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| Nevada                                                              | 98-0373867                                   |
|---------------------------------------------------------------------|----------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |  (IRS      Employer Identification No.) |

|  Large      accelerated filer |  o                                                                      |  Accelerated      filer    |  o |
|------------------------------------|------------------------------------------------------------------------------|------------------------------------------------|---------|
|  Non-      accelerated filer  |  o   (Do      not check if a smaller reporting company)  |  Smaller      reporting company      |  x |

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Table of Contents

TABLE OF CONTENTS

| Part  I      – FINANCIAL      INFORMATION |                                                                  |
|-----------------------------------------------------------|-----------------------------------------------------------------------|
|                                                      |                                                                  |   |
| Item 1.                                                   | Financial      Statements:                                            | 3 |
|                                                      |                                                                  |   |
|                                                      | Balance Sheets                                                        | 4 |
|                                                      |                                                                  |   |
|                                                      | Statements of Operations                                              | 5 |
|                                                      |                                                                  |   |
|                                                      | Statements of Cash Flows                                              | 6 |
|                                                      |                                                                  |   |
|                                                      | Notes to Financial Statements                                         | 7 |
|                                                      |                                                                  |   |
| Item 2.                                                   | Management’s Discussion and Analysis or Plan of      Operations | 11 |
|                                                      |                                                                  |   |
| Item      3.                                              | Quantitative and Qualitative Disclosure About Market      Risk        | 14 |
|                                                      |                                                                  |   |
| Item 4                                                    | Controls and Procedures                                               | 14 |
|                                                      |                                                                  |   |
| Part II – OTHER INFORMATION                         |                                                                  |
|                                                      |                                                                  |   |
| Item      1.                                              | Legal Proceedings                                                     | 15 |
|                                                      |                                                                  |   |
| Item 1A.                                                  | Risk Factors.                                                         | 15 |
|                                                      |                                                                  |   |
| Item      2.                                              | Unregistered Sales of Equity Securities and Use of      Proceeds      | 15 |
|                                                      |                                                                  |   |
| Item 3.                                                   | Defaults Upon Senior Securities                                       | 16 |
|                                                      |                                                                  |   |
| Item      4.                                              | Submission of Matters to a Vote of Security      Holders              | 16 |
|                                                      |                                                                  |   |
| Item 5.                                                   | Other Information                                                     | 16 |
|                                                      |                                                                  |   |
| Item      6.                                              | Exhibits                                                              | 16 |
|                                                      |                                                                  |   |
| SIGNATURES                                                | 17                                                                    |

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Table of Contents

Part  I– FINANCIALINFORMATION

Item1.       FinancialStatements

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Table of Contents

BALANCE SHEETS

|                                                                    |   | OCTOBER      31 |       |   | JULY      31 |   |
|-------------------------------------------------------------------------|--------|-----------------|------------|--------|--------------|--------|
|                                                                    |   | 2008            |       |   | 2008         |   |
|                                                                    |   | (Unaudited)     |       |   |         |   |
|                                                                    |   |            |       |   |         |   |
| ASSETS                                                                  |   |            |       |   |         |   |
|                                                                    |   |            |       |   |         |   |
| Current                                                                 |   |            |       |   |         |   |
| Prepaid      expenses                                                   |   | $               | 75         |   |         | $      | - |   |
|                                                                    |   |            |       |   |         |   |   |   |
|                                                                    |   | $               | 75         |   |         | $      | - |   |
|                                                                    |   |            |       |   |         |   |   |   |
| LIABILITIES                                                             |   |            |       |   |         |   |   |   |
|                                                                    |   |            |       |   |         |   |   |   |
| Current                                                                 |   |            |       |   |         |   |   |   |
| Bank      indebtedness                                                  |   | $               | 40         |   |         | $      | 38 |   |
| Accounts      payable and accrued liabilities                           |   |            | 8,920      |   |         |   | 4,940 |   |
| Notes      payable (Note 4)                                             |   |            | 19,532     |   |         |   | 22,837 |   |
| Due      to related parties (Note 6)                                    |   |            | 186,946    |   |         |   | 177,251 |   |
|                                                                    |   |            | 215,438    |   |         |   | 205,066 |   |
|                                                                    |   |            |       |   |         |   |   |   |
| STOCKHOLDERS’      DEFICIT                                        |   |            |       |   |         |   |   |   |
|                                                                    |   |            |       |   |         |   |   |   |
| Capital      stock (Note 5)                                             |   |            |       |   |         |   |   |   |
| Authorized:                                                             |   |            |       |   |         |   |   |   |
| 200,000,000      common shares with a par value of $0.001 per share     |   |            |       |   |         |   |   |   |
| Issued      and outstanding:                                            |   |            |       |   |         |   |   |   |
| 28,640,196      common shares (July 31, 2008: 28,640,196 common shares) |   |            | 28,640     |   |         |   | 28,640 |   |
| Additional      paid-in capital                                         |   |            | 914,166    |   |         |   | 914,166 |   |
| Deferred      stock compensation (Note 6)                               |   |            | -          |   |         |   | (39,700 | ) |
| Deficit      accumulated during the exploration stage                   |   |            | (1,155,440 | )      |         |   | (1,101,977 | ) |
| Accumulated      other comprehensive loss                               |   |            | (2,729     | )      |         |   | (6,195 | ) |
|                                                                    |   |            | (215,363   | )      |         |   | (205,066 | ) |
|                                                                    |   |            |       |   |         |   |   |   |
|                                                                    |   | $               | 75         |   |         | $      | - |   |

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Table of Contents

STATEMENTS OF OPERATIONS

|                                                                                     |   |                    |       |   | CUMULATIVE      RESULTS OF OPERATIONS FROM APRIL 9, 1999 (INCEPTION) |   |
|------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|----------------------------------------------------------------------|--------|
|                                                                                     |   | THREE      MONTHS ENDED |       |   | TO                                                                   |   |
|                                                                                     |   | OCTOBER      31         |       |   | OCTOBER      31,                                                     |   |
|                                                                                     |   | 2008                    |       |   | 2007                                                                 |   |   | 2008 |   |
|                                                                                     |   |                    |       |   |                                                                 |   |   |   |   |
| Expenses                                                                                 |   |                    |       |   |                                                                 |   |   |   |   |
| Consulting      fees                                                                     |   | $                       | -          |   |                                                                 | $      | - |   |   | $ | 27,780 |   |
| Filing      fees                                                                         |   |                    | 1,173      |   |                                                                 |   | 1,806 |   |   |   | 33,112 |   |
| Foreign      exchange loss                                                               |   |                    | 109        |   |                                                                 |   | 265 |   |   |   | 14,055 |   |
| General      and administrative                                                          |   |                    | 311        |   |                                                                 |   | 571 |   |   |   | 20,723 |   |
| Interest      expense                                                                    |   |                    | 161        |   |                                                                 |   | 216 |   |   |   | 15,565 |   |
| Investor      relations                                                                  |   |                    | -          |   |                                                                 |   | 4,500 |   |   |   | 17,489 |   |
| Management      fees - stock-based compensation (Note 6)                                 |   |                    | 39,700     |   |                                                                 |   | 60,400 |   |   |   | 750,000 |   |
| Professional      fees                                                                   |   |                    | 12,009     |   |                                                                 |   | 16,857 |   |   |   | 125,661 |   |
| Resource      property expenditures                                                      |   |                    | -          |   |                                                                 |   | 5,002 |   |   |   | 150,114 |   |
| Travel                                                                                   |   |                    | -          |   |                                                                 |   | - |   |   |   | 941 |   |
|                                                                                     |   |                    |       |   |                                                                 |   |   |   |   |   |   |   |
| Net      Loss                                                                            |   | $                       | (53,463    | )      |                                                                 | $      | (89,617 | ) |   | $ | (1,155,440 | ) |
|                                                                                     |   |                    |       |   |                                                                 |   |   |   |   |   |   |   |
| Basic      and Diluted Net Loss Per Common Share                                         |   | $                       | (0.01      | )      |                                                                 | $      | (0.01 | ) |   |   |   |   |
|                                                                                     |   |                    |       |   |                                                                 |   |   |   |   |   |   |   |
| Weighted      Average Number of Common Shares Outstanding – Basic and      Diluted |   |                    | 28,640,196 |   |                                                                 |   | 28,640,196 |   |   |   |   |   |

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STATEMENTS OF CASH FLOWS

|                                                                                                        |   |                    |    |   | CUMULATIVE      RESULTS OF OPERATIONS FROM APRIL 9, 1999 (INCEPTION) |   |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|----------------------------------------------------------------------|--------|
|                                                                                                        |   | THREE      MONTHS ENDED |    |   | TO                                                                   |   |
|                                                                                                        |   | OCTOBER      31         |    |   | OCTOBER      31,                                                     |   |
|                                                                                                        |   | 2008                    |    |   | 2007                                                                 |   |   | 2008 |   |
|                                                                                                        |   |                    |    |   |                                                                 |   |   |   |   |
| Cash      Flows from Operating Activities                                                                   |   |                    |    |   |                                                                 |   |   |   |   |
| Net      loss                                                                                               |   | $                       | (53,463 | )      |                                                                 | $      | (89,617 | ) |   | $ | (1,155,440 | ) |
|                                                                                                        |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Adjustments      to reconcile net loss to net cash used in operating      activities:                       |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Realized      foreign exchange losses on settlement of notes payable                                        |   |                    | -       |   |                                                                 |   | - |   |   |   | 12,523 |   |
| Stock-based      compensation                                                                               |   |                    | 39,700  |   |                                                                 |   | 60,400 |   |   |   | 750,000 |   |
| Accrued      interest                                                                                       |   |                    | 161     |   |                                                                 |   | 216 |   |   |   | 17,553 |   |
| Changes      in operating assets and liabilities:                                                           |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Prepaid      expenses                                                                                       |   |                    | (75     | )      |                                                                 |   | 900 |   |   |   | (75 | ) |
| Accounts      payable and accrued liabilities                                                               |   |                    | 3,980   |   |                                                                 |   | 7,332 |   |   |   | 8,920 |   |
| Net      cash used in operating activities                                                                  |   |                    | (9,697  | )      |                                                                 |   | (20,769 | ) |   |   | (366,519 | ) |
|                                                                                                        |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Cash      Flows from Financing Activities                                                                   |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Proceeds      from issuance of common stock                                                                 |   |                    | -       |   |                                                                 |   | - |   |   |   | 90,233 |   |
| Proceeds      from notes payable                                                                            |   |                    | -       |   |                                                                 |   | - |   |   |   | 89,300 |   |
| Advances      from related parties                                                                          |   |                    | 9,695   |   |                                                                 |   | 20,592 |   |   |   | 186,946 |   |
| Net      cash provided by financing activities                                                              |   |                    | 9,695   |   |                                                                 |   | 20,592 |   |   |   | 366,479 |   |
|                                                                                                        |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Net      Increase (Decrease) in Cash                                                                        |   |                    | (2      | )      |                                                                 |   | (177 | ) |   |   | (40 | ) |
|                                                                                                        |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Cash,      Beginning                                                                                        |   |                    | (38     | )      |                                                                 |   | 159 |   |   |   | - |   |
|                                                                                                        |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Cash,      (Bank Indebtedness) Ending                                                                       |   | $                       | (40     | )      |                                                                 | $      | (18 | ) |   | $ | (40 | ) |
|                                                                                                        |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information and Non-Cash Investing and Financing      Activities |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Interest      paid                                                                                          |   | $                       | -       |   |                                                                 | $      | - |   |   | $ | - |   |
| Income      taxes paid                                                                                      |   | $                       | -       |   |                                                                 | $      | - |   |   | $ | - |   |
|                                                                                                        |   |                    |    |   |                                                                 |   |   |   |   |   |   |   |
| Common      shares issued on settlement of notes payable and accrued      interest                          |   | $                       | -       |   |                                                                 | $      | - |   |   | $ | 102,573 |   |

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| 1. | NATURE      OF CONTINUED OPERATIONS AND BASIS OF  PRESENTATION |
|----|----------------------------------------------------------------|

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Table of Contents

| 2. | RECENTLY      ADOPTED ACCOUNTING PRONOUNCEMENTS |
|----|-------------------------------------------------|

| 3. | RESOURCE      PROPERTIES |
|----|--------------------------|

|   | a)     | Fort      St. John Region, British Columbia                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | By      an agreement dated June 28, 2002 with Diamant Resources Ltd., a company      with a former director in common, the Company acquired an option to      acquire a 50% interest in certain mineral claims located in the Fort St.      John region of British Columbia, Canada.  In order to earn a 50%      interest, the Company was required to pay $3,298 (Cdn$5,000) by June 30,      2002, $3,619 (Cdn$5,000) by July 30, 2003, and must incur certain other      property expenditures.  As of July 31, 2007, the Company had      satisfied these requirements and earned its 50% interest in all the      mineral claims listed in the agreement.  The Company decided not      to pursue this property and has abandoned it during the fiscal year ended      July 31, 2008.  All costs associated with this property have      been fully impaired. |

|   | b)     | Chunya      mining district of Mbeya Tanzania                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | On      September 9, 2008, the Company entered into a Farm-In Agreement with      Canafra Mineral Exploration Corp., a Canadian private company, and Two      Drums G & C Company Limited, a Tanzanian private company, (jointly      “Canafra”), whereby the Company has the right to acquire a 50% net profit      interest in the subject mineral property in Tanzania.  The      subject property consists of three Mining and Prospecting Licenses and the      Granted Mining and Prospecting Concessions comprising approximately 26      square kilometers, in the Chunya mining district of Mbeya      Tanzania.  The operator of the property will be      Canafra. The      funding provisions are subject to the Company receiving the Mining and      Prospecting Licenses for the subject property, which to date have not yet      been received. In      order to acquire its full interest in the subject property the Company      will advance to the operator $1,100,000 to fund exploration expenditures      and provide working capital in phased payments and also issue 4,000,000      restricted common shares to the operator in stages as described below. The      Company will earn its interest at a vested rate of 10% based on its      funding efforts until fullyfunded. |

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| 3. | RESOURCE      PROPERTIES(Continued) |
|----|-------------------------------------|

|                                                                                                                                                               |   |          |      |   | Common           |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|------------------|--------|
|                                                                                                                                                               |   | Cash          |      |   | Stock      to be |   |
|                                                                                                                                                               |   | Consideration |      |   | Issued           |   |
| Phase I –      Conditional upon receipt of Mining and Prospecting      Licenses                                                                              |   |          |      |   |             |   |
| Within      30 days of execution of agreement                                                                                                                      |   | $             | 60,000    |   |             |   | - |   |
| Within      60 days of execution of agreement                                                                                                                      |   |          | 80,000    |   |             |   | - |   |
| Within      90 days of execution of agreement                                                                                                                      |   |          | 80,000    |   |             |   | - |   |
| Within      120 days of execution of agreement                                                                                                                     |   |          | 80,000    |   |             |   | - |   |
| Within      150 days of execution of agreement                                                                                                                     |   |          | 80,000    |   |             |   | - |   |
|                                                                                                                                                               |   |          | 380,000   |   |             |   | - |   |
|                                                                                                                                                               |   |          |      |   |             |   |   |   |
| Phase II – Within 90      days of completion of Phase I including      geological work to be done by Canafra                                                 |   |          | 380,000   |   |             |   | 2,000,000 |   |
|                                                                                                                                                               |   |          |      |   |             |   |   |   |
| Phase III – Within      90 days of completion of Phase II or within      a mutually agreed timeframe, including further      geological work done by Canafra |   |          | 340,000   |   |             |   | 2,000,000 |   |
|                                                                                                                                                               |   |          |      |   |             |   |   |   |
|                                                                                                                                                               |   | $             | 1,100,000 |   |             |   | 4,000,000 |   |

| 4.     | NOTES      PAYABLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | As      of October  31, 2008 the Company had received a total of $14,897      (Cdn$18,000), (July 31, 2008 -$17,586, Cdn$18,000) from unrelated third      parties by way of demand promissory notes bearing interest at the Bank of      Canada prime rate plus 2% (4.5% as of October 31, 2008).  As at      October 31, 2008 $4,635 (July 31, 2008 - $5,251) of accrued interest is      payable. During      the three months ended October 31, 2008, the Company recorded foreign      exchange transaction gains of $3,466 (October 31, 2007: loss of $2,554) in      connection with these notes payable and accrued interest payable as a      result of fluctuations in the foreign exchange  rate. |

| 5.     | CAPITAL      STOCK                                                                                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                       |
|   | The      Company’s capitalization is 200,000,000 authorized common shares with a      par value of $0.001 per share. |

|   | a) | Effective      October 20, 2006, the Company completed a forward split of its shares of      common stock at a ratio of a six (6) new shares, for each one (1) old      share currently held. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | On      October 3, 2006, pursuant to two separate share-for-debt agreements, the      Company issued 1,230,876 post-split common      shares in settlement of notes payable amounting to $89,006 and accrued      interest of $13,567. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | On      October 4, 2006, under a restricted stock award agreement, the Company      issued 6,000,000 post-split shares      of restricted common stock with a fair value of $750,000 to the Company’s      President. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of October      31, 2008 and July 31, 2008 the Company has 28,640,196 common shares issued      and outstanding. |
|--------|---------------------------------------------------------------------------------------------------------------------|

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| 6.     | RELATED      PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | During      the three month period ended October 31, 2008, a director advanced funds      to the Company totaling $9,695 (2007 - $20,592).  At October 31,      2008, an amount of $186,946 (July 31, 2008 - $177,251) was owed to this      director.  These advances are unsecured, non-interest bearing      and have no specific terms of repayment. On      October 4, 2006, under a restricted stock award agreement, the Company      issued 6,000,000 post-split shares of restricted common stock with a fair      value of $750,000 to the Company’s President.  These shares have      a vesting provision as follows: 2,100,000 shares vested immediately,      1,950,000 shares vest on October 3, 2007 and the final 1,950,000 shares      vest on October 3, 2008.  The fair value of the restricted stock      award amounted to $750,000 of which $262,500 was expensed on award and the      remaining $487,500 is being amortized on a straight line basis over the      vesting period.  Upon termination of employment between the      Company and its president, any shares not previously vested will be      forfeited and returned to the Company’s treasury. The      restricted stock award has been accounted for as deferred compensation      whereby the fair value of the award is recorded as a component of      stockholders’ deficit until earned by the award holder. At such time, the      appropriate amounts will be charged to operations. Pursuant      to this restricted stock award for the three month period ended October      31, 2008, the Company recorded stock based compensation of $39,700 (2007 -      $60,400).  As at October 31, 2008 the deferred stock      compensation has been fully expensed and $nil (July 31, 2008 - $39,700)      remaining as the unearned amount has been recorded as deferred stock      compensation. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 7.     | SUBSEQUENT    EVENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | During      December, 2008 the Company issued 801,924 common shares at a price of      $0.01 per share for total proceeds of$8,192.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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Item 2.       Management Discussion andAnalysis or Plan of Operations

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Table of Contents

|                                                                                                                                                              |   |          |      |   | Common           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|------------------|--------|
|                                                                                                                                                              |   | Cash          |      |   | Stock      to be |   |
|                                                                                                                                                              |   | Consideration |      |   | Issued           |   |
| Phase I –      Conditional upon receipt of Mining and Prospecting      Licenses                                                                             |   |          |      |   |             |   |
| Within      30 days of execution of agreement                                                                                                                     |   | $             | 60,000    |   |             |   | - |   |
| Within      60 days of execution of agreement                                                                                                                     |   |          | 80,000    |   |             |   | - |   |
| Within      90 days of execution of agreement                                                                                                                     |   |          | 80,000    |   |             |   | - |   |
| Within      120 days of execution of agreement                                                                                                                    |   |          | 80,000    |   |             |   | - |   |
| Within      150 days of execution of agreement                                                                                                                    |   |          | 80,000    |   |             |   | - |   |
|                                                                                                                                                              |   |          | 380,000   |   |             |   | - |   |
|                                                                                                                                                              |   |          |      |   |             |   |   |   |
| Phase II – Within 90      days of completion of Phase I including      geological work to be done by Canafra                                                |   |          | 380,000   |   |             |   | 2,000,000 |   |
|                                                                                                                                                              |   |          |      |   |             |   |   |   |
| Phase III – Within      90 days of completion of Phase II orwithin      a mutually agreed timeframe, including further      geological work done by Canafra |   |          | 340,000   |   |             |   | 2,000,000 |   |
|                                                                                                                                                              |   |          |      |   |             |   |   |   |
|                                                                                                                                                              |   | $             | 1,100,000 |   |             |   | 4,000,000 |   |

Item3.       Quantativeand Qualitative Disclosure About Market Risk

Item4.       Controlsand Procedures

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PART II - OTHER INFORMATION

Item 1.       LegalProceedings

Item 1A.    Risk Factors

Item 2.       Unregistered Sales ofEquity Securities and Use of Proceeds

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Item 3.       Defaults Upon SeniorSecurities

Item 4.       Submission of Matters toVote a of Security Holders

Item 5.       OtherInformation

Item 6.       Exhibits

| 31.1   | Certification of Chief Executive Officer      pursuant to Section 302 of the Sarbanes-Oxley Act of    2002. |
|--------|-------------------------------------------------------------------------------------------------------------|
|   |                                                                                                        |
| 31.2   | Certification of Chief Financial Officer      pursuant to Section 302 of the Sarbanes-Oxley Act of    2002. |

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SIGNATURES

|   | STELLAR      RESOURCES LTD. |                                  |
|--------|-----------------------------|---------------------------------------|
|   |                        |                                  |   |
|   | By:                         | /s/ Kathy      Whyte             |   |
|   |                        | Kathy      Whyte                      |   |
|   |                        | President,      Director, CEO and CFO |   |
|   |                        |                                  |   |

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