UNITED STATES ~~SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549~~

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

(Mark One)
[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended		April 30, 2012
[ ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from		[ ] to [ ]
Commission file number		000-52747

~~For~~NEOLOGIC ~~the~~ANIMATION ~~fiscal~~INC. ~~year~~(Exact ~~ended~~name ~~April~~of ~~30,~~registrant ~~2011~~as specified in its charter)

~~Commission~~Nevada ~~file~~N/A ~~number~~(State ~~000-52747~~or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

CHINA FOREST ENERGY CORP.(Exact name of registrant as specified in its charter)

Jindi Garden, Boyage, Xihu District, Hangzhou, Zhejian, P.R. China		N/A
(Address of principal executive offices)		(Zip Code)
Registrant's telephone number, including area code:		011 86 1358 841 1118

Nevada(State or other jurisdiction of incorporation or organization)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Name of Each Exchange On Which Registered

N/A

#41 Huancheng Road Xinjian Township Jinyun County Zhejiang, P.R. China(Address of principal executive offices, including zip code.)

Securities registered pursuant to Section 12(g) of the Act:
Common stock, par value of $0.00001
(Title of class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 the Securities Act.
	Yes ¨ No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act
	Yes ¨ No x

011 86 578 388 1262(Registrant's telephone number, including area code)

Indicate by check 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 for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the last 90 days.
					Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (§229.405 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 x No ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) 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.
					¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
					Yes ¨ No x

~~CHINA~~The ~~FOREST~~aggregate ~~ENERGYCORP(Former~~market ~~name~~value of Common Stock held by non-affiliates of the Registrant on October 31, ~~former address~~2011 was $Nil based on a $Nil average bid and ~~former~~asked ~~fiscal~~price ~~year~~of such common equity, ifas ~~changed~~of ~~since~~the last ~~report)~~business day of the registrant’s most recently completed second fiscal quarter.

Indicate bythe ~~check~~number ~~mark~~of ifshares outstanding of each of the registrant’s isclasses aof ~~well-known seasoned~~common ~~issuer,~~stock as ~~defined~~of inthe ~~Rule~~latest ~~405~~practicable ofdate: ~~the~~185,000,000 ~~Securities~~common ~~Act.~~shares [as ]of ~~Yes~~August ~~No [X]~~14, 2012

~~Indicate~~ DOCUMENTS byINCORPORATED ~~check~~BY ~~mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act: [ ] Yes No [X]~~REFERENCE

Indicate by check mark whether the registrant(1) has filed all reports required 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 was required to file such reports), and (2) has been subject to such filing requirements for the past 90 dayNone. ~~[X] Yes [ ] No~~

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (§229.405 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 [ X ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulations 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. [ ]

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

Large Accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X] (Do not check if a smaller reporting company)

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

The aggregate market value of Common Stock held by non-affiliates of the Registrant on October 29, 2010 was $Nil based on a $Nil average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.

Indicate the number of shares outstanding of each of the Company’s classes of common stock, as of the latest practicable date. 18,081,000 shares as of August 2, 2011

TABLE OF CONTENTS

PART I			Page
Item 1	Business	4
	Item 1.	Business.	4
Item 1A	Risk Factors	10
	Item 1A.	Risk Factors.	12
Item 1B	Unresolved Staff Comments	17
	Item 1B.	Unresolved Staff Comments.	12
Item 2.	Properties	17
	Item 2.	Properties.	12
Item 3	Legal Proceedings	17
	Item 3.	Legal Proceedings.	12
Item 4	Mine Safety Disclosures	17
	Item 4.	Removed and Reserved.	12
Item 5	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	18
PART II
Item 6	Selected Financial Data	19
	Item 5.	Market For Common Stock and Related Stockholder Matters.	12
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
	Item 6.	Selected Financial Data	13
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	22
	Item 7.	Management’s Discussion and Analysis of Financial Condition or Plan of Operation.	14
Item 8	Financial Statements and Supplementary Data	22
	Item 7A.	Quantitative and Qualitative Disclosures about Market Risk.	18
Item 9	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	23
	Item 8.	Financial Statements and Supplementary Data.	F-1
Item 9A	Controls and Procedures	23
	Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure	19
Item 9B	Other Information	25
	Item 9A.	Controls and Procedures	19
Item 10	Directors, Executive Officers and Corporate Governance	25
	Item 9B.	Other Information	21
Item 11	Executive Compensation	30
PART III
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	32
	Item 10.	Directors, Executive Officers, Promoters and Control Persons; Compliance with Section 16(a) of the Exchange Act	22
Item 13	Certain Relationships and Related Transactions, and Director Independence	33
	Item 11.	Executive Compensation	26
Item 14	Principal Accounting Fees and Services	33
	Item 12.	Security Ownership of Certain Beneficial Owners and Management	27
Item 15	Exhibits, Financial Statement Schedules	34
	Item 13.	Certain Relationships and Related Transactions, and Director Independence	28
	Item 14.	Principal Accountant Fees and Services.	29
PART IV
	Item 15.	Exhibits, Financial Statement Schedules.	30

PART I

ITEMItem 1. BUSINESSBusiness

This annual report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors”, that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

In this annual report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

As used in this ~~current~~annual report ~~and unless otherwise indicated~~, the terms "we", "us", "our" and "our company" mean Neologic Animation Inc., and our wholly-owned subsidiary, Full East International Limited., a British Virgin Islands company and Full East's wholly owned subsidiary, Hangzhou Naniya Technology Co. Ltd., a People's Republic of China ~~Forest~~company ~~Energy~~and ~~Corp~~Hangzhou Xuerun Education & Technology Ltd. a People's Republic of China company of which Full East holds a controlling contractual interest, unless otherwise ~~stated~~indicated.

~~General~~Corporate Overview

We were incorporated in the State of Nevada on January 26, 2006 under the name "Henix Resources, Inc". Our Onoriginal ~~December~~business ~~16,~~was ~~2010,~~as wean ~~changed~~exploration ~~our~~stage ~~name~~corporation toengaged ~~China Forest~~in ~~Energy~~the ~~Corp.~~search byfor ~~way~~mineral ofdeposits aor ~~merger~~reserves ~~with our wholly-owned subsidiary China Forest Energy Corp.~~ which ~~was~~are ~~formed~~not ~~for~~in ~~the~~either ~~sole purpose of~~ the ~~change~~development ofor ~~name. In~~production ~~addition to our change of name, we effected a nine (9) for one (1) forward split of our authorized and issued and outstanding common shares~~stage. ~~Our preferred shares were not affected by the stock split.~~

~~Our~~On ~~principal~~December ~~business~~16, ~~address~~2010, iswe ~~#41~~changed ~~Huancheng~~our ~~Road,~~name ~~Xinjian Township,~~to ~~Jinyun~~"China ~~County,~~Forest ~~Zhejian,~~Energy PCorp.R." by way of a merger with our wholly-owned subsidiary China Forest Energy Corp. ~~Our~~which ~~telephone~~was ~~number~~formed isfor ~~011~~the 86sole ~~578 388~~purpose ~~1262~~of the change of name. In addition to our change of name, we effected a nine (9) for one (1) forward split of our authorized and issued and outstanding common shares. Our preferred shares were not affected by the stock split.

~~Current~~On ~~Business~~November 18, 2011, we received consent resolutions from our directors and officers, and the holder of 54.3% of our issued and outstanding securities, to change our name to "Narnia Corp.", to reduce the authorized capital to 400,000,000 shares of common stock with a par value $0.00001 and to effect a 9:1 forward stock split of the Company’s issued and outstanding shares of common stock. Upon effect of the forward stock split, our issued and outstanding shares of common stock increased to 162,729,000 shares of common stock with a par value of $0.00001. The change of name and decrease to our authorized capital became effective with the Nevada Secretary of State on January 18, 2012. The stock split became effective with Financial Industry Regulatory Authority on January 25, 2012.

WeOn ~~are~~May an7, ~~exploration~~2012, ~~stage~~we ~~company~~filed inArticles ~~the~~of ~~business~~Merger ofwith the ~~acquisition~~ ~~and~~Nevada ~~exploration~~Secretary of ~~mineral~~State ~~properties~~to change our name from "Narnia Corp." to As"Neologic atAnimation ~~the~~Inc.", ~~date~~to be effected by way of ~~this~~a ~~annual report,~~merger wewith doour wholly-owned ~~not~~subsidiary ~~own~~Neologic orInc., ~~have~~which ~~any~~was ~~rights~~created tosolely ~~any~~for ~~mineral~~the ~~property~~name change.

On December 16, 2010, we filed articles of merger with our wholly-owned subsidiary to change our name to China Forest Energy Corp. and filed a certificate of change with the Nevada Secretary of State to give effect to a forward split of our authorized and issued and outstanding shares of common stock on a nine (9) new for one (1) old basis. Upon effect of the forward stock split, our authorized capital increased from 100,000,000 to 900,000,000 shares of common stock and, correspondingly, our issued and outstanding increased from 2,009,000 to 18,081,000 shares of common stock, with a par value of $0.00001. Our preferred stock was unaffected as a result of the forward split. 4

4The name change became effective on May 11, 2012 upon approval from the Financial Industry Regulatory Authority. Our CUSIP number is 64049V 100

OnEffective ~~January~~May 1214, ~~2011~~2012, we ~~entered~~acquired ~~into~~Full ~~share~~East ~~exchange~~International ~~agreement with Zhejiang Forest Bamboo Tec Co.~~Limited, ~~Ltd.~~ a ~~People’s Republic of China corporation and Forest Energy Co., Ltd., a~~ British Virgin Islands corporation~~. Forest~~ ~~Energy~~("Full CoEast")., ~~Ltd.~~Through isits ~~the~~subsidiaries ~~registered~~Full ~~and~~East ~~beneficial~~provides ~~owner~~a ofrange ~~all~~ of ~~the issued~~goods and ~~outstanding~~services ~~common shares~~ in the ~~capital~~areas of ~~Sinoport~~information ~~Enterprises Limited,~~technology aand ~~British~~interactive ~~Virgin Islands corporation~~education. The ~~Sinoport~~acquisition iswas ~~the~~carried ~~sole~~out ~~owner~~in ofaccordance ~~all share~~with ~~capital of USCNHK Group Limited,~~ a ~~Hong~~Share ~~Kong~~Exchange ~~corporation~~Agreement ~~and~~dated ~~USCNHK~~May ~~is the owner of 95%~~7, or2012 ~~76,000,000~~among ~~shares,~~our ~~of the share capital of Zhejiang Forest Bamboo Tec Co., Ltd. Our~~ company ~~has agreed to issue 15~~,~~919,000~~ ~~common~~Full ~~shares to the Forest Energy Co.~~East, ~~Ltd.’s~~and ~~shareholder as consideration for~~ the ~~purchase~~selling ~~of 50,000~~shareholders ~~common shares~~ of ~~Zhejiang~~Full ~~Forest Bamboo Tec Co~~East., Ltd. Upon closing of the share exchange, Yongfu Zhu, one of our current officers and directors, will cancel 9,000,000 shares of our common stock held in his name and we will have no more than 25,000,000 shares of common stock issued and outstanding. As of the date of this annual report, the share exchange agreement has not been closed.

IfFull weEast ~~are~~was ~~not~~incorporated ~~able~~in tothe ~~close~~British ~~the~~Virgin ~~share~~Islands ~~exchange~~on ~~agreement~~May 4, ~~we will~~2011. ~~continue~~It ~~with~~has ~~our~~the ~~original~~expertise ~~plan~~in the business of ~~acquisition~~providing advisory and ~~exploration~~services ofin ~~mineral properties.~~developing, ~~This~~marketing, ~~business~~and isdistributing ~~further~~educational ~~described~~cards ~~below~~used as a tool to educate children through the means of online games.

~~Our~~Full ~~proposed~~East ~~exploration~~has ~~program~~one wholly owned subsidiary, Hangzhou Naniya Technology Co., Ltd., a wholly-owned foreign enterprise established on July 7, 2011, and organized under the laws of the People’s Republic of China. Naniya's main business is information technology consulting, technology and project planning; as well as non-cultural education and training for children and adults; computer software, technology development, technical services and technical advice.

WeFull ~~intend~~East toalso ~~acquire~~holds a ~~property and~~controlling ~~prospect~~contractual ~~for~~interest ~~gold~~ in ~~China.~~Hangzhou ~~Our~~Xuerun ~~target~~Education is& ~~mineralized~~Technology, ~~material~~Ltd.. ~~Our~~Xuerun ~~success depends~~was ~~upon~~incorporated ~~finding~~in ~~mineralized~~the ~~material.~~City ~~Mineralized~~of ~~material~~Hangzhou, Province of Zhejiang, PRC on July 5, 2011. Xuerun's main business is aengaged ~~mineralized body~~in ~~which~~creating ~~has~~online ~~been~~educational ~~delineated~~games byfor ~~appropriate~~students ~~spaced~~who ~~drilling~~are orin ~~underground sampling~~primary toschool ~~support~~and ~~sufficient~~middle ~~tonnage~~school in China and ~~average~~is ~~grade~~in the development and creation of ~~metals~~a website to ~~justify removal~~educate children how to develop and hone their creative skills through interactive educational games that incorporate Adobe Flash. IfThe wegames doincorporate ~~not~~a ~~find~~curriculum ~~mineralized~~that ~~material~~has orbeen wedeveloped ~~cannot~~by ~~remove~~some ~~mineralized material,~~of ~~either~~China’s ~~because~~top weprofessors doand ~~not~~child ~~have~~psychology ~~the~~experts. ~~money~~It tosets doitself itapart orfrom other after school programs in China because it isdeviates ~~not economically~~from ~~feasible~~the totraditional domethods itof Chinese education, wewhich ~~will~~rely ~~cease~~heavily ~~operations~~on repetition and memorization, causing children to act in a generally conformist manner and to have similar thought processes. By stimulating the child’s thought processes; the child’s attention is focused on the subject at hand.

InPrior ~~addition, we do not have enough money~~ to ~~complete~~ the ~~exploration~~closing of ~~any~~the ~~property.~~Share WeExchange ~~will~~Agreement ~~try~~dated toMay ~~raise additional~~7, ~~funds~~2012 ~~from~~our afiscal ~~public~~year ~~offering,~~end awas ~~private~~April ~~placement or loans~~30. Subsequent Atto the ~~present~~ ~~time~~closing, weour ~~have~~fiscal ~~not~~year ~~made~~end changed ~~any plans~~ to December ~~raise additional money and there is no assurance that we would be able to raise additional money in the future~~31. ~~If we need additional money and cannot raise it, we will have to suspend or cease operations.~~

~~After~~We wemaintain ~~acquire~~our abusiness ~~property,~~offices ~~we must~~at ~~conduct~~Jindi ~~exploration~~Garden, toBoyage, ~~determine~~Xihu ~~what~~District, ~~amount of minerals~~Hangzhou, ~~if any~~Zhejiang, ~~exist~~People's ~~on the~~Republic ~~properties~~of ~~and~~China ~~if any minerals which are found can be economically extracted~~ and ~~profitably~~our ~~processed.~~telephone ~~There~~number is no(86) ~~assurance~~1358 ~~that~~841 ~~we will ever acquire an option on a property or any property underlying an option~~1118.

~~We intend to seek out raw undeveloped property by retaining the services of a professional mining geologist to be selected. As of the date of this report, we have not selected a geologist.~~ Our ~~properties~~Current ~~will~~Business ~~in all likelihood be undeveloped raw land. That is because raw undeveloped land is much cheaper than to purchase an existing developed property. A developed property is one with a defined ore body.~~

~~Thereafter~~Pursuant to our acquisition of Full East on May 14, ~~exploration~~2012, ~~will~~we ~~be initiated~~are now an online gaming and educational company that plans to provide interactive web based educational content and online games to primary school students.

WeOur doflagship ~~not~~product ~~know~~is ifNaniya weWorld, an after school education website for primary school students in China. The website, www.kkl123.com, which incorporates many aspects of the educational experience together with an interesting and fun approach to learning to help teach children and maintain their focus on their studies. The website adopts Flash games to explain subject knowledge in an exciting manner, and is designed in a way that will ~~find mineralized~~cover ~~material~~areas of human intelligence that is necessary for children to conquer in their early primary school years. The games are designed to be interactive and incorporate an entire community of users that can interact with each other in social and educational ways. Naniya World is focused on cultivating students’ independent learning capacity as well as their self-development capacity in order to foster creative and productive thought processes.

5Subjects covered on the website range from art and music to science and math to language to cultural education. The program is extremely well thought out and is developed by top professors and educators in China. It sets itself apart from other after school programs in China because it deviates from the traditional ways of Chinese education, which incorporate dull and boring ways of educating which do not inspire the child’s thought process but rather focus on memorization and teach children to act in generally the same manner and have similar thought processes. By stimulating the child’s thought process, the child’s attention is focused on the subject at hand.

~~Our exploration program is designed to economically explore any property we may obtain. Again, at the present time we do not own any interest in any properties.~~5

WeThe docore ~~not~~of ~~claim~~Naniya World’s product and services is its website which has several modules that incorporates after-school education and interactive games, allowing the student to ~~have~~become ~~any~~part ~~minerals or~~of ~~reserves~~the ~~whatsoever~~story and keeping the child’s on the subject matter. The modules not only focus on creating an atmosphere of quality education, but also focus on developing good study habits among other useful habits. The educational part focuses on developing eight areas of intelligence mentioned later in this business plan.

WeMarketing ~~intend to implement an exploration program which consists~~ of ~~rock sampling. Rock sampling is~~ the ~~collection~~ ofwebsite awill ~~series~~initially ofoccur ~~small~~in ~~chips~~the ~~over~~Yangtze aRiver ~~measured distance~~Delta, ~~which~~incorporating isthe ~~then submitted for a chemical analysis~~Zhejiang, ~~usually~~Jiangsu ~~to determine the metallic content over the sampled interval~~Hangzough, aand ~~predetermined~~Shanghai ~~grid laid out on the property~~Regions. ~~If the rock sampling is successful~~Afterwards, ~~then~~after ~~further~~stable ~~work~~revenue ~~by way of a Controlled Source Magnetotelluric survey may be in order. This~~ is angenerated ~~electromagnetic method used to map the variation of the Earth's resistivity (the resistance of the earth to conduct electricity) by measuring naturally occurring electric~~ and ~~magnetic fields~~word ~~at the Earth's surface. This process gives an indication~~ of ~~where drilling~~mouth ~~locations~~gets ~~may be warranted. If drilling were to be indicated~~out, ~~then our first choice would be Reverse Circulation Drilling. This is a less expensive form of drilling that does not allow for~~ the ~~recovery~~Company ofwill afocus ~~tube~~on ordeveloping ~~core~~its ofefforts ~~rock. The material is brought up from depth as a series of small chips of rock that are then bagged and sent~~ in ~~for analysis. This is a quicker and cheaper method of drilling, but does not necessarily give one as much information about~~ the ~~underlying~~ ~~rocks.~~Pearl IfRiver ~~warranted,~~Delta ~~core~~in ~~sampling~~South ~~would follow this stage~~China. ~~Core sampling~~Later ~~is the process of drilling holes to a depth of up to 1~~on,~~400~~ ~~feet~~marketing ~~in order to extract samples of earth. Our mining engineer~~ will ~~determine where drilling will~~ occur onin ~~the~~other ~~property.~~areas As of the ~~date~~east coast of ~~this registration statement~~China, weincluding ~~have not retained the services of any mining engineers~~Beijing, Tianjin and ~~would not~~other ~~entertain~~port ~~doing so until an appropriate property has been secured~~cities. Marketing ~~The drill samples~~ will be ~~tested~~focused totowards ~~determine~~parents ifrather ~~mineralized~~than ~~material~~children. We iswill ~~located~~form onpartnerships ~~the property.~~with ~~Based~~after ~~upon~~school ~~the~~training ~~tests~~centers ofin the ~~drill~~aforementioned ~~samples,~~areas weand will ~~determine~~form ifagreements ~~we will terminate operations; proceed~~ with ~~additional~~them ~~exploration~~so ofthey ~~the~~can ~~property; or~~use ~~develop~~ the ~~property.~~website ~~Our~~during ~~current~~their ~~financial condition is designed to only fund the costs of rock sampling and testing~~lessons.

~~Our plan of operation~~Market, ~~time~~Customers ~~frames involved~~ and ~~costs~~Distribution ~~are~~Methods ~~as follows:~~

Item or Activity		Cost
Property Acquisition	$	10,000
Consulting Service	$	5,000
Surface Sampling & Geochemical Analysis	$	15,000
Mobilization/Demobilization Contractor	$	12,000
Dozer, Grader, Backhoe, ATV	$	12,000
Reclamation/Bond	$	3,000
Field Supplies	$	300
Travel Expenses	$	3,000

There are currently over 100 million primary school students in China. Therefore, the market space is vast and continually expanding. We therefore believe that there is ample market capacity to establish Naniya World as a popular education website in China, and as a popular Chinese language education website abroad.

WeThe ~~will~~national ~~allocate~~market ~~$10~~overall has great potential,~~000~~ ~~for~~due largely in part to the ~~securing~~ sheer large number of ~~one~~primary ~~property~~school students in China. Wein ~~have~~addition ~~not~~to ~~selected~~the acompetitiveness ~~property~~among atparents ~~this~~wanting ~~time. We~~their ~~intend~~children to ~~secure~~succeed aearly ~~property~~in ~~within~~life ~~the~~in ~~next~~order ~~twelve~~to ~~months,~~advance ~~the~~themselves ~~costs~~to higher levels of ~~which should~~knowledge ~~not~~as ~~exceed~~early ~~$10,000~~as possible. The market of 100 million primary school students within the nation demonstrates how large this market can ultimately become.

~~Exploration~~We ~~expenditures~~will ~~consist of~~begin ~~fees~~our tomarketing becampaign ~~paid~~in ~~for~~the ~~consulting~~Yangtze ~~services~~River ~~connected~~Delta, ~~with~~which ~~exploration,~~includes the ~~cost~~ markets of ~~rock~~Zhejiang ~~sampling~~and ~~(the~~Jiangsu ~~collection~~Provinces, ofas awell ~~series~~as ofthe ~~small~~mega-city ~~chips~~of ~~over~~Shanghai. aThe ~~measured distance,~~initial ~~which~~focus iswill ~~then~~be ~~submitted~~in ~~for~~large aurban ~~chemical~~areas ~~analysis,~~as ~~usually~~opposed to ~~determine the~~lesser-populated ~~metallic~~areas ~~content~~with ~~over~~limited ~~the~~access ~~sampled~~to ~~interval, at pre~~after-~~determined~~school ~~location(s)~~programs ~~on the property),~~ and ~~cost~~high-speed ~~of analyzing these samples~~Internet. Since wethe doproduct ~~not~~of ~~own~~the ancompany ~~interest~~is independent ~~any~~on ~~properties,~~the ~~we have~~Internet ~~not~~and ~~begun~~computer ~~exploration.~~access, ~~Consulting~~this ~~fees~~region ~~will~~of ~~not~~China bemakes ~~paid~~the ~~except~~most onsense anto ~~as needed~~begin ~~basis~~such ~~and~~a ~~should~~marketing ~~not~~campaign. ~~exceed~~In $5this Yangtze region,~~000~~ ~~for~~county-level ~~the~~agencies ~~next~~will 12be ~~months~~set up.

6After local marketing in the Yangtze River Delta is deemed successful and there is enough revenue to sustain the operations of our company, our marketing strategy will expand towards other areas of East China, namely southern China’s Guangdong Province and the Pearl River Delta Region. The potential market in that area is equivalent or even greater than in the Yangtze River Delta area and represents a very large opportunity to take this project national. Ultimately market conditions will dictate how fast our marketing campaign can move. In most of these large urban areas, province-level and city-level agencies will be set up, whereas county-level agencies will not be set up.

WeInitially ~~will~~market allocate a range of money for exploration. That is because we do not know how much will ultimately be needed for exploration. If our initial exploration proves positive results, we will expand the exploration activities to include reverse circulation drilling. This is a less expensive form of drilling that does not allow for the recovery of a tube or core of rock. The material is brought up from depth as a series of small chips of rock that are then bagged and sent in ~~for~~Yangtze ~~analysis.~~River ~~This~~Delta is(End ~~a quicker~~2012) ~~and cheaper method of drilling, but does not necessarily give one as much information about the underlying rocks. If warranted, core drilling would follow this stage.~~

If a. Includes ~~we discover significant quantities of mineralized material~~Shanghai, weZhejiang ~~will begin technical~~ and ~~economic feasibility~~Jiangsu ~~studies~~Provinces ~~to determine if we have reserves. Only if we have reserves will we consider developing the property.~~

Once we have secured a property, and if through early stage exploration we find mineralized material and it is feasible to expand the exploration program, we will attempt to raise additional money through a subsequent private placement, public offering or through loans b. If Focus weon dolarge ~~not~~urban ~~raise~~areas ~~all~~with ofhigh-speed ~~the~~internet ~~money we need, we will have to find alternative sources of funding, like a public offering, a private placement of securities, or loans from our officers or others.~~

~~We have discussed this matter with our officer and director, however, our officer and director is unwilling to make any commitment to loan us any significant amounts of money at this time~~ c. County-level ~~At the~~agencies ~~present time, we have not made any arrangements to raise additional cash. If we need additional cash and can't raise it, we~~ will ~~either~~be ~~have~~established ~~to suspend operations until we do raise the cash, or cease operations entirely.~~

WeExpand ~~will~~toward besouth ~~conducting~~Guangdong ~~research~~Province ~~in the~~(Beginning ~~form~~at ofthe ~~exploration~~End of ~~the~~Q1 ~~property we intend to secure. We are not going to buy or sell any plant or significant equipment during the next twelve months. We will not buy any equipment until we have located a body~~ of ~~minerals~~2013) ~~and we have determined they are economical to extract from the land.~~

~~The~~ a. Pearl ~~breakdown~~River ofDelta ~~estimated~~Region ~~times and~~– ~~dollars~~Shenzhen, ~~was~~Dongguan, ~~made~~Guangzhou, inZhuhai, ~~consultation~~Zhongshan, ~~with~~Huizhou ~~mining engineers in China.~~

~~We do not intend to interest other companies in the property if we find mineralized materials~~ b. Potential Wemarket ~~intend~~is ~~to try~~even togreater ~~develop~~than ~~the~~Yangtze ~~reserves~~Delta ~~ourselves.~~

If weproject ~~are~~is ~~unable~~successful ~~to complete exploration because we do not have enough money~~initially, wecan ~~will~~go ~~cease~~national ~~operations~~(2014 ~~until we~~– ~~raise~~2016) ~~more money. If we cannot or do not raise more money, we will cease operations. If we cease operations, we don't know what we will do and we don't have any plans to do anything else.~~

~~We cannot provide you with~~ a ~~more detailed discussion of how our exploration program will work and what we expect will be our likelihood of success~~. Northeast: ~~That~~Beijing, isTianjin, ~~because we do not own an interest in a property. We may or may not find any mineralized material. We hope we do~~Harbin, ~~but it~~Dalian ~~is impossible to predict the likelihood of such an event.~~

7 b. Central and West: Hubei, Xi’an, Hunan, Sichuan, etc.

WeImage ~~do not have a plan to take our company to revenue generation. That is because we have not located an ore body yet~~ and itBrand isPromotion ~~impossible to project revenue generation from nothing.~~

If a. Zhejiang weChildren’s doChannel ~~not~~Advertising ~~find~~and ~~mineralized material,~~holding welive ~~will~~media ~~allow~~events ~~any option acquired to expire.~~

~~Gold~~ b. Chinese ~~Mining~~Variety inShows ~~China~~– attracting parents and children

Gold mining in China dates back to the Song Dynasty. The Chinese government began reforms in the mid-1990s encouraging small operators to consolidate and allow foreign companies to form joint ventures. The intent was for Chinese companies to learn modern management practices; financial controls; and industrial, environmental and safety standards.6

~~Chinese~~Membership ~~Mining~~Promotion ~~Law~~

~~The~~Large ~~Mineral~~scale ~~Resources~~activity ~~Law~~promotions ofwhere ~~the PRC~~parents isand ~~the~~children ~~principal~~can ~~mining~~participate ~~law of the State. Together with the PRC~~ ~~Constitution, it stipulates that rights to the mineral resources within the~~ ~~territories of China vest in the State.~~
~~Constitution~~We intend to offer memberships and discounts as prizes

~~Under~~Vacation ~~the~~Marketing Chinese Constitution, all mineral resources occurring within China's territorial boundaries belong to the State, and there is a tri-level structure of legislative power whereby the lower level is subject to, and must not contravene, the more upper level. The three levels of legislative power consist of national legislation (the National People's Congress), followed by the state administrative rules and regulations (State administration), and finally, by the local regulations (provincial congresses). Administrative departments functioning directly under the State Council may formulate implementation rules, which will have effect within their respective departments.

~~Laws~~Summer and winter camp education marketing
~~The~~Offer ~~Mineral~~a ~~Resources~~“taste” ~~Law~~ of ~~the PRC,~~what ~~adopted~~website ~~March~~can ~~19,~~offer 1986, amended on August 29, 1996 ("Amendments") and effective as amended as of January 1, 1997 (after passage of the 21st Session of the Standing Committee of the 8th National People's Congress on August 29, 1996), is the principal mining law. The Amendments were adopted to achieve the policy goals set forth above. Same treatment is now to be accorded foreign investment enterprises as to domestic enterprises, regarding exploration rights, mining rights and the transfer of those rights.

~~China~~Word ~~has adopted a licensing-type~~ of ~~system~~Mouth ~~for~~Viral ~~the~~Marketing exploration and exploitation of the mineral resources. Exploration permits (or licenses) are registered and issued to "licensees" in the form of 3-year leases (7 years for oil and gas) from the Central or the Provincial Bureau of Land and Resources. The exploration permit area is described by a "basic block" of 1' of longitude x 1' of latitude (approximately 848 acres); an exploration permit for metallic and non-metallic minerals has a maximum of 40 basic blocks and for coal, has a maximum of 200 basic blocks.

~~When~~Our anobjective ~~economic~~in ~~deposit~~marketing ~~is discovered,~~our ~~the~~Internet ~~licensee~~software ~~may apply for a 2-year renewal or retention of the exploration right (permit) within thirty (30) days prior~~ to ~~expiration of~~ the ~~permit~~ ~~term,~~masses ~~for~~depends ain ~~maximum~~large ~~period~~part ofon ~~four~~its ~~(4)~~sales ~~years~~abilities orin ~~two~~youth ~~extensions,~~activity ~~covering the area of the economic deposit~~centers. ~~Among~~A ~~the~~very ~~obligations~~large ~~under~~number ~~the permit are scheduled minimum exploration expenditures (the portion~~ of ~~which~~primary ~~actual expenditures~~school ~~are~~students ~~greater~~attend ~~than~~after-school ~~the~~instruction ~~year's~~institutions ~~scheduled~~in ~~expenditures~~some ~~is creditable against the next year's scheduled expenditures)~~way, ~~reporting~~whether ~~requirements with~~it ~~the~~be ~~local~~athletic ~~county~~activity ~~and~~related ~~licensing authority and scheduled payments per kilometer for exploration rights (i.e.~~centers, ~~rentals).~~tutoring ~~The permittee~~centers, ~~with~~supplementary ~~approval and~~school ~~compliance with exploration expenditures~~lessons, ~~may~~or ~~transfer~~some ~~its~~other ~~explorations right~~program-specific institution.

8We have devised a plan how to team up with these agencies in order to gain access to their clientele as well as offer them the benefit of using the company’s software in order to enhance their educational programs and bring in more customers. Effectively, the plan offers a win-win situation for our company and our agents and will increase revenue significantly for its partners. Once students begin showing interest in the website itself, it will not take long for parents and after-school instructors to see the results in not only the child’s overall performance, but perhaps more importantly the child’s willingness and desire to continue learning. This is the part that will amaze parent’s the most.

The ~~mining~~training ~~license~~centers ~~holders~~have ofbecome ~~a mining~~quite ~~right~~popular ~~are~~over ~~termed "concessionaires," and their license terms are determined by~~ the ~~magnitude~~last ofdecade adue ~~mining project. If the size of a mining project is large, the maximum term of the mining license is thirty (30) years, and scaled down from there~~ to asseveral ~~low as ten (10) years for one small in size~~reasons. The ~~mining~~ ~~licensee~~primary ~~may~~reason ~~extend~~is the ~~term~~aspirations of aparents ~~mining license with an application thirty (30) days prior~~ to ~~expiration~~have ofchildren ~~the~~succeed ~~term.~~early ~~The~~in ~~"rentals"~~their ~~for~~studies ~~exercise of the mining right are a fee of 1,000 RMB (USD 165) per square kilometer per year. The Ministry of Land and Resources is metals, most non-metallics, rare earths and other minerals as listed~~ in ~~the~~order ~~appendix~~ to ~~the~~get ~~Regulations~~ahead ~~on Registration for Exploration~~ of ~~Mineral~~their ~~Resources,~~class ~~for~~as ~~large~~quickly ~~scale~~as ~~reserves~~possible. ~~The concessionaire, or mining licensee, may transfer with governmental approval all or a portion of its mining right.~~

~~There~~China’s ~~are~~education ~~numerous taxes~~sector, ~~charges and~~beginning ~~fees~~in ~~that~~pre-school ~~apply~~all tothe way until the ~~mineral~~level ~~industries,~~of ~~including~~higher education is extremely competitive among parents. This is mainly due to the ~~value~~fact ~~added~~that ~~tax, resources~~China ~~tax,~~is ~~mineral~~very ~~resources~~overpopulated ~~compensation~~and ~~(royalties),~~just ~~corporate~~“getting ~~income~~by” ~~tax, city~~isn’t ~~construction~~acceptable ~~tax,~~in ~~land~~order ~~use~~to ~~tax,~~sustain ~~business~~one’s ~~tax~~lifestyle and ~~other~~have ~~taxes~~a ~~or assessments~~successful life. AsParents ~~for~~in ~~environmental~~China ~~regulations~~always want their children to be learning and studying, ~~the~~which ~~basic~~leaves ~~laws~~very inlittle ~~China~~to ~~governing environmental~~no ~~protection~~leisure intime for their children. This can be very detrimental to the ~~mineral~~child’s ~~industry~~welfare, ~~sector~~causing ofsome to “burn out” and seek entertainment on the ~~economy~~Internet. ~~are~~Training centers have helped bridge the ~~Environmental~~ ~~Protection~~gap ~~Law~~between education and leisure, but very few have been successful in a child’s eye to being a fun and entertaining place to go. This is where Naniya World comes in, effectively bridging the ~~Mineral~~gap ~~Resources~~completely ~~Law~~between education, entertainment and leisure.

~~Administrative~~Other ~~regulations~~reasons for training centers becoming popular recently include their reliance on government subsidies. Many local and provincial Chinese governments invest heavily in education in schools and in after-school programs. Some training centers receive substantial funding from local governments, some based on performance merit, and some based on relationships they have with officials. These subsidies allow for low-cost tuition for parents, which have proven to be a crucial incentive to send their children to these institutions.

~~The~~These ~~legal~~youth ~~rights~~centers ~~and~~have ~~interests~~also ~~of the~~proven ~~holder~~to ofbe ~~mineral~~reliable ~~titles~~in ~~are~~their ~~under~~training ~~the~~methods. ~~protection of the Chinese Government~~Although, ~~pursuant~~ totraditionally ~~the~~their ~~Rules~~subject ~~for~~materials ~~Implementation~~and methods of ~~the~~teaching ~~Mineral~~lack ~~Resources~~excitement ~~Law~~for of the ~~PRC,~~ ~~promulgated March 20~~children, ~~1994~~they ~~("Mineral~~have ~~Resources~~boosted ~~Rule")~~student scores. AsThese ~~discussed above,~~centers ~~China~~also ~~has~~keep ~~adopted~~children afrom ~~licensing-type~~wasting ~~system~~their ~~for~~time ~~exploration~~after ~~and exploitation~~school ofin ~~its~~less ~~mineral~~productive ~~resources;~~atmospheres. Since the ~~exploration~~subject ~~permittee,~~material oreither ~~holder~~complements ~~of the~~or ~~exploration~~supplements ~~permit~~school ~~has~~study, ~~the~~it ~~following~~is ~~rights:~~easy tofor ~~undertake~~the ~~without interference~~child ~~exploration~~to ~~within~~lose ~~the~~focus ~~area~~and ~~under~~become ~~permit~~distracted ~~during~~with ~~the~~other ~~permit~~things ~~term,~~that ~~to have~~they amay ~~priority~~be tothinking ~~obtain~~of. aWith ~~mining~~the ~~license~~advent ~~upon discovery~~ of athe ~~mineral~~Naniya ~~deposit of~~World ~~commercial value~~website, tochildren ~~construct~~will ~~necessary~~keep ~~exploration~~their ~~facilities~~focus and tomaintain ~~pass through~~their ~~other~~thought ~~exploration~~process ~~areas and adjacent ground~~ to ~~access~~tackle ~~the permitted area, among other rights~~challenges.

While exploration permits are registered and issued to licensees in the form of 3-year term leases, initially, from the Central or Provincial Bureau of Land and Resources, as discussed above, at least one longer term joint venture lease (20 years) has been reported. The obligations of the permittees include the following: to start exploration within the prescribed term, to report to the appropriate exploration management government agency, to conduct its exploration activities in accordance with the permit, to conduct a comprehensive exploration program for all key and associated minerals, to submit mineral exploration reports for review and approval and to comply with other applicable laws and regulations.7

The ~~amended~~relationships ~~law stipulates~~ that an ~~exploration~~our ~~licensee~~company ~~has~~creates awith ~~priority,~~training aninstitutions ~~exclusive~~will ~~right~~be key to ~~obtain~~the development of the ~~"mining right"~~company. ~~within~~Many of the ~~area~~training ~~under~~institutions have large numbers of students. Training centers have to initially get the ~~exploration~~approval ~~right~~of parents in order to actively train their children with the website’s content. Initially, ~~when~~we ~~there~~will choose to partner with large and medium-sized institutions as a foundation to spread the word of the material. Once it has ~~been~~become known that the website is extremely effective in a ~~discovery~~ child’s development, other training centers will naturally want to ~~conduct~~be ~~mining~~a ~~operations~~part of the process, ~~pursuant~~and creating relationships with those centers will be significantly easier and will use fewer resources. Ultimately, the goal of setting up relationships with training centers is to ~~applicable~~franchise ~~regulations~~the (software out to their center. They will become direct franchisees in the respect that they will be completely responsible for ~~example:~~ ~~mining~~the ~~plans~~child’s after-school education, ~~financial~~including ~~and~~developing ~~technical~~their ~~qualifications~~own on-line and ~~environmental impact~~off-line ~~statements)~~supporting roles.

9Competition

~~Once~~We ~~mining~~estimate ~~licenses~~that there are ~~obtained,~~ ~~the~~hundreds ~~rights~~ of ~~the~~companies ~~concessionaires~~operating ~~include~~in ~~the~~China ~~following:~~and toabroad ~~conduct mining~~in ~~operations within~~ the ~~term~~area ~~and~~of ~~mining~~Chinese ~~area~~language ~~prescribed~~online bychildren’s ~~the license~~education, ~~to sell~~entertainment ~~the~~and ~~mineral products by themselves~~gaming. However, ~~except~~owing ~~for~~to ~~those mineral products which~~ the ~~State~~relatively ~~Council~~low ~~had~~barriers ~~prescribed for unified purchase,~~ to ~~construct~~ ~~production~~entry ~~facilities~~in ~~within~~this ~~the mining area~~sector, tothe ~~acquire~~quality ~~land~~of ~~use~~products and ~~other~~ ~~rights.~~services Asoffered ~~well,~~by ~~the~~many ~~concessionaires~~of ~~have~~those ~~obligations~~companies ~~including~~is ~~reporting requirements and submission to inspections~~low. On ~~Additionally,~~ the ~~miner~~other -hand, ~~applicant for~~certain acompanies, ~~mining~~such ~~right~~as ~~(concession)~~Joyful ~~must~~School ~~present~~Net, ~~with~~offer ~~its~~comparatively ~~plan~~well ~~for~~developed ~~development~~ and ~~utilization~~ ofsophisticated ~~the~~content ~~mineral~~and ~~resources~~have ~~under lease,~~ an ~~environmental~~established ~~impact statement~~following.

OnThe ~~February~~Naniya 12World website has numerous advantages over its competitors. The main advantage of the website, ~~1998~~as previously explained, is the ~~State Council~~fact ~~issued~~that ~~three~~it ~~sets~~uses ofmore ~~regulations~~exciting ~~(the~~and ~~three~~fun ~~"items~~ways offor ~~regulations")~~children to ~~implement~~ ~~the~~study. ~~Amendments~~The website takes key points, challenging problems, and questionable points as ~~follows:~~a ~~(1)~~basis ~~the~~to ~~Regulations~~arrange ongames. ~~Registration~~The ~~for Mineral~~site ~~Exploration;~~distinctively ~~(2)~~avoids ~~the~~repetition, ~~Regulations~~as onit ~~Registration~~is ~~for~~known ~~Exploration~~to reduce interest in studying. Other traditional models of ~~Mineral~~ ~~Resources;~~afterschool ~~and~~education ~~(3)~~institutions ~~the~~use ~~Regulations~~synchronized onclassroom ~~Transfer~~practice ofas ~~Exploration~~a ~~Rights~~model ~~and Mining~~to ~~Rights~~arrange games, which child psychologists say will invoke a feeling of repetition amongst children.

~~Local~~We ~~law~~also ~~considerations~~believe that we will have a distinct marketing advantage that with regards to site development. The company will use local training centers in various regions throughout China to carry out promotional events and activities. Sales promotions are targeted towards parents of primary school students rather than the students themselves. This is due to the fact that children in this age group generally do not have any right to make such purchases. After-school training centers are therefore a very effective method to execute promotions, especially when parents are around with their children. Other after-school websites, such as Joyful School Net use schools themselves as a promotion for their site. This is generally ineffective because parents are usually not at the schools. We expect that by 2015, there will be 100 training companies that will be affiliated with the website and will provide promotion.

~~The~~One ~~congress~~other ofadvantage athat ~~province~~we ~~or autonomous~~believe ~~region~~will ~~may~~distinguish ~~adopt~~us ~~local~~from ~~mining~~competitors will ~~regulations.~~be our ~~The~~expert ~~departments~~team ~~under provincial~~of ~~governments,~~child ~~autonomous~~psychologists ~~regions~~ and ~~municipalities~~primary ~~directly~~school ~~under~~educational ~~the Central~~specialists. ~~Government~~The ~~are~~primary ~~responsible~~theory ~~for~~research ~~exploration~~and ~~applications~~support ~~for~~team will ~~mineral resources~~be ~~not~~made ~~reviewed~~up byof ~~the~~educational ~~Ministry~~psychology ofexperts ~~Land~~from ~~and~~the ~~Resources,~~Chinese ~~such~~Academy asof ~~oil shales,~~Science ~~manganese,~~Psychology ~~chromium~~Research Institute, ~~iron~~Beijing orNormal ~~sulphur~~University and ~~those~~Zhejiang ~~whose~~University. ~~reserves~~We ~~are "medium"~~believe inthat ~~scale.~~the ~~Prefecture~~credentials ~~and~~of ~~county~~our ~~level~~experts ~~departments~~will ~~are~~help ~~responsible~~establish a strong following for ~~"small~~ Naniya World among parents, educators, and leading after-~~scale"~~school ~~mineral~~educational ~~resources~~institution in China.

~~Laws~~Intellectual ~~and regulations relating to foreign investment~~Property

~~China~~Our ~~first~~intellectual ~~allowed~~property ~~foreign investment~~is inunder ~~prospecting~~development. We ~~and~~have ~~mining~~not inregistered ~~1993 with prospecting~~ for, ~~and exploitation of,~~ the ~~Tarim~~protection ~~Basin's~~of ~~natural~~any ~~gas~~intellectual ~~reserves~~property inrelated ~~western China. The Ministry approves exploration applications for mineral resources~~ to beour ~~explored by~~business, ~~foreign~~other ~~investment~~than ~~entities.~~a ~~The~~copyright ~~mineral resources available~~ to ~~foreign investments~~the ~~(generally~~contents ~~not~~of asour ~~wholly-owned foreign investments) are divided into three categories~~website: ~~(1)~~www.neologicanimation.com ~~Group A ("encouraged" projects) -- coal~~ and associated minerals mining and separation, iron ore mining and beneficiation, base metal (copper, lead, zinc and aluminum) and nonmetallic minerals; (2) Group B ("restricted" projects) -- coke/coal mining, copper processing, precious metal mining and processing (gold, silver, and platinum group metals), other base metals (tin, tungsten and antimony), rare earth minerals and gemstones; and (3) Group D -- minerals not included in Group A, B or Cwww. ~~A "Group C" project for prohibited minerals includes radioactive minerals, boromagnesites and celestites~~kkl123.com.

~~The~~Research ~~Ministry~~and approves exploration applications for mineral resources to be exploited (mined) by foreign investment. The transfers of foreign investment mining rights, as well as similar (mined) exploration rights, are subject to approval by the Ministry pursuant to any other transfer conditions as discussed above. Development

~~The~~We ~~general~~did ~~procedure~~not ~~for implementing~~incur ~~foreign~~any ~~investment~~research inand ~~exploration~~development ofexpenses ~~Chinese~~during ~~mineral~~our ~~resources~~last ~~(at the~~two ~~Central~~fiscal ~~Government~~years. If ~~level)~~we isare ~~described~~able ~~as a seven step process: Step 1 - inquire with the Ministry about available land areas; Step 2 - reserve the name of the proposed entity; Step 3 - apply~~ to ~~the~~raise ~~Ministry~~sufficient ~~for~~financing, ~~designation~~which ofis ~~an exploration~~uncertain, ~~(or~~we ~~mining)~~anticipate ~~area;~~that ~~Step~~we 4will -spend ~~apply~~$175,000 toon ~~the~~research ~~Ministry of Foreign Trade~~ and ~~Economic~~development ~~Cooperation (or local agency) for authority~~ of ~~the~~our ~~proposed business~~website ~~entity;~~and ~~Step~~various 5applications -associated ~~obtain~~with aour business ~~license;~~during ~~Step 6 - apply to~~ the ~~Ministry~~ ~~for~~next a12 ~~grant of the exploration right (or the mining right); and Step 7 - apply to the Ministry for a land use right~~months. ~~The Ministry of Foreign Trade and Economic Cooperation and the State Environmental Protection Agency issued provisions in 1993 on environmental protection management with regard to foreign investment.~~

108

OfPurchase ~~particular interest for foreign investment, gold and silver (pursuant to an official "Gold Policy") have been subject to regulatory changes~~ of ~~their~~Significant restricted or protected status in the 1990s. Under the Gold Policy, gold had to be sold by the miner exclusively to the Bank of China at the current international market price discounted, initially, at 10% and, subsequently, at 3%. Pursuant to State Council direction, the Bank of China has authority to adjust the purchase price with respect to the gold market prices under certain criteria. The price of gold has been raised to more closely track the international market prices, e.g., the "London Fix." Subject to the same policy are the low grade (less than 0.03 ounces per ton) and refractory-processed (sulphide ore) gold deposits, that have been the sole deposits open to foreign investors; however, such foreign investors may retain their investment if, as development proceeds, they discover a high grade or nonrefractory gold deposit. Equipment

~~Revised~~Outside ~~regulations~~of ~~for~~purchasing ~~the settlement,~~computers ~~selling~~ and ~~payment~~some ofserver ~~foreign~~equipment, ~~exchange~~we ~~came~~do ~~into~~not ~~effect~~intend into ~~1996. The~~purchase ~~foreign~~any ~~exchange~~significant ~~regulations~~equipment ~~apply~~over tothe ~~domestic,~~twelve asmonths ~~well~~ending asApril ~~foreign~~30, ~~investment~~ ~~enterprises~~2013.

~~Chinese~~Compliance ~~General~~with ~~Business~~Government ~~Laws~~Regulation

InWe ~~China, we~~ are ~~required~~subject to ~~register~~ as a ~~private~~number ~~enterprise.~~of Aforeign ~~private~~and ~~enterprise~~PRC islaws ~~one~~and ~~which~~regulations ~~is privately funded,~~ that isaffect ~~not~~companies ~~state~~conducting ~~funded.~~business ~~The~~on ~~registration~~the ~~fee is 0~~internet.1% ofIn ~~our~~addition, ~~capital~~laws ~~or $0.01,~~and ~~however,~~regulations ~~there~~relating isto auser ~~minimum~~privacy, ~~fee~~freedom of 50expression, ~~RMB.~~content, ~~In addition~~advertising, weinformation ~~will~~security ~~pay~~and ~~a business~~intellectual ~~tax~~property ofrights 3%are ofbeing ~~our~~debated ~~net~~and ~~revenues.~~considered ~~Business~~for ~~tax~~adoption ~~rates~~by inmany ~~China~~countries ~~are~~throughout atthe ~~a flat~~world. ~~rate,~~We ~~but~~face ~~vary~~risks ~~based~~from ~~upon~~some of the ~~business.~~proposed ~~While~~legislation wethat ~~pay~~could ~~3%,~~be ~~entertainment companies~~passed ~~pay~~in ~~15%.~~the future.

ItWe isalso ~~very~~face ~~important~~risks due to ~~remember in~~government ~~China~~failure ~~that~~to ~~rules~~preserve the internet’s basic neutrality as to the services and ~~regulations~~sites ~~are~~that ~~conditioned~~users ~~upon~~can ~~satisfaction~~access ofthrough ~~Chinese “social~~their ~~interests.”~~broadband ~~This~~service ~~allows~~providers. ~~for~~Such a ~~subjective~~failure ~~determination~~to byenforce network neutrality could limit the ~~government when~~internet’s ~~issuing~~pace ~~licenses.~~of Ifinnovation weand ~~are~~the ~~unable~~ability of large competitors, small businesses and entrepreneurs to ~~raise~~develop ~~enough~~and ~~money~~deliver new products, wefeatures ~~will~~and ~~not~~services, ~~seek the~~which ~~license.~~could harm our business.

~~The~~We ~~majority~~are ofalso ~~our~~subject ~~revenues~~to ~~will be~~PRC ~~settled in RMB~~ and, ~~any~~foreign ~~future~~laws ~~restrictions~~regarding onprivacy ~~currency~~and ~~exchanges~~protection may limit our ability to use revenue generated in RMB to fund any future business activities outside China or to make dividend or other payments in U.S. dollars. Although the Chinese government introduced regulations in 1996 to allow greater convertibility of ~~the~~user RMB for current account transactions, significant restrictions still remain, including primarily the restriction that foreign-invested enterprises may only buy, sell or remit foreign currencies after providing valid commercial documents, at those banks in China authorized to conduct foreign exchange businessdata. InWe ~~addition,~~intend ~~conversion of RMB for capital account items, including direct investment and loans, is subject~~ to ~~governmental approval~~post inon ~~China,~~our ~~and~~web ~~companies~~site ~~are~~our ~~required~~privacy topolicies ~~open~~ and ~~maintain~~practices ~~separate foreign~~concerning ~~exchange accounts for capital account items. We cannot be certain that~~ the ~~Chinese~~use ~~regulatory~~and ~~authorities~~disclosure ~~will not impose more stringent restrictions on the convertibility~~ of ~~the~~user ~~RMB~~data.

~~The~~Environmental Chinese legal system is a civil law system based on written statutes. Unlike common law systems, it is a system in which precedents set in earlier legal cases are not generally used. The Chinese laws, regulations and legal requirements are relatively recent and are evolving rapidly, and their interpretation and enforcement involve uncertainties Because of the legal uncertainties and because the majority of our assets may be located in the People’s Republic of China (the “PRC”), it may be extremely difficult to access those assets to satisfy an award entered against us in United States court. Moreover, PRC does not have treaties with the United States providing for the reciprocal recognition and enforcement of judgments of courts. Further, in considering whether to enforce a foreign judgment in China, the court considers whether the judgment violates basic principles of the law of the PRC; its social interests; and ascertains that foreign judgment has validity. If the court is not satisfied with the foregoing, the matter is referred back to the jurisdiction that rendered the judgment. The cost and likelihood of successfully enforcing a U.S. judgment in China is, in our opinion, remote at best. Compliance

11We are not aware of any material violations of environmental permits, licenses or approvals that have been issued with respect to our operations. We expect to comply with all applicable laws, rules and regulations relating to our business, and at this time, we do not anticipate incurring any material capital expenditures to comply with any environmental regulations or other requirements.

~~Employees~~While our intended projects and ~~Employment~~business ~~Agreements~~activities do not currently violate any laws, any regulatory changes that impose additional restrictions or requirements on us or on our potential customers could adversely affect us by increasing our operating costs or decreasing demand for our products or services, which could have a material adverse effect on our results of operations.

At present, we have no full-time employees. Our officers and directors are part-time employees and each will devote about 10 hours or 25% of their time per week to our operation. Our officers and directors do not have employment agreements with us. We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, we may adopt plans in the future. There are presently no personal benefits available to our officers and directors. Our officers and directors will handle our administrative duties. As of April 30, 2011, we have not looked for or talked to any geologists or engineers who will perform work for us in the future.Subsidiaries

~~ITEM~~We 1Ahave a wholly-owned subsidiary, Full East International Limited., ~~RISK~~a ~~FACTORS~~British Virgin Islands company and Full East's wholly owned subsidiary, Hangzhou Naniya Technology Co. Ltd., a People's Republic of China company and Hangzhou Xuerun Education & Technology Ltd. a People's Republic of China company of which Full East holds a controlling contractual interest.

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

~~ITEM~~We 1Bare a development stage company and currently have no full time employees. Each ~~UNRESOLVED~~of ~~STAFF~~our ~~COMMENTS~~officers and directors provides their services on a consulting basis. We have not entered into any formal agreements with our officers and directors regarding the terms of their service to our company.

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

~~ITEM~~Our 2intellectual property is under development. We ~~PROPERTIES~~have not registered for the protection of any intellectual property related to our business, other than a copyright to the contents of our website: www.neologicanimation.com

Our office space is currently provided to us by a former president of our company. The rent is donated and is recognized at $3,000 per year. Our office is located at #41 Huancheng Road, Xinjian Township, Jinyun County, Zhejiang, P.R. China. Our telephone number is 011 86 578 388 1262.9

~~ITEM~~REPORTS 3.TO ~~LEGAL~~SECURITY ~~PROCEEDINGS~~HOLDERS

We are ~~not~~required ~~presently~~to afile ~~party~~annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission and our filings are available to the public over the internet at the Securities and Exchange Commission’s website at http://www.sec.gov. The public may read and copy any ~~litigation~~ materials filed by us with the Securities and Exchange Commission at the Securities and Exchange Commission’s Public Reference Room at 100 F Street N.E. Washington D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the Securities and Exchange Commission at 1-800-732-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, at http://www.sec.gov.

ITEMItem 41A. REMOVEDRisk AND RESERVEDFactors

~~PART~~RISKS IIRELATED TO OUR BUSINESS

~~ITEM~~Our 5auditors have issued a going concern opinion. ~~MARKET~~There ~~FOR~~is ~~COMMON~~substantial ~~STOCK~~uncertainty ~~AND~~we ~~RELATED~~will ~~STOCKHOLDER~~continue ~~MATTERS~~operations in which case you could lose your investment.

~~Our~~There ~~Common~~is ~~stock~~substantial isdoubt ~~quoted~~that onwe ~~the~~can ~~OTC~~continue ~~Bulletin~~as ~~Board~~an ~~under~~ongoing business for the ~~Symbol~~ ~~"CFEC".~~next We12 ~~originally~~months. ~~received~~The ~~approval~~financial onstatements ~~March~~do ~~13,~~not ~~2007~~include ~~for~~any ~~trading under~~adjustments ~~the~~that ~~symbol~~might ~~“HENX”.~~result Onfrom ~~December~~the ~~28,~~uncertainty ~~2010,~~about our ~~symbol~~ability ~~was~~to ~~changed~~continue toin ~~our~~business. ~~current~~As ~~symbol~~such ~~“CFEC”~~we ~~in connection~~may ~~with~~have ~~our~~to ~~merger~~cease operations and ~~change~~you ofcould ~~name~~lose your investment.

12Our ability to achieve and maintain profitability and positive cash flow is dependent upon:

~~The~~our ~~following~~ability ~~table~~to ~~reflects~~complete the ~~high~~research and ~~low~~development ~~bid~~of ~~information for~~ our ~~common~~planned ~~stock~~products ~~obtained from Stockwatch~~ and ~~reflects~~services; ~~inter-dealer prices,~~ ~~without retail mark-up, markdown or commission, and may not necessarily~~ ~~represent actual transactions.~~
~~The~~our ~~high~~ability ~~and~~to ~~low~~attract ~~bid~~customers ~~prices~~to of our ~~common~~products ~~stock~~and ~~for~~services; ~~the periods~~ ~~indicated below are as follows:~~

OTC Bulletin Board
Quarter Ended(1)	High	Low
January 31, 2011	$1.165	$1.00

our ability to develop and continually update our website and content;
~~(1)~~our ~~The~~ability ~~first~~to ~~trade~~procure inand ~~our~~maintain ~~common~~on ~~stock~~commercially ~~occurred~~reasonable onterms ~~January~~relationships 7,with ~~2011.~~third parties to integrate and maintain our payment process and service mediums;
Atour ~~July~~ability ~~29,~~to ~~2011,~~identify ~~there~~and ~~were~~pursue ~~56 shareholders~~mediums ofthrough ~~record.~~which we will be able to market our services;
~~Dividend~~our ~~Policy~~ability to generate revenues through our customers; and
~~We have not paid any cash dividends on~~ our ~~common~~ability ~~stock and have no present intention of paying any dividends on the shares of our common stock. Our current policy is~~ to ~~retain~~manage ~~earnings,~~growth ~~if any, for use in our operations and in the development of our business. Our future dividend policy will be determined from time to time~~ by ~~our~~managing ~~board~~administrative ~~of directors~~overhead.

~~Recent~~Based ~~Sales~~upon ofcurrent ~~Unregistered~~plans, ~~Securities;~~we ~~Use~~expect ofto ~~Proceeds from~~incur ~~Registered~~operating ~~Securities~~losses in future periods because we will be incurring expenses and not generating significant revenues. We cannot guarantee that we will be successful in generating significant revenues in the future. Failure to generate revenues which are greater than our expenses will cause you to lose your investment.

Other than as disclosed herein, we did not sell any equity securities which were not registered under the Securities Act during the year ended April 30, 2011 that were not otherwise disclosed on our quarterly reports on Form 10~~-Q or our current reports on Form 8-K filed during the year ended April 30, 2011.~~

~~Equity~~If ~~Compensation~~we ~~Plan~~cannot ~~Information~~prevent other companies from infringing on our technologies or trademark, we may not achieve profitability and you may lose your investment.

WeOur ~~currently~~success is heavily dependent upon market awareness and exposure. To protect our proprietary software and content, we rely principally upon copyright and trade secret protection. To protect our trademark, we intend to rely on trademark registration in China and in any other jurisdiction in which we offer our products and services. All proprietary information that can be copyrighted is marked as such. There can be no assurance that the steps taken by us in this regard will be adequate to prevent misappropriation or independent third-party development of our technology. Further, the laws of China, where we anticipate licensing our technologies and products, do not ~~have~~protect ~~any~~software ~~equity~~and ~~compensation~~intellectual ~~plans~~property rights to the same extent as the laws of the United States. Although we intend to include in our website mechanisms to prevent or inhibit unauthorized copying and use, these mechanisms may curb, but will not safeguard against copying or unauthorized use. If unauthorized copying or misuse of our products were to occur, our business and results of operations could be materially adversely affected.

~~Convertible~~While ~~Securities~~the disclosure and use of our proprietary software and content are generally controlled under agreements with the parties involved, there can be no assurance that all confidentiality agreements will be honored, that others will not independently develop similar or superior technology, that disputes will not arise concerning the ownership of intellectual property, or that dissemination of our proprietary software, content, or related know-how and trade secrets will not occur. Further, if an infringement claim is brought against us, litigation would be costly and time consuming, but may be necessary to protect our proprietary rights and to defend ourselves. We could incur substantial costs and diversion of management resources in the defense of any claims relating to the proprietary rights of others or in asserting claims against others. If we cannot prevent other companies from infringing on our software and content, we may not achieve profitability and you may lose your investment.

WeIf dowe are subject to intellectual property rights claims which may be costly to defend, could require the payment of damages and could limit our ability to use certain technologies in the future we may not ~~have~~generate ~~any~~sufficient ~~outstanding~~revenues ~~convertible~~or ~~securities.~~achieve profitability.

~~Purchase~~Companies in the Internet, technology and media industries own large numbers of ~~Equity~~patents, ~~Securities~~copyrights, bytrademarks and trade secrets and frequently enter into litigation based on allegations of infringement or other violations of intellectual property rights. We may be subject to intellectual property rights claims in the ~~Issuer~~future and ~~Affiliated Purchasers~~our software or content may not be able to withstand any third-party claims or rights against their use. Any intellectual property claims, with or without merit, could be time consuming, expensive to litigate or settle and could divert management resources and attention. An adverse determination also could prevent us from offering our products and services to others and may require that we procure substitute products or services for these members.

With respect to any intellectual property rights claim, we may have to pay damages or stop using software or content found to be in violation of a third party’s rights. We ~~did~~may have to seek a license for the intellectual property, which may not ~~purchase~~be ~~any~~available ofon reasonable terms and may significantly increase our ~~shares~~operating ofexpenses. ~~common~~The ~~stock~~intellectual property also may not be available for license to us at all. As a result, we may also be required to develop alternative non-infringing software or ~~other securities~~content, ~~during~~which could require significant effort and expense. If we cannot license or develop alternative intellectual property for the infringing aspects of our ~~fourth~~business, ~~quarter~~we may be forced to limit our product and service offerings and may be unable to compete effectively. Any of these results could harm our ~~fiscal~~brand ~~year~~and ~~ended~~prevent ~~April~~us ~~30, 2011~~from generating sufficient revenue or achieving profitability.

~~ITEM~~Changing 6consumer preferences will require periodic product introduction. If ~~SELECTED~~we ~~FINANCIAL~~are ~~DATA~~unable to continually meet consumer preferences we may not generate significant revenues.

WeAs a result of changing consumer preferences, many websites and website-based products and services are successfully marketed for a ~~smaller~~limited ~~reporting company~~period asof ~~defined~~time. byEven ~~Rule~~if ~~12b-2~~our products and services become popular, there can be no assurance that any of ~~the~~our ~~Exchange~~education ~~Act~~or gaming products will continue to be popular for a period of time. Our success will be dependent upon our ability to develop new and ~~are~~improved services. ~~not~~Our ~~required~~failure to ~~provide~~ ~~the~~introduce ~~information~~new ~~under~~features ~~this~~and ~~item~~content to achieve and sustain market acceptance could result in us being unable to continually meet consumer preferences and generating significant revenues.

1311

~~ITEM~~If 7.we ~~MANAGEMENT’S~~do ~~DISCUSSION~~not ~~AND~~attract ~~ANALYSIS~~customers OFto ~~FINANCIAL~~our ~~CONDITION~~website ~~AND~~or ~~RESULTS~~interactive OFservices ~~OPERATIONS~~on cost-effective terms, we will not make a profit, which ultimately will result in a cessation of operations.

~~This~~Our ~~section~~success ofdepends ~~the~~on ~~report includes~~our aability ~~number~~to ofattract ~~forward~~customers to our website and web-~~looking~~based ~~statements~~products ~~that~~and ~~reflect~~services on cost-effective terms. Our strategy to attract customers to our ~~current~~website, ~~views with~~which ~~respect~~has not been formalized or implemented, includes direct marketing to ~~future~~administrators ~~events~~of public and ~~financial~~private ~~performance.~~education ~~Forward-looking statements~~and ~~are~~childcare ~~often~~institutions ~~identified~~and byservices ~~words~~providers, ~~like:~~television ~~believe~~marketing, ~~expect~~infomercials, ~~estimate~~viral marketing, ~~anticipate,~~ ~~intend~~the practice of generating "buzz" among Internet users in our products through the developing and maintaining weblogs or "blogs", ~~project~~online journals that are updated frequently and ~~similar~~available ~~expressions~~to the public, orpostings ~~words~~on ~~which~~online social networking communities, byand ~~their nature~~amateur websites, ~~refer~~and other methods of getting Internet users to ~~future~~refer ~~events.~~others ~~You~~to ~~should~~our ~~not~~website ~~place~~and ~~undue~~web-based ~~certainty~~products onand ~~these forward~~services by e-~~looking~~mail ~~statements~~or word of mouth; search engine optimization, ~~which~~marketing ~~apply~~our ~~only~~website asvia search engines by purchasing sponsored placement in search results; and entering into affiliate marketing relationships with website providers to increase our access to Internet consumers. We expect to rely on word of mouth marketing as the ~~date~~primary source of ~~this~~traffic ~~report~~to our website, with search engine optimization and affiliate marketing as secondary sources. ~~These~~ ~~forward-looking~~Our ~~statements~~marketing ~~are~~strategy ~~subject~~may not be enough to ~~certain~~attract ~~risks~~sufficient ~~and~~traffic ~~uncertainties that~~to ~~could~~our ~~cause~~website ~~actual~~or ~~results~~telephone services. We do not currently employ any personnel specifically assigned to ~~differ~~the ~~materially~~marketing ~~from~~of ~~historical~~our ~~results~~products or ~~our~~ ~~predictions~~services. If we do not attract customers to our website or web-based products or services on cost-effective terms, we will not make a profit, which ultimately will result in a cessation of operations.

~~Plan~~We ofrely ~~Operation~~on highly skilled personnel and, if we are unable to retain or motivate key personnel or hire qualified personnel, we may not be able to grow effectively, generate sufficient revenues and achieve profitability.

WeOur ~~are~~performance aand ~~start-up, exploration-stage~~future ~~mining~~success ~~corporation~~depends on the talents and ~~have~~efforts ~~not~~of ~~yet~~highly ~~generated~~skilled orindividuals ~~realized~~who ~~any revenues~~will ~~from~~be designing, producing, and marketing our ~~business~~products ~~operations~~and services to our customers. We ~~raised~~will ~~$100,900~~need ~~from~~to ~~our~~continue ~~public offering~~to ~~and~~identify, ~~issued~~hire, 9develop,~~080,100~~ ~~common~~motivate ~~shares~~and atretain ~~$0.01~~highly ~~per~~skilled ~~share~~personnel onfor ~~November~~all ~~16, 2006~~areas of our organization. WeOur ~~believe~~continued ~~that~~ability ~~further~~to ~~financing~~compete ~~(either~~effectively ~~debt~~depends oron ~~equity~~our ~~financing)~~ability ~~is required~~to ~~for~~attract usnew psychics and to ~~acquire~~retain ~~mineral~~and ~~properties~~motivate our existing consultants.

WeAs ~~intend~~competition toin ~~acquire~~our ~~mineral properties;~~industry ~~however~~intensifies, noit ~~acquisition~~may ~~has~~be ~~been~~more ~~materialized~~difficult asfor ofus ~~this~~to ~~report~~hire, motivate and retain highly skilled personnel. ~~We are~~If we do not ~~going~~succeed toin ~~buy~~attracting oradditional ~~sell~~highly ~~any~~skilled ~~plant~~personnel or ~~significant~~retaining ~~equipment~~or ~~during~~motivating ~~the~~our ~~next twelve~~existing ~~months.~~personnel, we may be unable to grow effectively generate sufficient revenues and achieve profitability.

Our ~~exploration~~business ~~target is to find properties containing gold. Our success~~ depends ~~upon~~substantially ~~finding~~on ~~mineralized material~~the ~~from~~continuing ~~such~~efforts ~~acquired~~of ~~properties.~~our ~~This~~executive ~~includes~~officers, aand ~~determination by~~ our ~~consultant~~ ifbusiness ~~the~~may ~~property~~be ~~contains~~severely ~~reserves.~~disrupted ~~Although~~if we ~~successfully~~lose ~~raised capital~~their ~~in 2006, we must find and acquire mineral properties for further exploration~~services.

We ~~currently~~believe dothat ~~not~~our ~~own~~success oris ~~have~~largely ~~a right~~dependent toup ~~explore~~on ~~any~~the ~~property.~~continued Weservice ~~have~~of ~~not~~the ~~identified~~member ~~any~~of ~~properties~~our ~~for exploration.~~management ~~Our~~team, ~~plan~~who isare critical to ~~acquire~~establishing anour ~~option~~corporate onstrategies aand ~~property~~focus, and ~~prospect~~ensuring ~~for gold~~our incontinued ~~China~~growth. Our ~~target~~continued issuccess ~~mineralized~~will ~~material.~~depend ~~Our~~on ~~success~~our ~~depends~~ability ~~upon finding~~to ~~mineralized~~attract ~~material.~~and ~~Mineralized~~retain ~~material is~~ a ~~mineralized~~qualified ~~body~~and ~~which has~~competent ~~been~~management ~~delineated~~team byin ~~appropriate~~order ~~spaced~~to ~~drilling~~manage orour ~~underground~~existing ~~sampling~~operations to and support ~~sufficient~~our ~~tonnage~~expansions ~~and~~plans. ~~average~~Although ~~grade~~this possibility is low, if any of ~~metals~~our executive officers are unable or unwilling to ~~justify~~continue ~~removal.~~in Iftheir present positions, we do may not ~~find~~be ~~mineralized~~able ~~material~~to orreplace wethem ~~cannot~~readily, ~~remove~~if ~~mineralized~~at ~~material~~all. Therefore, ~~either~~ ~~because~~our webusiness domay ~~not~~be ~~have~~severely ~~the~~disrupted, ~~money~~and we may incur additional expenses to dorecruit itand orretain ~~because~~new itofficers. In isaddition, ~~not economically~~if ~~feasible~~any toof doour itexecutives joins a competitor or forms a competing company, we ~~will~~may ~~cease~~lose ~~operations.~~some of our customers

In addition, we do not have enough money to complete the exploration of any property. We will try to raise additional funds from a public offering, a private placement or loans. At the present time, we have not made any plans to raise additional money and there is no assurance that we would be able to raise additional money in the future. If we need additional money and cannot raise it, we will have to suspend or cease operations. 12

~~After~~Our webusiness ~~acquire~~depends apartially ~~property,~~on ~~we must~~the ~~conduct~~development ~~exploration~~and tomaintenance ~~determine what amount~~ of ~~minerals,~~the ifInternet ~~any,~~infrastructure. ~~exist~~Outages ~~on the properties~~ and ifdelays ~~any~~could ~~minerals~~reduce ~~which~~the ~~are~~level ~~found~~of ~~can~~Internet beusage ~~economically~~generally ~~extracted and~~as ~~profitably~~well ~~processed.~~as ~~There~~the islevel noof ~~assurance~~usage ~~that~~of weour ~~will~~services ~~ever~~and ~~acquire~~reduce ~~an option~~our ~~on a property~~revenues.

WeThe ~~intend~~success toof ~~seek~~our ~~out~~services ~~raw undeveloped~~will ~~property~~depend bypartially ~~retaining~~on the ~~services~~development ofand amaintenance ~~professional~~of ~~mining geologist~~the toInternet ~~be selected~~infrastructure. AsThis includes maintenance of a reliable network backbone with the ~~date~~necessary speed, data capacity, and security, as well as timely development of ~~this~~complementary ~~report~~products, wefor ~~have~~providing ~~not~~reliable ~~selected~~Internet ~~a geologist~~access and services. ~~Our~~The ~~properties~~Internet ~~will~~has experienced, and is likely to continue to experience, significant growth in ~~all~~the ~~likelihood~~numbers of users and amount of traffic. The Internet infrastructure may be ~~undeveloped~~unable ~~raw~~to ~~land~~support such demands. ~~That is~~In ~~because~~addition, ~~raw~~increasing ~~undeveloped~~numbers ~~land~~of isusers, ~~much~~increasing ~~cheaper~~bandwidth ~~than~~requirements, toor ~~purchase~~problems ancaused ~~existing~~by ~~developed~~“viruses,” ~~property~~“worms,” and similar programs may harm the performance of the Internet. ~~A developed~~The ~~property~~backbone iscomputers ~~one~~of ~~with~~the Internet have been the targets of such programs. The Internet has experienced a ~~defined~~variety ~~ore~~of ~~body~~outages and other delays as a result of damage to portions of its infrastructure, and it could face outages and delays in the future. These outages and delays could reduce the level of Internet usage generally as well as the level of usage of our services and reduce our revenues.

14Interruption or failure of our information technology and communications systems could impair our ability to effectively provide our products and services, which could damage our reputation and harm our operating results.

~~Thereafter~~Our ability to provide our products and services depends on the continuing operation of our planned information technology and communications systems. Any damage to or failure of our systems could interrupt our service. Service interruptions could reduce our revenues and profits, ~~exploration~~and damage our brand if our system is perceived to be unreliable. Our systems are vulnerable to damage or interruption as a result of terrorist attacks, war, earthquakes, floods, fires, power loss, telecommunications failures, computer viruses, interruptions in access to our website through the use of “denial of service” or similar attacks, hacking or other attempts to harm our systems, and similar events. Our servers, which we anticipate will be ~~initiated~~ hosted at third-party internet data centers, will also be vulnerable to break-ins, sabotage and vandalism, and disaster recovery planning may not account for all possible scenarios. The occurrence of a natural disaster or a closure of an internet data center by a third-party provider without adequate notice could result in lengthy service interruptions. Interruption or failure of our information technology and communications systems could impair our ability to effectively provide our products and services, which could damage our reputation and harm our operating results.

WeIf doour ~~not~~software ~~know~~contains ifundetected errors, we ~~will~~could ~~find mineralized~~lose ~~material~~the confidence of users, resulting in loss of customers and a reduction of revenue.

Our ~~exploration~~online ~~program~~systems, ~~is designed~~including toour ~~economically~~website ~~explore~~and ~~any~~other ~~property~~software weapplications ~~may~~and ~~obtain~~products, could contain undetected errors or “bugs” that could adversely affect their performance. ~~Again,~~We atwill ~~the present~~be ~~time~~required weto doregularly ~~not~~update ~~own~~and ~~any~~enhance ~~interest~~our website and our other online systems and introduce new versions of our software products and applications. The occurrence of errors in any ~~properties~~of these may cause us to lose market share, damage our reputation and brand name, and reduce our revenues.

~~We do not claim to have any minerals or reserves whatsoever.~~ 13

Our plan of operation, time frames involved and costs are as follows:
Item or Activity		Cost
Property Acquisition	$	10,000
Consulting Service	$	5,000
Surface Sampling & Geochemical Analysis	$	15,000
Mobilization/Demobilization Contractor	$	12,000
Dozer, Grader, Backhoe, ATV	$	12,000
Reclamation/Bond	$	3,000
Field Supplies	$	300
Travel Expenses	$	3,000

If the security measures that we use to protect their personal information, such as credit card numbers, are ineffective, our customers may lose their confidence in our website and stop visiting them. This may result in a reduction in revenues and increase our operating expenses, which would prevent us from achieving profitability.

Any breach in our website security could expose us to a risk of loss or litigation and possible liability. We anticipate that we will ~~allocate~~rely ~~$10~~on encryption and authentication technology licensed from third parties to provide secure transmission of confidential information. As a result of advances in computer capabilities,~~000~~ new discoveries ~~for~~in the ~~securing~~ field of cryptography ~~one~~or ~~property~~other developments, a compromise or breach of our security precautions may occur. A compromise in ~~China~~our proposed security could severely harm our business. WeA ~~have~~party ~~not~~who ~~selected~~is aable ~~property~~to atcircumvent ~~this~~our ~~time~~proposed security measures could misappropriate proprietary information, including customer credit card information, or cause interruptions in the operation of our website. We ~~intend~~may be required to ~~secure~~spend asignificant ~~property~~funds ~~within~~and ~~the~~other ~~next~~resources ~~twelve~~to ~~months,~~protect against the ~~costs~~threat of ~~which should~~security breaches or to alleviate problems caused by these breaches. However, protection may not ~~exceed~~be ~~$10~~available at a reasonable price,~~000~~ or at all. Concerns regarding the security of e-commerce and the privacy of users may also inhibit the growth of the Internet as a means of conducting commercial transactions. This may result in a reduction in revenues and increase our operating expenses, which would prevent us from achieving profitability.

~~Exploration~~We ~~expenditures~~will ~~consist of~~rely ~~fees~~mainly toon bethird ~~paid~~party ~~for~~service ~~consulting~~providers ~~services~~and ~~connected~~other ~~with~~payment ~~exploration,~~processing ~~the~~companies ~~cost of~~to ~~rock~~collect ~~sampling~~our ~~(the~~revenue. If ~~collection~~we ofare aunable ~~series of small chips over a measured distance, which is then submitted for a chemical analysis, usually~~ to ~~determine the~~collect ~~metallic~~revenue ~~content~~generated ~~over~~by ~~the~~our ~~sampled~~customers ~~interval,~~from ~~at pre-determined location(s) on the property), and cost of analyzing~~ these ~~samples.~~processing ~~Since we do not own an interest in any properties~~companies, we ~~have~~may not ~~begun exploration. Consulting fees will not~~ be ~~paid~~able ~~except~~to onrealize anany asrevenues ~~needed basis~~ and ~~should~~our ~~not~~business ~~exceed~~may ~~$5,000~~fail.~~00 for the next 12 months.~~

WeThe ~~will~~majority ~~allocate~~of aour ~~range~~revenues ofwill ~~money for~~be ~~exploration.~~generated ~~That~~by iscustomers ~~because~~who wewill dosubmit ~~not~~their ~~know~~payment ~~how~~to ~~much~~third ~~will~~party ~~ultimately~~service ~~be needed~~providers ~~for~~such ~~exploration.~~as Iftelephone ~~our~~companies, ~~initial~~or ~~exploration~~payment ~~proves~~processing ~~positive results~~company, ~~we will~~such ~~expand~~as ~~the~~those ~~exploration~~which ~~activities~~process toonline ~~include~~credit ~~reverse~~card ~~circulation drilling~~payments. ~~This~~ There is a ~~less~~potential ~~expensive~~risk ~~form~~that ofthese ~~drilling~~third ~~that~~party ~~does~~service ~~not~~providers ~~allow~~and ~~for~~payment ~~the~~processing ~~recovery of~~companies amay ~~tube~~not orrelease ~~core~~our portion of ~~rock.~~the ~~The~~payments ~~material~~made isby ~~brought~~our upcustomers ~~from~~in ~~depth as~~ a ~~series~~timely ~~of small~~manner ~~chips~~or ofat ~~rock~~all. If ~~that~~we are ~~then~~not ~~bagged~~able ~~and~~to ~~sent~~repatriate infunds ~~for~~paid ~~analysis.~~by ~~This~~our iscustomers ~~a quicker~~to ~~and~~third ~~cheaper~~party ~~method~~service ofproviders ~~drilling,~~or ~~but~~payment ~~does~~processing ~~not~~companies, ~~necessarily~~we ~~give~~will ~~one~~not ~~as much~~be ~~information~~able ~~about~~to ~~the~~achieve ~~underlying~~profitability ~~rocks.~~and Ifour ~~warranted,~~business ~~core~~may ~~drilling would follow this stage~~fail.

IfRISKS weRELATED ~~discover~~TO ~~significant quantities~~OWNERSHIP ofOF ~~mineralized~~OUR ~~material, we will begin technical and economic feasibility studies to determine if we have reserves. Only if we have reserves will we consider developing the property.~~ SECURITIES

15Our stock price may be volatile, which may result in losses to our shareholders.

~~Once~~The westock markets have ~~secured~~experienced asignificant ~~property~~price and trading volume fluctuations, and ifthe ~~through~~market ~~early~~prices ~~stage~~of ~~exploration~~companies welisted ~~find~~on ~~mineralized~~the ~~material~~Over-the-counter ~~and~~Bulletin itBoard ~~is feasible~~quotation tosystem ~~expand~~in ~~the~~which ~~exploration~~shares ~~program,~~of weour ~~will~~common ~~attempt~~stock toare ~~raise~~listed, ~~additional money~~have ~~through~~been avolatile ~~subsequent~~in ~~private~~the ~~placement,~~past ~~public~~and ~~offering~~have ~~or through~~experienced ~~loans.~~sharp Ifshare weprice doand ~~not~~trading ~~raise~~volume ~~all~~changes. ofThe ~~the~~trading ~~money~~price weof ~~need,~~our wecommon ~~will~~stock ~~have~~is likely to ~~find alternative~~be ~~sources~~volatile ofand ~~funding,~~could ~~like~~fluctuate awidely ~~public~~in ~~offering~~response to many factors, aincluding ~~private~~the ~~placement~~following, some of ~~securities,~~ orwhich ~~loans~~are ~~from~~beyond our ~~officers or others.~~control:

We· variations ~~have~~in ~~discussed this matter with~~ our ~~officer~~operating and director, however, our officer and director is unwilling to make any commitment to loan us any significant amounts of money at this time. At the present time, we have not made any arrangements to raise additional cash. If we need additional cash and can't raise it we will either have to suspend operations until we do raise the cash, or cease operations entirely. results;

We· changes ~~will be conducting research~~ in ~~the~~ ~~form~~expectations of ~~exploration~~our offuture ~~the~~financial ~~property~~performance, weincluding ~~intend~~financial toestimates ~~secure.~~by ~~Our~~securities ~~exploration program~~analysts is explained in as much detail as possible in the business section of this annual report. We are not going to buy or sell any plant or significant equipment during the next twelve months. We will not buy any equipment until we have located a body of minerals and ~~we have determined they are economical to extract from the land.~~investors;

~~The~~· changes ~~breakdown~~in ofoperating ~~estimated times~~ and ~~dollars~~stock ~~was~~price ~~made~~performance inof ~~consultation~~other ~~with~~companies ~~mining engineers~~ in ~~China.~~our industry;

We· additions door ~~not~~departures ~~intend~~of tokey ~~interest other~~personnel; ~~companies in the property if we find mineralized materials. We intend to try to develop the reserves ourselves.~~and

If· future wesales ~~are~~of ~~unable~~our tocommon ~~complete exploration because we do not have enough money, we will cease operations until we raise more money~~stock. ~~If we cannot or do not raise more money, we will cease operations. If we cease operations, we don't know what we will do and we don't have any plans to do anything else.~~

WeDomestic ~~cannot~~and ~~provide~~international ~~you~~stock ~~with~~markets aoften ~~more detailed~~experience ~~discussion~~significant ofprice ~~how our exploration program will work~~ and ~~what~~volume ~~we expect will be our likelihood of success~~fluctuations. ~~That~~These isfluctuations, ~~because~~as wewell doas ~~not~~general ~~own~~economic anand ~~interest~~political ~~in a~~conditions ~~property.~~unrelated Weto ~~may~~our orperformance, may ~~not~~adversely ~~find~~affect ~~any mineralized material. We hope we do, but it is impossible to predict~~ the ~~likelihood~~price of ~~such~~our ancommon ~~event~~stock.

~~We do not have a plan to take our company to revenue generation. That is because we have not located an ore body yet and it is impossible to project revenue generation from nothing.~~14

IfOur wecommon doshares ~~not~~may ~~find~~become ~~mineralized material,~~thinly wetraded ~~will~~and ~~allow~~you ~~any~~may ~~option~~be unable to ~~expire~~sell at or near ask prices, or at all.

~~Limited~~We ~~Operating~~cannot ~~History~~predict the extent to which an active public market for trading our common stock will be sustained. Although our common share’s trading volume increase significantly recently, it has historically been sporadically or “thinly-traded,” meaning that the number of persons interested in purchasing our common shares at or near bid prices at certain given time may be relatively small or non-existent.

~~There~~This situation is ~~limited~~attributable ~~historical financial~~to ~~information~~a ~~about~~number usof ~~upon~~factors, including the fact that we are a small company which is relatively unknown to ~~base~~stock ananalysts, ~~evaluation~~stock ofbrokers, ~~our performance.~~institutional Weinvestors ~~are~~and anothers ~~exploration-stage~~in ~~corporation~~the ~~and~~investment ~~have~~community ~~not~~who ~~generated~~generate ~~any revenues~~or ~~from~~influence ~~operations~~sales volume. Even Weif ~~cannot~~we ~~guarantee~~came weto ~~will~~the beattention ~~successful~~of insuch ~~our business~~persons, ~~operations.~~those ~~Our~~persons ~~business~~tend isto ~~subject~~be risk-averse and may be reluctant to ~~risks~~follow, ~~inherent~~purchase, inor recommend the ~~establishment~~ purchase of ashares ~~new~~of ~~business~~an ~~enterprise,~~unproven ~~including~~company ~~limited~~such ~~capital~~as ~~resources~~ours until such time as we become more seasoned and viable. As a consequence, ~~possible~~ ~~delays~~there inmay ~~the~~be ~~exploration~~periods of several days or more when trading activity in our ~~properties~~shares is minimal or non-existent, as compared to a seasoned issuer which has a large and ~~possible~~steady ~~cost~~volume ~~overruns due~~of totrading activity that will generally support continuous sales without an adverse effect on share price. ~~and~~We ~~cost~~cannot ~~increases~~give inyou ~~services~~any assurance that a broader or more active public trading market for our common stock will develop or be sustained, or that current trading levels will be sustained.

ToThe ~~become~~market ~~profitable~~price ~~and competitive~~for our common stock is particularly volatile given our status as a relatively small company, wewhich ~~must~~could ~~find~~lead ~~and~~to ~~acquire~~wide ~~other~~fluctuations ~~mineral~~in ~~properties~~our ~~and~~share ~~conduct~~price. ~~more comprehensive~~You ~~research~~may ~~and~~be ~~exploration~~unable ofto ~~such~~sell ~~properties~~your ~~before~~common westock ~~start production~~at ofor ~~any~~above ~~minerals~~your wepurchase price if at all, which may ~~find~~result in substantial losses to you.

16Shareholders should be aware that, according to SEC Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. The occurrence of these patterns or practices could increase the volatility of our share price.

~~Results~~We ofdo ~~Operations~~not anticipate paying any cash dividends to our common shareholders.

~~For~~We presently do not anticipate that we will pay dividends on any of our common stock in the ~~years~~foreseeable ~~ended~~future. ~~April~~If 30payment of dividends does occur at some point in the future, ~~2011~~ it would be contingent upon our revenues and ~~2010~~earnings, ~~the~~if ~~Company~~any, ~~reported~~capital norequirements, ~~revenue~~and general financial condition. ~~For~~The payment of any common stock dividends will be within the ~~year~~discretion ~~ended~~of ~~April~~our ~~30, 2011,~~Board ~~total~~of ~~expenses~~Directors. ~~were~~We ~~$43,371,~~presently aintend ~~$16,183,~~to orretain ~~59%,~~all ~~increase~~earnings ~~from~~after paying the ~~$27,188 reported~~interest for the ~~same~~preferred ~~period~~stock, inif ~~2010.~~any, ~~Approximately~~to ~~$17~~implement our business plan; accordingly,~~000~~ ofwe ~~this~~do ~~increase~~not ~~is attributable~~anticipate tothe andeclaration ~~increase~~of inany ~~professional~~dividends ~~fees~~for ~~and~~common ~~filing~~stock ~~fees~~in the foreseeable future.

~~Total~~If ~~expenses~~we ~~reported~~are ~~for~~currently ~~the years~~listed ~~ended~~on ~~April~~the ~~30,~~OTC ~~2011~~Markets ~~and~~quotation ~~2010~~system ~~primarily represent expenses incurred for general administration, rent, travel, filing fees, professional services,~~ and ~~bank~~ ~~service~~our ~~charges.~~common ~~Shareholders~~stock ofis ~~the~~subject ~~Company~~to ~~have~~“penny ~~been~~stock” ~~making~~rules ~~advances~~which ~~to the~~could ~~Company~~negatively ~~for~~impact ~~the~~our ~~payment~~liquidity ofand ~~operating~~our ~~expense;~~shareholders’ ~~they~~ability ~~have agreed~~ to ~~continue providing~~sell ~~capital~~their ~~for ongoing operations, until such time the Company can generate revenues from commercial operations or increase capital through various financing arrangements~~shares.

~~Liquidity~~Our ~~and~~common ~~Capital~~stock ~~Resources~~is currently quoted on the OTC Markets. We must comply with numerous NASDAQ MarketPlace rules in order to maintain the listing of our common stock on the OTC Markets. There can be no assurance that we can continue to meet the requirements to maintain the quotation on the OTC Markets listing of our common stock. If we are unable to maintain our listing on the OTC Markets, the market liquidity of our common stock may be severely limited.

To meet our initial need for cash we raised $100,900 from our public offering. As of April 30, 2011, we had $578 in cash available. If we acquire a property, find mineralized material, and it is economically feasible to remove the mineralized material, we will attempt to raise additional money through a subsequent private placement, public offering or through loans.15

AsVolatility ofin ~~the~~Our ~~date~~Common ofShare ~~this~~Price ~~report,~~May weSubject ~~have yet~~Us to ~~generate~~Securities ~~any revenues~~Litigation.

~~Since~~The ~~inception~~market ~~and~~for upour common stock is characterized by significant price volatility as compared to ~~April 30,~~seasoned ~~2011~~issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. In the past, plaintiffs have ~~issued~~often 18initiated securities class action litigation against a company following periods of volatility in the market price of its securities. We may,~~081~~ in the future,~~000~~ ~~shares~~be the target of ~~our~~similar ~~common~~litigation. ~~stock~~Securities litigation could result in substantial costs and ~~received $100,910~~liabilities and could divert management's attention and resources.

In January 2006, we issued 9,000,000 shares of common stock pursuant to the exemption from registration set forth in section 4(2) of the Securities Act of 1933. In November 2006, we issued 9,081,000 shares of common stock pursuant to our registration statement. The ~~proceeds~~ ~~received~~Elimination of ~~the~~Monetary ~~shares~~Liability ~~issued~~Against ~~in January and November were $10 and $100,900, respectively. Our former president covered~~ our ~~initial expenses covering incorporation~~Directors, ~~accounting~~Officers and ~~legal~~Employees ~~fees,~~under ~~and~~Nevada ~~other~~law ~~operating expenses of $32,054~~ and ~~$3,500~~the ~~for~~Existence ~~staking, for a total~~ of ~~$35,554,~~Indemnification ~~all~~Rights of ~~which was paid directly to~~ our ~~attorney~~Directors, ~~accountant,~~Officers and ~~other~~Employees ~~vendors.~~May WeResult ~~repaid~~in ~~$10,000 during~~Substantial ~~the~~Expenditures ~~quarter~~by ~~ended July 31, 2007 to~~ our ~~former~~Company ~~president. The amount owed to our former president was non-interest bearing, unsecured~~ and ~~due~~may onDiscourage ~~demand. Further~~Lawsuits ~~the~~Against ~~agreement with~~ our ~~former president was oral and there was no written document evidencing the agreement. On September 1~~Directors, ~~2008,~~Officers our former president assigned the right to collect the debt owed by the Company for $25,554 to the current president of the Company. On April 29, 2009, our current president waived the debt owed by the Company totaling $25,554 and ~~the amount was recognized as additional paid-in capital~~Employees.

AsOur articles of ~~April~~incorporation ~~30,~~do ~~2011,~~not contain any specific provisions that eliminate the liability of our ~~total current~~directors ~~assets~~for ~~were~~monetary $4damages to our company and shareholders; however,~~078~~ we are prepared to give such indemnification to our directors and officers to the extent provided for by Nevada law. We may also have contractual indemnification obligations under our ~~total~~employment ~~current~~agreements ~~liabilities~~with ~~were~~our ~~$51~~officers. The foregoing indemnification obligations could result in our company incurring substantial expenditures to cover the cost of settlement or damage awards against directors and officers,~~317~~ ~~for~~which we may be unable to recoup. These provisions and resultant costs may also discourage our company from bringing a ~~working~~ ~~capital~~lawsuit ~~deficit~~against directors and officers for breaches of ~~$47~~their fiduciary duties,~~239~~ and may similarly discourage the filing of derivative litigation by our shareholders against our directors and officers even though such actions, if successful, might otherwise benefit our company and shareholders.

~~The~~We ~~financial~~may ~~statements~~need ~~have been~~additional ~~prepared on a going concern basis~~capital, ~~which implies the Company will continue to realize its assets~~ and ~~discharge its liabilities in~~ the ~~normal~~sale ~~course~~ of ~~business.~~ ~~Since~~additional ~~inception,~~shares ~~the~~or ~~Company~~other ~~has~~equity ~~not~~securities ~~generated~~could ~~revenues~~result ~~and~~in ~~has~~additional ~~not paid~~dilution ~~any dividends and is unlikely~~ to ~~either~~our ~~pay dividends or generate revenues in the immediate or foreseeable future~~shareholders.

17In the future, we may require additional cash resources due to changed business conditions or other future developments, including any investments or acquisitions we may decide to pursue. If our resources are insufficient to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity securities could result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could result in operating and financing covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all.

~~The~~Our ~~continuation~~business ~~of the Company as a going concern~~ is ~~dependent~~subject ~~upon~~to ~~the~~changing ~~continued~~regulations ~~financial~~related ~~support from its shareholders, the ability of the Company~~ to ~~obtain~~corporate ~~necessary~~governance ~~equity financing,~~and ~~the~~public ~~Company’s~~disclosure ~~success in acquiring interests in properties~~ that have ~~economically~~ ~~recoverable~~increased ~~reserves,~~both ~~and~~our ~~the~~costs ~~attainment of profitable operations. As at April 30, 2011, the Company has not generated revenues~~ and ~~has accumulated losses totaling $221,603 since inception. These factors raise substantial doubt regarding~~ the ~~Company’s~~risk ~~ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification~~ of ~~recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern~~noncompliance.

~~Recent~~Because ~~accounting~~our ~~pronouncements~~common stock is publicly traded, we are subject to certain rules and regulations of federal, state and financial market exchange entities charged with the protection of investors and the oversight of companies whose securities are publicly traded. These entities, including the Public Company Accounting Oversight Board, the SEC and NASDAQ, have issued requirements and regulations and continue to develop additional regulations and requirements in response to corporate scandals and laws enacted by Congress, most notably the Sarbanes-Oxley Act of 2002. Our efforts to comply with these regulations have resulted in, and are likely to continue resulting in, increased general and administrative expenses and diversion of management time and attention from revenue-generating activities to compliance activities. Because new and modified laws, regulations and standards are subject to varying interpretations in many cases due to their lack of specificity, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This evolution may result in continuing uncertainty regarding compliance matters and additional costs necessitated by ongoing revisions to our disclosure and governance practices.

~~The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant effect on its financial position or results of operations.~~16

~~ITEM~~We ~~7A.~~will ~~QUANTITATIVE~~incur ~~AND~~increased ~~QUALITATIVE~~costs ~~DISCLOSURES~~and ~~ABOUT~~compliance ~~MARKET~~risks ~~RISK~~as a result of becoming a public company.

As a public company, we will incur significant legal, accounting and other expenses. We ~~are~~will aincur ~~smaller~~costs ~~reporting~~ associated with our public company reporting requirements. We also anticipate that we will incur costs associated with recently adopted corporate governance requirements, including certain requirements under the Sarbanes-Oxley Act of 2002, as ~~defined~~well as new rules implemented by ~~Rule~~the ~~12b~~SEC and the National Association of Securities Dealers (“NASD”). We expect these rules and regulations, in particular Section 404 of the Sarbanes-2Oxley Act of 2002, to significantly increase our legal and financial compliance costs and to make some activities more time-consuming and costly. Like many smaller public companies, we face a significant impact from required compliance with Section 404 of the ~~Exchange~~Sarbanes-Oxley Act of 2002. Section 404 requires management of public companies to evaluate the effectiveness of internal control over financial reporting and the independent auditors to attest to the effectiveness of such internal controls and the evaluation performed by management. The SEC has adopted rules implementing Section 404 for public companies as well as disclosure requirements. The Public Company Accounting Oversight Board, or PCAOB, has adopted documentation and attestation standards that the independent auditors must follow in conducting its attestation under Section 404. We are ~~not~~currently ~~required~~preparing for compliance with Section 404; however, there can be no assurance that we will be able to ~~provide~~ effectively meet all of the requirements of Section 404 as currently known to us in the currently mandated timeframe. Any failure to implement effectively new or improved internal controls, or to resolve difficulties encountered in their implementation, could harm our operating results, cause us to fail to meet reporting obligations or result in management being required to give a qualified assessment of our internal controls over financial reporting or our independent auditors providing an adverse opinion regarding management’s assessment. Any such result could cause investors to lose confidence in our reported financial information, ~~under~~which ~~this~~could ~~item~~have a material adverse effect on our stock price.

18We also expect these new rules and regulations may make it more difficult and more expensive for us to obtain director and officer liability insurance and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified individuals to serve on our Board of Directors or as executive officers. We are currently evaluating and monitoring developments with respect to these new rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.

ITEMItem 81B. FINANCIALUnresolved STATEMENTSStaff AND SUPPLEMENTARY DATA.Comments

~~CHINA~~As ~~FOREST~~a ~~ENERGY~~“smaller ~~CORP.~~reporting ~~(AN~~company” ~~EXPLORATION~~we ~~STAGE~~are ~~COMPANY)~~not ~~FINANCIAL~~required ~~STATEMENTS~~to ~~APRIL~~provide ~~30,~~the ~~2011~~information ~~INDEX~~required by this Item.

	PAGE(S)
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	F2
BALANCE SHEETS	F3
STATEMENTS OF OPERATIONS	F4
STATEMENTS OF CASH FLOWS	F5
STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT	F6
NOTES TO FINANCIAL STATEMENTS	F7 - F11

Item 2. Properties

~~F-1~~ Executive Offices

~~REPORT~~Our OFoffice ~~INDEPENDENT~~space ~~REGISTERED~~is ~~PUBLIC~~currently ~~ACCOUNTING FIRM~~donated for our use. The office totals approximately 400square feet in area. Our office is located at Jindi Garden, Boyage, Xihu District, Hangzhou, Zhejiang, P.R. China, and our telephone number is (86) 1358 841 1118.

ToItem the Board of Directors China Forest Energy Corp3. (AnLegal Exploration Stage Company) Zhejiang, P.R. ChinaProceedings

We ~~have~~know ~~audited the accompanying balance sheets~~ of ~~China~~no ~~Forest Energy~~material, ~~Corp.~~existing ~~(an~~or ~~Exploration~~pending ~~Stage~~legal ~~Company)~~proceedings ~~(the~~against ~~“Company”)~~our ~~as of April 30~~company, ~~2011 and~~nor ~~2010,~~are ~~and~~we ~~the~~involved ~~related~~as ~~statements~~a ofplaintiff ~~operations, changes~~ in ~~stockholders’ deficit~~any ~~and~~material ~~cash~~proceeding ~~flows~~or ~~for~~pending ~~the years then ended and for the period from January 26, 2006 (Inception) to April 30, 2011~~litigation. ~~These~~There ~~financial statements~~ are ~~the responsibility~~no ofproceedings ~~the~~in ~~Company’s~~which ~~management.~~any ~~Our~~of ~~responsibility is to express an opinion on these financial statements based on~~ our ~~audits. The financial statements for the period from January 26~~directors, ~~2006~~officers ~~(Inception)~~or ~~to April 30~~affiliates, ~~2009 were~~or ~~audited~~any byregistered ~~other~~or ~~auditors~~beneficial ~~whose~~stockholder, ~~report~~is ~~expressed~~ an ~~unqualified~~adverse ~~opinion~~party ~~on those~~or ~~financial~~has ~~statements. The financial statements for the period from January 26, 2006 (Inception) to April 30, 2009 include total revenues of $-0- and~~ a ~~net loss~~material ofinterest ~~$151,044,~~adverse ~~respectively. Our opinion on the statements of operations, changes in stockholders’ deficit and cash flows for the period from January 26, 2006 (Inception)~~ to ~~April~~our ~~30, 2011, insofar as it relates to amounts from January 26, 2006 (Inception) to April 30, 2009, is based solely on the report of other auditors~~interest.

WeItem conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States)4. ThoseMine standards requireSafety that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.Disclosures

InNot ~~our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of China Forest Energy Corp~~applicable. as of April 30, 2011 and the results of its operations and its cash flows for the two years then ended and for the period from January 26, 2006 (Inception) to April 30, 2011, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has a working capital deficit, generated no revenues since inception, and has an accumulated deficit. Those conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to those matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.17

~~GBH~~PART ~~CPAs, PC www.gbhcpas.com Houston, Texas August 4, 2011~~II

Our common stock is listed for quotation on the OTCQB under the Symbol "NANI". Our common stock was listed for quotation on the Over the Counter Bulletin Board on March 13, 2007 under the symbol "HENX". On December 28, 2010, our symbol was changed to "CFEC" in connection with our merger and change of name to China Forest Energy Corp. ~~(An~~and ~~Exploration~~was ~~Stage~~changed ~~Company)~~to ~~Balance~~our ~~Sheets~~current symbol on May 10, 2012. The first trade of our securities occurred on January 7, 2011.

		April 30,
ASSETS		2011			2010
Current Assets
Cash and cash equivalents	$	578		$	1,982
Prepaid expenses		3,500			-
Total Assets	$	4,078		$	1,982
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable and accrued liabilities	$	1,817		$	1,500
Notes payable		28,500			-
Advances from related party		21,000			14,000
Total Current Liabilities		51,317			15,500
Stockholder’s Deficit
Preferred stock, $0.00001 par value, 100,000,000 shares authorized, none issued and outstanding		-			-
Common stock, $0.00001 par value, 900,000,000 shares authorized, 18,081,000 shares issued and outstanding		181			181
Additional paid-in capital		174,183			164,533
Accumulated deficit during the exploration stage		(221,603	)		(178,232	)
Total Stockholders' Deficit		(47,239	)		(13,518	)
Total Liabilities and Stockholders' Deficit	$	4,078		$	1,982

The high and low bid prices of our common stock for the periods indicated below are as follows:

The accompanying notes are an integral part of these financial statements. F-3

OTC
Quarter Ended⁽¹⁾	High	Low
April 30, 2012	$0.825	$0.042
January 31, 2012	$1.30	$0.00
October 31, 2011	$1.25	$0.95
July 31, 2011	$1.17	$Nil
April 30, 2011	$Nil	$Nil
January 31, 2011	$1.165	$1.00

~~China~~(1) The ~~Forest~~first ~~Energy~~trade ~~Corp.~~in ~~(An~~our ~~Exploration~~common ~~Stage~~stock ~~Company)~~occurred ~~Statements~~on ofJanuary ~~Operations~~7, 2011.

								For the Period
								January 26,
								2006
		Year Ended						(Inception) to
		April 30,						April 30,
		2011			2010			2011
REVENUES	$	-		$	-		$	-
OPERATING EXPENSES
General and administrative		42,721			27,188			217,453
Impairment of mineral property costs		-			-			3,500
Total operating expenses		42,721			27,188			220,953
Other expense		650						650
NET LOSS	$	(43,371	)	$	(27,188	)	$	(221,603	)
LOSS PER COMMON SHARE
Basic and Diluted	$	(0.00	)	$	(0.00	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – Basic and Diluted		18,081,000			18,081,000

As of August 14, 2012, there were approximately 32 holders of record of our common stock. As of such date, 185,000,000 common shares were issued and outstanding.

~~The~~Dividend ~~accompanying~~Policy ~~notes are an integral part of these financial statements. F-4~~

~~China~~We ~~Forest~~have ~~Energy~~not ~~Corp~~paid any cash dividends on our common stock and have no present intention of paying any dividends on the shares of our common stock. ~~(An~~Our ~~Exploration~~current ~~Stage~~policy ~~Company)~~is ~~Statements~~to retain earnings, if any, for use in our operations and in the development of ~~Cash~~our ~~Flows~~business. Our future dividend policy will be determined from time to time by our board of directors.

								For the Period
								from January 26,
								2006
		Year Ended						(Inception) to
		April 30,						April 30,
		2011			2010			2011
Cash flows from operating activities
Net loss	$	(43,371	)	$	(27,188	)	$	(221,603	)
Adjustment to reconcile net loss to net cash used for operating activities:
Impairment of mineral property costs		-			-			3,500
Donated services		6,000			6,000			31,500
Donated rent		3,000			3,000			15,750
Imputed interest		650						650
Changes in operating assets and liabilities
Prepaid expenses		(3,500	)		-			(3,500	)
Accounts payable and accrued liabilities		317			(3,500	)		1,817
Net cash used in operating activities		(36,904	)		(21,688	)		(171,886	)
Cash flows from investing activities
Mineral property costs		-			-			(3,500	)
Net cash used in investing activities		-			-			(3,500	)
Cash flows from financing activities
Net advances from related party		7,000			14,000			46,554
Proceeds from note payable		28,500			-			28,500
Proceeds from issuance of common stock		-			-			100,910
Net cash provided by financing activities		35,500			14,000			175,964
Net increase (decrease) in cash		(1,404	)		(7,688	)		578
Cash, beginning of period		1,982			9,670			-
Cash, end of period	$	578		$	1,982		$	578
Supplemental disclosures of cash flow information:
Interest paid	$	-		$	-		$	-
Income taxes paid	$	-		$	-		$	-
Supplemental schedule of non-cash financing activities::
Capital contribution of shareholder loan	$	-		$	-		$	25,554

Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities

~~The~~We ~~accompanying~~did ~~notes~~not ~~are~~sell anany ~~integral~~equity ~~part~~securities ofwhich ~~these~~were ~~financial statements. F~~not registered under the Securities Act during the year ended April 30, 2012 that were not otherwise disclosed in our registration statement on Form S-51, quarterly reports on Form 10-Q or our current reports on Form 8-K filed during the year ended April 30, 2012.

~~China~~Equity ~~Forest~~Compensation ~~Energy~~Plan ~~Corp.~~Information ~~(An Exploration Stage Company) Statement of Changes in Stockholders' Deficit For the period from January 26, 2006 (inception) to April 30, 2011~~

										Deficit
										Accumulated
					Additional					During the
	Common Stock				Paid-in			Donated		Exploration
	Shares		Amount		Capital			Capital		Stage			Total
Balance, January 26, 2006 (inception)	-	$	-	$	-		$	-	$	-		$	-
Common shares issued for cash at $0.0000011 per share	9,000,000		90		(80	)		-		-			10
Donated rent and services	-		-		-			2,250		-			2,250
Net loss for the period	-		-		-			-		(6,062	)		(6,062	)
Balance, April 30, 2006	9,000,000		90		(80	)		2,250		(6,062	)		(3,802	)
Common shares issued for cash at $0.011101 per share	9,081,000		91		100,809			-		-			100,900
Donated rent and services	-		-		-			9,000		-			9,000
Net loss for the year	-		-		-			-		(66,106	)		(66,106	)
Balance, April 30, 2007	18,081,000		181		100,729			11,250		(72,168	)		39,992
Donated rent and services	-		-		-			9,000		-			9,000
Net loss for the year	-		-		-			-		(39,063	)		(39,063	)
Balance, April 30, 2008	18,081,000		181		100,729			20,250		(111,231	)		9,929
Donated rent and services	-		-		-			9,000		-			9,000
Payable waived by former president	-		-		-			25,554		-			25,554
Net loss for the year	-		-		-			-		(39,813	)		(39,813	)
Balance, April 30, 2009	18,081,000		181		100,729			54,804		(151,044	)		4,670
Donated rent and services	-		-		-			9,000		-			9,000
Net loss for the year	-		-		-			-		(27,188	)		(27,188	)
Balance, April 30, 2010	18,081,000		181		100,729			63,804		(178,232	)		(13,518	)
Donated rent and services	-		-		-			9,000		-			9,000
Imputed interest	-		-		650			-		-			650
Net loss for the year	-		-		-			-		(43,371	)		(43,371	)
Balance, April 30, 2011	18,081,000	$	181	$	101,379		$	72,804	$	(221,603	)	$	(47,239	)

Except as disclosed below, we do not have a stock option plan in favor of any director, officer, consultant or employee of our company.

~~The accompanying notes are an integral part of these financial statements. F-6~~18

~~China~~Purchase ~~Forest~~of ~~Energy~~Equity ~~Corp.~~Securities ~~(An~~by ~~Exploration~~the ~~Stage~~Issuer ~~Company)~~and ~~Notes~~Affiliated ~~to Financial Statements April 30, 2011~~Purchasers

~~NOTE~~We 1did –not ~~NATURE~~purchase OFany ~~OPERATIONS~~of ~~AND~~our ~~SUMMARY~~shares OFof ~~SIGNIFICANT ACCOUNTING~~common ~~POLICIES~~stock or other securities during our fiscal year ended April 30, 2012.

ChinaItem Forest Energy Corp6. (theSelected “Company”)Financial was incorporated in the State of Nevada on January 26, 2006. During 2011, the Company changed its name from Henix Resources, Inc. to China Forest Energy Corp. The Company is an Exploration Stage Company, as defined by Accounting Standards Codification (“ASC”) 915. The Company’s principal business is the acquisition, exploration and development of mineral properties. On December 16, 2010, the Company filed articles of merger with its wholly-owned subsidiary to change the Company’s name to China Forest Energy Corp.Data

~~Basis~~As ofa ~~Presentation~~“smaller reporting company” we are not required to provide the information required by this Item.

TheseItem financial7. statementsManagement’s Discussion and relatedAnalysis notesof areFinancial presentedCondition in accordance with accounting principles generally accepted in the United States, and areResults expressedof in U.S. dollars. The Company’s fiscal year-end is April 30.Operations

~~Use~~The following discussion should be read in conjunction with our audited financial statements and the related notes for the year ended April 30, 2012 and the year ended April 30, 2011 that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this annual report, particularly in the section entitled "Risk Factors" beginning on page 10 of ~~Estimates~~this annual report.

~~The~~Our ~~preparation~~audited of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company regularly evaluates estimates and assumptions related to donated expenses and deferred income tax asset valuation allowances. 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 and the accrual of costs and expenses that are ~~not~~stated ~~readily apparent~~in ~~from~~United ~~other~~States ~~sources.~~Dollars ~~The actual results experienced by the Company may differ materially~~ and ~~adversely from the Company’s estimates. To the extent there~~ are ~~material~~prepared ~~differences~~in ~~between~~accordance ~~the~~with ~~estimates~~United ~~and~~States ~~the~~Generally ~~actual~~Accepted ~~results, future~~Accounting ~~results of operations will be affected~~Principles.

~~Earnings~~Plan ~~(Loss)~~of ~~Per~~Operations ~~Share~~

~~Basic~~Cash ~~earnings~~Requirements per share (“EPS”) is computed by dividing earnings (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period 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 if their effect is anti dilutive. In periods where losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive. The Company has no potentially diluted instruments outstanding at April 30, 2011 and 2010

~~Cash~~We have little cash on hand, no financing arrangements and ~~Cash~~no ~~Equivalents~~lines of credit or other bank financing arrangements. There can be no assurance that we will be able to close any financing and if we do close any financings, there can be no assurance that they will be sufficient to meet our needs for the upcoming 12 months.

~~The~~In ~~Company~~order ~~considers~~to ~~all~~execute ~~highly~~our ~~liquid~~business ~~instruments~~plan, ~~with~~we ~~a maturity~~estimate ofthat ~~three~~we will require approximately $1,100,000 over the next 12 months. However, orwe ~~less~~estimate atthat we will require approximately $70,000 in order to sustain our basic operations and meet our public reporting requirements for the ~~time~~same of12 ~~issuance~~month period. In the event that we are unable to beraise ~~cash equivalents~~sufficient financing to execute our business plan, we will downscale our business plan and operations as required by our budgetary limitations.

~~F-7~~Our working capital requirements are expected to increase in line with the growth of our business.

~~Income~~We ~~Taxes~~estimate that our expenses over the next 12 months will be approximately $1,100,000 as described in the table below. These estimates may change significantly depending on the nature of our future business activities and our ability to raise capital from shareholders or other sources.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.

Description	Estimated Completion Date	Estimated Expenses ($)
Legal and accounting fees	12 months	80,000
Website and app development	4 months	175,000
Management and consulting costs	12 months	275,000
Marketing	8 months	400,000
Acquisition of fixed assets	12 months	100,000
General and administrative expenses	12 months	70,000
Total		1,100,000

~~Subsequent Events~~19

~~The~~We ~~Company~~have ~~has~~no ~~evaluated~~lines ~~subsequent~~of ~~events~~credit ~~through~~or ~~the~~other ~~filing~~ bank financing arrangements. Generally, we have financed operations to date ofthrough ~~this~~advances ~~Form~~and 10loans from shareholders and related parties. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to developmental expenses associated with a start-Kup business. (ii) expansion of server facilities, technical support, and ~~has~~related ~~determined~~infrastructure; ~~that~~and ~~there~~(iii) ~~were~~expansion noof ~~subsequent~~our ~~events~~ marketing campaign. We intend to ~~recognize~~finance these expenses with further issuances of securities, and debt issuances. We require additional capital and generate revenues to meet both our immediate, short-term, long-term operating requirements. Additional issuances of equity or ~~disclose~~convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to sustain our operations, develop our business, or take advantage of prospective new business endeavours or opportunities, which could significantly and materially restrict our business operations or cause our business to fail. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these ~~financial~~loans. ~~statements~~We do not have any arrangements in place for any future equity financing.

~~Recent~~Inflation ~~Accounting Pronouncements~~

~~The~~Inflation ~~Company~~and ~~does~~changing prices have not had a material effect on our business and we do not expect that inflation or changing prices will materially affect our business in the ~~adoption~~foreseeable offuture. ~~any~~However, ~~recently~~our ~~issued accounting~~management ~~pronouncements~~will toclosely ~~have~~monitor athe ~~significant~~price ~~effect~~change onin ~~its~~travel ~~financial~~industry ~~position or~~and ~~results~~continually ofmaintain effective cost control in operations.

~~NOTE~~Personnel 2Plan ~~– GOING CONCERN~~

~~These~~We ~~financial~~do statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. Since inception, the Company has not ~~generated~~expect ~~revenues and has not paid~~ any ~~dividends~~material ~~and~~changes ~~is unlikely to either pay dividends or generate revenues~~ in the ~~immediate~~number ~~or foreseeable future. The continuation~~ of ~~the~~employees ~~Company~~over ~~as a going concern is dependent upon~~ the ~~continued~~next ~~financial~~12 ~~support~~month from its shareholders, the ability of the Company to obtain necessary equity financing, the Company’s success in acquiring interests in properties that have economically recoverable reserves, and the attainment of profitable operationsperiod. As at April 30, 2011, the Company has a working capital deficit, generated no revenues since inception, and has an accumulated deficit totaling $221,603 since inception. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

~~NOTE~~Off-Balance 3Sheet –Arrangements ~~RELATED PARTY TRANSACTIONS~~

OnThere ~~September~~are 1,no ~~2008,~~off-balance ~~our~~sheet ~~former~~arrangements ~~president~~that ~~assigned~~have ~~the~~or ~~right to~~are ~~collect~~reasonably ~~the~~likely ~~debt owed by the Company for $25,554~~ to ~~the~~have a current ~~president~~or ~~of the~~future ~~Company.~~effect Onon ~~April~~our ~~29,~~financial ~~2009~~condition, ~~our~~changes ~~current~~in ~~president~~financial ~~waived~~condition, ~~the~~revenues ~~debt~~or ~~owed~~expenses, ~~by the~~results ~~Company~~of ~~totaling $25~~operations,~~554.~~ ~~The Company recognized $25~~liquidity,~~554~~ ofcapital ~~debt~~expenditures ~~waived~~or ~~as additional paid-in~~ capital ~~during~~resources ~~the~~that ~~year~~is ~~ended~~material ~~April~~to ~~30, 2009~~investors.

AsOur ofprincipal ~~April~~capital ~~30,~~resources ~~2011~~have ~~and~~been ~~2010,~~through the ~~Company~~subscription ~~was~~and ~~indebted~~issuance ~~to the current president~~ of ~~the~~common ~~Company~~stock, inalthough ~~the~~we ~~amount~~have ofalso ~~$21,000~~utilized ~~and~~a ~~$14,000 respectively,~~loan ~~representing cash advances~~ and ~~expenses paid on behalf of the Company. The balances consist of~~ advances ~~that~~from ~~are~~related ~~non-interest bearing, unsecured and due on demand~~parties.

~~During~~Results ~~the~~of ~~years~~Operations ~~ended~~for ~~April 30, 2011 and 2010,~~ the ~~Company recognized~~Years ~~$3,000~~Ended ~~and~~April $330,~~000,~~ ~~respectively, for donated rent~~ 2012 and ~~$6,000 and $6,000, respectively, for donated services. These amounts were charged to operations and recorded as additional paid-in capital.~~2011

~~F-8~~The following summary of our results of operations should be read in conjunction with our audited financial statements for the years ended April 30, 2012 and 2011.

~~NOTE~~Our 4operating –results ~~NOTES~~for ~~PAYABLE~~the years ended April 30, 2012 and 2011 are summarized as follows:

On December 20, 2010, the Company obtained a loan with a balance totaling $16,565 as of April 30, 2011 from an unrelated party. The loan is non-interest bearing, unsecured and due on demand.

		Year ended April 30,
		2012		2011

Revenue	$	Nil	$	Nil
Cost of Goods Sold	$	Nil	$	Nil
Operating Expenses	$	46,227	$	42,721
Interest Expense		3,550		650
Net Loss	$	(49,777)	$	(43,371)

On April 1, 2011, the Company obtained a loan with a balance totaling $4,500 paid for Dean Law Corporation legal fee retainer as of April 30, 2011 from an unrelated party. The loan is non-interest bearing, unsecured and due on demand.20

OnRevenues ~~April~~and ~~13,~~Cost ~~2011, the Company obtained a loan with a balance totaling $4,435 as~~ of ~~April~~Goods ~~30, 2011 from an unrelated party. The loan is non-interest bearing, unsecured and due on demand.~~Sold

OnWe ~~April~~have ~~30,~~not ~~2010,~~earned ~~the~~any ~~Company~~revenues ~~obtained~~nor ahave ~~loan~~we ~~with~~incurred acost ~~balance totaling~~of ~~$3,000~~goods ~~paid~~sold ~~for~~since Winception. L.We ~~MacDonald~~do ~~Law~~not ~~Corporation~~expect asto ofearn ~~April~~revenue ~~30,~~for ~~2011 from~~the anupcoming ~~unrelated~~6 ~~party~~months. ~~The loan is non-interest bearing, unsecured and due on demand.~~

~~During~~Operating ~~the~~Expenses ~~year ended April 30, 2011, the Company recorded imputed interest in the amount of $650 on these non-interest bearing loans.~~

~~NOTE~~Our 5operating –expenses ~~MINERAL~~for ~~PROPERTY~~the ~~COSTS~~year ended April 30, 2012 and the year ended April 30, 2011 are outlined in the table below:

In January 2006, the Company acquired a 100% interest in a mineral claim located in the Province of British Columbia, Canada for $3,500. The claim was registered in the name of the former president of the Company, who had executed a trust agreement whereby our former president agreed to hold the claim in trust on behalf of the Company. The cost of the mineral property was initially capitalized. During the year ended April 30, 2009, the management of the Company decided not to ask our former president to renew the claim on the property when expired on January 30, 2009 as it had determined there were no proven or probable reserves on the property. As of April 30, 2011, the Company had fully impaired the cost of the mineral claim.

Year ended

April 30,

2012

2011

General and administrative

46,227

42,721

~~NOTE~~The 6increase in –operating ~~COMMON~~expenses ~~STOCK~~for the year ended April 30, 2012, compared to the same period in fiscal 2011, was mainly due to an increase in professional fees and filing fees.

~~Effective~~Liquidity ~~December 16, 2010, the Company filed articles of merger with its wholly-owned subsidiary to change the Company’s name to China Forest Energy Corp.~~ and ~~filed~~Financial a certificate of change with the Nevada Secretary of State to give effect to a forward split of the Company’s authorized and issued and outstanding shares of common stock on a nine (9) new for one (1) old basis. Upon effect of the forward stock split, the authorized capital increased from 100,000,000 to 900,000,000 shares of common stock and, correspondingly, the issued and outstanding increased from 2,009,000 to 18,081,000 shares of common stock, with a par value of $0.00001. The Company’s preferred stock was unaffected as a result of the forward split. The Company’s financial statements have been retroactively restated to incorporate the effect of the forward split.Condition

OnAs ~~January~~of ~~12,~~April ~~2011~~30, ~~the Company enter into share exchange agreement with Zhejiang Forest Bamboo Tec Co.~~2012, ~~Ltd.~~our atotal ~~People’s~~current ~~Republic~~assets ofwere ~~China corporation~~$557 and ~~Forest~~our ~~Energy~~total ~~Co.,~~current ~~Ltd.,~~liabilities awere ~~British Virgin Islands corporation. Forest Energy Co.~~$85,023 ~~Ltd.~~resulting ~~is the registered and beneficial owner of all of the issued and outstanding common shares~~ in ~~the capital of Sinoport Enterprises Limited,~~ a ~~British~~working ~~Virgin Islands corporation (“Sinoport”). Sinoport is the sole owner of all share~~ capital ofdeficit ~~USCNHK Group Limited, a Hong Kong corporation, (“USCNHK”), and USCNHK is the owner~~ of ~~95%~~$84,466. orWe ~~76,000,000~~had ~~shares,~~a ofnet ~~the~~loss ~~share capital~~ of ~~Zhejiang Forest Bamboo Tec Co.~~$49,777 ~~Ltd. The Company has agreed to issue 15,919,000 common shares to the Forest Energy Co., Ltd.’s shareholder as consideration~~ for the ~~purchase~~year ~~50,000~~ended ~~common~~April ~~share of Zhejiang Forest Bamboo Tec Co.~~30, ~~Ltd. Upon closing of the share exchange~~2012, ~~Yongfu~~and ~~Zhu~~$271,380 ~~one~~for of the ~~Company’s current~~period ~~officers~~from ~~and~~January ~~directors~~26, ~~will~~2006 ~~cancel~~(date ~~9,000,000 shares~~ of ~~the~~inception) ~~Company’s common~~to ~~stock~~April ~~held in his name and the Company will have no more than 25~~30,~~000,000 shares~~ ~~of common stock issued and outstanding~~2012. ~~As of August 4, 2011, this share exchange agreement has not been closed because the parties involved are still negotiating the terms.~~

~~F-9~~We have suffered recurring losses from operations. The continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed. In this regard we have raised additional capital through private placement of equity and loan transactions.

NOTE 7 – INCOME TAXES

Cash Flows		Year ended April 30,
		2012		2011

Net Cash Used in Operating Activities	$	(14,225)	$	(36,904)
Net Cash Used in Investing Activities	$	Nil	$	Nil
Net Cash Provided from Financing Activities	$	14,000	$	35,500
Increase (Decrease) In Cash	$	(225)	$	(1,404)

~~The~~We ~~Company~~had ~~uses~~cash ~~the~~in ~~liability method, where deferred tax assets and liabilities are determined based on~~ the ~~expected~~amount ~~future tax consequences~~ of ~~temporary~~$353 ~~differences~~as ~~between the carrying amounts~~ of assets and liabilities for financial and income tax reporting purposes. In assessing the recoverability of deferred tax assets, we determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized. A full valuation allowance against our deferred tax asset was recognized at April 30, ~~2011~~2012 as ~~and~~compared ~~2010 due~~ to ~~our uncertainty~~ $578 as ~~to the utilization~~ of ~~the deferred tax asset in the foreseeable future. The net change in the total valuation allowance for the years ended~~ April 30, 2011. ~~and~~We ~~2010~~had ~~was~~a anworking ~~increase~~capital deficit of ~~approximately~~ $1384,~~800~~466 ~~and~~as ~~$9,000,~~of ~~respectively. At~~ April 30, ~~2011,~~2012 compared ~~for~~to ~~federal income~~a ~~tax~~working ~~and~~capital ~~alternative~~deficit ~~minimum~~of ~~tax reporting purposes, the Company had approximately~~ $~~220~~47,~~000~~239 as of ~~unused~~April ~~net~~30, ~~operating losses available for carryforward to future years~~2011. ~~The benefit from the net operating loss carryforwards will begin to expire in the year 2026 through 2031.~~

AtFuture ~~April~~Financings ~~30, 2011 and 2010, the net deferred tax asset consisted of the following:~~

		2011			2010
Deferred tax asset:
Net operating loss carryforwards	$	74,800		$	61,000
Less: valuation allowance		(74,800	)		(61,000	)
Net deferred tax asset	$	-		$	-

We will require additional funds to implement our growth strategy in our new business. These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of our shares.

~~Our~~There ~~effective~~can ~~tax~~be ~~rate~~no ~~applicable~~assurance that additional financing will be available to ~~continuing~~us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis should it be required, or generate significant material revenues from operations, is we will not be able to meet our other obligations as ~~follows:~~they become due and we will be forced to scale down or perhaps even cease our operations.

	Year Ended
	April 30,	April 30,
	2011	2010
Expected tax rate	(34)%	(34)%
Change in valuation allowance	34%	34%
Income tax provision (benefit)	-%	-%

~~F-10~~ Contractual Obligations

~~ITEM~~As 9.a ~~CHANGES~~“smaller INreporting ~~AND~~company”, ~~DISAGREEMENTS~~we ~~WITH~~are ~~ACCOUNTANTS~~not ONrequired ~~ACCOUNTING~~to ~~AND~~provide ~~FINANCIAL~~tabular ~~DISCLOSURE~~disclosure obligations.

~~There~~Going have been no disagreements on accounting and financial disclosures from the inception of our company through the date of this Form 10-K. Our financial statements for the period from inception to April 30, 2011, included in this report have been audited by GBH CPAs, PC at 6002 Rogerdale, Suite 500, Houston, Texas 77072 United States of America, as set forth in this annual report.Concern

~~ITEM~~The 9Aaccompanying financial statements have been prepared on a going concern basis, which assumes our company will continue to realize its assets and discharge its liabilities in the normal course of business. ~~CONTROLS~~The ~~AND~~continuation ~~PROCEDURES~~of our company as a going concern is dependent upon the continued financial support from our shareholders, the ability of our company to obtain necessary financing and the attainment of profitable operations. As of April 30, 2012, our company has incurred losses totaling $271,380 since inception, and has not yet generated significant revenue from operations. These factors raise substantial doubt regarding our company’s ability to continue as a going concern.

~~Evaluation~~If ofwe ~~Disclosure~~are ~~Controls~~able to raise additional funds and ~~Procedures~~ our operations and cash flow improve, management believes that we will be able to continue to operate. However, no assurance can be given that management's actions will result in profitable operations or an improvement in our liquidity. The uncertainty regarding our ability to continue as a going concern will cease when our revenues have reached a level able to sustain our business operations.

WeCritical ~~maintain~~Accounting ~~“disclosure~~Policies controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, 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. We conducted an evaluation (the “Evaluation”), under the supervision and with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures (“Disclosure Controls”) as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. Based on this Evaluation, our CEO and CFO concluded that our Disclosure Controls were not effective as of the end of the period covered by this report due to the material weaknesses described in Management's Report on Internal Control over Financial Reporting below.

~~Limitations~~The ondiscussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the ~~Effectiveness~~accounting principles generally accepted in the United States of ~~Controls~~America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

~~Our~~Use management, including our CEO and CFO, does not expect that our Disclosure Controls and internal controls over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management or board override of the control. Estimates

The ~~design~~preparation of ~~any~~financial ~~system~~statements ~~of controls~~in ~~also~~conformity iswith ~~based~~accounting inprinciples ~~part~~generally ~~upon~~accepted ~~certain~~in ~~assumptions~~the ~~about~~United ~~the~~States ~~likelihood~~requires ~~of future~~management ~~events,~~to make estimates and ~~there~~assumptions ~~can~~that beaffect nothe ~~assurance~~amounts ~~that~~of ~~any~~assets ~~design~~and ~~will~~liabilities ~~succeed~~and ~~in achieving~~disclosure ~~its~~of ~~stated~~contingent ~~goals~~assets ~~under~~and ~~all~~liabilities ~~potential~~at ~~future~~the ~~conditions;~~date ~~over~~of ~~time, controls~~the ~~may~~balance ~~become~~sheet ~~inadequate~~and ~~because~~reported amounts of ~~changes~~revenues inand ~~conditions,~~expenses orduring the ~~degree of~~reporting ~~compliance~~period. ~~with~~Actual ~~the~~results ~~policies~~could ordiffer ~~procedures~~from ~~may~~those ~~deteriorate~~estimates.

19Recent Accounting Pronouncements We do not expect the adoption of any other recently issued accounting pronouncements to have a significant effect on its financial position or results of operations.

BecauseItem of7A. theQuantitative inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and notQualitative beDisclosures detected.About Market Risk

~~Changes~~As ina ~~Internal~~“smaller ~~Control~~reporting company” we are not required to provide the information required by this Item.

ThereItem have8. beenFinancial noStatements changesand inSupplementary our internal control over financial reporting during the year ended April 30, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting Data

~~CEO and CFO Certifications~~ 22

~~Appearing~~REPORT ~~immediately~~OF ~~following the~~INDEPENDENT ~~Signatures~~REGISTERED ~~section~~PUBLIC ofACCOUNTING this report there are Certifications of the CEO and the CFO. The Certifications are required in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 (the Section 302 Certifications). This Item of this report, which you are currently reading is the information concerning the Evaluation referred to in the Section 302 Certifications and this information should be read in conjunction with the Section 302 Certifications for a more complete understanding of the topics presented. FIRM

~~Management’s~~To ~~Report~~the onBoard ~~Internal~~of ~~Control~~Directors Neologic ~~over~~Animation ~~Financial Reporting~~Inc.(formerly Narnia Corp.)(a Development Stage Company)Zhejiang, P.R. China

~~Our~~We ~~management~~have isaudited ~~responsible~~the ~~for establishing~~accompanying ~~and~~balance ~~maintaining~~sheets ~~adequate~~of ~~internal~~Neologic ~~control~~Animation ~~over~~Inc. ~~financial~~(a ~~reporting. Under~~Development Stage Company) (the ~~supervision~~“Company”) as of April 30, 2012 and ~~with~~2011, and the ~~participation~~related statements of ~~our management~~operations, ~~including our~~changes ~~Chief~~in ~~Executive~~stockholders’ ~~Officer~~deficit and ~~Chief~~cash ~~Financial~~flows ~~Officer~~for the years then ended and for the period from January 26, we2006 ~~conducted~~(Inception) ~~an evaluation~~to ofApril 30, 2012. These financial statements are the ~~effectiveness~~responsibility of ~~our~~the ~~internal~~Company’s ~~control~~management. ~~over~~Our responsibility is to express an opinion on these financial ~~reporting as~~statements ofbased on our audits. The financial statements for the period from January 26, 2006 (Inception) to April 30, ~~2011~~2009 ~~using~~were ~~the~~audited ~~criteria~~by ~~established~~other inauditors ~~Internal Control—Integrated~~whose ~~Framework~~report ~~issued~~expressed byan unqualified opinion on those financial statements. The financial statements for the ~~Committee~~period from January 26, 2006 (Inception) to April 30, 2009 include total revenues of ~~Sponsoring~~$-0- ~~Organizations~~ and a net loss of $151,044, respectively. Our opinion on the ~~Treadway~~statements ~~Commission~~of operations, changes in stockholders’ deficit and cash flows for the period from January 26, 2006 (~~COSO~~Inception). to April 30, 2012, insofar as it relates to amounts from January 26, 2006 (Inception) to April 30, 2009, is based solely on the report of other auditors.

A We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material ~~weakness~~misstatement. The Company is ~~a deficiency~~not required to have, ornor ~~combination~~were ofwe ~~deficiencies~~engaged to perform, inan audit of its internal control over financial reporting,. Our ~~such~~audits ~~that~~included ~~there~~consideration isof ainternal ~~reasonable~~control ~~possibility~~over ~~that~~financial reporting as a ~~material misstatement~~basis offor ~~the~~designing ~~Company’s~~audit ~~annual~~procedures orthat ~~interim~~are ~~financial~~appropriate ~~statements~~in ~~will~~the circumstances, but not ~~be prevented~~for orthe ~~detected~~purpose onof aexpressing ~~timely~~an ~~basis.~~opinion Inon ~~its~~the ~~assessment~~effectiveness of the ~~effectiveness of~~Company’s internal control over financial reporting. Accordingly, aswe ofexpress ~~April~~no 30such opinion. An audit also includes examining, ~~2011~~on a test basis, evidence supporting the ~~Company determined~~amounts ~~that~~and ~~there~~disclosures ~~were~~in ~~control~~the ~~deficiencies~~financial ~~that~~statements, ~~constituted~~assessing ~~material weaknesses~~the accounting principles used and significant estimates made by management, as ~~described~~well ~~below~~as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

1. In Weour doopinion, ~~not~~the ~~employ~~financial anstatements ~~Audit~~referred ~~Committee~~to –above ~~While~~present ~~not~~fairly, ~~being legally~~in ~~obligated~~all tomaterial ~~have~~respects, anthe ~~audit~~financial ~~committee,~~position itof isthe ~~management’s~~Company ~~view~~as ~~that~~of ~~such a~~April ~~committee~~30, ~~including~~2012 aand ~~financial expert member~~2011, isand anthe ~~utmost~~results ~~important~~of ~~entity level~~its ~~control~~operations ~~over~~and ~~the~~its ~~Company’s~~cash ~~financial~~flows ~~statement.~~for ~~Currently~~ the ~~Board~~years ~~of Directors~~then ~~acts~~ended inand ~~the~~for ~~capacity of~~ the ~~Audit~~period ~~Committee,~~from ~~consisting~~January ~~of two members~~26, ~~one~~2006 ~~who~~(Inception) isto ~~not~~April ~~independent~~30, of2012, ~~management~~in asconformity hewith isaccounting ~~the~~principles ~~sole~~generally ~~officer~~accepted ~~and~~ in the ~~other~~United ~~member~~States ~~lacks~~of ~~sufficient financial expertise for overseeing financial reporting responsibilities~~America.

2. The ~~Dual~~accompanying ~~signatures~~financial ofstatements ~~cheques~~have –been weprepared ~~only~~assuming ~~have~~that ~~one~~the ~~cheque~~Company ~~signing authority~~will continue as a going concern. As ~~Management~~discussed ~~feels~~in ~~that~~Note 3 to the ~~lack~~financial ofstatements, ~~dual~~the ~~signatures~~Company onhas ~~cheques~~suffered ~~can increase~~recurring ~~the~~losses ~~likelihood~~from ofoperations ~~misappropriation~~and ofhas ~~assets~~a ~~given~~net ~~the~~capital ~~fact~~deficiency that ~~there is~~raise ~~only~~substantial ~~one~~doubt ~~person~~about ~~with~~its ~~signing~~ability ~~authority~~to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

3./s/ WeGBH ~~did not maintain proper segregation of duties for the preparation of our financial statements –As of April 30~~CPAs, 2011 the majority of the preparation of financial statements was carried out by one person. In addition, the Company currently only has one officer and director having oversight on all transactions. This has resulted in several deficiencies including:PC

20GBH CPAs, PCwww.gbhcpas.comHouston, Texas

a)August ~~Significant~~14, non-standard journal entries were prepared and approved by the same person, without being checked or approved by any other personnel within the Company. In addition, approval of significant transactions was not documented as approved by the Company’s Board of Directors. 2012

~~b) Lack of control over preparation of financial statements and proper application of accounting policies.~~F-1

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.

Neologic Animation Inc. (formerly Narnia Corp.) (A Development Stage Company) Balance Sheets
	April 30, 2012	April 30, 2011

ASSETS
Current assets
Cash	$ 353	$ 578
Prepaid expenses	204	3,500
Total assets	$ 557	$ 4,078

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities	$ 21,523	$ 1,817
Notes payable	42,500	28,500
Advances from related party	21,000	21,000
Total current liabilities	85,023	51,317

Commitments and contingencies	-	-

Stockholders' deficit
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, none issued and outstanding	-	-
Common stock, $0.00001 par value; 400,000,000 shares authorized, 162,729,000 shares issued and outstanding	1,627	1,627
Additional paid-in capital	185,287	172,737
Deficit accumulated during the exploration stage	(271,380)	(221,603)
Total stockholders' deficit	(84,466)	(47,239)
Total liabilities and stockholders' deficit	$ 557	$ 4,078

AsThe aaccompanying ~~result~~notes ofare ~~the~~an ~~material weaknesses~~integral ~~described~~part ~~above,~~of ~~management~~these ~~has concluded that the Company did not maintain effective internal control over~~ financial ~~reporting as of April 30, 2011 based on criteria established in Internal Control—Integrated Framework issued by COSO~~statements.

GBH, CPAs, PC, an independent registered public accounting firm, was not required to and has not issued a report concerning the effectiveness of our internal control over financial reporting as of April 30, 2011.F-2

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

Neologic Animation Inc. (formerly Narnia Corp.) (A Development Stage Company) Statements of Operations
		Year Ended April 30, 2012	Year Ended April 30, 2011	From January 26, 2006 (inception) To April 30, 2012

Revenues		$ -	$ -	$ -

Operating expenses:
General and administrative		46,227	42,721	263,680
Impairment of mineral property costs		-	-	3,500
Loss from operations		(46,227)	(42,721)	(267,180)

Interest expense		3,550	650	4,200

Net loss		$ (49,777)	$ (43,371)	$ (271,380)

Net loss per share
Basic and diluted		$ (0.00)	$ (0.00)

Weighted average number of common shares outstanding:
	Basic and diluted	162,729,000	162,729,000

The ~~Company~~accompanying isnotes ~~currently~~are ~~engaged~~an ~~in the~~integral ~~review,~~part ~~documentation and remediation~~ of ~~its~~these ~~disclosure~~financial ~~controls and procedures~~statements. Once the Company is engaged in a business of merit and has sufficient personnel available, then our Board of Directors, in particular and in connection with the aforementioned deficiencies, will establish the following remediation measures:

1. Our Board of Directors will nominate an audit committee and audit committee financial expert. 2. We will appoint additional personnel to assist with the preparation of the Company’s financial statements; which will allow for proper segregation of duties, as well as additional manpower for proper documentation. 3. Our Board of Directors will appoint a member of management to act as the secondary authorized signatory on the Company’s bank account; to decrease the likelihood of misappropriation of the Company’s assets. 4. We will establish policies to ensure that all significant transactions resulting in nonF-~~standard journal entries are reviewed and approved by the Company’s Board of Directors and that approval be documented in the Company’s corporate records.~~3

ITEM 9B. OTHER INFORMATION

Neologic Animation Inc. (formerly Narnia Corp.) (A Development Stage Company) Statements of Cash Flows
			Year Ended April 30, 2012	Year Ended April 30, 2011	From January 26, 2006 (inception) to April 30, 2012

Cash Flows from Operating Activities
	Net loss		$ (49,777)	$ (43,371)	$ (271,380)
	Adjustments to reconcile net loss to net cash
	used in operating activities:
		Impairment of mineral property	-	-	3,500
		Donated services	6,000	6,000	37,500
		Donated rent	3,000	3,000	18,750
		Imputed interest	3,550	650	4,200
	Changes in operating assets and liabilities:
		Prepaid expenses	3,296	(3,500)	(204)
		Accounts payable and accrued liabilities	19,706	317	21,523
Net cash used in operating activities			(14,225)	(36,904)	(186,111)
Cash Flows from Investing Activities
	Purchase of mineral property		-	-	(3,500)
Net cash used in investing activities			-	-	(3,500)
Cash Flows from Financing Activities
	Advances from related party		-	7,000	46,554
	Proceeds from notes payable		14,000	28,500	42,500
	Proceeds from sales of common stock		-	-	100,910
Net cash provided by financing activities			14,000	35,500	189,964

Net increase (decrease) in cash			(225)	(1,404)	353

Cash, beginning of period			578	1,982	-

Cash, end of period			$ 353	$ 578	$ 353

Supplemental information:
	Interest paid		$ -	$ -	$ -
	Income taxes paid		-	-	-

Non-cash investing and financing activities:
	Capital contribution of shareholder loan		$ -	$ -	$ 25,554

~~None~~The accompanying notes are an integral part of these financial statements.

21F-4

PART III

Neologic Animation Inc. (formerly Narnia Corp.) (A Development Stage Company) Statement of Changes in Stockholders' Deficit For the period from January 26, 2006 (inception) to April 30, 2012
	Common Stock				Additional Paid-in		Donated		Deficit Accumulated During the Exploration
	Shares		Amount		Capital		Capital		Stage		Total
Balance, January 26, 2006 (inception)	-	$	-	$	-	$	-	$	-	$	-
Common shares issued for cash at $0.00001 per share	81,000,000		810		(800)		-		-		10
Donated rent and services	-		-		-		2,250		-		2,250
Net loss for the period	-		-		-		-		(6,062)		(6,062)
Balance, April 30, 2006	81,000,000		810		(800)		2,250		(6,062)		(3,802)
Common shares issued for cash at $0.011101 per share	81,729,000		817		100,083		-		-		100,900
Donated rent and services	-		-		-		9,000		-		9,000
Net loss for the year	-		-		-		-		(66,106)		(66,106)
Balance, April 30, 2007	162,729,000		1,627		99,283		11,250		(72,168)		39,992
Donated rent and services	-		-		-		9,000		-		9,000
Net loss for the year	-		-		-		-		(39,063)		(39,063)
Balance, April 30, 2008	162,729,000		1,627		99,283		20,250		(111,231)		9,929
Donated rent and services	-		-		-		9,000		-		9,000
Payable waived by former president	-		-		-		25,554		-		25,554
Net loss for the year	-		-		-		-		(39,813)		(39,813)
Balance, April 30, 2009	162,729,000		1,627		99,283		54,804		(151,044)		4,670
Donated rent and services	-		-		-		9,000		-		9,000
Net loss for the year	-		-		-		-		(27,188)		(27,188)
Balance, April 30, 2010	162,729,000		1,627		99,283		63,804		(178,232)		(13,518)
Donated rent and services	-		-		-		9,000		-		9,000
Imputed interest	-		-		650		-		-		650
Net loss for the year	-		-		-		-		(43,371)		(43,371)
Balance, April 30, 2011	162,729,000		1,627		99,933		72,804		(221,603)		(47,239)
Donated rent and services	-		-		-		9,000		-		9,000
Imputed interest	-		-		3,550		-		-		3,550
Net loss for the year	-		-		-		-		(49,777)		(49,777)
Balance, April 30, 2012	162,729,000	$	1,627	$	103,483	$	81,804	$	(271,380)	$	(84,466)

~~ITEM~~The ~~10.~~accompanying ~~DIRECTORS,~~notes ~~EXECUTIVE~~are ~~OFFICERS,~~an ~~PROMOTERS~~integral ~~AND~~part ~~CONTROL~~of ~~PERSONS;~~these ~~COMPLIANCE~~financial ~~WITH SECTION 16(a) OF THE EXCHANGE ACT~~statements.

~~Officers and Directors~~F-5

~~Each~~NEOLOGIC ofANIMATION ~~our directors serves until his or her successor is elected and qualified~~INC. Each of our officers is elected by the board of directors to a term of one (1) year and serves until his or her successor is duly elected and qualified, or until he or she is removed from office. The board of directors has no nominating, auditing or compensation committees.

~~The~~(Formerly ~~name,~~Narnia ~~address, age and position of our sole officer and director is set forth below:~~Corp.)

Name and Address	Age	Position(s)
Zhengyu Wang	42	president, principal executive officer, the chairman of the board of directors and member of the board of directors
Yongfu Zhu	42	treasurer, secretary, principal financial officer, principal accounting officer and member of the board of directors

(A Development Stage Company)

~~Mr.~~Notes ~~Wang~~to ~~and~~Financial ~~Mr. Zhu will serve until our next annual meeting of the stockholders. The Board of Directors elects officers and their terms of office are at the discretion of the Board of Directors.~~Statements

~~Background~~NOTE of1 ~~Officers~~– ~~and~~NATURE ~~Directors~~OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

~~Zhengyu~~Neologic ~~Wang~~Animation Inc. (the “Company”) was incorporated in the State of Nevada on January 26, ~~President~~2006. The Company is a Development Stage Company. The Company’s principal business is an educational software company in the People’s Republic of China. The Company is focused on educational software development and marketing; currently developing a website to be marketed as “Naniya World” for primary school students in China. The website’s goal is to educate children on how to develop and hone their creative skills through interactive educational games that incorporate Adobe Flash. The games incorporate a curriculum that has been developed by some of China’s top professors and child psychology experts. It sets itself apart from other after school programs in China because it deviates from the traditional methods of Chinese education. The Company’s mission is to inspire every child in China to become the best student they can possibly be by showing them that learning is fun.

On ~~January~~December 616, ~~2011~~2010, ~~Mr.~~the ~~Zhengyu Wang~~Company ~~was~~filed ~~appointed~~articles ~~president,~~of ~~principal~~merger ~~executive~~with ~~officer~~its ~~and~~wholly-owned ~~the~~subsidiary ~~Chairman~~to of change the ~~board~~Company’s ofname ~~directors.~~to ~~Since~~China ~~January~~Forest ~~1998,~~Energy MrCorp. ~~Wang~~and ~~has~~filed ~~been~~a ~~Chairman~~certificate of ~~Forest Group~~change ~~Co.,~~with ~~Ltd.,~~the Nevada Secretary of State to give effect to a ~~parent~~forward ~~company~~split of ~~China~~the ~~Forest~~Company’s ~~Bamboo~~authorized ~~Tec~~and ~~Co.,~~issued ~~Ltd.~~and ~~Since October~~outstanding ~~2002,~~shares ~~Mr.~~of ~~Wang~~common ~~has~~stock ~~been~~on ~~Chairman~~a ofnine ~~the~~(9) ~~Board~~new ~~and~~for ~~CEO~~one (1) old basis. Upon effect of ~~China~~the ~~Forest Bamboo~~forward ~~Tec~~stock ~~Co.~~split, ~~Ltd.~~the ~~His~~authorized ~~responsibilities~~capital ~~include~~increased ~~overseeing~~from ~~day-~~100,000,000 to~~-day operations~~ of900,000,000 ~~Zhejiang~~shares ~~Forest~~of ~~Bamboo~~common ~~Tec~~stock ~~Co.~~and, ~~Ltd.~~correspondingly, athe ~~company~~issued ~~that~~and ~~produces~~outstanding ~~and distributes~~increased ~~carbonized~~from ~~bamboo~~2,009,000 ~~for~~to a18,081,000 ~~variety~~shares of ~~purposes.~~common ~~Mr.~~stock, ~~Wang~~with is a ~~graduate of~~par ~~Zhejiang~~value ~~University~~of ~~(formerly~~$0.00001. ~~known~~The asCompany’s ~~Hangzhou~~preferred ~~University)~~stock inwas ~~Hangzhou, Zhejiang~~unaffected ~~Province,~~as ~~graduating~~a ~~with~~result aof ~~degree~~the inforward ~~Biology~~split. inThe ~~July~~Company’s ~~1990.~~financial ~~Mr.~~statements ~~Wang earned~~have anbeen ~~Executive~~retroactively ~~MBA~~restated ~~from~~to ~~Fudan~~incorporate ~~University~~the ineffect ~~Shanghai~~of inthe ~~June~~forward ~~2005~~split.

On January 12, 2011, the Company entered into share exchange agreement with Zhejiang Forest Bamboo Tec Co., Ltd. a People’s Republic of China corporation and Forest Energy Co., Ltd., a British Virgin Islands corporation. Forest Energy Co., Ltd. is the registered and beneficial owner of all of the issued and outstanding common shares in the capital of Sinoport Enterprises Limited, a British Virgin Islands corporation (“Sinoport”); Sinoport is the sole owner of all share capital of USCNHK Group Limited, a Hong Kong corporation, (“USCNHK”), and USCNHK is the owner of 95%, or 76,000,000 shares, of the share capital of Zhejiang Forest Bamboo Tec Co., Ltd. The Company has agreed to issue 15,919,000 common shares to the Forest Energy Co., Ltd.’s Shareholder as consideration for the purchase of 50,000 common shares of Zhejiang Forest Bamboo Tec Co., Ltd. Upon closing of the share exchange, Yongfu Zhu, ~~President~~one of the Company’s current officers and directors, will cancel 9,000,000 shares of the Company’s common stock held in his name and the Company will have no more than 25,000,000 shares of common stock issued and outstanding. As of November 22, 2011, this share exchange agreement has been terminated. According to the terms of the share exchange agreement, the Company had agreed to acquire 95% of the share capital of Zhejiang Forest from Forest Energy in exchange for 15,919,000 shares of Company’s common stock. The parties mutually agreed to terminate the agreement. There were no early termination penalties associated with the termination of the above agreement.

OnEffective ~~September~~January 525, ~~2008~~2012, ~~Mr.~~in ~~Yongfu Zhu~~accordance ~~was~~with ~~appointed~~approval ~~president,~~from ~~principal~~the ~~executive~~Financial ~~officer,~~Industry ~~treasurer,~~Regulatory ~~principal financial~~Authority ~~officer,~~(“FINRA”) ~~principal~~and ~~accounting~~the ~~officer~~U.S. Securities and ~~secretary.~~Exchange ~~Since August 2004~~Commission, Mrwe changed our name from China Forest Energy Corp. ~~Zhu~~to ~~has~~Narnia ~~been~~Corp. In ~~director~~addition, ~~president~~our issued and ~~chief~~outstanding ~~executive~~shares ~~officer~~ of ~~APEX Pacific~~common ~~International~~stock ~~Investments~~increased ~~Limited~~from 18,081,000 ashares ~~BVI~~of ~~company.~~common ~~Apex~~stock isto ~~engaged~~162,729,000 inshares ~~the business~~ of ~~international~~common ~~investments.~~stock, ~~Since~~par ~~September~~value ~~1998,~~of Mr$0.00001, ~~Zhu~~pursuant ~~has~~to ~~been~~a ~~an education~~1:9 ~~consultant~~forward ~~and~~split ~~instructor~~of ~~for~~our ~~Xinjian~~issued ~~Middle~~and ~~School~~outstanding ~~located~~shares inof ~~Zhejiang,~~common ~~China~~stock. Also Oneffective January 625, ~~2011~~2012, ~~Mr. Yongfu~~our ~~Zhu~~authorized ~~resignation~~capital asdecreased ~~Company’s~~from ~~President and CEO~~900,000,000 ~~Mr.~~shares ~~Zhu~~of ~~will~~common ~~remain~~stock ~~as Company’s~~to ~~director~~400,000,000 ~~CFO~~shares of common stock, ~~Treasurer~~par ~~and~~value ~~Secretary~~of $0.00001. Our preferred stock will remain unchanged.

22On May 7, 2012, the Company filed Articles of Merger with the Nevada Secretary of State to change the name from Narnia Corp. to Neologic Animation Inc. The name change became effective on May 11, 2012 upon approval from FINRA.

~~Involvement~~NOTE in2 ~~Certain~~– ~~Legal~~SUMMARY ~~Proceedings~~OF SIGNIFICANT ACCOUNTING POLICIES

~~None~~Basis of ~~our directors, executive officers, promoters or control persons has been involved in any of the following events during the past ten years:~~ Presentation

1.These Afinancial ~~petition~~statements ~~under~~and ~~the~~related ~~Federal~~notes ~~bankruptcy~~are ~~laws~~presented orin ~~any~~accordance ~~state insolvency~~with ~~law~~accounting ~~was~~principles ~~filed~~generally byaccepted orin ~~against,~~the orUnited ~~a receiver~~States, ~~fiscal~~and ~~agent~~are orexpressed ~~similar officer~~in ~~was~~U.S. ~~appointed~~dollars. byThe aCompany’s ~~court~~fiscal ~~for~~year-end ~~the~~is ~~business~~April or30. In ~~property~~May ~~of such person~~2012, ~~or any partnership in which he was a general partner at or within two years before~~ the ~~time~~Company ofchanged ~~such~~its ~~filing,~~year orend ~~any~~to ~~corporation~~December ~~or business association of which he was an executive officer at or within two years before the time of such filing;~~ 31.

~~2. Such person was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);~~F-6

3.Use ~~Such person was the subject~~ of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities:Estimates

iThe preparation of financial statements in conformity with U.S. ~~Acting~~generally asaccepted aaccounting ~~futures~~principles ~~commission~~requires ~~merchant,~~management ~~introducing~~to ~~broker,~~make ~~commodity~~estimates ~~trading~~and ~~advisor,~~assumptions ~~commodity~~that ~~pool~~affect ~~operator,~~the ~~floor~~reported ~~broker,~~amounts ~~leverage~~of ~~transaction~~assets ~~merchant,~~and ~~any~~liabilities ~~other~~and ~~person~~disclosure ~~regulated~~of bycontingent assets and liabilities at the ~~Commodity~~date ~~Futures~~of ~~Trading~~the ~~Commission,~~financial orstatements anand ~~associated~~the ~~person~~reported amounts of ~~any~~revenues ofand expenses during the ~~foregoing,~~reporting orperiod. asActual anresults ~~investment~~could ~~adviser,~~differ ~~underwriter,~~from ~~broker~~those orestimates. ~~dealer~~The inCompany ~~securities,~~regularly orevaluates asestimates anand ~~affiliated~~assumptions ~~person,~~related ~~director~~to ordonated ~~employee~~expenses ofand ~~any~~deferred ~~investment~~income ~~company,~~tax ~~bank~~asset valuation allowances. The Company bases its estimates and assumptions on current facts, ~~savings~~historical experience and ~~loan~~various ~~association~~other orfactors ~~insurance~~that ~~company~~it believes to be reasonable under the circumstances, orthe ~~engaging~~results inof orwhich ~~continuing~~form ~~any~~the ~~conduct~~basis orfor ~~practice~~making injudgments ~~connection~~about ~~with~~the ~~such~~carrying ~~activity~~values ~~ii.~~of ~~Engaging~~assets inand ~~any~~liabilities ~~type~~and the accrual of ~~business~~costs ~~practice;~~and orexpenses ~~iii.~~that ~~Engaging~~are innot ~~any~~readily ~~activity~~apparent infrom ~~connection~~other ~~with~~sources. The actual results experienced by the ~~purchase~~Company ormay ~~sale~~differ ofmaterially ~~any~~and ~~security~~adversely orfrom ~~commodity~~the orCompany’s inestimates. ~~connection~~To ~~with~~the ~~any~~extent ~~violation~~there ofare ~~Federal~~material ordifferences ~~State~~between ~~securities~~the ~~laws~~estimates orand ~~Federal~~the ~~commodities~~actual ~~laws;~~results, future results of operations will be affected.

4.Earnings Such person was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (fLoss)~~(3)(i) of~~ ~~this~~Per ~~section, or to be associated with persons engaged in any such activity;~~Share

5.Basic ~~Such~~EPS ~~person~~is ~~was~~computed ~~found~~by dividing earnings (loss) available to common shareholders (numerator) by athe ~~court~~weighted average number of ~~competent~~shares ~~jurisdiction in~~outstanding a(denominator) ~~civil~~during ~~action~~the orperiod. byDiluted ~~the~~EPS ~~Commission~~gives effect to ~~have~~all ~~violated~~dilutive ~~any~~potential ~~Federal~~common orshares ~~State securities~~outstanding ~~law,~~during the period using the treasury stock method for options and warrants and the ~~judgment~~if-converted method for convertible preferred stock and convertible debt. In computing diluted EPS, the average stock price for the period is used in ~~such~~determining ~~civil~~the ~~action~~number orof ~~finding~~shares byassumed to be purchased from the ~~Commission~~ ~~has~~exercise ~~not~~of ~~been~~stock ~~subsequently~~options ~~reversed~~or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. In periods where losses are reported, ~~suspended~~the weighted-average number of common shares outstanding excludes common stock equivalents, orbecause ~~vacated;~~their inclusion would be anti-dilutive. The Company does not have any diluted financial instrument outstanding as of April 30, 2012.

6.Cash ~~Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law,~~ and ~~the~~Cash ~~judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;~~Equivalents

23The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

7.Foreign ~~Such~~Currency person was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:Translation

i.The ~~Any~~Company’s ~~Federal~~functional orand ~~State~~reporting ~~securities~~currency oris ~~commodities~~the ~~law~~United orStates ~~regulation;~~dollar. orOccasional iitransactions may occur in a foreign currency. ~~Any~~Monetary ~~law~~assets orand ~~regulation~~liabilities ~~respecting~~denominated ~~financial~~in ~~institutions~~foreign orcurrencies ~~insurance~~are ~~companies~~translated ~~including,~~using ~~but~~the ~~not~~exchange ~~limited~~rate ~~to,~~prevailing aat ~~temporary~~the orbalance ~~permanent~~sheet ~~injunction,~~date. ~~order~~Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of ~~disgorgement~~exchange orin ~~restitution,~~effect ~~civil~~at ~~money~~the ~~penalty~~date orof ~~temporary~~the ortransaction. ~~permanent~~Average ~~cease-and-desist~~monthly ~~order,~~rates orare ~~removal~~used orto ~~prohibition~~translate ~~order;~~revenues orand ~~iii~~expenses. ~~Any~~Gains ~~law~~and orlosses ~~regulation~~arising ~~prohibiting~~on ~~mail~~translation or ~~wire~~settlement ~~fraud~~of foreign currency denominated transactions or ~~fraud~~balances inare ~~connection~~included ~~with~~in ~~any~~the ~~business~~determination ~~entity;~~of orincome.

8.Income Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.Taxes

~~Committees~~Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the ~~Board~~years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.

~~All~~Subsequent proceedings of our board of directors were conducted by resolutions consented to in writing by all the directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution at a meeting of the directors are, according to the corporate laws of the state of Nevada and the bylaws of our company, as valid and effective as if they had been passed at a meeting of the directors duly called and held. Events

~~Audit~~The ~~Committee~~Company ~~and~~evaluated ~~Charter~~subsequent events through August 14, 2012, which is the date the financial statements were issued.

~~Currently~~Recent ~~our~~Accounting ~~audit committee consists of our entire board of directors. We have determined that we do not have a member of the audit committee in the capacity as an independent director.~~ Pronouncements

~~Our~~The ~~board~~Company does not expect the adoption of ~~directors,~~any ~~acting~~other asrecently ~~our~~issued ~~audit~~accounting ~~committee,~~pronouncements ~~is governed~~to byhave ana ~~Audit~~significant ~~Committee~~effect ~~Charter~~on ~~adopted~~its byfinancial ~~our~~position ~~board~~or results of ~~directors~~operations.

~~Nominating~~NOTE ~~Committee~~3 ~~and~~– ~~Charter~~GOING CONCERN

WeThese ~~currently~~financial dostatements ~~not~~ have ~~nominating~~been ~~committee~~prepared oron ~~other committees~~a ~~performing~~going ~~similar~~concern ~~functions~~basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. ~~There~~Since inception, the Company has not ~~been~~generated revenues and has not paid any ~~defined~~dividends ~~policy~~ and is unlikely to either pay dividends or ~~procedure~~generate ~~requirements~~revenues ~~for~~in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to ~~submit~~obtain ~~recommendations~~necessary ~~or nomination~~equity ~~for~~financing, ~~directors.~~the Company’s success in acquiring interests in properties that have economically recoverable reserves, and the

~~Audit Committee and Audit Committee Financial Expert~~F-7

~~Our~~ attainment ~~board~~ of ~~directors~~profitable ~~has~~operations. ~~determined~~As ~~that~~at ~~none~~April of30, 2012, the ~~members of~~Company ~~our~~has ~~audit~~a ~~committee~~working ~~qualifies~~capital asdeficit, angenerated ~~"audit~~no ~~committee~~revenues ~~financial~~since ~~expert"~~inception, ~~as defined~~and inhas ~~Item~~an ~~407(d)(5)(ii)~~accumulated ofdeficit ~~Regulation~~totaling ~~S-K~~$271,380 ~~and~~since isinception. ~~"independent"~~These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the ~~term~~ isrecoverability ~~used~~and inclassification ~~Item~~of ~~7(d)(3)(iv)~~recorded asset amounts and classification of ~~Schedule~~liabilities ~~14A~~that ~~under~~might be necessary should the ~~Securities~~Company ~~Exchange Act~~be ofunable ~~1934,~~to continue as ~~amended~~a going concern.

24NOTE 4 – RELATED PARTY TRANSACTIONS

WeAs ~~believe that the members~~ of ~~our~~April ~~board~~30, of2012 ~~directors are collectively capable of analyzing~~ and ~~evaluating~~2011, ~~our~~the ~~financial~~Company ~~statements~~was ~~and understanding~~indebted ~~internal~~to ~~controls~~a ~~and~~current ~~procedures for financial reporting. We believe that retaining an independent~~ director, ~~who~~a ~~would~~current ~~qualify~~CFO, asthe anTreasurer ~~"audit committee financial expert" would be overly costly~~ and ~~burdensome~~Secretary ~~and~~of isthe ~~not warranted~~Company in ~~our circumstances given~~ the ~~early~~amount ~~stages~~ of ~~our~~$21,000 ~~development~~ and ~~the fact that we have not generated any material revenues to date. In addition~~$21,000, ~~we currently do not have nominating~~respectively, ~~compensation~~representing orcash ~~committees~~advances ~~performing~~and ~~similar functions~~expenses ~~nor~~paid doon webehalf ~~have~~of athe ~~written nominating, compensation~~Company. ~~Our~~The ~~board~~balances consist of ~~directors~~ ~~does~~advances ~~not believe~~ that itare isnon-interest ~~necessary~~bearing, tounsecured ~~have~~and ~~such~~due ~~committees~~on ~~because it believes the functions of such committees can be adequately performed by our board of directors~~demand.

~~Code~~During ofthe ~~Ethics~~years ended April 30, 2012 and 2011, the Company recognized $3,000 and $3,000, respectively, for donated rent and $6,000 and $6,000, respectively, for donated services. These amounts were charged to operations and recorded as additional paid-in capital.

WeNOTE ~~have~~5 ~~adopted~~– aNOTE corporate code of ethics. We believe our code of ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations; and provide accountability for adherence to the code.PAYABLE

~~Disclosure~~On ~~Committee~~December 20, 2010, the Company obtained a loan with a principal balance $16,565 from an unrelated party. The loan is non-interest bearing, unsecured and ~~Charter~~due on demand.

WeOn ~~have~~April a1, ~~disclosure~~2011, ~~committee and~~the ~~disclosure~~Company ~~committee~~obtained ~~charter.~~a ~~The~~loan ~~disclosure~~with ~~committee~~a isprincipal ~~comprised~~balance of ~~all of~~$4,500 ~~our~~from ~~officers~~an ~~and~~unrelated ~~directors~~party. The ~~purpose~~loan ~~of the committee~~ is tonon-interest provide assistance to the Chief Executive Officer and the Chief Financial Officer in fulfilling their responsibilities regarding the identification and disclosure of material information about us and the accuracybearing, ~~completeness~~unsecured and ~~timeliness~~due ~~of our~~on ~~financial reports~~demand.

~~Compliance~~On ~~with~~April ~~Section~~13, ~~16(~~2011, the Company obtained a) ofloan ~~the~~with ~~Securities~~a ~~Exchange~~principal ~~Act~~ balance of ~~1934~~$4,435 from an unrelated party. The loan is non-interest bearing, unsecured and due on demand.

~~Section~~On ~~16(a)~~April of30, 2011, the ~~Securities~~Company ~~Exchange~~obtained ~~Act~~a ofloan ~~1934 requires our executive officers and directors and persons who own more than 10% of our common stock to file~~ with ~~the~~a ~~Securities~~principal ~~and~~balance ~~Exchange Commission initial statements~~ of ~~beneficial ownership~~$3,000 ~~reports~~from ofan ~~changes~~unrelated inparty. ~~ownership~~The ~~and~~loan ~~annual reports~~is ~~concerning~~non-interest ~~their~~bearing, ~~ownership~~unsecured ~~of our common stock~~ and ~~other~~due ~~equity securities,~~ on ~~Forms 3, 4 and 5 respectively~~demand. ~~Executive officers, directors and greater than 10% shareholders are required by the SEC regulations to furnish us with copies of all Section 16(a) reports that they file.~~

~~Based~~On ~~solely~~August on15, ~~our~~2011, ~~review of~~ the ~~copies~~Company ofobtained ~~such~~a ~~forms~~loan ~~received by~~with ~~us,~~a orprincipal ~~written~~balance ~~representations~~of ~~from certain reporting persons~~$5,000 wefrom ~~believe that~~an ~~during~~unrelated ~~fiscal~~party. ~~year~~The ~~ended~~loan ~~April~~is ~~30,~~non-interest ~~2011~~bearing, ~~all~~unsecured ~~filing requirements applicable to our officers, directors~~ and ~~greater~~due ~~than~~on ~~10% percent beneficial owners were complied with, with the exception of the following:~~demand.

Name	Number of Late Reports	Number of Transactions Not Reported on a Timely Basis	Failure to File Required Forms
Zhengyu Wang	1(1)	1	N/A
Yongfu Zhu	1(1)	1	N/A

On September 9, 2011, the Company obtained a loan with a principal balance of $5,000 from an unrelated party. The loan is non-interest bearing, unsecured and due on demand.

~~(1)~~On ~~The~~April ~~director~~9, or2012, ~~officer~~the ~~was~~Company ~~late~~obtained ~~filing~~a loan with a ~~Form~~principal 3balance of $1,500 ~~Initial~~from ~~Statement~~an ofunrelated ~~Beneficial~~party. ~~Ownership~~The loan is non-interest bearing, unsecured and due on demand.

25 On April 30, 2012, the Company obtained a loan with a principal balance of $2,500 from an unrelated party. The loan is non-interest bearing, unsecured and due on demand.

~~ITEM~~As 11of April 30, 2012 and 2011, the Company had non-interest bearing loans totaling $42,500 and $28,500, respectively. ~~EXECUTIVE~~These ~~COMPENSATION~~loans are unsecured and due on demand. During the years ended April 30, 2012 and 2011, the Company recorded imputed interest in the amount of $3,550 and $650, respectively, on these non-interest bearing loans and recorded as additional paid-in capital.

~~The~~NOTE ~~particulars~~6 of– ~~the~~SUBSEQUENT ~~compensation paid to the following persons:~~EVENTS

	º	our principal executive officer;
	º	each of our two most highly compensated executive officers who were serving as executive officers at the end of the years ended April 30, 2011 and 2010; and
	º	up to two additional individuals for whom disclosure would have been provided under (b) but for the fact that the individual was not serving as our executive officer at the end of the years ended April 30, 2011 and 2010,
who we will collectively refer to as the named executive officers of our company, are set out in the following summary compensation table, except that no disclosure is provided for any named executive officer, other than our principal executive officers, whose total compensation did not exceed US$100,000 for the respective fiscal year:

On May 7, 2012, the Company filed Articles of Merger with the Nevada Secretary of State to change the name from Narnia Corp. to Neologic Animation Inc. The name change became effective on May 11, 2012 upon approval from FINRA.

On May 14, 2012, the Company issued 100,000,000 shares of common stock in exchange for all 50,000 shares held by shareholders of Full East International Limited (“Full East”). Neologic cancelled 77,729,000 shares of common stock held by Yongfu Zhu, our former Chief Financial Officer.

SUMMARY COMPENSATION TABLE
Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensa- tion ($)	Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)	All Other Compensa- tion ($)	Total ($)
Zhengyu Wang(1) President, Chief Executive Officer, Chairman and Director	2011 2010	Nil N/A	Nil N/A	Nil N/A	Nil N/A	Nil N/A	Nil N/A	Nil N/A	Nil N/A
Yongfu Zhu(2) Chief Financial Officer, Treasurer, Secretary and Director and Former President, and Chief Executive Officer	2011 2010	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil

F-8

(1)	Mr. Wang was appointed president, chief executive officer and director of our company on January 6, 2011.
(2)	Mr. Zhu was appointed president, chief executive officer, chief financial officer, treasurer, secretary and director on September 5, 2008 and resigned from his position as president and chief executive officer on January 6, 2011.

As a result of the share exchange above, the Company acquired Full East. Through its subsidiaries, Full East provides a range of goods and services in the areas of information technology and interactive education. Full East was incorporated in the British Virgin Islands on May 4, 2011. It has the expertise in the business of providing advisory and services in developing, marketing, and distributing educational cards used as a tool to educate children through the means of online games.

~~Other~~Full ~~than~~East ashas ~~set~~one ~~out~~wholly ~~below~~owned subsidiary, ~~there~~Hangzhou ~~are~~Naniya noTechnology ~~arrangements~~Co., ~~or plans~~Ltd. ~~in which we provide pension~~(“Naniya”), ~~retirement~~a orwholly-owned ~~similar~~foreign ~~benefits~~enterprise ~~for directors~~(“WOFE”) orestablished ~~executive~~on ~~officers.~~July ~~Our~~7, ~~directors~~2011, and ~~executive~~organized ~~officers~~under ~~may receive share options at~~ the ~~discretion~~laws of ~~our~~the ~~board~~People’s Republic of ~~directors~~China in (the ~~future~~“PRC”). We doNaniya's ~~not~~main ~~have~~business ~~any~~is ~~material~~information ~~bonus~~technology orconsulting, ~~profit~~technology ~~sharing~~project ~~plans~~planning, ~~pursuant~~and ~~to which~~outcome ~~cash~~of orthe transfer; non-~~cash~~cultural ~~compensation~~education isand ortraining ~~may~~for beadults; ~~paid~~computer tohardware, ~~our~~electronic ~~directors~~products, ~~or executive~~technology ~~officers~~development, ~~except~~technical ~~that~~services ~~share~~and ~~options~~technical ~~may be granted at the discretion of our board of directors~~advice.

26Full East also holds a controlling contractual interest in Hangzhou Xuerun Education & Technology, Ltd. (“Xuerun”). Xuerun was incorporated in the City of Hangzhou, Province of Zhejiang, PRC on July 5, 2011. Xuerun's main business is the creation of online educational games for students who are in primary school and middle school in China and is in the development and creation of a website to educate children how to develop and hone their creative skills through interactive educational games that incorporate Adobe Flash. The games incorporate a curriculum that has been developed by some of China’s top professors and child psychology experts. It sets itself apart from other after school programs in China because it deviates from the traditional methods of Chinese education, which rely heavily on repetition and memorization, causing children to act in a generally conformist manner and to have similar thought processes. By stimulating the child’s thought processes; the child’s attention is focused on the subject at hand.

~~Stock Option Plan~~F-9

ToPRO ~~date,~~FORMA weCOMBINED ~~have~~FINANCIAL ~~not~~STATEMENTS ~~adopted a stock option plan.~~(UNAUDITED)

~~2011~~On ~~Grants~~May 14, 2012, Neologic Animation Inc. (formerly Narnia Corp.) (“Neologic”) issued 100,000,000 shares of ~~Plan-Based~~common ~~Awards~~stock in exchange for all 50,000 shares held by the shareholders of Full East International Limited (“Full East”). Neologic cancelled 77,729,000 shares of common stock held by Yongfu Zhu.

~~There~~The ~~were~~following nounaudited ~~equity~~pro orforma ~~non-equity~~combined ~~awards~~financial ~~granted~~statements and related notes are presented to show the ~~named executives~~effects inof the acquisition of the reverse merger by Neologic with Full East. The unaudited pro forma combined balance sheet and the unaudited pro forma combined statement of operations are derived from the consolidated financial statements of Neologic as of April 30, 2012 and for the year then ended and Full East as of March 31, 2012 and the period from May 4, 2011 (inception) to March 31, 2012. The unaudited pro forma combined balance sheet is presented as if the merger had occurred as of April 30, 2012 (Neologic’s fiscal year-end). The unaudited pro forma combined statement of operations is presented as if the merger had occurred at the beginning of Neologic Corp.’s 2012 fiscal year.

~~Outstanding~~The ~~Equity~~pro ~~Awards~~forma atcombined ~~Fiscal~~balance ~~Year~~sheet ~~End~~and statement of operations are presented for informational purposes only and are not necessarily indicative of the results of operations that actually would have been achieved had the sale been consummated as of that time, nor is it intended to be a projection of future results. The unaudited pro forma combined financial information, including the notes thereto, should be read in conjunction with (1) the financial statements of Neologic Animation Inc. included herein, and (2) the accompanying unaudited financial statements of Full East International Ltd.

~~There were no outstanding equity awards as at April 30, 2011.~~ F-10

~~Option~~Neologic ~~Exercises~~Animation ~~and~~Inc.(formerly ~~Stock~~Narnia ~~Vested~~Corp.)Pro Forma Combined Balance Sheet(Unaudited)

During our fiscal year ended April 30, 2011, there were no options exercised by our named officers.

		Neologic Animation Inc. as of April 30, 2012		Full East as of March 31, 2012		Pro forma Adjustments			Pro forma Combined
Assets
Current Assets:
Cash and cash equivalents	$	353	$	1,971	$	–		$	2,324
Prepaid expenses		204		–		–			204
Total Assets	$	557	$	1,971	$	–		$	2,528

Liabilities and Shareholders' Equity (Deficit)
Current Liabilities:
Accounts payable	$	21,523	$	–	$	–		$	21,523
Note payable		42,500		–		–			42,500
Due to related parties		21,000		1,771		–			22,771
Total Liabilities		85,023		1,771		–			86,794

Stockholders' Equity (Deficit)
Preferred stock, $0.00001 par value; 100,000,000 shares authorized, none issued and outstanding		–		–		–
Common stock, $0.00001 par value, 400,000,000 shares authorized, 162,729,000 shares issued and outstanding		1,627		50,000		(777)	(a)		1,850
						1,000	(b)
						(50,000)	(c)
Additional paid-in capital (deficit)		185,287		16,652		777	(a)		(69,664)
						(1,000)	(b)
						(271,380)	(d)
Subscription receivable		–		(50,000)		50,000	(c)		–
Accumulated other comprehensive income		–		21					21
Accumulated deficit		(271,380)		(16,473)		271,380	(d)		(16,473)
Total Stockholders' Equity (Deficit)		(84,466)		200		–			(84,266)
Total Liabilities & Stockholders' Equity (Deficit)	$	557	$	1,971	$	–		$	2,528

~~Compensation~~Notes ofto ~~Directors~~pro forma combined financial statements

We(a) To dorecord ~~not~~the ~~have~~cancellation ~~any~~of ~~agreements for compensating our directors for their services in their capacity as directors~~77,729,000 ~~although such directors are expected in the future to receive stock options to purchase~~ shares of ~~our~~Neologic common stock asheld ~~awarded~~ by ~~our~~Yongfu ~~board of directors~~Zhu.

~~Pension~~(b) To record 100,000,000 ~~Retirement~~shares orof ~~Similar~~common ~~Benefit~~stock ~~Plans~~issued to previous owners of Full East.

~~There~~(c) To ~~are~~reverse nothe ~~arrangements~~subscription orreceivable ~~plans~~from inFull ~~which~~East weshareholders ~~provide~~after pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the ~~discretion~~share ~~of the board of directors or a committee thereof~~exchange.

~~Indebtedness~~(d) To ofeliminate ~~Directors,~~accumulated ~~Senior~~deficit ~~Officers,~~of ~~Executive Officers and Other Management~~ Neologic.

None of our directors or executive officers or any associate or affiliate of our company during the last two fiscal years, is or has been indebted to our company by way of guarantee, support agreement, letter of credit or other similar agreement or understanding currently outstanding.F-11

~~Family~~Neologic ~~Relationships~~Animation Inc.(formerly Narnia Corp.)Pro Forma Combined Statement of Operations(Unaudited)

There are no family relationships between any of our executive officers or directors.

		Neologic Animation Inc. for the year ended April 30, 2012		Full East from May 4, 2011 (inception) to March 31, 2012		Pro forma Adjustments			Pro forma Combined

Revenue	$	–	$	–	$	–		$	–
Cost of revenue		–		–		–			–
Gross profit		–		–		–			–

Operating expenses
General and administrative		46,227		16,478		–			62,705
Total operating expenses		46,227		16,478		–			62,705

Operating loss		(46,227)		(16,478)		–			(62,705)

Other income (expense):
Interest income		–		5		–			5
Interest expense		(3,550)		–		–			(3,550)
Total other income (expense)		(3,550)		5		–			(3,545)

Net loss	$	(49,777)	$	(16,473)	$	–		$	(66,250)

Other comprehensive income (loss):
Foreign currency translation		–		21		–			21
Total comprehensive loss	$	(49,777)	$	(16,452)	$	–		$	(66,229)


Loss per share - basic and diluted	$	(0.00)	$					$	(0.00)
Weighted-average shares outstanding - basic and diluted		162,729,000				(77,729,000) 100,000,000	(a) (b)		185,000,000

~~ITEM~~Notes ~~12.~~to ~~SECURITY~~pro ~~OWNERSHIP~~forma OFcombined ~~CERTAIN~~financial ~~BENEFICIAL OWNERS AND MANAGEMENT~~statements

~~The~~(a) To ~~following~~record ~~table~~the ~~sets~~cancellation ~~forth, as~~ of ~~July 29~~77, ~~2011~~729,000 ~~certain information with respect to the beneficial ownership of our common~~ shares ~~by each shareholder known by us to be the beneficial owner~~ of ~~more~~Neologic ~~than 5% of our~~ common ~~shares,~~stock asheld ~~well as~~ by ~~each~~Yongfu ~~of our current directors and executive officers as a group~~Zhu. Each person has sole voting and investment power with respect to the shares of common stock, except as otherwise indicated. Beneficial ownership consists of a direct interest in the shares of common stock, except as otherwise indicated.

27(b) To record 100,000,000 shares of common stock issued to previous owners of Full East.

Name and Address of Beneficial Owner	Amount and Nature of Beneficial Ownership	Percentage of Class(1)
Zhengyu Wang #41 Huangcheng Road Xinjian Township Jinyun County Zhejiang, P.R. China	Nil	0%
Yongfu Zhu #41 Huangcheng Road Xinjian Township Jinyun County Zhejiang, P.R. China	9,810,000	54.25%
Directors and Officers as a Group		54.25%

F-12

(1)Item Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares9. CertainChanges sharesin may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and onlyDisagreements such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respectAccountants to the number of shares of common stock actually outstanding on JulyAccounting 29, 2011. As of July 29, 2011, there were 18,081,000 shares of our company’s common stock issued and outstanding.Financial Disclosure

~~Changes~~There inwere ~~Control~~no disagreements with our accountants related to accounting principles or practices, financial statement disclosure, internal controls or auditing scope or procedure during the two fiscal years and subsequent interim periods.

WeItem are unaware of any contract or other arrangement or provisions of our Articles or Bylaws the operation of which may at a subsequent date result in a change of control of our company9A. ThereControls areand not any provisions in our Articles or Bylaws, the operation of which would delay, defer, or prevent a change in control of our company.Procedures

~~ITEM~~Evaluation ~~13.~~of ~~CERTAIN~~Disclosure ~~RELATIONSHIPS~~Controls ~~AND~~and ~~RELATED TRANSACTIONS~~Procedures

We ~~currently~~maintain ~~act~~disclosure ~~with~~controls ~~two~~and ~~directors~~procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, ~~consisting~~as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president (our principal executive officer) and our chief financial officer (our principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of ~~Zhengyu~~achieving ~~Wang~~ the desired control objectives, and ~~Yongfu~~our ~~Zhu~~management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

WeAs ~~have~~of ~~determined~~April ~~that~~30, we2012, dothe ~~not~~end ~~have~~of ~~independent~~our ~~directors~~fiscal year covered by this report, as ~~that~~we ~~term~~carried isout ~~used~~an inevaluation, ~~Rule~~under ~~4200~~the supervision and with the participation of our president (aour principal executive officer) and our chief financial officer (15our principal financial officer and principle accounting officer), of the ~~Rules~~effectiveness of ~~National~~the ~~Association~~design and operation of ~~Securities~~ ~~Dealers~~our disclosure controls and procedures. Based on the foregoing, our president (our principal executive officer) and our chief financial officer (our principal financial officer and principle accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this annual report.

~~Currently~~Management’s ~~our~~Report ~~audit~~on ~~committee~~Internal ~~consists~~Control ofover ~~our~~Financial ~~entire~~Reporting board of directors. We currently do not have nominating, compensation committees or committees performing similar functions. There has not been any defined policy or procedure requirements for shareholders to submit recommendations or nomination for directors.

Our ~~board~~management ofis ~~directors~~responsible ~~has~~for ~~determined~~establishing ~~that~~and ~~none~~maintaining adequate internal control over financial reporting. Under the supervision and with the participation of our ~~directors~~ ~~qualify~~management, asincluding our president and chief financial officer, we conducted an ~~“audit~~evaluation ~~committee~~of the effectiveness of our internal control over financial ~~expert”~~reporting as ~~defined~~of inApril 30, 2012 ~~as defined~~using the criteria established in ~~Item~~Internal ~~407(d)(5)(ii)~~Control—Integrated Framework issued by the Committee of ~~Regulation~~Sponsoring ~~S-K~~Organizations of the Treadway Commission (COSO).

28A 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 our 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 April 30, 2012, our company determined that there were control deficiencies that constituted material weaknesses, as described below.

~~From~~1. We ~~inception~~do tonot ~~present~~employ ~~date,~~an weAudit ~~believe~~Committee ~~that~~– ~~the~~While ~~members~~not ~~of our~~being legally obligated to have an audit committee, ~~and~~it ~~the~~is ~~board~~management’s ofview ~~directors~~that ~~have~~such ~~been~~a ~~and~~committee, ~~are~~including ~~collectively capable~~a offinancial ~~analyzing~~expert ~~and~~member, ~~evaluating~~is ~~our~~an ~~financial~~utmost ~~statements~~important ~~and~~entity ~~understanding internal~~level ~~controls~~control ~~and~~over ~~procedures~~our ~~for~~company’s financial ~~reporting~~statements.

~~ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES~~23

~~(1)~~2. Dual ~~Audit~~signatures ~~Fees~~of cheques – we only have one cheque signing authority. Management feels that the lack of dual signatures on cheques can increase the likelihood of misappropriation of assets given the fact that there is only one person with signing authority.

~~The~~3. We ~~aggregate~~did ~~fees~~not ~~billed~~maintain ~~for each~~proper segregation of duties for the ~~last~~preparation ~~two~~of ~~fiscal~~our ~~years~~financial ~~for~~statements ~~professional~~– ~~services~~As ~~rendered~~of byApril 30, 2012, the ~~principal~~ ~~accountant~~majority ~~for~~of ~~our~~the ~~audit~~preparation of ~~annual~~ financial statements ~~and~~was ~~review~~carried ~~of financial~~out ~~statements~~by ~~included~~one inperson. ~~our~~In ~~Form~~addition, ~~10-Qs~~our orcompany ~~services~~currently ~~that~~only ~~are~~has ~~normally provided~~one byofficer ~~the~~and ~~accountant~~director inhaving ~~connection~~oversight ~~with~~on ~~statutory~~all ~~and~~transactions. ~~regulatory~~This ~~filings or~~has ~~engagements~~resulted ~~for~~in ~~those~~several ~~fiscal~~deficiencies ~~years was~~including:

2011	$ 0	Kempisty & Company CPA, P.C.
2010	$ 3,000	Kempisty & Company CPA, P.C.
2011	$ 5,000	GBH CPAs, PC
2010	$ 6,500	GBH CPAs, PC

a) Significant, non-standard journal entries were prepared and approved by the same person, without being checked or approved by any other personnel within our company. In addition, approval of significant transactions was not documented as approved by our company’s board of directors.

(2b) Lack ~~Audit-Related~~of ~~Fees~~control over preparation of financial statements and proper application of accounting policies. Accordingly, our 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.

~~The~~As ~~aggregate~~a ~~fees~~result ~~billed in each~~ of the ~~last~~material ~~two~~weaknesses ~~fiscal~~described ~~years~~above, ~~for~~management ~~assurance~~has ~~and~~concluded ~~related~~that ~~services by~~ the ~~principal accountants~~Company ~~that~~did ~~are~~not ~~reasonably~~maintain ~~related~~effective tointernal ~~the~~control ~~performance~~over offinancial ~~the~~reporting ~~audit~~as ~~or review~~ of ~~our~~April ~~financial~~30, ~~statements~~2012 ~~and~~based ~~are~~on ~~not~~criteria ~~reported~~established in ~~the~~Internal ~~preceding paragraph:~~Control—Integrated Framework issued by COSO.

2011	$ 0	Kempisty & Company CPA, P.C.
2010	$ 0	Kempisty & Company CPA, P.C.
2011	$ 0	GBH CPAs, PC
2010	$ 0	GBH CPAs, PC

GBH, CPAs, PC, acts as our independent registered public accounting firm, was not required to and has not issued a report concerning the effectiveness of our internal control over financial reporting as of April 30, 2012.

~~(3)~~Continuing ~~Tax~~Remediation ~~Fees~~Efforts to address deficiencies in Company’s Internal Control over Financial Reporting. Our company is currently engaged in the review, documentation and remediation of its disclosure controls and procedures. Once our company is engaged in a business of merit and has sufficient personnel available, then our board of directors, in particular and in connection with the aforementioned deficiencies, will establish the following remediation measures:

~~The~~1. Our ~~aggregate~~board ~~fees billed in each~~ of ~~the~~directors ~~last~~will ~~two~~nominate ~~fiscal~~an ~~years~~audit ~~for~~committee ~~professional services rendered by the principal accountant for tax compliance, tax advice,~~ and ~~tax~~audit ~~planning~~committee ~~was:~~financial expert.

2011	$ 0	Kempisty & Company CPA, P.C.
2010	$ 0	Kempisty & Company CPA, P.C.
2011	$ 0	GBH CPAs, PC
2010	$ 0	GBH CPAs, PC

2. We will appoint additional personnel to assist with the preparation of our company’s financial statements; which will allow for proper segregation of duties, as well as additional manpower for proper documentation.

~~(4)~~3. Our ~~All~~board ~~Other~~of ~~Fees~~directors will appoint a member of management to act as the secondary authorized signatory on our company’s bank account; to decrease the likelihood of misappropriation of our company’s assets.

~~The~~4. We ~~aggregate~~will ~~fees~~establish ~~billed~~policies into ~~each of~~ensure ~~the~~that ~~last~~all ~~two~~significant ~~fiscal~~transactions ~~years~~resulting ~~for~~in ~~the~~non-standard ~~products~~journal ~~and~~entries ~~services~~are ~~provided~~reviewed and approved by ~~the principal~~our ~~accountant,~~company’s ~~other~~board ~~than~~of ~~the~~directors ~~services~~and ~~reported~~that inapproval ~~paragraphs~~be ~~(1),~~documented ~~(2), and~~in ~~(3)~~our ~~was:~~company’s corporate records.

2011	$ 0	Kempisty & Company CPA, P.C.
2010	$ 0	Kempisty & Company CPA, P.C.
2011	$ 0	GBH CPAs, PC
2010	$ 0	GBH CPAs, PC

29 Inherent limitations on effectiveness of controls

~~(5)~~Internal ~~Our~~control ~~audit~~over ~~committee’s pre-approval~~financial ~~policies~~reporting has inherent limitations which include but is not limited to the use of independent professionals for advice and ~~procedures~~guidance, ~~described~~interpretation inof ~~paragraph~~existing ~~(c)(7)(i)~~and/or changing rules and principles, segregation of ~~Rule 2-01~~management duties, scale of ~~Regulation~~organization, ~~S-X~~and ~~were~~personnel ~~that~~factors. Internal control over financial reporting is a process which involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis, however these inherent limitations are known features of the ~~audit~~financial ~~committee~~reporting ~~pre-approve~~process ~~all~~and ~~accounting related~~it ~~activities~~is ~~prior~~possible to design into the ~~performance~~process safeguards to reduce, though not eliminate, this risk. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any ~~services~~evaluation byof ~~any~~effectiveness ~~accountant~~to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or ~~auditor~~ that the degree of compliance with the policies or procedures may deteriorate.

~~(6)~~Changes ~~The~~in ~~percentage~~Internal ofControl ~~hours expended~~over onFinancial the principal accountant’s engagement to audit our financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full time, permanent employees was 0%. Reporting

~~PART~~There IVhave been no changes in our internal controls over financial reporting that occurred during the three month year ended April 30, 2012 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

ITEMItem 159B. EXHIBITS,Other FINANCIAL STATEMENT SCHEDULES.Information

Exhibit	Description
No.
(3)	Articles of Incorporation and Bylaws
3.1	Articles of Incorporation (incorporated by reference to our Registration Statement on Form SB-2 filed on August 17, 2006)
3.2	Bylaws (incorporated by reference to our Registration Statement on Form SB-2 filed on August 17, 2006)
3.3	Articles of Merger (incorporated by reference to our Current Report on Form 8-K filed on December 23, 2010)
3.4	Certificate of Change (incorporated by reference to our Current Report on Form 8- K filed on December 23, 2010)
(10)	Material Contracts
10.1	Share Exchange Agreement dated January 12, 2011 (incorporated by reference to our Current Report on Form 8-K filed on January 18, 2011)
(14)	Code of Ethics
14.1	Code of Ethics (incorporated by reference to our Annual Report on Form 10-KSB filed on July 30, 2007)
(31)	Rule 13a-14(a)/15d-14(a) Certifications
31.1*	Section 302 Certification under Sarbanes-Oxley Act of 2002 of principal executive officer.
31.2*	Section 302 Certification under Sarbanes-Oxley Act of 2002 of principal financial officer.

None.

(32)	Section 1350 Certifications
32.1*	Section 906 Certifications under Sarbanes-Oxley Act of 2002 of principal executive officer.
32.2*	Section 906 Certifications under Sarbanes-Oxley Act of 2002 of principal financial officer.

PART III

30 Item 10. Directors, Executive Officers and Corporate Governance

~~SIGNATURES~~All directors of our company hold office until the next annual meeting of the security holders or until their successors have been elected and qualified. The officers of our company are appointed by our board of directors and hold office until their death, resignation or removal from office. Our directors and executive officers, their ages, positions held, and duration as such, are as follows:

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Name	Position Held with the Company	Age	Date First Elected or Appointed
Hongxiao Zhang	President, Chief Executive Officer, Secretary and Director	35	November 3, 2011
Yongfu Zhu	Director	42	September 5, 2008
Xu Yongbiao	Chief Financial Officer	45	June 25, 2012
Yuwei Cheng	Chief Business Officer	43	June 25, 2012
Gangfeng Zhang	Chief Development Officer	32	June 27, 2012
Gencai Chen	Chief Information Officer	56	June 28, 2012

		CHINA FOREST ENERGY CORP.
		(Registrant)
Dated: August 4, 2011		/s/ Zhengyu Wang
		Zhengyu Wang
		President, Chief Executive Officer and
		Director
		(Principal Executive Officer)
Dated: August 4, 2011		/s/ Yongfu Zhu
		Yongfu Zhu
		Treasurer, Secretary and Director
		(Principal Financial Officer and Principal
		Accounting Officer)

~~Pursuant~~Business toExperience ~~the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.~~

Dated: August 4, 2011		/s/ Zhengyu Wang
		Zhengyu Wang
		President, Chief Executive Officer and
		Director
		(Principal Executive Officer)
Dated: August 4, 2011		/s/ Yongfu Zhu
		Yongfu Zhu
		Treasurer, Secretary and Director
		(Principal Financial Officer and Principal
		Accounting Officer)

The following is a brief account of the education and business experience during at least the past five years of each director, executive officer and key employee of our company, indicating the person’s principal occupation during that period, and the name and principal business of the organization in which such occupation and employment were carried out.

Hongxiao Zhang, President, Chief Executive Officer, Secretary and Director

Dr. Hongxiao Zhang was appointed as our president, chief executive officer, secretary and as a director on November 3, 2012. Dr. Zhang is a Doctor of Educational Philosophy and an Associate Professor. She earned her Ph.D. at the China Academy of Science. Dr. Zhang’s area of focus has been the educational psychology of seven to 14 year old students. She has published a vast amount of papers and articles regarding primary and middle school education and stimulation of the child’s thoughts and focus. She co-wrote and published the book “6S Learning Methods.” Over 100,000 copies were sold, mainly at State Xinhua Bookstores throughout China. She is one of the cofounders of Hangzhou Naniya Technology Co., Ltd. Her other publications include:

October 2005: Trinitarianism of Primary School Student Learning Environment (Journal of Cognitive Neuroscience)

July 2007: Memory Methods of Developing Student from Poly-Intelligence (Psychological Bulletin)
September 2006: Attention Training of Children Sensory Integration (Journal of Experimental Psychology)

Yongfu Zhu, Director

On September 5, 2008, Mr. Yongfu Zhu was appointed president, treasurer, secretary and as a director. Since August 2004, Mr. Zhu has been director, president and chief executive officer of APEX Pacific International Investments Limited, a BVI company. Apex is engaged in the business of international investments. Since September 1998, Mr. Zhu has been an education consultant and instructor for Xinjian Middle School located in Zhejiang, China. On January 6, 2011, Mr. Yongfu Zhu resigned as our president and chief executive officer, and on May 14, 2012, Mr. Zhu resigned as our chief financial officer, treasurer and secretary. He remains a director on our Board of Directors.

Xu Yongbiao, Chief Financial Officer

Mr. Yongbiao graduated from the Zhijiang Electronics Engineering College of Hangzhou in 1990 with a degree in Financial Management. After graduating, from August 1990 to March 1999, he joined Hangzhou Iron and Steel Group (HISG) as an accountant and was responsible managing the company’s financial transactions and reconciling accounts.

In March 1999, Mr. Yongbiao founded the Zhejiang Tiance Accounting Firm, a company that specializes in audit, capital verification, infrastructure construction cost review, assets appraisal, and business evaluations for a number of companies, in Hangzhou City, China. Presently, he is one of the primary partners at Zhejiang Tiance Accounting Firm and manages the day-to-day operations of the company.

We appointed Mr. Yongbiao as our company’s chief financial officer and the principal accounting officer because of his extensive financial and accounting experience.

Yuwei Cheng, Chief Business Officer

From September 2003 to May 2010, Mr. Cheng was a software product sales representative at Dongfang Software Development, a software development Company in Shanghai, China. His primary responsibility as a sales representative was to generate interest and awareness of the software product to prospective customers. Mr. Cheng joined our company in May 2010 and has been responsible for our marketing strategy and has been a key organizer for the online sales team.

He earned a Master’s Degree from the People’s University in Finance and Economics in Beijing, China, in 1998.

We appointed Mr. Cheng as our company’s chief business officer because his extensive background in sales and marketing.

Gangfeng Zhang, Chief Development Officer

In 2003, Mr. Zhang earned a Bachelor’s Degree in Computer Science from the Zhejiang Industrial University of Hangzhou and in 2010 he earned a Master’s Degree in Computer Software Engineering from the Zhejiang University of Hangzhou. Since 2003, subsequent to graduating from the Zhejiang Industrial University of Hangzhou, he joined Insigma Technology Company Ltd., an IT servicing and outsourcing firm in Hangzhou, China, as a technical engineer and currently acts the company’s technical director. His duties and responsibilities as a technical director are promoting and coordinating technical knowledge and serves as a technical expert representative within the company and for their clients.

We appointed Gangfeng Zhang as our company’s chief development officer because of his experience in project management, computer science and computer software engineering.

Gencai Chen, Chief Information Officer

In 1981, Mr. Chen earned a Doctorate Degree in Computer Science from the Zhejiang University of Hangzhou. Since 1981, Mr. Chen has been a professor in the School of Computer Science at the Zhejiang University of Hangzhou. As a professor, Mr. Chen teaches students of the University the scientific and mathematical approach to computation.

We appointed Gencai Chen as our company’s chief information officer because of his extensive knowledge in computer science.

Family Relationships

There are no family relationships between any of our directors, executive officers and proposed directors or executive officers.

Conflicts of Interest

Our director is not obligated to commit their full time and attention to our business and, accordingly, they may encounter a conflict of interest in allocating their time between our operations and those of other businesses. In the course of their other business activities, they may become aware of investment and business opportunities which may be appropriate for presentation to us as well as other entities to which they owe a fiduciary duty. As a result, they may have conflicts of interest in determining to which entity a particular business opportunity should be presented. They may also in the future become affiliated with entities, engaged in business activities similar to those we intend to conduct.

In general, officers and directors of a corporation are required to present business opportunities to a corporation if:

· the corporation could financially undertake the opportunity;

· the opportunity is within the corporation’s line of business; and

· it would be unfair to the corporation and its stockholders not to bring the opportunity to the attention of the corporation.

We have adopted a code of ethics that obligates our directors, officers and employees to disclose potential conflicts of interest and prohibits those persons from engaging in such transactions without our consent.

Involvement in Certain Legal Proceedings

To the best of our knowledge, none of our directors or executive officers has, during the past ten years:

1. been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

2. had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;

3. been subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;

4. been found by a court of competent jurisdiction in a civil action or by the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

5. been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

6. been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

Compliance with Section 16(a) of the Securities Exchange Act of 1934

Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers and directors and persons who own more than 10% of our common stock to file with the Securities and Exchange Commission initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our common stock and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders are required by the SEC regulations to furnish us with copies of all Section 16(a) reports that they file.

Based solely on our review of the copies of such forms received by us, or written representations from certain reporting persons, we believe that during fiscal year ended April 30, 2012, all filing requirements applicable to our officers, directors and greater than 10% percent beneficial owners were complied with.

Code of Ethics

We have adopted a Code of Ethics and Business Conduct (the “Code”) that applies to our principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions (the “Senior Officers”), as well as our directors and employees. As adopted, the Code sets forth written standards that are designed to deter wrongdoing and to promote:

· honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

· full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the SEC and in other public communications made by us;

· compliance with applicable governmental laws, rules and regulations;

· the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

· accountability for adherence to the Code.

The Code requires that, among other things, our Senior Officers commit to the timely, accurate and consistent disclosure of information; maintain confidential information; and act with honesty and integrity. In addition, it emphasizes that our Senior Officers, directors and employees have a responsibility for maintaining our financial integrity, consistent with generally accepted accounting principles and federal and state securities laws. Any Senior Officer who becomes aware of any incidents involving financial or accounting manipulation or other irregularities, whether by witnessing the incident or being told of it, must report it to us. Any failure to report such inappropriate or irregular conduct is to be treated as a severe disciplinary matter. It is not our policy to retaliate against any individual who reports in good faith any violation or potential violation of the Code.

The Code was included as an exhibit to our annual report on Form 10-KSB filed with the SEC on July 30, 2007. We undertake to provide a copy of the Code to any person without charge, upon request sent to the attention of our president at Jindi Garden, Boyage, Xihu District, Hangzhou, Zhejian, P.R. China.

Committees of the Board

All proceedings of our board of directors were conducted by resolutions consented to in writing by the directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution at a meeting of the directors are, according to the corporate laws of the state of Nevada and the bylaws of our company, as valid and effective as if they had been passed at a meeting of the directors duly called and held.

Our company currently does not have nominating, compensation or audit committees or committees performing similar functions nor does our company have a written nominating, compensation or audit committee charter. Our board of directors does not believe that it is necessary to have such committees because it believes that the functions of such committees can be adequately performed by our sole director.

Our company does not have any defined policy or procedure requirements for shareholders to submit recommendations or nominations for directors. Our board of directors believes that, given the early stage of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our company does not currently have any specific or minimum criteria for the election of nominees to the board of directors and we do not have any specific process or procedure for evaluating such nominees. Our directors asses all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.

A shareholder who wishes to communicate with our board of directors may do so by directing a written request addressed to our President, at the address appearing on the first page of this annual report.

Audit Committee and Audit Committee Financial Expert

Our board of directors has determined that none of our directors qualifies as an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K, and is "independent" as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as amended.

We believe that our board of directors is capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. We believe that retaining an independent director who would qualify as an "audit committee financial expert" would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development and the fact that we have not generated any material revenues to date. In addition, we currently do not have nominating, compensation or audit committees or committees performing similar functions nor do we have a written nominating, compensation or audit committee charter. Our board of directors does not believe that it is necessary to have such committees because it believes the functions of such committees can be adequately performed by our board of directors.

Item 11. Executive Compensation

The particulars of the compensation paid to the following persons:

· our principal executive officer;

· each of our two most highly compensated executive officers who were serving as executive officers at the end of the years ended April 30, 2012 and 2011; and

· up to two additional individuals for whom disclosure would have been provided under (b) but for the fact that the individual was not serving as our executive officer at the end of the years ended April 30, 2012 and 2011,

who we will collectively refer to as the named executive officers of our company, are set out in the following summary compensation table, except that no disclosure is provided for any named executive officer, other than our principal executive officers, whose total compensation did not exceed $100,000 for the respective fiscal year:

SUMMARY COMPENSATION TABLE
Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non- Equity Incentive Plan Compensa- tion ($)	Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)	All Other Compensa- tion ($)	Total ($)
Dr. Hongxiao Zhang⁽¹⁾ President, Chief Executive Officer and Secretary	2012 2011	Nil N/A	Nil N/A	Nil N/A	Nil N/A	Nil N/A	Nil N/A	Nil N/A	Nil N/A
Zhengyu Wang⁽²⁾ former President, Chief Financial Officer and Chairman	2012 2011	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil
Yongfu Zhu⁽³⁾ former President, Chief Executive Officer, Secretary, Treasurer and Chief Financial Officer	2012 2011	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil	Nil Nil

⁽¹⁾ Dr. Zhang was appointed as our president, chief executive officer, secretary and as a director on November 3, 2011.

⁽²⁾ Mr. Wang was appointed president, chief executive officer and as a director on January 6, 2011 and resigned on November 3, 2011.

⁽³⁾ Mr. Zhu was appointed president, chief executive officer, chief financial officer, secretary and as a director on September 5, 2008 and resigned from his position and chief executive officer on January 6, 2011.

Other than as set out below, there are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. Our directors and executive officers may receive share options at the discretion of our board of directors in the future. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that share options may be granted at the discretion of our board of directors.

Stock Option Plan

Currently, we do not have a stock option plan in favor of any director, officer, consultant or employee of our company.

Stock Options/SAR Grants

During our fiscal year ended April 30, 2012, there were no options granted to our named officers or directors.

Outstanding Equity Awards at Fiscal Year End

No equity awards were outstanding as of the year ended April 30, 2012.

Option Exercises

During our fiscal year ended April 30, 2012, there were no options exercised by our named officers.

Compensation of Directors

We do not have any agreements for compensating our directors for their services in their capacity as directors, although such directors are expected in the future to receive stock options to purchase shares of our common stock as awarded by our board of directors.

We have determined that none of our directors are independent directors, as that term is used in Item 7(d)(3)(iv)(B) of Schedule 14A under the Securities Exchange Act of 1934, as amended, and as defined by Rule 4200(a)(15) of the NASDAQ Marketplace Rules.

Pension, Retirement or Similar Benefit Plans

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of the board of directors or a committee thereof.

Indebtedness of Directors, Senior Officers, Executive Officers and Other Management

Family Relationships

There are no family relationships between any of our directors, executive officers or directors.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The following table sets forth, as of August 9, 2012, certain information with respect to the beneficial ownership of our common shares by each shareholder known by us to be the beneficial owner of more than 5% of our common shares, as well as by each of our current directors and executive officers as a group. Each person has sole voting and investment power with respect to the shares of common stock, except as otherwise indicated. Beneficial ownership consists of a direct interest in the shares of common stock, except as otherwise indicated.

Name and Address of Beneficial Owner	Amount and Nature of Beneficial Ownership	Percentage of Class⁽¹⁾
Dr. Hongxiao Zhang Boyage, Jindihuayuan, Xihu District, Hangzhou, Zhejiang Province, P.R. China	Nil	0%
Yongfu Zhu Cuizhuhuayuan, Jinyun County, Zhejiang Province, P.R. China	81,000,000 Common	43.78%
Xu Yongbiao Jindi Garden, Boyage Xihu District Hangzhou, Zhejiang Province, P.R. China	Nil	0%
Yuwei Cheng Jindi Garden, Boyage Xihu District Hangzhou, Zhejiang Province, P.R. China	Nil	0%
Gangfeng Zhang Jindi Garden, Boyage Xihu District Hangzhou, Zhejiang Province, P.R. China	Nil	0%
Gencai Chen Jindi Garden, Boyage Xihu District Hangzhou, Zhejiang Province, P.R. China	Nil	0%
Directors and Executive Officers as a Group	81,000,000 Common	43.78%

(1) Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the number of shares of common stock actually outstanding on August 9, 2012. As of August 14, 2012, there were 185,000,000 shares of our company’s common stock issued and outstanding.

Changes in Control

We are unaware of any contract or other arrangement or provisions of our Articles or Bylaws the operation of which may at a subsequent date result in a change of control of our company. There are not any provisions in our Articles or Bylaws, the operation of which would delay, defer, or prevent a change in control of our company.

Except as disclosed herein, no director, executive officer, shareholder holding at least 5% of shares of our common stock, or any family member thereof, had any material interest, direct or indirect, in any transaction, or proposed transaction since the year ended April 30, 2012, in which the amount involved in the transaction exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at the year end for the last three completed fiscal years.

Director Independence

We currently act with two directors, Hongxiao Zhang and Yongfu Zhu. We have determined that we do not have an “independent director” as defined in NASDAQ Marketplace Rule 4200(a)(15).

We do not have a standing audit, compensation or nominating committee, our board of directors and our executive officers act in such capacities. We believe that our board of directors is capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. Our board of directors does not believe that it is necessary to have an audit committee because we believe that the functions of an audit committee can be adequately performed by our board of directors. In addition, we believe that retaining an independent director who would qualify as an “audit committee financial expert” would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development.

Item 14. Principal Accounting Fees and Services

The aggregate fees billed for the most recently completed fiscal year ended April 30, 2012 and for the fiscal year ended April 30, 2011 for professional services rendered by the principal accountant for the audit of our annual financial statements and review of the financial statements included in our quarterly reports on Form 10-Q and services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for these fiscal periods were as follows:

	Year Ended
	April 30, 2012 $	April 30, 2011 $
Audit Fees	19,900	5,000
Audit Related Fees	Nil	Nil
Tax Fees	Nil	Nil
All Other Fees	Nil	Nil
Total	19,900	5,000

Our board of directors pre-approves all services provided by our independent auditors. All of the above services and fees were reviewed and approved by the board of directors either before or after the respective services were rendered.

Our board of directors has considered the nature and amount of fees billed by our independent auditors and believes that the provision of services for activities unrelated to the audit is compatible with maintaining our independent auditors’ independence.

PART IV

Item 15. Exhibits, Financial Statement Schedules

(a) Financial Statements

(1) Financial statements for our company are listed in the index under Item 8 of this document

(2) All financial statement schedules are omitted because they are not applicable, not material or the required information is shown in the financial statements or notes thereto.

(b) Exhibits

Exhibit Number	Exhibit Description
(3)	(i) Articles of Incorporation; and (ii) Bylaws
3.1	Articles of Incorporation (incorporated by reference to our registration statement on Form SB-2 filed on August 17, 2006)
3.2	By laws (incorporated by reference to our registration statement on Form SB-2 filed on August 17, 2006)
3.3	Articles of Merger (incorporated by reference to our current report on Form 8-K filed on December 23, 2010)
3.4	Certificate of Change(incorporated by reference to our current report on Form 8-K filed on December 23, 2010)
3.5	Articles of Merger (incorporated by reference to our current report on Form 8-K filed on May 16, 2012)
(10)	Material Contracts
10.1	Share Exchange Agreement dated May 7, 2011 (incorporated by reference to our current report on Form 8-K filed on May 16, 2012)
10.2	Xuerun Consulting Services Agreement dated July 7, 2011 (incorporated by reference to our current report on Form 8-K filed on May 18, 2012)
10.3	Xuerun Business Operating Agreement dated July 7, 2011 (incorporated by reference to our current report on Form 8-K filed on May 18, 2012)
10.4	Xuerun Equity Pledge Agreement dated July 7, 2011 (incorporated by reference to our current report on Form 8-K filed on May 18, 2012)
10.5	Xuerun Exclusive Option Agreement dated July 7, 2011 (incorporated by reference to our current report on Form 8-K filed on May 18, 2012)
10.6	Xuerun Voting Rights Proxy Agreement dated July 7, 2011 (incorporated by reference to our current report on Form 8-K filed on May 18, 2012)
(14)	Code of Ethics
14.1	Code of Ethics (incorporated by reference to our annual report on Form 10-KSB filed on July 30, 2007)
(31)	302 Certification
31.1*	Section 302 Certification under Sarbanes-Oxley Act of 2002.
31.2*	Section 302 Certification under Sarbanes-Oxley Act of 2002.
(31)	302 Certification
32.1*	Section 906 Certification under Sarbanes-Oxley Act of 2002.
32.2*	Section 906 Certification under Sarbanes-Oxley Act of 2002.
(101)**	Interactive Data File (Form 10-K for the Year Ended April 30, 2012)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

* Filed herewith.

** Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of any registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		NEOLOGIC ANIMATION INC.
		(Registrant)
Dated: August 14, 2012		/s/HONGXIAO ZHANG
		Hongxiao Zhang
		President, Chief Executive Officer, Secretary and Director
		(Principal Executive Officer)

Dated: August 14, 2012		/s/XU YONGBIAO
		Xu Yongbiao
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Dated: August 14, 2012		/s/HONGXIAO ZHANG
		Hongxiao Zhang
		President, Chief Executive Officer, Secretary and Director
		(Principal Executive Officer)

Dated: August 14, 2012		/s/XU YONGBIAO
		Xu Yongbiao
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

Dated: August 14, 2012		/s/ YONGFU ZHU
		Yongfu Zhu
		Director

ITEMItem 1. BUSINESSBusiness

ITEMItem 41A. REMOVEDRisk AND RESERVEDFactors

ITEMItem 81B. FINANCIALUnresolved STATEMENTSStaff AND SUPPLEMENTARY DATA.Comments

Item 2. Properties

ToItem the Board of Directors China Forest Energy Corp3. (AnLegal Exploration Stage Company) Zhejiang, P.R. ChinaProceedings

F-2 Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

TheseItem financial7. statementsManagement’s Discussion and relatedAnalysis notesof areFinancial presentedCondition in accordance with accounting principles generally accepted in the United States, and areResults expressedof in U.S. dollars. The Company’s fiscal year-end is April 30.Operations

BecauseItem of7A. theQuantitative inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and notQualitative beDisclosures detected.About Market Risk

ThereItem have8. beenFinancial noStatements changesand inSupplementary our internal control over financial reporting during the year ended April 30, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting Data

ITEMItem 159B. EXHIBITS,Other FINANCIAL STATEMENT SCHEDULES.Information

PART III

30 Item 10. Directors, Executive Officers and Corporate Governance

Item 11. Executive Compensation

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 13. Certain Relationships and Related Transactions, and Director Independence

Item 14. Principal Accounting Fees and Services

Item 15. Exhibits, Financial Statement Schedules

Filing Compare · Neologic Animation Inc