UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-QSB



(Mark One)



|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------



For the quarterly period ended June 30, 2007



or



|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________
|- | ----------------------------------------------------------------------------------------------------------------------------------------------



Banner Resources Inc.

(Exact Name of Small Business Registrant as Specified in its Charter)



|Nevada                                                         |  | 98-0446606                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State of other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)
|                                                               |  |                                     
|206 - 595 Howe Street                                          |  |                                     
|Vancouver, British Columbia, Canada                            |  | V6C 2T5                             
|(Address of Principal Executive Offices)                       |  | (Zip Code)                          



(604) 681-2575

(Registrants Telephone Number, including Area Code)



Check whether the issuer (1) has filed all documents and reports  required to be
filed by Sections 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 filings for the past 90
days.
     Yes                  No

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated   filer,   or   a   non-accelerated   filer.   See   definition   of
accelerated filer and large accelerated  filer  in Rule 12b-2 of the
Exchange Act:

Large accelerated filer   
     Acceleratedfiler  
     Non-accelerated filer



Indicate by check mark whether the  registrant is a shell company (as defined by
Rule 12b-2 of the Exchange Act.):
     Yes 
    No



APPLICABLE ONLY TO CORPORATE ISSUERS:



State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date:  7,445,000 shares of Common Stock as of August 13, 2007



Transitional  Small Business  Disclosure  format (check one):
     Yes 
    No









---





TABLE OF CONTENTS

Form 10-QSB

June 30, 2007





| | Page
| | ----



PART I  FINANCIAL INFORMATION



Item 1: Financial Statements



| | Balance Sheets, June 30, 2007 and March 31, 2007 | 1
| | ------------------------------------------------ | -



Statements of Operations for the three month periods ended June 30, 2007 and 2006 and

| | from the date of inception on January 24, 2005 through June 30, 2007 | 2
| | -------------------------------------------------------------------- | -



| | Statements of Cash Flows for the three month periods ended June 30, 2007 and 2006 | 3
| | --------------------------------------------------------------------------------- | -



| | Notes to Financial Statements | 4  7
| | ----------------------------- | -----



| | Item 2: Managements Discussion and Analysis of Financial Condition or Plan of Operation | 8
| | ---------------------------------------------------------------------------------------- | -



| | Item 3: Controls and Procedures | 14
| | ------------------------------- | --





PART II  OTHER INFORMATION



| | Item 1: Legal Proceedings | 14
| | ------------------------- | --



| | Item 2: Unregistered Sales of Equity Securities and Use of Proceeds | 14
| | ------------------------------------------------------------------- | --



| | Item 3: Default Upon Senior Securities | 14
| | -------------------------------------- | --



| | Item 4: Submission of Matters to a Vote of Security Holders | 14
| | ----------------------------------------------------------- | --



| | Item 5: Other Information | 14
| | ------------------------- | --



| | Item 6: Exhibits | 14
| | ---------------- | --



| | Signatures | 15
| | ---------- | --

---





PART I



ITEM 1. FINANCIAL STATEMENTS



The accompanying unaudited financial statements have been prepared in accordance
with the  instructions  to Form 10-QSB and Item 310(b) of  Regulation  S-B, and,
therefore, do not include all information and footnotes necessary for a complete
presentation  of financial  position,  results of  operations,  cash flows,  and
stockholders  equity in  conformity  with  generally  accepted  accounting
principles.  In the opinion of management,  all adjustments considered necessary
for a fair presentation of the results of operations and financial position have
been  included  and all  such  adjustments  are of a  normal  recurring  nature.
Operating  results for the three months ended June 30, 2007 are not  necessarily
indicative  of the results that can be expected for the fiscal year ending March
31, 2008.



As used in this  Quarterly  Report,  the terms  we,  us,
our,  the  Company  and  Banner  mean Banner
Resources Inc., unless otherwise indicated. All dollar amounts in this Quarterly
Report are in U.S. dollars unless otherwise stated.



---





Banner Resources Inc.

(An Exploration Stage Company)

Consolidated Balance Sheets

(Expressed in U.S. dollars)





|                                                                                      | June 30,
2007
$ | March 31,
2007
$
|------------------------------------------------------------------------------------- | --------------- | ----------------
|                                                                                      | (Unaudited)     |                 
|ASSETS                                                                                |                 |                 
|                                                                                      |                 |                 
|Current Assets                                                                        |                 |                 
|                                                                                      |                 |                 
|Cash                                                                                  | 41,655          | 61,254          
|Prepaid expenses                                                                      | 37              | 1,000           
|                                                                                      |                 |                 
|Total Assets                                                                          | 41,692          | 62,254          
|                                                                                      |                 |                 
|                                                                                      |                 |                 
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)                                        |                 |                 
|                                                                                      |                 |                 
|Current Liabilities                                                                   |                 |                 
|                                                                                      |                 |                 
|Accounts payable                                                                      | 23,951          | 17,846          
|Accrued liabilities                                                                   | 1,540           | 610             
|Due to related parties (Notes 4(b) and (c))                                           | 8,071           | 7,834           
|Loans payable (Note 5)                                                                | 9,640           | 14,640          
|                                                                                      |                 |                 
|Total Liabilities                                                                     | 43,202          | 40,930          
|                                                                                      |                 |                 
|Contingencies and Commitments (Notes 1, 3, and 6)                                     |                 |                 
|                                                                                      |                 |                 
|Stockholders Equity (Deficit)                                                        |                 |                 
|                                                                                      |                 |                 
|Common Stock
Authorized: 75,000,000 shares, par value $0.001
Issued: 7,445,000 shares | 7,445           | 7,445           
|                                                                                      |                 |                 
|Additional Paid-in Capital                                                            | 136,250         | 136,250         
|                                                                                      |                 |                 
|Donated Capital (Note 4(a))                                                           | 28,266          | 23,766          
|                                                                                      |                 |                 
|Accumulated Other Comprehensive Loss                                                  | (1,812)         | (200)           
|                                                                                      |                 |                 
|Deficit Accumulated During the Exploration Stage                                      | (171,659)       | (145,937)       
|                                                                                      |                 |                 
|Total Stockholders Equity (Deficit)                                                  | (1,510)         | 21,324          
|                                                                                      |                 |                 
|Total Liabilities and Stockholders Equity (Deficit)                                  | 41,692          | 62,254          
|                                                                                      |                 |                 





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

1



---





Banner Resources Inc.

(An Exploration Stage Company)

Consolidated Statements of Operations

(Expressed in U.S. dollars)

(Unaudited)





|                                        |  |  |  | Accumulated
From
January 24, 2005
(Date of Inception)
to June 30, | For the
Three Months
Ended
June 30, | For the
Three Months
Ended
June 30,
|--------------------------------------- |  |  |  | ----------------------------------------------------------------- | ----------------------------------- | -----------------------------------
|                                        |  |  |  | 2007                                                              | 2007                                | 2006                               
|                                        |  |  |  | $                                                                 | $                                   | $                                  
|                                        |  |  |  |                                                                   |                                     |                                    
|Revenue                                 |  |  |  |                                                                  |                                    |                                   
|                                        |  |  |  |                                                                   |                                     |                                    
|                                        |  |  |  |                                                                   |                                     |                                    
|Expenses                                |  |  |  |                                                                   |                                     |                                    
|                                        |  |  |  |                                                                   |                                     |                                    
|Consulting                              |  |  |  | 1,919                                                             |                                    |                                   
|General and administrative              |  |  |  | 8,315                                                             | 2,767                               | 2                                  
|Management fees (Note 4(a))             |  |  |  | 29,000                                                            | 3,000                               | 3,000                              
|Mineral property costs                  |  |  |  | 27,796                                                            | 1,430                               |                                   
|Rent (Note 4(a))                        |  |  |  | 17,854                                                            | 1,500                               | 1,500                              
|Professional services                   |  |  |  | 81,510                                                            | 17,025                              | 7,900                              
|Travel                                  |  |  |  | 5,265                                                             |                                    |                                   
|                                        |  |  |  |                                                                   |                                     |                                    
|Total Expenses                          |  |  |  | 171,659                                                           | 25,722                              | 12,402                             
|                                        |  |  |  |                                                                   |                                     |                                    
|Net Loss                                |  |  |  | (171,659)                                                         | (25,722)                            | (12,402)                           
|                                        |  |  |  |                                                                   |                                     |                                    
|Other Comprehensive Loss                |  |  |  |                                                                   |                                     |                                    
|                                        |  |  |  |                                                                   |                                     |                                    
|Foreign Currency Translation Adjustment |  |  |  | (1,812)                                                           | (1,612)                             | (395)                              
|                                        |  |  |  |                                                                   |                                     |                                    
|Comprehensive Loss                      |  |  |  | (173,471)                                                         | (27,334)                            | (12,797)                           
|                                        |  |  |  |                                                                   |                                     |                                    
|                                        |  |  |  |                                                                   |                                     |                                    
|Net Loss Per Share  Basic and Diluted  |  |  |  |                                                                   |                                    |                                   
|                                        |  |  |  |                                                                   |                                     |                                    
|Weighted Average Shares Outstanding     |  |  |  |                                                                   | 7,445,000                           | 6,945,000                          
|                                        |  |  |  |                                                                   |                                     |                                    





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

2



---





Banner Resources Inc.

(An Exploration Stage Company)

Consolidated Statements of Cash Flows

(Expressed in U.S. dollars)

(Unaudited)





|                                                                           | Accumulated
From
January 24, 2005
(Date of Inception)
To June 30, | For the
Three Months
Ended
June 30, | For the
Three Months
Ended
June 30,
|-------------------------------------------------------------------------- | ----------------------------------------------------------------- | ----------------------------------- | -----------------------------------
|                                                                           | 2007                                                              | 2007                                | 2006                               
|                                                                           | $                                                                 | $                                   | $                                  
|                                                                           |                                                                   |                                     |                                    
|Operating Activities                                                       |                                                                   |                                     |                                    
|                                                                           |                                                                   |                                     |                                    
|Net loss for the period                                                    | (171,659)                                                         | (25,722)                            | (12,402)                           
|                                                                           |                                                                   |                                     |                                    
|Adjustment to reconcile net loss to net cash used in operating activities: |                                                                   |                                     |                                    
|                                                                           |                                                                   |                                     |                                    
|Donated services                                                           | 28,266                                                            | 4,500                               | 4,500                              
|Stock issued for mineral property                                          | 320                                                               |                                    |                                   
|                                                                           |                                                                   |                                     |                                    
|Changes in operating assets and liabilities:                               |                                                                   |                                     |                                    
|                                                                           |                                                                   |                                     |                                    
|Prepaid expenses                                                           | (37)                                                              | 963                                 | (1,000)                            
|Accounts payable and accrued liabilities                                   | 25,491                                                            | 7,035                               | 2,982                              
|Due to related parties                                                     | 8,071                                                             | 237                                 |                                   
|                                                                           |                                                                   |                                     |                                    
|Net Cash Used in Operating Activities                                      | (109,548)                                                         | (12,987)                            | (5,920)                            
|                                                                           |                                                                   |                                     |                                    
|Financing Activities                                                       |                                                                   |                                     |                                    
|                                                                           |                                                                   |                                     |                                    
|Proceeds from loans payable                                                | 14,640                                                            |                                     |                                    
|Repayment of loans payable                                                 | (5,000)                                                           | (5,000)                             |                                   
|Common stock issued for cash                                               | 143,375                                                           |                                    |                                   
|                                                                           |                                                                   |                                     |                                    
|Net Cash Provided by (Used In) Financing Activities                        | 153,015                                                           | (5,000)                             |                                   
|                                                                           |                                                                   |                                     |                                    
|Effect of Exchange Rate Changes on Cash                                    | (1,812)                                                           | (1,612)                             | (395)                              
|                                                                           |                                                                   |                                     |                                    
|Increase (Decrease) in Cash                                                | 41,655                                                            | (19,599)                            | (6,315)                            
|                                                                           |                                                                   |                                     |                                    
|Cash  Beginning of Period                                                 |                                                                  | 61,254                              | 6,383                              
|                                                                           |                                                                   |                                     |                                    
|Cash  End of Period                                                       | 41,655                                                            | 41,655                              | 68                                 
|                                                                           |                                                                   |                                     |                                    
|                                                                           |                                                                   |                                     |                                    
|Supplemental Disclosures:                                                  |                                                                   |                                     |                                    
|                                                                           |                                                                   |                                     |                                    
|Interest paid                                                              |                                                                  |                                    |                                   
|Income taxes paid                                                          |                                                                  |                                    |                                   





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

3



---

Banner Resources Inc.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

(Expressed in U.S. dollars)

(Unaudited)





|1. | Exploration Stage Company
|-- | -------------------------

Banner Resources (the Company) was incorporated in the State of Nevada on January 24, 2005. The Company has acquired a 100% interest in seven mineral claims located in the Clinton Mining Division, British Columbia. See Note 6 for the subsequent loss of these claims.

The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (SFAS) No.7 Accounting and Reporting by Development Stage Enterprises. The Companys principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable.

These consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenue and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploitation of economically recoverable reserves in its resource properties, confirmation of the Companys interests in the underlying properties, and the attainment of profitable operations. As at June 30, 2007 the Company has accumulated losses
of $171,659 since inception and a working capital deficit of $1,510. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Companys ability to continue as a going concern.

The Company is offering, by way of an SB-2 Registration Statement (SB-2) which was declared effective on August 1, 2006, up to 3,000,000 common shares at a price of $0.10 per share for gross proceeds of up to $300,000. The offering will be open for a period of nine months from the effective date of the SB-2, on a best efforts basis. As at June 30, 2007, the Company did not issue any common shares with respect to the SB-2 and has now expired. The SB-2 also registered up to 5,445,000 common shares for resale by existing shareholders of the Company. The Company will not receive any proceeds from the resale of common shares by the selling stockholders.



|2. | Summary of Significant Accounting Policies
|-- | ------------------------------------------

| | a) | Basis of Presentation
| | -- | ---------------------

These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. These consolidated financial statements include accounts of the Company and its wholly-owned subsidiary, Banner Exploration Ltd, a company incorporated in the Province of British Columbia, Canada, on January 26, 2005. All intercompany transactions and balances have been eliminated. The Companys fiscal year end is March 31.

| | b) | Interim Financial Statements
| | -- | ----------------------------

The interim unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Companys financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

| | c) | Use of Estimates
| | -- | ----------------

The preparation of consolidated 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. The Company regularly evaluates estimates and assumptions related to valuation of long-lived assets, donated services, stock based compensation and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of
costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Companys estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.



4



---

Banner Resources Inc.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

(Expressed in U.S. dollars)

(Unaudited)









| | d) | 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.

| | e) | Basic and Diluted Net Income (Loss) Per Share
| | -- | ---------------------------------------------

The Company computes net income (loss) per share in accordance with SFAS No. 128, Earnings per Share (SFAS 128). SFAS 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 including stock options, 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.

| | f) | Financial Instruments
| | -- | ---------------------

The fair values of cash, accounts payable, accrued liabilities, amounts due to related parties, and loans payable approximate their carrying values due to the immediate or short-term maturity of these financial instruments.

| | g) | Foreign Currency Transactions/Balances
| | -- | --------------------------------------

The Companys functional currency is the United States dollar. The consolidated financial statements of the Company are translated to United States dollars in accordance with SFAS No. 52 Foreign Currency Translation (SFAS No. 52). 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 consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

The functional currency of the wholly-owned subsidiary is the Canadian dollar. The financial statements of the subsidiary are translated to United States dollars in accordance with SFAS No. 52 using period-end rates of exchange for assets and liabilities, and average rates of exchange for the year for revenues and expenses. Translation gains (losses) are recorded in accumulated other comprehensive income (loss) as a component of stockholders equity. Foreign currency transaction gains and losses are included in current operations.



| | h) | Mineral Property Costs
| | -- | ----------------------

The Company has been in the exploration stage since its inception on January 24, 2005, and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property exploration costs are expensed as incurred. Mineral property acquisition costs are capitalized in accordance with EITF 04-2 Whether Mineral Rights Are Tangible or Intangible Assets when management has determined that probable future benefits consisting of a contribution to future cash inflows have been identified and adequate financial resources are available or are expected to be available as required to meet the terms of property acquisition and budgeted exploration and development expenditures. Mineral property acquisition costs are expensed as incurred if the criteria for
capitalization are not met. In the event that a mineral property is acquired through the issuance of the Companys shares, the mineral property will be recorded at the fair value of the respective property or the fair value of common shares, whichever is more readily determinable.

When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves and pre-feasibility, the costs incurred to develop such property are capitalized.



5



---

Banner Resources Inc.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

(Expressed in U.S. dollars)

(Unaudited)





| | 2. | Summary of Significant Accounting Policies (continued)
| | -- | ------------------------------------------------------

| | h) | Comprehensive Loss
| | -- | ------------------

SFAS No. 130, Reporting Comprehensive Income establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at June 30, 2007 and March 31, 2007, the Companys only component of comprehensive loss was foreign currency translation adjustments.

| | i) | 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 Accounting for Income Taxes 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.

| | j) | Donated Services
| | -- | ----------------

The Company recognizes professional services donated to the Company based upon their fair value. During the three-month period ended June 30, 2007, the Company recognized donated management services of $3,000 (2006 - $3,000), and donated rent of $1,500 (2006 - $1,500).

| | k) | Stock-based Compensation
| | -- | ------------------------

The Company records stock-based compensation in accordance with SFAS No. 123R Share Based Payments, using the fair value method. The Company has not issued any stock options since its inception.

| | l) | Recently Issued Accounting Pronouncements
| | -- | -----------------------------------------

In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115. This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157, Fair Value Measurements.The adoption of this statement is not expected to have a material effect on the Companys consolidated financial statements.



|3. | Mineral Property
|-- | ----------------

On February 1, 2005, the Company acquired a 100% interest in seven mineral claims consisting of 70 mineral claim units located in Clinton Mining Division, British Columbia, Canada, in consideration for the issuance of 320,000 common shares at a fair value price of $0.001 per share or $320 in total. The fair value of these common shares was determined to be $0.001 per share based on the cash sale of common stock on February 28, 2005 being the closest date shares were issued. The purchase price of $320 was charged to operations as mineral property costs as proven or probable reserves have not been established on the mineral property. The Company must pay the former owner of the mineral claims a 21⁄2% Net Smelter Royalty upon commencement of commercial production. However, the Company can acquire 11⁄2% of the Net Smelter Return for $1,000,000 within 12 months from commencement of
commercial production. An advance royalty payment of $25,000 will be payable annually commencing on February 1, 2008. If the Company does not make the advance royalty payment on February 1, 2008, the claims will be returned to the vendor. If the royalty of $25,000 is paid on February 1, 2008, this amount will be charged to operations if proven or probable reserves have not been found. During the three month period ended June 30, 2007, the Company incurred a total of $1,430 (2006 - $Nil) for mineral property costs. Subsequent to June 30, 2007, the Companys ownership of the claims expired and were claimed by another party. Refer to Note 6.



|4. | Related Party Transactions
|-- | --------------------------



| | a) | During the three month period ended June 30, 2007, the Company recognized a total of $3,000 (2006 $3,000) for donated services at $1,000 per month and $1,500 (2006 $1,500) for donated rent at $500 per month provided by the President of the Company.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | b) | As at June 30, 2007, the Company has an amount owing of $5,231 (March 31, 2007 - $5,231) to the former President of the Company for rent and management services incurred on behalf of the Company. The amount is non-interest bearing, unsecured, and due on demand.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



6



---

Banner Resources Inc.

(An Exploration Stage Company)

Notes to the Consolidated Financial Statements

(Expressed in U.S. dollars)

(Unaudited)





|4. | Related Party Transactions (continued)
|-- | --------------------------------------

| | c) | As at June 30, 2007, the Company has an amount owing of $2,840 (March 31, 2007 - $2,603) to directors of the Company for expenses incurred on behalf of the Company. The amount is non-interest bearing, unsecured, and due on demand.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 5. | Loans Payable
| | -- | -------------

During the year ended March 31, 2006, the Company received cash loans of $14,640. These loans are unsecured, non-interest bearing, and have no specific terms of repayment. During the three-month period ended June 30, 2007, $5,000 was repaid.

|6. | Subsequent Event
|-- | ----------------

On August 1, 2007, the Companys 100% interest in the seven mineral claims, as disclosed in Note 3, expired. The Company attempted to renew the mineral claims; however, technical problems in the mineral title reservation system prevented the Company from finalizing the renewal transaction. Subsequently, the existing mineral claims were claimed by another party. The Company is currently evaluating their legal and other options to revising the Companys existing claims.





7



---





FORWARD-LOOKING STATEMENTS



We use words like expects, believes, intends, anticipates, plans, targets, projects or estimates in this report. When used, these words and other, similar words and phrases or statements that an event, action or result will, may, could, or should occur, be taken or be achieved identify forward-looking statements. This report contains forward-looking information which may include, but is not limited to, statements with respect to the following:



| |  | the timing of regulatory and permitting matters;
| | - | ------------------------------------------------



| |  | the timing and outcome of our exploration;
| | - | ------------------------------------------



the estimation of mineral resources and the realization of mineral reserves, if any, based on mineral resource estimates;



| |  | estimates related to costs of exploration expenditures;
| | - | -------------------------------------------------------



| |  | requirements  for additional  capital and our ability to raise additional capital;
| | - | ----------------------------------------------------------------------------------



government regulation of mining operations, environmental risks, reclamation and rehabilitation expenses;



| |  | title disputes or claims;
| | - | -------------------------



| |  | limitations of insurance coverage; and
| | - | --------------------------------------



| |  | the future price of gold, silver or other metals.
| | - | -------------------------------------------------



Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected.



Our management has included projections and estimates in this report, which are based primarily on managements experience in the industry, assessments of our results of operations, discussions and negotiations with third parties and a review of information filed by our competitors with the Securities and Exchange Commission or otherwise publicly available. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation  subsequently  to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.



We qualify all the forward-looking statements contained in this report by the foregoing cautionary statements.



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



Overview



Banner Resources Inc. was incorporated under the laws of the state of Nevada on January 24, 2005. We have commenced limited business operations and we are considered an exploration stage company. To date, our activities include organizational matters, preliminary property investigations on the Chita claims, negotiating and purchasing those claims, obtaining a geology report on the Chita claims and the preparation and filing of the registration statement of which this prospectus is a part. In connection with the organization of our Company, the founding shareholders of our Company contributed an aggregate of US$5,875 cash in exchange for a total of 5,875,000 shares. As consideration for the acquisition of the Chita claims, we issued 320,000 shares of common stock to Valor Mines Inc.



In July 2005, we hired an independent geological consulting services company whose field crew carried out a program of mapping and sampling on the property and filed an assessment report with the BC Ministry of Energy and Mines.
We are working to keep the Chita claims in good standing.





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The Chita claims consist of seven mineral claims (Chita  claims)  consisting of an
aggregate  of 70 units,  subject to a 2.5% Net Smelter  Return  royalty.  Under our
agreement with Valor Mines Inc., we can
acquire 1.5% of the Net Smelter  Return for $1.0  million  within 12 months from
commencement  of  commercial  production.  We agreed to pay Valor Mines  advance
royalties of approximately  $25,000 annually  commencing February 1, 2008. If we
fail to pay  these  advance  royalties  by  February  1,  2008,  we will have to
transfer  ownership  of the Chita  claims back to Valor.  We acquired  the Chita
claims by issuing  320,000  shares of common stock to Valor Mines Inc.



In order to maintain the Chita claims in good standing,  we are required to make
minimal  expenditures on the claims or pay renewal fees to the B.C.  Ministry of
Energy and Mines.  We maintained the Chita claims through July 31, 2007. On July
31, 2007,  we attempted to pay the renewal fees prior to the  expiration  on the
B.C. Ministry of Energy and Mines - Mineral Titles Online system;  however, due
to technical  problems the system was  not available  to process  payments.  Section
35(1) of the Mineral  Tenure Act  operates  such that a mineral or placer  claim
forfeits  automatically when exploration and development work or payment instead
of work has not been  registered by the end of the expiry date of the claim. We
have been  informed  that this  statutory  provision is not set aside due to the
unavailability of Mineral Titles Online system and our claims expired. The Chita claims were claimed by another party.
We are currently in the process
of evaluating our legal and other options for reinstating our claims. The Chita
claims  were registered  in the  name of our  wholly  owned  subsidiary,  Banner
Exploration Ltd.



Between April and July 2005, we raised $22,500 cash from the sale of restricted stock and converted $15,000 of loans payable into stock by issuing 750,000 restricted stock to 10 persons at $0.05 per share.



During our present exploration stage, Mr. Krause, our president and secretary-treasurer, will only be devoting approximately 8 hours per week of his time to our business. We do not foresee this limited involvement as negatively impacting our company over the next 12 months as all exploratory work is being performed by an outside consultant. If, however, the demands of our business require more time of Mr. Krause, such as raising additional capital or addressing unforeseen issues with regard to our exploration efforts, they are prepared to adjust their timetables to devote more time to our business. However, they may not be able to devote sufficient time to the management of our business, as and when needed.



We are actively reviewing additional natural resources properties in Canada, USA and Africa. We are also exploring opportunities in other industries including the technology sector, biotechnology and communications. However, we have no current plans, arrangements or intentions to acquire any specific property or to pursue any potential business opportunity. We have no current plans, arrangements or intentions to enter into a joint venture with any specific party. However, we are always open to speak to third parties to explore business opportunities.



Our principal office is located at 206 - 595 Howe Street, Vancouver, British Columbia, V6C 2T5, and our phone number is (604) 681-2575.



Proposed Business



Our current business plan is to carry out exploration work on the Chita claims and to ascertain the quantities of base and precious metals. We will not be able to determine whether or not our mineral claims contain a mineral deposit, or reserve, until appropriate exploratory work is done and an economic evaluation based on that work concludes economic viability. We are presently in the exploration stage and there is no assurance that a mineral deposit exists on the mineral claims until appropriate geological exploration is done and a final comprehensive evaluation is concluded. There are no proven mineral reserves on the mineral claims and our proposed exploration program is entirely exploratory in nature.



The property that is the subject of our mineral claims is undeveloped and do not contain any open-pit or underground mines. There is no mining plant or equipment located on the property.



We will have to engage qualified geologists to conduct the mineral exploration program under industry standards. They will be responsible for hiring personnel and for all appropriate worker-related costs and will bill us for their services. This work is applicable to assessment requirements for the claims. The work outlined in the budget set out above will cover an additional year of tenure maintenance.



The exploration program proposed by Banner is designed to determine whether mineralization (minerals of value occurring in rocks) exists to the extent that further exploration is recommended to outline any such discovered mineralized zones. It is uncertain at this time the precise quantity of minerals in the property that would justify actual mining operations. If we decide to abandon our mineral claims at any stage of our exploration program, we intend to acquire other properties and conduct similar exploration programs. Other properties may be located in the same mining district or we may decide to seek properties in other locations in the Province of British Columbia, the United States, Africa or another part of the world.



We may also explore other business opportunities in other industries, including technology, biotechnology, communications and manufacturing. We may abandon our existing properties to pursue such opportunities although we have no current plans to do so.





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Interest in Mineral Claims



We spent  $14,000 on the Chita  claims and filed an  assessment  report with the
B.C. Ministry of Energy and Mines. In order to keep the claims in good standing,
we have to make  minimum  expenditures  on the  claims  and filed an  assessment
report with the B.C.  Mineral  Titles  Branch.  We  maintained  the Chita claims
through  July 31, 2007.  On July 31, 2007,  we attempted to pay the renewal fees
prior to the  expiration  on the B.C.  Ministry  of  Energy  and Mines - Mineral
Titles  Online  system;  however,  due to technical  problems the system was not
available to process payments.  Section 35(1) of the Mineral Tenure Act operates
such that a mineral or placer claim forfeits  automatically when exploration and
development  work or payment  instead of work has not been registered by the end
of the  expiry  date of the claim.  We have been  informed  that this  statutory
provision is not set aside due to the  unavailability  of Mineral  Titles Online
system, and our claims expired.  The Chita claims were claimed by another party.
We are  currently in the process of  evaluating  our legal and other options for
reinstating our claims.  The mineral claims were recorded in the name of our wholly
owned subsidiary, Banner Exploration Ltd.



There can be no  assurance  that we will be able to reinstate our  interests in the
Chita  claims.  Our failure to do so may have a material  adverse  affect on our
business and results of operations.



Chita Claims



Pursuant to the Property Acquisition Agreement dated February 1, 2005, Banner acquired a 100% undivided mineral interest in the Chita claims from Valor Mines Inc. (Valor) and as consideration Banner issued 320,000 common shares to Valor. Valor retained a 2.5% Net Smelter Return Royalty on the mineral claims, but Banner has a right to repurchase 1.5% of the Net Smelter Return Royalty interest at a price of $1,000,000 within 12 months from commencement of commercial production. Under the Property Acquisition Agreement, we will have to pay Valor $25,000 per year as advance royalties commencing February 1, 2008. If we fail to pay Valor the $25,000 by February 1, 2008, we must transfer ownership of the mineral claims back to Valor. Valor has agreed to provide geological consulting services for the claims at standard commercial prices if requested by us.



The Chita claims consist of seven mineral claims representing a total of 70 units that has been staked and recorded as a four post claim. In the Province of British Columbia, each unit equals 25 hectares. The following table sets forth the details of the claim.



|Claim Name | Units | Record Number | 
|---------- | ----- | ------------- | 
|CHITA      | 18    | 358185        | 
|RED #1     | 1     | 358186        | 
|RED #2     | 1     | 358187        | 
|CHITA #2   | 8     | 358188        | 
|CHITA #3   | 12    | 358189        | 
|CHITA #5   | 12    | 360745        | 
|CHITA #6   | 18    | 360746        | 



Net Smelter Return means generally the gross proceeds received by the Company from the sale of minerals produced from the Chita claims to a party that is arms length to the Company, less all amounts previously paid by the Company to Valor before commencement of commercial production of minerals, and less costs related to insurance, transportation, sales, marketing, taxes and charges.



We were informed that the Chita claims expired on July 31, 2007 and were claimed by another party after the Mineral Titles Online System was unavailable and we were unable to pay the maintenance fees.

Plan of Operation



Our business  plan,  assuming we can reinstate  our Chita claims,  is to proceed
with the  exploration  of the  Chita  claims  to  determine  whether  there  are
commercially  exploitable reserves of gold or other base and precious metals. In
February 2005, Mr. Glen Macdonald, P.Geo. was hired by Banner to provide an
initial  Geology  Report on the Chita claims.  The purpose of this report was to
evaluate the area of the claim group,  and the prior  exploration work conducted
on the claims, and to recommend an exploration program.



Exploration in 2005



Mr. Macdonald recommended an initial exploration program consisting of geological sampling and mapping program on the property. In July 2005, we hired an independent geological consulting services company whose field crew carried out a program of mapping and sampling on the property and filed an assessment report with the BC Ministry of Energy and Mines.



Rock samples were selected from various rock units to be analyzed by thin section and whole rock chemical analysis. Several copper mineralized breccia samples were collected to be tested for gold content.



Further work is required to acquire additional samples from the anomalous areas and to trace them out along strike. Geological mapping of the rock units is required. It will be necessary to determine if the geological trend is going off the property and, if so, whether additional claims will be required.





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Exploration in 2006



In June and July  2006,  the same  independent  geological  consulting  services
company field crew carried out a follow-up  program of sampling on the property.
However,  the 2006 exploration season in British Columbia was unusually busy and
the independent  geological  consulting  services company was unable to initiate
its assessment report until December 2006. On December 21, 2006, we filed notice
with the BC  Ministry  of Energy  and Mines of  mineral  claim  exploration  and
development  work for Cdn$6,000 which kept the claims in good standing until May
29, 2007. We subsequently paid cash in lieu of work of $1,206 to extend the good
standing   date  until   June    30,     2007. We then notified the BC Ministry of
Energy and Mines that due to weather and snow pack  conditions  its  exploration
program  would  be  delayed  beyond  June  30,  2007  and  that we will  file an
assessment report to keep the Chita claims in good standing once the exploration
work could be completed.  We are working to keep the Chita claims in good standing.



Rock samples were selected from various rock units to be analyzed by thin section and whole rock chemical analysis. Several copper mineralized breccia samples were collected to be tested for gold content.



Further work is required to acquire additional samples from the anomalous areas and to trace them out along strike. Geological mapping of the rock units is required. It will be necessary to determine if the geological trend is going off the property and, if so, whether additional claims will be required.



Recommended Exploration Program 2007



We anticipate we will, assuming we are able to reinstate our Chita claims,  undertake  field work in the summer of 2007,  weather and
snow  pack  conditions  permitting.  Depending  on the  results  of the  initial
exploration program, if our geologist recommends a follow-up program in 2007, we
plan to  follow-up  with more  detailed  mapping and  sampling  at an  estimated
minimum  cost of $15,000,  assuming  adequate  financing  is  available.  We may
conduct more detailed  geophysical surveys utilizing more sensitive  geophysical
techniques  to enhance  the data that  currently  exists on the claims and focus
specifically  upon  the  presently  known  mineralized  areas.  We  will do more
prospecting to better  understand the significance of the results of the earlier
exploration programs and guide future work.



Additionally, assuming we are able to reinstate our Chita claims, we have been
reviewing  a  potentially  expanded  field  season  in 2007  (subject  to  final
analysis, budget availability,  and independent  recommendations).  We have been
approached by our neighboring  mineral tenure holders to join them in a regional
airborne survey (dighem em / magnetic  geophysical survey). The advantage to the
Company  is  significant  in that  being a part of a large  regional  program is
extremely cost effective  (overall program in excess of $145,000) with our share
being   approximately   $30,000.   If  we  were  to  contract  the  same  survey
independently,  we estimate that the cost would be closer to $50,000. We will be
required  to raise  additional  capital to fund this  exploration  program if we
elect to proceed.



Further, we are also reviewing a program (subject to final analysis, budget availability, and independent recommendations) for a trenching program which would allow geologists to sample fresh rock as the surface rocks are extremely weathered and leached (cretaceous period between 65 and 135 million years old). We estimate that this program will cost us approximately $100,000. We will be required to raise additional capital to fund this exploration program if we elect to proceed.



On June 30, 2007 we had cash on hand of $41,655 and a working capital deficit of
$1,510. Current liabilities at June 30, 2007 included unsecured loans payable to
two shareholders of $9,640,  $5,231 payable to a former officer and director for
rent and  management  services  and $2,840  payable to  directors  for  expenses
incurred on behalf of the company.  During the quarter  ended June 30, 2007,  we
repaid $5,000 of the outstanding amount owed to a shareholder under an unsecured
loan.  During the quarter  ended June 30, 2007,  we recognized a total of $3,000
for  services  and a total of $1,500  for rent  donated  by Robert  Krause,  our
President and Treasurer.  We anticipate  that  Mr. Krause  will continue to
donate  services and rent until we have  sufficient  working  capital to pay his
salary and rent. We do not have sufficient funds to satisfy our on-going working
capital  requirements  for the fiscal quarter  ending  September 30, 2007 or the
fiscal year ending March 31,  2008.  We  anticipate  that we will be required to
raise additional  financing during the quarter ending September 30, 2007 to fund
our on-going working capital requirements.



We are currently evaluating our options for reinstating our Chita claims and, if
successful, a possible  2007/2008 work program, which will require
us to raise additional capital beyond our working capital requirements.  If we are unable to reinstate our Chita claims, we intend to pursue other business opportunities.



We are presently exploring opportunities to raise additional funding in the form of equity or debt. However, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common



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stock to fund additional phases of the exploration program should we decide to proceed or acquire or pursue new business opportunities. We do not have any arrangements in place for any future equity financing.



We anticipate that we will incur the following expenses over the next 12 months:



| | (1) | $15,000 in connection with our currently planned geological work program,  if any, which
may  increase   depending  on  our  ability  to  raise   additional   financing;
and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | $60,000 for operating and administrative expenses.
| | --- | --------------------------------------------------



We do not have plans to purchase any significant equipment or change the number of our employees during the next 12 months. We may also pursue business opportunities in other industries or acquire other properties although we have no current plans or arrangements to do so.



Results of Operations



During  the  quarter  ended  June 30,  2007,  we had total  expenses  of $25,722
($12,402  2006), which included management fees of $3,000 ($3,000 - 2006),
rent of $1,500 ($1,500  2006),  profession service fees of $17,025 ($7,900
 2006), mineral property costs of $1,430 (nil  2006) and general and
administrative  expenses of $2,767 ($2  2006). Total expenses increased by
$13,320 or 105% from $12,402 for the quarter  ended June 30, 2006 to $25,722 for
the quarter  ended June 30,  2007,  as overall  costs  increased  as a result of
increased  costs  related  to  our  SEC  reporting   obligations  and  increased
accounting and auditing expenses.  We anticipate total expenses will continue to
increase during the remainder of 2007 and into 2008.



During the quarter ended June 30, 2007, we had a comprehensive  loss of $25,722,
compared to $12,402 for the same period in 2006.



During the quarter  ended June 30,  2007,  we used cash of $12,987 in  operating
activities,  and we used cash of  $5,000  for the  repayment  of a loan due to a
shareholder.  We  also  used  cash  of  $1,612  as a  result  of the  effect  of
fluctuation   in  exchange   rates   between  the  U.S.   dollar  and   Canadian
dollar.



We have not attained profitable operations and are dependent upon obtaining financing to pursue exploration activities. For these reasons our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern.



Off-Balance Sheet Arrangements



The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.



Contractual Obligations



As of June 30, 2007, we had no non-cancelable contractual obligations.



CRITICAL ACCOUNTING POLICIES



The preparation of financial statements in conformity with generally accepted accounting principles requires our management to make estimates and assumptions that affect the reported amount 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. Our management routinely makes judgments and estimates about the effects of matters that are inherently uncertain.

We have identified certain accounting policies, described below, that are most important to the portrayal of our current financial condition and results of operations. Our significant accounting policies are disclosed in Note 2 to the audited financial statements included in this Quarterly Report.





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| | Exploration Stage Enterprise
| | ----------------------------

The Companys financial statements are prepared using the accrual method of accounting and according to the provisions of Statement of Financial Accounting Standards No. 7 (SFAS 7), Accounting and Reporting for Development Stage Enterprises, as it devotes substantially all of its efforts to acquiring and exploring mineral properties. Until such properties are acquired and developed, the Company will continue to prepare its financial statements and related disclosures in accordance with entities in the exploration stage.

| | Mineral Property Acquisition Payments and Exploration Costs
| | -----------------------------------------------------------

The Company follows a policy of expensing exploration expenditures until a production decision is made in respect of the project and the Company is reasonably assured that it will receive regulatory approval to permit mining operations which may include the receipt of a legally binding project approval certificate.

Management periodically reviews the carrying value of its investments in mineral leases and claims with internal and external mining related professionals. A decision to abandon, reduce or expand a specific project is based upon many factors including general and specific assessments of mineral deposits, anticipated future mineral prices, anticipated future costs of exploring, developing and operating a production mine, the expiration term and ongoing expenses of maintaining mineral properties and the general likelihood that the Company will continue exploration on such project. The Company does not set a pre-determined holding period for properties with unproven deposits, however, properties which have not demonstrated suitable metal concentrations at the conclusion of each phase of an exploration program are re-evaluated to determine if future exploration is warranted, whether there has
been any impairment in value and that their carrying values are appropriate.

If an area of interest is abandoned or it is determined that its carrying value cannot be supported by future production or sale, the related costs are charged against operations in the year of abandonment or determination of value. The amounts recorded as mineral leases and claims represent costs to date and do not necessarily reflect present or future values.

The Companys exploration activities and proposed mine development are subject to various laws and regulations governing the protection of the environment. These laws are continually changing, generally becoming more restrictive. The Company has made, and expects to make in the future, expenditures to comply with such laws and regulations.

The accumulated costs of properties that are developed on the stage of commercial production will be amortized to operations through unit-of-production depletion.

| | Impaired Asset Policy
| | ---------------------

The Company periodically reviews its long-lived assets when applicable to determine if any events or changes in circumstances have transpired which indicate that the carrying value of its assets may not be recoverable, pursuant to guidance established in Statement of Financial Accounting Standards No. 144 (SFAS 144), Accounting for the Impairment or Disposal of Long-lived Assets. The Company determines impairment by comparing the undiscounted future cash flows estimated to be generated by its assets to their respective carrying amounts. If impairment is deemed to exist, the assets will be written down to fair value.

| | Use of Estimates
| | ----------------

The preparation of financial statements in conformity with 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 for the reporting period. Actual results could differ from these estimates.



| | Environmental Protection and Reclamation Costs
| | ----------------------------------------------

The operations of the Company have been, and may in the future be affected from time to time in varying degrees by changes in environmental regulations, including those for future removal and site restorations costs. Both the likelihood of new regulations and their overall effect upon the Company may vary from region to region and are not predictable.



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Environmental expenditures that relate to ongoing environmental and reclamation programs are charged against statements of operations as incurred or capitalized and amortized depending upon their future economic benefits. The Company does not currently anticipate any material capital expenditures for environmental control facilities because its property holding is at an early stage of exploration.



ITEM 3. CONTROLS AND PROCEDURES



We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the specified time periods. As of the end of the period covered by this report, our principal executive officer and principal financial officer evaluated the effectiveness of our disclosure controls and procedures. Based on the evaluation, which disclosed no significant deficiencies or material weaknesses, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective and that our disclosure controls and procedures were adequately designed and are effective to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in applicable rules and forms.  In addition, our principal executive officer and principal financial officer have determined that the disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that are filed under the Exchange Act are accumulated and communicated to management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.



There were no changes in our internal control over financial reporting (as defined in Rule 13(a)-15(f) or 15(d)-15(f)) that occurred during the Companys the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



PART II  OTHER INFORMATION



ITEM 1. LEGAL PROCEEDINGS



None



ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS



None.

ITEM 3. DEFAULT UPON SENIOR SECURITIES



None



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



None



ITEM 5. OTHER INFORMATION



None



ITEM 6. EXHIBITS



Exhibit 31.1          Certification of Robert Krause, President and Treasurer, of Banner Resources Inc. pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.



Exhibit 32.1          Certification of Robert Krause, President and Treasurer, of Banner Resources Inc., pursuant to 18 U.S.C. 1350.







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SIGNATURES



In accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



Date: August 20, 2007



BANNER RESOURCES INC.



|By/s/ Robert Krause | 
|------------------- | 

Robert Krause, President and Treasurer

(Principal Executive Officer and Principal Financial and Accounting Officer)





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