**FORM
      10-QSB**




**UNITED
      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 #)




**142
      - 757 West Hastings Street**


**Suite
      #658**


**Vancouver,
      British Columbia**


**Canada
      V6C 1A1**


(Address
      of principal executive offices, including zip code)




**(778)
      322-4332**


(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
      August 7,
      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)**June
                    30,
                
                September
                    30,2006
                
                2005(Unaudited
                    -
                
                (Audited)**ASSETS**
                
                
                
                Prepared
                    byManagement)**Current
                    Assets**Cash
                
                
                $
                61,951
                $
                45,442**Total
                    Current Assets****Mining
                    Equipment, at cost (note 7)**
                
                
                
                36,696**TOTAL
                    ASSETS**
                
                
                $
                98,647
                $
                45,442**LIABILITIES
                    AND STOCKHOLDERS' EQUITY****Current
                    Liabilities**Accounts
                    payable
                
                
                $
                27,605
                $
                788Accrued
                    Liabilities
                
                
                
                
                
                5,000Loan
                    payable to related party (note 5)
                
                
                
                52,711
                
                52,711Advances
                    on share subscriptions (Note 7 (a) )
                
                
                
                
                
                12,500**TOTAL
                    LIABILITIES**
                
                
                
                80,316
                
                70,999**Stockholders'
                    Equity (Deficit)**Common
                    Stock (note 4)Authorized:100,000,000
                    common shares, with a $0.00001 par value100,000,000
                    preferred shares, with a $0.00001 par valueIssued:20,100,000
                    (post forward split) common shares issued and outstanding, par
                    value(September
                    30, 2005 - 1,000,000 common shares)
                
                
                
                20
                
                10Additional
                    paid in capital
                
                
                
                101,980
                
                990Donated
                    Capital
                
                
                
                13,875
                
                7,125115,875
                
                8,125Deficit,
                      accumulated during the exploration stage
                
                
                
                (97,544)
                
                (33,682)**TOTAL
                    STOCKHOLDERS' EQUITY (Deficit)**
                
                
                
                18,331
                
                (25,557)**TOTAL
                    LIABILITIES AND STOCKHOLDERS' EQUITY**
                
                
                $
                98,647
                $
                45,442The
                    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)**AccumulatedFromThree
                      Month
                
                Nine
                      Month
                
                InceptionDate ofPeriod
                      Ended
                
                Period
                      Ended
                
                December
                        15,2004 toJune
                      30,2006
                
                June
                      30,2006
                
                June
                      30,2006**Revenue**
                $
                --
                $
                --
                $
                --**Expenses**Bank
                    charges and interest
                
                (23)
                
                503
                
                610Donated
                    Services
                
                1,500
                
                4,500
                
                9,250Donated
                    Rent
                
                750
                
                2,250
                
                4,625Investor
                    relations and investor communications
                
                8,325
                
                8,325
                
                8,325Office
                    costs
                
                221
                
                221
                
                228Professional
                    fees
                
                22,850
                
                41,174
                
                63,698Filing
                    fees
                
                1,360
                
                3,513
                
                4,232Impairment
                    of Mineral property costsand
                    deferred exploration expenditures
                
                1,770
                
                3,376
                
                6,57636,753
                
                63,862
                
                97,544**Net
                    Loss for the Period**
                $
                (36,753)
                $
                (63,862)
                $
                (97,544)**Basic
                    and diluted loss per share**
                $
                (0.00)
                $
                (0.00)**Weighted
                    average number****of
                    shares outstanding-Basic and Diluted**
                
                20,100,000
                
                20,100,000The
                    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 Management)**AccumulatedFromInceptionDate
                    ofThree
                    Month
                
                Nine
                    Month
                
                December
                    15,Period
                    Ended
                
                Period
                    Ended
                
                2004
                    toJune
                    30,
                
                June
                    30,
                
                June
                    30,2006
                
                2006
                
                2006**Operating
                    Activities**Net
                    Loss for the period
                $
                (36,753)
                $
                (63,862)
                $
                (97,544)Adjustment
                    to reconcile net loss to net cash used in operating
                    activitesImpairment
                    of Mineral property costs anddeferred
                    exploration expenditures
                
                1,770
                
                3,376
                
                6,576Non
                    cash chargesDonated
                    Services
                
                1,500
                
                4,500
                
                12,850Donated
                    Rent
                
                750
                
                2,250
                
                4,625Changes
                    in operating assets and liabilitiesAccounts
                    payable
                
                27,605
                
                26,817
                
                27,605Accrued
                    liabilities
                
                
                
                (5,000)Advances
                    on share subscriptions
                
                
                
                (12,500)Net
                    cash used in operating activities
                
                (5,128)
                
                (44,419)
                
                (45,888)**Investing
                    Activities**Mining
                    equipment acquired
                
                (36,696)
                
                (36,696)
                
                (36,696)Mineral
                    property costs anddeferred
                    exploraiton expenditures
                
                (1,770)
                
                (3,376)
                
                (6,576)Net
                    cash used in investing activities
                
                (38,466)
                
                (40,072)
                
                (43,272)**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**
                
                (43,594)
                
                16,509
                
                65,551**Cash,
                    Beginning of Period**
                
                105,545
                
                45,442
                
                --**Cash,
                    End of Period**
                $
                61,951
                $
                61,951
                $
                65,551**Supplementory
                    Information-non cash items:**Donated
                    Services
                
                1,500
                
                4,500
                
                12,850Donated
                    Rent
                
                750
                
                2,250
                
                4,625The
                    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 June 30,
                  2006****(Expressed
                  in U.S. Dollars)****(Unaudited
                  - Prepared by Management)**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)
              (33,682)Balance,
                  September 30, 2005
              
              1,000,000
              10
              990
              1,000
              7,125
              (33,682)
              (25,557)Capital
                  stock issued for cash-
                  November 28, 2005 at $0.10
              
              1,010,000
              10
              100,990
              101,000
              
              
              101,0002,010,000-
                  May 2006, forward split 1:10
              
              20,100,000Donated
                  Capital
              
              
              
              
              
              6,750
              
              6,750Net
                  loss, nine months ended June 30, 2006
              
              
              
              
              
              
              (63,862)
              (63,862)**Balance,
                  June 30, 2006**
              
              20,100,000
              $20
              $101,980
              $102,000
              $13,875
              $(97,544)
              $18,331The
                  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
 June
        30,
        2006
 (Expressed
        in U.S. Dollars)
 (Unaudited
        - Prepared by Management)
 ____________________________________________________________________________________
 
 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 $97,544 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 $6,576 is charged to income to June 30, 2006. If put into
        production, the costs of acquisition and exploration will
  -6-
 **AGA
              RESOURCES, INC.**
 (A
              Nevada
              Corporation)
 (An
              Exploration Stage Company)
 NOTES
              TO
              THE FINANCIAL STATEMENTS
 June
              30,
              2006
 (Expressed
              in U.S. Dollars)
 (Unaudited
              - Prepared by Management)
 ____________________________________________________________________________________________


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-
 **AGA
              RESOURCES, INC.**
 (A
              Nevada
              Corporation)
 (An
              Exploration Stage Company)
 NOTES
              TO
              THE FINANCIAL STATEMENTS
 June
              30,
              2006
 (Expressed
              in U.S. Dollars)
 (Unaudited
              - Prepared by Management)
 ____________________________________________________________________________________________
  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-
 **AGA
                  RESOURCES, INC.**
 (A
                  Nevada
                  Corporation)
 (An
                  Exploration Stage Company)
 NOTES
                  TO
                  THE FINANCIAL STATEMENTS
 June
                  30,
                  2006
 (Expressed
                  in U.S. Dollars)
 (Unaudited
                  - Prepared by Management)
 ____________________________________________________________________________________________
 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.
 -9-
 **AGA
                    RESOURCES, INC.**
 (A
                    Nevada
                    Corporation)
 (An
                    Exploration Stage Company)
 NOTES
                    TO
                    THE FINANCIAL STATEMENTS
 June
                    30,
                    2006
 (Expressed
                    in U.S. Dollars)
 (Unaudited
                    - Prepared by Management)
 ____________________________________________________________________________________________
 Note
        3  Mineral
        Property
  The
        company has the right to mine, but does not own the underlying 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. This property
        is under tenure number 503912 and expires January 16, 2007. Costs written
        off as
        impaired to June 30, 2006 total $6,576, $3,376 thereof for nine month ended
        June
        30, 2006, and $3,200 thereof for year ended September 30, 2005.
 
 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 June 30, 2006 the Company
        issued 20,100,000 (post forward split) common shares for total cash proceeds
        of
        $102,000.
  At
        June
        30, 2006 there were no outstanding stock options or warrants.
 
 Note
                  5
              Related
                  Party Transactions
  As
        at
        June 30, 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
        June 30, 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. 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 June 30, 2006. There
        are
        no current or deferred tax expenses for the period ended June 30, 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-
 **AGA
                RESOURCES, INC.**
 (A
                Nevada
                Corporation)
 (An
                Exploration Stage Company)
 NOTES
                TO
                THE FINANCIAL STATEMENTS
 June
                30,
                2006
 (Expressed
                in U.S. Dollars)
 (Unaudited
                - Prepared by Management)
 ____________________________________________________________________________________________
  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:
  June
                  30, 2006Deferred
                  tax assets
              $
                  33,165Valuation
                  allowance
              $
                  (33,165)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:
  June
                  30, 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 June 30, 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 $97,544.
 
 Note
        7  Mining
        equipment
 
 As
        at May
        19, 2006, the Company acquired mineral equipments (diamond core drilling
        package) from Omega Services for the total amount of $40,365 [as per Form
        8-K,
        filed May 25, 2006; which is correct?]. Terms of the payment is as
        follows:
 
 a)
              pay
                  to Omega Services $9,091 upon signing this agreement
                  (paid)
 b)
              pay
                  to Omega Services $9,091 within four months after signing this
                  agreement
 c)
              pay
                  to Omega Services $18,514 within six months after signing this
                  agreement
 
 No
        depreciation has been recorded in this financial statements, management decided
        to record the depreciation commence on the date of drilling.
 -11-
 **AGA
                  RESOURCES, INC.**
 (A
                  Nevada
                  Corporation)
 (An
                  Exploration Stage Company)
 NOTES
                  TO
                  THE FINANCIAL STATEMENTS
 June
                  30,
                  2006
 (Expressed
                  in U.S. Dollars)
 (Unaudited
                  - Prepared by Management)
 ____________________________________________________________________________________________
  Note
        8  Acquisition
        of Triumph Research Limited
 On
        June
        27, 2006, the company closed an agreement with Triumph Research Limited,
        a
        corporation organized and existing under the laws of British Virgin Islands
        (“Triumph”), Beijing Tangde International Film and Culture Co., Ltd., a company
        organized and existing under the laws of the People’s Republic of China
        (“Tangde”), and the Triumph stockholders. Pursuant to the terms of the
        agreement, all of the issued and outstanding four shares of capital stock,
        $1.00
        par value, of Triumph were to be exchanged in the aggregate for 3,209,000
        investment shares of common stock, $0.00001 par value of AGA Resources Inc.
        subject to the $600,000 contributed by Triumph into its Joint Venture company
        with Tangde.
 
 To
        date
        of these financial statements, the $600,000 contribution by Triumph into
        its
        Joint Venture company with Tangde has not been completed, therefore, 3,209,000
        common shares of AGA have not been issued.
 
 The
        financial statements of AGA will be consolidated by the date the above share
        exchange is completed.
  -12-
   **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 $100,100. We believe the money will allow us to operate for 12 months.





As
      of
      June 30, 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.




During
      the second quarter of 2006, the Company has hired a qualified geologist to
      take
      a mineral sample and have it tested by a lab. The result shows that there is
      no
      anomalous alteration or metallic mineralization in the samples examined. The
      Company also signed an agreement to purchase core drilling equipment to conduct
      the core drilling. As of June 30, 2006, the Company has spent C$10,000 for
      this
      diamond core drilling equipment in order to drill for core samples to be
      analyzed for mineral content, and has agreed to spend a total of C$40,365.12
      for
      the equipment.




On
      May
      22, 2006, the Company has appointed a new director, Mr. John Hui. Mr. Hui has
      over 14 years of business experience in China. He is the Founder and is serving
      as the Vice-Chairman and director of China World Trade Corporation (OTCBB:
      CWTD), a publicly traded company. Born in Hong Kong and educated in the United
      Kingdom, Canada and the United States, Mr. Hui has had a successful career
      in
      the Advertising, Media and the Telecommunications fields in North America before
      he started the venture in 1992 that led to the successful company known as
      CWTD.
      In the past few years, Mr. Hui has provided consultation services to numerous
      companies in China. He is a valued member of the U.S. Chamber of Commerce in
      Southern China and has served as a member on its election committee for the
      past
      two terms.




On
      June
      14, 2006, the Company signed an Agreement with Triumph Research Limited
      ("Triumph"), a B.V.I. company, and Beijing Tangde International Film and Culture
      Co., Ltd ("Tangde"), a Chinese company. According to the Agreement, the Company
      will issue 3,209,000 shares of common stock in exchange for all of the issued
      and outstanding shares of common stock of Triumph, by which Triumph will become
      a wholly owned subsidiary. Triumph has signed a Joint Venture Agreement with
      Tangde pursuant to which Triumph will invest RMB 5.1Million (about US$600,000)
      into the Joint Venture and control 51% ownership of the JV. Triumph will also
      hold three seats out of five on the board of the JV, including Chairman of
      the
      Board of Directors. Tangde will invest RMB 4.9 Million into the Joint Venture
      and control 49% of the ownership. The Joint Venture will mainly invest in the
      media and entertainment industry in China.




As
      part
      of the transaction, the Company conducted a due diligence investigation of
      Triumph prior to the Closing. In addition, the Company can elect not to deliver
      the 3,209,000 new investment shares if Triumph has not funded the RMB 5.1
      Million to the JV. The transaction closed on June 27, 2006. The Company has
      elected not to deliver the 3,209,000 new investment shares at the closing
      inasmuch as Triumph has not funded the RMB 5.1 Million to the JV to date. In
      the
      event that Triumph defaults under its obligations to fund the joint venture,
      the
      Company may elect not to deliver the shares and also has the right to rescind
      the transaction. It also has other legal remedies inasmuch as Triumph promised
      to deliver the funds to the JV as part of the closing agreement. The Company
      intends to participate in the JV through its wholly owned subsidiary, Triumph,
      and also to continue its exploration of mineral properties in British Columbia,
      Canada.




**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 or become
      profitable from investing in the JV with Tangde.





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 June 30, 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 June 30, 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
      exploration activities.




**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
      June 30, 2006, our total assets were $98,647 and our total liabilities were
      $80,316.





**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.


-13-


**(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 June 30, 2006 to pay operating expenses and accounting fees.
      The
      balance is available to cover the costs of operating 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 AND REPORTS.**





A.
      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.






B.
      REPORTS




**1.**
            Form
                8-K filed May 25, 2006 - reporting the entry into a material definitive
                agreement to acquire diamond core drilling equipment for
                C$40,365.12.


**2.**
            Form
                8-K filed May 26, 2006 - reporting the appointment of Mr. John Hui
                to the
                Registrant’s Board of Directors.


**3.**
            Form
                8-K filed June 12, 2006 - reporting a 10:1 forward stock split and
                symbol
                change to AGAO.


**4.**
            Form
                8-K filed June 15, 2006 - reporting the entry into a material definitive
                agreement to acquire Triumph Research Limited, a B.V.I. company for
                3,209,000 common shares.


**5.**
            Form
                8-K filed June 29, 2006 - reporting the closing of the acquisition
                of
                Triumph Research Limited.


**6.**
            Form
                8-K/A filed June 30, 2006 - reporting the audited and pro forma financial
                results pursuant to Item 9.01 of Form 8-K relating to the acquisition
                of
                Triumph Research Limited.


**7.**
            **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
      August, 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