**UNITED          STATES**

**SECURITIES          AND EXCHANGE COMMISSION**

**FORM          10-QSB**

| [X]                    | Quarterly                    Report pursuant to Section 13 or 15(d) of the Securities Exchange                    Act of                    1934 |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |                                                                                                                                             |
|                   | For                    the quarterly period ended September                    30, 2006                                                          |
|                   |                                                                                                                                             |
| [                    ] | Transition                    Report pursuant to 13 or 15(d) of the Securities Exchange Act                    of                    1934        |
|                   |                                                                                                                                             |
|                   | For                    the transition period __________                     to __________                                              |
|                   |                                                                                                                                             |
|                   | Commission                    File Number: 000-51013                                                                                             |

| Delaware                                                                                                   | 76-0730088                                           |
|------------------------------------------------------------------------------------------------------------|------------------------------------------------------|
| (State                    or other jurisdiction of incorporation or                    organization)  | (IRS                    Employer Identification No.) |

| #208-8                    King Street East, Toronto, Ontario, Canada M5C 1B5 |
|------------------------------------------------------------------------------|
| (Address                    of principal executive offices)                  |

| 416-203-3856                                                                                                                                |
|---------------------------------------------------------------------------------------------------------------------------------------------|
| (Issuer’s                    telephone number)                                                                                        |
|  _______________________________________________________________                                                                       |
| (Former                    name, former address and former fiscal year, if changed since                    last                    report) |

----

Table              of Contents

|                                                          | TABLE                    OF CONTENTS                                                              |   Page |
|---------------------------------------------------------------|---------------------------------------------------------------------------------------------------|------------------|
|  PART                    I - FINANCIAL INFORMATION  |
| Item                    1.                                    | Financial                    Statements                                                           | 3                |
| Item                    2.                                    | Management’s                    Discussion and Analysis                                     | 4                |
| Item                    3.                                    | Controls                    and Procedures                                                        | 15               |
|  PART                    II - OTHER INFORMATION     |
| Item                    1.                                    | Legal                    Proceedings                                                              | 17               |
| Item                    2.                                    | Unregistered                    Sales of Equity Securities and Use of                    Proceeds | 17               |
| Item                    3.                                    | Defaults                    Upon Senior Securities                                                | 18               |
| Item                    4.                                    | Submission                    of Matters to a Vote of Security                    Holders         | 18               |
| Item                    5.                                    | Other                    Information                                                              | 19               |
| Item                    6.                                    | Exhibits                                                                                          | 19               |

----

Table              of Contents

**PART          I - FINANCIAL INFORMATION**

**Item          1.** **     Financial          Statements**

| Our                    unaudited consolidated                    financial statements included in this Form 10-QSB are as                    follows: |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|  F-1                                                                                                                                             |  Unaudited                    Interim Consolidated Balance Sheet as of September                    30, 2006 |
|  F-2                                                                                                                                             |  Unaudited                    Interim Consolidated Statements                    of Operations for the three and nine months ended September 30,                    2006 and                    2005 and from inception (March 25, 2003) through September 30,                    2006 |
|  F-3                                                                                                                                             |  Unaudited                    Interim Consolidated Statements of Stockholders’                    Equity (deficiency) for the period from inception (March 25,                    2003) through                    September 30, 2006 |
|  F-4                                                                                                                                             |  Unaudited                    Interim Consolidated Statements of Cash Flows for the                    nine months ended September 30, 2006 and 2005 |
|  F-5                                                                                                                                             |  Notes                    to Unaudited Interim Consolidated Financial                    Statements |

----

Table            of Contents

**COLOMBIA        GOLDFIELDS LTD.**

**(An        Exploration Stage Company)**

**INTERIM        CONSOLIDATED BALANCE SHEETS**

| *U.S.                  Dollars*                                                     |   | **September****30,****2006** |   | **December****31,****2005**  |
|-------------------------------------------------------------------------------------|--------|------------------------------|--------|------------------------------|
| **ASSETS**                                                                          |   | **(unaudited)**              |   |                         |
|                                                                                |   |                         |   |                         |
| **Current**                                                                         |   |                         |   |                         |
|                                                                                |   |                         |   |                         |
| Cash                  and cash equivalents                                          | $      | 3,225,396                    |   | $                  1,565,640 |
| Prepaid                  expenses                                                   |   | 733,404                      |   | 22,554                       |
| Due                  from related parties (Note 6)                                  |   | -                            |   | 158,202                      |
|                                                                                |   | 3,958,800                    |   | 1,746,396                    |
|                                                                                |   |                         |   |                         |
| Mineral                  and exploration properties and rights (Note 3)             |   | 28,988,058                   |   | -                            |
| Property                  and equipment, net of accumulated amortization (Note 4)   |   | 353,899                      |   | 1,445                        |
| Website                  Development Cost, net of accumulated amortization (Note 4) |   | 23,500                       |   | 17,500                       |
|                                                                                |   |                         |   |                         |
|                                                                                | $      | 33,324,257                   |   | $                  1,765,341 |
|                                                                                |   |                         |   |                         |
| **LIABILITIES**                                                                     |
|                                                                                |   |                         |   |                         |
| **Current**                                                                         |   |                         |   |                         |
|                                                                                |   |                         |   |                         |
| Accounts                  payable and accrued liabilities                           | $      | 4,807,657                    |   | $                  83,004    |
|                                                                                |   |                         |   |                         |
| **Non-Current**                                                                     |   |                         |   |                         |
|                                                                                |   |                         |   |                         |
| Future                  income tax liability (Note 3)                               |   | 4,974,252                    |   | -                            |
|                                                                                |   | 9,781,909                    |   | 83,004                       |
| **STOCKHOLDERS’                  EQUITY**                                     |   |                         |   |                         |
|                                                                                |
| **Common                  stock (Notes 5 and 10)**                                  |   | 490                          |   | 296                          |
|                                                                                |   |                         |   |                         |
| **Additional                  paid-in capital (Note 5)**                            |   | 29,973,307                   |   | 1,465,354                    |
|                                                                                |   |                         |   |                         |
| **Share                  subscriptions (Note 5)**                                   |   | -                            |   | 1,767,650                    |
|                                                                                |   | 29,973,797                   |   | 3,233,300                    |
| **Accumulated                  deficit**                                            |   | (6,431,449)                  |   | (1,550,963)                  |
|                                                                                |   | 23,542,348                   |   | 1,682,337                    |
|                                                                                | $      | 33,324,257                   |   | $                  1,765,341 |

**See        accompanying Notes to Consolidated Financial Statements**

----

Table              of Contents

**COLOMBIA        GOLDFIELDS LTD.**
**(An          Exploration Stage Company)**

**INTERIM          CONSOLIDATED STATEMENTS OF OPERATIONS**

|       *U.S.                  Dollars*                                               |  **Three****Months****Ended****September                          30,****2006****(unaudited)** |        |  **Three****Months****Ended****September                          30,****2005****(unaudited)** |   |  **Nine****Months****Ended****September                          30,****2006****(unaudited)** |   |  **Nine****Months****Ended****September                          30,****2005****(unaudited)** |        | **Cumulative                          from****inception****(March                          25,****2003)****September                          30,****2006****(unaudited)** |
|-------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-------------|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                              |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |
| **REVENUES**                                                                                                      | $                                                                                                   | -           |                                                                                                | $      | -                                                                                                  |   | $                                                                                                  | -           |                                                                                                                                                                       | $ | - |   | $ | - |
|                                                                                                              |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
| **OPERATING                  EXPENSES**                                                                           |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
|                                                                                                              |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
| Mineral                  property rights exploration expenses (Notes 3 and 5)                                     |                                                                                                | 1,074,629   |                                                                                                |   | 260,000                                                                                            |   |                                                                                               | 2,187,686   |                                                                                                                                                                       |   | 260,000 |   |   | 3,332,450 |
| General                  and administrative (Note 5)                                                              |                                                                                                | 919,698     |                                                                                                |   | 79,091                                                                                             |   |                                                                                               | 2,776,293   |                                                                                                                                                                       |   | 79,091 |   |   | 3,188,483 |
| Amortization                                                                                                      |                                                                                                | 2,059       |                                                                                                |   | 134                                                                                                |   |                                                                                               | 19,694      |                                                                                                                                                                       |   | 134 |   |   | 23,529 |
| Total                  operating expenses                                                                         |                                                                                                | 1,996,386   |                                                                                                |   | 339,225                                                                                            |   |                                                                                               | 4,983,673   |                                                                                                                                                                       |   | 339,225 |   |   | 6,544,462 |
| Other                  income                                                                                     |                                                                                                | (50,764)    |                                                                                                |   | -                                                                                                  |   |                                                                                               | (103,187)   |                                                                                                                                                                       |   | - |   |   | (103,186) |
| Loss                  from continuing operations                                                                  |                                                                                                | (1,945,622) |                                                                                                |   | (339,225)                                                                                          |   |                                                                                               | (4,880,486) |                                                                                                                                                                       |   | (339,225) |   |   | (6,441,276) |
|                                                                                                              |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
| Income                    (loss) from discontinued operations (Note 1)                                            |                                                                                                | -           |                                                                                                |   | -                                                                                                  |   |                                                                                               | -           |                                                                                                                                                                       |   | (108,760) |   |   | 9,827 |
|                                                                                                              |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
| **NET                  LOSS**                                                                                     | $                                                                                                   | (1,945,622) |                                                                                                | $      | (339,225)                                                                                          |   | $                                                                                                  | (4,880,486) |                                                                                                                                                                       | $ | (447,985) |   | $ | (6,431,449) |
|                                                                                                              |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
| **LOSS                  PER SHARE- BASIC & DILUTED**                                                          |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
|                                                                                                              |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
| Loss                  from continuing operations                                                                  | $                                                                                                   | (0.04)      |                                                                                                | $      | (0.01)                                                                                             |   | $                                                                                                  | (0.12)      |                                                                                                                                                                       | $ | (0.01) |   |   |   |
| Loss                  from discontinued operations                                                                |                                                                                                | -           |                                                                                                |   | -                                                                                                  |   |                                                                                               | -           |                                                                                                                                                                       |   | (0.01) |   |   |   |
|                                                                                                              |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
| NET                  LOSS PER SHARE-BASIC & DILUTED                                                           | $                                                                                                   | (0.04)      |                                                                                                | $      | (0.01)                                                                                             |   | $                                                                                                  | (0.12)      |                                                                                                                                                                       | $ | (0.02) |   |   |   |
| **WEIGHTED                  AVERAGE****NUMBER                  OF COMMON****SHARES                  OUTSTANDING** |                                                                                                |        |                                                                                                |   |                                                                                               |   |                                                                                               |        |                                                                                                                                                                       |   |   |   |   |   |
| Basic                  and diluted                                                                                |                                                                                                | 45,079,035  |                                                                                                |   | 24,097,826                                                                                         |   |                                                                                               | 39,513,913  |                                                                                                                                                                       |   | 24,032,967 |   |   |   |

**See        accompanying Notes to Consolidated Financial Statements**

----

Table              of Contents

**COLOMBIA          GOLDFIELDS LTD.**

**(An          Exploration Stage Company)**

**INTERIM          CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY**

|    *U.S.                  Dollars*                                                                                                                           |    CommonShares |        |    StockAmount |   |   AdditionalPaid-inCapital |   | Share                  Subscriptions                  received |      | DeficitAccumulated                  During                  TheExplorationStage |   |  TotalStockholders’                  Equity(Deficiency) |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-------------|-------------------------------|--------|--------------------------------------|--------|----------------------------------------------------------------|-----------|---------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |
| Issue                  of common stock for cash at                  $0.000125 per                  share on March                  25, 2003                                 |                           | 8           |                          | $      | -                                    |   | $                                                              | 1         |                                                                            | $      | -                                                                  |   | $ | - |   | $ | 1 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Issue                  of common stock for cash at                  $0.000125 per                  share on May                  5, 2003                                    |                           | 16,000,000  |                          |   | 160                                  |   |                                                           | 1,840     |                                                                            |   | -                                                                  |   |   | - |   |   | 2,000 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Repurchase                  of common stock for cash at $0.000125 per                  share on October 31, 2003                                                            |                           | (8,000,008) |                          |   | (80)                                 |   |                                                           | (920)     |                                                                            |   | -                                                                  |   |   | - |   |   | (1,000) |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Donated                  Capital                                                                                                                                            |                           | -           |                          |   | -                                    |   |                                                           | 35,200    |                                                                            |   | -                                                                  |   |   | - |   |   | 35,200 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Net                  loss for the twelve months ended December 31, 2003.                                                                                                    |                           | -           |                          |   | -                                    |   |                                                           | -         |                                                                            |   | -                                                                  |   |   | (36,399) |   |   | (36,399) |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Balance,                  December 31, 2003                                                                                                                                 |                           | 8,000,000   |                          |   | 80                                   |   |                                                           | 36,121    |                                                                            |   | -                                                                  |   |   | (36,399) |   |   | (198) |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Issue                  of common stock for cash                  at $0.00625 per                  share on                  December 20, 2004                               |                           | 16,000,000  |                          |   | 160                                  |   |                                                           | 99,840    |                                                                            |   | -                                                                  |   |   | - |   |   | 100,000 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Donated                  Capital                                                                                                                                            |                           | -           |                          |   | -                                    |   |                                                           | 19,200    |                                                                            |   | -                                                                  |   |   | - |   |   | 19,200 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Net                  loss for the twelve months ended December 31, 2004.                                                                                                    |                           | -           |                          |   | -                                    |   |                                                           | -         |                                                                            |   | -                                                                  |   |   | (23,094) |   |   | (23,094) |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Balance,                  December 31, 2004                                                                                                                                 |                           | 24,000,000  |                          |   | 240                                  |   |                                                           | 155,161   |                                                                            |   | -                                                                  |   |   | (59,493) |   |   | 95,908 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Issue                  of common stock for Mineral                  concessions at                  $0.25 per share on September 22, 2005                                   |                           | 1,000,000   |                          |   | 10                                   |   |                                                           | 249,990   |                                                                            |   | -                                                                  |   |   | - |   |   | 250,000 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Issue                  of 4,221,000 common stock for cash at $0.25 per                  share and 368,100 common stock for finders fee                  on October 14, 2005 |                           | 4,589,100   |                          |   | 46                                   |   |                                                           | 1,055,204 |                                                                            |   | -                                                                  |   |   | - |   |   | 1,055,250 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Forgiveness                  of advances from a related party                                                                                                               |                           |        |                          |   |                                 |   |                                                           | 4,999     |                                                                            |   | -                                                                  |   |   | - |   |   | 4,999 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Share                  Subscriptions Received                                                                                                                               |                           | -           |                          |   | -                                    |   |                                                           | -         |                                                                            |   | 1,767,650                                                          |   |   | - |   |   | 1,767,650 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Net                  loss for the twelve months ended December 31, 2005                                                                                                     |                           | -           |                          |   | -                                    |   |                                                           | -         |                                                                            |   | -                                                                  |   |   | (1,491,470) |   |   | (1,491,470) |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |
| Balance,                  December 31, 2005                                                                                                                                 |                           | 29,589,100  |                          | $      | 296                                  |   | $                                                              | 1,465,354 |                                                                            | $      | 1,767,650                                                          |   | $ | (1,550,963) |   | $ | 1,682,337 |
|                                                                                                                                                                        |                           |        |                          |   |                                 |   |                                                           |      |                                                                            |   |                                                               |   |   |   |   |   |   |

| Issue                  of common stock for cash at $0.60 per share                  on January 24, 2006, net of $187,565 finders fee |   | 3,126,083 |   |   | 31     |   |   | 1,688,054 |   |   | (1,767,650) |   |   | -      |   |   | (79,565) |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|-----------|--------|--------|-------------|--------|--------|--------|--------|--------|----------|
|                                                                                                                                 |   |      |   |   |   |   |   |      |   |   |        |   |   |   |   |   |     |

| Issue                  of common stock for Mineral                  concessions at                  $1.90 per share on January 25, 2006 |   | 1,000,000 |   |   | 10     |   |   | 1,899,990 |   |   | -      |   |   | -      |   |   | 1,900,000 |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|
|                                                                                                                                    |   |      |   |   |   |   |   |      |   |   |   |   |   |   |   |   |      |

| Issue                    of common stock For                    Mineral concession at $2.25                    per share purchase on                    April 10, 2006 |   | 1,000,000 |   |   | 10     |   |   | 2,249,990 |   |   | -      |   |   | -      |   |   | 2,250,000 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|
|                                                                                                                                                                   |   |      |   |   |   |   |   |      |   |   |   |   |   |   |   |   |      |

| Issue                  of common stock for                  cash at $1.50 per unit                  (commons shares & warrants) less finders fee                  of $585,060 on April                  26, 2006 |   | 6,500,666 |   |   | 65     |   |   | 6,416,112 |   |   | -      |   |   | -      |   |   | 6,416,177 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|
|                                                                                                                                                                                                                 |   |      |   |   |   |   |   |      |   |   |   |   |   |   |   |   |      |

| Issue                  of share purchase warrants with April 26, 2006 common                  stock issuance |   | -      |   |   | -      |   |   | 2,749,762 |   |   | -      |   |   | -      |   |   | 2,749,762 |
|--------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|
|                                                                                                         |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |      |

| Issue                  of common stock for Mineral                  concessions of                  $2.74 Per                  share purchase on April                  28, 2006 |   | 2,000,000 |   |   | 20     |   |   | 5,479,980 |   |   | -      |   |   | -      |   |   | 5,480,000 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|
|                                                                                                                                                                             |   |      |   |   |   |   |   |      |   |   |   |   |   |   |   |   |      |

| Issue                  of common stock for mineral concessions at                  $1.10 per share on August 22, 2006. |   | 4,200,000 |   |   | 42     |   |   | 4,619,958 |   |   | -      |   |   | -      |   |   | 4,620,000 |
|------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|
|                                                                                                                   |   |      |   |   |   |   |   |      |   |   |   |   |   |   |   |   |      |

| Issue                  of common stock for mineral concessions at                  $1.41 per share on September 25, 2006 |   | 1,150,000 |   |   | 16     |   |   | 1,621,484 |   |   | -      |   |   | -      |   |   | 1,621,500 |
|--------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|
|                                                                                                                     |   |      |   |   |   |   |   |      |   |   |   |   |   |   |   |   |      |

| Stock                  based compensation                              |   | -          |   |   | -      |   |   | 1,782,623  |   |   | -      |   |   | -           |   |   | 1,782,623   |
|------------------------------------------------------------------------|--------|------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|-------------|--------|--------|-------------|
|                                                                   |   |       |   |   |   |   |   |       |   |   |   |   |   |        |   |   |        |
| Net                  loss for the nine months ended September 30, 2006 |   | -          |   |   | -      |   |   | -          |   |   | -      |   |   | (4,880,486) |   |   | (4,880,486) |
| Balance                  September 30, 2006                            |   | 48,565,849 |   | $      | 490    |   | $      | 29,973,307 |   |   | -      |   | $      | (6,431,449) |   | $      | 23,542,348  |

**See        accompanying Notes to Consolidated Financial Statements**

----

Table              of Contents

**COLOMBIA          GOLDFIELDS LTD.**

**(An          Exploration Stage Company)**

**INTERIM          CONSOLIDATED STATEMENTS OF CASH FLOWS**

|        *U.S.                  Dollars* |   **Nine****Months****Ended****September                          30,****2006****(unaudited)** |        |   **Nine****Months****Ended****September                          30,****2005****(unaudited)** |   | **Cumulative****From****Inception****(March                            25, 2003)****Through****September                            30,****2006****(unaudited)** |
|---------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|-------------|----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                      |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |
| **OPERATING                  ACTIVITIES:**                                |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |
| Net                  loss                                                 |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |
| Items                  not requiring cash outlay:                         | $                                                                                                        | (4,880,486) |                                                                                                     | $      | (447,985)                                                                                                                                                        |   | $                  (6,431,449) |
| -                  Consulting fees                                        |                                                                                                     | -           |                                                                                                     |   | -                                                                                                                                                                |   | 52,400 |
| -                  Website design and software development                |                                                                                                     | -           |                                                                                                     |   | -                                                                                                                                                                |   | 2,000 |
| -                  Amortization                                           |                                                                                                     | 19,694      |                                                                                                     |   | 201                                                                                                                                                              |   | 23,529 |
| -                  Mineral properties/rights acquisitions                 |                                                                                                     | -           |                                                                                                     |   | 250,000                                                                                                                                                          |   | 250,000 |
| -                  Stock based compensation                               |                                                                                                     | 1,782,623   |                                                                                                     |   | -                                                                                                                                                                |   | 1,782,623 |
| Changes                  in non-cash working capital items                |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |
| -                  Accounts receivable and prepaid expenses               |                                                                                                     | (710,850)   |                                                                                                     |   | (499,090)                                                                                                                                                        |   | (733,404) |
| -                  Exploration expenditure advances                       |                                                                                                     | -           |                                                                                                     |   |                                                                                                                                                             |   | (158,202) |
| -                  Accounts payable and accrued liabilities               |                                                                                                     | 1,793,380   |                                                                                                     |   | 31,317                                                                                                                                                           |   | 1,876,384 |
| -                  Due to/from related parties                            |                                                                                                     | 158,202     |                                                                                                     |   | (5,172)                                                                                                                                                          |   | 163,201 |
| Net                  cash provided by operating activities                |                                                                                                     | (1,837,437) |                                                                                                     |   | (670,729)                                                                                                                                                        |   | (3,172,918) |
|                                                                      |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |
| **FINANCING                  ACTIVITIES:**                                |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |
| Issuance                  of securities net of finder fees                |                                                                                                     | 9,086,374   |                                                                                                     |   | 1,020,250                                                                                                                                                        |   | 10,242,625 |
| Proceeds                  of share subscription                           |                                                                                                     | -           |                                                                                                     |   | -                                                                                                                                                                |   | 1,767,650 |
| Net                  cash provided by financing activities                |                                                                                                     | 9,086,374   |                                                                                                     |   | 1,020,250                                                                                                                                                        |   |   | 12,010,275 |
|                                                                      |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |   |
| **INVESTING                  ACTIVITIES:**                                |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |   |
| Purchase                  of mineral exploration rights                   |                                                                                                     | (5,211,033) |                                                                                                     |   | -                                                                                                                                                                |   |   | (5,211,033) |
| Purchase                  of equipment                                    |                                                                                                     | (378,148)   |                                                                                                     |   | (1,780)                                                                                                                                                          |   |   | (379,928) |
| Purchase                  of website                                      |                                                                                                     | -           |                                                                                                     |   | (21,000)                                                                                                                                                         |   |   | (21,000) |
| Net                  cash used in investing activities                    |                                                                                                     | (5,589,181) |                                                                                                     |   | (22,780)                                                                                                                                                         |   |   | (5,611,961) |
|                                                                      |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |   |
| **INCREASE                  IN CASH**                                     |                                                                                                     | 1,659,756   |                                                                                                     |   | 326,741                                                                                                                                                          |   |   | 3,225,396 |
|                                                                      |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |   |
| **CASH                  AND CASH EQUIVALENTS AT BEGINNING OF PERIOD**     |                                                                                                     | 1,565,640   |                                                                                                     |   | 104,685                                                                                                                                                          |   |   | - |
|                                                                      |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |   |
| **CASH                  AND CASH EQUIVALENTS AT END OF PERIOD**           | $                                                                                                        | 3,225,396   |                                                                                                     | $      | 431,426                                                                                                                                                          |   | $ | 3,225,396 |
|                                                                      |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |   |
| **SUPPLEMENTAL                  CASH FLOW INFORMATION**                   |                                                                                                     |        |                                                                                                     |   |                                                                                                                                                             |   |   |   |
| Interest                  expense                                         | $                                                                                                        | -           |                                                                                                     | $      | -                                                                                                                                                                |   | $ | - |
| Taxes                                                                     | $                                                                                                        | -           |                                                                                                     | $      | -                                                                                                                                                                |   | $ | - |

**See        accompanying Notes to Consolidated Financial Statements**

----

Table              of Contents

**COLOMBIA          GOLDFIELDS LTD.**

**(An          Exploration Stage Company)**

**NOTES          TO THE INTERIM CONSOLIDATED FINANCIAL          STATEMENTS**

----

**NOTE          1 - GOING CONCERN AND NATURE OF OPERATIONS**

**NOTE        2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Basis        of presentation**

**Use        of Estimates**

----

Table              of Contents

**COLOMBIA          GOLDFIELDS LTD.**

**(An          Exploration Stage Company)**

**NOTES          TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

**NOTE        2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)**

**Consolidation        **

*Consolidation        of Variable Interest Entities *

----

Table            of Contents

**COLOMBIA        GOLDFIELDS LTD.**

**(An        Exploration Stage Company)**

**NOTES        TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

**Mineral        Property Rights Acquisition and Exploration Expenditures**

*Accounting        for Impairment or Disposal of Long-Lived Assets.*

**Asset        Retirement Obligations**

*Accounting        for Assets Retirement Obligations*

**Cash        and Cash Equivalents**

**Property        and Equipment**

| **Asset**                                         | **Basis**                      | **Period**                |
|---------------------------------------------------|--------------------------------|---------------------------|
|                                              |                           |                      |
| Vehicles                                          | Straight                  line | 5                  years  |
| Buildings                                         | Straight                  line | 20                  years |
| Office                  equipment & furniture | Straight                  line | 10                  years |

----

Table              of Contents

**COLOMBIA          GOLDFIELDS LTD.**

**(An          Exploration Stage Company)**

**NOTES          TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

**Comprehensive        Income**

*Reporting        Comprehensive Income*

**Stock-Based        Compensation**

*Share-Based        Payment*

**Foreign        Currency Translation**

| ii) | Non-monetary                  assets are translated at the rate of exchange in effect at their                  acquisition date; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| iii) | Revenue                  and expense items are translated at the average exchange rate for                  the                  respective period. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

**Earnings        (Loss) per Share**

----

Table            of Contents

**COLOMBIA        GOLDFIELDS LTD.**

**(An        Exploration Stage Company)**

**NOTES        TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

**Income        taxes**

**Long-Lived        assets **

*Accounting        for the Impairment or Disposal of Long-Lived Assets.*

**Financial        Instruments**

**NOTE        3 - MINERAL PROPERTIES AND EXPLORATION RIGHTS**

----

Table              of Contents

**COLOMBIA        GOLDFIELDS LTD.**

**(An        Exploration Stage Company)**

**NOTES        TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

**A)        Caramanta Project **

| a)   | $500,000                upon the closing of the Assignment                Agreement; |
|----------------|--------------------------------------------------------------------------------------|
| b)   | $750,000                during the 12 month period commencing June 25, 2006; and on the earlier                of                June, 2006 or commencement of the second exploration phase, one million                restricted shares of the Company’s common shares;                and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| c)   | $1,740,000                during the 12-month period commencing June 25,                2007. |
|----------------|-----------------------------------------------------------------------------------------------|

----

Table            of Contents

**COLOMBIA        GOLDFIELDS LTD.**

**(An        Exploration Stage Company)**

**NOTES        TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

| Mineral                  and exploration properties and rights | $      | 1,780,841 |
|----------------------------------------------------------------|--------|-----------|
| Property,                  plant and equipment                 |   | 190,659   |
|                                                           | $      | 1,971,500 |

**B)        Marmato Project**

| a)   | acquired                25% of the outstanding shares of RNC (total 25% of RNC) by the issuance                of                1,000,000 common shares of the Company to Investcol and the advance                to RNC                of a $1,200,000 non-interest bearing loan. Total consideration of                $2,250,000 related to this transaction was recorded as part mineral                and                exploration properties and rights in fiscal                2006. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b)   | acquired                an additional 25% of RNC (total 50% of RNC) by the issuance of 2,000,000                shares of the Company to Investcol and the advance of an additional                $4,000,000 non-interest bearing loan to RNC in two instalments of                $1,000,000 and $3,000,000 on or before March 15, 2006 and April 30,                2006,                respectively. On March 10, 2006, the Company entered an extension                agreement with Investcol to extend the terms to April, 30, 2006,                and                completed the transaction on April 28, 2006. Total consideration                of                $5,480,000 related to this transaction was recorded as part of mineral                and                exploration properties and rights in fiscal                2006. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table            of Contents

**COLOMBIA          GOLDFIELDS LTD.**

**(An          Exploration Stage Company)**

**NOTES          TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

| c)   | held                  an option to acquire an additional 25% of RNC (total 75% of RNC)                  by the                  issuance of 4,000,000 common shares of the Company to Investcol                  and the                  advance of an additional $15,000,000 non-interest bearing loan                  to RNC on                  or before October 30, 2006. On                  August 22, 2006, the Company amended its January 12, 2006 Stock                  Purchase                  Agreement with Investcol and RNC (Colombia) Limited and concurrently                  exercised its option to increase the Company’s interest in RNC from 50% to                  75%. Under the terms of the amended agreement, the Company issued                  4,200,000 common shares and paid $200,000 to Investcol. In connection                  with                  this transaction, the Company has committed to provide an additional                  $5,000,000 by way of non-interest bearing demand loan to Investcol                  by                  December 31, 2006 and provide sufficient funds to RNC, upon terms                  satisfactory to the Company, to complete a full bankable feasibility                  study                  of the Marmato Project. Total consideration of $4,820,000 related                  to this                  transaction was recorded as part of mineral and exploration properties                  and                  rights in fiscal 2006. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| d)   | has                  the option to acquire an additional 25% of RNC (total 100% of RNC)                  until                  May 1, 2009 for a price equal to 25% of the value of Caldas determined                  by                  a bankable feasibility study prepared by a certified mineral property                  evaluator, or other acceptable third party. Payment of the purchase                  price                  can be made by the Company in either cash or the Company’s common shares.                  Under                  the terms of the August 22, 2006 amended agreement, the Company                  continues                  to hold an option to acquire the remaining 25% of RNC on or before                  May 1,                  2009 for a purchase price equal to 25% of the fair value of Caldas                  determined by a feasibility study. The purchase price, pursuant                  to the                  amended agreement is limited to a maximum of $15,000,000 plus 4,000,000                  shares of the Company. Payment of the purchase price can be satisfied                  in                  either cash or common shares of the Company, or any combination                  thereof.                  As at September 30, 2006 this option remains                  unexercised. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**C)        Kedahda Properties**

**Mineral        Property Rights Acquisition and Exploration Expenditures**

| I)   | The                acquisition of mineral concessions; |
|----------------|--------------------------------------------------------|
| II)   | The                acquisition of mineral and exploration rights from existing titleholders;                and |
|-----------------|-----------------------------------------------------------------------------------------------------------------|
| III)   | The                exploration of acquired mineral properties and related                activities |
|------------------|-----------------------------------------------------------------------------------------------------|
| IV)   | Stock-based                compensation allocated pursuant to FAS                123(R) |
|-----------------|-----------------------------------------------------------------------------------------|

----

Table              of Contents

**COLOMBIA            GOLDFIELDS LTD.**

**(An            Exploration Stage Company)**

**NOTES            TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

|   |                                                                                                                                       |    **Three                  Months Ended****September                  30, 2006** |       |    **Three                  Months****Ended****September                  30,****2005** |   |    **Nine                  Months****Ended****September                  30,****2006** |   |    **Nine                  Months****Ended****September                  30,****2005** |       | **Cumulative****From****Inception****(March                  25, 2003****Through****September                  30,****2006)** |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                       |                                                                                             |       |                                                                                                   |   |                                                                                                  |   |                                                                                                  |       | **(See                  note 1)**                                                                                             |
| I)     | Acquisition                  of mineral                  concessions                                                                       | $                                                                                                | 7,100,841  |                                                                                                   | $      | -                                                                                                     |   | $                                                                                                     | 17,080,841 |                                                                                                                          | $ | - |   | $ | 17,080,841 |
| II)    | Acquisition                  of Mineral                  and exploration rights                                                            |                                                                                             | 2,966,087  |                                                                                                   |   | -                                                                                                     |   |                                                                                                  | 6,932,965  |                                                                                                                          |   | - |   |   | 6,932,965 |
|   | Total                  acquired Mineral                  and exploration properties                  and rights                            |                                                                                             | 10,066,928 |                                                                                                   |   | -                                                                                                     |   |                                                                                                  | 24,013,806 |                                                                                                                          |   | - |   |   | 24,013,806 |
| III)   | Exploration                  of acquired                  mineral                  properties                                              |                                                                                             | 1,034,990  |                                                                                                   |   | 260,000                                                                                               |   |                                                                                                  | 2,011,487  |                                                                                                                          |   | 260,000 |   |   | 3,156,251 |
| IV)    | Stock                  - based Compensation                                                                                                |                                                                                             | 39,639     |                                                                                                   |   | -                                                                                                     |   |                                                                                                  | 176,199    |                                                                                                                          |   | - |   |   | 176,199 |
|   | Total                  mineral property rights                  exploration expenses                                                       |                                                                                             | 1,074,629  |                                                                                                   |   | 260,000                                                                                               |   |                                                                                                  | 2,187,686  |                                                                                                                          |   | 260,000 |   |   | 3,332,450 |
|   | Total                  mineral property                  rights acquisition                  and exploration                  expenditures | $                                                                                                | 11,141,557 |                                                                                                   | $      | 260,000                                                                                               |   | $                                                                                                     | 26,201,492 |                                                                                                                          | $ | 260,000 |   | $ | 27,346,256 |

**Capitalized        Mineral and Exploration Properties and Rights**

----

Table              of Contents

**COLOMBIA          GOLDFIELDS LTD.**

**(An          Exploration Stage Company)**

**NOTES          TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

**NOTE        4 - PROPERTY AND EQUIPMENT**

|  **As                  at September 30, 2006**        |  **Cost** |       | **Accumulated****Amortization** |   | **Net                  book****Value** |
|------------------------------------------------------------|----------------|------------|---------------------------------|--------|----------------------------------------|
| Furniture                  and office equipment            | $              | 115,779    |                            | $      | (3,880)                                |   | $ | 111,899 |
| Buildings                                                  |           | 84,946     |                            |   | -                                      |   |   | 84,946 |
| Vehicles                                                   |           | 166,507    |                            |   | (9,453)                                |   |   | 157,054 |
|                                                       |           |       |                            |   |                                   |   |   |   |
| Total                                                      | $              | 367,232    |                            | $      | (13,333)                               |   | $ | 353,899 |
| Website                  development cost                  | $              | 36,000     |                            | $      | (12,500)                               |   | $ | 23,500 |
| Mineral                  exploration properties and rights | $              | 28,988,058 |                            | $      | -                                      |   | $ | 28,988,058 |

|  **As                  at December 31, 2005**         |  **Cost** |   | **Accumulated****Amortization** |   | **Net                  book****Value** |
|------------------------------------------------------------|----------------|--------|---------------------------------|--------|----------------------------------------|
| Furniture                  and office equipment            | $              | 1,780  |                            | $      | (335)                                  |   | $ | 1,445 |
| Website                  Development cost                  | $              | 21,000 |                            | $      | (3,500)                                |   | $ | 17,500 |
| Mineral                  exploration properties and rights | $              | -      |                            | $      | -                                      |   | $ | - |

**NOTE        5 - STOCKHOLDERS’ EQUITY**

**Common        Stock**

| i)   |   |
|----------------|--------|

|                                                                                                   | **September                  30, 2006** |   | **December                  31, 2005** |
|--------------------------------------------------------------------------------------------------------|-----------------------------------------|--------|----------------------------------------|
|                                                                                                   |                                    |   |                                   |
| **Authorized:**                                                                                        |                                    |   |                                   |   |   |
| 200,000,000                  common shares, $0.00001                  par value                        |                                    |   |                                   |   |   |
| **Issued                  and Outstanding:**                                                           |                                    |   |                                   |   |   |
| 48,565,849                    common shares, (December 31, 2005: 29,589,100                    shares) | $                                       | 490    |                                   | $ | 296 |

| a)   | On                  January 10, 2006, the Company issued 3,126,083 common shares at                  $0.60 per                  share for gross proceeds of $1,875,650. The Company paid finders                  fees in                  the amount of $187,565, for net proceeds of                  $1,688,085. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b)   | On                  February 14, 2006, the Company issued 1,000,000 common shares at                  fair                  value of $1.90 per share to Investcol in connection with the acquisition                  of 25% ownership of RNC (Colombia) Limited (See Note 3). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | On                  April 10, 2006, the Company issued 1,000,000 common shares at fair                  value                  of $2.25 per share to Investcol to acquire rights in certain properties                  in                  the Caramanta area of Colombia. (See Note                  3) |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table              of Contents

**COLOMBIA        GOLDFIELDS LTD.**

**(An            Exploration Stage Company)**

**NOTES            TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

| d)   | On                  April 26, 2006 the Company completed a private equity offering                  of                  6,500,666 Units at $1.50 per Unit to a total of 26 investors. Each                  Unit                  consists of one (1) share of common stock, par value $0.00001,                  and one (1)                  Warrant (the “Warrant”) to purchase one (1) share of common stock,                  exercisable for twenty-four (24) months from the closing of the                  offering.                  The exercise price for the Warrant is priced at $2.50. The gross                  proceeds                  received from this offering were $9,751,000. Assuming that all                  of the                  warrants are exercised by the investors, the gross proceeds received                  from                  the exercise of the Warrants will equal $16,251,665. In                    connection with this private equity offering, the Company paid                    as a                    commission $585,060 and issued warrants to purchase 390,040 shares                    of the                    Company’s common stock with each warrant exercisable for a period of                    thirty-six (36) months from the closing of the offering at the                    exercise                    price of $2.00 per share. Assuming that all of these warrants                    are                    exercised, the Company will receive gross proceeds of                    $780,080.The                    Company has allocated the total net proceeds from the offering                    of                    $9,165,939 to the various underlying equity instruments comprising                    the                    equity offering, based on the estimated relative fair value of                    each                    instrument at the offering date, as                    follows: |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Common                  shares                                        | $      | 65        |
|-----------------------------------------------------------------------|--------|-----------|
| Additional                  paid in capital - common shares           |   | 6,416,112 |
| Additional                  paid in capital - share purchase warrants |   | 2,749,762 |
| Total                  gross proceeds from private equity offering    | $      | 9,165,939 |

| e)   | On                  April 28, 2006, in connection with the acquisition of the second                  25% of                  RNC (Colombia) Limited, the Company issued 2,000,000 common shares                  at a                  fair value of $2.74 to Investcol. (See Note 3)                  . |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)   | On                  August 22, 2006 in connection with the acquisition of the third                  25% of RNC                  (Colombia) Limited, the Company issued 4,200,000 common shares                  at a value                  of $1.10 per share to Investcol. (See Note                  3). |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g)   | On                  September 25, 2006 in connection with the Company’s acquisition of 100% of                  the Caramanta Exploration Properties, the Company issued 1,150,000                  restricted common shares at a value of $1.41 (see Note                  3). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii)   | During                the fiscal year ended December 31, 2005, the                Company: |
|-----------------|--------------------------------------------------------------------------------------------|

| a)   | issued                  1,000,000 restricted common shares valued at an estimated market                  price of                  $0.25 per share, pursuant to an option to acquire a 100% interest                  in                  certain mining and mineral and exploration rights on three gold                  properties                  known as the Caramanta concessions in the Marmato Mountain mining                  district, Colombia. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | completed                a private placement and issued 4,221,000 units at a price of $0.25                per                share for net proceeds of $1,055,250. Each unit consisted of one                common                share and one non-transferable warrant, entitling the holder to acquire                one additional common share at a price of $0.50, exercisable on or                before                October 14, 2006. The Company also issued 368,100 shares as a finders’ fee                relating to this private offering. The Company has allocated the                total                gross proceeds from the offering of $1,055,250 to the various underlying                equity instruments comprising the equity offering, based on the estimated                relative fair value of each instrument at the offering date, as                follows: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table              of Contents

**COLOMBIA GOLDFIELDS LTD.**

**(An              Exploration Stage Company)**

**NOTES              TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

| Common                  shares                                        | $      | 46        |
|-----------------------------------------------------------------------|--------|-----------|
| Additional                  paid in capital - common shares           |   | 712,204   |
| Additional                  paid in capital - share purchase warrants |   | 343,000   |
| Total                  gross proceeds from private equity offering    | $      | 1,055,250 |

**Warrants**

| **#                  Warrants** | **Exercise                  Price** | **Expiry                  Date**                |
|---------------------------------|-------------------------------------|-------------------------------------------------|
| 4,589,100                       | $0.50                  per share    | October                  14, 2006 (see Note 10) |
| 6,500,666                       | $2.50                  per share    | April                  25, 2008                 |
| 390,040                         | $2.00                  per share    | April                  25, 2009                 |
| 11,479,806                      | $1.67                  per share    |                                            |

**Stock        Options**

|                                                                              | **Nine                  Months****Ended****September                  30,****2006** |      | **Nine                  Months****Ended****September                  30,****2005** |
|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------------|
| Mineral                  property rights acquisition and exploration expenditures | $                                                                                   | 176,199   |                                                                                |   | - |
| General                  and administrative                                       | $                                                                                   | 1,606,424 |                                                                                |   | - |
| Total                  stock-based compensation                                   | $                                                                                   | 1,782,623 |                                                                                |   | - |

----

Table            of Contents

** COLOMBIA GOLDFIELDS LTD.**

**(An            Exploration Stage Company)**

**NOTES            TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

|                                                       | **Number** |      | **Weighted****Average****Exercise****Price** |
|------------------------------------------------------------|------------|-----------|----------------------------------------------|
| Options                  outstanding at December 31, 2005  |       | -         |                                         | $ | - |
| Granted                  in fiscal 2006                    |       | 3,050,000 |                                         |   | 1.07 |
| Exercised                  in fiscal 2006                  |       | -         |                                         |   | - |
| Forfeited                  and expired in fiscal 2006      |       | -         |                                         |   | - |
| Options                  outstanding at September 30, 2006 |       | 3,050,000 |                                         | $ | 1.07 |

|                                       | **Nine                  Months****Ended****September                  30,****2006** |   | **Nine                  Months****Ended****September                  30,****2005** |
|--------------------------------------------|-------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|
| Weighted                  Average          |                                                                                |   |                                                                                |   |   |
| grant                  date fair           |                                                                                |   |                                                                                |   |   |
| value                  of options          | $                                                                                   | 1.17   |                                                                                | $ | - |
| granted                  during the period |                                                                                |   |                                                                                |   |   |
|                                       |                                                                                |   |                                                                                |   |   |
| Weighted                  average fair     | $                                                                                   | 1.14   |                                                                                | $ | - |
| Value                  of options vested   |                                                                                |   |                                                                                |   |   |
| during                  the period         |                                                                                |   |                                                                                |   |   |

|   **Range                  of****Exercise****Prices** |    **Number****Outstanding** |  **Weighted****Average****Exercise****Price** | **Weighted****Average****Remaining****Contractual****Life                  (yrs)** |    **Number****Exercisable** |  **Weighted****Average****Exercise****Price** |
|-----------------------------------------------------------------|---------------------------------------------|----------------------------------------------------|------------------------------------------------------------------------------------|---------------------------------------------|----------------------------------------------------|
| $0.75                  - $1.00                                  | 1,750,000                                   | $                  0.75                            | 9.27                                                                               | 437,500                                     | $0.75                                              |
| $1.01                  - $2.00                                  | 1,300,000                                   | 1.50                                               | 9.46                                                                               | 150,000                                     | 1.69                                               |
| $0.75                  - $2.00                                  | 3,050,000                                   | $                  1.07                            | 9.32                                                                               | 587,500                                     | $0.99                                              |

----

Table              of Contents

**COLOMBIA GOLDFIELDS LTD.**

**(An              Exploration Stage Company)**

**NOTES              TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

**NOTE        6 - RELATED PARTY TRANSACTIONS**

|   | a) | paid                  $229,501 (three month period ended September 30, 2005: $7,500)                  for                  management and consulting fees to directors, senior officers and                  shareholders of the Company. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | paid                $nil (three month period ended September 30, 2005: $4,275) for office                rent                to a company related to a director of the                Company. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | paid                  $500,251 (nine month period ended September 30, 2005: $15,000)                  for                  management and consulting fees to directors, senior officers and                  shareholders of the Company. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**NOTE        7 - SEGMENTED INFORMATION**

**Note        8 - NON-CASH ACTIVITIES**

**Note        9 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS**

----

Table              of Contents

**COLOMBIA        GOLDFIELDS LTD.**

**(An            Exploration Stage Company)**

**NOTES            TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

----

**NOTE        10 - SUBSEQUENT EVENTS**

**NOTE        11 - RECLASSIFICATIONS**

----

Table            of Contents

**Item              2.     Management’s Discussion and Analysis**

**Forward-Looking              Statements**

**Our              Business**

----

Table                    of Contents

**The              Caramanta and Marmato Projects**

**Marmato              Project**

| a)   | Acquired                        25% of the total outstanding shares of RNC by the issuance                        of 1,000,000 of                        our common shares to Investcol and the advance to RNC a $1,200,000                        non-interest bearing loan. We completed the acquisition of                        25% of RNC by                        the issuance of 1,000,000 shares of our restricted common                        stock to                        Investcol and the advancement of $1,200,000 by way of a non-interest                        bearing loan to RNC in the second quarter of fiscal 2006; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Acquired                        an additional 25% of RNC by issuance of 2,000,000 of our                        common shares to                        Investcol and the advance of an additional $4,000,000 non-interest                        bearing                        loan to RNC. We completed the acquisition of the second 25%                        of RNC by the                        issuance to Investcol of 2,000,000 shares of our restricted                        common stock                        and the advancement of $4,000,000 by way of a non-interest                        bearing demand                        loan to RNC in the second quarter of fiscal 2006; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | Held                        the option to acquire an additional 25% of RNC by the issuance                        of                        4,000,000 of our common shares to Investcol and the advance                        of an                        additional $15,000,000 non-interest bearing loan to RNC on                        or before                        October 30, 2006. On                        August 22, 2006 we amended the January 12, 2006 Stock Purchase                        Agreement                        with Investcol and RNC (Colombia) Limited |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table                    of Contents

|   | and                        concurrently exercised our option to increase interest in                        RNC from 50% to                        75% in the third quarter of fiscal 2006. Under the terms                        of the amended                        agreement, we issued 4,200,000 common shares and paid $200,000                        to                        Investcol. In connection with this transaction, we have committed                        to                        provide an additional $5,000,000 by way of non-interest bearing                        demand                        loan to Investcol by December 31, 2006 and provide sufficient                        funds to                        RNC, upon terms satisfactory to the Company, to complete                        a full bankable                        feasibility study of the Marmato Project;                        and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)   | Have                        the option to acquire the final 25% of RNC until May 1, 2009                        for a price                        equal to the 25% of the value of Caldas determined by a bankable                        feasibility study prepared by a certified mineral property                        evaluator, or                        other acceptable third party. Payment of the purchase price                        can be made by                        us in either cash or our common shares. The                        terms of the agreement were amended on August 22, 2006. Under                        the terms of                        the amended agreement, we continue to hold an option to acquire                        the                        remaining 25% of RNC on or before May 1, 2009 for a purchase                        price equal                        to 25% of the fair value of Caldas, as determined by a forthcoming                        feasibility study. The purchase price, pursuant to the amended                        agreement                        is limited to a maximum of $15,000,000 plus 4,000,000 shares                        of the                        Company. Payment of the purchase price can be satisfied in                        either cash or                        shares of our common stock, or any combination thereof. As                        of September                        30, 2006, we have not exercised our option to acquire the                        final 25% of                        RNC. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Caramanta              Project**

*Concessions              6602, 1343 and 6329*

----

Table                    of Contents

| a)   | $500,000                        upon the closing of the Assignment                        Agreement; |
|----------------|------------------------------------------------------------------------------------------------------|

| b)   | $750,000                        during the 12 month period commencing June 25, 2006; and                        on the earlier of                        June, 2006 or commencement of the second exploration phase,                        one million                        restricted shares of the Company’s common shares; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)   | $1,740,000                        during the 12-month period commencing June 25,                        2007. |
|----------------|---------------------------------------------------------------------------------------------------------------|

*Concessions              6993, 7039, 6821 and 6770 and HETJ 01, 26, 27, 31, and 32*

*)*

*Acquisition              of 100% of the Caramanta Exploration Properties*

----

Table                    of Contents

| Mineral                        and exploration properties and rights | $      | 1,780,841 |
|----------------------------------------------------------------------|--------|-----------|
| Property,                        plant and equipment                 |   | 190,659   |
|                                                                 | $      | 1,971,500 |

**The              Kedahda Properties**

----

Table                    of Contents

| Consultant                               | Consideration                                                                                                                                                                                                                                                  |
|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| J.                        Randall Martin | $10,000                        per month commencing May 1, 2006                                                                                                                                                                                                |
| Daniel                        Hunter     | $9,000                        per month plus applicable Canadian Goods and Services Tax                        (GST) as                        applicable at the time of each payment commencing on May                        1,                        2006  |
| Kenneth                        Phillippe | $3,000                        per month plus applicable Canadian Goods and Services Tax                        (GST) as                        applicable at the time of each payment commencing on May                        1, 2006                         |
| Harry                        Hopmeyer    | $5,000                        per month plus applicable Canadian Goods and Services Tax                        (GST) as                        applicable at the time of each payment commencing on May                        1,                        2006. |

**Results              of Operations for the three and nine months ended September 30, 2006              and              2005**

----

Table                    of Contents

| *i)  * | *The                        acquisition of mineral concessions*;                        to September 30, 2006 this has consisted primarily of payments                        for the                        assignment contracts and subsequent full legal titles associated                        with the                        Caramanta project, the acquisition of the Marmato project                        via our purchase                        of RNC (Colombia), and the purchase of the Kedahda properties.                        The                        concessions we acquire typically grant to the concessionaire,                        in an                        exclusive manner, the faculty to carry out within the given                        area, the                        studies, works and installations necessary in order to establish                        the                        existence of the minerals, and to exploit them according                        to the                        principles, rules and criteria belonging to the accepted                        techniques of                        geology and mining engineering. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *ii)  * | *The                        acquisition of mineral and exploration rights from existing                        titleholders*.                        This typically involves payments to affected landholders                        and related                        stakeholders. The procedure for payment is normally a payment                        of 25% of                        the total negotiated purchase price on signing, 25% of the                        total                        negotiated purchase price when all documentation has been                        submitted to the                        local mining department and the final 50% payments when the                        mining claim                        has been registered in our name. Satisfactory resolution                        of local                        landowner or relative concerns is essential to the eventual                        development                        and operation of modern gold mines on the Marmato project.                        As of September                        30, 2006, we have reached agreements with titleholders to                        secure 71 of 120                        titles deemed desirable in our business plan |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *iii)  * | *The                        evaluation of acquired mineral properties and related                        activities*.                        This typically involves the payment of salaries, wages, and                        other                        exploration costs in the host country directly attributable                        to field                        activities furthering our mineral concessions and rights. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table                    of Contents

**Liquidity              and Capital Resources**

|                                             | **September                        30, 2006** |      | **December                        31,****2005** |
|--------------------------------------------------|-----------------------------------------------|-----------|-------------------------------------------------|
| Cash                        and cash equivalents | $                                             | 3,255,396 |                                            | $ | 1,565,640 |
| Working                        capital           | $                                             | (848,857) |                                            | $ | 895,594 |

----

Table                    of Contents

**Off              Balance Sheet Arrangements **

**Going              Concern**

**Critical              Accounting Policies**

----

Table                    of Contents

*Accounting              for Impairment or Disposal of Long-Lived Assets.*

*Accounting              for Asset Retirement Obligations*

----

Table                    of Contents

*Share-Based              Payment*

| i) | Monetary                        assets and liabilities are translated at the period-end exchange                        rate; |
|----|-------------------------------------------------------------------------------------------------------------------------------|

| ii) | Non-monetary                        assets are translated at the rate of exchange in effect at                        their                        acquisition date; and |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii) | Revenue                        and expense items are translated at the average exchange                        rate for the                        respective period. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Recently              Issued Accounting Pronouncements**

----

Table                    of Contents

**Item              3.     Controls and Procedures**

----

Table                    of Contents

----

Table                    of Contents

**PART              II - OTHER INFORMATION**

**Item              1.     Legal              Proceedings**

**Item              2.     Unregistered Sales of Equity              Securities and Use of Proceeds**

----

Table                    of Contents

**Item              3.     Defaults upon Senior              Securities**

**Item              4.     Submission of Matters to a Vote of              Security Holders**

| Nominee                                      | Votes                        Cast For | Votes                        Cast Against | Votes                        Withheld |
|----------------------------------------------|---------------------------------------|-------------------------------------------|---------------------------------------|
|                                         |                                  |                                      |                                  |
| J.                        Randall Martin     | 29,967,723                            | 1,200                                     | 22,400                                |
| Daniel                        Hunter         | 29,967,923                            | 1,000                                     | 22,440                                |
| Harry                        Hopmeyer        | 29,968,723                            | 200                                       | 22,440                                |
| Thomas                        Ernest McGrail | 29,968,723                            | 200                                       | 22,440                                |
| Hernando                        Molina Velez | 29,967,923                            | 1,000                                     | 22,440                                |
| Robert                        E. Van Tassell | 29,966,623                            | 2,300                                     | 22,440                                |
| David                        Bikerman        | 29,968,923                            | 0                                         | 22,440                                |

| Votes                        Cast For |   | Votes                        Cast Against |   | Votes                        Withheld |
|---------------------------------------|--------|-------------------------------------------|--------|---------------------------------------|
| 29,975,423                            |   | 7,330                                     |   | 8,610                                 |

| Votes                        Cast For |   | Votes                        Cast Against |   | Votes                        Withheld |   | Not                        Voted |
|---------------------------------------|--------|-------------------------------------------|--------|---------------------------------------|--------|----------------------------------|
| 22,021,946                            |   | 210,525                                   |   | 186,630                               |   | 7,572,262                        |

----

Table                    of Contents

| Votes                        Cast For |   | Votes                        Cast Against |   | Votes                        Withheld |   | Not                        Voted |
|---------------------------------------|--------|-------------------------------------------|--------|---------------------------------------|--------|----------------------------------|
| 29,471,239                            |   | 199,567                                   |   | 320,556                               |   | 1                                |

| Votes                        Cast For |   | Votes                        Cast Against |   | Votes                        Withheld |   | Not                        Voted |
|---------------------------------------|--------|-------------------------------------------|--------|---------------------------------------|--------|----------------------------------|
| 22,235,576                            |   | 13,200                                    |   | 170,326                               |   | 7,572,261                        |

**Item              5.     Other              Information**

**Item              6.      Exhibits**

| **Exhibit****Number** | **Description                        of Exhibit**                                                                                                                                                                                                                                                |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                  | Certification                        of Chief Executive Officer pursuant to 18                        U.S.C. Section 1350, as adopted pursuant to Section 302 of                        the                        Sarbanes-Oxley Act of 2002                                                    |
| 31.2                  | Certification                        of Chief Financial Officer pursuant to 18                        U.S.C. Section 1350, as adopted pursuant to Section 302 of                        the                        Sarbanes-Oxley Act of 2002                                                    |
| 32.1                  | Certification                        of Chief Executive Officer and Chief                        Financial Officer pursuant to 18 U.S.C. Section 1350, as                        adopted pursuant                        to Section 906 of the Sarbanes-Oxley Act of                        2002 |

----

Table                    of Contents

**SIGNATURES**

|   | **Colombia                        Goldfields Ltd.**                                                                                                                                                                                                                                                                                                         |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                        |
| Date:  | November                        22, 2006                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                        |
|   | By:       /s/                        J. Randall Martin                 J.                        Randall MartinTitle:**    Chief                        Executive Officer and                        Director** |