UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB

[ X ] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934

      For the period ended September 30, 2006

[    ]Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act
      of 1934

      For the transition period       to

            Commission File Number   333-124632



         			SHEPARD INC.
         -----------------------------------------------------------

      (Exact name of small Business Issuer as specified in its charter)


             Nevada                                        Applied For

(State or other jurisdiction of                 (IRS Employer Identification
No.)
incorporation or organization)

470 Granville Street. Suite 318
Vancouver, British Columbia, Canada		     V6C 1V5

(Address of principal executive offices)        (Postal or Zip Code)


Issuer's telephone number, including area code:               604-719-8129


                                      None

(Former name, former address and former fiscal year, if changed since
last report)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days
Yes  [ X ]   No  [    ]

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

State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date: 5,570,000 Shares of $0.001 par value
Common Stock outstanding as of November 14, 2006.








<PAGE>










                                  SHEPARD INC.
                         (AN EXPLORATION STAGE COMPANY)


                              FINANCIAL STATEMENTS


                               SEPTEMBER 30, 2005
                                  (UNAUDITED)
                            (STATED IN U.S. DOLLARS)



<PAGE>
                                  SHEPARD INC.
                         (AN EXPLORATION STAGE COMPANY)

                                 BALANCE SHEET
                                  (UNAUDITED)
                            (STATED IN U.S. DOLLARS)




<TABLE>
<CAPTION>
                                                                  SEPTEMBER 30   DECEMBER 31
<S>                                                             <C> <C>      <C> <C> <C>
                                                                    2006           2005

ASSETS

CURRENT
   Cash and cash equivalents                                    $     3,605  $        18,669

LIABILITIES

CURRENT
   Accounts payable and accrued liabilities                     $     5,955  $         7,205
   Loan payable (Note 5)                                              5,000                -
                                                                     10,955            7,205
STOCKHOLDERS' EQUITY

SHARE CAPITAL
   Authorized:
      75,000,000 common shares with a par value of $0.001

   Issued:
       5,570,000 common shares (2004 - 5,570,000 common shares)
                                                                      5,570            5,570

   Additional paid-in capital                                        29,430           29,430

DEFICIT ACCUMULATED DURING THE EXPLORATION STAGE                    (42,350)         (23,536)
                                                                    ( 7,350)          11,464

                                                                $     3,605  $        18,669
</TABLE>













                             See accompanying notes

<PAGE>
                                  SHEPARD INC.
                         (AN EXPLORATION STAGE COMPANY)

                            STATEMENT OF OPERATIONS
                                  (UNAUDITED)
                            (STATED IN U.S. DOLLARS)

<TABLE>
<CAPTION>

<S>                              <C>                <C> <C>              <C> <C>               <C> <C>                 <C> <C>
                                                                                                                      Cumulative
                                              For the Nine Months                   For the Three Months           from Inception,
                                              Ended September 30,                   Ended September 30,             March 9, 2004
                                               2006          2005                    2006            2005          to September 30,
                                                                                                                         2006

EXPENSES:
   Exploration expenses                  $	  -	 $	-	    $		-	$	-	$ 	7,053
   Office and sundry                          1,033           940                      23             858               2,813
  Professional fees                           5,699         4,203                     875              38              18,457
   Regulatory fees           			315             -                       -               -               1,760
  Transfer agent fees                        11,767           620                     200               -              12,267
                                             18,814         5,763                   1,098             896              42,350

LOSS FOR THE PERIOD                         (18,814)       (5,763)                 (1,098)           (896)            (42,350)

LOSS PER SHARE                          $    (0.003)     $ (0.001)          $      (0.000)     $   (0.000)

WEIGHTED AVERAGE OUTSTANDING
SHARES                                    5,570,000     5,570,000               5,570,000       5,570,000

</TABLE>























                             See accompanying notes

<PAGE>
                                  SHEPARD INC.
                         (AN EXPLORATION STAGE COMPANY)

                            STATEMENT OF CASH FLOWS
                                  (UNAUDITED)
                            (STATED IN U.S. DOLLARS)



<TABLE>
<CAPTION>
                                                                                                                  PERIOD FROM
<S>                                                                <C> <C>             <C> <C> <C>              <C> <C>
                                                                                                                   INCEPTION
                                                                                                                    MARCH 9
                                                                               NINE MONTHS ENDED                    2004 TO
                                                                                 SEPTEMBER 30                    SEPTEMBER 30
                                                                          2006                  2005                  2006

CASH FLOWS FROM OPERATING ACTIVITIES
   Loss for the period                                             $   (18,814)        $         (5,763)     $       (42,350)

   Changes in non-cash working capital items
      Accounts payable and accrued liabilities                          (1,250)                  (2,502)               5,955
                                                                       (20,064)                  (8,265)             (36,395)

CASH FLOWS FROM FINANCING ACTIVITY
   Issue of share capital                                                    -                        -               35,000
   Loan payable                                                          5,000                        -                5,000
                                                                         5,000                        -               40,000

INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS DURING THE PERIOD                                          (15,064)                  (8,265)               3,605

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                          18,669                   34,939                    -

CASH AND CASH EQUIVALENTS, END OF PERIOD                           $     3,605        $          26,674     $          3,605


SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
   Cash paid for:
      Interest                                                     $         -        $               -     $             -
      Income taxes                                                 $         -        $               -     $             -
</TABLE>












                             See accompanying notes

<PAGE>
                                 SHEPARD, INC.
                         (AN EXPLORATION STAGE COMPANY)

                         NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2006
                            (STATED IN U.S. DOLLARS)


 1. BASIS OF PRESENTATION

      Basis of Presentation

      The  accompanying unaudited financial statements have been prepared by the
      Company  pursuant  to  the  rules  and  regulations  of  the United States
      Securities  and Exchange Commission.  Certain information and  disclosures
      normally included  in  annual  financial statements prepared in accordance
      with accounting principles generally  accepted  in  the  United  States of
      America  have  been  condensed  or  omitted  pursuant  to  such  rules and
      regulations.    In   the   opinion  of  management,  all  adjustments  and
      disclosures  necessary  for  a   fair   presentation  of  these  financial
      statements  have  been  included.   Such  adjustments  consist  of  normal
      recurring  adjustments.   These financial statements  should  be  read  in
      conjunction with the audited  financial  statements of the Company for the
      fiscal period ended December 31, 2005.


2. NATURE OF BUSINESS

   a) Organization

      The Company was incorporated in the State of Nevada, U.S.A., on March 9,
      2004.

   b) Exploration Stage Activities

       The Company has been in the exploration stage since its formation and has
       not yet realized any revenues from its planned  operations.   The Company
       commenced  its  exploration  stage activities by acquiring an exploration
       prospect in the mining sector.


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   a) Use of Estimates and Assumptions

      The preparation of financial statements  in conformity with U.S. 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.




<PAGE>
                                 SHEPARD, INC.
                         (AN EXPLORATION STAGE COMPANY)

                         NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2006
                            (STATED IN U.S. DOLLARS)


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

   b) Exploration Activities

      The Company  expenses all costs related to the maintenance and exploration
      of mineral claims  in  which  it  has  secured exploration rights prior to
      establishment of proven and probable reserves.   To  date, the Company has
      not  established the commercial feasibility of its exploration  prospects,
      therefore, all costs are being expensed.

   c) Fair Value of Financial Instruments

      The carrying  value of cash and cash equivalents, and accounts payable and
      accrued liabilities  approximates  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
      Company's financial risk is the  risk  that  arises  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.


4. RECENT ACCOUNTING PRONOUNCEMENTS

   a) The  FASB  issued  FASB  Interpretation  No. ("FIN") 47 - "Accounting  for
      Conditional Asset Retirement Obligations" in March 2005.  FIN 47 clarifies
      that an entity must record a liability for  a conditional asset retirement
      obligation  if  the  fair  value  of  the  obligation  can  be  reasonably
      estimated.   This Interpretation also clarifies  the  circumstances  under
      which an entity  would  have sufficient information to reasonably estimate
      the fair value of an asset  retirement obligation.  This Interpretation is
      effective no later than the end  of fiscal years ending after December 15,
      2005.  The adoption of this guidance did not have a material impact on the
      Company's financial statements

   b) In March 2005, the FASB ratified Emerging Issues Task Force Issue No. 04-6
      - "Accounting for Stripping Costs Incurred during Production in the Mining
      Industry"  ("EITF 04-6"), which addresses  the  accounting  for  stripping
      costs incurred  during  the production phase of a mine and refers to these
      costs as variable production  costs that should be included as a component
      of inventory to be recognized in  costs  applicable  to  sales in the same
      period  as  the  revenue  from  the  sale  of  inventory.   As  a  result,
      capitalization  of  stripping  costs  is  appropriate  only  to the extent
      product inventory exists at the end of a reporting period and the carrying
      value is less than the net realizable value.  Adoption of EITF  04-6  will
      have  no  material  impact on the Company's financial position, results of
      operations or cash flows.




<PAGE>
                                 SHEPARD, INC.
                         (AN EXPLORATION STAGE COMPANY)

                         NOTES TO FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2006
                            (STATED IN U.S. DOLLARS)


4. RECENT ACCOUNTING PRONOUNCEMENTS (Continued)

   c) In May 2005, the FASB  issued  SFAS  No.  154  ("SFAS  154") - "Accounting
      Changes and Error Corrections".  SFAS No. 154 established new standards on
      accounting  for changes in accounting principles.  SFAS No.  154  requires
      all such changes  to  be accounted for by retrospective application to the
      financial statements of prior periods unless prescribed otherwise or it is
      impracticable to do so.   SFAS No. 154 is effective for accounting changes
      and error corrections made  in  fiscal  years beginning after December 15,
      2005.  Adoption of SFAS No. 154 did not have  a  material  impact  on  the
      Company's financial position, results of operations or cash flows.


5. RELATED PARTY TRANSACTION

   On April 4, 2006, the Company entered into a non interest bearing loan with a
   shareholder for $5,000.  The loan is unsecured and repayable on demand.


6. MINERAL PROSPECT

   Pursuant  to an agreement dated June 9, 2004, the Company has acquired a 100%
   interest, subject to a 2.5% production royalty, in a mineral prospect located
   in the Northwest  Territories,  Canada,  for cash consideration of $2,053 and
   conducted a work program of $5,000.  Since  the  Company  has not established
   the  commercial  feasibility  of  the  mineral  claims,  the acquisition  and
   exploration costs have been expensed.


7. COMMON STOCK

   During the period from March 9, 2004 (inception) to December  31,  2004,  the
   Company  issued a total of 5,570,000 common shares for total cash proceeds of
   $35,000.

   At September 30, 2006, there were no outstanding stock options or warrants.



<PAGE>
FORWARD-LOOKING STATEMENTS

This Form 10-QSB includes "forward-looking statements" within the meaning of the
"safe-harbor" provisions of the Private Securities Litigation Reform Act of
1995.  Such statements are based on management's current expectations and are
subject to a number of factors and uncertainties that could cause actual results
to differ materially from those described in the forward-looking statements.

All statements other than historical facts included in this Form, including
without limitation, statements under "Plan of Operation", regarding our
financial position, business strategy, and plans and objectives of management
for the future operations, are forward-looking statements.

Although we believe that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to have been correct.  Important factors that could cause actual results
to differ materially from our expectations include, but are not limited to,
market conditions, competition and the ability to successfully complete
financing.

ITEM 2. PLAN OF OPERATION

During the current fiscal year, we retained an independent geologist to conduct
exploration on the CB-1 claim and to provide us with recommendations for
additional exploration on the property.  All rock samples taken from the
property during exploration did not contain any significant quantities of gold.
In addition, we were not able to locate any other zones of altered rock on the
CB-1 claim which could possibly host economic mineralization.

Until we raise additional financing, we do not intend to conduct any further
exploration on the CB-1 property.  We may consider bringing in a joint venture
partner to provide funding for additional exploration on the property.  However,
we cannot provide investors with any assurance that we will be able to locate a
joint venture partner who will assist us in funding the exploration of the
property.  Management intends to review other potential resource and non-
resource assets for acquisition.

We anticipate spending the following over the next 12 months on administrative
fees:

  *         $2,000 on legal fees
  *         $8,000 on accounting and audit fees
  *         $1,500 on EDGAR filing fees
  *         $5,000 on general administration costs

Total expenditures over the next 12 months are therefore expected to be
approximately $16,500.

RESULTS OF OPERATIONS FOR THE PERIOD ENDED SEPTEMBER 30, 2006

We did not earn any revenues during the nine-month period ended September 30,
2006.  We do not anticipate earning revenues unless we enter into commercial
production on the CB-1 claim, which is doubtful.

We incurred operating expenses in the amount of $18,814 for the nine-month
period ended September 30, 2006. These operating expenses were comprised of
transfer agent fees of $11,767, professional fees of $5,699, office and sundry
expenses of $1,033 and regulatory fees of $315.


<PAGE>
Our net loss for the nine-month period ended September 30, 2006 increased
substantially from the comparative period in fiscal 2005 (2006: $18,814; 2005:
$5,763) due to an increase in fees that we incurred in the retention of our
transfer agent(from $620 in the fiscal 2005 period to $11,767 in the fiscal 2006
period).

At September 30, 2006, we had total assets of $3,605, consisting entirely of
cash.  At the same date, our liabilities consisted of accounts payable and
accrued liabilities of $5,955 and a loan payable from one of our director for
$5,000.

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

ITEM 3 CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS

We evaluated the effectiveness of our disclosure controls and procedures as of
September 30, 2006.  This evaluation was conducted by Michael Eyre, our chief
executive officer and Glen Macdonald, our principal accounting officer.

Disclosure controls are controls and other procedures that are designed to
ensure that information that we are required to disclose in the reports we file
pursuant to the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported.

LIMITATIONS ON THE EFFECTIVE OF CONTROLS

Our management does not expect that our disclosure controls or our internal
controls over financial reporting will prevent all error and fraud.  A control
system, no matter how well conceived and operated, can provide only reasonable,
but no absolute, assurance that the objectives of a control system are met.
Further, any control system reflects limitations on resources, and the benefits
of a control system must be considered relative to its costs.  These limitations
also include the realities that judgments in decision-making can be faulty and
that breakdowns can occur because of simple error or mistake.  Additionally,
controls can be circumvented by the individual acts of some persons, by
collusion of two or more people or by management override of a control.  A
design of a control system is also based upon certain assumptions about
potential future conditions; over time, controls may become inadequate because
of changes in conditions, or the degree of compliance with the policies or
procedures may deteriorate.  Because of the inherent limitations in a cost-
effective control system, misstatements due to error or fraud may occur and may
not be detected.

CONCLUSIONS

Based upon their evaluation of our controls, Michael Eyre, our chief executive
officer and Glen Macdonald, our principal accounting officer, have concluded
that, subject to the limitations noted above, the disclosure controls are
effective providing reasonable assurance that material information relating to
us is made known to management on a timely basis during the period when our
reports are being prepared.  There were no changes in our internal controls that
occurred during the quarter covered by this report that have materially
affected, or are reasonably likely to materially affect our internal controls.


<PAGE>
PART II- OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is not a party to any pending legal proceeding.  Management is not
aware of any threatened litigation, claims or assessments.

ITEM 2. CHANGES IN SECURITIES

None.

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 REPORT ON FORM 8-K

 31.1     Certification pursuant to 18 U.S.C. Section 1350, as adopted
          pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 31.2     Certification pursuant to 18 U.S.C. Section 1350, as adopted
          pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 32.1     Certification pursuant to 18 U.S.C. Section 1350, as adopted
          pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 32.2     Certification pursuant to 18 U.S.C. Section 1350, as adopted
          pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

We did not file any current reports on Form 8-K during the period.

SIGNATURES

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

November 14, 2006


Shepard Inc.


/s/ Michael Eyre
------------------------------
Michael Eyre, President