbsp;11, 2007, the date twenty (20)
calendar days after the date this Information Statement is first mailed to our stockholders as
well as those other requisite filings. A stockholder holding fewer than 65,000 shares of Common
Stock in street name who does not transfer shares into a record account by June&nbsp;15, 2007 may
not have his or her shares cashed out in connection with the Reverse/Forward Stock Split. For
instance, such stockholder&#146;s shares may not be cashed out if such stockholder&#146;s nominee is a
record holder of an aggregate of 65,000 or more shares of Common Stock, holds shares for
multiple stockholders in street name and does not provide such beneficial ownership positions
by June&nbsp;15, 2007 to the Exchange Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">In the event that any certificate representing shares of Common Stock is not presented for
cash upon request by us, the cash payment will be administered in accordance with the relevant
state abandoned property laws. Until the cash payments have been delivered to the appropriate
public official pursuant to the abandoned property laws, such payments will be paid to the
holder thereof or his or her designee, without interest, at such time as the shares of Common
Stock have been properly presented for exchange.
</DIV>
<DIV align="left">
<A name="126"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>f)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Appraisal Rights</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">No appraisal rights are available under Utah law or our Articles of Incorporation to any
dissenting stockholder.
</DIV>
<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Financing of the Reverse/Forward Stock Split</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Completion of the Reverse/Forward Stock Split will require approximately $2,329,636, which
includes approximately $150,000 in advisory, legal, financial, accounting, printing and other fees
and costs related to the transaction. As a result, we will have decreased working capital and
borrowing capacity following the Reverse/Forward Stock Split which may have a material effect on
our capitalization, liquidity, results of operations and cash flow. The costs of the transaction
and related fees and expenses will be paid from revenues from oil and gas operations, loan
receivables, and the potential sale of certain assets. You should read the discussion under the
caption &#147;Costs of the Reverse/Forward Stock Split&#148; in this Information Statement for a description
of the fees and expenses we expect to incur in connection with the transaction.
</DIV>

<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Costs of the Reverse/Forward Stock Split</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following is an estimate of the costs incurred or expected to be incurred by us in
connection with the Reverse/Forward Stock Split. Final costs of the transaction may be more or less
than the estimates shown below. We

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">will be responsible for paying these costs. Please note that the following estimate of costs does
not include the cost of paying for shares of those stockholders holding fewer than 65,000 shares
pursuant to the Reverse/Forward Stock Split.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer and exchange agent fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing and mailing costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">50,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous (including SEC filing fees)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Conduct of the Company&#146;s Business After the Reverse/Forward Stock Split</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We expect our business and operations to continue as they are currently being conducted and,
except as disclosed in this Information Statement, the Reverse/Forward Stock Split is not
anticipated to have any effect upon the conduct of our business. We expect to realize management
time and cost savings as a result of terminating our public company status. When the
Reverse/Forward Stock Split is consummated, all persons owning fewer than 65,000 shares of Common
Stock at the effective time of the Reverse/Forward Stock Split will no longer have any equity
interest in, and will not be stockholders of, the Company, and therefore will not participate in
our future potential earnings and growth.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When the Reverse/Forward Stock Split is effected, we believe that, based on our stockholder
records, approximately 248 holders will remain as holders of Common Stock, beneficially owning 100%
of the outstanding Common Stock. Stockholders who currently beneficially own approximately 81.5% of
the outstanding Common Stock will beneficially own 100% of the outstanding Common Stock after the
Reverse/Forward Stock Split. See also information under the caption &#147;Security Ownership of Certain
Beneficial Owners and Management&#148; in this Information Statement. When the Reverse/Forward Stock
Split is effected, members of the Board and our executive officers, collectively, will directly
beneficially own approximately 53.0% of the outstanding Common Stock compared to approximately
42.3% of the outstanding Common Stock prior to the Effective Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We plan, following the consummation of the Reverse/Forward Stock Split, to become a privately held
company. The registration of our Common Stock under the Exchange Act will be terminated and our
Common Stock will cease to be quoted on the OTCBB and only will be traded in the &#147;pink sheets.&#148; In
addition, because our Common Stock will no longer be publicly held, we will be relieved of the
obligation to comply with the proxy rules of Regulation&nbsp;14A under Section&nbsp;14 of the Exchange Act,
and our officers and directors and stockholders owning more than 10% of Common Stock will be
relieved of the stock ownership reporting requirements and &#147;short swing&#148; trading restrictions under
Section&nbsp;16 of the Exchange Act. Further, we will no longer be subject to the periodic reporting
requirements of the Exchange Act and will cease filing information with the Commission, such as
Forms 10-KSB, 10-QSB and 8-K. Among other things, the effect of this change will be to enable us to
realize management time and cost savings from not having to comply with the requirements of the
Exchange Act.
</DIV>

<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Recommendation of the Board; Fairness of the Reverse/Forward Stock Split</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Board believes that the Reverse/Forward Stock Split is fair to our unaffiliated
stockholders, including those whose interests are being cashed out pursuant to the Reverse/Forward
Stock Split and those who will retain an equity interest in the Company subsequent to the
consummation of the Reverse/Forward Stock Split. The discussion below summarizes the material
factors, both positive and negative, considered by the Board in reaching their fairness
determination, in addition to the detailed discussion in this Information Statement under the
captions &#147;Special Factors&#151;Reasons for and Purposes of the Reverse/Forward Stock Split,&#148; &#147;Special
Factors&#151;Strategic Alternatives Considered,&#148; &#147;Special Factors&#151;Background of the Reverse/Forward
Stock Split&#148; and &#147;Special Factors&#151;Effects of the Reverse/Forward Stock Split.&#148; For the reasons
described above under the caption &#147;Fairness of the Reverse/Forward Stock Split to
Stockholders&#151;Procedural Fairness to All Stockholders,&#148; the Board also believes that the process by
which the transaction has been approved is fair to all unaffiliated stockholders, including those
whose interests are being cashed out pursuant to the Reverse/Forward Stock Split and those who will
retain an equity interest in the Company subsequent to the consummation of the Reverse/Forward
Stock Split.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In consideration of the factors discussed under the captions &#147;Special Factors&#151;Reasons for and
Purposes of the Reverse/Forward Stock Split,&#148; &#147;Special Factors&#151;Strategic Alternatives Considered,&#148;
&#147;Special Factors&#151;Background of the Reverse/Forward Stock Split,&#148; &#147;Special Factors&#151;Effects of the
Reverse/Forward Stock Split&#148; and &#147;Recommendation of the Board; Fairness of the Reverse/Forward
Stock Split&#148; in this Information Statement, the Board, including all of the non-employee directors,
approved the Reverse/Forward Stock Split by a unanimous vote of the Board on March&nbsp;9, 2007 and
April&nbsp;4, 2007. In addition, on April&nbsp;23, 2007, the Company received the written consent of
stockholders holding sufficient shares to approve the transaction.
</DIV>

<DIV align="left">
<A name="131"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Reservation of Rights</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Although the Reverse/Forward Stock Split has been approved by the requisite number of
stockholders, the Board reserves the right, in its sole discretion, to abandon the
Reverse/Forward Stock Split prior to the proposed Effective Date if it determines that
abandoning the Reverse/Forward Stock Split is in the best interests of the Company. The
determination of the 1 for 65,000 Reverse Split ratio was based on the Company&#146;s intention to
reduce the number of record stockholders remaining after the Reverse Split to fewer than 300.
The resulting estimated cost to cash out these shares was determined to be reasonable in light
of the expected benefits from the Reverse/Forward Stock Split. The Company reserved the right
not to proceed with the Reverse/Forward Stock Split in the event that it determines that
abandoning the Reverse/Forward Stock Split would be in the best interests of the Company.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The Board presently believes that the Reverse/Forward Stock Split is in the best interests
of the Company, our stockholders being cashed out pursuant to the Reverse/Forward Stock Split
and our stockholders who will retain an equity interest in the Company subsequent to the
consummation of the Reverse/Forward Stock Split, and thus recommended a vote for the
Reverse/Forward Stock Split and the proposed Articles of Amendment. Nonetheless, the Board
believes that it is prudent to recognize that, between the date of this Information Statement
and the date that the Reverse/Forward Stock Split will become effective, factual circumstances
could possibly change such that it might not be appropriate or desirable to effect the
Reverse/Forward Stock Split at that time or on the terms currently proposed. Such factual
circumstances could include a superior offer to our stockholders, a material change in our
business or financial condition or litigation affecting our ability to proceed with the
Reverse/Forward Stock Split. If the Board decides to withdraw or modify the Reverse/Forward
Stock Split, the Board will notify the stockholders of such decision promptly in accordance
with applicable rules and regulations.
</DIV>
<DIV align="left">
<A name="132"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Financial Statements</B>
</DIV>

<DIV align="left">
<A name="133"></A>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>a)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Financial Information</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Our audited financial statements are included in our annual report on Form 10-KSB for the
year ended December&nbsp;31, 2005, a copy of which is included in this information statement as
Annex B. In addition, our unaudited consolidated financial statements as of and for the nine
months ended September&nbsp;30, 2006 are included in our quarterly reports on Form 10-QSB that
period a copy of which is included in this information statement as Annex C.
</DIV>
<DIV align="left">
<A name="134"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Trading Market and Price of Our Common Stock and Dividend Policy</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our Common Stock was formerly quoted on the NASD&#146;s Over the Counter Bulletin Board (&#147;OTCBB&#148;)
under the ticker symbol &#147;AOOR.OB.&#148; On or about April&nbsp;23, 2007, the NASD notified the Company that
the Company&#146;s securities were to be removed from quotation on the OTCBB effective at the open of
business on April&nbsp;27, 2007. As such, the Company now trades on as an OTC &#147;Pink Sheet&#148; security
under the ticker symbol &#147;AOORE.OB and shall be trading under the symbol &#147;AOOR.PK.&#148; We consider our
common stock to be thinly traded and any reported bid or sale prices may not be a true market-based
valuation of the common stock. On May&nbsp;17, 2007, the last practicable trading day prior to the date
of this Information Statement, our Common Stock&#146;s closing price was $0.034.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Since inception, we have not paid any cash dividends to our stockholders. Any future declaration
and payment of cash dividends will be subject to the discretion of the Board, and will depend upon
our results of operations, financial condition, cash requirements, future prospects, changes in tax
legislation and other factors deemed relevant by our Board.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --> 27 of 34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On May&nbsp;17, 2007, the last practicable trading day prior to the date of this Information Statement,
our Common Stock&#146;s closing price was $0.034.
</DIV>

<DIV align="left">
<A name="135"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Security Ownership of Certain Beneficial Owners and Management</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following table sets forth certain information regarding beneficial ownership of our
Common Stock, our only class of equity securities currently outstanding, as of April&nbsp;4, 2007, by
(1)&nbsp;each director and named executive officer of the Company, (2)&nbsp;all officers and directors of the
Company as a group, and (3)&nbsp;all persons who are known by the Company to be beneficial owners of 5%
or more of the Company&#146;s outstanding common stock.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3"><B>Title of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>% of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Class</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name and Address</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Shares</B><SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Class</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="3" valign="top" align="center">Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dennis McLaughlin<br>
CEO and Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">161,575,476</TD>
    <TD nowrap><SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">42.9</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" nowrap valign="top" align="center">Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Christopher P. (Kit) Chambers<br>
Corporate Secretary and Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.3</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="3" nowrap valign="top" align="center">Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Darren L. Miles<br>
Chief Financial Officer and Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" nowrap valign="top" align="center">Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Billy A. Mickle<br>
Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="3" nowrap valign="top" align="center">Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Glenn E. Floyd<br>
Director</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" nowrap valign="top" align="center">Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Officers and Directors<br>
as a Group (5 persons)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162,575,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">43.2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="3" nowrap valign="top" align="center">Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">5%<SUP style="font-size: 85%; vertical-align: text-top">&#043;</SUP> Shareholders &#150; None
except as <br>described above</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">*</TD>
    <TD>&nbsp;</TD>
    <TD>Indicates less than one percent (1%).</TD>
</TR>

</TABLE>



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as set forth above and based solely upon reports of beneficial
ownership required to be filed with the Securities and Exchange Commission pursuant
to Rule&nbsp;13d-1 under the Securities Exchange Act of 1934, as amended, the Company
does not believe that any other person beneficially owned, as of April&nbsp;4, 2007,
greater than 5% of the outstanding common stock. Except as otherwise noted, the
address of the named individuals is 3001 Knox Street, Suite&nbsp;403, Dallas, Texas
75205.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Shares held directly of 5,879,323 and shares beneficially owned of
155,696,153 through interest in AP Holdings, Inc.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="136"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Interests of Certain Persons</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our directors and executive officers have interests in the Reverse/Forward Stock Split that
may be different from your interests as a stockholder and have relationships that may present
conflicts of interest, including the following:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As noted below in the section entitled &#147;Security Ownership of Certain Beneficial
Owners and Management,&#148; Dennis G. McLaughlin, III and Christopher P. (Kit) Chambers who
are members of our Board of Directors, and executive officers, each
own 65,000 or more shares of our Common Stock and will continue to own shares of Common Stock after the
transaction; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT style="font-family: Wingdings">&#167;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As a result of the Reverse/Forward Stock Split, the stockholders who own 65,000 or
more shares, such as our directors and executive officers, will have a slight increase
in their percentage ownership interest in the Company as a result of the transaction.
Our directors and executive officers currently beneficially own approximately 43.2% of
the outstanding Common Stock and will have their beneficial ownership increased by less
than 22.3% following completion of the Reverse/Forward Stock Split</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We will make no payments to officers and directors in connection with the Reverse/Forward Stock
Split. The executive officers and directors immediately prior to the Reverse/Forward Stock Split
will be the executive officers and directors of the Company immediately following the transaction.
In addition, the Reverse/Forward Stock Split
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> 28 of 34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">will not constitute a change of control or otherwise trigger any payments under any severance,
employment or other agreement with any of our executive officers or directors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company does not presently have any material agreement, arrangement, understanding or intent to
modify the payments or benefits paid to its directors and officers following the Reverse/Forward
Stock Split.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">During the past 2&nbsp;years, Apollo transacted business with the following affiliates:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On May&nbsp;12, 2006, Apollo entered into a Securities Purchase Agreement with Siam Imports,
Inc., a Nevada corporation. Pursuant to the Agreement, the Company sold to Siam all of the
Company&#146;s ownership in Apollo Drilling, LLC, a Texas limited liability company, in
consideration of the issuance to the Company of 13,700,000 restricted shares of common
stock of Siam, which represented an 82.06% in Siam. The assets of Apollo Drilling comprised
of one fully operational drilling rig, two disassembled, partial drilling rigs, an
inventory of drill pipe, and spare equipment. The transaction was valued at roughly
$1,500,000.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On August&nbsp;19, 2005, Apollo entered into a Securities Purchase Agreement to acquire
additional shares of Earth Biofuels, Apollo&#146;s 50%-owned subsidiary. As a consequence of
the acquisition, Apollo owned 80% of the issued and outstanding shares of Earth Biofuels.
Pursuant to the transaction, Apollo issued 6&nbsp;million restricted shares of its common stock
to Earth Biofuels shareholders. The transaction was valued at roughly $3,000,000.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Effective November&nbsp;22, 2006, Apollo entered into a Share Exchange Agreement with Earth
Biofuels, Inc. for the sale of one hundred percent of its fifty-one percent interest in
Apollo LNG, Inc., a Texas company. Under the Agreement, Apollo agreed to sell to Earth
Biofuels all of the issued and outstanding shares of the LNG Business owned by Apollo.
Apollo agreed to receive 9,422,111 shares of the common stock of Earth Biofuels as
consideration for the Apollo LNG Shares. The transaction was valued at roughly
$36,000,000.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="137"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Change of Control</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None.
</DIV>

<DIV align="left">
<A name="138"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Incorporation of Certain Documents by Reference</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following documents filed with the Commission by us are incorporated by reference in this
Information Statement, except for any discussion therein of the &#147;safe harbor&#148; protections for
forward-looking statements provided under The Private Securities Litigation Reform Act of 1995: (i)
the Annual Report on Form 10-KSB for the fiscal year ended December&nbsp;31, 2005 and (ii)&nbsp;the Quarterly
Report on Form 10-QSB for the fiscal quarter ended September&nbsp;30, 2006. Copies of each of the
foregoing documents are attached hereto as Annex B and Annex C, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All documents and reports filed with the Commission under Sections&nbsp;13(a), 13(c), 14 or 15(d) of the
Exchange Act after the date of this Information Statement are not incorporated by reference into
this Information Statement. New material information, if any, will be provided in an amended
Information Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any statement contained in a document incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this Information Statement to the
extent that a statement contained herein (or in any other subsequently filed documents which also
is deemed to be incorporated by reference herein) modifies or supersedes the statement. Any
statement so modified or superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Information Statement.
</DIV>

<DIV align="left">
<A name="139"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Available Information</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are subject to the informational requirements of the Exchange Act and in accordance with
the Exchange Act file reports, proxy statements and other information with the Commission. These
reports, proxy statements and other information can be inspected and copied at the public reference
facilities of the SEC at 100 F Street, N.E., Washington, D.C. 20549. Copies of this material can
also be obtained at prescribed rates by writing to the Public
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio --> 29 of 34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reference Section of the SEC at 100 F Street, N.E., Washington, D.C. 20549. In addition, these
reports, proxy statements and other information are available from the EDGAR filings obtained
through the Commission&#146;s Website (<u>http://www.sec.gov</U>).
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">By Order of the Board of Directors, <BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated:  May 29, 2007&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/S/ Dennis McLaughlin
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Dennis McLaughlin, Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>
<DIV align="left">
<A name="140"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANNEX A-1 &#150; Form of Certificate of Amendment of Certificate of Incorporation to Effect<BR>
Reverse Stock Split</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ARTICLES OF AMENDMENT TO<BR>
ARTICLES OF INCORPORATION OF<BR>
APOLLO RESOURCES INTERNATIONAL, INC.</B>

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the provisions of Section&nbsp;16-10a-1006 of the Utah Revised Business Corporation
Act, the undersigned corporation hereby adopts the following restated articles of incorporation
with an effective date of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: The name of the corporation is Apollo Resources International, Inc. (the &#147;Corporation&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND: The following amendment to the Restated Articles of Incorporation of Apollo
Resources International, Inc. (the &#147;Restated Articles of Incorporation&#148;) was duly adopted by the
board of directors and the shareholders of the corporation on March&nbsp;9, 2007 and April&nbsp;4, 2007:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD: Article&nbsp;III of the Restated Articles of Incorporation is hereby amended by deleting it
in its entirety and replacing it with the following text:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The corporation is authorized to issue only one class of shares, to be designated
common stock (&#147;Common Stock&#148;). The total number of shares of Common Stock that the
Corporation shall have authority to issue is Five Hundred Million (500,000,000).
The Common Stock shall have $.001 par value per share. The Common Stock shall have
unlimited voting rights as provided in the Utah Revised Business Corporation Act
and shall be entitled to receive the net assets of the corporation upon
dissolution. Upon the effectiveness (the &#147;Effective Time&#148;) of these Articles of
Amendment to the Articles of Incorporation, each 65,000 issued shares of Common
Stock, par value $0.001 per share, shall be combined and reclassified into 1
fully-paid and nonassessable share of Common Stock, par value $0.001 per share, of
the Corporation; provided, however, that in lieu of any fractional
interests in shares of Common Stock to which any stockholder who would be entitled only to
receive such fractional interest would otherwise be entitled pursuant hereto
(taking into account all shares of capital stock owned by such stockholder), the
Corporation shall pay in cash for such fractional interest $0.035 per share held by
such stockholder immediately prior to the Effective Time such fractions of a share
as of the Effective Time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH: The number of issued and outstanding shares, all of which were entitled to vote on
the foregoing amendment to the articles of incorporation, was Three Hundred Seventy Six Million
Seven Hundred Thirty Eight Thousand Six Hundred Twenty Two and 00/100 (376,738,622), of which One
Hundred Ninety Seven Million Eight Hundred Ninety Three Thousand Six Hundred Forty Four
(197,893,644) shares were indisputably represented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH: The number of undisputed votes by holders of issued and outstanding shares of the
corporation, cast in favor of the foregoing amendment to the articles of incorporation, was One
Hundred Ninety Seven Million Eight Hundred Ninety Three Thousand Six Hundred Forty Four
(197,893,644). The number of votes by holders of issued and outstanding shares of the corporation,
cast in favor of the foregoing amendment, was sufficient for approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the foregoing Articles of Amendment to the Articles of Incorporation have
been executed this &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">APOLLO RESOURCES INTERNATIONAL, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Dennis McLaughlin, Chief Executive Officer     &nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio --> 1 of 34<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>
<DIV align="left">
<A name="141"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANNEX A-2 &#151; Form of Certificate of Amendment of Certificate of Incorporation to Effect<BR>
Forward Stock Split</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ARTICLES OF AMENDMENT TO<BR>
ARTICLES OF INCORPORATION OF<BR>
APOLLO RESOURCES INTERNATIONAL, INC.</B>

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the provisions of Section&nbsp;16-10a-1006 of the Utah Revised Business Corporation
Act, the undersigned corporation hereby adopts the following restated articles of incorporation
with an effective date of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST: The name of the corporation is Apollo Resources International, Inc. (the &#147;Corporation&#148;)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND: The following amendment to the Restated Articles of Incorporation of Apollo
Resources International, Inc. (the &#147;Restated Articles of Incorporation&#148;) was duly adopted by the
board of directors and the shareholders of the corporation on March&nbsp;9, 2007 and April&nbsp;4, 2007:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD: Article&nbsp;III of the Restated Articles of Incorporation is hereby amended by deleting it
in its entirety and replacing it with the following text:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The corporation is authorized to issue only one class of shares, to be designated
common stock (&#147;Common Stock&#148;). The total number of shares of Common Stock that the
Corporation shall have authority to issue is Five Hundred Million (500,000,000).
The Common Stock shall have $.001 par value per share. The Common Stock shall have
unlimited voting rights as provided in the Utah Revised Business Corporation Act
and shall be entitled to receive the net assets of the corporation upon
dissolution. Upon the effectiveness (the &#147;Effective Time&#148;) of these Articles of
Amendment to the to the Articles of Incorporation, each share of Common Stock that
is issued and outstanding immediately prior to the Effective Time (which shall
include each fractional share in excess of 1 share held by any stockholder), shall
be subdivided and reclassified into 65,000 fully-paid and nonassessable shares of
Common Stock (or, with respect to such fractional shares and interests, such lesser
number of shares and fractional shares or interests as may be applicable based upon
such 65,000 to 1 ratio).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOURTH: The number of issued and outstanding shares, all of which were entitled to vote on
the foregoing amendment to the articles of incorporation, was Three Hundred Seventy Six Million
Seven Hundred Thirty Eight Thousand Six Hundred Twenty Two and 00/100 (376,738,622), of which One
Hundred Ninety Seven Million Eight Hundred Ninety Three Thousand Six Hundred Forty Four
(197,893,644) shares were indisputably represented.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIFTH: The number of undisputed votes by holders of issued and outstanding shares of the
corporation, cast in favor of the foregoing amendment to the articles of incorporation, was One
Hundred Ninety Seven Million Eight Hundred Ninety Three Thousand Six Hundred Forty Four
(197,893,644). The number of votes by holders of issued and outstanding shares of the corporation,
cast in favor of the foregoing amendment, was sufficient for approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the foregoing Articles of Amendment to the Articles of Incorporation have
been executed this &#95;&#95;&#95;day of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, 2007.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">APOLLO RESOURCES INTERNATIONAL, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Dennis McLaughlin, Chief Executive Officer     &nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio --> 1 of 34<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>
<DIV align="left">
<A name="142"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANNEX B &#151; Annual Report on Form&nbsp;10-KSB for the Year Ended December&nbsp;31, 2005</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --> 1 of 34<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="143"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ANNEX C &#151; Quarterly Report on Form&nbsp;10-QSB for the Quarterly Period<BR>
Ended September&nbsp;30, 2006</B>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --> 1 of 34<!-- /Folio -->
</DIV>

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