SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

               Quarterly Report Pursuant to Section 13 or 15(d) of
                       The Securities Exchange Act of 1934

                For the quarterly period ended: December 31, 1996

                        Commission File number: 0-114244

                          WHITE CLOUD EXPLORATION, INC.
             (Exact name of registrant as specified in its charter)

Utah                                                        84-0959153
---------------------------------                        ----------------------
State or Other Jurisdiction                               (I.R.S. Employer
of incorporation or organization)                        Identification Number)

1430 Larimer #209, Denver, CO                         80202
---------------------------------------              -------
(Address of principal Executive Offices              Zip Code)

Registrant's telephone number, including area code: None

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 the  filing
requirements for at least the past 90 days.

                              Yes          No   X 
                                  -----       -----

As of December  31,  1996,  there were  9,825,000  outstanding  shares of common
stock, par value $.0001 outstanding.



<PAGE>



PART 1. FINANCIAL INFORMATION

     ITEM 1. Financial Statements
             --------------------

                          WHITE CLOUD EXPLORATION, INC.
                           Consolidated Balance Sheet
                                   (Unaudited)



                                                          December       June
ASSETS                                                    31, 1996     30, 1996
                                                          --------     --------
CURRENT ASSETS:
     Cash and Cash Equivalents                           $  100       $   100
     Prepaid Expenses                                         -             -
     Accounts Receivable                                      -             -
     Accrued Interest Receivable                              -             -
    Intercompany Receivable                                   -             -

          Total Current Assets                           $   100      $   100
-------------------------------------------------------------------------------

       TOTAL ASSETS                                      $   100      $   100
===============================================================================

LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)

CURRENT LIABILITIES:
     Accounts Payable                                    $27,055      $27,055

          Total Current Liabilities                      $27,055      $27,055

STOCKHOLDER'S EQUITY (DEFICIT):
     Common Stock, $.001 par value
         - 50,000,000
      shares authorized, 9,825,000
         shares issued and outstanding                   $ 9,825     $ 9,825
     Additional Paid In Capital                          $65,707     $65,707

         Deficit accumulated during the
         development stage                              (102,487)    (102,487)
-------------------------------------------------------------------------------

     Total Stockholder's Equity                         $(26,955)     (26,955)
-------------------------------------------------------------------------------
      TOTAL LIABILITIES &
         STOCKHOLDER'S EQUITY                           $    100      $   100
===============================================================================

             The accompanying notes are considered an integral part
                         of these financial statements


<PAGE>
<TABLE>
<CAPTION>

                           WHITE CLOUD EXPLORATION, INC.
                  Consolidated Statement of Income and Expense
                                    (Unaudited)


                                                         3 Months                  6 Months
                                                      Ended December 31,        Ended December 31,
                                                    1996              1995    1996              1995
                                                    ----------------------    ----------------------
<S>                                                 <C>               <C>     <C>              <C>  

OPERATING REVENUES

         Revenues                                    -                 -       -                 -
Gross Profit                                         -                 -       -                 -


OPERATING EXPENSES
Salaries                                             -                 -       -                 -
Office                                               -                 -       -                 -
Travel                                               -                 -       -                 -
Professional fees                                    -                 -       -                -
Telephone & Utilities                                -                 -       -                 -
Depreciation                                         -                 -       -                 -
Miscellaneous                                        -                 -       -                 -
Interest expense                                     -                 -       -                 -

Total Operating Expense                              -                 -       -                 -
--------------------------------------------------------------------------------------------------

OTHER REVENUES & EXPENSES

Miscellaneous Income                                 -                 -       -                 -

Total Other Revenues & Expenses                      -                 -       -                 -
--------------------------------------------------------------------------------------------------

NET INCOME (LOSS)                                    -                 -       -                 -
===================================================================================================

</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                           WHITE CLOUD EXPLORATION, INC.
                                       Consolidated Statement of Cash Flows
                                                    (Unaudited)


                                                     Three Months               Six Months
                                                     Ended December 31,         Ended December 31
                                                     1996              1995     1996             1995
                                                     ----------------------     ---------------------
<S>                                                  <C>              <C>       <C>             <C> 
Cash flows from
Operating Activities:

Net Profit (Loss)                                    -                 -        -                -

Depreciation                                         -                 -        -                -
Stock issued for services                            -                 -        -                -
(Increase) decrease in Accts Receivable              -                 -        -                -
(Increase) decrease in Prepaids                      -                 -        -                -
(Increase) decrease in Deposits                      -                 -        -                -
(Decrease) increase in Accrued Expenses              -                 -        -                -
(Decrease) increase in Accts Payable                 -                 -        -                -
(Decrease) increase in advance payable               -                 -        -                -

Net Cash Flows Used for
Operating Activities                                 -                 -        -                -

Cash Flows from investing activities
(Purchase) sale of Fixed Assets                      -                 -        -                -
(Purchase) sale of Note Receivable                   -                 -        -                -
(Purchase) sale of Lease Interests                   -                 -        -                -

Total cash used for investing                        -                 -        -                -
--------------------------------------------------------------------------------------------------

Cash flows from financing activities
Increase (Decrease) in Note Payable                  -                 -        -                -
Sale of Common Stock                                 -                 -        -                -

Total Cash from financing activities                 -                 -        -                -
--------------------------------------------------------------------------------------------------

Increase (Decrease) in cash                          -                 -        -                -

Cash and cash equivalents -
beginning of period                                  100               100      100              100
====================================================================================================

Cash and cash equivalents -
end of period                                        100               100      100              100
====================================================================================================

</TABLE>

<PAGE>



ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of
Operations.

Results of Operations
---------------------

     The Company  had no  operations  for the period.  During the same period in
1995 there were no operations nor revenues.

Liquidity and Capital Resources
-------------------------------

     The Company had nominal cash capital at the end of the period.  The Company
will be  forced  to  either  borrow  against  or  sell  assets  or make  private
placements of stock in order to fund any operations.  No assurance  exists as to
the ability to make private placements of stock.


PART II


                                OTHER INFORMATION


Item 1.  Legal Proceedings - None.

Item 2.  Changes in securities - None.

Item 3.  Defaults upon senior securities - None.

Item 4.  Submission of matters to a vote of security holders - None.

Item 5.  Other information - None.

Item 6.  Exhibits and reports on Form 8-K

          (a)  The following are filed as Exhibits to this Quarterly Report. The
               numbers refer to the Exhibit Table of Item 601 of Regulation S-K:

                       None.

          (b)  Reports on Form 8-K filed during the three months ended  December
               31, 1996. (incorporated by reference)

                       None.





<PAGE>


                                   Signatures
                                   ----------

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf of the
undersigned thereunto duly authorized.


                                     WHITE CLOUD EXPLORATION, INC.
                                     by:  /S/  STEVEN C. SIGNER
                                         --------------------------------------
                                         Steven C. Signer, President

Dated:  July 15, 1997