The Company's primary risks are transaction risks. In addition, the Company has been and may continue to be affected by many other factors, including but not limited to: (1) economic and market conditions, including the liquidity of capital markets; (2) the volatility of market prices, rates and indices; (3) the timing and volume of market activity; (4) inflation; (5) the cost of capital, including interest rates; (6) political events, including legislative, regulatory and other developments; (7) competitive forces, including the Company's ability to attract and retain personnel; (8) support systems; and (9) litigation. In determining whether to make an investment in the Company's capital stock, investors should consider carefully all of the information set forth in this Annual Report and, in particular, the following risk factors.

The Company manages transaction risk through allocating and monitoring its capital investments and carefully screening clients and transactions. Nevertheless, transaction risks can arise from, among other things, the Company's merchant banking and private equity activities and relate to the risks of the proposed transaction. These risks include market risks associated with the Company's role in providing advisory services.

The Company often makes investments in highly unstructured situations and in companies undergoing severe financial stress. Such investments also often involve severe time constraints. These investments may expose the Company to significant transaction risks and place the Company's funds in illiquid situations. An unsuccessful investment may result in the total loss of such investment and may have a material adverse effect on the Company's business, results of operations and financial condition.

Additionally, in order to grow its business, the Company may seek to acquire or invest in new companies. The Company's failure to make such acquisitions may limit its growth. In pursuing acquisition opportunities, the Company may be in competition with other companies having similar growth and investment strategies. Competition for these acquisitions or investment targets could result in increased acquisition or investment prices and a diminished pool of businesses, technologies, services or products available for acquisition or investment.

The Company conducts its business in a highly competitive environment. Many of its competitors have far greater resources, capital and access to information than the Company. Competition includes firms traditionally engaged in financial services, such as banks, broker-dealers and investment dealers. Increased competition may lead the Company to become involved in transactions with more risk.

Market risk relates to fluctuations in the liquidity of securities, as well as volatility in market conditions generally. The markets for securities and other related products are affected by many factors over which the Company has little or no control. These factors include the financial performance and

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prospects of specific companies and industries, world markets and economic conditions, the availability of credit and capital, political events and perceptions of market participants.

As a financial services company, the Company's business is materially affected by conditions in the financial markets and economic conditions generally. In the event of a market downturn, the Company's business, results of operations and financial condition could be adversely affected. In addition, there is no assurance that an active public market for the Company's securities will continue.

A market downturn could lead to a decline in the number and size of the transactions that the Company executes for its clients, including transactions in which the Company provides financial advisory and other services, and to a corresponding decline in the revenues the Company receives from fees.

A market downturn could further result in losses to the extent that the Company owns assets in such market. Conversely, to the extent that the Company has sold assets the Company does not own (i.e., if the Company has short positions) in any market, an upturn in such market could expose the Company to potentially unlimited losses as it attempts to cover its short positions by acquiring assets in a rising market.

Even in the absence of a market downturn, the Company is exposed to substantial risk of loss due to market volatility.

      In recent years, the securities markets in the United States and Canada have experienced a high level of price and volume volatility, and the market price of securities of many companies in our sector have experienced wide fluctuations in price which have not necessarily been related to the operating performance, underlying asset values or prospects of such companies. In particular, the per share price of the Company's common shares fluctuated from a high of $0.25$0.59 to a low of $0.10$0.28 on the TSX-VTSX Venture Exchange, referred to as the "TSX-V," within the twelve month period preceding the date of this Annual Report. There can be no assurance that continual fluctuations in price will not occur.

In fiscal 2002, 2003, 2004, 2005, 2006 and 2006,2007, we reported losses of $365,000, $518,000, $1,829,000, $300,000, $77,000 and, $77,000,106,000 respectively. As at December 31, 2006,September 30, 2007, we had an accumulated deficit of $4,000,000.$4,066,831. The ability of the Company to continue as a going-concern depends upon its ability to develop profitable operations and to continue to raise adequate equity financing. There can be no assurance that the Company will be able to continue to raise funds, in which case the Company may be unable to meet its obligations.

The Company does not believe that inflation has had a material impact on its revenues or income over the past three fiscal years. In addition, since the Company's assets to a large extent are liquid in nature, they are not significantly affected by inflation. However, increases in inflation could result in increases in the Company's expenses. To the extent that inflation results in rising interest rates and has other adverse effects on capital markets, it could adversely affect the Company's business, results of operations and financial condition.

In addition to the market risks described above, market risks could exacerbate the other risks that the Company faces. For example, if the Company incurs substantial trading losses, its need for liquidity could rise sharply while its access to liquidity could be impaired.

The Company is exposed to legal risks in its business and the volume and amount of damages claimed in litigation against financial intermediaries is increasing. These risks include potential liability under securities or other laws for materially false or misleading statements made in connection with securities and other transactions and potential liability for advice the Company provides to participants in corporate transactions. These risks often may be difficult to assess or quantify and their existence and magnitude often remain unknown for substantial periods of time. See Note 10 of the Financial Statements for additional information with respect to the Company's legal and regulatory proceedings.

Additionally, the Company's principal operating assets are located outside of the United States. Under bankruptcy laws in the United States, courts typically have jurisdiction over a debtor's property, wherever it is located, including property situated in other countries. Courts outside of the United States may not recognize the United States bankruptcy court's jurisdiction. Accordingly, investors may have difficulty administering a United States bankruptcy case involving a Canadian debtor with property located outside of the United States. Any orders or judgments of a bankruptcy court in the United States may not be enforceable.

Certain provisions of the Company's charter documents and the applicable corporate legislation may discourage, delay or prevent a change of control or changes in its management that shareholders consider favourable. These include provisions that authorize the board of directors of the Company to issue preferred stock in series, provide for the election of the directors of the Company with staggered, three-year terms and limit the persons who may call special meetings of shareholders.

At a special meeting of shareholders of the Company held on August 25, 1998, the slate of nominee directors proposed by a dissident shareholder was elected. Following the change in directorship, the Company initiated a comprehensive restructuring plan, which included, among other things, monetizing all non-cash assets, reducing corporate overhead expenses, consolidating the Company's share capital and settling all outstanding litigation. In addition, the Company changed the focus of its business from investing in a wide variety of start-up or early stage businesses to engaging primarily in private equity and merchant banking activities.

On September 26, 2001, shareholders of PMCL and the Company approved the amalgamation between the companies, referred to as the "Amalgamation". Prior to the Amalgamation, PMCL was the largest shareholder of the Company, owning 2,250,219 common shares or approximately 49.5% of the Company. Under the terms of an amalgamation agreement between the Company, PMCL and 940296 Alberta Ltd., a wholly owned subsidiary of the Company, each common share of PMCL was exchanged for five common shares of the Company following the amalgamation of PMCL and 940296 Alberta Ltd., resulting in 3,681,310 shares of the Company being issued to the shareholders of PMCL. The 2,250,219 common shares of the Company owned by PMCL, which had a carrying value of $322,191, were canceled in June 2007.

In August 2004, the Company announced a special dividend consisting of 0.42 common shares of North Group Finance Limited (TSX-V: NOR) for each common share of the Company. The Company distributed approximately 2,492,076 common shares of North Group Finance Limited to shareholders as of the record date of August 31, 2004. For registered shareholders with addresses in the United States, the shares of North Group Finance Limited which they would otherwise be entitled to were sold on their behalf and the proceeds of the sale were distributed.

During the year ended December 31, 2005, the Company settled with the Alberta Securities Commission, referred to as the "ASC", in respect of an alleged breach of takeover bid rules and control persons’ reporting obligations. Pursuant to the terms of the settlement, the Company paid $40,693 to the ASC to, among other things, mitigate the continuing expense of protracted litigation. This amount and related legal costs of $55,396 were recorded as a loss on settlement of lawsuits for the year ended December 31, 2005.

The Company is a publicly traded financial services company engaging primarily in private equity and merchant banking activities in Canada and the United States. The Company's shares are quoted on the NASD Over-the-Counter Bulletin Board, referred to as the "OTCBB",OTCBB in the United States under the symbol "BMMUF""GPKUF" and on the TSX-V, in United States dollars, under the symbol "BMM.U""GPK.U". The Company's investment objective is to acquire influential ownership in companies and, through direct involvement, bring about the changes required to realize their potential value. The Company concentrates on return on investment and cash flow to build long-term shareholder value. Accordingly, the Company continually evaluates its existing investments and operations and investigates the possible acquisition of new businesses.

The Company assists companies in developing their businesses through active involvement in capital financings, acquisitions and business strategy development. The Company develops innovative solutions for projects that are practical, responsible and pragmatic in their implementation. However, the Company takes a cautious approach to new initiatives, selectively allocating capital and concentrating on areas where its financial and management expertise can be best applied.

The Company's principal sources of funds are its available cash resources, bank financing, public financing and revenues generated from the Company's merchant banking activities and realized investment gains from the Company's private equity operations. The Company has no recurring cash requirements other than repayment of interest and principal on its debt, tax payments and corporate overhead.

The Company's private equity operations include reviewing investment opportunities in undervalued companies or assets, management or leveraged buy-outs and turn around or workout situations. In furtherance of this strategy, the Company often advises and invests in the restructuring of businesses that are having financial distress or have defaulted on their debt obligations. The Company earns advisory fees by providing strategic and financial advice for clients. The following is a brief description of the Company's private equity operations.

The Company seeks influential ownership in companies or assets whose intrinsic values are not fully reflected in their price. Specifically, the Company invests in businesses that demonstrate consistently high earnings and free cash flow and companies priced at a significant discount in terms of net asset value, earnings multiples or other valuation criteria. The Company works to bring about the changes required to realize the strategic value of those companies.

The Company invests and assists in arranging financing for a management or succession-leveraged buy-out of a business. The Company invests in equity and mezzanine securities arising from leveraged acquisitions and recapitalizations and other similar types of transactions, which involve significant financial leverage. The Company structures transactions that allow owners to sell part of their equity in advance of their departure while maintaining management continuity.

The Company invests in the securities of distressed or troubled companies or assets where the business value is evident but the company suffers from financial or non-financial difficulties. The Company also invests in companies with underperforming management, where the underlying business value is still evident. The Company works to bring about the change required to realize the strategic value of these businesses.

The Company's merchant banking operations include financial and management services for corporate finance transactions, including mergers and acquisitions and corporate restructurings. Through merchant banking partnerships, the Company provides companies and their management with investment capital and financial direction. The Company receives fees for services provided including options and other conversion privileges to participate as an equity investor in businesses to which merchant banking services have been provided. The following is a brief description of the Company's merchant banking operations.

The Company is active in public company mergers and acquisitions transactions, including unsolicited take-over bids. The Company assists companies in identifying and financing acquisitions and provides recommendations regarding financial restructuring.

The Company provides creative and responsible solutions to restructure businesses and their balance sheets so as to improve profitability. In certain circumstances, a company's financial flexibility is enhanced by the Company acquiring loans owing to the Company's traditional lenders, which are then restructured on financial terms consistent with the Company's immediate requirements.

The Company currently competes against brokerage firms, investment bankers, merchant banks and other investment managers for appropriate investments. Such businesses are highly competitive and are subject to fluctuations based upon many factors over which the Company has no control, such as the condition of public markets, interest rates and the state of capital markets. Many of the Company's competitors are national or international companies with far greater resources, capital and access to information than the Company. As a result, the Company may become involved in transactions with more risk than if it had greater resources.

The following is a list of the Company's significant operating subsidiaries as of December 31, 2006:

The Company's principal executive office is located in Vancouver, British Columbia, Canada, and is leased.

     In MarchMay 2007, the Company, entered into anthrough a wholly-owned subsidiary, exercised its previously announced option agreement with Diagnos Inc. to acquire a 100% interest in two prospective nickel properties in the Abitibi region of Quebec, Canada. The two properties include 75 claims that cover approximately 3,200 acres of terrain in a region with two significant nickel deposits and one past-producing mine. The Company paid Diagnos Inc.has completed the first stage of a sum of $45,000 for each property within 45 days ofpreliminary exploration program on the execution of the option agreement.  Under the terms of theproperties and intends to continue its exploration program into 2008.

     The Company has also entered into an option agreement for eachthrough a wholly-owned subsidiary to acquire a 100% interest in a third property upon which an economic discoveryin the same area of nickel is made, a bonus of $70,000 will be paid to Diagnos Inc. in shares of the Company. There is a two percent net smelter return, referred to as the "NSR", issued to Diagnos Inc., of which theQuebec. The Company has an optionconcentrated its efforts of due diligence on this property and will continue its phase one work program to acquire one percentidentify potential drilling targets.

     In the normal course of the NSR  for $1,000,000.

The Company's financial results for the past three fiscal years are summarized below.

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     Expenses decreased to $31,280$135,724 in fiscal 2007 compared to revenues of $51,865 and $61,170, respectively for the periods ending December 31, 2005 and 2004.

Other income before other items includes interest and royalty income of $31,280$29,386 for fiscal 20062007 compared to revenues of $51,865$31,820 and $61,170,$51,865, respectively for the periodsfiscal years ending December 31, 20052006 and 2004.  Other gains before other items includes a gain of $57,338 from the sale of long-term investments, a gain of $52,809 from excise tax re-assessment and a gain on debt settlement of $23,633.

The Company reported a net loss of $106,337 in fiscal 2007 compared to a net loss of $76,866 in fiscal 2006 compared toand a net loss of $300,279 in fiscal 2005 and a net loss of $1,828,500 in fiscal 2004.2005. Basic and diluted loss per common share was $0.01 in 20062007 compared to losses of $0.05$0.01 and $0.31$0.05 in fiscal 2006 and 2005, and 2004, respectively.

The Company and certain of its subsidiaries have tax loss carry-forwards and other tax attributes, the amount and availability of which are subject to certain qualifications, limitations and uncertainties.

The Company does not believe that inflation has had a material impact on revenues or income over the past three fiscal years.

The Company's operations are conducted in international marketsboth Canada and the US and its consolidated financial results are therefore subject to foreign currency exchange rate fluctuations. During fiscal 2003, the Company changed from the temporal method of accounting for foreign exchange translation to the current rate method as required by Emerging Issues Committee 130 issued byThe Company’s functional currency is the Canadian Institutedollar and its reporting currency for the presentation of Chartered Accountants (see Note 2its consolidated financial statements is the US dollar. Under this method all resulting exchange differences are reported as a separate component of the Financial Statements).

The preparation of financial statements in conformity with GAAP requires the Company's 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 periods.

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Management routinely makes judgments and estimates about the effects of matters that are inherently uncertain. As the number of variables and assumptions affecting the probable future resolution of the uncertainties increase, these judgments become even more subjective and complex. The Company has identified certain accounting policies, described below, that are most important to the portrayal of its current financial condition and results of operations. The significant accounting policies are disclosed in Note 2 to the Financial Statementsfinancial statements included in this Annual Report.

Marketable securities are recorded at the lower of cost or quoted market value on a specific identification basis.

      The Company's principal assets consist of cash. The Company's principal sources of funds are its available cash resources and its bank and public financing. The Company has no recurring cash requirements other than repayment of interest and principal on its debt, tax payments and corporate overhead. In the opinion of the Company, current working capital is sufficient for its current requirements.

     At September 30, 2007, the Company's readily available cash increased to $756,652 compared to $466,112 at December 31, 2006. Total current assets at September 30, 2007 increased to $898,791 from $448,452 at December 31, 2006.

     Operating activities used cash of $50,923 in fiscal 2007 compared to $56,996 and $740,718 during fiscal 2006 and 2005, respectively, predominately from the net loss incurred during the year. Investing activities reduced cash in the amount of $374,235 from the purchase of short term investments and marketable securities during fiscal 2007 compared to investing activities generating cash of $13,452 in fiscal 2006 and investing activities generating cash of $84,929 in fiscal 2005. Financing activities generated cash of $630,000 from the issuance of common shares in fiscal 2007 compared to $487,000 in fiscal 2006. Financing activities provided no cash in fiscal 2005.

In May 2006,August 2007, the Company completed a non-brokered private placement for 2,500,000 units.  Each unit consisted of one common share of the Company and one share purchase warrant.  Each share purchase warrant entitled the holder to purchase one common share of the Company at a price of $0.10 for a term of one year from the date of issue of such share purchase warrant.  The company raised an aggregate of $175,000 from the sale of the units priced at $0.07 per unit.  The resulting proceeds were used for general corporate purposes.  All of the warrants issued pursuant to this private placement were exercised in full in May 2007.

     On December 31, 2006,17, 2007, the Company's readily available cash increasedCompany completed a non-brokered private placement for 5,000,000 units for a price of US$0.21 per unit. Each unit consists of one common share of the Company and one share purchase warrant. Each share purchase warrant entitles the holder to $466,112 compared to $14,392purchase one common share of the Company at December 31, 2005.  Total current assets at December 31, 2006 increased to $448,452 from $148,295a price of US$0.28 for the corresponding comparative period.

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Financial position

Total assets of the Company at September 30, 2007 increased to $1,180,193 compared to $448,452 at December 31, 2006, increased to $448,452 compared to $148,632 at December 31, 2005.

Shareholders' equity as at December 31, 2006September 30, 2007 was $37,540$565,054 compared to a deficiency of $361,215$37,540 as at December 31, 2005.2006. The Company had 11,033,51417,333,514 shares issued and outstanding as at December 31, 2006 and an additional 2,250,219 which were held in treasury for cancellation.  The 2,259,219 shares held in treasury for cancellation were cancelled in June 2007.  Thea weighted average number of common shares outstanding of 13,700,181 as at December 31, 2006 was 7,940,089.

For the current financial year, the Company is not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on the Company's net sales or revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

The following table sets out certain information concerning the directors and executive officers of the Company as at the date hereof:

There are no arrangements or understandings with major shareholders, customers or others pursuant to which any person referred to above was selected as a director or executive officer.

During the fiscal year ended December 31, 2006,September 30, 2007, the Company did not pay any compensation to its independent directors. The Company has not issued or granted any incentive stock options to either the Company's directors or officers or any other non-cash compensation, as more particularly described below. No other funds were set aside or accrued by the Company during the fiscal year ended December 31, 2006September 30, 2007 to provide pension, retirement or similar benefits for directors or officers of the Company pursuant to any existing plan provided or contributed to by the Company.

The Company is required, under applicable securities legislation in Canada, to disclose to its shareholders details of compensation paid to certain of its directors and executive officers. The following fairly reflects material information regarding compensation paid thereto.

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The following table states the name of each Named Executive Officer, his annual compensation, consisting of salary, bonus and other annual compensation, and long term compensation, including stock options paid, for each of the three most recently completed financial years of the Corporation.

During the year ended December 31, 2004, the Company’s shareholders approved and the Board adopted a stock option plan, referred to as the "SOP", whereby the Company is authorized to grant options to officers and directors, employees and consultants, enabling them to acquire up to 10% of the issued and outstanding common shares of the Company. The SOP is subject to the rules of the TSX-V. Under the SOP, the exercise price of each option cannot be less than the price permitted by the TSX-V. The options can be granted for a maximum term of five years or as allowed by the TSX-V. Requisite yearly approval of the SOP from shareholders of the Company, as required by the rules of the TSX-V, will be soughtwas obtained at the Company's 2006 Annual Meeting.

During the fiscal year ended September 30, 2007 and the fiscal years ended December 31, 2006 2005 and 2004,2005, no stock options were granted or exercised.

The Company did not grant any options to any of the Named Executive Officers during the fiscal year ended December 31, 2006.

The Named Executive Officers do not hold any options or freestanding stock appreciation rights, referred to as "SARs", to acquire securities of the Company and did not acquire any securities of the Company on the exercise of options or freestanding SARs during the financial year ended December 31, 2006.

There are no employment contracts between the Company and its directors or executive officers, nor are there any arrangements with the Company's directors or executive officers for compensation in the event of resignation, retirement or any other termination with the Company or change in the directors' or executive officers' responsibilities following a change of control.

The Company does not have a remuneration committee of the Board. The Company's Board is primarily responsible for determining the compensation to be paid to the Company's executive officers and evaluating their performance. The compensation of executives is based upon, among other things, the responsibility, skills and experience required to carry out the functions of each position held by each executive officer and varies with the amount of time spent by each executive officer in carrying out his functions on behalf of the Company. The President's compensation is additionally based upon the responsibility, skills and experience required to conduct his functions and upon the time spent by him in relation to the affairs of the Company. In setting compensation rates for executive officers and the President, the Board compares the amounts paid to them with the amounts paid to executives in comparable positions at other comparable corporations.

The primary function of the audit committee, referred to as the "Audit Committee", is to assist the Board in fulfilling its financial oversight responsibilities by reviewing the financial reports and other financial information provided by the Company to regulatory authorities and shareholders, the Company's systems of internal controls regarding finance and accounting and the Company's auditing, accounting and financial reporting processes. Consistent with this function, the Audit Committee will encourage continuous improvement of, and should foster adherence to, the Company's policies, procedures and practices at all levels. The Audit Committee's primary duties and responsibilities are to: (i) serve as an independent and objective party to monitor the Company's financial reporting and internal control system and review the Company's financial statements; (ii) review and appraise the performance of the Company's external auditors; and (iii) provide an open avenue of communication among the Company's auditors, financial and senior management and the Board.

The members of the Audit Committee are currently Navchand Jagpal, Greg MacRae, and J. Lewis Dillman and Thomas Kennedy, the majority of whom are free from any relationship that in the opinion of the Board would interfere with the exercise of his independent judgment as a member of the Audit Committee.  Effective the date of the 2006 Annual Meeting, Mahmoud S. Aziz is expected to be appointed as a member of the Audit Committee to replace Greg MacRae.  Mahmoud S. Aziz will be an independent member of the Audit Committee upon his expected appointment as a member of the Audit Committee.

Currently, the Audit Committee has at least one member with accounting or related financial management expertise. All members of the Audit Committee are financially literate.  Mr. Aziz will be financilal literate upon his expected appointment as a member of the Audit Committee effective the date of the 2006 Annual Meeting. For the purposes of the Company's Charter, the definition of "financially literate" is the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can presumably be expected to be raised by the Company's financial statements.

The Audit Committee meets annually or more frequently as circumstances dictate. As part of its mandate to foster open communication, the Audit Committee meets with the external auditors.

To fulfill its responsibilities and duties, the Committee:

At no time since the commencement of the Company's most recently completed financial year was a recommendation of the Audit Committee to nominate or compensate an external auditor not adopted by the Board.

As at December 31, 2006,September 30, 2007, the Company did not have any employees.

As at June 29, 2007,March 25, 2008, the Named Executive Officers did not own, directly or indirectly any shares of the Company.