The youngsters had been amassing chemicals, pipes and fuses to make viable devices based on a recipe in the 'Anarchists Cookbook', Newcastle Crown Court was told.
The two boys were sentenced to youth custody for 12 months after they admitted conspiracy to make an explosive substance for unlawful purpose, 'The Daily Telegraph' reported.
Prosecutor Nick Dry told the court that one of the defendants had been confronted by his parents last year after they became concerned about him.
In fact, Skype communications between the defendants in October and November last year confirms they were doing just that," he said.
"Potential targets discussed included a local public school, the Houses of Parliament, Buckingham Palace and a random shopping centre. Escape plans were discussed along with potential suicide," he added.
In December last year, the mother of one of the youths searched his room and found powders which turned out to be paracetamol, caffeine and sucrose, substances commonly used to dilute drugs.
On his way to the police station the boy, who has mental health issues, was singing to himself, including the words "No surrender".
The other boy was also arrested and was found to have six metal pipes in the garage, another in the kitchen and a bag of fuses.
Passing the youth detention order, Judge John Milford QC said: "Police discovered contacts between you in discussion about targeting a number of different establishments, locally and nationally, with bombs. In the event, because of the intervention of your parents and police, no explosives were created and no bombs were made.
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