UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

FORM 10-Q

X . QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

~~SECURITIES~~For ~~EXCHANGE~~the ~~ACT~~quarterly OFperiod ~~1934~~ended March 31, 2010

~~For~~ . ~~Quarter~~TRANSITION ~~Ended:~~REPORT ~~September~~UNDER ~~30,~~SECTION ~~2009~~13 OR 15(d) OF THE EXCHANGE ACT

~~Commission~~For ~~File~~the ~~Number:~~transition ~~000-26673~~period from ______ to _______

~~___________________________________~~Commission File Number 000-26673

WELWIND ENERGY INTERNATIONAL ~~CORP.~~CORPORATION

(Name of ~~Small~~small ~~Business~~business ~~Issuer~~issuer in ~~Its~~its ~~Charter~~charter)

Delaware		98-0207081
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
(State of incorporation)		(I.R.S. Employer Identification No.)

10-20172 113B Avenue, Maple Ridge~~, British Columbia, Canada V2X 0Y9~~

British Columbia, Canada V2X 0Y9

(Address of principal executive offices)

(604) 460-8487

(Registrant'’s telephone number~~, including area code~~)

~~Indicate~~with bya ~~check~~copy ~~mark whether the registrant (1) has filed all reports required~~ to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes S No £:

~~Indicate~~Carrillo ~~by check mark whether the registrant has submitted electronically and posted on its corporate Web site~~Huettel, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes £ No £LLP

~~Indicate~~3033 byFifth ~~check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company~~Ave. ~~See~~Suite ~~definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.~~ 201

~~Large~~San ~~Accelerated~~Diego, ~~Filer~~CA ~~£ Accelerated Filer £ Non-Accelerated Filer £ Smaller Reporting Company S~~92103

~~Indicate~~Telephone ~~by check mark whether the registrant is a shell company~~ (~~as defined in Rule 12b-2 of the Exchange Act~~619). ~~Yes £ No S~~399-3090

~~Issuer’s~~Facsimile ~~revenues~~(619) ~~for its most recent fiscal year: Nil~~399-0120

AsIndicate ofby ~~December~~check ~~14,~~mark ~~2009,~~whether ~~there~~the ~~were~~registrant ~~238,897,692~~(1) ~~shares~~has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant’s ~~Common~~was ~~Stock~~required ~~outstanding~~to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No .

~~WELWIND~~Indicate ~~ENERGY~~by ~~INTERNATIONAL~~check ~~CORPORATION~~mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes . No X .

(AIndicate ~~Development~~by ~~Stage~~check ~~Company)~~mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

~~Report~~Large onaccelerated ~~Form~~filer 10. Accelerated filer . Non-Qaccelerated filer . (Do not check if a smaller reporting company) Smaller reporting company X .

PART I – FINANCIAL INFORMATION
Item 1.	Unaudited Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	29
Item 4.	Controls and Procedures	29
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Default Upon Senior Securities	31
Item 4.	Submission of matters to a Vote of Security Holders	32
Item 5.	Other Information	32
Item 6.	Exhibits	32

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes . No X .

As of May 14, 2010, there were 241,897,692 shares of the registrant’s $.001 par value common stock issued and outstanding.

WELWIND ENERGY INTERNATIONAL CORP.*

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 3.	QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 4.	CONTROLS AND PROCEDURES

PART II. OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS
ITEM 1A.	RISK FACTORS
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
ITEM 5.	OTHER INFORMATION
ITEM 6.	EXHIBITS

*Please note that throughout this Quarterly Report, and unless otherwise noted, the words "we," "our," "us," the "Company," ”Welwind,” or "WWEI" refers to Welwind Energy International Corp.

~~ITEM~~PART 1.I: FINANCIAL ~~STATEMENTS~~INFORMATION

~~PART~~ITEM 1. ~~FINANCIAL STATEMENTS~~

~~Welwind~~FINANCIAL ~~Energy International Corporation~~ STATEMENTS

(AWelwind ~~Development~~Energy ~~Stage~~International ~~Company)~~Corporation

~~September~~(A ~~30,~~Development ~~2009~~Stage Company)

	Index
Consolidated Balance Sheets	4
Consolidated Statements of Operations	5
Consolidated Statements of Cash Flows	6
Notes to the Consolidated Financial Statements	7

March 31, 2010

3Index

~~Welwind~~Consolidated ~~Energy~~Balance ~~International~~Sheets ~~Corporation~~ (unaudited)

~~(A Development Stage Company)~~4

Consolidated ~~Balance~~Statements ~~Sheets~~of Operations (unaudited)

~~(Expressed in Canadian Dollars)~~5

Consolidated Statements of Cash Flows (unaudited)

	September 30, 2009 $	December 31, 2008 $
ASSETS
Current Assets
Cash	9,455	28,734
Taxes recoverable	24,625	16,985
Prepaid expenses (Note 3)	1,104	1,104
Total Current Assets	35,184	46,823
Property and equipment, net (Note 4)	558,657	569,039
Total Assets	593,841	615,862
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	197,130	107,507
Accrued liabilities	178,590	175,090
Due to related parties (Note 5)	1,581,889	1,073,803
Total Liabilities	1,957,609	1,356,400
Commitments and Contingencies (Notes 1 and 8)
Stockholders’ Equity
Preferred Stock:
Authorized: 10,000,000 shares, US $0.001 par value Issued and outstanding: 10,000,000 shares (2008 – 10,000,000 issued and outstanding)	11,137	11,137
Common Stock:
Authorized: 290,000,000 shares, US $0.001 par value Issued and outstanding: 222,747,692 shares (and 198,164,837, respectively)	234,949	218,321
Additional paid-in capital	19,864,721	19,442,170
Accumulated deficit	(21,474,575)	(20,412,166)
Total Stockholders’ Equity	(1,363,768)	(740,538)
Total Liabilities and Stockholders’ Equity	593,841	615,862

~~(The~~Notes ~~accompanying~~to ~~notes~~the ~~are~~Consolidated anFinancial ~~integral~~Statements ~~part of these consolidated financial statements~~(unaudited)

~~Welwind Energy International Corporation~~ 3

(AWelwind ~~Development~~Energy ~~Stage~~International ~~Company)~~Corporation

~~Consolidated~~(A ~~Statements~~Development ofStage ~~Operations~~Company)

~~(Expressed~~Consolidated inBalance ~~Canadian Dollars)~~Sheets

(~~unaudited~~expressed in Canadian dollars)

	For the Three Months Ended September 30, 2009 $	For the Three Months Ended September 30, 2008 $	For the Nine Months Ended September 30, 2009 $	For the Nine Months Ended September 30, 2008 $	Accumulated from August 17, 2006 (Date of inception) to September 30, 2009 $
Revenue	-	-	-	-	-
Operating Expenses			-	-	-
General and Administrative	275,377	1,683,087	983,729	2,698,105	19,209,973
Net Loss from Continuing Operations	(275,377)	(1,683,087)	(983,729)	(2,698,105)	(19,209,973)
Interest Income (Expense)	(30,114)	-	(78,680)	-	(205,689)
Other Income (Expense)	-	(1,302,244)	-	(1,459,522)	-
Impairment of Goodwill	-	-	-	-	(1,714,187)
Loss on Disposal of Property and Equipment	-	-	-	-	(1,000)
Net Loss before Discontinued Operations	(305,491)	(2,985,331)	(1,062,409)	(4,157,627)	(21,130,849)
Discontinued Operations (Note 10)	-	1,367	-	(53,327)	(343,726)
Net Loss and Comprehensive Loss for the Period	(305,491)	(2,983,964)	(1,062,409)	(4,210,954)	(21,474,575)
Net Loss Per Common Share
Continuing Operations – Basic and Diluted	(0.00)	(0.02)	(0.00)	(0.01)
Discontinued Operations – Basic and Diluted	(0.00)	(0.01)	(0.00)	(0.01)
Weighted Average Number of Common Shares Outstanding	209,030,301	181,765,000	203,475,165	163,514,000

(unaudited)

(The accompanying notes are an integral part of these consolidated financial statements)


	March 31, 2010 $	December 31, 2009 $

ASSETS

Current Assets

Cash	6,786	6,741

Amounts receivable	550	1,090

Prepaid expenses	1,773	1,104

Total Current Assets	9,109	8,935

Property and Equipment, net	551,332	555,196

Total Assets	560,441	564,131

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

Current Liabilities

Accounts payable	185,461	164,515

Due to related parties	1,594,835	1,566,738

Total Liabilities	1,780,296	1,731,253

Stockholders’ Equity (Deficit)

Preferred Stock Authorized: 10,000,000 preferred shares, with par value US$0.001 per share Issued and outstanding: 10,000,000 shares	11,137	11,137

Common Stock Authorized: 290,000,000 common shares, with par value US$0.001 per share Issued and outstanding: 241,897,692 and 228,897,692 shares, respectively	265,808	252,131

Additional Paid-In Capital	20,147,882	20,050,569

Deficit accumulated during development stage	(21,644,682)	(21,480,959)

Total Stockholders’ Equity (Deficit)	(1,219,855)	(1,167,122)

Total Liabilities and Stockholders’ Equity (Deficit)	560,441	564,131

5Going Concern (Note 1)

~~Welwind~~Commitments ~~Energy~~and ~~International~~Contingencies ~~Corporation~~(Note 6)

(AThe ~~Development~~accompanying ~~Stage~~notes ~~Company~~are an integral part of these consolidated financial statements)

~~Consolidated Statements of Cash Flows~~4

~~(Expressed~~Welwind inEnergy ~~Canadian~~International ~~Dollars)~~Corporation

(~~unaudited~~A Development Stage Company)

	For the Nine Months Ended September 30, 2009 $	For the Nine Months Ended September 30, 2008 $	Accumulated from August 17, 2006 (Date of inception) to September 30, 2009 $
Operating Activities
Net loss for the period	(1,062,409)	(4,210,954)	(21,474,575)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization	-	-	8,066
Foreign exchange loss and other	-	-	15,410
Stock issued for compensation and services	212,672	1,711,778	14,943,739
Loss on settlement of debt	(17,777)	1,459,522	571,047
Write-off of subscription receivable	-	-	770,310
Imputed interest on shareholder loans	78,684	-	205,693
Depreciation expense	10,382	14,899	48,731
Impairment loss on goodwill	-	-	1,714,187
Gain on cancellation of shares	-	-	(572,901)
Changes in operating assets and liabilities:
Taxes recoverable	-	3,219	(1,011)
Accounts receivable	(7,638)	2,011	(16,985)
Inventory	-	4,870	-
Prepaid expenses	-	116,447	(1,104)
Accounts payable and accrued liabilities	243,121	246,572	648,178
Net Cash Flows Used In Operating Activities	(542,365)	(651,636)	(3,141,215)
Investing Activities
Cash acquired	-	-	2,194
Purchase and construction of equipment	-	(74,550)	(614,223)
Net Cash Flows Used In Investing Activities	-	(74,550)	(612,029)
Financing Activities
Proceeds from subscriptions and issuance of stock	-	357,269	2,165,810
Borrowings on debt	523,086	374,953	2,060,938
Principal payments on debt	-	(12,100)	(464,049)
Net Cash Flows Provided By Financing Activities	523,086	720,122	3,762,699
Decrease in Cash from Discontinued Operations	-	-	5,714
Increase (Decrease) in Cash	(19,279)	(6,064)	9,455
Cash – Beginning of Period	28,734	18,211	-
Cash – End of Period	9,455	12,147	9,455
Supplementary Disclosures
Interest paid	–	–	-
Income taxes paid	–	–	-
Non-cash Investing and Financing Activities
Shares issued for finders fee	-	-	1,188,001
Shares issued to settle debt	165,000	1,883,499	2,287,600

Consolidated Statements of Operations

(~~The~~expressed ~~accompanying~~in ~~notes~~Canadian ~~are an integral part of these consolidated financial statements~~dollars)

6(unaudited)

Welwind Energy International Corporation


	For the Three Months Ended March 31, 2010	For the Three Months Ended March 31, 2009	Accumulated from August 17, 2006 (Date of Inception) to March 31, 2010
	$	$	$

Revenue	–	–	–

Operating Expenses

General and Administrative	132,872	342,306	19,322,990

Total Operating Expenses	132,872	342,306	19,322,990

Loss from Operations	(132,872)	(342,306)	(19,322,990)

Other Income (Expenses)

Interest Expense	(30,851)	(23,529)	(262,779)
Impairment of goodwill	–	–	(1,714,187)
Loss on disposal of property and equipment	–	–	(1,000)

Total Other Income (Expenses)	(30,851)	(23,529)	(1,977,966)

Net Loss from continuing operations	(163,723)	(365,835)	(21,300,956)

Discontinued operations	–	–	(343,726)

Net loss and comprehensive loss	(163,723)	(365,835)	(21,644,682)

Net Loss Per Share – Basic and Diluted Net Loss Per Share – Basic and Diluted
Continuing operations	–	–
Discontinued operations	–	–

Weighted Average Shares Outstanding	238,422,914	200,048,804

(AThe ~~Development~~accompanying ~~Stage~~notes ~~Company~~are an integral part of these consolidated financial statements)

~~Consolidated Statements of Operations~~5

~~(Expressed~~Welwind inEnergy ~~Canadian~~International ~~Dollars)~~Corporation

(~~unaudited~~A Development Stage Company)

1.Consolidated Statements of Cash Flows

~~Nature~~(expressed ofin ~~Operations~~Canadian ~~and Continuance of Business~~dollars)

~~Welwind Energy International Corporation~~ (~~the “Company”~~unaudited) was incorporated in the State of Delaware on December 18, 1997 as Global Golf Holdings Inc. The Company acquired a business on November 23, 2004 to sell and distribute low carbohydrate and sugar-free foods through retail and wholesale outlets in Western British Columbia, Canada, and through the Internet. On August 17, 2006, the Company acquired all of the outstanding and issued share capital of Welwind Energy International Corporation (“WEIC”), a private Canadian company. WEIC was founded in 2005 to build, own and operate wind farms on an international scale. Accordingly, the Company is now involved with wind power projects in China. The Company is based in British Columbia, Canada. On November 24, 2007, the Company discontinued operations of the retail and wholesale foods division to focus specifically on the wind power projects in China.

The Company has not realized revenues on its wind power projects, has a working capital deficiency of $1,922,425 and has an accumulated deficit at September, 2009 of $21,474,575. The Company's ability to continue as a going concern is dependent upon the Company's ability to obtain additional financing and/or achieving a profitable level of operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.


	For the Three Months Ended March 31, 2010	For the Three Months Ended March 31, 2009	Accumulated from August 17, 2006 (Date of Inception) to March 31, 2010
	$	$	$

Operating Activities

Net Loss from continuing operations	(163,723)	(365,835)	(21,300,956)
Net Loss from discontinued operations	-	-	(343,726)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Amortization	–	–	8,066
Depreciation	3,864	3,461	56,056
Foreign exchange loss and other	–	–	15,410
Gain on cancellation of shares	–	–	(572,901)
Impairment loss	–	–	1,714,187
Imputed interest on shareholder loans	30,851	23,529	262,779
Issuance of shares to settle debt	–	24,941	588,224
Issuance of shares for compensation and services	85,217	–	15,459,924
Write-off of subscription receivable	–	–	770,310

Changes in operating assets and liabilities:

Amounts receivable	540	(3,114)	17,348
Accounts receivable	–	–	(16,985)
Prepaid expenses and other	(669)	–	(1,773)
Accounts payable and accrued liabilities	20,946	99,533	307,921

Net Cash Used In Operating Activities	(22,974)	(217,485)	(3,036,116)

Investing Activities

Net cash acquired from acquisition	–	–	2,194
Purchase and construction of equipment	–	–	(614,223)

Net Cash Used In Investing Activities	–	–	(612,029)

Financing Activities

Proceeds from issuance of common shares	25,773	–	2,191,583
Proceeds from related parties, net	(2,754)	205,292	1,921,683
Repayment of debt	–	–	(464,049)

Net Cash Provided By Financing Activities	23,019	205,292	3,649,217

Net cash used in discontinued operations	–	–	5,714

Increase (Decrease) in Cash	45	(12,193)	6,786

Cash – Beginning of Year	6,741	28,734	–

Cash – End of Year	6,786	16,541	6,786

Supplemental Disclosures

Interest paid	–	–	–
Income tax paid	–	–	–

~~Management of the Company has undertaken a plan with the goal of sustaining the Company’s operations for the next twelve months and beyond. These steps include:~~ (a)The ~~becoming~~accompanying ~~cash~~notes ~~flow~~are ~~positive~~an ~~via~~integral ~~the~~part ~~Company’s Zhanjiang turbine and a Power Purchase Agreement from the local power authority, (b) continue efforts to raise significant additional capital and/or other forms~~ of ~~financing with Acterra Group and Adventis Capital; and (c) controlling overhead expenses. There can be no assurance that any of~~ these ~~efforts~~consolidated ~~will~~financial ~~be successful.~~ statements)

~~Recently Issued Accounting Pronouncements~~ 6

InWelwind ~~August~~Energy ~~2009,~~International ~~the~~Corporation FASB issued an amendment to the accounting standards related to the measurement of liabilities that are recognized or disclosed at fair value on a recurring basis. This standard clarifies how a company should measure the fair value of liabilities and that restrictions preventing the transfer of a liability should not be considered as a factor in the measurement of liabilities within the scope of this standard. This standard is effective for the Company on October 1, 2009. The Company does not expect the impact of its adoption to be material to its financial statements.

In(A ~~October~~Development ~~2009,~~Stage the FASB issued an amendment to the accounting standards related to the accounting for revenue in arrangements with multiple deliverables including how the arrangement consideration is allocated among delivered and undelivered items of the arrangement. Among the amendments, this standard eliminated the use of the residual method for allocating arrangement considerations and requires an entity to allocate the overall consideration to each deliverable based on an estimated selling price of each individual deliverable in the arrangement in the absence of having vendor-specific objective evidence or other third party evidence of fair value of the undelivered items. This standard also provides further guidance on how to determine a separate unit of accounting in a multiple-deliverable revenue arrangement and expands the disclosure requirements about the judgments made in applying the estimated selling price method and how those judgments affect the timing or amount of revenue recognition. This standard, for which the Company ~~is currently assessing the impact, will become effective for the Company on January 1, 2011.~~)

InNotes ~~October 2009, the FASB issued an amendment~~ to the ~~accounting~~Consolidated ~~standards~~Financial related to certain revenue arrangements that include software elements. This standard clarifies the existing accounting guidance such that tangible products that contain both software and non-software components that function together to deliver the product’s essential functionality, shall be excluded from the scope of the software revenue recognition accounting standards. Accordingly, sales of these products may fall within the scope of other revenue recognition standards or may now be within the scope of this standard and may require an allocation of the arrangement consideration for each element of the arrangement. This standard, for which the Company is currently assessing the impact, will become effective for the Company on January 1, 2011.Statements

7(expressed in Canadian dollars)

~~Welwind Energy International Corporation~~ 1.

(ANature ~~Development~~of ~~Stage~~Operations ~~Company)~~and Continuance of Business

~~Consolidated~~Welwind ~~Statements~~Energy International Corporation (the “Company”) was incorporated in the State of ~~Operations~~Delaware on December 18, 1997 as Global Golf Holdings Inc. The Company acquired a business on November 23, 2004 to sell and distribute low carbohydrate and sugar-free foods through retail and wholesale outlets in Western British Columbia, Canada, and through the Internet. On August 17, 2006, the Company acquired all of the outstanding and issued share capital of Welwind Energy International Corporation (“WEIC”), a private Canadian company. WEIC was founded in 2005 to build, own and operate wind farms on an international scale. Accordingly, the Company is now involved with wind power projects in China. The Company is based in Brtish Columbia, Canada. On November 24, 2007, the Company discontinued operations of the retail and wholesale foods division to focus specifically on the wind power projects in China.

~~(Expressed~~The inCompany ~~Canadian~~has ~~Dollars)~~not realized revenues on its wind power projects, has a working capital deficiency of $1,771,187 and has an accumulated deficit at March 31, 2010 of $21,644,682. The Company's ability to continue as a going concern is dependent upon the Company's ability to obtain additional financing and/or achieving a profitable level of operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Management of the Company has undertaken a plan with the goal of sustaining the Company’s operations for the next twelve months and beyond. These steps include: (~~unaudited~~a) becoming cash flow positive via the Company’s Zhanjiang turbine and a Power Purchase Agreement from the local power authority, (b) continue efforts to raise significant additional capital and/or other forms of financing with Acterra Group and Adventis Capital; and (c) controlling overhead expenses. There can be no assurance that any of these efforts will be successful.

12.

~~Nature~~Summary of ~~Operations~~Significant ~~and~~Accounting ~~Continuance of Business, (cont’d)~~Policies

~~Recently Adopted Accounting Pronouncements, (cont’d~~a)

~~Effective~~Basis ~~June 30, 2009, the Company adopted a new accounting standard issued by the FASB related to the disclosure requirements~~ of ~~the~~Presentation fair value of the financial instruments. This standard expands the disclosure requirements of fair value (including the methods and significant assumptions used to estimate fair value) of certain financial instruments to interim period financial statements that were previously only required to be disclosed in financial statements for annual periods. In accordance with this standard, the disclosure requirements have been applied on a prospective basis and did not have a material impact on the Company’s financial statements.

InThese ~~June~~consolidated ~~2009,~~financial ~~the~~statements ~~Financial~~and ~~Accounting~~related ~~Standards~~notes ~~Board~~are ~~("FASB")~~presented ~~established~~in ~~the~~accordance ~~FASB~~with ~~Accounting Standards Codification ( the "Codification") as the source of authoritative~~ accounting principles ~~recognized~~generally byaccepted in the ~~FASB~~United toStates, beand ~~applied~~are byexpressed ~~non-governmental entities~~ in ~~the~~Canadian ~~preparation~~dollars. ofThese consolidated financial statements ininclude ~~conformity~~the ~~with~~accounts ~~GAAP. Rules and interpretive releases~~ of the ~~Securities~~Company and ~~Exchange~~its ~~Commission~~wholly-owned ~~("SEC")~~subsidiary, ~~under~~WEIC, ~~authority~~incorporated ofin ~~federal~~the ~~securities~~Province ~~laws are also sources~~ of ~~authoritative~~Alberta, ~~GAAP for SEC registrants~~Canada. ~~The~~All ~~introduction~~significant ofintercompany ~~the~~balances ~~Codification does not change GAAP~~ and ~~other~~transactions ~~than~~have ~~the~~been ~~manner~~eliminated. inThe ~~which~~Company’s ~~new~~fiscal ~~accounting~~year-end ~~guidance~~ is ~~referenced,~~December ~~the adoption of these changes had no impact on the our consolidated financial statements~~31.

2.b)

~~Summary~~Use of ~~Significant Accounting Policies~~Estimates

a)The preparation of these consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to goodwill and purchased intangible asset valuations, stock-based compensation expense, deferred income tax asset valuation allowance and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

~~Basis of Presentation~~ c)

~~These~~Interim ~~interim~~Financial consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in Canadian dollars. These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, WEIC, incorporated in the Province of Alberta, Canada. All significant intercompany balances and transactions have been eliminated. The Company’s fiscal year-end is December 31.Statements

b)These interim unaudited financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

~~Interim Consolidated Financial Statements~~d)

~~The~~Cash ~~interim unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information~~ and ~~with~~Cash the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2008, included in the Company’s Annual Report on Form 10-K filed on May 18, 2009 with the SEC.Equivalents

~~The~~Cash ~~consolidated~~consists ~~financial~~of ~~statements~~bank ~~included~~accounts ~~herein~~held ~~are~~at ~~unaudited;~~financial ~~however,~~institutions ~~they contain all normal recurring accruals and adjustments that,~~ in the ~~opinion~~United ofStates, ~~management~~Canada, ~~are~~and ~~necessary~~China. toThe ~~present fairly the~~ Company’s ~~consolidated~~considers ~~financial~~all ~~position~~highly atliquid ~~September~~instruments ~~30,~~with ~~2009,~~a ~~and~~maturity ~~the consolidated results~~ of ~~its operations and consolidated cash flows for the~~ three months ~~ended~~or ~~September 30~~less, ~~2009~~at ~~and~~the ~~2008.~~time ~~The results~~ of ~~operations for the three months ended September 30~~issuance, ~~2009 are not necessarily indicative of the results~~ to be ~~expected~~cash ~~for future quarters or the full year~~equivalents.

Welwind Energy International Corporation

(A Development Stage Company)

~~Consolidated~~Notes ~~Statements~~to ofthe ~~Operations~~Consolidated Financial Statements

(~~Expressed~~expressed in Canadian ~~Dollars~~dollars)

~~(unaudited)~~2.

2.Summary of Significant Accounting Policies (continued)

~~Summary of Significant Accounting Policies (cont’d~~e)

c)Property and Equipment

~~Use~~Property and equipment are recorded at cost and is depreciated using the straight line basis over the estimated useful lives of ~~Estimates~~the related asset. Maintenance and repairs are charged to expense as incurred. Significant renewals and betterments are capitalized. Costs included in wind equipment are under construction and will be amortized over their useful life on a straight-line basis once they are put into use.

The preparation of consolidated financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to goodwill and purchased intangible asset valuations, stock-based compensation expense, deferred income tax asset valuation allowance and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. f)

d)Long-Lived Assets

~~Cash~~In accordance with ASC 360, Property Plant and ~~Cash~~Equipment, ~~Equivalents~~the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

Cash consists of bank accounts held at financial institutions in the United States, Canada, and China. The Company considers all highly liquid instruments with a maturity of three months or less, at the time of issuance, to be cash equivalents. g)

e)Foreign Currency Translation

~~Property~~The Company's functional and ~~Equipment~~reporting currency is the Canadian dollar. Monetary assets and liabilities denominated in foreign currencies are translated to Canadian dollars in accordance with FASB Pronouncements using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions are included in the determination of net income or loss. Foreign currency transactions are primarily undertaken in Chinese Renminbi. At December 31, 2009, the exchange rate for one Chinese Renminbi was $0.1533 CAD (2008 - $0.1548CAD). For the period from January 1, 2009 to December 31, 2009, the average exchange rate for one Chinese Renminbi was $0.1671 CAD (2008 - $0.1459 CAD). The Company has not, to the date of these consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Equipment is recorded at cost and is depreciated using the declining balance method over the estimated useful lives of the related asset. Maintenance and repairs are charged to expense as incurred. Significant renewals and betterments are capitalized. Costs included in wind equipment are under construction and will be amortized over their useful life on a straight-line basis once they are put into use.h)

f)Comprehensive Loss

~~Customer~~ASC ~~Relationships~~220, Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the consolidated financial statements. As at March 31, 2010 and December 31, 2009, the Company had no items representing comprehensive income/loss.

~~Customer relationships consist of the relationships the Company has attained with the various levels of governments in China, which resulted in the entering of two agreements as noted in Note 8(a~~i) and (b). The Company will amortize the carrying value of the customer relationships on a straight-line basis over the remaining estimated useful lives of the wind power plants upon commencement of the commercial production of electricity.

g)Stock-based Compensation

~~Revenue~~The ~~Recognition~~Company records stock-based compensation in accordance with ASC 718, Compensation – Stock Based Compensation, using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

~~The Company recognizes revenue in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104 (“SAB 104”), “Revenue Recognition in Financial Statements”.~~ 8

h)Welwind Energy International Corporation

~~Long-Lived~~(A ~~Assets~~Development Stage Company)

~~The~~Notes Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could initiate a review include, but are not limited to: ~~significant decreases in~~ the ~~market~~Consolidated ~~price~~Financial of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Statements

9(expressed in Canadian dollars)

~~Welwind Energy International Corporation~~ 2.

(ASummary ~~Development~~of ~~Stage~~Significant ~~Company~~Accounting Policies (continued)

~~Consolidated Statements of Operations~~j)

~~(Expressed~~Financial inInstruments ~~Canadian~~and ~~Dollars)~~Concentrations of Business

~~(unaudited)~~The fair values of financial instruments including cash, accounts receivable, accounts payable, accrued liabilities and amounts due to related parties were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. The Company’s operations are in Canada and China resulting in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company’s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

2.k)

~~Summary~~Recently ofIssued ~~Significant~~ Accounting ~~Policies~~Pronouncements ~~(cont’d)~~

~~Recoverability~~In isAugust ~~assessed~~2009, ~~based~~FASB onissued an amendment to the ~~carrying~~accounting ~~amount~~standards ofrelated to the ~~asset~~measurement ~~and~~of ~~its~~liabilities ~~fair~~that ~~value~~are ~~which~~recognized isor ~~generally~~disclosed ~~determined~~at ~~based~~fair value on ~~the~~a ~~sum~~recurring ofbasis. ~~the~~This ~~undiscounted~~standard ~~cash~~clarifies ~~flows~~how ~~expected~~a tocompany ~~result~~should ~~from~~measure the ~~use~~fair value of liabilities and ~~the~~that ~~eventual~~restrictions ~~disposal~~preventing the transfer of ~~the~~a ~~asset,~~liability asshould ~~well~~not be considered as ~~specific~~a ~~appraisal~~factor in ~~certain~~the ~~instances.~~measurement Anof ~~impairment~~liabilities ~~loss~~within the scope of this standard. This standard is ~~recognized~~effective ~~when~~for the ~~carrying~~Company ~~amount~~on isOctober 1, 2009. The adoption of this amendment did not ~~recoverable~~have ~~and~~a ~~exceeds~~material ~~fair~~effect ~~value~~on the Company’s consolidated financial statements.

i)In October 2009, FASB issued an amendment to the accounting standards related to the accounting for revenue in arrangements with multiple deliverables including how the arrangement consideration is allocated among delivered and undelivered items of the arrangement. Among the amendments, this standard eliminated the use of the residual method for allocating arrangement considerations and requires an entity to allocate the overall consideration to each deliverable based on an estimated selling price of each individual deliverable in the arrangement in the absence of having vendor-specific objective evidence or other third party evidence of fair value of the undelivered items. This standard also provides further guidance on how to determine a separate unit of accounting in a multiple-deliverable revenue arrangement and expands the disclosure requirements about the judgments made in applying the estimated selling price method and how those judgments affect the timing or amount of revenue recognition. This standard, for which the Company is currently assessing the impact, will become effective on January 1, 2011.

~~Foreign~~In ~~Currency~~October ~~Translation~~2009, the FASB issued an amendment to the accounting standards related to certain revenue arrangements that include software elements. This standard clarifies the existing accounting guidance such that tangible products that contain both software and non-software components that function together to deliver the product’s essential functionality, shall be excluded from the scope of the software revenue recognition accounting standards. Accordingly, sales of these products may fall within the scope of other revenue recognition standards or may now be within the scope of this standard and may require an allocation of the arrangement consideration for each element of the arrangement. This standard, for which the Company is currently assessing the impact, will become effective on January 1, 2011.

~~The~~In ~~Company's~~January ~~functional~~2010, ~~and~~the ~~reporting~~FASB ~~currency~~issued isan ~~the~~amendment ~~Canadian~~to ~~dollar.~~ASC ~~Monetary~~505, ~~assets~~Equity, ~~and~~where ~~liabilities~~entities ~~denominated~~that indeclare ~~foreign~~dividends ~~currencies~~to ~~are~~shareholders ~~translated~~that tomay ~~Canadian~~be ~~dollars~~paid ~~using~~in ~~the~~cash ~~exchange~~or ~~rate~~shares ~~prevailing~~ at the ~~balance~~election ~~sheet date. Gains and losses arising on settlement~~ of ~~foreign~~the ~~currency~~shareholders ~~denominated transactions~~ are ~~included~~considered into ~~the~~be ~~determination~~a ofshare ~~net~~issuance ~~income~~that oris ~~loss.~~reflected ~~Foreign~~prospectively ~~currency transactions are primarily undertaken~~ in ~~Chinese Renminbi. At September 30~~EPS, ~~2009,~~and ~~the~~is ~~exchange~~not ~~rate~~accounted for ~~one~~as ~~Chinese~~a ~~Renminbi~~stock ~~was $0~~dividend.~~1570~~ ~~CAD~~This ~~(2008~~standard -is ~~$0.1548CAD).~~effective ~~For~~for ~~the~~interim ~~period~~and ~~from~~annual ~~January~~periods 1,ending ~~2009~~on toor ~~September~~after 30December 15, 2009, ~~the~~and ~~average~~is ~~exchange~~to ~~rate~~be ~~for~~applied ~~one~~on ~~Chinese~~a ~~Renminbi~~retrospective ~~was $0~~basis.~~1713~~ ~~CAD (2008 - $0.1459 CAD).~~ The ~~Company~~adoption ~~has not, to the date~~ of ~~these~~this ~~consolidated~~standard ~~financial~~is ~~statements,~~not ~~entered~~expected ~~into~~to ~~derivative~~have ~~instruments~~a tosignificant ~~offset~~impact on the ~~impact~~Company’s ofconsolidated ~~foreign~~financial ~~currency fluctuations~~statements.

j)In January 2010, the FASB issued an amendment to ASC 820, Fair Value Measurements and Disclosure, to require reporting entities to separately disclose the amounts and business rationale for significant transfers in and out of Level 1 and Level 2 fair value measurements and separately present information regarding purchase, sale, issuance, and settlement of Level 3 fair value measures on a gross basis. This standard, for which the Company is currently assessing the impact, is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair value measures which are effective for fiscal years beginning after December 15, 2010.

~~Comprehensive~~The ~~Loss~~Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its consolidated financial statements.

As at September 30, 2009 and 2008, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the consolidated financial statements.9

k)Welwind Energy International Corporation

~~Basic~~(A ~~and~~Development ~~Diluted~~Stage ~~Net Income (Loss~~Company) ~~Per Share~~

~~Basic~~Notes ~~EPS is computed by dividing net income (loss) available~~ to ~~common shareholders (numerator) by~~ the ~~weighted~~Consolidated ~~average~~Financial number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares since their effect is anti-dilutive. Statements

l(expressed in Canadian dollars)

~~Stock-based Compensation~~2.

~~The~~Summary ~~Company records stock-based compensation using the fair value method. All transactions in which goods or services are the consideration received for the issuance~~ of ~~equity~~Significant ~~instruments~~Accounting ~~are~~Policies accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.(continued)

ml)

~~Financial Instruments and Concentrations of Business~~Reclassifications

~~The~~Certain ~~fair~~reclassifications ~~values~~have ofbeen ~~financial~~made ~~instruments including cash, accounts receivable, accounts payable, accrued liabilities and amounts due~~ to ~~related parties were estimated to approximate their carrying values due to~~ the ~~immediate~~prior ~~or short-term maturity of these financial instruments. The Company~~period’s ~~operations~~consolidated ~~are~~financial instatements ~~Canada and China resulting in exposure~~ to ~~market~~conform ~~risks from changes in foreign currency rates. The financial risk is the risk~~ to the ~~Company~~current period’s ~~operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates~~presentation. ~~Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.~~

103.

~~Welwind~~Property ~~Energy~~and ~~International Corporation~~ Equipment

(A Development Stage Company)


	Cost $	Accumulated Depreciation $	March 31, 2010 Net Carrying Value $	December 31, 2009 Net Carrying Value $


Wind equipment under construction	521,037	–	521,037	521,037
Automobile	70,843	47,727	23,116	24,990
Computer hardware	11,651	11,094	557	2,378
Office furniture and equipment	11,798	5,176	6,622	6,791

	615,329	63,997	551,332	555,196

~~Consolidated~~The ~~Statements~~wind equipment under construction relates to the Company’s wind farm projects. As the capital assets have not been placed in use, no depreciation of ~~Operations~~the wind equipment has been recorded for the period ended March 31, 2010.

~~(Expressed in Canadian Dollars)~~4.

~~(unaudited)~~Related Party Transactions/Balances

2.a)

~~Summary~~As ofat ~~Significant~~March ~~Accounting~~31, ~~Policies~~2010, the Company owes $1,419,568 (~~cont’d~~2009 - $1,405,536) to the President of the Company and spouse of the President of the Company for financing of general operations. The amounts are unsecured, non-interest bearing, and due on demand.

nb)

~~Discontinued~~As ~~Operations~~at March 31, 2010, the Company owes $175,267 (2009 - $161,202) to a director of the Company for financing of general operations. The amounts are unsecured, non-interest bearing, and due on demand.

~~Certain~~For ~~amounts have been reclassified to present~~ the ~~Company’s~~period ~~discontinuance~~ended ofMarch ~~its~~31, ~~retail and wholesale foods division~~2010, asimputed ~~discontinued~~interest ~~operations.~~of ~~Unless otherwise indicated~~$30,851 ~~information~~has ~~presented~~been inrecorded ~~the~~on ~~notes~~all toamounts ~~the~~owing ~~financial statements relates only~~ to ~~the~~related ~~Company’s~~parties ~~continuing~~at ~~operations.~~an ~~Information~~annual ~~relating~~interest torate ~~discontinued~~of ~~operations is included in Note 10~~8%.

o)5.

~~Income~~Common ~~Taxes~~Stock

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these consolidated financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. a)

pOn January 8, 2010, the Company issued 5,000,000 common shares at $0.005 per share for proceeds of $25,000 (Cdn$25,773).

~~Reclassifications~~b)

~~Certain~~On ~~reclassifications~~January ~~have~~29, ~~been~~2010, ~~made~~the toCompany ~~the~~issued ~~prior~~7,000,000 ~~period’s~~common ~~consolidated~~shares ~~financial~~at ~~statements~~$0.01 toper ~~conform~~share to settle outstanding consulting services of $70,000 (Cdn$74,851) based on the ~~current~~market ~~period~~price of the Company’s ~~presentation~~common stock on the date of issuance.

3.c)

~~Prepaid~~On ~~Expense~~March ~~and~~2, ~~Other~~2010, ~~Long-term~~the ~~Assets~~Company issued 1,000,000 common shares at $0.01 per share to settle outstanding professional fees of $10,000 (Cdn$10,365) based on the market price of the Company’s common stock on the date of issuance.

	September 30, 2009 $	December 31, 2008 $
Consulting	-	-
Other	1,104	1,104
Total	1,104	1,104

AsWelwind atEnergy ~~September~~International ~~30,~~Corporation ~~2009, the Company has non-current prepaid expenses of $nil (December 31, 2008 - $nil) relating to consulting costs as all amounts are fully vested at December 31, 2008.~~

11(A Development Stage Company)

~~Welwind~~Notes ~~Energy~~to ~~International~~the ~~Corporation~~Consolidated Financial Statements

(Aexpressed ~~Development~~in ~~Stage~~Canadian ~~Company~~dollars)

~~Consolidated Statements of Operations~~6.

~~(Expressed~~Commitments ~~in Canadian Dollars)~~

~~(unaudited~~a)

4The Company entered into an agreement dated January 18, 2006, with the Government of Yangxi City (“Yangxi”) for the development of a wind farm producing a total of 400,000 kilowatt (“KW”) per year of electrical power in the next ten years. Yangxi will assist the Company in securing land, sale price for the electricity, financing of the project, and preferential tax treatment. Initially, the Company will be required to prepare a community wind assessment and a feasibility study for approval. Yangxi can terminate the agreement if the project is not under construction within 24 months of signing the agreement. As at March 31, 2010, the agreement is in good standing.

~~Property and Equipment~~b)

	Cost $	Accumulated Depreciation $	September 30, 2009 Net Carrying Value $	December 31, 2008 Net Carrying Value $
Wind equipment under construction	521,037	–	521,037	521,037
Automobile	70,843	43,177	27,666	35,700
Computer hardware	11,651	8,678	2,973	4,755
Office furniture and equipment	11,798	4,817	6,981	7,547
	615,329	56,672	558,657	569,039

The Company entered into an agreement dated March 21, 2006, with the Zhanjiang Foreign Trade & Economic Bureau (“Zhanjiang”) for the development of a wind power generation project in Zhanjiang City in the Guangdong Province. The project is expected to produce up to 600,000 KW of electrical power per year, with Phase 1 being 100,000 KW per year. The Company had six months from the date of the agreement to begin Phase 1 (commenced) or Zhanjiang had the right to terminate the agreement. The Company granted a 20% interest in this project to an investor.

The wind equipment under construction relates to the Company’s wind farm projects, as disclosed in Note 8. As the capital assets have not been placed in use, no depreciation of the wind equipment has been recorded for the three month period ended September 30, 2009. c)

AsThe atCompany ~~September 30~~rents, ~~2009,~~on ~~the~~a ~~Company~~month-to-month ~~had~~basis, ~~equipment~~its ~~held~~industrial ~~for~~and ~~sale~~office ~~with~~space afor ~~net carrying value of~~ $1,~~858~~726 ~~(December~~per 31month, ~~2008~~office -space in China for approximately $21,~~224)~~000 ~~related~~per tomonth ~~discontinued~~and ~~operations.~~warehouse ~~Refer~~space tofor ~~Note~~$1,791 10per month.

5.11

~~Related~~ITEM ~~Party Transactions/Balances~~2.

a)MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION

~~As at September 30, 2009, the balance due to related parties amounted to $1,230,593 (December 31, 2008~~ FORWARD-LOOKING $912,601), which includes $330,538 (December 31, 2008 - $233,438) owed to the former President of the Company for management fees and working capital purposes and $900,055 (December 31, 2008 - $679,163) owed to the Newly appointed President and spouse of the former President of the Company for working capital purposes. The amounts are unsecured, non-interest bearing, and due on demand.STATEMENTS

bThis Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections. We may use words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “foresee,” “estimate” and variations of these words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted. You should read this report completely and with the understanding that actual future results may be materially different from what we expect. The forward looking statements included in this report are made as of the date of this report and should be evaluated with consideration of any changes occurring after the date of this Report. We will not update forward-looking statements even though our situation may change in the future and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

As at September 30, 2009, the Company owes $351,296 (December 31, 2008 - $161,209) to shareholders for advances to the Company and expenses paid on behalf of the Company. Of this amount, $112,798 (December 31, 2008 - $112,798) is unsecured, bears interest at 10% per annum, and is due on demand. The remaining balance of $238,507 (December 31, 2008 - $48,404) is unsecured, non-interest bearing, and payable on demand. BUSINESS

6.Overview

~~Preferred~~We ~~Stock~~see wind power becoming an efficient power source globally. Welwind’s current projects focus is in the wind energy sector with future renewable energy applications under consideration. Renewable energy is power that comes from renewable resources such as the sun, wind and organic matter. These resources are constantly replenished by nature and are a cleaner source of energy. Welwind’s goal is to add more renewable energy globally, resulting in cleaner air and a more stable energy supply for our future.

OnWelwind ~~September~~Energy ~~29,~~International ~~2006,~~was ~~the~~founded ~~Company~~to ~~entered into a Stock Purchase Agreement for a private placement consisting of 10~~build,~~000,000~~ ~~shares~~own ~~of preferred stock for cash proceeds of $556,855 (US$500,000)~~ and ~~2,000,000~~operate ~~shares~~wind offarms ~~common~~on ~~stock~~an ~~for~~international ~~cash proceeds of $111,371 (US$100,000)~~scale. ~~The~~Our ~~Company~~current ~~also~~project ~~issued,~~focus is to bridge the ~~investor,~~North aAmerica-China ~~20%~~link ~~interest~~by inbuilding ~~its Zhanjiang~~ wind ~~far~~farms ~~project described~~ in ~~Note 8(b)~~China. The ~~preferred~~Company ~~stock~~will isalso ~~convertible~~work ~~into common stock,~~ on aextending ~~one-for-one~~its ~~basis~~business ~~commencing~~plan ~~August~~into ~~17,~~other ~~2007.~~markets Asincluding atCanada ~~September~~and ~~30,~~the ~~2009,~~United ~~there are 10,000,000 shares of preferred stock issued and outstanding~~States.

12Our Corporate History

~~Welwind~~The ~~Energy~~Company ~~International~~was incorporated on December 18, 1997, pursuant to the laws of the State of Delaware under the name of Autoeye Inc. On February 25, 2000, as part of an acquisition of The Forest Industry Online Inc., we changed our name to forestindustry.com, Inc. Prior to this acquisition, our Company was inactive. On October 25, 2002, we entered into a share exchange agreement with GolfLogix, Inc., a British Columbia, Canada Corporation (“GolfLogix Canada”). After our acquisition of GolfLogix Canada, on November 30, 2002, we entered into a stock purchase agreement with Cherry Point Consulting, resulting in a divestiture of the assets of Forest Industry Online. Under the agreement, Cherry Point Consulting purchased shares of Forest Industry Online and assumed all of the related assets and liabilities of the same. On January 7, 2003, we changed our name to Global Golf Holdings, Inc.

(AOn ~~Development~~November ~~Stage~~23, 2004 the Company closed on the Agreement with Low Carb Centre and affiliates (hereinafter “LCC”). LCC is a privately held company organized under the laws of British Columbia, Canada with its primary business being the retail sales and distribution of gourmet low carbohydrate food products through its traditional retail stores and online. Soon after, on November 29, 2004 the Company changed its name to Vitasti, Inc.

~~Consolidated~~On ~~Statements~~April 11, 2006, the Company and Welwind Energy International Corporation, a Corporation duly incorporated under the laws of ~~Operations~~the Province of Alberta, Canada, and the shareholders of Welwind Energy International Corporation (the “Shareholders”), entered into a Share Exchange Agreement (the ‘Agreement”). The Agreement was closed on the 17th of August 2006. Per the Agreement, the Company acquired 100% of Welwind Energy International Corporation (“WWEI”), and on October 26, 2006, the Company filed in the office of the Secretary of State for the State of Delaware a Certificate of Amendment to the Company’s Certificate of Incorporation, causing the name of the Company to be changed from Vitasti, Inc. to Welwind Energy International Corp.

~~(Expressed in Canadian Dollars)~~12

~~(unaudited)~~Recent Business Developments

7The Zhanjiang Government and Zhanjiang Development and Reform Commission jointly held a meeting on January 10, 2010, to discuss the relocation of Welwind Energy International's Zhanjiang wind farm project. Welwind was informed that the two government bodies reached a consensus to relocate the Company's project to Nansan Island (Nansandao) in Guangzhou. Nansan Island is located approximately 8 miles from the Zhanjiang Airport with a short ferry ride from the mainland. Nansan Island occupies an area of 123.4 square kilometers, with a coastline of 83 kilometers. Nansan Island is a famous tourist location and has a population of 72,000. It is expected that the power generated from the Company's wind farm will be sent to the mainland utilizing a local bridge connecting Nansan and Potou District of Zhanjiang, which is currently under construction and it is expected to be completed this year.

~~Common~~During ~~Stock~~the meetings held between the Company, Zhanjiang Government and Zhanjiang Development and Reform Commission, it was stated that final approval will be issued in March or April. Welwind has agreed to the relocation to Nansan Island and will review final documentation supplied to the Company by the Government and Commission in March/April.

aOur initial projects in China will be considered, at least initially, small scale wind power wind farms, which the name is given to wind generation systems with the capacity to produce 50 kW or less of electrical power. Isolated communities, that otherwise rely on diesel generators, may use wind turbines to displace diesel fuel consumption. Individuals may purchase these systems to reduce or eliminate their dependence on grid electricity for economic or other reasons, or to reduce their carbon footprint. Wind turbines have been used for household electricity generation in conjunction with battery storage over many decades in remote areas. Increasingly, U.S. consumers are choosing to purchase grid-connected turbines in the 1 to 10 kilowatt range to power their whole homes. Household generator units of more than 1kW are now functioning in several countries, and in every state in the U.S. Grid-connected wind turbines may use grid energy storage, displacing purchased energy with local production when available. Off-grid system users can either adapt to intermittent power or use batteries, photovoltaic or diesel systems to supplement the wind turbine. In urban locations, where it is difficult to obtain predictable or large amounts of wind energy (little is known about the actual wind resource of towns and cities), smaller systems may still be used to run low power equipment. Equipment such as parking meters or wireless Internet gateways may be powered by a wind turbine that charges a small battery, replacing the need for a connection to the power grid, making the potential carbon savings of small wind turbines difficult to determine.

OnOrganizational August 26, 2009, the Company issued 5,000,000 common shares of the Company with a total value of $98,802 based on the closing price of the Company’s common stock on the date of issuance in relation to services rendered.Structure

b)Our current organizational structure is summarized by the illustration below:

[welwind10q033110001.jpg]

OnOverview ~~June 16, 2009, the Company issued 5,000,000 common shares~~ of ~~the~~our ~~Company with a total value of $113,270 based on the closing price of the Company’s common stock on the date of issuance in relation to services rendered.~~ Industry

c)The Company is engaged in the research, development and construction of wind farms, primarily involving small scale wind power. Our ultimate goal is to build small to medium scale wind farms of which our company has operating control. It is our goal to have our wind farm connected to the general utility electric grid to produce clean, environmentally-sound wind power for use by the electric power industry.

OnOur ~~June~~Management ~~16,~~has ~~2009,~~been involved in the ~~Company~~wind ~~cancelled~~power industry for more than 10~~,000,000~~ ~~common~~years. ~~shares~~We ofhave experience in the ~~Company~~design, ~~with~~manufacture, amaintenance ~~total~~and ~~value~~sale of ~~$226~~wind turbines,~~540~~ ~~based~~as onwell as the ~~closing~~full-scale ~~price~~development of ~~the~~wind ~~Company’s~~farms. ~~common~~We ~~stock~~hold oncontract rights, are involved with projects in development and under negotiation, and provide development activities in the ~~date~~wind ofpower ~~cancellation~~industry.

d)13

OnA ~~May~~wind ~~29,~~farm ~~2009,~~is a group of wind turbines in the ~~Company~~same ~~issued~~location ~~11,500,000~~used ~~common~~for ~~shares~~production of ~~the~~electric ~~Company~~power. Individual turbines are interconnected with a ~~total~~medium ~~value~~voltage of(usually ~~$252~~34.5 kV) power collection system and communications network. At a substation,~~103~~ ~~based~~this onmedium-voltage ~~the~~electrical ~~closing~~current ~~price~~is ofincreased ~~the~~in ~~Company’s~~voltage ~~common~~with ~~stock~~a ontransformer for connection to the ~~date~~high voltage transmission system. A large wind farm may consist of ~~issuance~~a infew ~~relation~~dozen to ~~services~~about ~~rendered~~100 individual wind turbines, and cover an extended area of hundreds of square miles (square kilometers), but the land between the turbines may be used for agricultural or other purposes. A wind farm may be located off-shore to take advantage of strong winds blowing over the surface of an ocean or lake.

eA new Carbon Trust study into the potential of small-scale wind energy has found that small wind turbines could provide up to 1.5 terawatt hours (TW·h) per year of electricity and 0.6 million tonnes of carbon dioxide (Mt CO2) emission savings. This is based on 10% of households installing turbines at costs competitive with grid electricity, which is currently around 12p per kilowatt-hour.

OnDistributed ~~February~~generation 4,from ~~2009,~~renewable ~~the~~resources ~~Company~~is ~~issued~~increasing ~~1,582,855~~as ~~common~~a ~~shares~~consequence of the ~~Company~~increased ~~with~~awareness ~~a total value~~ of ~~$59,015~~climate ~~based~~change. onThe ~~the~~electronic ~~closing~~interfaces ~~price~~required ofto ~~the~~connect ~~Company’s~~renewable ~~common~~generation ~~stock~~units onwith the ~~date~~utility ofsystem ~~issuance~~can ininclude ~~relation~~additional tofunctions ~~settlement~~such ofas ~~debt~~active infiltering ~~the~~to ~~amount~~enhance ofthe ~~$15,000.~~power ~~The Company recorded a loss of $44,015~~quality.

f)What is Wind Power?

OnWind ~~February~~power 4,is ~~2009,~~ the ~~Company~~conversion ~~issued 1,500,000 common shares~~ of ~~the~~wind ~~Company~~energy ~~with~~into a ~~total~~useful ~~value of $55~~form,~~926~~ ~~based~~such onas ~~the closing price of the Company’s common stock on the date of issuance in relation to settlement of debt in the amount of $75~~electricity,~~000.~~ ~~The~~using ~~Company~~wind ~~recorded a gain of $19,074~~turbines.

~~Stock~~Wind ~~Options~~energy has historically been used directly to propel sailing ships or converted into mechanical energy for pumping water or grinding grain, but the principal application of wind power today is the generation of electricity. Wind power, along with solar power, is non-dispatchable, meaning that for economic operation all of the available output must be taken when it is available, and other resources, such as hydroelectricity, must be used to match supply with demand.

OnWhat ~~June~~is ~~23, 2006, the Company adopted~~ a ~~fixed~~MET stock option plan that provides for the issuance of incentive and non-qualified stock options to officers, directors, employees and consultants to acquire up to 15,000,000 shares of the Company's common stock. The Board of Directors determines the terms of the options granted, including the number of options granted, the exercise price and the vesting schedule. The stock option plan will expire December 31, 2016. tower?

~~Effective~~MET ~~February~~towers 4,(Meteorological ~~2008~~towers), ~~the~~are ~~Company~~used ~~filed~~to agather ~~Form~~wind ~~S-8~~data ~~Registration~~necessary ~~Statement in connection with its 2008 Equity Incentive Plan allowing~~ for ~~the~~site ~~direct~~evaluation ~~award of stock or granting of stock options to directors, officers, employees~~ and ~~consultants~~development ~~to acquire up to a total~~ of ~~20,000,000~~wind ~~shares~~energy ~~of common stock~~projects. The Plan Administrator determines the terms of the options granted, including the number of options granted, the exercise price and the vesting schedule. At September 30, 2008, there are no stock options outstanding.

[welwind10q033110002.jpg]

8MET tower instrumentation data logs wind direction and speed. In addition the MET tower can be equipped to record temperature, solar radiation and air pressure if necessary.

~~Commitments~~The most reliable wind energy assessments depend on wind data recorded continually, over a 1 year period at 40 and 60 meter heights (or greater). The wind data is sampled periodically (every 10 minutes is typical) and stored locally at the tower base using solid state memory devices. MET towers data loggers can be fitted with web server software and an internet connection for remote downloading of the meteorological information stored at the site.

aMET tower installation costs typically range between $45,000 - $100,000 (tubular v. lattis) depending on site conditions and the necessity for site improvement, as well as the instrumentation and data logging strategies employed.

The Company entered into an agreement dated January 18, 2006, with the Government of Yangxi City (“Yangxi”) for the development of a wind farm producing a total of 400,000 kilowatt (“KW”) per year of electrical power in the next ten years. Yangxi will assist the Company in securing land, sale price for the electricity, financing of the project, and preferential tax treatment. Initially, the Company will be required to prepare a community wind assessment and a feasibility study for approval. Yangxi can terminate the agreement if the project is not under construction within 24 months of signing the agreement. As at September 30, 2009, the Company has commenced construction on the plant and the agreement is in good standing.14

bNote: Wind turbine efficiencies are proportional (in part) to the turbine rotor diameter. Since modern rotor diameters can exceed 80 meters it is necessary to gather information on the differing wind conditions that exist along the radius of a rotor blade. Wind differences occur in great part as a result of wind shear, or drag, along hilly contours and heavily wooded or developed surfaces surrounding the turbine. Wind readings at different heights are used to extrapolate wind energy data for all heights along the rotor diameter.

~~The~~Market Company entered into an agreement dated March 21, 2006, with the Zhanjiang Foreign Trade & Economic Bureau (“Zhanjiang”) for the development of a wind power generation project in Zhanjiang City in the Guangdong Province. The project is expected to produce up to 600,000 KW of electrical power per year, with Phase 1 being 100,000 KW per year. The Company had six months from the date of the agreement to begin Phase 1 (commenced) or Zhanjiang had the right to terminate the agreement. The Company granted a 20% interest in this project to an investor. Refer to Note 6. Overview

c)Demand for electricity has dramatically increased as our society has become more technologically driven, demand for Green Energy has also dramatically increased due to consumers desire to become environmentally conscious. Both trends are expected to continue. Significant new capacity for the generation of electricity will be required to meet anticipated demand.

~~The~~Most ~~Company~~of ~~rents,~~the world’s main energy sources are still based on athe ~~month~~consumption of non-~~to-month~~renewable ~~basis~~resources such as petroleum, ~~its~~coal, ~~industrial~~natural gas and ~~office~~uranium. ~~space~~However, ~~for~~while ~~$1,726~~still ~~per~~a ~~month~~small segment of the energy supply, ~~office~~renewable ~~space~~sources such as wind power are growing rapidly in ~~China~~market ~~for~~share. ~~approximately~~Wind $1power delivers multiple environmental benefits. Wind power operates without emitting any greenhouse gases and has one of the lowest greenhouse gas lifecycle emissions of any power technology. Wind power results in no harmful emissions,~~000~~ ~~per~~no ~~month~~extraction of fuel, no radioactive or hazardous wastes and ~~warehouse~~no ~~space~~use ~~for~~of $1water to steam or cooling. Wind projects are developed over large areas,~~791~~ ~~per~~but ~~month~~their carbon footprint is light. Farmers, ranchers and most other land owners can continue their usual activities after wind turbines are installed on their property.

13According to the U.S. Department of Energy, Energy Information Administration’s publication Renewable Resources in the U.S. Electricity Supply, annual growth in the wind power industry for the past ten years has exceeded 28% per year according to the Global Wind Energy Council. Although wind power produces under 1% of electricity worldwide according to the Global Wind Energy Council’s Global Wind 2007 Report, it is a leading renewable energy source and accounts for 19% of electricity production in Denmark (according to the U.S. Department of Energy’s Energy Facts web page), 10% in Spain and 7% in Germany (according to the Global Wind Energy Council’s Europe region web page).

~~Welwind~~Wind ~~Energy~~power ~~International~~has ~~Corporation~~become a mainstream option for electricity generation, and we believe that it is a critical element to solving climate change and delivering cost-effective power.

(AAccording ~~Development~~to ~~Stage~~the ~~Company)~~Global Wind Energy Council’s Global Wind 2007 Report, the United States led the world in wind power installations in 2007 and global wind capacity increased by more than 20,000 megawatts, with 5,244 megawatts installed in the United States alone. Spain and China were the second and third largest wind power growth countries in 2007 with 3,522 megawatts and 3,304 megawatts of wind power capacity added, respectively, according to the report.

~~Consolidated Statements of Operations~~ \

~~(Expressed~~Wind power can deliver zero-emissions electricity in ~~Canadian~~large ~~Dollars)~~amounts. Wind projects do not use any fuel for their operations, so the price of wind power does not vary when fuel prices increase. When utilities acquire wind power, they lock in electricity at a stable price for, on average, 20 years or more.

~~(unaudited)~~Wind, however, is intermittent and electricity generated from wind power can be highly variable. Good site selection and advantageous positioning of turbines on a selected site are critical to the economic production of electricity by wind energy. In our experience, the primary cost of producing wind-powered electricity is the construction cost; wind energy has no fuel costs and relative low maintenance costs.

9Though we have largely focused on the development of wind projects in China we intend to identify sites to produce wind energy in the United States and Canada.

~~Segmented~~Growth ~~Information~~in Demand for Wind Power

~~The~~Growth ~~Company~~in ~~operates as one operating segment which is~~ wind power ~~projects in China. The Chief Executive Officer~~ is ~~the~~being ~~Company’s~~driven ~~Chief~~by ~~Operating~~several ~~Decision~~environmental, ~~Maker~~socio-economic ~~(CODM). The CODM allocates resources~~ and ~~assesses~~energy ~~the~~policy ~~performance~~factors ofthat ~~the Company based on the results of operations.~~include:

~~10.~~·

~~Discontinued~~ongoing ~~Operations~~increases in electricity demand due to population growth and growth in energy consuming devices such as computers, televisions and air conditioning systems,

~~On November 24, 2007, the Company discontinued all operations related to the former business of selling and distributing low carbohydrate and sugar-free foods.~~ ·

~~The~~the ~~results~~increasing cost of ~~discontinued~~the ~~operations~~predominant ~~are~~fuels ~~summarized~~required to drive the existing fleet of conventional electric generation such as ~~follows:~~coal, natural gas, nuclear and oil,

	Nine months Ended September 30, 2009	Nine Months Ended September 30, 2008
	$	$
Revenue	-	3,054
Cost of sales	-	(2,131)
Gross Profit	-	923
Operating Expenses:
General and administrative	-	(54,250)
Net Loss	-	(53,327)

Asthe atincreasing ~~September~~cost ~~30, 2009~~ and ~~December~~difficulty ~~31,~~faced ~~2008,~~in ~~there~~the ~~were~~construction ~~no remaining assets and liabilities~~ of ~~the~~conventional ~~discontinued~~electric ~~retail~~generation ~~and wholesale foods division.~~ plants,

~~11.~~·

~~Subsequent~~existing ~~Events~~and growing legislative and regulatory mandates for “cleaner” forms of electric generation,

~~Subsequent to September 30, 2009 the Company issued the following equity securities in exchange for services.~~·

Onongoing ~~October~~improvements ~~26, 2009, the Registrant issued 2,000,000 shares of its restricted common stock as payment~~ to awind ~~related~~power ~~party~~systems tomaking ~~settle~~them ~~outstanding~~more ~~debt.~~cost ~~The~~effective ~~shares~~and ~~were~~improving ~~valued~~availability ~~$0.012 per share, which represents the value of the services on the award date. On November 19, 2009 the Registrant issued 2,650,000 shares of its restricted common stock as payment~~ to ~~settle~~meet ~~outstanding debt. The shares were valued at $0.01 per share~~demand, which represents the value of the debt on the award debt. On November 19, 2009 the Registrant issued 10,000,000 shares of its restricted common stock as payment to a related party to settle outstanding debt. The shares were valued at $0.01 per share, which represents the value of the debt on the award debt. On November 19, 2009 the Registrant issued 1,500,000 shares of its restricted common stock as payment to a law firm based in British Columbia for services. The shares were valued at $0.01 per share, which represents the value of the services on the award debt.and

1415

~~ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~·

~~CAUTIONARY~~worldwide ~~FORWARD~~concern -over ~~LOOKING~~greenhouse ~~STATEMENT~~gas emissions and calls to reduce global warming due to the carbon dioxide produced by conventional electric generation.

~~CERTAIN~~China’s ~~STATEMENTS~~abundant INinland ~~THIS~~and ~~QUARTERLY~~offshore ~~REPORT~~wind ONenergy ~~FORM~~resources ~~10-Q~~provide ~~(THIS~~potential ~~"FORM~~for 10large-~~Q")~~capacity, CONSTITUTE "FORWARD LOOKING STATEMENTS" WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1934, AS AMENDED, AND THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 (COLLECTIVELY, THE "REFORM ACT"). CERTAIN, BUT NOT NECESSARILY ALL, OF SUCH FORWARDin-~~LOOKING~~grid ~~STATEMENTS~~wind CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS "BELIEVES", "EXPECTS", "MAY", "SHOULD", OR "ANTICIPATES", OR THE NEGATIVE THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE TERMINOLOGY, OR BY DISCUSSIONS OF STRATEGY THAT INVOLVE RISKS AND UNCERTAINTIESfarms. ~~SUCH~~By ~~FORWARD-LOOKING~~the ~~STATEMENTS~~end ~~INVOLVE~~of ~~KNOWN AND UNKNOWN RISKS~~2005, ~~UNCERTAINTIES~~China ~~AND~~had ~~OTHER~~built ~~FACTORS~~59 ~~WHICH~~wind ~~MAY~~farms ~~CAUSE~~with ~~THE ACTUAL RESULTS~~1,854 ~~PERFORMANCE~~wind ORturbine ~~ACHIEVEMENTS~~generators OFand ~~WELWIND~~a ~~ENERGY INTERNATIONAL CORP. ("WELWIND"~~1,266 ~~"THE~~megawatt ~~COMPANY", "WE", "US" OR "OUR") TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD~~in-~~LOOKING~~grid ~~STATEMENTS.~~wind ~~REFERENCES~~power INinstalled ~~THIS FORM 10-Q, UNLESS ANOTHER DATE IS STATED, ARE TO SEPTEMBER 30, 2009~~capacity.

~~Overview~~CHINA’S WIND POWER POTENTIAL green=great, pink=good, blue=ok, yellow=poor (offshore & coastal potential not shown)

WeToday, ~~see~~ wind power ~~becoming an efficient power source globally. Welwind’s current projects focus is~~ in ~~the~~China ~~wind energy sector with future renewable energy applications under consideration. Renewable energy~~ is ~~power~~developing ~~that~~rapidly ~~comes~~and ~~from~~receives ~~renewable~~particularly ~~resources~~strong ~~such~~government ~~as the sun, wind and organic matter~~support. ~~These~~The ~~resources~~new ~~are~~Renewable ~~constantly~~Energy ~~replenished~~Law ~~by nature~~ and ~~are~~its adetailed ~~cleaner~~incentive ~~source~~policies ofreflect ~~energy.~~the ~~Welwind~~Chinese government’s ~~goal~~intention is to ~~add~~build ~~more~~up ~~renewable~~this ~~energy~~industry. ~~globally~~By 2020, ~~resulting~~China inplans ~~cleaner~~to ~~air~~have ~~and~~30 agigawatts ~~more~~of ~~stable~~wind ~~energy supply for our future~~power.

~~Welwind~~European ~~Energy~~companies ~~International~~dominate ~~was~~China’s ~~founded to build, own and operate~~ wind ~~farms~~power onequipment anmarket. ~~international~~Among ~~scale~~U.S. ~~Our~~companies, ~~current~~only ~~project~~GE ~~focus~~Wind Power is toactive ~~bridge the North America-China link by building wind farms~~ in China. ~~The~~In ~~Company~~2005, ~~will~~GE ~~also~~Wind ~~work~~Power onoccupied ~~extending~~3% ~~its~~of ~~business~~the ~~plan~~in-grid ~~into~~wind ~~other~~turbine ~~markets~~market ~~including~~in ~~Canada and the United States~~China.

~~Our~~According ~~Corporate~~to ~~History~~the China Academy of Meteorological Sciences, the country possesses a total 235 gigawatts of practical onshore wind power potential that can be utilized at 10 meters above the ground. Annual potential production from wind power could reach 632.5 gigawatts if the annual, full-load operation reaches 2,000-2,500 hours. A detailed survey is needed, however, for economically utilizable wind power resources. The potential for offshore wind power is even greater, estimated at 750 gigawatts. Offshore wind speed is higher and more stable than onshore wind, and offshore wind farm sites are closer to the major electricity load centers in eastern China. Areas rich in wind power resources are mainly concentrated in two areas: northern China’s grasslands and Gobi desert, stretching from Inner Mongolia, Gansu, and Xinjiang provinces; and in the east coast from Shangdong and Liaoning and the Southeast Coast in Fujian and Guangdong provinces.

~~The~~In ~~Company was incorporated on December 18~~1986, ~~1997,~~China ~~pursuant~~built toits ~~the~~first ~~laws~~wind offarm ~~the~~in ~~State~~Rongcheng, ofShandong ~~Delaware~~Province. ~~under~~From ~~the~~1996 ~~name~~to of1999, ~~Autoeye~~in-grid ~~Inc.~~wind Onpower ~~February~~developed ~~25,~~very ~~2000~~quickly, asentering ~~part~~a oflocalization anstage. ~~acquisition~~By ofthe ~~The~~end ~~Forest~~of ~~Industry Online Inc.~~2004, wethere ~~changed~~were ~~our~~43 ~~name~~wind tofarms ~~forestindustry.com,~~with ~~Inc.~~1291 ~~Prior~~wind toturbines ~~this~~in ~~acquisition~~China, ~~our~~with ~~Company~~764 ~~was~~megawatts ~~inactive.~~of Oninstalled ~~October~~capacity. 25Liaoning, ~~2002~~Xinjiang, weInner ~~entered~~Mongolia, ~~into~~and aGuangdong ~~share~~experienced ~~exchange~~the ~~agreement~~fastest ~~with~~wind ~~GolfLogix,~~power ~~Inc.~~development, arepresenting ~~British~~60% ~~Columbia,~~of ~~Canada~~the ~~Corporation~~installed ~~(“GolfLogix~~power ~~Canada”)~~generating ~~that~~capacity ~~was~~of ~~incorporated~~national inwind ~~February~~power. ~~2000~~Currently, asXinjiang’s ~~West~~Dabancheng ~~Coast~~is ~~Electric Vehicle Distributors, Inc. Under~~ the ~~terms~~largest ofwind ~~the~~farm ~~Share~~in ~~Exchange Agreement~~China, wewith ~~acquired~~100 ~~all~~megawatts of ~~the~~installed ~~outstanding~~power ~~shares~~generating ofcapacity. ~~GolfLogix~~Most ~~Canada~~generators inrange ~~exchange~~from ~~for 2,~~500~~,000~~ ~~shares~~kilowatts ofto ~~our~~1 ~~common stock. As a result~~megawatt, ~~GolfLogix~~accounting ~~Canada~~for ~~was~~84% aof ~~wholly~~China’s ~~owned~~wind ~~subsidiary~~turbine ~~of our Company~~generators.

~~Prior~~Regulations ~~to the acquisition of Golflogix Canada, our business activities included designing web sites~~ and ~~operating~~Economic ~~and~~Incentive ~~maintaining~~Plans aImplemented ~~computer~~by ~~internet~~Chinese ~~web~~Government ~~site~~ for ~~companies~~Renewable ~~associated~~Energy with the forest and wood product industries. However, subsequent to the acquisition of this business we failed to generate profitability and incurred negative cash flows from operations. GolfLogix Canada, a distributor of golfing merchandise and has entered into an agreement to purchase a licensing right to market and distribute the GolfLogix System in Canada.Projects

~~After~~To ~~our~~support ~~acquisition~~the development of ~~GolfLogix~~wind ~~Canada,~~power ontechnology ~~November~~and ~~30,~~growth ~~2002,~~of wethe ~~entered~~in-grid ~~into~~wind apower ~~stock purchase agreement with Cherry Point Consulting~~market, ~~resulting in a divestiture of~~ the ~~assets~~Chinese ofgovernment ~~Forest~~has ~~Industry~~recently ~~Online.~~pushed ~~Under~~hard ~~the~~on ~~agreement~~renewables, ~~Cherry~~and ~~Point~~it ~~Consulting~~implemented ~~purchased~~a ~~shares~~series of ~~Forest~~projects ~~Industry Online~~ and ~~assumed~~also ~~all~~stipulated ofa ~~the~~series ~~related assets and liabilities~~ of ~~the~~economic ~~same.~~incentive ~~On January 7, 2003, we changed our name to Global Golf Holdings, Inc.~~ policies:

On April 15, 2004, the Company filed a Form 8-K announcing that due to lack of success in executing the Company’s business plan and considerable under funding of the same, that the Board of Directors had determined that it was no longer viable to continue operations under the current business plan. 16

15Ride the Wind Program

~~On November 23~~Windmills, ~~2004~~while ~~the~~still ~~Registrant closed on the Agreement with Low Carb Centre and affiliates (hereinafter “LCC”). LCC is a privately held company organized under the laws of British Columbia~~subsidized, ~~Canada~~are ~~with~~economically ~~its~~viable ~~primary~~in ~~business being the retail sales and distribution of gourmet low carbohydrate food products through its traditional brick~~high-~~and-mortar~~wind ~~retail~~areas ~~stores and the World Wide Web at www.lowcarbcentre.com. The Low Carb Bakery~~ (~~“LCB”)~~photo: isNordex ~~a privately held company organized under the laws of British Columbia, Canada with its primary business being the manufacturing of food products for the LCC retail market~~2.5 ~~McNabb~~MW ~~& Associates (“MNA”~~units) ~~is a privately held company organized under the laws of British Columbia, Canada with its primary business being the management and supervision of the business operations of both LCC and LCB.~~

~~Under~~To ~~the~~import ~~terms~~technology offrom ~~the~~foreign ~~LCC~~companies ~~Transaction,~~and ~~the Registrant acquired substantially all of the assets of LCC, including, but not limited~~ to, ~~LCC’s~~establish ~~suppliers,~~a ~~customer~~high-quality ~~and~~Chinese ~~vendor~~wind ~~lists~~turbine ~~and~~generator ~~records pertaining thereto~~sector, the ~~trade~~former ~~names~~State ~~“Low~~Development ~~Carb Centre,” “Low Carb Bakery”~~ and ~~“McNabb~~Planning ~~and~~Commission ~~Associates,”~~(SDPC) ~~all~~initiated ~~registered and unregistered trademarks, service marks, sales marks, colors, names and slogans relating to~~ the ~~business,~~“Ride ~~and all applications for any of~~ the ~~foregoing,~~Wind ~~together~~Program” ~~with~~in ~~all~~1996. ofThis ~~the~~initiative ~~Sellers’~~led ~~rights~~ to ~~use~~two ~~all~~joint ~~of the foregoing forever~~ventures, ~~and~~NORDEX ~~all goodwill associated with the foregoing, the existing phone number~~(sGermany) and ~~websites~~MADE of(Spain). ~~the~~These ~~business,~~JVs ~~all~~effectively ~~assets~~introduced ~~referred~~600kilowatts towind orturbine ~~referenced~~generator ~~within~~manufacturing ~~any~~technology ~~audited financial statements~~ of ~~the~~600 ~~business~~kilowatts ininto preparation or consideration of the closing of the LCC Transaction and any and all recipes, trade secrets, trade practices, décor, goodwill, clients, equipment, furniture, assets, machinery, trade fixtures, miscellaneous supplies, inventory, existing contracts and tangible personal propertyChina.

~~Consideration~~National ~~for~~Debt ~~the~~Wind ~~LCC~~Power Transaction was 14,743,199 newly issued shares of the Registrant post-reverse split. The terms and conditions of the Agreement were determined in arm’s length negotiations between the Registrant and LCC. Program

~~The~~To ~~terms~~encourage ~~and~~the ~~conditions~~development of domestic wind power equipment manufacturing, the ~~Asset~~former ~~Purchase~~State ~~Agreement~~Economic ~~were~~& ~~determined~~Trade inCommission ~~arm~~(SETC) implemented the “National Debt Wind Power Program.” This program required the purchase of qualified, locally-made wind power components for new generation projects. China’s ~~length~~government ~~negotiations~~provided ~~between~~bank loans with subsidized interest to wind farm owners of as compensation for the ~~Company~~risk ~~and~~of ~~LCC~~using locally-made wind turbine generators. These loans funded construction of demonstration project wind farms with a total installed capacity of 8megawatts. This program has been completed.

~~Since~~Wind ~~the~~Power ~~LCC~~Concession Transaction effectively constituted a reverse purchase with the management and shareholders of LCC essentially assuming the same positions in Vitasti, reverse purchase accounting principles were utilized by the Company in accounting for that transaction.Project

The ~~Acquisition~~National Development and Reform Commission (NDRC) initiated the “Wind Power Concession Project” in 2004 with a 20-year operational period. This program aims to reduce the in-grid wind power tariff by building large capacity wind farms and achieving economies of ~~Welwind~~scale. ~~Energy~~Each ~~International~~of ~~Corporation~~the ~~(an~~wind ~~Alberta,~~farms ~~CanadaCcorporation)~~built in this program must reach a 100 megawatts capacity. By 2006, NDRC had approved 5 wind farms, in Jiangsu, Guangdong, Inner Mongolia, and Jilin Province.

OnIn ~~April~~any ~~11,~~typical ~~2006~~wind power concession, the ~~Company~~power ~~and~~grid ~~Welwind~~company ~~Energy~~signs ~~International Corporation,~~ a ~~Corporation~~long-term ~~duly~~power ~~incorporated~~purchase ~~under~~agreement ~~the~~with ~~laws of~~ the ~~Province~~wind ofpower ~~Alberta,~~project ~~Canada,~~investor and ~~the~~agrees ~~shareholders~~to ofpurchase ~~Welwind~~electricity ~~Energy~~generated ~~International~~by ~~Corporation (~~the ~~“Shareholders”), entered into a Share Exchange Agreement (the "Agreement”)~~project. The ~~Agreement~~bidding ~~was~~competition ~~closed~~determines onin-grid ~~the~~tariff ~~17th~~and ofthe ~~August~~agreement ~~2006.~~clearly ~~Per~~prescribes the ~~Agreement,~~quantity ~~the Company acquired 100%~~ of ~~Welwind Energy International Corporation (“WEIC”)~~ in-grid ~~exchange~~wind ~~for~~power ~~11,000,000 unregistered shares of Vitasti, which were distributed~~ to ~~the~~be ~~Shareholders~~purchased. asThe ~~required~~duration byof the ~~terms~~agreement ofcovers the ~~Agreement.~~total ~~The~~operation ~~Shareholders~~period ~~are~~of ~~subject to~~ the ~~resale~~wind ~~provisions of Rule 144~~project.

~~On October 26~~Therefore, ~~2006,~~ the ~~Company~~investor ~~filed~~minimizes risk in ~~the~~recovering ~~office~~investment ofcosts. ~~the~~The ~~Secretary~~concession ofagreement ~~State~~between ~~for~~ the ~~State~~government ofand ~~Delaware~~project ainvestor ~~Certificate~~guarantees ofthe ~~Amendment~~power-purchase toagreement. All end-users of the ~~Company~~grid’s ~~Certificate~~electricity ofshare ~~Incorporation,~~the ~~causing~~tariff ~~the~~increase ~~name~~due ofto wind power purchase. As incentives, the ~~Company~~government towaves beimport ~~changed~~customs ~~from~~tariff ~~Vitasti,~~and ~~Inc.~~VAT toon ~~Welwind~~the ~~Energy~~equipment ~~International~~and ~~Corp~~accessories.

~~WEIC~~Although ~~was~~China’s ~~founded~~government inhas, ~~2005~~for tomany ~~build~~years, ~~own~~encouraged ~~and~~the ~~operate~~use of wind ~~farms~~power, onfavorable anconditions ~~international~~for wide-scale development have yet to develop. ~~Our~~Through ~~current~~the wind power concession project, isthe Chinese government hopes to ~~bridge~~create ~~the~~further ~~North~~incentives ~~America~~for companies to develop this renewable energy resource. The concession agreement and long-~~China~~term ~~link~~power bypurchase ~~building~~agreement protect the interests of wind ~~farms~~power investors, encouraging large companies, especially foreign ones, to invest in ~~China~~the ~~beginning~~Chinese ~~along~~wind power sector. Under this policy, market risk is reduced significantly, which in turn reduces the ~~South~~risk ~~China~~premium ~~Sea~~of the internal rate of return for wind power projects. Eventually, the wind tariff shared by end-users will be cut due to this decreased risk.

16The Chinese government has expanded the capacity of wind farms to a 100 megawatt level, and has created new wind power tariffs based on the market mechanism and tendering process. This has attracted a number of Chinese companies into this program. Through successful implementation of the project, the Chinese government hopes to make wind power an economically-viable power choice, effectively competing with conventional power sources in China.

~~Organizational Structure~~17

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~~Our~~Incentive ~~current~~policies ~~organizational~~have ~~structure~~finally isbegun ~~summarized~~to byemerge within China. China encourages the ~~illustration~~development ~~below:~~of wind power in its “National Middle and Large Term Development Plan.” It is estimated that China’s installed capacity of wind power will reach it will achieve 30 gigawatts by 2020.

~~Overview~~In February 2005, China’s Renewable Energy Law was formulated and was put into effect on January 1, 2006. The law stipulates that the power grid company must sign a grid connection agreement with the wind power generating company and purchase the full amount of ~~our~~the ~~Business~~wind power generated by it. The wind power tariff will be determined by the wind farm project tendering. The winner’s quoted tariff will be the tariff of that wind farm project.

~~The~~Wind ~~Company~~power is ~~engaged~~a inpriority ~~the~~“National ~~research,~~Clean ~~development~~Development ~~and~~Mechanism ~~construction of wind farms~~Project,” ~~primarily involving small scale wind power~~i.e., ~~Our ultimate goal is to build small to medium scale~~ wind ~~farms~~farm ofdevelopers ~~which~~can ~~our~~sell ~~company~~Certified ~~has~~Emission ~~operating~~Reduction ~~control.~~Certificates It(CER’s) ~~is our goal~~ to ~~have~~developed ~~our~~countries ~~wind~~under ~~farm connected to~~ the ~~general~~terms ~~utility~~of ~~electric grid to produce clean, environmentally-sound wind power for use by~~ the ~~electric~~Kyoto ~~power industry~~Protocol.

~~Our~~The ~~management~~Chinese ~~has~~government ~~been~~reduced ~~involved in~~ the ~~wind~~Value-added ~~power~~Tax ~~industry~~(VAT) for ~~more~~wind ~~than~~power 10from ~~years.~~17% Weto ~~have~~8.5% ~~experience~~ in ~~the~~2001 ~~design,~~and ~~manufacture,~~adjusted ~~maintenance~~the ~~and~~import ~~sale~~custom tariff of wind ~~turbines,~~turbine asgenerator ~~well~~sets asto ~~the~~8% ~~full-scale~~and ~~development~~that of ~~wind~~its ~~farms.~~components Weto ~~hold~~3% ~~contract~~in ~~rights,~~2004. ~~are~~The ~~involved~~import ~~with~~duty ~~projects~~of inwind ~~development~~power equipment and ~~under~~accessories ~~negotiation,~~can ~~and~~be ~~provide~~waived ~~development~~if ~~activities~~it inis for the wind ~~power~~farm ~~industry.~~developer’s own use.

ASome ~~wind~~local ~~farm~~governments isin aGuangdong, ~~group~~Jilin, ofXinjiang ~~wind~~and ~~turbines~~Inner inMongolia ~~the~~formulated ~~same~~their ~~location~~own ~~used~~incentive ~~for~~policies ~~production~~to ofdevelop ~~electric~~wind power. ~~Individual~~By ~~turbines~~the ~~are~~end ~~interconnected~~of ~~with~~2005, aChina’s ~~medium~~wind ~~voltage (usually 34.5 kV)~~ power ~~collection~~installed ~~system~~capacity ~~and~~was ~~communications~~about ~~network~~1gigawatts. AtAccording ato ~~substation~~NDRC’s planning, ~~this~~China’s ~~medium-voltage~~wind ~~electrical~~power ~~current~~installed iscapacity ~~increased~~will inreach ~~voltage~~5gigawatts ~~with~~by a2010 ~~transformer~~and ~~for~~30-40 ~~connection~~gigawatts toby ~~the high voltage transmission system~~2020. AAccording ~~large~~to ~~wind~~statistics, ~~farm~~the ~~may~~cost ~~consist~~ of ~~a few dozen to about 100 individual~~ wind ~~turbines,~~power ~~and~~is ~~cover~~33%-60% anhigher ~~extended~~than ~~area~~that of ~~hundreds~~coal, ofwhich ~~square~~makes ~~miles~~the ~~(square~~wind ~~kilometers),~~power ~~but~~tariff ~~the~~68%-94% ~~land~~higher ~~between~~than the ~~turbines~~coal ~~may~~tariff. beIndustry ~~used~~expert ~~for~~predicts ~~agricultural~~that orthe ~~other purposes. A~~ wind ~~farm~~power ~~may~~can be ~~located~~commercially ~~off-shore~~viable toand ~~take~~compete ~~advantage~~with ofclean ~~strong~~coal-fired ~~winds~~power ~~blowing~~economically ~~over~~by ~~the surface of an ocean or lake~~2020.

[welwind10q033110008.jpg]

~~Since entering into the wind-power industry, we have been engaged primarily in the development of two projects, both located in the Guangdong Province in China.~~18

~~Our~~On ~~two~~any ~~potential~~listing ~~China~~of ~~projects would be considered small scale wind power wind farms, which is~~ the ~~name~~very ~~given~~best toprospects wind generation systems with the capacity to produce 50 kW or less of electrical power. Isolated communities, that otherwise rely on diesel generators, may use wind turbines to displace diesel fuel consumption. Individuals may purchase these systems to reduce or eliminate their dependence on grid electricity for economic or other reasons, or to reduce their carbon footprint. Wind turbines have been used for household electricity generation in conjunction with battery storage over many decades in remote areas. Increasingly, U.S. consumers are choosing to purchase gridChina-~~connected~~focused ~~turbines in the 1 to 10 kilowatt range to power their whole homes. Household generator units of more than 1 kW are now functioning in several countries, and in every state in the U.S. Grid-connected~~ wind ~~turbines~~sector ~~may~~business ~~use grid energy storage~~development, ~~displacing~~these ~~purchased~~would energy with local production when available. Off-grid system users can either adapt to intermittent power or use batteries, photovoltaic or diesel systems to supplement the wind turbine. In urban locations, where it is difficult to obtain predictable or large amounts of wind energy (little is known about the actual wind resource of towns and cities), smaller systems may still be ~~used~~amongst ~~to run low power equipment. Equipment such as parking meters or wireless Internet gateways may be powered by a wind turbine that charges a small battery, replacing~~ the ~~need~~top ~~for a connection to the power grid, making the potential carbon savings of small wind turbines difficult to determine.~~priorities:

~~Distributed~~-Large ~~generation~~capacity ~~from~~wind ~~renewable~~turbine ~~resources~~generators, isespecially ~~increasing~~at ~~as a consequence of~~ the ~~increased~~1megawatts ~~awareness~~level ofand ~~climate change~~above. ~~The electronic interfaces required to connect renewable generation units with the utility system can include additional functions such as active filtering to enhance the power quality.~~

17-Design and operation technology of large-scale wind farms.

~~What~~Development istrends ~~Wind~~for ~~Power?~~single wind turbine generators favor large capacity sets, especially at the 1 megawatt level. Before 1997, the 1 megawatt-level wind turbine generators occupied less than 10% of the worldwide market share. In 2001, that figure had risen to 52.3% and reached 62.1% in 2002. Although China has the ability to manufacture wind turbine generators below the 750 kilowatt level, production of higher capacity generators remains a challenge.

~~Wind~~Although ~~power~~China ishas ~~the~~made ~~conversion~~a prototype of a 1.2 megawatt level wind ~~energy~~turbine, ~~into~~it ahas ~~useful~~only ~~form~~been used for demonstration projects. International suppliers will find strong demand in China for wind turbine generators at 1 megawatt and above levels. Beyond the manufacturing sector, ~~such~~Chinese ascompanies ~~electricity~~also lack experience for investment, ~~using~~design, and operation of large wind ~~turbines~~farms.

~~Wind~~With ~~energy~~the ~~has~~recent ~~historically~~passage ~~been~~of ~~used~~China's ~~directly~~new toRenewable ~~propel~~Energy ~~sailing ships or converted into mechanical energy for pumping water or grinding grain~~Law, ~~but~~one ~~the principal application~~ of ~~wind power today is~~ the ~~generation~~world's oflargest ~~electricity.~~economies ~~Wind~~has ~~power,~~now ~~along~~made ~~with~~one ~~solar~~of ~~power,~~the islargest ~~non~~state-~~dispatchable,~~sponsored ~~meaning~~commitments ~~that~~toward ~~for~~renewable ~~economic~~energy. ~~operation~~China's ~~all~~government ofimposed ~~the~~a ~~available~~national ~~output~~renewable ~~must~~energy berequirement ~~taken~~that ~~when it~~ is ~~available,~~expected ~~and~~to ~~other~~boost ~~resources,~~the ~~such~~use asof ~~hydroelectricity,~~renewable ~~must~~energy becapacity ~~used~~up to ~~match~~10 ~~supply~~percent ~~with~~by ~~demand~~the year 2020.

~~What~~The islaw requires power grid operators to purchase resources from registered renewable energy producers. The law also offers financial incentives, such as a ~~MET~~national ~~tower?~~fund to foster renewable energy development, and discounted lending and tax preferences for renewable energy projects.

~~MET~~Rapid ~~towers~~economic ~~(Meteorological~~development ~~towers)~~throughout China has resulted in a significant increase in energy consumption, ~~are~~leading ~~used~~to a rise in harmful emissions and power shortages. The Renewable Energy Law is designed to ~~gather~~help ~~wind~~protect ~~data~~the ~~necessary~~environment, ~~for~~prevent ~~site~~energy ~~evaluation~~shortages, and ~~development~~reduce ofdependence ~~wind~~on ~~energy~~imported ~~projects~~energy.

~~MET~~China's ~~tower~~new ~~instrumentation~~law ~~data~~sets ~~logs~~the ~~wind~~stage ~~direction~~for ~~and~~the ~~speed~~widespread development of renewables, particularly for commercial scale renewable generating facilities. InThrough ~~addition~~this legislation, the ~~MET~~State ~~tower~~officially ~~can~~encourages bethe ~~equipped~~construction of renewable energy power facilities. China's electricity grid is obligated to ~~record~~purchase ~~temperature,~~all ~~solar~~the ~~radiation~~electricity generated by approved renewable energy facilities located in its service area. The grid's buying price for renewables will be set by the National Development and ~~air~~Reform ~~pressure~~Commission if(NDRC), a regulatory department of the State Council. NDRC will adjust the buying price from time to time as necessary. The cost of purchasing this power will be spread across all customers on the grid.

~~The~~NDRC ~~most~~will ~~reliable~~also ~~wind~~implement ~~energy~~a ~~assessments~~national ~~depend~~renewable onenergy ~~wind~~plan, ~~data~~including ~~recorded~~specific ~~continually,~~renewable ~~over~~energy atargets 1that ~~year~~will ~~period~~act atas 40the ~~and~~framework 60for ~~meter~~implementation ~~heights~~of ~~(or~~the ~~greater)~~law. ~~The~~Provincial ~~wind~~planning ~~data~~agencies iswill ~~sampled~~then ~~periodically~~develop ~~(every~~their 10more ~~minutes~~specific isimplementation ~~typical)~~plans. ~~and~~The ~~stored~~law ~~locally~~includes atother ~~the~~details ~~tower~~related ~~base~~to ~~using~~the ~~solid-state~~purchase ~~memory~~and ~~devices.~~use ~~MET~~of ~~towers~~solar ~~data~~photovoltaics ~~loggers~~(PV) ~~can~~and besolar ~~fitted~~water ~~with~~heating ~~web~~as ~~server~~well ~~software~~as ~~and~~renewable anenergy ~~internet~~fuels. ~~connection~~Finally, ~~for~~the ~~remote~~law ~~downloading~~includes ofspecific ~~the~~penalties ~~meteorological~~for ~~information~~non-compliance ~~stored~~with at the ~~site~~law.

MET tower installation costs typically range between $45,000 - $100,000 (tubular v. lattis) depending on site conditions and the necessity for site improvement, as well as the instrumentation and data logging strategies employed. Competition

~~Market~~Large ~~Overview~~utility companies dominate the energy production industry and coal continues to dominate as the primary resource for electricity production. Electricity generated from wind energy faces competition from other traditional resources such as nuclear, oil and natural gas. The advantages of conventional production of electricity are that:

Demand for electricity has and will continue to increase as our society has become more technologically driven. Accordingly, the demand for more green energy solutions has also increased due to consumers desire to become environmentally conscious. Both trends are expected to continue. Significant new capacity for the generation of electricity will be required to meet anticipated demand. ·

~~Most of~~ the ~~world’s~~technology ~~main~~and ~~energy~~infrastructure ~~sources~~already ~~are~~exist ~~still~~for ~~based on~~ the ~~consumption~~use of ~~non-renewable~~fossil ~~resources~~fuels such as ~~petroleum,~~ coal, ~~natural~~oil ~~gas~~ and ~~uranium.~~natural However, while still a small segment of the energy supply, renewable sources such as wind power are growing rapidly in market share. Wind power delivers multiple environmental benefits. Wind power operates without emitting any greenhouse gases and has one of the lowest greenhouse gas ~~lifecycle emissions of any power technology. Wind power results in no harmful emissions~~, no extraction of fuel, no radioactive or hazardous wastes and no use of water to steam or cooling. Wind projects are developed over large areas, but their carbon footprint is light. Farmers, ranchers and most other landowners can continue their usual activities after wind turbines are installed on their property.

18·

~~According~~commonly-used tofossil ~~the~~fuels ~~U.S. Department of Energy, Energy Information Administration’s publication Renewable Resources~~ in ~~the~~liquid ~~U.S.~~form ~~Electricity~~such ~~Supply,~~as ~~wind~~light ~~power~~crude generation is projected to increase at a rate of 10.4% per year. Annual growth in the wind power industry for the past ten years has exceeded 28% per year according to the Global Wind Energy Council. Although wind power produces under 1% of electricity worldwide according to the Global Wind Energy Council’s Global Wind 2007 Reportoil, itgasoline ~~is a leading renewable energy source~~ and ~~accounts~~liquefied ~~for~~petroleum ~~19%~~gas ofare ~~electricity~~easy ~~production in Denmark (according~~ to ~~the U.S. Department of Energy’s Energy Facts web page)~~distribute, ~~10% in Spain~~ and ~~7% in Germany (according to the Global Wind Energy Council’s Europe region web page).~~

According to the Global Wind Energy Council’s Global Wind 2007 Report, the United States led the world in wind power installations in 2007 and global wind capacity increased by more than 20,000 megawatts, with 5,244 megawatts installed in the United States alone. Spain and China were the second and third largest wind power growth countries in 2007 with 3,522 megawatts and 3,304 megawatts of wind power capacity added, respectively, according to the report.·

~~Wind~~petroleum ~~power~~energy ~~can~~density ~~deliver~~(an ~~zero-emissions~~important ~~electricity~~element in ~~large~~land ~~amounts.~~and ~~Wind~~air ~~projects~~transportation ~~do not use any~~ fuel ~~for~~tanks) ~~their~~in ~~operations,~~terms ~~so the price~~ of ~~wind~~volume ~~power~~(cubic ~~does~~space) ~~not~~and ~~vary~~mass ~~when~~(weight) ~~fuel~~is ~~prices~~superior ~~increase.~~to ~~When~~some ~~utilities~~alternative ~~acquire~~energy ~~wind power, they lock in electricity at a stable price for, on average, 20 years or more~~sources.

~~Wind~~However, ~~however,~~energy isproduced ~~intermittent~~by ~~and~~conventional ~~electricity~~resources ~~generated~~also ~~from~~faces ~~wind power can be highly variable. Good site selection and advantageous positioning of turbines on~~ a ~~selected~~number ~~site are critical to the economic production~~ of ~~electricity~~challenges ~~by wind energy. In our experience, the primary cost of producing wind-powered electricity is the construction cost; wind energy has no fuel costs and relative low maintenance costs.~~including:

~~Though we have largely focused on the development of wind projects in China we are continually evaluating potential wind farm sites to produce wind energy in the United States and Canada.~~·

~~Growth~~the ininefficient ~~Demand~~atmospheric ~~for~~combustion ~~Wind~~(burning) ~~Power~~of fossil fuels leads to the release of pollution into the atmosphere including carbon dioxide which is largely considered the primary cause of global warming,

~~Growth in wind power is being driven by several environmental, socio-economic and energy policy factors that include:~~·

·dependence on fossil fuels from volatile regions or countries of the world creates energy security risks for dependent countries,

~~ongoing increases in electricity demand due to population growth and growth in energy consuming devices such as computers, televisions and air conditioning systems,~~·

·fossil fuels are non-renewable unsustainable resources which will eventually decline in production and become exhausted with potentially dire consequences to societies that remain highly dependent on them, and

~~the increasing cost of the predominant fuels required to drive the existing fleet of conventional electric generation such as coal, natural gas, nuclear and oil,~~19

~~the~~extraction ~~increasing~~of ~~cost~~fossil fuels is becoming more expensive and ~~difficulty~~more ~~faced~~dangerous inas ~~the~~readily-available ~~construction~~resources ofare ~~conventional~~exhausted ~~electric~~and ~~generation~~mines ~~plants,~~get deeper and oil rigs must drill deeper and further out in oceans.

·In contrast, electricity generated from wind energy:

~~existing and growing legislative and regulatory mandates for “cleaner” forms of electric generation,~~·

·produces no water or air pollution that can contaminate the environment because there are no chemical processes involved in wind power generation; therefore, there are no waste by-products such as carbon dioxide,

~~ongoing improvements to wind power systems making them more cost effective and improving availability to meet demand, and~~·

·does not contribute to global warming because it does not generate greenhouse gases,

~~worldwide concern over greenhouse gas emissions and calls to reduce global warming due to the carbon dioxide produced by conventional electric generation.~~·

~~CHINA~~is ASa Arenewable ~~DEVELOPMENT~~source ~~RICH~~of ~~OPPORTUNITY~~energy, and

China’s abundant inland and offshore wind energy resources provide potential for large-capacity, in-grid wind farms. By the end of 2005, China had built 59 wind farms with 1,854 wind turbine generators and a 1,266 megawatt in-grid wind power installed capacity, ranking it number ten globally.·

19in the case of community wind power, farming and grazing can still take place on land occupied by wind turbines.

~~CHINA’S WIND POWER POTENTIAL green=great~~However, ~~pink=good,~~wind ~~blue=ok,~~energy ~~yellow=poor~~producers ~~(offshore~~also &face ~~coastal~~certain ~~potential~~obstacles ~~not shown)~~including:

Today, wind power in China is developing rapidly and receives particularly strong government support. The new Renewable Energy Law and its detailed incentive policies reflect the Chinese government’s intention to build up this industry. By 2020, China plans to have 30 gigawatts of wind power.·

~~European~~the ~~companies~~reality ~~dominate~~that ~~China’s~~ wind ~~power~~is ~~equipment~~unpredictable ~~market.~~and, ~~Among U.S. companies~~therefore, ~~only~~wind GEpower ~~Wind Power~~ is ~~active~~not inpredictably ~~China. In 2005~~available, GEand ~~Wind~~when ~~Power occupied 3% of~~ the ~~in-grid~~ wind ~~turbine~~speed ~~market~~decreases, inless ~~China.~~electricity is generated,

According to the China Academy of Meteorological Sciences, the country possesses a total 235 gigawatts of practical onshore wind power potential that can be utilized at 10 meters above the ground. Annual potential production from wind power could reach 632.5 gigawatts if the annual, full-load operation reaches 2,000-2,500 hours. A detailed survey is needed, however, for economically utilizable wind power resources. The potential for offshore wind power is even greater, estimated at 750 gigawatts. Offshore wind speed is higher and more stable than onshore wind, and offshore wind farm sites are closer to the major electricity load centers in eastern China. Areas rich in wind power resources are mainly concentrated in two areas: northern China’s grasslands and Gobi desert, stretching from Inner Mongolia, Gansu, and Xinjiang provinces; and in the east coast from Shangdong and Liaoning and the Southeast Coast in Fujian and Guangdong provinces.·

Inresidents ~~1986, China built its first wind farm~~ in ~~Rongcheng,~~communities ~~Shandong~~where ~~Province. From 1996 to 1999, in-grid~~ wind ~~power developed very quickly, entering a localization stage. By the end of 2004, there were 43 wind~~ farms ~~with~~exist ~~1291~~may ~~wind~~consider ~~turbines~~them inan ~~China~~“eyesore,” ~~with 764 megawatts of installed capacity. Liaoning, Xinjiang, Inner Mongolia,~~ and Guangdong experienced the fastest wind power development, representing 60% of the installed power generating capacity of national wind power. Currently, Xinjiang’s Dabancheng is the largest wind farm in China, with 100 megawatts of installed power generating capacity. Most generators range from 500 kilowatts to 1 megawatt, accounting for 84% of China’s wind turbine generators.

~~Regulations and Economic Incentive Plans Implemented by Chinese Government for Renewable Energy Projects~~·

Towind ~~support~~farms, depending on the ~~development~~location ofand ~~wind~~type ~~power~~of ~~technology~~turbine, ~~and~~may ~~growth~~negatively ofaffect ~~the~~bird ~~in-grid~~migration ~~wind~~patterns ~~power~~and ~~market,~~may ~~the~~pose ~~Chinese~~a ~~government~~danger ~~has~~to ~~recently~~the ~~pushed~~birds ~~hard~~themselves; onhowever, ~~renewables~~newer, ~~and~~larger itwind ~~implemented~~turbines ahave ~~series~~slower ofmoving ~~projects~~blades ~~and~~which ~~also~~seem ~~stipulated~~to abe ~~series~~visible ofto ~~economic~~most ~~incentive policies:~~birds.

20We expect that primary competition for the wind power industry will continue to come from utility company producers of electricity generated from coal and other non-renewable energy sources.

–New ~~Ride~~entrants in the ~~Wind~~wind ~~Program~~power development market, however, face certain barriers to entry. The capital costs of buying and maintaining turbines are high. Other significant factors include the cost of land acquisition, the availability of transmission lines, land use considerations and the environmental impact of construction and operations. Finally, another critical barrier to entry into the wind power development business is the necessary experience required to bring project to the point where they are able to secure interconnection agreements, power purchase agreements and project financing for construction.

~~Windmills,~~Wind ~~while~~Energy ~~still~~Industry ~~subsidized, are economically viable in high-wind areas (photo: Nordex 2.5 MW units)~~Participants

ToAs ~~import~~wind energy technology ~~from~~gains ~~foreign~~wider ~~companies~~acceptance, ~~and~~competition tomay ~~establish~~increase aas ~~high~~large, well-~~quality~~capitalized ~~Chinese~~companies ~~wind~~enter ~~turbine~~the ~~generator~~business. ~~sector~~As previously stated, wind energy is the ~~former~~fastest ~~State~~growing ~~Development~~source ~~and~~of ~~Planning~~energy ~~Commission~~worldwide ~~(SDPC)~~for ~~initiated~~three ~~the~~consecutive ~~“Ride~~years. ~~the~~Energy companies such as British Petroleum, Shell Oil Company’s Wind ~~Program”~~Energy inarm, ~~1996.~~Siemens ~~This~~and ~~initiative~~other ~~led~~major tocompanies ~~two~~in ~~joint~~the ~~ventures~~energy sector, ~~NORDEX~~see ~~(Germany)~~opportunities ~~and~~in ~~MADE~~wind ~~(Spain)~~power development. ~~These~~Additionally, ~~JVs~~there ~~effectively~~are ~~introduced~~many ~~600kilowatts~~smaller ~~wind~~companies ~~turbine~~that ~~generator~~are ~~manufacturing~~seeking ~~technology~~out ofopportunities ~~600~~in ~~kilowatts~~the ~~into~~wind ~~China~~energy sector.

–In ~~National~~some ~~Debt~~cases, ~~Wind~~competitors ~~Power~~may ~~Program~~have longer operating histories, more customers, greater financial strength, more name recognition, and larger technical staffs. These competitors may be able to more readily identify and acquire suitable locations to exploit the growth in the wind energy sector more easily because of their financial resources and awareness in the market. Our larger competitors can also devote substantially more resources to business development and may adopt more aggressive pricing policies.

ToOur ~~encourage~~Competitive the development of domestic wind power equipment manufacturing, the former State Economic & Trade Commission (SETC) implemented the “National Debt Wind Power Program.” This program required the purchase of qualified, locally-made wind power components for new generation projects. China’s government provided bank loans with subsidized interest to wind farm owners of as compensation for the risk of using locally-made wind turbine generators. These loans funded construction of demonstration project wind farms with a total installed capacity of 8megawatts. This program has been completed.Advantages

–We ~~Wind~~believe ~~Power~~that ~~Concession~~our ~~Project~~experience in developing wind farm projects in new market areas will enable us to continue to successfully implement our business plan. Further, we believe our management’s understanding of deregulated energy markets enables us to maximize the value of our development portfolio. Our team has experience in site selection, market analysis, land acquisition, community relations, permitting, financing, regulation and construction.

~~The~~As ~~National~~a ~~Development~~result ~~and~~of ~~Reform~~our ~~Commission~~project ~~(NDRC)~~portfolio ~~initiated~~and ~~the~~management ~~“Wind~~team, ~~Power~~we ~~Concession~~enjoy ~~Project”~~strong inrelationships ~~2004~~ with akey ~~20-year~~trading ~~operational~~partners ~~period.~~that ~~This~~are ~~program~~required ~~aims~~for tosuccessful ~~reduce the in-grid~~ wind ~~power~~farm ~~tariff by building large capacity wind farms and achieving economies of scale~~development. ~~Each~~These ofrelationships ~~the~~include ~~wind~~regulators, ~~farms~~turbine ~~built~~suppliers, inelectric ~~this~~component ~~program~~suppliers, ~~must~~equity ~~reach a 100 megawatts capacity. By 2006~~investors, ~~NDRC~~project ~~had approved 5 wind farms~~lenders, inengineering ~~Jiangsu~~firms, ~~Guangdong~~constructors, ~~Inner~~electric ~~Mongolia,~~transmission operators and ~~Jilin~~electric ~~Province~~utilities.

In any typical wind power concession, the power grid company signs a long-term power purchase agreement with the wind power project investor and agrees to purchase electricity generated by the project. The bidding competition determines in-grid tariff and the agreement clearly prescribes the quantity of in-grid wind power to be purchased. The duration of the agreement covers the total operation period of the wind project.20

Therefore, the investor minimizes risk in recovering investment costs. The concession agreement between the government and project investor provides dequate assurance that the project will be granted a power-purchase agreement. All end-users of the grid’s electricity share the tariff increase due to wind power purchase. As incentives, the government waves import customs tariff and VAT on the equipment and accessories.Distribution

~~Although~~The ~~China’s~~Company ~~government~~continually ~~has,~~analyzes ~~for~~population ~~many~~growth ~~years,~~and ~~encouraged~~both ~~the~~national ~~use~~and ofinternational ~~wind~~economic ~~power~~factor, ~~favorable~~in ~~conditions~~determining ~~for~~energy ~~wide-scale~~demands ~~development~~in ~~have~~identified ~~yet to develop~~areas. ~~Through~~Should the ~~wind~~Company ~~power~~make ~~concession project,~~ the ~~Chinese~~determination ~~government~~and ~~hopes~~successfully toidentify ~~create~~suitable ~~further~~property ~~incentives~~or ~~for~~properties, ~~companies~~the toCompany ~~develop~~would ~~this~~test ~~renewable~~the ~~energy~~site ~~resource.~~to ~~The~~determine ~~concession~~whether ~~agreement~~sufficient ~~and~~wind ~~long-term~~energy ~~power~~resources ~~purchase~~are ~~agreement~~available ~~protect~~to ~~the~~effectively ~~interests~~and ofefficiently ~~wind~~displace ~~power~~current ~~investors~~electricity sources, ~~encouraging~~thus ~~large~~reducing ~~companies,~~pollution ~~especially~~from ~~foreign~~fossil ~~ones,~~fuel. toUpon ~~invest~~completion inof the ~~Chinese~~analysis, ~~wind~~the ~~power~~Company ~~sector.~~would ~~Under this policy~~attempt, ~~market~~if ~~risk~~conditions iswere ~~reduced significantly~~favorable, ~~which~~to inobtain ~~turn~~land ~~reduces~~right ~~the~~and ~~risk~~apply ~~premium~~for ofpermits ~~the~~to ~~internal~~install ~~rate~~and ofoperate ~~return~~a ~~for~~ wind power ~~projects.~~generating ~~Eventually, the wind tariff shared by end-users will be cut due to this decreased risk~~plant.

~~The~~Intellectual Chinese government has expanded the capacity of wind farms to a 100 megawatt level, and has created new wind power tariffs based on the market mechanism and tendering process. This has attracted a number of Chinese companies into this program. Through successful implementation of the project, the Chinese government hopes to make wind power an economically-viable power choice, effectively competing with conventional power sources in China.Property

21We depend on our ability to develop and maintain the proprietary aspects of our technology to distinguish our products from our competitors’ products. To protect our proprietary technology, we rely primarily on a combination of confidentiality procedures. It is our policy to require employees and consultants to execute confidentiality agreements and invention assignment agreements upon the commencement of their relationship with us. These agreements provide that confidential information developed or made known during the course of a relationship with us must be kept confidential and not disclosed to third parties except in specific circumstances and for the assignment to us of intellectual property rights developed within the scope of the employment relationship.

~~China~~Governmental encourages the development of wind power in its “National Middle and Large Term Development Plan.” According to the plan, by 2010, China’s installed capacity of wind power will reach 5 gigawatts. By 2020, it will achieve 30 gigawatts. In order to achieve this level of growth, China needs to build 800 megawatts of new wind power capacity each year from 2006 to 2010.Regulation

InWe ~~February~~do ~~2005~~not use, ~~China’s~~generate ~~Renewable~~or ~~Energy~~discharge ~~Law~~toxic, ~~was~~volatile ~~formulated~~or ~~and~~otherwise ~~was~~hazardous ~~put~~chemicals ~~into~~and ~~effect~~wastes onin ~~January~~our 1,research ~~2006.~~and ~~The~~development ~~law~~and ~~stipulates~~manufacturing ~~that~~activities. ~~the~~However, ~~power~~we ~~grid~~are ~~company~~subject ~~must~~to ~~sign~~ a ~~grid~~variety ~~connection~~of ~~agreement~~foreign, ~~with~~federal, ~~the~~state ~~wind power generating company~~ and ~~purchase~~local ~~the~~governmental ~~full amount of the wind power generated by it~~regulations. ~~The~~At ~~wind~~this ~~power~~time, ~~tariff~~we ~~will~~believe bethat ~~determined~~we byhave ~~the~~all ~~wind~~permits ~~farm~~necessary ~~project~~to ~~tendering.~~conduct ~~The~~our ~~winner’s quoted tariff will be the tariff of that wind farm project~~business.

~~Wind~~We ~~power~~are isnot aaware ~~priority~~of ~~“National~~any ~~Clean~~environmental ~~Development~~investigation, ~~Mechanism~~proceeding ~~Project~~or action by foreign,” ifederal or state agencies involving our current facilities or operations.e. If we fail to comply with present or future environmental regulations, ~~wind~~we ~~farm~~could ~~developers~~be ~~can~~subject ~~sell~~to ~~Certified~~fines, ~~Emission~~suspension ~~Reduction~~of ~~Certificates~~production ~~(CER’s)~~or a cessation of operations. Any failure by us to ~~developed~~adequately ~~countries~~comply ~~under~~with ~~the~~existing ~~terms~~and future regulations could subject us to financial liabilities, operational interruptions and adverse publicity, any of ~~the~~which ~~Kyoto~~could ~~Protocol~~materially and adversely affect our business, results of operations and financial condition.

The Chinese government reduced the Value-added Tax (VAT) for wind power from 17% to 8.5% in 2001 and adjusted the import custom tariff of wind turbine generator sets to 8% and that of its components to 3% in 2004. The import duty of wind power equipment and accessories can be waived if it is for the wind farm developer’s own use.Employees

~~Some~~As ~~local~~of ~~governments~~March ~~in Guangdong~~31, ~~Jilin~~2010, ~~Xinjiang~~we ~~and~~employed ~~Inner~~five ~~Mongolia~~full-time ~~formulated~~employees ~~their~~and ~~own~~ten ~~incentive~~part-time ~~policies to develop wind power~~employees. ByNone ~~the end~~ of ~~2005,~~our ~~China’s~~employees ~~wind~~is ~~power~~subject ~~installed capacity was about 1gigawatts. According~~ to ~~NDRC’s~~a ~~planning,~~collective ~~China’s~~bargaining ~~wind~~agreement ~~power~~and ~~installed~~we ~~capacity~~believe ~~will~~that ~~reach~~relations ~~5gigawatts~~with byour ~~2010~~employees ~~and~~are ~~30-40~~very ~~gigawatts by 2020~~good. ~~According~~We toalso ~~statistics,~~frequently ~~the~~use ~~cost~~third ofparty ~~wind~~consultants ~~power~~to isassist ~~33%-60%~~in ~~higher~~the ~~than~~completion ~~that~~ of ~~coal,~~various ~~which~~projects. ~~makes~~Third ~~the~~parties ~~wind~~are ~~power~~instrumental ~~tariff~~to ~~68%-94%~~keep ~~higher than~~ the ~~coal~~development ~~tariff.~~of ~~Industry~~projects ~~expert~~on ~~predicts~~time ~~that the wind power can be commercially viable~~ and ~~compete~~on ~~with clean coal-fired power economically by 2020~~budget.

22Balance Sheet

OnAs ~~any~~at ~~listing~~March of31, 2010, the ~~very~~Company ~~best~~had ~~prospects~~total ~~for~~assets ~~China-focused~~of ~~wind~~$560,441 ~~sector~~compared ~~business~~with ~~development~~total assets of $564,131 ~~these~~as ~~would~~at beDecember ~~amongst~~31, 2009. The decrease in the ~~top~~total ~~priorities:~~assets of $3,690 was due to amortization of the existing property and equipment of $3,864.

~~-Large~~The ~~capacity~~Company ~~wind~~had ~~turbine~~total ~~generators~~liabilities of $1,780,296 ~~especially~~as at March 31, 2010 compared with $1,731,253 as at December 31, 2009. The increase in total liabilities of $49,043 is attributed to the ~~1megawatts~~fact ~~level~~that accounts payable increased $20,946 based on increases in professional fees related to accounting, audit, and ~~above~~legal services provided during the Company during the period. The amounts due to related parties increased $28,097 due to imputed interest of $27,461 using an annualized imputed interest rate of 8%.

~~-Design~~During ~~and~~the ~~operation~~three ~~technology~~months ended March 31, 2010, the Company issued 5,000,000 common shares for proceeds of ~~large-scale~~US$25,000 ~~wind~~(Cdn$25,773) ~~farms~~and 8,000,000 common shares to settle outstanding debt and services rendered to the Company.

~~Development~~Operating trends for single wind turbine generators favor large capacity sets, especially at the 1 megawatt level. Before 1997, the 1 megawatt-level wind turbine generators occupied less than 10% of the worldwide market share. In 2001, that figure had risen to 52.3% and reached 62.1% in 2002. Although China has the ability to manufacture wind turbine generators below the 750 kilowatt level, production of higher capacity generators remains a challenge.Revenues

~~Although~~We ~~China~~have ~~has~~not ~~made~~generated aany ~~prototype~~revenues ofsince ~~a 1~~inception.2 megawatt level wind turbine, it has only been used for demonstration projects. International suppliers will find strong demand in China for wind turbine generators at 1 megawatt and above levels. Beyond the manufacturing sector, Chinese companies also lack experience for investment, design, and operation of large wind farms.

With the recent passage of China's new Renewable Energy Law, one of the world's largest economies has now made one of the largest state-sponsored commitments toward renewable energy. China's government imposed a national renewable energy requirement that is expected to boost the use of renewable energy capacity up to 10 percent by the year 2020. 21

~~The~~Operating law requires power grid operators to purchase resources from registered renewable energy producers. The law also offers financial incentives, such as a national fund to foster renewable energy development, and discounted lending and tax preferences for renewable energy projects. Expenses

~~Rapid~~During ~~economic~~the ~~development~~three ~~throughout~~months ~~China~~ended ~~has~~March ~~resulted~~31, in2010, athe ~~significant~~Company ~~increase~~incurred inoperating ~~energy~~expenses ~~consumption~~totaling $132,872 ~~leading~~compared towith a$342,306 ~~rise~~for inthe ~~harmful~~three ~~emissions~~months ~~and~~ended ~~power~~March ~~shortages~~31, 2009. The ~~Renewable~~decrease ~~Energy~~in ~~Law~~operating expenses is ~~designed~~attributed to ~~help~~the ~~protect~~fact that the ~~environment~~Company issued $85,000 ~~prevent~~in ~~energy~~stock-based ~~shortages~~compensation in fiscal 2010 compared with $113,000 ~~and~~of ~~reduce~~stock-based ~~dependence~~compensation onduring ~~imported~~the ~~energy~~same period in 2009. Furthermore, the Company had lower levels of cash flows in the current period which resulted in a lower magnitude of transactions during the period.

~~China's~~Net new laws set the stage for the widespread development of renewables, particularly for commercial scale renewable generating facilities. Through this legislation, the State officially encourages the construction of renewable energy power facilities. China's electricity grid is obligated to purchase all the electricity generated by approved renewable energy facilities located in its service area. The grid's buying price for renewables will be set by the National Development and Reform Commission (NDRC), a regulatory department of the State Council. NDRC will adjust the buying price from time to time as necessary. The cost of purchasing this power will be spread across all customers on the grid. Loss

~~NDRC~~During ~~will~~the ~~also~~three ~~implement~~months aended ~~national~~March ~~renewable~~31, ~~energy plan~~2010, ~~including~~the ~~specific~~Company ~~renewable~~incurred ~~energy~~a ~~targets~~net ~~that~~loss ~~will~~of ~~act~~$163,723 ascompared ~~the~~with ~~framework~~a ~~for~~net ~~implementation~~loss of ~~the~~$365,835 ~~law.~~for ~~Provincial~~the ~~planning~~three ~~agencies~~months ~~will~~ended ~~then~~March ~~develop~~31, ~~their~~2009. ~~more~~The ~~specific~~decrease ~~implementation~~in ~~plans.~~operating ~~The~~expenses ~~law~~is ~~includes~~attributed ~~other~~to ~~details~~the ~~related~~fact tothat the ~~purchase~~Company ~~and~~issued ~~use~~$85,000 ofin ~~solar~~stock-based ~~photovoltaics~~compensation ~~(PV)~~in ~~and~~fiscal ~~solar~~2010 ~~water~~compared ~~heating~~with as$113,000 ~~well~~of asstock-based ~~renewable~~compensation ~~energy~~during ~~fuels~~the same period in 2009. ~~Finally~~Furthermore, the ~~law~~Company ~~includes~~had ~~specific~~lower ~~penalties~~levels ~~for~~of ~~non-compliance~~cash ~~with~~flows in the ~~law~~current period which resulted in a lower magnitude of transactions during the period.

~~Our~~Liquidity ~~Wind~~and ~~Farm~~Capital ~~Portfolio~~Resources

WeAs ~~have~~at ~~been~~March ~~involved~~31, 2010, the Company had a cash balance of $6,786 and a working capital deficit of $1,771,187 compared with ~~two~~a ~~(2)~~cash ~~wind~~balance ~~projects~~of in$6,741 ~~China’s~~and ~~Guangdong~~a ~~Province~~working capital deficit of $1,722,318 at December 31, 2009. The ~~following~~increase ~~provides~~in anworking ~~overview~~capital ofdeficit is due to the ~~two~~fact ~~projects~~that the Company incurred operating expenditures during the year, ~~including~~but had limited cash flows to repay the obligation, hence a general increase in accounts payable relative to the level of current ~~status:~~assets in the Company.

Project Name	Megawatts	Phase
Zhanjiang Project	49 - 400	Local Approvals Secured, Pending Construction Permit and Possible Site Relocation
Yangxi Project	49 -400	Development Agreement with City of Yangxi signed in June 2007, Wind Testing Completed, Project Proposal & Feasibility Report along with the Grid Connection Report Anticipated by end of Q4 2009 for Submission to City of Yangxi

Cashflow from Operating Activities

~~Our~~During ~~plan~~the ~~has~~three ~~been~~months ~~based~~ended onMarch 31, 2010, the Company ~~developing~~used a$22,974 ~~49Mw~~of ~~per~~cash ~~project~~flow ~~per~~for ~~year~~operating ~~upon~~activities ~~the~~compared ~~commencement~~with of$217,485 ~~construction~~for ~~(subject~~the tothree ~~securing~~months ~~necessary~~ended ~~approvals)~~March 31, ~~which~~2009. The decrease in the use of cash flows for operating activities is reflective of the ~~maximum~~decrease ~~allowed~~in the level of activity incurred by the ~~provincial~~Company ~~government~~during the period due to the economic downturn and the lack of sufficient capital funding.

23Cashflow from Investing Activities

~~The~~During ~~Zhanjiang~~the ~~Project~~three months ended March 31, 2010 and 2009, the Company incurred no transactions relating to investing activities.

~~The~~Cashflow ~~Zhanjiang~~from ~~Windcor~~Financing Windfarm Ltd. (“ZWWL”) began operations in 2006. The ZWWL was acquired by the Company as part of the acquisition of Welwind (the Alberta corporation) in August 2006. The ZWWL is the through which all operations pertaining to the Zhanjiang Project would be handled. The ZWWL commenced initial operations in April 2006, with such operations including establishment of an office location. The ZWWL project is proposed located on Donghai Island.Activities

ADuring ~~MET~~the ~~tower~~three ~~was~~months ~~installed~~ended ~~and~~March ~~began~~31, ~~collecting~~2010, ~~wind~~the ~~data~~Company inwas ~~June~~provided ~~2006.~~$23,019 ~~The~~of ~~data~~cash ~~collected~~flow ~~was~~from ~~processed~~financing insources ~~accordance~~compared with ~~strict~~proceeds ~~industry~~of ~~standard~~$205,292 ~~procedures~~from ~~and~~financing ~~correlating~~activities ~~data~~during ~~from~~the three months ended March 31, 2009. Overall, the 80Company ~~meter~~received ~~meteorological~~more ~~tower~~cash onfinancing ~~site~~from ~~has~~related ~~ensured~~parties ~~accurate~~in ~~compilation~~fiscal 2009 compared to fiscal 2010. During the period ended March 31, 2010, the Company received $25,773 of ~~atmospheric~~cash ~~conditions~~flows ~~during~~from the ~~testing~~issuance ~~period~~of common shares.

~~Installation~~Off-Balance ofSheet a 750 KW test turbine was completed in May 2007. ENGAA, the turbine manufacturer, immediately commenced monitoring the data from this first turbine. By July 2007, ENGAA had completed its commissioning stage of the Zhanjiang Turbine and had begun to assess and analyze the data from that turbine. Arrangements

AThe ~~Project~~Company ~~Feasibility~~has ~~Study~~no ~~Report~~material ~~and~~transactions, ~~Grid~~arrangements, ~~Connection~~obligations ~~Report~~(including ~~were~~contingent ~~finalized~~obligations), inor ~~November~~other ~~2007~~relationships bywith ~~the~~unconsolidated ~~Guangdong~~entities ~~Electric~~or ~~Power~~other ~~Design~~persons ~~Institute,~~that ~~and~~have ~~subsequently~~or ~~submitted~~are reasonably likely to ~~the~~have ~~Guangdong~~a ~~Power~~material ~~Grid~~current ~~Corporation~~or ~~for~~future ~~review~~impact on its financial condition, changes in ~~anticipation~~financial condition, results of ~~finalizing~~operations, aliquidity, ~~Power~~capital ~~Connection~~expenditures, ~~Agreement~~capital ~~(“PCA”)~~resources, or significant components of revenues or expenses.

~~Based~~Going on the completed Project Feasibility Study Report and Grid Connection Report, we executed the PCA with the local utility company, the Guangdong Power Grid Corporation, in November 2007. The local utility’s buying price with respect to each local energy producer is set by the National Development & Reform Commission (“NDRC”) upon issuance of the Construction Permit by the Guangdong Provincial Government as such buying price, though set by law, is subject to change.Concern

~~All~~We ~~testing,~~have ~~reports,~~not ~~and~~attained ~~other~~profitable ~~necessary~~operations ~~documentation,~~and ~~including~~are ~~all~~dependent ~~approvals~~upon ~~required,~~obtaining ~~were~~financing ~~submitted~~ to ~~the~~pursue ~~City~~any ofextensive ~~Zhanjiang for ratification of the Project Feasibility Study Report in June 2008~~activities. InFor ~~early~~these ~~December 2008~~reasons, ~~the~~our ~~City~~auditors ofstated ~~Zhanjiang~~in ~~approved~~their ~~the~~report ~~ZWWL Project Feasibility Study Report, a pre-requisite for submission to the Guangdong Provincial Government for the Construction Permit. Based~~ on ~~the~~our ~~Company’s~~audited ~~Project~~financial ~~Proposal~~statements ~~and~~that ~~Feasability~~they ~~Report,~~have ~~the~~substantial ~~Company~~doubt ~~received~~that awe ~~conditional~~will ~~land~~be ~~use~~able ~~permit, subject~~ to ~~the~~continue ~~issuance~~as ~~and approval of the construction permit by the Guangdong Provincial Government, for the construction of~~ a ~~wind~~going ~~farm~~concern onwithout ~~Zhanjiang,~~further ~~Donghai Island~~financing.

~~Immediately~~Future thereafter, the ZWWL submitted the City of Zhanjiang approved Project Feasibility Study Report to the Guangdong Provincial Government for issuance of the Construction Permit. After corresponding with the Guangdong Provincial Government in January and February 2009, the ZWWL was advised in March 2009 that the Federal Government of China had given preference to a major steel project on Donghai Island. As a result of this major steel project, the Guangdong Provincial Government was reassessing the location of all other projects in the area. By way of correspondence received in March 2009, the Guangdong Provincial Government asked the Company to relocate the site for its proposed wind farm to another location as all available lands on Donghai Island were being reserved for the steel project until further notice, with such steel project including an accompanying town of an estimated 100,000 people. Financings

~~Since~~We ~~such~~will ~~time~~continue ~~ZWWL has been working with the Guangdong Provincial Government~~ to ~~secure~~rely aon ~~feasible~~equity ~~alternate~~sales ~~site,~~of ~~and~~our itcommon isshares ~~expected~~in ~~that~~order ~~the~~to ~~Guangdong~~continue ~~Provincial Government will begin~~ to ~~designate~~fund ~~approved~~our ~~alternate~~business ~~sites~~operations. ~~for~~Issuances ~~the~~of ~~other~~additional ~~local~~shares ~~projects,~~will ~~including~~result ~~the~~in ~~ZWWL~~dilution ~~wind~~to ~~farm~~existing ~~project~~stockholders. WeThere ~~initially~~is ~~anticipated~~no assurance that ~~this~~we ~~process~~will ~~would~~achieve ~~occur~~any inadditional ~~June~~sales of ~~2009, however, as of~~ the ~~date~~equity ofsecurities ~~this~~or ~~Report~~arrange wefor ~~are~~debt ~~still~~or ~~attempting~~other financing to ~~find~~fund aplanned ~~suitable~~acquisitions ~~solution that is beneficial for the Company~~ and ~~the~~exploration ~~Guangdong Provincial Government~~activities. .

~~The Yangxi Project~~22

~~The~~Off-Balance ~~Yangxi~~Sheet ~~Windfarm, the subsidiary through which all operations pertaining to the Yangxi Project are handled, commenced operations in July 2006.~~Arrangements

~~The~~We ~~installation~~have ofno ansignificant 80off-balance ~~foot~~sheet ~~meteorological~~arrangements ~~tower was completed in July 2006. At~~ that ~~time,~~have weor ~~began~~are toreasonably ~~collect~~likely ~~data necessary~~ to ~~provide~~have ~~the~~a ~~information~~current ~~required~~or tofuture ~~build~~effect ~~out~~on ~~the~~our ~~wind~~financial ~~farm.~~condition, ~~Phase~~changes 1in offinancial ~~the~~condition, ~~Yangxi~~revenues ~~wind~~or ~~farm~~expenses, ~~will~~results ~~consist~~ of aoperations, 49liquidity, MWcapital ~~project.~~expenditures Weor ~~anticipate~~capital resources that ~~the~~are ~~Yangxi~~material ~~project~~to ~~will consist of a total of 400 MWs once fully completed~~stockholders.

InRecent ~~January~~Accounting 2008, after 16 months of collecting data from the tower at the Yangxi location, a formal Project Proposal was submitted to the City of Yangxi Government as well as to the Guangdong Tianlian Engineering Ltd., the Company which is actively engaged in preparing the Project Feasibility Study Report, which includes the Grid Connection Report.Pronouncements

In ~~May~~January ~~2008~~2010, the FASB issued an amendment to ASC 820, Fair Value Measurements and Disclosure, to require reporting entities to separately disclose the amounts and business rationale for significant transfers in and out of Level 1 and Level 2 fair value measurements and separately present information regarding purchase, sale, issuance, and settlement of Level 3 fair value measures on a gross basis. This standard, for which the Company ~~opened~~is ~~its~~currently ~~Yangxi~~assessing ~~office~~the impact, is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair value measures which are effective for fiscal years beginning after December 15, 2010.

24In January 2010, the FASB issued an amendment to ASC 505, Equity, where entities that declare dividends to shareholders that may be paid in cash or shares at the election of the shareholders are considered to be a share issuance that is reflected prospectively in EPS, and is not accounted for as a stock dividend. This standard is effective for interim and annual periods ending on or after December 15, 2009 and is to be applied on a retrospective basis. The adoption of this standard is not expected to have a significant impact on the Company’s consolidated financial statements.

In ~~December~~October ~~of 2008~~2009, wethe ~~submitted~~FASB aissued ~~process~~an ~~report/update~~amendment to the ~~City~~accounting ofstandards ~~Yangxi~~related ~~Government~~to certain revenue arrangements that include software elements. This ~~process~~standard ~~report~~clarifies ~~provided~~the ~~detailed~~existing ~~information~~accounting ~~about~~guidance ~~our~~such ~~plans~~that tangible products that contain both software and non-software components that function together to ~~build~~deliver the ~~wind~~product’s ~~farm.~~essential Onfunctionality, ~~December~~shall ~~24,~~be ~~2008~~excluded from the scope of the software revenue recognition accounting standards. Accordingly, wesales ~~received~~of athese ~~letter~~products may fall within the scope of ~~support~~other ~~for~~revenue ~~our~~recognition ~~project~~standards ~~from~~or may now be within the ~~City~~scope of ~~Yangxi~~this ~~Government~~standard and may require an allocation of the arrangement consideration for each element of the arrangement. This standard, for which the Company is currently assessing the impact, will become effective on January 1, 2011.

WeIn ~~anticipate~~October ~~that~~2009, FASB issued an amendment to the ~~Project~~accounting ~~Feasibility~~standards ~~Study~~related ~~Report~~to ~~and~~the ~~Grid~~accounting ~~Connection~~for ~~Report~~revenue ~~will~~in bearrangements ~~available~~with bymultiple deliverables including how the ~~end~~arrangement consideration is allocated among delivered and undelivered items of ~~December~~the ~~2009,~~arrangement. atAmong ~~which~~the ~~time~~amendments, wethis ~~anticipate~~standard ~~continuing~~eliminated the ~~process~~use of ~~attempting~~the residual method for allocating arrangement considerations and requires an entity to ~~secure~~allocate the ~~necessary~~overall ~~approvals~~consideration to ~~move~~each ~~forward~~deliverable based on an estimated selling price of each individual deliverable in the arrangement in the absence of having vendor-specific objective evidence or other third party evidence of fair value of the undelivered items. This standard also provides further guidance on how to determine a separate unit of accounting in a multiple-deliverable revenue arrangement and expands the disclosure requirements about the judgments made in applying the estimated selling price method and how those judgments affect the timing or amount of revenue recognition. This standard, for which the Company is currently assessing the impact, will become effective on January 1, 2011.

~~Supply~~In August 2009, FASB issued an amendment to the accounting standards related to the measurement of liabilities that are recognized or disclosed at fair value on a recurring basis. This standard clarifies how a company should measure the fair value of liabilities and that restrictions preventing the transfer of a liability should not be considered as a factor in the measurement of liabilities within the scope of this standard. This standard is effective for the Company on October 1, 2009. The adoption of this amendment did not have a material effect on the Company’s consolidated financial statements.

~~The~~In ~~Company~~June ~~and~~2009, ~~YATU~~the ~~Wind~~FASB ~~Energy~~issued ~~Manufacturing~~guidance ~~Co.~~now ~~Ltd.,~~codified ~~formerly~~as ~~known~~ASC as105, ~~Guangzhou~~Generally ~~Engga~~Accepted ~~Wind~~Accounting ~~Energy~~Principles ~~Co.~~as ~~Ltd.~~the ~~(“ENGGA”),~~single ~~have~~source aof ~~cooperative~~authoritative ~~relationship~~accounting ~~where~~principles recognized by the ~~Company~~FASB ~~and~~to ~~ENGGA~~be ~~will~~applied ~~work~~by ~~together~~nongovernmental onentities in the ~~technology~~preparation ~~and~~of ~~future~~financial ~~supply~~statements ofin ~~all~~conformity ~~Welwind~~with ~~turbines~~U.S. ~~The~~GAAP, ~~agreement~~aside ~~gives~~from ~~Welwind~~those ~~priority~~issued ~~for~~by ~~all~~the ~~turbines~~SEC. toASC be105 ~~manufactured~~does bynot ~~ENGGA~~change current U.S. ~~ENGGA~~GAAP, but is ~~the~~intended ~~sino-joint~~to ~~enterprise~~simplify ~~with~~user ~~the~~access ~~shareholders~~to byall ~~Britain~~authoritative ~~ENGGA~~U.S. ~~Power~~GAAP ~~Generator~~by ~~Co.,~~providing ~~Ltd.~~all ~~and~~authoritative ~~Hong~~literature ~~Kong~~related ~~ENGGA~~to ~~Investment~~a ~~Co.,~~particular ~~Ltd.~~topic ~~with~~in ~~the~~one ~~registered~~place. ~~capital~~The ~~reaching~~adoption ~~RMB30~~of ~~million~~ASC ~~and~~105 ~~specializing~~did innot ~~making,~~have ~~selling~~a ~~and~~material ~~installing~~impact ~~wind~~on ~~power~~the ~~generation~~Company’s ~~equipments,~~consolidated asfinancial ~~well~~statements, asbut ~~selling~~did ~~parts~~eliminate ofall ~~wind~~references ~~power~~to ~~generation~~pre-codification ~~equipments~~standards.

~~Competition~~Reporting Currency

~~Large~~Effective ~~utility~~January 1, ~~companies~~2005, ~~dominate~~ the ~~energy~~Company ~~production~~changed ~~industry~~its ~~and~~reporting ~~coal~~currency ~~continues~~from ~~to dominate as~~ the ~~primary~~U.S. ~~resource~~dollar ~~for~~to ~~electricity~~the ~~production~~Canadian dollar. ~~Electricity~~All ~~generated~~amounts ~~from~~set ~~wind~~forth ~~energy~~in ~~faces~~this ~~competition~~filing ~~from~~are ~~other~~in ~~traditional~~Canadian ~~resources such as nuclear~~Dollars, ~~oil~~unless ~~and~~otherwise ~~natural gas~~indicated. ~~The advantages of conventional production of electricity are that:~~

·23

~~the~~The ~~technology~~Department of Corporation Finance in its advisory letter titled International Financial Reporting and ~~infrastructure~~Disclosure ~~already~~Issues, dated ~~exist~~May ~~for~~1, 2001 has stated, “Regulation S-X presumes that a US-incorporated registrant will present its financial statements in US dollars. In rare instances, the staff has not objected to the use of ~~fossil~~a ~~fuels~~different ~~such~~reporting ascurrency. ~~coal~~Those instances have been limited to situations where the US-incorporated registrant had little or no assets and operations in the US, ~~oil~~substantially all the operations were conducted in a single functional currency other than the US dollar, and ~~natural~~the ~~gas~~reporting currency selected was the same as the functional currency. In these circumstances, reporting in the foreign currency would produce little or no foreign currency translation effects under FASB Statement No. 52.”

·First, the Company has its corporate headquarters located in Canada, and therefore has no assets or operations in the US. Second, all operations of the Company are conducted only in Canadian currency. Third, the reporting currency is in Canadian dollars which is the same currency that all operations were conducted in. Therefore, reporting in Canadian dollars would produce little or no foreign currency translation effects under FASB guidance.

~~commonly-used~~ITEM ~~fossil fuels in liquid form such as light crude oil, gasoline and liquefied petroleum gas are easy to distribute, and~~3.

·QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

~~petroleum~~We ~~energy~~are ~~density~~a ~~(an~~smaller ~~important~~reporting ~~element~~company inas ~~land~~defined ~~and~~by ~~air~~Rule ~~transportation~~12b-2 ~~fuel~~of ~~tanks)~~the inSecurities ~~terms~~Exchange Act of ~~volume~~1934 ~~(cubic space)~~ and ~~mass~~are ~~(weight)~~not isrequired ~~superior~~ to ~~some~~provide ~~alternative~~the ~~energy~~information ~~sources~~under this item.

~~However,~~ITEM ~~energy produced by conventional resources also faces a number of challenges including:~~4.

·CONTROLS AND PROCEDURES

~~the~~Management’s ~~inefficient~~Quarterly ~~atmospheric~~Evaluation ~~combustion (burning)~~ of ~~fossil~~Disclosure ~~fuels~~Controls ~~leads~~and toProcedures ~~the release of pollution into the atmosphere including carbon dioxide which is largely considered the primary cause of global warming,~~

·Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act"). Based upon that evaluation, our Chief Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of March 31, 2010, due to the material weaknesses resulting from not having an audit committee and not maintain appropriate financial reporting controls. Please refer to our Annual Report on Form 10-K as filed with the SEC on April 15, 2010, for a complete discussion relating to the foregoing evaluation of Disclosures and Procedures.

~~dependence~~Changes onin ~~fossil~~Internal ~~fuels~~Control ~~from~~Over ~~volatile~~Financial ~~regions or countries of the world creates energy security risks for dependent countries,~~Reporting

·There were no changes in internal controls over financial reporting that occurred during the three months ended March 31, 2010, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

~~fossil~~PART ~~fuels~~II ~~are non~~-~~renewable~~ ~~unsustainable~~OTHER ~~resources which will eventually decline in production and become exhausted with potentially dire consequences to societies that remain highly dependent on them, and~~INFORMATION

·ITEM 1.

~~extraction~~LEGAL ~~of fossil fuels is becoming more expensive and more dangerous as readily-available resources are exhausted and mines get deeper and oil rigs must drill deeper and further out in oceans~~PROCEEDINGS.

InWe ~~contrast~~are not a party to any pending legal proceeding. No federal, ~~electricity~~state ~~generated~~or ~~from~~local ~~wind~~governmental ~~energy:~~agency is presently contemplating any proceeding against the Company. No director, executive officer or affiliate of the Company or owner of record or beneficially of more than five percent of the Company's common stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.

·ITEM 1A.

~~produces~~RISK no water or air pollution that can contaminate the environment because there are no chemical processes involved in wind power generation; therefore, there are no waste by-products such as carbon dioxide,FACTORS.

·We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

~~does not contribute to global warming because it does not generate greenhouse gases,~~24

·ITEM 2.

isUNREGISTERED aSALES ~~renewable~~OF ~~source~~EQUITY ofSECURITIES ~~energy,~~AND ~~and~~USE OF PROCEEDS.

·1.

inIssuance ~~the case~~ of ~~community~~Equity ~~wind~~Securities ~~power,~~in ~~farming~~exchange ~~and~~for ~~grazing~~services: ~~can still take place on land occupied by wind turbines.~~

~~However, wind energy producers also face certain obstacles including:~~None.

·2.

~~the~~Convertible ~~reality that wind is unpredictable and, therefore, wind power is not predictably available, and when the wind speed decreases, less electricity is generated,~~Securities:

·None.

~~residents in communities where wind farms exist may consider them an “eyesore,” and~~3.

·Outstanding Warrants:

wind farms, depending on the location and type of turbine, may negatively affect bird migration patterns and may pose a danger to the birds themselves; however, newer, larger wind turbines have slower moving blades which seem to be visible to most birdsNone.

~~We expect that primary competition for the wind power industry will continue to come from utility company producers of electricity generated from coal and other non-renewable energy sources~~4.

25Sales of Equity Securities for Cash:

~~New entrants in the wind power development market, however, face certain barriers to entry~~None. The capital costs of buying and maintaining turbines are high. Other significant factors include the cost of land acquisition, the availability of transmission lines, land use considerations and the environmental impact of construction and operations. Finally, another critical barrier to entry into the wind power development business is the necessary experience required to bring project to the point where they are able to secure interconnection agreements, power purchase agreements and project financing for construction.

~~Wind~~ITEM ~~Energy~~3. ~~Industry Participants~~

AsDEFAULTS ~~wind~~UPON ~~energy~~SENIOR ~~technology gains wider acceptance, competition may increase as large, well-capitalized companies enter the business~~SECURITIES. As previously stated, wind energy is the fastest growing source of energy worldwide for three consecutive years. Energy companies such as British Petroleum, Shell Oil Company’s Wind Energy arm, Siemens and other major companies in the energy sector, see opportunities in wind power development. Additionally, there are many smaller companies that are seeking out opportunities in the wind energy sector.

~~In some cases, competitors may have longer operating histories, more customers, greater financial strength, more name recognition, and larger technical staffs~~None. These competitors may be able to more readily identify and acquire suitable locations to exploit the growth in the wind energy sector more easily because of their financial resources and awareness in the market. Our larger competitors can also devote substantially more resources to business development and may adopt more aggressive pricing policies.

~~Our~~ITEM ~~Competitive~~4. ~~Advantages~~

WeSUBMISSION ~~believe~~OF ~~that~~MATTERS ~~our~~TO ~~experience~~A inVOTE ~~developing~~OF ~~wind~~SECURITY ~~farm projects in new market areas will enable us to continue to successfully implement our business plan~~HOLDERS. Further, we believe our management’s understanding of deregulated energy markets enables us to maximize the value of our development portfolio. Our team has experience in site selection, market analysis, land acquisition, community relations, permitting, financing, regulation and construction.

~~As a result of our project portfolio and management team, we enjoy strong relationships with key trading partners that are required for successful wind farm development~~None. These relationships include regulators, turbine suppliers, electric component suppliers, equity investors, project lenders, engineering firms, constructors, electric transmission operators and electric utilities.

~~Intellectual~~ITEM ~~Property~~5.

WeOTHER ~~depend on our ability to develop and maintain the proprietary aspects of our technology to distinguish our products from our competitors’ products~~INFORMATION. To protect our proprietary technology, we rely primarily on a combination of confidentiality procedures. It is our policy to require employees and consultants to execute confidentiality agreements and invention assignment agreements upon the commencement of their relationship with us. These agreements provide that confidential information developed or made known during the course of a relationship with us must be kept confidential and not disclosed to third parties except in specific circumstances and for the assignment to us of intellectual property rights developed within the scope of the employment relationship.

~~Governmental Regulation~~None.

WeITEM ~~do not use, generate or discharge toxic, volatile or otherwise hazardous chemicals and wastes in our research and development and manufacturing activities~~6. ~~However, we are subject to a variety of foreign, federal, state and local governmental regulations. At this time, we believe that we have all permits necessary to conduct our business.~~

We are not aware of any environmental investigation, proceeding or action by foreign, federal or state agencies involving our current facilities or operations. If we fail to comply with present or future environmental regulations, we could be subject to fines, suspension of production or a cessation of operations. Any failure by us to adequately comply with existing and future regulations could subject us to financial liabilities, operational interruptions and adverse publicity, any of which could materially and adversely affect our business, results of operations and financial condition. EXHIBITS

Employees


Exhibit Number	Description of Exhibit	Filing
3.01	Articles of Incorporation	Filed with the SEC on January 17, 2008 as part of our Registration Statement on Form SB-2.
3.02	Bylaws	Filed with the SEC on January 17, 2008 as part of our Registration Statement on Form SB-2.
21.1	Subsidiaries of Company at March 31, 2010	Filed herewith.
31.01	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13a-14	Filed herewith.
32.02	CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith.

As of September 30, 2009, we employed 7 full-time employees. None of our employees is subject to a collective bargaining agreement and we believe that relations with our employees are very good. We also frequently use third party consultants to assist in the completion of various projects. Third parties are instrumental to keep the development of projects on time and on budget.25

26SIGNATURES

~~Change~~Pursuant into ~~Reporting~~the ~~Currency~~requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Effective January 1, 2005, the Company changed its reporting currency from the U.S. dollar to the Canadian dollar. The reason for this change was because a majority of the Company’s assets and operations are located in Canada. All amounts set forth in this filing are in Canadian Dollars, unless otherwise indicated.



	WELWIND ENERGY INTERNATIONAL CORP.

Dated: May 20, 2010	By: /s/ Tammy-Lynn McNabb
		TAMMY-LYNN MCNABB
		Chief Executive Officer, Chief Financial Officer, President, Secretary and Treasurer

~~Available Information~~26

We file electronically with the Securities and Exchange Commission our annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934. You may obtain a free copy of our reports and amendments to those reports on the day of filing with the SEC by going to http://www.sec.gov.

Results of Operations

	For the Three Months Ended September 30, 2009 $	Change from Prior Period %	For the Three Months Ended September 30, 2008 $	Change from Prior Period %
Operating Expenses	305,491	(21.89)	1,683,087	215.09
Net Loss from Continuing Operations	(305,491)	(21.89)	(1,683,087)	215.09
Other Income (Expense)	-	-	(1,302,244)	1146.46
Net Loss before Discontinued Operations	(305,491)	(2189)	(2,985,331)	367.45
Discontinued Operations	-	-	1,367	18.53
Net Loss for the Year	(305,491)	(21.89)	(2,983,964)	368.47

General and Administrative Expenses

During the three month period ended September 30, 2009, the Company incurred general and administrative expenses of $305,491compared to $1,683,087 in the same period in the previous year, this is a decrease of 81.8% or $1,377,596.

Net Loss

During the period ended September 30, 2009, the Company incurred a net loss of $305,491 compared to a net loss of $2,985,331 in the same period in the previous year. The 89.8% decrease of $2,679,840 in net loss was mainly attributable to a decrease in the loss on the settlement of debt of $1,302,244.

As at September 30, 2009, the Company had $9,455 in cash, total current assets of $35,184, and current liabilities of $1,957,609. The Company may require additional capital investments or borrowed funds to meet cash flow projections and carry forward our future business objectives. There can be no assurance that the Company will be able to raise capital from outside sources in sufficient amounts to fund the business.

The failure to secure adequate outside funding would have an adverse affect on our expansion plan of operation and results there from and a corresponding negative impact on shareholder liquidity.

During the period ended September 30, 2009, the Company used $542,365of net cash flows in operating activities.

Uses of Liquidity

The Company's cash requirements through the end of fiscal 2009 are primarily to fund operations and to complete the wind farm projects in China.

Sources of Liquidity

The Company’s primary source of liquidity for its short-term cash needs is expected to be from cash and cash equivalents currently on hand. The Company believes that will be able to borrow additional funds if needed.

Cash Requirements

Our cash on hand as of September 30, 2009 is $9,455. We have sufficient cash on hand to pay the costs of some of our operations as projected to twelve (12) months or less and to fund our operations for that same period of time. However, we will require additional financing in order to proceed with some or all of our goals as projected over the next twelve (12) months. We presently do not have any arrangements for potential lines of credit or sources of financing for the purpose of proceeding with any of our goals projected over the next twelve (12) months and beyond.

Any additional growth of the Company may require additional cash infusions. We may face expenses or other circumstances such that we will have additional financing requirements. In such event, the amount of additional capital we may need to raise will depend on a number of factors. These factors primarily include the extent of operating expenses, research and development expenses, and capital expenditures. Given the number of programs that we have ongoing and not complete, it is not possible to predict the extent or cost of these additional financing requirements.

Notwithstanding the numerous factors that our cash requirements depend on, and the uncertainties associated with each of the major revenue opportunities that we have, we believe that our plan of operation can build long-term value if we are able to demonstrate clear progress toward our objectives.

Progress in the development of our business plan will likely lend credibility to our plan to maintain profitability. We hired several members to our sales, marketing, research and development, regulatory and administrative staff during the course of 2007 in order to fully implement our plans for growth.

The Company does not anticipate any contingency upon which it would voluntarily cease filing reports with the SEC, even though it may cease to be required to do so. It is in the compelling interest of this Registrant to report its affairs quarterly, annually and currently, as the case may be, generally to provide accessible public information to interested parties, and also specifically to maintain its eligibility for the OTCBB.

The failure to secure any necessary outside funding would have an adverse affect on our development and results there from and a corresponding negative impact on shareholder liquidity.

Our plan of operation calls for significant expenses in connection with the implementation of our business plan over the course of the next 24 months. For the next twelve months, management anticipates that the minimum cash requirements to fund our proposed goals and our continued operations will be at least $500,000. As such, we do not have sufficient funds on hand to meet our planned expenditures over the next 24 months. Therefore, we may require and may need to seek additional financing to meet our planned expenditures.

Obtaining additional financing would be subject to a number of factors, including development of our business plan and interest in our company. These factors may make the timing, amount, terms or conditions of additional financing unavailable to us. Since our inception, we have relied on our revenues to fund our operations and have used our common stock to raise money for our operations as well.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our investors.

Critical Accounting Policies

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make a wide variety of estimates and assumptions that affect (i) the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and (ii) the reported amounts of revenues and expenses during the reporting periods covered by the financial statements. Our management routinely makes judgments and estimates about the effect of matters that are inherently uncertain. As the number of variables and assumptions affecting the future resolution of the uncertainties increases, these judgments become even more subjective and complex. The most significant accounting policies that are most important to the portrayal of our current financial condition and results of operations are as follows:

Revenue Recognition

The Company recognizes revenue in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104 (“SAB 104”), “Revenue Recognition in Financial Statements”.

RECENT ACCOUNTING PRONOUNCEMENTS

Effective June 30, 2009, the Company adopted a new accounting standard issued by the FASB related to the disclosure requirements of the fair value of the financial instruments. This standard expands the disclosure requirements of fair value (including the methods and significant assumptions used to estimate fair value) of certain financial instruments to interim period financial statements that were previously only required to be disclosed in financial statements for annual periods. In accordance with this standard, the disclosure requirements have been applied on a prospective basis and did not have a material impact on the Company’s financial statements.

In June 2009, the Financial Accounting Standards Board ("FASB") established the FASB Accounting Standards Codification ( the "Codification") as the source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange Commission ("SEC") under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The introduction of the Codification does not change GAAP and other than the manner in which new accounting guidance is referenced, the adoption of these changes had no impact on the our consolidated financial statements.

Recently Issued Accounting Standards

In August 2009, the FASB issued an amendment to the accounting standards related to the measurement of liabilities that are recognized or disclosed at fair value on a recurring basis. This standard clarifies how a company should measure the fair value of liabilities and that restrictions preventing the transfer of a liability should not be considered as a factor in the measurement of liabilities within the scope of this standard. This standard is effective for the Company on October 1, 2009. The Company does not expect the impact of its adoption to be material to its financial statements.

In October 2009, the FASB issued an amendment to the accounting standards related to the accounting for revenue in arrangements with multiple deliverables including how the arrangement consideration is allocated among delivered and undelivered items of the arrangement. Among the amendments, this standard eliminated the use of the residual method for allocating arrangement considerations and requires an entity to allocate the overall consideration to each deliverable based on an estimated selling price of each individual deliverable in the arrangement in the absence of having vendor-specific objective evidence or other third party evidence of fair value of the undelivered items. This standard also provides further guidance on how to determine a separate unit of accounting in a multiple-deliverable revenue arrangement and expands the disclosure requirements about the judgments made in applying the estimated selling price method and how those judgments affect the timing or amount of revenue recognition. This standard, for which the Company is currently assessing the impact, will become effective for the Company on January 1, 2011.

In October 2009, the FASB issued an amendment to the accounting standards related to certain revenue arrangements that include software elements. This standard clarifies the existing accounting guidance such that tangible products that contain both software and non-software components that function together to deliver the product’s essential functionality, shall be excluded from the scope of the software revenue recognition accounting standards. Accordingly, sales of these products may fall within the scope of other revenue recognition standards or may now be within the scope of this standard and may require an allocation of the arrangement consideration for each element of the arrangement. This standard, for which the Company is currently assessing the impact, will become effective for the Company on January 1, 2011.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures.

As required by Rule 13a-15 under the Exchange Act, our management, including Tammy-Lynn McNabb, our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2008, and updated the disclosure for the period ended September 30, 2009.

Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating and implementing possible controls and procedures.

Management conducted its evaluation of disclosure controls and procedures under the supervision of our chief executive officer and our chief financial officer. Based on that evaluation, Ms. McNabb concluded that because of the material weaknesses in internal control over financial reporting described below, our disclosure controls and procedures were not effective as of June 30, 2009 and December 31, 2008.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2008, and reviewed our internal controls over financial reporting for the period ended September 30, 2009 using the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control over financial reporting as of September 30, 2009 and December 31, 2008, the Company determined that there were control deficiencies that constituted material weaknesses, as described below:

As of September 30, 2009, effective controls over the control environment were not maintained. Specifically, a formally adopted written code of business conduct and ethics that governs to the Company’s employees, officers and directors was not in place. Additionally, management has not developed and effectively communicated to its employees its accounting policies and procedures. However, the Company’s financial reporting process is centralized around the Company’s Chief Executive Officer and an external consulting firm responsible for the Company’s financial reporting and policies surrounding the day-to-day transactions of the Company’s financial reporting and record-keeping in Canada and China have been implemented and reviewed by management with no material errors during the year ended December 31, 2008. The Company is currently evaluating its internal controls over the control environment.

The Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-B. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

As of September 30, 2009, effective controls over financial statement disclosure were not maintained. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness. The Company continues to engage a third-party financial statement provider to prepare the required annual and quarterly financial statements to assist in the Company’s filing requirements.

As of September 30, 2009, effective controls over equity transactions were not maintained. Specifically, controls were not designed and in place to ensure that equity transactions were properly reflected. Accordingly, management has determined that this control deficiency constitutes a material weakness. The Company, through its financial statement provider, are ensuring that equity transactions in fiscal 2009 are being recorded promptly and that appropriate valuation of the common shares are recorded for financial reporting purposes.

Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.

As a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control over financial reporting as of September 30, 2009 based on criteria established in Internal Control—Integrated Framework issued by COSO.

Continuing Remediation Efforts to address deficiencies in Company’s Internal Control over Financial Reporting

Our management and Board of Directors plan to establish the following remediation measures during the fiscal year ending December 31, 2009:

Our Board of Directors will nominate an audit committee and audit committee financial expert to ensure that we establish appropriate internal controls over our financial reporting process, including formal review and approval of our financial statements and the review, implementation, and monitoring of necessary internal controls, procedures, and policies to mitigate the potential risk of material misstatement of our financial records.

Our management and Board of Directors are currently finalizing a formal code of ethics that will outline the policies and procedures regarding management, directors, and employees of the Company as well as formalize existing policies and procedures surrounding the Company’s financial reporting requirements.

Changes in Internal Controls

There were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2009 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION.

ITEM 1. LEGAL PROCEEDINGS.

From time to time, we are involved in routine legal matters incidental to our business. In the opinion of management, the ultimate resolution of such matters will not have a material adverse effect on our financial position, results of operations or liquidity.

Consistent with Item 103 of Regulation S-K, we are presently involved in the following material pending legal proceedings not incidental to the business of the Company:

On August 14, 2009, Chong Jian Zhao filed a suit in the Supreme Court of British Columbia naming the Registrant as the sole defendant. Mr. Zhao alleges that he is entitled to certain shares of the Registrant's common stock for services rendered. The Registrant disputes Mr. Zhao's claims. Mr. Zhao is seeking for specific performance as to the shares he claims that he is owed.

On September 22, 2009, Manning Elliott LLP ("ME") filed a suit in the Supreme Court of British Columbia naming the Registrant as the sole defendant. ME alleges that the Registrant has failed to pay certain monies owed to ME for services rendered. The Registrant disputes the amount owed. ME is seeking payment of all outstanding fees.

ITEM 1A. RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Issuance of Equity Securities in exchange for services:

On August 26, 2009, the Registrant issued 5,000,000 shares of its common stock as payment to a consultant for services. The shares were valued at $98,802, which represents the value of the services on the award date.

On October 26, 2009, the Registrant issued 2,000,000 shares of its restricted common stock as payment to a related party to settle outstanding debt. The shares were valued $0.012 per share, which represents the value of the services on the award date.

On November 19, 2009 the Registrant issued 2,650,000 shares of its restricted common stock as payment to settle outstanding debt. The shares were valued at $0.01 per share, which represents the value of the debt on the award debt.

On November 19, 2009 the Registrant issued 10,000,000 shares of its restricted common stock as payment to a related party to settle outstanding debt. The shares were valued at $0.01 per share, which represents the value of the debt on the award debt.

On November 19, 2009 the Registrant issued 1,500,000 shares of its restricted common stock as payment to a law firm based in British Columbia for services. The shares were valued at $0.01 per share, which represents the value of the services on the award debt.

Convertible Securities:

None.

Outstanding Warrants:

None

Sales of Equity Securities for Cash:

None.

Other Issuances:

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

ITEM 5. OTHER INFORMATION.

None

ITEM 6. EXHIBITS

The following exhibits are filed with this Quarterly Report on Form 10-Q:

EXHIBIT NUMBER	DESCRIPTION	LOCATION
3.1 - 3.2	Articles of Incorporation and Bylaws	Incorporated by reference as Exhibits to the Form 8-K filed on December 12, 2004 as amended on February 3, 2005.
10.1	Share Exchange Agreement between Vitasti, Inc. and Welwind Energy International Corporation.	Incorporated by reference as an Exhibit to the Form 8-K filed on August 17, 2006 as amended on December 20, 2006.
31.1	Rule 13a-14(a)/15d-14(a) Certification (CEO)	Filed herewith
31.2	Rule 13a-14(a)/15d-14(a) Certification (CFO)	Filed herewith
32.1	Section 1350 Certification (CEO)	Filed herewith
32.2	Section 1350 Certification (CFO)	Filed herewith

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the Undersigned, thereunto duly authorized.

WELWIND ENERGY INTERNATIONAL CORP.

Dated: December 16, 2009

/s/ Tammy-Lynn McNabb

By: Tammy-Lynn McNabb

Its: President and CEO

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