`FORM 10-QSBUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  [X]
      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      
       
      EXCHANGE ACT of 1934 For the quarter ended March 31, 2006
      
        
      OR
       
      
        
      [   ]
      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      
       
      EXCHANGE ACT of 1934 For the transition period from 
      
       AGA RESOURCES, INC.  (Name of small business issuer in its charter)   Commission File Number 000-51781 Nevada
      N/A
      
      (State or Other Jurisdiction of Organization) 
      (IRS Employer Identification #)
      
       141 - 757 West Hastings StreetSuite #658 Vancouver, British Columbia Canada V6C 1A1(Address of principal executive offices, including zip code) (778) 863-0186(Registrant's telephone number, including area code)  Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [   ]  The Registrant is a Shell company. [   ]  As of February 14, 2006, the Company had 2,010,000 shares of common stock outstanding.  
      -1-
       
      
       PART I. - FINANCIAL INFORMATION ITEM 1.     INTERIM FINANCIAL STATEMENTS. AGA RESOURCES, INC.
      
      (A Nevada Corporation)
      
      (An Exploration Stage Company)
      
      Balance Sheet
      
      (Expressed in U.S. Dollars)
      
           
        March 31,
       September 30,
      
        2006
       2005
      
       
       (Unaudited - Prepared byManagement and reviewed by Moen and Company)
      
       (Audited)
      
       ASSETS
          
      Current Assets
          
          Cash
      $
      105,545
      $
      45,442
      
      TOTAL ASSETS
      $
      105,545
      $
      45,442
      
           
       
      LIABILITIES AND STOCKHOLDERS' EQUITY
          
      Current Liabilities
          
          Accounts payable 
      $
       $
      788
      
          Accrued Liabilities
         5,000
      
          Loan payable to related party (note 5)
       52,711
       52,711
      
          Advances on share subscriptions (Note 7 (a) )
         12,500
      
      TOTAL LIABILITIES  
       
      52,711
       
      70,999
      
      Stockholders' Equity (Deficit)
          
          Common Stock (note 4)
          
          Authorized:
          
              100,000,000 common shares, with a $0.00001 par value
          
              100,000,000 preferred shares, with a $0.00001 par value
          
          Issued:
          
              2,010,000 common shares issued and outstanding, par value
          
              (September 30, 2005 - 1,000,000 common shares)
       20
       10
      
              Additional paid in capital
       101,980
       990
      
              Donated Capital
       
      11,625
       
      7,125
      
        113,625
       8,125
      
          Deficit, accumulated during the exploration stage
       -60,791
       -33,682
      
           
      TOTAL STOCKHOLDERS' EQUITY (Deficit) 52,834
       -25,557
      
           
      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
      $
      105,545
      $
      45,442
      
           
      The accompanying notes are an integral part of these financial statements
      
       
        
      -2-
       
      
      AGA RESOURCES, INC.
      
      (A Nevada Corporation)
      
      (An Exploration Stage Company)
      
      Statements of Income
      
      (Expressed in U.S. Dollars)
      
      (Unaudited - Prepared by Management and reviewed by Moen and Company)
      
             
            Accumulated
      
            From
      
            Inception 
      
            Date of 
      
        Three Month
       Six Month
       December 15,
      
        Period Ended
       Period Ended
       2004 to
      
        March 31,
       March 31,
       March 31,
      
        2006
       2006
       2006
      
             
      Revenue
      $
      -- 
      $
      -- 
      $
      -- 
      
      Expenses
            
          Bank charges and interest 189
       526
       633
      
          Donated Services 1,500
       3,000
       7,750
      
          Donated Rent 750
       1,500
       3,875
      
          Office costs     7
      
          Professional fees 7,845
       18,324
       40,848
      
          Filing fees 684
       2,153
       2,872
      
          Impairment of Mineral property costs and deferred exploration expenditures
       1,606
       1,606
       4,806
      
        12,574
       27,109
       60,791
      
             
      Net Loss for the Period
      $
      -12,574
      $
      -27,109
      $
      -60,791
      
      Basic and diluted loss per share
      $
      -0.01
      $
      -0.02
        
      Weighted average number 
            
      of shares outstanding-Basic and Diluted
       2,010,000
       1,415,068
        
             
      The accompanying notes are an integral part of these financial statements
      
       
       
      -3-`

**AGA
                  RESOURCES, INC.**(A
                  Nevada Corporation)(An
                  Exploration Stage Company)Statements
                  of Cash Flows(Unaudited
                  - Prepared by Managementand
                  reviewed by Moen and Company)Three
                  Month
              
              Six
                  Month
              
              Accumulated
                        FromPeriod
                  Ended
              
              Period
                  Ended
              
              Inception
                    Date ofMarch
                  31,
              
              March
                  31,
              
              December
                        15, 2004 to2006
              
              2006
              
              March
                      31, 2006**Operating
                  Activities**Net
                Loss for the period
              $
              -12,574
              $
              -27,109
              $
              -60,791Adjustment
                to
                reconcile net loss to net cash used in operating activitesImpairment
                  of
                  Mineral property costs anddeferred
                  exploration
                  expenditures
              
              1,606
              
              1,606
              
              4,806Non
                cash chargesDonated
                  Services
              
              1,500
              
              3,000
              
              7,750Donated
                  Rent
              
              750
              
              1,500
              
              3,875Changes
                in operating assets and liabilitiesAccounts
                  payable
              
              -788
              
              -788Accrued
                  liabilities
              
              -5,000
              
              -5,000Advances
                  on
                  share subscriptions
              
              
              
              -12,500Net
                  cash used in operating activities
              
              -14,506
              
              -39,291
              
              -44,360**Investing
                  Activities**Mineral
                  property costs and deferred exploration expenditures
              
              -1,606
              
              -1,606
              
              -4,806Net
                  cash used in investing activities
              
              -1,606
              
              -1,606
              
              -4,806**Financing
                  Activities**Capital
                stock issued
              
              
              
              101,000
              
              102,000Loan
                from related party
              
              
              
              
              
              52,711Net
                  cash provided by financing activities
              
              
              
              101,000
              
              154,711**Increase
                  (Decrease) in cash**
              
              -16,112
              
              60,103
              
              105,545**Cash,
                  Beginning of Period**
              
              121,657
              
              45,442
              
              --**Cash,
                  End of Period**
              $
              105,545
              $
              105,545
              $
              105,545**Supplementory
                  Information-non cash items:**Donated
                Services
              
              1,500
              
              3,000
              
              7,750Donated
                Rent
              
              750
              
              1,500
              
              3,875The
                  accompanying notes are an integral part of these financial
                  statements




-4-


**AGA
                  RESOURCES, INC.**(A
                  Nevada Corporation)(An
                  Exploration Stage Company)Statement
                  of Changes in Stockholders' Equity (Deficit)For
                  The Period From Inception Date of December 15, 2004 to March 31,
                  2006(Expressed
                  in U.S. Dollars)(Unaudited
                  - Prepared by Managementand
                  reviewed by Moen and Company)DeficitAccumulated
              TotalNumber
                  of
              
              Additional
              Total
              
              In
              Stockholders'Common
              par
              Paid-in
              Capital
              Donated
              Exploration
              EquityShares
              Value
              Capital
              Stock
              Capital
              Stage
              (Deficit)Balance,
                    December 15, 2004 (date of inception)
              --
              $
                  --
              $
                  --
              $
                  --
              $
                  --
              $
                  --
              $
                  --Capital
                    stock issued for cash - December 17, 2004 at $0.001
              1,000,000
              10
              990
              1,000
              
              
              1,000Donated
                  Capital
              
              
              
              
              7,125
              
              7,125Net
                  loss for the period ended September 30, 2005
              
              
              
              
              
              -33,682
              -33,682Balance,
                  September 30, 2005
              1,000,000
              10
              990
              1,000
              7,125
              -33,682
              -25,557Capital
                    stock issued for cash - November 28, 2005 at $0.10
              1,010,000
              10
              100,990
              101,000
              
              
              101,000Donated
                  Capital
              
              
              
              
              4,500
              
              4,500Net
                  loss, six months ended March 31, 2006
              
              
              
              
              
              -27,109
              -27,109**Balance,
                  March 31, 2006**
              2,010,000
              $20
              $101,980
              $102,000
              $11,625
              $(60,791)
              $52,834The
                  accompanying notes are an integral part of these financial
                  statements




-5-


**AGA
        RESOURCES, INC.**
 (A
        Nevada
        Corporation)
 (An
        Exploration Stage Company)
 NOTES
        TO
        THE FINANCIAL STATEMENTS
 March
        31,
        2006
 (Expressed
        in U.S. Dollars)
 (Unaudited
        - Prepared by Management and
          reviewed by Moen and Company)
 ____________________________________________________________________________________
 
 Note
        1  Nature
        and Continuance of Operations
 
 AGA
        Resources, Inc. (“The Company”) was incorporated in the State of Nevada on
        December 15, 2004, which is also the inception date. The company is an
        Exploration Stage Company as defined by Statement of Financial Accounting
        Standard (“SFAS”) No. 7. The Company has acquired a mineral property located in
        the Province of British Columbia, Canada and has not yet determined whether
        this
        property contains reserves that are economically recoverable. The recoverability
        of amounts from the property will be dependent upon the discovery of
        economically recoverable reserves, confirmation of the Company’s interest in the
        underlying property, the ability of the Company to obtain necessary financing
        to
        satisfy the expenditure requirements under the property agreement and to
        complete the development of the property and upon future profitable production
        or proceeds from the sale thereof.
 
 These
                  financial statements have been prepared on a going concern basis.
                  The
                  Company has incurred losses since inception resulting in an accumulated
                  deficit of $60,791 since inception and further losses are anticipated
                  in
                  the development of its business raising substantial doubt about
                  the
                  Company’s ability to continue as a going concern. Its ability to continue
                  as a going concern is dependent upon the ability of the Company
                  to
                  generate profitable operations in the future and/or to obtain the
                  necessary financing to meet its obligations and repay its liabilities
                  arising from normal business operations when they become due. Management
                  is in the process of identifying sources for additional financing
                  to fund
                  working capital requirements and the ongoing development of the
                  Company’s
                  business.
 
 Note
                  2
              Summary
                  of Significant Accounting
                  Policies
  Basis
        of Presentation
  The
        financial statements of the Company have been prepared in accordance with
        generally accepted accounting principles in the United States of America
        and are
        expressed in US dollars. The Company’s fiscal year end is September
        30.
 
 Mineral
        property acquisition costs and deferred exploration expenditures
 
 
 Mineral
        properties consist of exploration and mining concessions, options and contracts.
        Acquisition and leasehold cost and exploration costs are capitalized and
        deferred until such time as the property is put into production or the
        properties are disposed of either through sale or abandonment. These costs
        are
        evaluated at the end of each reporting period for indication of impairment.
        An
        impairment of $4,806 is charged to income to March 31, 2006. If put into
        production, the costs of acquisition and exploration will
 
  -6-
  Note
                  2
              Summary
                  of Significant Accounting Policies-
                  (cont’d)
 
 be
        depreciated over the life of the property, based on estimated economic reserves.
        Proceeds received from the sale of any interest in property will first be
        credited against the carrying value of the property, with any excess included
        in
        operation for the period. If a property is abandoned, the property and deferred
        exploration costs will be written off to operations.
 
 Use
        of
        Estimates and Assumptions
  The
        preparation of financial statements in conformity with US generally accepted
        accounting principles requires management to make estimates and assumptions
        that
        affect the 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 revenues and expenses during the reporting period.
        Actual results could differ from those estimates.
 
 Foreign
        Currency Translation
  The
        Company’s functional and reporting currency is the United States dollar. The
        financial statements of the Company are translated to United States dollars
        in
        accordance with SFAS No. 52 “Foreign Currency Translation”. Monetary assets and
        liabilities denominated in foreign currencies are translated using the exchange
        rate prevailing at the balance sheet date. Gains and losses arising on
        translation or settlement of foreign currency denominated transactions or
        balances are included in the determination of income. Foreign currency
        transactions are primarily undertaken in Canadian dollars. The Company has
        not,
        to the date of these financials statements, entered into derivative instruments
        to offset the impact of foreign currency fluctuations.
 
 Financial
        Instruments
  The
        carrying value of cash, accounts payable and accrued liabilities and loan
        payable to related party approximate their fair value because of the short
        maturity of these instruments. The Company’s operations are in Canada and
        virtually all of its assets and liabilities are giving rise to significant
        exposure to market risks from changes in foreign currency rates. The financial
        risk is the risk to the Company’s operations that arise from fluctuations in
        foreign exchange rates and the degree of volatility of these rates. Currently,
        the Company does not use derivative instruments to reduce its exposure to
        foreign currency risk.
 
 Environmental
        Costs
  Environmental
        expenditures that relate to current operations are charged to operations
        or
        capitalized as appropriate. Expenditures that relate to an existing condition
        caused by past operations, and which do not contribute to current or future
        revenue generation, are charged to operations. Liabilities are recorded when
        environmental assessments and/or remedial efforts are probable, and the cost
        can
        be reasonably estimated. Generally, the timing of these accruals coincides
        with
        the earlier of completion of a feasibility study or the Company’s commitments to
        a plan of action based on the then known facts.
  -7-
  Note
                  2
              Summary
                  of Significant Accounting Policies-
                  (cont’d)
 
 Income
        Taxes
  Potential
        benefits of income tax losses are not recognized in the accounts until
        realization is more likely than not. The Company has adopted SFAS No. 109
        as of
        its inception. Pursuant to SFAS No. 109 the Company is required to compute
        tax
        asset benefits for net operating losses carried forward. Potential benefit
        of
        net operating losses have not been recognized in these financial statements
        because the Company cannot be assured it is more likely than not it will
        utilize
        the net operating losses carried forward in future years.
 
 Basic
        and Diluted Net Loss Per Share
  The
        Company computes net income (loss) per share in accordance with SFAS No.
        128,
        "Earnings per Share". SFAS No. 128 requires presentation of both basic and
        diluted earnings per share (EPS) on the face of the income statement. Basic
        EPS
        is computed by dividing net income (loss) available to common shareholders
        (numerator) by the weighted average number of shares outstanding (denominator)
        during the period. Diluted EPS gives effect to all dilutive potential common
        shares outstanding during the period using the treasury stock method and
        convertible preferred stock using the if-converted method. In computing Diluted
        EPS, the average stock price for the period is used in determining the number
        of
        shares assumed to be purchased from the exercise of stock options or warrants.
        Diluted EPS excludes all dilutive potential shares if their effect is anti
        dilutive.
 
 Stock-based
        Compensation
  In
        December 2004, the Financial Accounting Standards Board (FASB) Issued Statement
        of Financial Accounting Standard (SFAS) No. 123 R, “Share Based Payment”. SFAS
        123R is a revision of SFAS No. 123 “ Accounting for Stock-based Compensation”,
        and supersedes APB Opinion No. 25, “Accounting for Stock Issued to Employees”
and its related implementation guidance. SFAS 123R establishes standards
        for the
        accounting for transactions in which an entity exchanges its equity instruments
        for goods or services. It also addresses transactions in which and entity
        incurs
        liabilities in exchange for goods or services that are based on the fair
        value
        of the entity’s equity instruments or that may be settled by the issuance of
        those equity instruments. SFAS 123R focuses primarily on accounting for
        transactions in which an entity obtains employee services in share-based
        payment
        transactions. SFAS 123R does not change the accounting guidance for share-based
        payment transactions with parties other than employees provided in SFAS 123
        as
        originally issued and Emerging issues Task Force Issue No. 96-18, “Accounting
        for Equity Instruments that are Issued to Other Than Employees for Acquiring,
        or
        in Conjunction with Selling, Goods or Services”. SFAS 123R does not address the
        accounting for employee share ownership plans, which are subject to AICPA
        Statement of Position 93-6, “Employers’ Accounting for Employee Stock Ownership
        Plans”. SFAS 123R requires a public entity to measure the cost of employee
        services received in exchange for an award of equity
  -8-
  Note
        2   Summary
        of Significant Accounting Policies -
        (cont’d)
  Stock-based
        Compensation (cont’d)
 
 instruments
        based on the grant-date fair value of the award (with limited exceptions).
        That
        cost will be recognized over the period during which an employee is required
        to
        provide service in exchange for the award - the requisite service period
        (usually the vesting period). SFAS 123R requires that the compensation cost
        relating to share-based payment transactions be recognized in financial
        statements. That cost will be measured based on the fair value of the equity
        or
        liability instruments issued. The scope of SFAS 123R includes a vide range
        of
        share-based compensation arrangements including share options, restricted
        share
        plans , performance-based awards, share appreciation rights, and employee
        share
        purchase plans. Public entities that file as small business issuers will
        be
        required to apply SFAS 123R in the first interim or annual reporting period
        that
        begins after December 15, 2005. The adoption of this standard is not expected
        to
        have a material effect on the Company’s results of operations or financial
        position.
 
 Comprehensive
        Income
  The
        Company has no items that represent other comprehensive income, and therefore
        no
        statement of comprehensive income is provided.
 
 Cash
        and Cash Equivalents
  The
        Company considers all highly liquid instruments with maturity of three months
        or
        less at the time of issuance to be cash equivalents.
 
 Concentration
        of Credit Risk
  Financial
        instruments that potentially subject the Company to credit risk consist
        principally of cash. Cash is deposited with a high quality credit
        institution.
 
 Recent
        Accounting Pronouncements
 
 In
        December 2004, FASB issued SFAS No. 153, “Exchanges of Nonmonetary Assets- An
        Amendment of APB Opinion No. 29”. The guidance in APB Opinion No. 29,
“Accounting for Nonmonetary Transactions”, is based on the principle that
        exchanges of nonmonetary assets should be measured based on the fair value
        of
        the assets exchanged. The guidance in that Opinion, however, included certain
        exceptions to that principle. SFAS No. 153 amends Opinion No. 29 to eliminate
        the exception for nonmonetary exchanges of similar productive assets and
        replaces it with a general exception for exchanges of nonmonetary assets
        that do
        not have commercial substance. A nonmonetary exchange has commercial substance
        if the future cash flows of the entity are expected to change significantly
        as a
        result of the exchange. The provisions of SFAS No. 153 are effective for
        nonmonetary asset exchanges occurring in fiscal periods beginning after June
        15,
        2005. Early application is permitted and companies must apply the standard
        prospectively. The adoption of this standard is not expected to have a material
        effect on the Company’s results of operations or financial
        position.
 
 Note
        3  Mineral
        Property
  The
        company owns mineral claims comprising a total of 20 contiguous units and
        an
        area of 1,235 acres. The property is situated within the Burrell Creek and
        St.
        Annes Creek Valleys on the southern end of the Franklin Gold Camp in the
        Greenwood Mining Division, British Columbia, Canada. This property is held
        in
        trust for the Company and subsequent to December 31, 2005, the amount of
        $1,897.37 ($2,000 Cdn) was paid in lieu of work commitments. This property
        is
        under tenure number 503912 and expires January 16, 2007.
  -9-
  Note
                  4
              Share
                  Capital
  Authorized:
  100,000,000
        common shares with a par value of $0.00001 per share
  100,000,000
        preferred shares with a par value of $0.00001 per share
  Issued:
  During
        the period from December 15, 2004 (Inception) to March 31, 2006 the Company
        issued 2,010,000 common shares for total cash proceeds of $102,000.
  At
        March
        31, 2006 there were no outstanding stock options or warrants.
 
 Note
                  5
              Related
                  Party Transactions
  As
        at
        March 31, 2006, Jianping Zhang, a Director, Chief Executive Officer and
        Shareholder has a loan of $52,711 to the company which is unsecured, bears
        no
        interest and has no specific terms of repayment.
  
  As
        at
        March 31, 2006, Mrs. Jacqueline A. McLeod, the wife of the secretary, treasurer
        and director of the company holds the Company’s mineral property in trust for
        use by the Company. She
        has
        agreed in writing not to cause the title to the mineral claim to pass to
        another
        person or entity other than the Company, until such time as the Company decides
        to seek ownership of such mineral claim or abandon it.Mrs. McLeod will
        not retain any percentage or ownership in the property or ownership of any
        minerals discovered during the exploration and she will not be entitled to
        a
        percentage of the revenue generated from the use of the property.
 
 Note
                  6
              Deferred
                  Tax Assets
 
 The
        Company has losses forward for income tax purposes to March 31, 2006. There
        are
        no current or deferred tax expenses for the period ended March 31, 2006,
        due to
        the Company's loss position. The Company has fully reserved for any benefits
        of
        these losses. The deferred tax consequences of temporary differences in
        reporting items for financial statement and income tax purposes are recognized,
        as appropriate. Realization of the future tax benefits related to the deferred
        tax assets is dependent on many factors, including the Company's ability
        to
        generate taxable income within the net operating loss carry forward period.
        Management has considered these factors in reaching its conclusion as to
        the
        valuation allowance for financial reporting purposes.
  -10-
 
 Note
        6  Deferred
        Tax Assets (cont’d)
 
 The
        income tax effect of temporary differences comprising the deferred tax assets
        and deferred tax liabilities on the accompanying consolidated balance sheets
        is
        a result of the following:
  March
                  31, 2006Deferred
                  tax assets
              $
                  20,669Valuation
                  allowance
              $
                  (20,669)Net
                  deferred tax assets
              $
                  -
  A
        reconciliation
        between the statutory federal income tax rate and the effective income rate
        of
        income tax expense for the period ended December 31, 2006 is as follows:
  March
                  31, 2006Statutory
                  federal income tax rate
              -34.00%Valuation
                  allowance
              34.00%Effective
                  income tax rate
              0.00%
  The
        benefit of a potential reduction in future income taxes has not been recorded
        as
        an asset at March 31, 2006 as it is reduced to nil by a valuation allowance,
        due
        to uncertainty of the application of losses. The company has net operating
        losses carried forward of $60,791.
 
 **ITEM
        2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
        OPERATIONS**
 
 We
        are a
        start-up, exploration stage corporation and have not yet generated or realized
        any revenues from our business activities.
 
 Our
        auditors have issued a going concern opinion. This means that there is
        substantial doubt that we can continue as an on-going business for the next
        twelve months unless we obtain additional capital to pay our bills. This
        is
        because we have not generated any revenues and no revenues are anticipated
        until
        we begin removing and selling minerals. We completed our public offering
        and
        raised $100,000. We believe the money will allow us to operate for one year.
  We
          have
          hired consultant to take a mineral sample and have it tested by a lab.
          If we
          find mineralized material and it is economically feasible to remove the
          mineralized material, we will attempt to raise additional money through
          a
          subsequent private placement, public equity offering or through loans.
          If we
          need additional cash and are not successful in raising the funds,,we will
          either
          have to suspend activities until we do raise the funds, or cease activities
          entirely. If we are unable to find any mineralized material or it is not
          economically feasible to remove the mineralized material, we will either
          have to
          cease activities or look for other opportunities.
 As
          of
          March 31, 2006, Mrs. Jacqueline A. McLeod, the wife of our Secretary, Treasurer
          and Director of the Company, Mr. James W. McLeod, held the mineral claim
          which
          we are operating in trust for the Company. She has agreed in writing not
          to
          cause the title to the mineral claim to pass to another person or entity
          other
          than the Company, until such time as the Company decides to seek ownership
          of
          such mineral claim or abandons it.
 We
        do not
        own any interest in any property, but merely have the right to conduct
        exploration activities on one property. Even if we complete our current
        exploration program and it is successful in identifying a mineral deposit,
        we
        will have to spend substantial funds on further drilling and engineering
        studies
        before we will know if we have a commercially viable mineral deposit, a
        reserve.
 
 We
        will
        be conducting research in the form of exploration of the property. We are
        not
        going to buy or sell any plant or significant equipment during the next twelve
        months. We will not buy any equipment until we have located a reserve and
        we
        have determined it is economical to extract the minerals from the land.
 
 We
        do not
        intend to interest other companies in the property if we find mineralized
        materials. We intend to try to develop the reserves ourselves.
 
 If
        we are
        unable to complete any phase of exploration because we don't have enough
        money,
        we will cease activities until we raise more money. If we can't or don't
        raise
        more money, we will cease activities.
        If we cease activities, we don't currently
        have any plans for such eventuality.
 
 We
        do not
        intend to hire additional employees at this time. All of the work on the
        property will be conducted by unaffiliated independent contractors that we
        will
        hire. The independent contractors will be responsible for surveying, geology,
        engineering, exploration, and excavation. The geologists will evaluate the
        information derived from the exploration and excavation and the engineers
        will
        advise us on the economic feasibility of removing the mineralized
        material.
  -11-
 **Milestones**
 
 The
        following are our milestones:
  ·
              0-30
                  days from the date of this report, retain our consultant to manage
                  the
                  exploration of the property. - Cost $15,000. Time of retention:
                  0-90 days.
 
 ·
              30-120
                  days from the date of this report. - Core drilling. Core drilling
                  will
                  cost $20.00 per foot. The number of holes to be drilled will be
                  dependent
                  upon the amount raised from our public offering. Core drilling
                  will be
                  subcontracted to non-affiliated third parties. No power source
                  is need for
                  core drilling.
 
 The
        drilling rig operates on diesel fuel. All electric power needed for light
        and
        heating while on the property will be generated from gasoline powered
        generators. Time to conduct the core drilling: 90 days.
 
 ·
              120-150
                  days from the date of this report. - Have independent third party
                  analyze
                  the samples from the core drilling. Determine if mineralized material
                  is
                  below the ground. If mineralized material is found, define the
                  body. We
                  estimate that it will cost $10,000 to analyze the core samples
                  and will
                  take 30 days.




**Limited
        Operating History; Need for Additional Capital**
 
 There
        is
        no historical financial information about us upon which to base an evaluation
        of
        our performance. We are an exploration stage corporation and have not generated
        any revenues from activities. We cannot guarantee we will be successful in
        our
        business activities. Our business is subject to risks inherent in the
        establishment of a new business enterprise, including limited capital resources,
        possible delays in the exploration of our properties, and possible cost overruns
        due to price and cost increases in services.
 
 To
        become
        profitable and competitive, we must conduct the research and exploration
        of our
        properties before we start production of any minerals we may find.
 
 We
        have
        no assurance that future financing will be available to us on acceptable
        terms.
        If financing is not available on satisfactory terms, we may be unable to
        continue, develop or expand our activities. Equity financing could result
        in
        additional dilution to existing shareholders.
 **Results
          of Activities**
 
 ***From
          Inception on December 15, 2004 to March 31, 2006***
 
 We
          have
          the right to explore one property containing one claim. We do not own any
          interest in any property, but merely have the right to conduct exploration
          activities on one property. To
          date,
          we have expended funds to stake the property and we have begun our exploration
          plan by first testing a sample from the land.
  Since
          inception, we have used loans from Jianping Zhang, our president, to stake
          the
          property, to incorporate us, and for legal and accounting expenses. Net
          cash
          provided by him from inception on December 15, 2004 to March 31, 2006 was
          $52,711. The loans are not evidenced by any written instrument and are
          to be
          repaid only in the event that mineralized material is found on the property.
          The
          loans will not be repaid from the proceeds from our public offering. The
          loans
          are without interest and will only be repaid from subsequent funds received
          from
explorationactivities.
 
 **Liquidity
          and Capital Resources**
 
 As
          of the
          date of this quarterly report, we have yet to generate any revenues from
          our
          business activities.
  In
          December 2004, we issued 1,000,000 shares of common stock through an exemption
          from registration contained in section 4(2) of the Securities Act of 1933.
          This
          was accounted for as a sale of shares of common stock.
 
 In
          January 2006, we completed our public offering and raised $101,000.
 As
              of
              March 31, 2006, our total assets were 105,545and our total liabilities
              were
              52,711.
 
 -12-
  ITEM
          3.
    CONTROLS AND PROCEDURES.
 
 **(a)**  ***Evaluation
          of Disclosure Controls and Procedures:*** Disclosure controls and procedures are designed to ensure that information
          required to be disclosed in the reports filed or submitted under the Exchange
          Act is recorded, processed, summarized and reported, within the time period
          specified in the SEC's rules and forms. Disclosure controls and procedures
          include, without limitation, controls and procedures designed to ensure
          that
          information required to be disclosed in the reports filed under the Exchange
          Act
          is accumulated and communicated to management, including the Chief Executive
          Officer and Chief Financial Officer, as appropriate, to allow timely decisions
          regarding required disclosure. As of the end of the period covered by this
          report, we carried out an evaluation, under the supervision and with the
          participation of our management, including our Chief Executive Officer
          and Chief
          Financial Officer, of the effectiveness of the design and operation of
          our
          disclosure controls and procedures. Based upon and as of the date of that
          evaluation, the Chief Executive Officer and Chief Financial Officer concluded
          that our disclosure controls and procedures are effective to ensure that
          information required to be disclosed in the reports our files and submits
          under
          the Exchange Act is recorded, processed, summarized and reported as and
          when
          required.
  **(b)**  ***Changes
          in Internal Control over Financial Reporting:*** There
          were no changes in our internal control over financial reporting identified
          in
          connection with our evaluation of these controls as of the end of the period
          covered by this report that affected those controls subsequent to the date
          of
          the evaluation referred to in the previous paragraph, including any correction
          action with regard to deficiencies and material weakness.
  There
          were no changes in our internal controls or in other factors that could
          affect
          these controls subsequent to the date of their evaluation, including any
          deficiencies or material weaknesses of internal controls that would require
          corrective action.
 
 **PART
          II - OTHER INFORMATION**
 **ITEM
            1. LEGAL PROCEEDINGS.**
 
 **None.**
  **ITEM
            2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
            PROCEEDS.**
 There
              were no unregistered sales of equity securities during the preceding
              fiscal
              quarter.
 On
          October 17, 2005, the Securities and Exchange Commission declared our Form
          SB-2
 Registration
          Statement effective, file number 333-124181, permitting us to offer up
          to a
          maximum of 2,000,000 shares of common stock at $0.10 per share. There was
          no
          underwriter involved in our public offering.
 
 In
          December of 2005, we completed our public offering and sold 1,010,000 shares
          of
          common stock and raised $101,000. We have partially used the funds during
          the
          quarter ending December 31, 2005 to pay operating expenses and accounting
          fees.
          The balance is available to cover the costs of starting the business and
          the
          losses that may be incurred in the start up period.
 **ITEM
            3. DEFAULTS UPON SENIOR SECURITIES**
 
 **None.**
  **ITEM
            4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**
 
 **None.**
  **ITEM
            5. OTHER INFORMATION**
 
 **None.**
 **ITEM
          6.     EXHIBITS.**
 
 The
          following documents are included herein:
 
 Exhibit
                  No.
              **Document
                  Description**31.1
              Certification
                  of Principal Executive Officer pursuant to Rule 13a-15(a) and Rule
                  15d-15(a), promulgated under the Securities Exchange Act of 1934,
                  as
                  amended.31.2
              Certification
                  of Principal Financial Officer pursuant to Rule 13a-15(a) and Rule
                  15d-15(a), promulgated under the Securities Exchange Act of 1934,
                  as
                  amended.32.1
              Certification
                  of Chief Executive Officer Pursuant To 18 U.S.C. Section 1350,
                  as adopted
                  pursuant to Section 906 Of The Sarbanes-Oxley Act of
                  2002.32.2
              Certification
                  of Chief Financial Officer Pursuant To 18 U.S.C. Section 1350,
                  as adopted
                  pursuant to Section 906 Of The Sarbanes-Oxley Act of
                  2002.






-13-


**SIGNATURES**
 
 Pursuant
        to the requirements of Section 13 or 15(d) of the Securities and Exchange
        Act of
        1934, the Registrant has duly caused this report to be signed on its behalf
        by
        the undersigned, thereunto duly authorized, on this 9th day
        of
        May, 2006.
 
 **AGA
                  RESOURCES, INC.**(the
                  "Registrant")BY:
              /s/
                  Jianping ZhangJianping
                  Zhang,
                President,
                  Principal Executive Officer and a Member of the Board of
                  DirectorsBY:
              /s/
                  James W. McLeodJames
                  W. McLeod,
                Secretary,
                  Treasurer, Principal Financial Officer and Principal Accounting
                  Officer
                  and a Member of a Board of
                  Directors