U.S. SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the quarterly period ended August 31, 2006

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from _______ to _______

                         Commission file number 0-32593

                              REVELSTOKE INDUSTRIES, INC.
        (Exact name of small business issuer as specified in its charter)

            NEVADA                                                98-0441019
(State or other jurisdiction of                               (I.R.S. Employer
incorporation of organization)                               Identification No.)


                                1081 Kent Street
                          White Rock, British Columbia
                                 Canada V4B 4T2
                         (Address of Principal Executive Offices)

                                 (604) 240.8072
                           (Issuer's telephone number)

                                14977 21st Avenue
                            Surrey, British Columbia
                                 Canada V4A 8G3
              (Former name, former address and former fiscal year,
                          if changed since last report)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days.

                                        Yes   X       No
                                           _______      ______

Indicate by checkmark  whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).


                                        Yes          No   X
                                           _______      ______

<PAGE>


                    Applicable   only  to   issuers   involved   in   bankruptcy
proceedings during the preceding five years.

                                       N/A

         Check whether the Registrant  filed all documents  required to be filed
by  Section  12, 13 and 15(d) of the  Exchange  Act  after the  distribution  of
securities under a plan confirmed by a court.

                                        Yes           No
                                           _______      ______

                      Applicable only to corporate issuers

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

Class                                  Outstanding as of October 4, 2006

Common Stock, $.001 par value          9,300,000

Transitional Small Business Disclosure Format (check one)

     Yes      No  X


<PAGE>

PART I.  FINANCIAL INFORMATION                                                1

ITEM 1.  INTERIM FINANCIAL STATEMENTS

         BALANCE SHEETS                                                     F-1

         INTERIM STATEMENTS OF OPERATIONS                                   F-2

         INTERIM STATEMENTS OF CASH FLOWS                                   F-3

         NOTES TO INTERIM FINANCIAL STATEMENTS                        F-4 - F-8

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION OR PLAN OF OPERATION                                    2

ITEM 3.  CONTROLS AND PROCEDURES                                              6

PART II. OTHER INFORMATION                                                    7

ITEM 1.  LEGAL PROCEEDINGS                                                    7

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS                            7

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                                      7

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                  7

ITEM 5.  OTHER INFORMATION                                                    8

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                     8

SIGNATURES                                                                    9


<PAGE>

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS



                           REVELSTOKE INDUSTRIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                          INTERIM FINANCIAL STATEMENTS

                                 AUGUST 31, 2006

                                   (UNAUDITED)








BALANCE SHEETS

INTERIM STATEMENTS OF OPERATIONS

INTERIM STATEMENTS OF CASH FLOWS

NOTES TO INTERIM FINANCIAL STATEMENTS


                                       1

<PAGE>
<TABLE>
<CAPTION>




                           REVELSTOKE INDUSTRIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                                 BALANCE SHEETS



                                                                                              August 31,          May 31,
                                                                                                 2006               2006
------------------------------------------------------------------------------------------ ----------------- ------------------
                                                                                             (unaudited)

                                                             ASSETS

<S>                                                                                             <C>                <C>
CURRENT ASSETS

   Cash                                                                                         $   63,103         $    73,383



------------------------------------------------------------------------------------------ ----------------- ------------------

                                                                                                $   63,103         $    73,383
========================================================================================== ================= ==================



                                              LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

   Accounts payable and accrued liabilities                                                     $   26,757         $    19,171
   Due to related parties (Note 4)                                                                  16,799              16,799

------------------------------------------------------------------------------------------ ----------------- ------------------

                                                                                                    43,556              35,970
------------------------------------------------------------------------------------------ ----------------- ------------------

CONTINGENCY AND COMMITMENTS (Notes 1 and 6)

STOCKHOLDERS' EQUITY
   Capital stock (Note 3)
   Authorized
      50,000,000 shares of common stock, $0.001 par value,
   Issued and outstanding

      16,800,000 shares of common stock (May 31, 2006 - 16,800,000)                                 16,800              16,800
   Additional paid-in capital                                                                      157,367             157,367
   Deficit accumulated during the development stage                                               (154,620)           (136,754)

------------------------------------------------------------------------------------------ ----------------- ------------------

                                                                                                    19,547              37,413
------------------------------------------------------------------------------------------ ----------------- ------------------

                                                                                                $   63,103         $    73,383
========================================================================================== ================= ==================




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

</TABLE>

                                      F-1

<PAGE>

<TABLE>
<CAPTION>

                           REVELSTOKE INDUSTRIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                        INTERIM STATEMENTS OF OPERATIONS
                                   (unaudited)

                                                                                                               Cumulative
                                                                                                              results from
                                                                         Three months      Three months       April 5, 2004
                                                                             ended             ended         (inception) to
                                                                          August 31,        August 31,         August 31,
                                                                              2006              2005              2006
  --------------------------------------------------------------------- ---------------- ------------------ ------------------

<S>                                                                        <C>                 <C>               <C>
  REVENUE                                                                  $                   $        -        $    46,974
  --------------------------------------------------------------------- ---------------- ------------------ ------------------

   DIRECT COSTS                                                                      -                  -             56,481
  --------------------------------------------------------------------- ---------------- ------------------ ------------------

  GROSS MARGIN (LOSS)                                                                -                  -             (9,507)
  --------------------------------------------------------------------- ---------------- ------------------ ------------------

  GENERAL AND ADMINISTRATIVE EXPENSES
     Office and general                                                            335                609             33,239
       Consulting fees                                                               -              3,296             29,093
     Professional fees                                                          17,531             12,539             82,781
  --------------------------------------------------------------------- ---------------- ------------------ ------------------
                                                                               (17,866)           (16,444)          (145,113)
  --------------------------------------------------------------------- ---------------- ------------------ ------------------

  NET LOSS                                                                 $   (17,866)        $  (16,444)       $  (154,620)
  ===================================================================== ================ ================== ==================




  BASIC AND DILUTED LOSS PER COMMON SHARE                                  $     (0.00)        $    (0.00)
  ===================================================================== ================ ==================

  WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -BASIC AND
  DILUTED                                                                   16,800,000         12,600,000
  ===================================================================== ================ ==================


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

</TABLE>

                                      F-2

<PAGE>

<TABLE>
<CAPTION>


                           REVELSTOKE INDUSTRIES, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                        INTERIM STATEMENTS OF CASH FLOWS
                                   (unaudited)

                                                                                                                    Cumulative
                                                                                                                   results from
                                                                                Three months     Three months      April 5, 2004
                                                                                    ended            ended        (inception) to
                                                                                  August 31,       August 31,       August 31,
                                                                                     2006             2005              2006
------------------------------------------------------------------------------ ---------------- ---------------- ------------------


<S>                                                                                <C>              <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss                                                                         $   (17,866)     $  (16,444)       $  (154,620)
  Adjustments to reconcile net loss to net cash used in operating activities:
      Accounts receivable                                                                    -            (740)                 -
      Due from related party                                                                 -               -             16,799
      Prepaid expenses                                                                       -           8,075                  -
     Accounts payable and accrued liabilities                                            7,586        (41,873)             26,757
------------------------------------------------------------------------------ ---------------- ---------------- ------------------

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES                                    (10,280)        (50,982)          (111,064)
------------------------------------------------------------------------------ ---------------- ---------------- ------------------


CASH FLOWS FROM FINANCING ACTIVITIES

  Proceeds on sale of common stock                                                           -               -            174,167
------------------------------------------------------------------------------ ---------------- ---------------- ------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES                                                    -               -            174,167
------------------------------------------------------------------------------ ---------------- ---------------- ------------------

NET INCREASE (DECREASE) IN CASH                                                        (10,280)        (50,982)            63,103


CASH, BEGINNING OF PERIOD                                                               73,383          63,704                  -
------------------------------------------------------------------------------ ---------------- ---------------- ------------------

CASH, ENDING OF PERIOD                                                             $    63,103      $   12,722        $    63,103
============================================================================== ================ ================ ==================




Supplemental disclosures with respect to cash flows:

  Interest paid                                                                    $         -      $        -        $         -
============================================================================= ================= ================ ==================

  Income taxes paid                                                                $         -      $        -        $         -
============================================================================= ================= ================ ==================





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

</TABLE>


                                      F-3

<PAGE>


REVELSTOKE, INDUSTRIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
AUGUST 31, 2006 (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION
--------------------------------------------------------------------------------

The  Company  was  incorporated  in the State of Nevada  on April 5,  2004.  The
Company  is  engaged in the  business  of  reclaiming  and  stabilizing  land in
preparation for  construction  in the United States of America.  The Company has
elected a fiscal year of May 31. On May 5, 2006; the Company completed a forward
stock split by the issuance of 42 new shares for each 1 outstanding share of the
Company's common stock.

GOING CONCERN
To date the Company has generated minimal revenues from its business  operations
and has  incurred  operating  losses since  inception  of $154,620.  The Company
requires  additional  funding  to meet its  ongoing  obligations  and  operating
losses.  The ability of the Company to continue as a going  concern is dependant
on raising  capital to fund its initial  business plan and  ultimately to attain
profitable operations.  Accordingly, these factors raise substantial doubt as to
the Company's  ability to continue as a going  concern.  The Company  intends to
continue  to fund  its  initial  operations  by way of  private  placements  and
advances from related parties as may be required.

UNAUDITED INTERIM FINANCIAL STATEMENTS
The accompanying  unaudited interim consolidated  financial statements have been
prepared in accordance with generally accepted accounting principals for interim
financial  information  and with the  instructions  to Form 10-QSB of Regulation
S-B. They do not include all information and footnotes required by United States
generally  accepted  accounting  principles for complete  financial  statements.
However,  except as disclosed herein,  there has been no material changes in the
information  disclosed  in the notes to the  financial  statements  for the year
ended May 31, 2006 included in the Company's  Annual Report on Form 10-KSB filed
with the Securities and Exchange  Commission.  The interim  unaudited  financial
statements  should  be read  in  conjunction  with  those  financial  statements
included in the Form  10-KSB.  In the  opinion of  Management,  all  adjustments
considered  necessary  for a fair  presentation,  consisting  solely  of  normal
recurring  adjustments,  have been made.  Operating results for the three months
ended August 31, 2006 are not necessarily  indicative of the results that may be
expected for the year ending May 31, 2007.

COMPARATIVE FIGURES
Certain  comparative  figures have been  reclassified in order to conform to the
current year's financial statement presentation.

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

BASIS OF PRESENTATION
These financial  statements are presented in United States dollars and have been
prepared in accordance  with  generally  accepted  accounting  principles in the
United States of America.

USE OF ESTIMATES AND ASSUMPTIONS
Preparation of the financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  certain  reported  amounts of assets and  liabilities  and disclosure of
contingent  assets and  liabilities at the date of the financial  statements and
the reported amounts of expenses during the period. Accordingly,  actual results
could differ from those estimates.

INCOME TAXES
The Company follows the liability  method of accounting for income taxes.  Under
this method,  deferred tax assets and  liabilities are recognized for the future
tax  consequences  attributable to differences  between the financial  statement
carrying  amounts of existing assets and  liabilities  and their  respective tax
balances.  Deferred tax assets and  liabilities  are measured  using  enacted or
substantially  enacted tax rates  expected to apply to the taxable income in the
years in which those  differences  are expected to be recovered or settled.  The
effect  on  deferred  tax  assets  and  liabilities  of a change in tax rates is
recognized  in income in the  period  that  includes  the date of  enactment  or
substantive enactment.  As at August 31, 2006 the Company had net operating loss
carry forwards.  However,  due to the uncertainty of realization the Company has
provided a full valuation  allowance for the deferred tax assets  resulting from
these loss carryforwards.


                                      F-4

<PAGE>


REVELSTOKE, INDUSTRIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
AUGUST 31, 2006 (UNAUDITED)
--------------------------------------------------------------------------------


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

NET LOSS PER SHARE
The Company  computes loss per share in accordance with SFAS No. 128,  "Earnings
per Share" which requires  presentation  of both basic and diluted  earnings per
share  on the face of the  statement  of  operations.  Basic  loss per  share is
computed by dividing net loss available to common  shareholders  by the weighted
average number of outstanding common shares during the period.  Diluted loss per
share gives effect to all dilutive  potential common shares  outstanding  during
the period.  Dilutive  loss per share  excludes all  potential  common shares if
their effect is anti-dilutive.
--------------------------------------------------------------------------------

FOREIGN CURRENCY TRANSLATION
The financial  statements are presented in United States dollars.  In accordance
with SFAS No. 52, "Foreign Currency  Translation",  foreign denominated monetary
assets and liabilities are translated to their United States dollar  equivalents
using foreign exchange rates which prevailed at the balance sheet date.  Revenue
and  expenses are  translated  at average  rates of exchange  during the period.
Related  translation  adjustments  are  reported  as  a  separate  component  of
stockholders'  equity,  whereas gains or losses  resulting from foreign currency
transactions are included in results of operations.

REVENUE RECOGNITION
The  Company  derives  its  revenues  from  land  stabilization   contracts  and
recognizes  those  revenues on the  percentage of completion  basis.  Revenue is
measured  by  the  proportion  of  construction  costs  incurred  to  date  as a
percentage of estimated total construction costs. The Company records provisions
for  estimated  losses on  uncompleted  contracts  in the period in which  those
losses are determined.

STOCK-BASED COMPENSATION
On March 1, 2006,  the Company  adopted  SFAS No. 123  (revised  2004) (SFAS No.
123R),  SHARE-BASED  PAYMENT,  which  addresses the accounting  for  stock-based
payment  transactions  in which an  enterprise  receives  employee  services  in
exchange for (a) equity  instruments of the enterprise or (b)  liabilities  that
are based on the fair value of the enterprise's  equity  instruments or that may
be settled by the  issuance of such equity  instruments.  In January  2005,  the
Securities and Exchange  Commission (SEC) issued Staff Accounting Bulletin (SAB)
No. 107, which provides supplemental  implementation guidance for SFAS No. 123R.
SFAS No. 123R  eliminates  the ability to account for  stock-based  compensation
transactions using the intrinsic value method under Accounting  Principles Board
(APB)  Opinion No. 25,  ACCOUNTING  FOR STOCK ISSUED TO  EMPLOYEES,  and instead
generally   requires   that  such   transactions   be  accounted   for  using  a
fair-value-based  method.  The  Company  uses the  Black-Scholes-Merton  ("BSM")
option-pricing  model to determine the  fair-value of  stock-based  awards under
SFAS No. 123R,  consistent with that used for pro forma  disclosures  under SFAS
No. 123,  ACCOUNTING FOR STOCK-BASED  COMPENSATION.  The Company has elected the
modified  prospective  transition  method  as  permitted  by SFAS  No.  123R and
accordingly  prior  periods have not been restated to reflect the impact of SFAS
No. 123R. The modified  prospective  transition method requires that stock-based
compensation  expense  be  recorded  for  all new and  unvested  stock  options,
restricted  stock,  restricted  stock units,  and employee  stock  purchase plan
shares that are ultimately expected to vest as the requisite service is rendered
beginning on March 1, 2006,  the first day of the  Company's  second  quarter in
fiscal 2006.  Stock-based compensation expense for awards granted prior to March
1, 2006 is based on the grant date fair-value as determined  under the pro forma
provisions of SFAS No. 123.

Prior to the  adoption  of SFAS No.  123R,  the  Company  measured  compensation
expense for its  employee  stock-based  compensation  plans using the  intrinsic
value  method  prescribed  by APB  Opinion  No.  25.  The  Company  applied  the
disclosure provisions of SFAS No. 123 as amended by SFAS No. 148, ACCOUNTING FOR
STOCK-BASED COMPENSATION - TRANSITION AND DISCLOSURE, as if the fair-value-based
method had been applied in measuring compensation expense. Under APB Opinion No.
25, when the exercise price of the Company's employee stock options was equal to
the  market  price  of the  underlying  stock  on the  date  of  the  grant,  no
compensation expense was recognized.

The Company  has not  adopted a stock  option plan and has not granted any stock
options. Accordingly, no stock-based compensation has been recorded to date.

FAIR VALUE OF FINANCIAL INSTRUMENTS
In accordance with the  requirements of SFAS No. 107, the Company has determined
the  estimated  fair  value of  financial  instruments  using  available  market
information and appropriate valuation  methodogies.  The fair value of financial
instruments  classified  as  current  assets or  liabilities  approximate  their
carrying value due to the short-term maturity of the instruments.

                                      F-5

<PAGE>


REVELSTOKE, INDUSTRIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
AUGUST 31, 2006 (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
--------------------------------------------------------------------------------

RECENT ACCOUNTING PRONOUNCEMENTS
In February 2006, the FASB issued SFAS No. 155,  "Accounting  for Certain Hybrid
Financial  Instruments-an  amendment  of FASB  Statements  No. 133 and 140",  to
simplify  and  make  more  consistent  the  accounting  for  certain   financial
instruments.  SFAS No. 155  amends  SFAS No.  133,  "Accounting  for  Derivative
Instruments  and Hedging  Activities",  to permit fair value re- measurement for
any hybrid financial instrument with an embedded derivative that otherwise would
require  bifurcation,  provided that the whole  instrument is accounted for on a
fair  value  basis.  SFAS No.  155  amends  SFAS No.  140,  "Accounting  for the
Impairment   or  Disposal  of   Long-Lived   Assets",   to  allow  a  qualifying
special-purpose  entity to hold a derivative  financial instrument that pertains
to a beneficial  interest other than another  derivative  financial  instrument.
SFAS No. 155 applies to all financial  instruments  acquired or issued after the
beginning of an entity's first fiscal year that begins after September 15, 2006,
with  earlier  application  allowed.  This  standard  is not  expected to have a
significant  effect on the  Company's  future  reported  financial  position  or
results of operations.
--------------------------------------------------------------------------------

In March  2006,  the FASB  issued SFAS No. 156,  "Accounting  for  Servicing  of
Financial  Assets,  an  amendment  of FASB  Statement  No. 140,  Accounting  for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".
This statement requires all separately recognized servicing assets and servicing
liabilities be initially measured at fair value, if practicable, and permits for
subsequent  measurement using either fair value measurement with changes in fair
value reflected in earnings or the amortization  and impairment  requirements of
Statement No. 140. The subsequent measurement of separately recognized servicing
assets and  servicing  liabilities  at fair value  eliminates  the necessity for
entities  that  manage the risks  inherent  in  servicing  assets and  servicing
liabilities  with  derivatives  to qualify for hedge  accounting  treatment  and
eliminates  the  characterization  of declines in fair value as  impairments  or
direct write-downs.  SFAS No. 156 is effective for an entity's first fiscal year
beginning  after  September  15, 2006.  This  adoption of this  statement is not
expected to have a significant effect on the Company's future reported financial
position or results of operations.

NOTE 3 - STOCKHOLDERS' EQUITY
--------------------------------------------------------------------------------

The Company's  capitalization  is  50,000,000  common shares with a par value of
$0.001 per share.

On May 1, 2006,  a majority of  shareholders  and the  directors  of the Company
approved a special  resolution  to undertake a forward stock split of the common
stock of the Company on a 42 new shares for 1 old share basis whereby 16,400,000
common  shares were issued  pro-rata  to  shareholders  of the Company as of the
record date on May 1, 2006.

All references in these financial  statements to number of common shares,  price
per share and weighted average number of common shares  outstanding prior to the
42:1  forward  split have been  adjusted  to  reflect  these  stock  splits on a
retroactive basis, unless otherwise noted.

2004 SHARE TRANSACTIONS
On April 5, 2004 the Company completed  private  placements for 5,775,000 shares
of the Company's common stock at a price of $0.0016 per share, with net proceeds
to the Company of $9,167.

On November 30, 2004 the Company  completed  private  placements  for  6,825,000
shares of the  Company's  common stock at a price of $0.009 per share,  with net
proceeds to the Company of $65,000.

2005 SHARE TRANSACTIONS
On December 8, 2005 the Company completed private placement for 4,200,000 shares
of the Company's common stock at a price of $0.238 per share,  with net proceeds
to the Company of $100,000.

To August 31, 2006 the  Company  has not  granted any stock  options and has not
recorded any stock-based compensation.

                                      F-6

<PAGE>


REVELSTOKE, INDUSTRIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
AUGUST 31, 2006 (UNAUDITED)
--------------------------------------------------------------------------------


NOTE 3 - STOCKHOLDERS' EQUITY (CONTINUED)
--------------------------------------------------------------------------------

REGISTRATION STATEMENT
Of the total number of issued and  outstanding  shares of common stock,  certain
stockholders  are able to resell up to an aggregate of 11,025,000  shares of the
Company's common stock (262,500  pre-Forward  Stock Split shares) pursuant to an
SB-2  Registration  Statement  filed  November  16,  2005.  As a  result  of the
Registration   Statement:   (i)  4,200,000   shares  of  common  stock  (100,000
pre-Forward  Stock Split shares) were registered to be issued upon  subscription
at a purchase  price of $1.00 per  share;  and (ii)  6,825,000  shares of common
stock (162,500 pre-Forward Stock Split shares) held by existing  shareholders of
record were registered.

NOTE 4 - RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------


 A company  which is owned by a significant  shareholder  of the Company is owed
$16,799  as of August  31,  2006  ($16,799 - May 31,  2006) for  consulting  and
sub-contracts  on land  stabilization  programs  which were provided in the year
ended May 31, 2005. The amounts payable are unsecured, non-interest bearing with
no set terms of repayment.


The above  transactions  have been in the normal  course of  operations  and, in
management's  opinion,   undertaken  with  the  same  terms  and  conditions  as
transactions with unrelated parties.

(Refer to Note 6.)

NOTE 5 - INCOME TAXES
--------------------------------------------------------------------------------


The Company has adopted FASB No. 109 for reporting purposes. As of May 31, 2006,
the Company had net operating loss carry forwards of approximately $137,000 that
may be available to reduce future years'  taxable  income.  These carry forwards
will begin to expire,  if not utilized,  commencing in 2023. Future tax benefits
which may arise as a result of these  losses have not been  recognized  in these
financial statements, as their realization is determined not likely to occur and
accordingly, the Company has recorded a valuation allowance for the deferred tax
asset relating to these tax loss carry forwards.

The Company  reviews its  valuation  allowance  requirements  on an annual basis
based on projected future operations.  When circumstances change and this causes
a change in management's judgment about the recoverability of future tax assets,
the impact of the change on the  valuation  allowance is generally  reflected in
current income.

A reconciliation of income taxes at statutory rates with the Company's effective
tax rate is as follows:

                                                           May 31, 2006
                                                                 $
                                                        ---------------------


Loss before income taxes                                            (65,081)
Federal income tax statutory rate                                      35.0%
                                                        ---------------------


Expected income tax recovery                                        (22,778)
Non-deductible items for tax purposes                                     -
Unrecognized benefit of non-capital loss carry forwards              22,778
                                                        ---------------------

Future income tax provision (recovery)                                    -
                                                        =====================


The significant components of the company's income tax assets are as follows:

                                                            May 31, 2006
                                                                  $
                                                        ----------------------

Future income tax assets:
Loss carry forwards                                                   47,950
Valuation allowance                                                  (47,950)
                                                        ----------------------

Net future tax assets                                                      -
                                                        ======================


                                      F-7

<PAGE>

REVELSTOKE, INDUSTRIES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
AUGUST 31, 2006 (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 5 - INCOME TAXES (CONTINUED)
--------------------------------------------------------------------------------


As the criteria for recognizing deferred income tax assets have not been met due
to the  uncertainty  of  realization,  a  valuation  allowance  of 100% has been
recorded for the current and prior periods.


NOTE 6 - COMMITMENT
--------------------------------------------------------------------------------

On January 27, 2005, the Company entered into an agreement of understanding with
Alantic  Contractors Ltd. (the "Alantic  Agreement"),  pursuant to which Alantic
will provide the Company with  guidance in launching its  operations  within the
United  States,  advise on  operational  matters  and  assist in  promoting  the
Company's business through Alantic's existing  associates.  Alantic is a private
company  engaged  in  the  business  of  site  preparation  and  reclamation  by
reloading.  An officer and director of Alantic is also a significant shareholder
of the Company.

The Company will compensate  Alantic for their goods and services on a cost plus
basis,  which  entails  payment for their costs plus a markup of 5% for overhead
and 10% for  profit  for a total of a 15%  markup.  The  Company  will  also pay
Alantic a flat fee in the amount of $2,500 plus travel  expenses to appraise the
viability of individual prospective projects.


NOTE 7 - SUBSEQUENT EVENTS

--------------------------------------------------------------------------------


On September 27, 2006 four  founding  shareholders  returned  7,500,000 of their
restricted founders' shares, previously issued at $0.0016 - $0.009 per share, to
treasury and the shares were subsequently  cancelled by the Company.  The shares
were returned to treasury for no consideration  to the founding  shareholders in
order to make the share  capital of the Company  more  attractive  to  potential
investors.



                                      F-8

<PAGE>

         Statements  made in this Form 10-QSB that are not historical or current
facts  are  "forward-looking  statements"  made  pursuant  to  the  safe  harbor
provisions of Section 27A of the  Securities Act of 1933 (the "Act") and Section
21E of the  Securities  Exchange  Act of 1934.  These  statements  often  can be
identified  by the use of terms  such as  "may,"  "will,"  "expect,"  "believe,"
"anticipate,"  "estimate," "approximate" or "continue," or the negative thereof.
We intend that such  forward-looking  statements  be subject to the safe harbors
for such  statements.  We wish to caution readers not to place undue reliance on
any such forward-looking  statements,  which speak only as of the date made. Any
forward-looking  statements represent  management's best judgment as to what may
occur in the future. However,  forward-looking  statements are subject to risks,
uncertainties  and important  factors beyond our control that could cause actual
results and events to differ  materially from  historical  results of operations
and events  and those  presently  anticipated  or  projected.  We  disclaim  any
obligation  subsequently  to revise any  forward-looking  statements  to reflect
events or  circumstances  after the date of such  statement  or to  reflect  the
occurrence of anticipated or unanticipated events.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR  PLAN OF
         OPERATION

GENERAL

         Revelstoke  Industries,  Inc. is a corporation organized under the laws
of the State of Nevada on April 5, 2004 (herein  known as "we",  "our",  "us" or
the  "Company").  We currently  trade on the OTC Bulletin Board under the symbol
"RVSK".

MAY 1, 2006 FORWARD STOCK SPLIT

         On May 1, 2006,  our Board of Directors  pursuant to minutes of written
consent in lieu of a special  meeting  authorized  and approved a forward  stock
split of forty-two  (42) for one of our total issued and  outstanding  shares of
common stock (the "Forward Stock Split").

         The Forward Stock Split was effectuated  based on market conditions and
upon a determination  by our Board of Directors that the Forward Stock Split was
in our best interests and of the shareholders. In our judgment the Forward Stock
Split will result in an increase in our trading  float of shares of common stock
available for sale resulting in facilitation  of investor  liquidity and trading
volume  potential.  The intent of the Forward  Stock  Split is to  increase  the
marketability of our common stock.

         The Forward  Stock Split was  effectuated  with a record date of May 1,
2006 upon filing the appropriate  documentation  with NASDAQ.  The Forward Stock
Split increased our issued and  outstanding  shares of common stock from 400,000
to  approximately  16,800,000  shares of common  stock.  The  common  stock will
continue to be $0.001 par value.

CURRENT BUSINESS OPERATIONS

         We are currently  engaged in the  identification  of certain parcels of
land for the purpose of reclaiming and stabilizing  such land in preparation for
construction  throughout  Canada and the United States.  We currently  identify,

                                       2

<PAGE>

reclaim and  stabilize  such parcels of property  under the expertise of Alantic
Contractors  Ltd.,  a  construction  contractor  company  with over thirty years
experience  ("Alantic").  Using Alantic's management and expertise, we intend to
expand  into the United  States  market for  construction  and  reclamation  and
preparation.  We  believe  there are  significant  parcels of land in the United
States,   including  largely  peat-bearing  lands,   currently  not  viable  for
development  because  they are  unstable.  Traditional  techniques  and costs to
develop such lands would render the land prohibitively expensive.  Therefore, we
intend to open our first sales office on the west coast of the United States and
market our services to large and  mid-size  commercial  builders.  Until we have
established a sufficient  client base to justify hiring full-time staff, we will
act essentially as a marketing and  contracting  company.  All land  reclamation
contracts we enter into will be subcontracted to Alantic. As we gain clients and
as  revenue  increases,  we intend to open one or more west  coast  construction
offices  and hire  experience  staff to manage  our land  reclamation  contracts
ourselves. See " --- Material Commitments."

SITE RECLAMATION AND STABILIZATION

         Peat,  silt and  other  organic  soils  present  an  unstable  base for
construction.  Buildings, parking lots and other improvements on such unprepared
soils  will  settle  unevenly,   thereby  causing  structural  instability  and,
eventually,  costly site  remediation or loss of the foundation.  Unstable soils
must be either preloaded,  excavated and replaced,  or pilings must be installed
to  provide  a  stable  base for  foundation.  Depending  upon the  depth of the
unstable soils, removal of undesirable materials and replacement with structural
fill, or the  installation of pilings may be uneconomical  alternatives.  Proper
staged  preloading  may be the  only  viable  alternative  in  relatively  deep,
unstable soils.

         In Canada,  Alantic  has  developed  an  expertise  in  preloading  and
stabilizing  fragile land unable to support the weight of commercial  buildings,
and reclaiming it for profitable  development.  Preloading is a process  whereby
unstable soils are  consolidated  and settled by loading the site in stages with
structural fill -- sometimes  yards deep and weighing  thousands of tons -- in a
predetermined manner. This compacts and consolidates the underlying soils over a
period of months and possibly  years.  When the short term  settlement  has been
exhausted, the preload -- that is, the amount of material above finished grade -
-- is removed, leaving the site with a stable foundation for construction.

         Preloading  is not a new  technology;  in fact,  it has been in use for
many years. In recent years,  however,  a niche has developed where  contractors
like  Alantic  have  capitalized  on the need for sites  (landfills)  to receive
excess  structural  fill  generated as a consequence  of multilevel  underground
developments.  Through the  relocation  of this  structural  fill,  and with the
revenue   generated  by  tipping  fees  charged,   sites  which  were  once  not
economically viable to develop are afforded the opportunity to proceed.

         With our ability to contract Alantic's management and senior staff, and
with  outside  geotechnical  engineers,  we intend to assist  owners of unstable
lands to prepare and reclaim  their  lands for  development.  The process for us
will  typically  begin  with  a  review  of the  particular  site's  soils  by a
geotechnical   engineer,   including   soil   composition,   depth   and   other
characteristics  that will  describe its behavior and viability for its intended
use.

                                       3
<PAGE>

         Along with the geotechnical  consultant,  we will develop a staged plan
to fill and preload  prospective  sites. Next, the subject site would be cleared
and  instrumentation  installed in preparation for monitoring the site elevation
changes  and any  possible  effects on  surrounding  properties  or  structures.
Structural  landfill  materials  would be sourced  through  local  projects  and
excavation contractors, with tipping fees being negotiated.  Initial fill depths
would be designed to allow for broad access over the site,  while  inducing some
of the  dramatic,  primary  settlement.  Over a period of months and even years,
additional  layers of structural  fill will be added as fill,  and  ultimately a
preload to prepare the location of any structures to be built.

         The rate of settlement  will be monitored over the ensuing months using
surveyors to gather data from the instrumentation installed prior to preloading.
The  geotechnical  consultant  is  responsible  for  determining  the  array  of
instrumentation  to  be  installed,  the  frequency  of  data  collection,   and
interpretation  of the  data.  The  rate of  settling  or  lateral  movement  is
typically  greatest in the early months, and declines over time. The performance
of the site as proven in the data will  determine  adjustments  to the  proposed
plan of site filling and preloading.  This will be done in consultation with the
geotechnical engineer.

         We will not  provide  reclamation  services  relating  to  contaminated
soils.

RESULTS OF OPERATIONS

THREE-MONTH  PERIOD ENDED AUGUST 31, 2006 COMPARED TO  THREE-MONTH  PERIOD ENDED
AUGUST 31, 2005

         Our net loss for the  three-month  period  ended  August  31,  2006 was
approximately  ($17,866)  compared  to  a  net  loss  of  ($16,444)  during  the
three-month period ended August 31, 2005 (an increase of $1,452).

         During the  three-month  periods ended August 31, 2006 and 2005, we did
not generate any revenue.  During the three-month  period ended August 31, 2006,
we incurred  general and  administrative  expenses  in the  aggregate  amount of
$17,866  compared to general and  administrative  expenses  incurred  during the
three-month  period  ended August 31, 2005 of $16,444.  Administrative  expenses
incurred during the three-month period ended August 31, 2006 primarily consisted
of: (i) professional  fees of $17,531 (2005:  $12,539);  (ii) office and general
expenses of $335 (2005: $579); and (iii) consulting fees of $-0- (2005: $3,296).
General and  administrative  expenses slightly  increased during the three-month
period ended August 31, 2006 due to an increase in professional fees relating to
investigating  the  opportunities  in  the  construction  site  reclamation  and
stabilization  business  in the  United  States  and to  continuing  legal  fees
associated with completion of the Registration  Statement on Form SB-2.  General
and administrative expenses generally include corporate overhead,  financial and
administrative contracted services, marketing, and consulting costs.

         As discussed  above,  the  increase in net loss during the  three-month
period ended August 31, 2006 compared to the three-month period ended August 31,
2005  is  attributable   primarily  to  the  increase  in  overall  general  and
administrative  expenses relating  primarily to professional  fees. Our net loss
during the three-month period ended August 31, 2006 was approximately  ($17,866)
or ($0.00) per share  compared to a net loss of ($16,414) or ($0.00)  during the
three-month  period ended August 31, 2005. The weighted average number of shares
outstanding  was  16,800,000  for the  three-month  period ended August 31, 2006
compared to 12,600,000 for the three-month period ended August 31, 2005.

                                       4
<PAGE>


LIQUIDITY AND CAPITAL RESOURCES

         Our  financial  statements  have been  prepared  assuming  that we will
continue  as a  going  concern  and,  accordingly,  do not  include  adjustments
relating to the  recoverability  and realization of assets and classification of
liabilities  that  might  be  necessary  should  we be  unable  to  continue  in
operation.

THREE-MONTH PERIOD ENDED AUGUST 31, 2006

         As of the three-month  period ended August 31, 2006, our current assets
were  $63,103 and our current  liabilities  were  $43,556,  which  resulted in a
working  capital surplus of $19,547.  As of the three-month  period ended August
31,  2006,  our  total  assets  consisted  of the  $63,103  in  cash.  As of the
three-month  period ended August 31, 2006, our total  liabilities  consisted of:
(i) $26,757 in accounts payable and accrued liabilities; and (ii) $16,799 due to
related parties.

         Stockholders'  equity  decreased  from $37,413 at fiscal year ended May
31, 2006 to $19,547 as at August 31, 2006.

         We have not generated  positive cash flows from  operating  activities.
For the  three-month  period  ended  August  31,  2006,  net cash  flows used in
operating  activities was ($10,280) compared to net cash flows used in operating
activities for the  three-month  period ended August 31, 2005 of ($50,982).  Net
cash flows used in operating  activities for the three-month period ended August
31, 2006 consisted primarily of a net loss of ($17,866).  Net cash flows used in
operating  activities was adjusted by $7,586 to reflect the increase in accounts
payable and accrued liabilities.

PLAN OF OPERATION

         During  fiscal year ended May 31, 2006,  we closed a private  placement
offering  pursuant to which we issued an aggregate of 4,200,000 shares of common
stock  (100,000  pre-forward  stock split shares) at $0.0238 per share for gross
proceeds of $100,000.  Existing working  capital,  further advances and possible
debt instruments, anticipated warrant exercises, further private placements, and
anticipated  cash flow are expected to be adequate to fund our  operations  over
the  next  six  months.  We have no lines of  credit  or  other  bank  financing
arrangements.  Generally,  we  have  financed  operations  to date  through  the
proceeds of the private  placement of equity and debt securities.  In connection
with our business plan, management anticipates that administrative expenses will
decrease  as a  percentage  of revenue as our  revenue  increases  over the next
twelve months.

         Additional  issuances of equity or  convertible  debt  securities  will
result in dilution to our current  shareholders.  Further, such securities might
have rights,  preferences or privileges  senior to our common stock.  Additional
financing may not be available  upon  acceptable  terms,  or at all. If adequate
funds are not available or are not available on acceptable  terms, we may not be
able to take advantage of prospective new business  endeavors or  opportunities,
which could significantly and materially restrict our business operations.

         The report of the independent  registered  public  accounting firm that
accompanies our fiscal year end May 31, 2006 and May 31, 2005 audited  financial
statements contains an explanatory paragraph expressing  substantial doubt about
our ability to continue as a going concern.  The financial  statements have been

                                       5
<PAGE>

prepared "assuming that we will continue as a going concern," which contemplates
that we will realize our assets and satisfy our  liabilities  and commitments in
the ordinary course of business.

MATERIAL COMMITMENTS

         As of the date of this Quarterly Report, we do not have any significant
material  commitments  for fiscal  year  2006/2007  other  than the  contractual
arrangement described below.

ALANTIC CONTRACTORS LTD.

         On  approximately  January 27,  2005,  we entered  into an agreement of
understanding with Alantic Contractors Ltd. ("Alantic"), a construction contract
company with over thirty years experience (the "Alantic Agreement"). Pursuant to
the Alantic  Agreement,  Alantic will provide us with  guidance in launching our
operations within the United States, advise on operational matters and assist us
in promoting our business through Alantic's existing  associates.  In accordance
with the terms and provisions of the Alantic Agreement:  (i) we will utilize our
contacts and business network to procure potential  properties within the United
States for site preparation and reclamation; (ii) Alantic will act as contractor
and perform services including, but not limited to, the following: (a) establish
initial  budgets,  (b) supervise and procure  engineering  services,  (c) obtain
state and local  regulatory  approvals,  (d)  prepare  periodic  project  budget
reviews,  (e) implement systems to conform to local and state  regulations,  (f)
supervise  construction team,  including site engineering by Alantic's own staff
engineer,  (g) acquire  equipment  and/or services of local  subcontrators,  (h)
select  and  source  potential  fill  materials,  and (i)  establish  and direct
day-to-day operations; and (iii) we shall compensate Alantic for their goods and
services  on a cost plus  basis,  which  entails  payment for their costs plus a
markup of 5% for  overhead  and 10% for profit for a total of a 15% markup and a
flat fee in the amount of $2,500 plus travel  expenses to appraise the viability
of individual prospective projects.

OFF-BALANCE SHEET ARRANGEMENTS

         As of the date of this Quarterly Report, we do not have any off-balance
sheet  arrangements  that have or are  reasonably  likely  to have a current  or
future  effect on our  financial  condition,  changes  in  financial  condition,
revenues or expenses, results of operations,  liquidity, capital expenditures or
capital resources that are material to investors.  The term  "off-balance  sheet
arrangement"  generally means any  transaction,  agreement or other  contractual
arrangement to which an entity unconsolidated with us is a party, under which we
have:  (i) any  obligation  arising  under  a  guaranteed  contract,  derivative
instrument or variable  interest;  or (ii) a retained or contingent  interest in
assets transferred to such entity or similar  arrangement that serves as credit,
liquidity or market risk support for such assets.

ITEM III. CONTROLS AND PROCEDURES

         An  evaluation  was  conducted  under  the  supervision  and  with  the
participation of our management, including our President/Chief Executive Officer
and our  Treasurer/Chief  Financial Officer,  of the effectiveness of the design
and operation of our  disclosure  controls and procedures as at August 31, 2006.
Based on that  evaluation,  we have concluded  that our disclosure  controls and
procedures were effective as of such date to ensure that information required to
be disclosed in the reports that we file or submit under the Securities Exchange

                                       6
<PAGE>

Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized
and reported  within the time periods  specified in Commission  rules and forms.
Such officers also confirm that there was no change in our internal control over
financial reporting during the three-month period ended August 31, 2006 that has
materially affected,  or is reasonably likely to materially affect, our internal
control over financial reporting.

AUDIT COMMITTEE

         As of the date of this Quarterly  Report, we have not appointed members
to an audit committee and, therefore,  the respective role of an audit committee
has been  conducted  by our  Board of  Directors.  When  established,  the audit
committee's  primary  function  will be to provide  advice  with  respect to our
financial  matters  and to  assist  our Board of  Directors  in  fulfilling  its
oversight  responsibilities   regarding  finance,   accounting,  tax  and  legal
compliance.  The audit committee's primary duties and  responsibilities  will be
to: (i) serve as an  independent  and  objective  party to monitor our financial
reporting  process and  internal  control  system;  (ii) review and appraise the
audit  efforts of our  independent  accountants;  (iii)  evaluate our  quarterly
financial performance as well as its compliance with laws and regulations;  (iv)
oversee  management's  establishment  and enforcement of financial  policies and
business  practices;  and (v) provide an open avenue of communication  among the
independent accountants, management and our Board of Directors.

         Our Board of Directors has considered whether the regulatory  provision
of non-audit  services is compatible with maintaining the principal  independent
accountant's independence.


PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         Management is not aware of any legal  proceedings  contemplated  by any
governmental authority or any other party involving us or our properties.  As of
the date of this Quarterly  Report,  no director,  officer or affiliate is (i) a
party adverse to us in any legal proceeding,  or (ii) has an adverse interest to
us in any  legal  proceedings.  Management  is not  aware  of  any  other  legal
proceedings pending or that have been threatened against us or our properties.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         On approximately  September 27, 2006, four of our founding shareholders
returned an  aggregate of 7,500,000  shares of  restricted  common stock held of
record to our  treasury.  Pursuant  to board of  director  written  consent  and
approval,  we subsequently  cancelled the 7,500,000 shares of restricted  common
stock.  The  7,500,000  shares of common stock were  returned to treasury for no
consideration  to the four  shareholders in order to make our share capital more
attractive to potential investors.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         No report required.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         No report required.

                                       7
<PAGE>


ITEM 5.  OTHER INFORMATION

         No report required.

ITEM 5.  OTHER INFORMATION

         No report required.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         Exhibits:

         31.1 Certification  of Chief Executive  Officer  pursuant to Securities
              Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
         31.2 Certification  of Chief Financial  Officer  pursuant to Securities
              Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
         32.1 Certifications  pursuant to  Securities  Exchange Act of 1934 Rule
              13a- 14(b) or 15d-14(b)  and 18 U.S.C.  Section  1350,  as adopted
              pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

         Reports on Form 8-K:

         None.

                                       8
<PAGE>

SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                             REVELSTOKE INDUSTRIES, INC.

Dated: October 11, 2006                      By: /s/ Marcus Johnson
                                             _______________________________
                                             Marcus Johnson, Chief Executive
                                             Officer/President


Dated: October 6, 2006                       By: /s/ D. Bruce Horton
                                             ________________________________
                                             D. Bruce Horton, Chief Financial
                                             Officer/Treasurer


                                       9