GENERAL DEVELOPMENT

Cadema Corporation (the "Company") finances and operates business enterprises that have the potential to generate profits and positive cash flow.

The predecessor of the Company (Nevada Resources, Inc.) was incorporated in Nevada in 1980, at which time it acquired certain mining equipment and interests in undeveloped mining properties. The Company has been publicly held since 1980. In 1985, the Company decided to diversify its operations and, in September 1986, effected a merger with Cadema, Inc., a privately held company. Although the Company originally was engaged in mineral exploration, the 1986 acquisition of Cadema, Inc....