================================================================================


                                  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 June 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   333-124829
                                           ----------



                            DRIFTWOOD VENTURES, 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)
------------------------------

707 7th Avenue, Suite 5
New Westminster, British Columbia, Canada                 V3M 2J2
-----------------------------------------             -------------------
(Address of principal executive offices)             (Postal or Zip Code)


Issuer's telephone number, including area code: 250-729-5731


                                      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 [ ] No [ X ]

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


State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest  practicable date:  5,807,000 Shares of $0.001 par value
Common Stock outstanding as of September 11, 2006.


<page>


                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)


                          INTERIM FINANCIAL STATEMENTS


                                  JUNE 30, 2006













BALANCE SHEETS

INTERIM STATEMENTS OF OPERATIONS

INTERIM STATEMENTS OF CASH FLOWS

STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)

NOTES TO THE INTERIM FINANCIAL STATEMENTS


<page>


                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                                 BALANCE SHEETS

<table>
<caption>
------------------------------------------------------------------------------------------------------------------------------
                                                                                         June 30,           December 31,
                                                                                           2006                     2005
                                                                                           ----                     ----
                                                                                        (Unaudited)             (Audited)

                                                                               <c>                       <c>
ASSETS

Current asset
     Cash                                                                       $         13,909         $         2,577
                                                                                ------------------------ ----------------------

                                                                                $         13,909         $         2,577
===============================================================================================================================


LIABILITIES

Current liabilities
     Accounts payable and accrued liabilities                                   $          4,804         $         5,387
     Advances from related party (Note 3)                                                 20,000                     100
                                                                                ------------------------ ----------------------
                                                                                          24,804                   5,487
                                                                                ------------------------ ----------------------

STOCKHOLDERS' DEFICIT

Common Stock (Note 4)
     Authorized:
         75,000,000 common shares with a par value of $0.001

     Issued and Outstanding:
          5,807,000 common shares
          (December 31, 2005: 5,807,000)                                                   5,807                   5,807
     Additional paid-in capital                                                           22,293                  22,293
     Donated capital (Note 3)                                                             14,000                   9,800
     Deficit accumulated during the exploration stage                                   (52,995)                (40,810)
                                                                                ------------------------ ----------------------
                                                                                         (10,895)                 (2,910)
                                                                                ------------------------ ----------------------

                                                                                $         13,909         $         2,577
===============================================================================================================================
</table>


Nature And Continuance Of Operations (Note 1)







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

<page>


                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                        INTERIM STATEMENTS OF OPERATIONS
                                   (Unaudited)

<table>
<caption>
---------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  Period from
                                              Three months     Three month       Six months      Six months    February 13, 2003
                                                  ended            ended            ended           ended         (Inception) to
                                                June 30,          June 30,         June 30,        June 30,          June 30,
                                                  2006              2005             2006            2005              2006
                                                  ----              ----             ----            ----              ----


Revenue                                     $           -    $           -   $             -  $            -    $               -
---------------------------------------------------------------------------------------------------------------------------------

                                           <c>               <c>            <c>               <c>               <c>
Expenses
     Donated services and rent (Note 3)             2,100            2,100             4,200           4,200               14,000
     Mineral property costs (Note 5)                    -                -                 -               -               10,400
     Organizational costs                               -                -                 -               -                  420
     Office and sundry                                254              731             1,399             862                4,163
     Professional fees                              4,586            5,749             6,586           8,008               24,012
---------------------------------------------------------------------------------------------------------------------------------

Net Loss                                    $      (6,940)   $      (8,580)  $       (12,185) $      (13,070)    $        (52,995)
=================================================================================================================================


Basic and Diluted Loss Per Share            $       (0.00)   $       (0.00)  $         (0.00) $        (0.00)
=================================================================================================================================

Weighted Average Number Of Shares Outstanding
                                                5,807,000        5,807,000         5,807,000       5,807,000
=================================================================================================================================
</table>




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

<page>


                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                        INTERIM STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<table>
<caption>
--------------------------------------------------------------------------------------------------------------------------------
                                                                                                               Period from
                                                                Six months              Six months           February 13, 2003
                                                                  ended                   ended              (Inception) to
                                                                 June 30,                June 30,                June 30,
                                                                   2006                    2005                    2006
                                                                   ----                    ----                    ----

                                                          <c>                     <c>                      <c>

Cash Flows From Operating Activities
     Net loss                                             $        (12,185)       $        (13,070)       $        (52,995)
     Adjustment to reconcile net loss to net cash used
     in operating activities:
       Donated management services and rent                          4,200                   4,200                  14,000
     Change in non-cash working capital
      balance related to operations:
        Accounts payable and accrued liabilities                      (583)                  2,507                   4,804
                                                              ------------------------------------------------------------------
Net cash flows used in operations                                   (8,568)                 (6,363)                (34,191)
                                                              ------------------------------------------------------------------

Cash Flows From Financing Activities
     Capital stock issued                                                -                   1,000                  28,100
     Advances from related party                                    19,900                       -                  20,000
                                                              ------------------------------------------------------------------
Net cash flows from financing activities                            19,900                   1,000                  48,100
                                                              ------------------------------------------------------------------

Increase (Decrease)
In Cash                                                             11,332                  (5,363)                 13,909

Cash, Beginning                                                      2,577                  20,138                       -
                                                              ------------------------------------------------------------------

Cash, Ending                                              $         13,909        $         14,775        $         13,909
================================================================================================================================


Supplementary Cash Flow Information
     Cash paid for:
         Interest                                         $              -        $              -        $              -
         Income taxes                                     $              -        $              -        $              -
================================================================================================================================
</table>



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


<page>


                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                   STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
           PERIOD FROM FEBRUARY 13, 2003 (INCEPTION) TO JUNE 30, 2006

<table>
<caption>
                                                                                                   Deficit
                                                                       Common                    Accumulated
                                                         Additional    Shares                     During the
                                         Common Shares      Paid-in Subscription  Donated        Exploration
                                      Number    Par Value   Capital  Receivable   Capital           Stage            Total
Balance, February 13, 2003
(Date of Inception)                        -  $        - $        - $       -  $         -   $            -    $          -
Net loss                                   -           -          -         -            -             (420)           (420)
-------------------------------------------------------------------------------------------------------------------------------

                                  <c>         <c>       <c>        <c>        <c>            <c>              <c>
Balance, December 31, 2003                  -          -          -         -            -             (420)           (420)

Shares issued for cash
 - November, 2004 at $0.001         4,900,000      4,900          -         -            -                -           4,900
 - December, 2004 at $0.01            750,000        750      6,750         -            -                -           7,500
 - December, 2004 at $0.10            157,000        157     15,543         -            -                -          15,700
Share subscription receivable               -          -          -    (1,000)           -                -          (1,000)
Donated management services and rent        -          -          -         -        1,400                -           1,400
Net loss                                    -          -          -         -            -          (12,462)        (12,462)
--------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 2004          5,807,000      5,807     22,293    (1,000)       1,400          (12,882)         15,618

Share subscription receivable              -          -           -     1,000            -                -           1,000
Donated management services and rent       -          -           -         -        8,400                -           8,400
Net loss                                   -          -           -         -            -          (27,928)        (27,928)
--------------------------------------------------------------------------------------------------------------------------------
Balance, December 31, 2005 (Audited)5,807,000      5,807     22,293         -        9,800          (40,810)         (2,910)

Donated management services and rent       -          -           -         -        4,200                -           4,200
Net loss                                   -          -           -         -            -          (12,185)        (12,185)
--------------------------------------------------------------------------------------------------------------------------------
Balance, June 30, 2006 (Unaudited)  5,807,000 $    5,807 $   22,293 $       -  $    14,000   $      (52,995)   $    (10,895)
================================================================================================================================
</table>

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

<page>


                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)

1.   NATURE AND CONTINUANCE OF OPERATIONS

     The Company was  incorporated  in the State of Nevada on February 13, 2003.
     The Company is an  exploration  stage  company as defined by  Statement  of
     Financial  Accounting  Standard  ("SFAS")  No.  7.  During  the year  ended
     December 31, 2004, the Company  acquired a mineral  property located in the
     New Westminster Mining Division,  British Columbia,  Canada and has not yet
     determined  whether this property  contains  reserves that are economically
     recoverable.  The recoverability of property expenditures will be dependent
     upon the discovery of economically  recoverable  reserves,  confirmation of
     the  Company's  interest  in the  underlying  property,  the ability of the
     Company  to  obtain   necessary   financing  to  satisfy  the   expenditure
     requirements  under  the  property  agreement  and upon  future  profitable
     production or proceeds for the sale thereof.

     Going Concern

     These financial statements have been prepared on a going concern basis. The
     Company has incurred  losses since  inception  resulting in an  accumulated
     deficit of $52,995 at June 30, 2006 and further  losses are  anticipated in
     the  development  of its  business  raising  substantial  doubt  about  the
     Company's  ability to continue as a going concern.  Its ability to continue
     as a going concern is dependent upon the ability of the Company to generate
     profitable  operations  in  the  future  and/or  to  obtain  the  necessary
     financing to meet its obligations  and repay its  liabilities  arising from
     normal business operations when they come due. Management has plans to seek
     additional  financing through private placements of its common stock and/or
     loans  from  directors.  These  financial  statements  do not  include  any
     adjustments  relating to the  recoverability and classification of recorded
     assets,  or the amounts of and  classification of liabilities that might be
     necessary in the event the Company cannot continue.

     Unaudited Interim Financial Statements

     The accompanying  unaudited interim financial statements have been prepared
     in accordance with United States generally accepted  accounting  principles
     for interim financial  information and with the instructions to Form 10-QSB
     of  Regulation  S-B.  They may not include all  information  and  footnotes
     required by United States  generally  accepted  accounting  principles  for
     complete financial statements.  However,  except as disclosed herein, there
     have been no material changes in the information  disclosed in the notes to
     the financial statements for the period ended December 31, 2005 included in
     the Company's Form SB-2 filed with the Securities and Exchange  Commission.
     The interim  unaudited  financial  statements should be read in conjunction
     with those financial  statements  included in the Form SB-2. In the opinion
     of   Management,   all   adjustments   considered   necessary  for  a  fair
     presentation,  consisting solely of normal recurring adjustments, have been
     made.  Operating  results  for the six months  ended June 30,  2006 are not
     necessarily  indicative  of the results  that may be expected  for the year
     ending December 31, 2006.

<page>

                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     a)  Basis of Presentation

         The  financial   statements  of  the  Company  have  been  prepared  in
         accordance with generally accepted accounting  principles in the United
         States of America and are  expressed  in U.S.  dollars.  The  Company's
         fiscal year end is December 31.

     b)  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.

     c)  Mineral Property Costs

         The  Company  has  considered  the  guidance  under  EITF  04-2 and has
         determined that capitalization of mineral property acquisition costs is
         inappropriate  at the current stage of the Company's  mineral  property
         exploration  activities.  To  date,  the  Company's  mineral  interests
         consist mainly of exploration stage properties.  Furthermore,  there is
         uncertainty as to the Company's  ability to fund the  exploration  work
         necessary to determine if the properties have  recoverable  reserves or
         any future economic  benefits.  As a result,  acquisition costs to date
         are considered to be impaired and accordingly, have been written off as
         mineral property expenditures.

     d)  Use of Estimates and Assumptions

         The  preparation  of financial  statements  in  conformity  with United
         States 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.

     e)  Foreign Currency Translation

         The financial  statements  are presented in United States  dollars.  In
         accordance  with  Statement of Financial  Accounting  Standards No. 52,
         "Foreign Currency Translation", foreign denominated monetary assets and
         liabilities are translated into their United States dollar  equivalents
         using foreign exchange rates which prevailed at the balance sheet date.
         Revenue and expenses are translated at average rates of exchange during
         the year. Gains or losses resulting from foreign currency  transactions
         are included in results of operations.


<page>

                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     f)  Financial Instruments

         The carrying value of cash,  accounts payable and accrued  liabilities,
         and advances from related party  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 market  risks from  changes in foreign  currency  rates.
         Currently,  the Company does not use  derivative  instruments to reduce
         its exposure to foreign currency risk.

     g)  Environmental Costs

         Environmental  expenditures  that  relate  to  current  operations  are
         charged to operations or capitalized as appropriate.  Expenditures that
         relate to an existing condition caused by past operations, and which do
         not contribute to current or future revenue generation,  are charged to
         operations.  Liabilities  are recorded when  environmental  assessments
         and/or  remedial  efforts are probable,  and the cost can be reasonably
         estimated.  Generally,  the timing of these accruals coincides with the
         earlier  of  completion  of  a  feasibility   study  or  the  Company's
         commitments to a plan of action based on the then known facts.

     h)  Income Taxes

         Potential  benefits  of income  tax losses  are not  recognized  in the
         accounts  until  realization  is more likely than not.  The Company has
         adopted SFAS No. 109 as of its inception.  Pursuant to SFAS No. 109 the
         Company is  required to compute tax asset  benefits  for net  operating
         losses carried forward.  Potential benefit of net operating losses have
         not been recognized in these financial  statements  because the Company
         cannot be assured it is more  likely  than not it will  utilize the net
         operating losses carried forward in future years.

     i)  Basic and Diluted Net Loss Per Share

         The Company  computes  net loss per share in  accordance  with SFAS No.
         128, "Earnings per Share".  SFAS No. 128 requires  presentation of both
         basic and diluted earnings per share (EPS) on the face of the statement
         of operations.  Basic EPS is computed by dividing net loss available to
         common  shareholders  (numerator)  by the  weighted  average  number of
         shares outstanding  (denominator) during the period.  Diluted EPS gives
         effect to all potentially dilutive common shares outstanding during the
         period using the treasury stock method and convertible  preferred stock
         using the 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 potentially dilutive shares if their effect is

<page>

                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     i)  Basic and Diluted Net Loss Per Share (Continued)

         antidilutive.  The  Company  has  not  issued  any  potential  dilutive
         instruments  since  inception  and  accordingly  diluted loss per share
         equals basic loss per share.

     j)  Stock Based Compensation

         In December 2004,  the Financial  Accounting  Standards  Board ("FASB")
         issued SFAS No. 123R,  "Share-Based  Payment",  which replaced SFAS No.
         123,  "Accounting  for  Stock-Based  Compensation"  and  superseded APB
         Opinion No. 25, "Accounting for Stock Issued to Employees".  In January
         2005,  the  Securities  and Exchange  Commission  ("SEC")  issued Staff
         Accounting  Bulletin  ("SAB") No.  107,  "Share-Based  Payment",  which
         provides supplemental  implementation  guidance for SFAS No. 123R. SFAS
         No. 123R  requires all  share-based  payments to  employees,  including
         grants of employee  stock  options,  to be  recognized in the financial
         statements  based on the grant date fair  value of the award.  SFAS No.
         123R was to be  effective  for  interim  or  annual  reporting  periods
         beginning on or after June 15, 2005, but in April 2005 the SEC issued a
         rule that will permit most  registrants  to implement  SFAS No. 123R at
         the beginning of their next fiscal year,  instead of the next reporting
         period  as  required  by  SFAS  No.  123R.  The  pro-forma  disclosures
         previously   permitted  under  SFAS  No.  123  no  longer  will  be  an
         alternative to financial  statement  recognition.  Under SFAS No. 123R,
         the Company must determine the appropriate  fair value model to be used
         for  valuing   share-based   payments,   the  amortization  method  for
         compensation  cost  and  the  transition  method  to be used at date of
         adoption.

         The transition  methods include  prospective  and retroactive  adoption
         options.  Under the retroactive options,  prior periods may be restated
         either as of the  beginning  of the year of adoption or for all periods
         presented. The prospective method requires that compensation expense be
         recorded for all unvested  stock  options and  restricted  stock at the
         beginning of the first quarter of adoption of SFAS No. 123R,  while the
         retroactive methods would record compensation  expense for all unvested
         stock  options and  restricted  stock  beginning  with the first period
         restated. The Company adopted the modified prospective approach of SFAS
         No. 123R for the fiscal year  beginning on January 1, 2006. The Company
         did not record any  compensation  expense in the first  quarter of 2006
         because  there were no unvested  stock  options  existing  prior to the
         adoption.  Stock-based compensation expense for awards granted prior to
         January 1, 2006 was based on the grant date  fair-value  as  determined
         under the pro-forma provisions of SFAS No. 123.

<page>


                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

     k)  Comprehensive Income (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, 2006,  the Company has no
         items  that  represent  comprehensive  loss  and,  therefore,  has  not
         included a schedule of comprehensive loss in the financial statements.

     l)  Recent Accounting Pronouncements

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

         In March 2006, the FASB issued SFAS No. 156,  "Accounting for Servicing
         of Financial Assets, an amendment of FASB Statement No. 140, Accounting
         for Transfers and Servicing of Financial Assets and  Extinguishments of
         Liabilities".   This  statement  requires  all  separately   recognized
         servicing  assets and servicing  liabilities  be initially  measured at
         fair value,  if  practicable,  and permits for  subsequent  measurement
         using  either  fair  value  measurement  with  changes  in  fair  value
         reflected in earnings or the amortization  and impairment  requirements
         of  Statement  No.  140.  The  subsequent   measurement  of  separately
         recognized  servicing  assets and servicing  liabilities  at fair value
         eliminates the necessity for entities that manage the risks inherent in
         servicing assets and servicing  liabilities with derivatives to qualify
         for hedge accounting  treatment and eliminates the  characterization of
         declines in fair value as impairments or direct  write-downs.  SFAS No.
         156 is  effective  for an entity's  first fiscal year  beginning  after
         September  15, 2006.  Management  is currently  evaluating  the impact,
         which  the  adoption  of  this  standard  will  have  on the  Company's
         financial statements.

<page>

                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)

         3.   ADVANCES FROM RELATED PARTY

         A director  of the Company  provided a loan of $20,000 to the  Company.
         The amount is  unsecured,  non-interest  bearing  and has no  specified
         terms of repayment.

         The  President of the Company  donates  management  services and office
         premises to the Company.  The services are valued at $500 per month and
         the office premises are valued at $200 per month.  During the six-month
         ended  June 30,  2006  donated  services  of $3,000  (2005-$3,000)  and
         donated   rent  expense  of  $1,200   (2005-$1,200)   were  charged  to
         operations.

         4.   COMMON STOCK

         The total number of  authorized  common stock that may be issued by the
         Company  is  75,000,000  shares of stock with a par value of $0.001 per
         share.

         During the year ended  December 31, 2004 the Company  issued  5,807,000
         shares for total cash proceeds of $28,100.

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

         5.  MINERAL PROPERTY

         Pursuant to a mineral  property  purchase  agreement dated December 15,
         2004, the Company acquired a 100% undivided  right,  title and interest
         in the  Hope  mineral  claim  located  in the  New  Westminster  Mining
         Division,  British  Columbia,  Canada for $7,000 cash.  During the year
         ended December 31, 2005 the Company  incurred  exploration  expenses of
         $3,400 on the Hope mineral claim.

<page>


                            DRIFTWOOD VENTURES, INC.
                         (An Exploration Stage Company)

                    NOTES TO THE INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2006
                                   (Unaudited)


6.   INCOME TAXES

     The components of the net deferred tax asset at June 30, 2006, and 2005 the
     statutory tax rate,  the  effective tax rate and the elected  amount of the
     valuation allowance are indicated below:

                                             2006               2005
                                             ----               ----

    Net operating loss              $        12,185     $     13,070
                                   ================    ==============
    Statutory tax rate                         15%             15%
                                   ================    ==============
    Effective tax rate                          -              -
                                   ================    ==============



    Deferred tax asset             $         7,974     $      3,893
    Valuation allowance                     (7,974)          (3,893)
                                   ----------------    --------------

    Net deferred tax asset         $             -     $        -
                                   ================    ==============









<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

Our plan of operation for the twelve months following the date of this report is
to complete the recommended  phase two  exploration  program on the Silver Creek
claim. We anticipate that the cost of this program will be approximately $5,000.

Following  completion of the phase two exploration program, we intend to conduct
a phase  three  program.  In  determining  whether  to  conduct  a  phase  three
exploration,  we will rely upon the advice of the geologist that  undertakes the
exploration program. Following the phase two program, the geologist will provide
us with a summary of the results of the program,  as well as recommendations for
additional  exploration,  if any.  These  recommendations  will be  based on the
quantity and grade of any minerals discovered and the potential to discover more
mineralization  on the  property.  Our board of  directors  will then review the
recommendations  of the  geologist  and  determine  whether to proceed  with his
recommendations.  We are unable to determine  exactly what this exploration will
consist of until the second phase of exploration  is complete,  but we expect it
will  include a drilling  component  and will cost  between  $50,000 to $100,000
dollars. Drilling involves extracting a long cylinder of rock from the ground to
determine  amounts of metals at different  depths.  Pieces of the rock obtained,
known as drill core, are analysed for mineral content.

Even after completing the phase two exploration  program,  we will have to spend
funds on  further  exploration  before  we will  know if we have a  commercially
viable mineral deposit. We are unable to determine exactly what this exploration
will consist of until the second phase of exploration is complete, but we expect
it will include several  drilling  programs,  as well as engineering  studies to
determine the  feasibility  of operating a mine on the property.  These drilling
programs  and studies  will  encompass  at least  several  phases of  additional
exploration and may cost several million dollars before we are able to determine
if mining operations on the property are warranted.

<page>

If  warranted,  the phase three program will be followed by a phase four program
consisting of more drilling to delineate the extent of mineralization discovered
underground  based on results from  drilling in phase  three.  This program will
likely cost approximately $200,000 to $300,000.

Our management will be responsible for retaining  qualified personnel to conduct
exploration  on the  Silver  Creek  claim  and  arranging  for the  lease of any
required equipment for each phase of exploration.  They will also be responsible
for attempting to secure additional financing for us.

In the next 12 months,  we also  anticipate  spending an  additional  $15,000 on
professional fees and administrative  expenses,  including and anticipated costs
of complying with reporting obligations.

Total expenditures over the next 12 months are therefore expected to be $20,000.
This amount will cover the costs of the phase two exploration program.  However,
we will require additional funds to cover all of the anticipated  administrative
expenses.

We  will  require  additional  funding  in  order  to  cover  a  portion  of our
administrative costs and to proceed with additional recommended exploration work
on the claim beyond the phase two program. We anticipate that additional funding
will be  required  in the form of equity  financing  from the sale of our common
stock or through  director loans.  On January 15, 2006 our President,  Mr. Steve
Chan,  loaned us $20,000 to finance  anticipated  expenses  for the next  twelve
months.  The loan from Mr.  Steve Chan is interest  free,  unsecured  and has no
fixed terms of repayment.  Mr. Chan is prepared to loan us  additional  funds as
needed, although he does not have any obligation in this regard.

We cannot  provide  investors  with any assurance  that we will be able to raise
sufficient  funding  from  the  sale of our  common  stock  to  fund  subsequent
exploration.  We believe  that debt  financing  will not be an  alternative  for
funding the complete  exploration  program.  We do not have any  arrangements in
place for any future equity financing.

If we cannot arrange  financing on a timely basis, we may have to delay proposed
exploration programs. Alternatively, we may consider developing the Silver Creek
claim on a joint venture  basis.  This means that we would transfer a portion of
our 100% interest in the claim to a third party in exchange for them  conducting
a certain  amount  of  exploration  on the  claim.  However,  we do not have any
arrangement in this regard.

It is our  intention  to sell  shares of our common  stock to finance  the phase
three exploration program, as well as all additional exploration programs on the
property.  After our shares of common  stock are  quoted for  trading on the OTC
Bulletin  Board,  we intend to sell  additional  shares of our  common  stock in
private  transactions and through investments  arranged through  broker-dealers.
However,  we do not have any  arrangements  for  additional  sales of our common
stock and there is no guarantee  that we will be able to secure such  financing.
As well, we have not contacted any broker-dealers regarding potential financing.

The  company  would  seek  to  acquire  other  mineral   claims  should  further
exploration  of its  Silver  Creek  claims be  discontinued  due to  unfavorable
exploration results.

Our daily  operations  that  would be  carried  out by  management  will be: (1)
dealing with lawyers,  accountants and  geologists,  (2) tending to our finances
and  administration,  and (3)  management  of our  mineral  property  which will
involve  licensing and  permitting  and work program  budgeting,  scheduling and
management.

<page>

Results of Operations for the Six Month Period Ended June 30, 2006

We did not earn any revenues during the six-month period ended June 30, 2006. We
do not anticipate earning revenues unless we enter into commercial production on
the Silver Creek claim, which is doubtful.

We incurred operating expenses in the amount of $12,185 for the six-month period
ended June 30, 2006.  These  operating  expenses were comprised of  professional
fees of $6,586,  donated  services  and rent  recorded  at $4,200 and office and
sundry expenses of $1,399.

Our  net  loss  for  the six-month period ended June 30, 2006 decreased slightly
from the comparative period in fiscal 2005 (2006: $12,185; 2005: $13,070) due to
an decrease in professional fees.

At June 30, 2006, we had total assets of $13,909 consisting entirely of cash. At
the same date,  our  liabilities  consisted  of  accounts  payable  and  accrued
liabilities of $4,804 and a loan payable from one of our director for $20,000.

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
June 30, 2006. This evaluation was conducted by Steven Chan, our chief executive
officer and Keith Smith, 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.

<page>

Conclusions

Based upon their  evaluation of our controls,  Steven Chan, our chief  executive
officer and Keith Smith, 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.

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.

<page>

SIGNATURES

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

September 11, 2006


Driftwood Ventures, Inc.


/s/ Steven Chan
------------------------------
Steven Chan, President