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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, 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, 2007

[ ] 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)  |                                  

|1463 Park Drive                          |                           
|---------------------------------------- | --------------------------
|Surrey, British Columbia, Canada         | V3R 5P2                   
|(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 August 13, 2007.

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|DRIFTWOOD VENTURES, INC.      
|------------------------------
|(An Exploration Stage Company)
|                              
|FINANCIAL STATEMENTS          
|                              
|JUNE 30, 2007                 
|                              
|(Unaudited)                   

|BALANCE SHEETS                   
|---------------------------------
|                                 
|STATEMENTS OF OPERATIONS         
|                                 
|STATEMENTS OF CASH FLOWS         
|                                 
|NOTES TO THE FINANCIAL STATEMENTS

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|DRIFTWOOD VENTURES, INC.      
|------------------------------
|(An Exploration Stage Company)
|                              
|BALANCE SHEETS                

|                                                       |   | June 30,    |   |   | December 31, |  
|------------------------------------------------------ | - | ----------- | - | - | ------------ | -
|                                                       |   | 2007        |   |   | 2006         |  
|                                                       |   | (Unaudited) |   |   | (Audited)    |  
|ASSETS                                                 |   |             |   |   |              |  
|                                                       |   |             |   |   |              |  
|Current assets                                         |   |             |   |   |              |  
|Cash                                                   | $ | -           |   | $ | 1,764        |  
|Prepaid expenses                                       |   | 10,000      |   |   | 10,000       |  
|                                                       | $ | 10,000      |   | $ | 11,764       |  
|                                                       |   |             |   |   |              |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                  |   |             |   |   |              |  
|                                                       |   |             |   |   |              |  
|Current liabilities                                    |   |             |   |   |              |  
|Bank
      indebtedness                                | $ | 7           |   |   | -            |  
|Accounts payable and accrued
      liabilities         |   | 16,411      |   | $ | 11,320       |  
|Due from related
      party (Note 2)                  |   | 30,567      |   |   | 30,166       |  
|                                                       |   | 46,985      |   |   | 41,486       |  
|                                                       |   |             |   |   |              |  
|Contingency (Note 1)                                   |   |             |   |   |              |  
|                                                       |   |             |   |   |              |  
|Stockholders Deficit                                  |   |             |   |   |              |  
|Common Stock                                           |   |             |   |   |              |  
|Authorized:                                            |   |             |   |   |              |  
|75,000,000 common shares, par value of $0.001          |   |             |   |   |              |  
|Issued and Outstanding:                                |   |             |   |   |              |  
|5,807,000 common shares                                |   | 5,807       |   |   | 5,807        |  
|Additional paid-in capital                             |   | 22,293      |   |   | 22,293       |  
|Donated capital
      (Note 2)                         |   | 22,400      |   |   | 18,200       |  
|Deficit accumulated during the
      exploration stage |   | (87,485     | ) |   | (76,022      | )
|                                                       |   | (36,985     | ) |   | (29,722      | )
|                                                       |   |             |   |   |              |  
|                                                       | $ | 10,000      |   | $ | 11,764       |  

The accompanying notes are an integral part of these financial
statements

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|DRIFTWOOD VENTURES, INC.      
|------------------------------
|(An Exploration Stage Company)
|STATEMENTS OF OPERATIONS      
|(Unaudited)                   

|                                     |   |              |   |   |              |   |   |            |   |   |            |   |   | Period from       |  
|------------------------------------ | - | ------------ | - | - | ------------ | - | - | ---------- | - | - | ---------- | - | - | ----------------- | -
|                                     |   | Three months |   |   | Three months |   |   | Six months |   |   | Six months |   |   | February 13, 2003 |  
|                                     |   | ended        |   |   | ended        |   |   | ended      |   |   | ended      |   |   | (Inception) to    |  
|                                     |   | June 30,     |   |   | June 30,     |   |   | June 30,   |   |   | June 30,   |   |   | June 30,          |  
|                                     |   | 2007         |   |   | 2006         |   |   | 2007       |   |   | 2006       |   |   | 2007              |  
|                                     |   |              |   |   |              |   |   |            |   |   |            |   |   |                   |  
|Expenses                             |   |              |   |   |              |   |   |            |   |   |            |   |   |                   |  
|Donated services and rent (Note 2)   | $ | 2,100        |   | $ | 2,100        |   | $ | 4,200      |   | $ | 4,200      |   | $ | 22,400            |  
|Mineral property costs               |   | -            |   |   | -            |   |   | -          |   |   | -          |   |   | 17,900            |  
|Organizational costs                 |   | 280          |   |   | -            |   |   | 280        |   |   | -          |   |   | 700               |  
|Office and sundry                    |   | 22           |   |   | 254          |   |   | 1,023      |   |   | 1,399      |   |   | 7,473             |  
|Professional
      fees              |   | 2,860        |   |   | 4,586        |   |   | 5,960      |   |   | 6,586      |   |   | 39,012            |  
|                                     |   |              |   |   |              |   |   |            |   |   |            |   |   |                   |  
|Net Loss                             | $ | (5,262       | ) | $ | (6,940       | ) | $ | (11,463    | ) | $ | (12,185    | ) | $ | (87,485           | )
|                                     |   |              |   |   |              |   |   |            |   |   |            |   |   |                   |  
|                                     |   |              |   |   |              |   |   |            |   |   |            |   |   |                   |  
|Basic and Diluted Net Loss Per Share |   | (0.00        | ) |   | (0.00        | ) |   | (0.00      | ) |   | (0.00      | ) |   |                   |  
|                                     |   |              |   |   |              |   |   |            |   |   |            |   |   |                   |  
|                                     |   |              |   |   |              |   |   |            |   |   |            |   |   |                   |  
|Weighted Average Number Of Shares    |   |              |   |   |              |   |   |            |   |   |            |   |   |                   |  
|Outstanding  Basic and Diluted      |   | 5,807,000    |   |   | 5,807,000    |   |   | 5,807,000  |   |   | 5,807,000  |   |   |                   |  

The accompanying notes are an integral part of these financial
statements

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|DRIFTWOOD VENTURES, INC.      
|------------------------------
|(An Exploration Stage Company)
|                              
|STATEMENTS OF CASH FLOWS      
|(Unaudited)                   

|                                                 |   |            |   |   |            |   |   | Period from       |  
|------------------------------------------------ | - | ---------- | - | - | ---------- | - | - | ----------------- | -
|                                                 |   | Six months |   |   | Six months |   |   | February 13, 2003 |  
|                                                 |   | ended      |   |   | ended      |   |   | (Inception) to    |  
|                                                 |   | June 30,   |   |   | June 30,   |   |   | March 31,         |  
|                                                 |   | 2007       |   |   | 2006       |   |   | 2007              |  
|                                                 |   |            |   |   |            |   |   |                   |  
|                                                 |   |            |   |   |            |   |   |                   |  
|Cash Flows From Operating Activities             |   |            |   |   |            |   |   |                   |  
|Net loss                                         | $ | (11,463    | ) | $ | (12,185    | ) | $ | (87,485           | )
|Non cash items:                                  |   |            |   |   |            |   |   |                   |  
|Donated management
      services and rent       |   | 4,200      |   |   | 2,100      |   |   | 22,400            |  
|Changes in
      non-cash working capital items: |   |            |   |   |            |   |   |                   |  
|Prepaid expenses                                 |   | -          |   |   | -          |   |   | (10,000           | )
|Accounts payable and accrued liabilities         |   | 5,091      |   |   | (583       | ) |   | 16,412            |  
|Cash Flows Used In Operating Activities          |   | (2,172     | ) |   | (8,568     | ) |   | (58,673           | )
|                                                 |   |            |   |   |            |   |   |                   |  
|Cash Flows From Financing Activities             |   |            |   |   |            |   |   |                   |  
|Bank
      indebtedness                          |   | 7          |   |   | -          |   |   | 7                 |  
|Common shares issued                             |   | -          |   |   | -          |   |   | 28,100            |  
|Due to related
      party                       |   | 401        |   |   | 19,900     |   |   | 30,566            |  
|Cash Flows Provided By Financing Activities      |   | 408        |   |   | 19,900     |   |   | 58,673            |  
|                                                 |   |            |   |   |            |   |   |                   |  
|Increase (Decrease) in Cash                      |   | (1,764     | ) |   | 11,332     |   |   | -                 |  
|                                                 |   |            |   |   |            |   |   |                   |  
|Cash, Beginning                                  |   | 1,764      |   |   | 2,577      |   |   | -                 |  
|                                                 |   |            |   |   |            |   |   |                   |  
|Cash,
      Ending                               | $ | -          |   | $ | 13,909     |   | $ | -                 |  
|                                                 |   |            |   |   |            |   |   |                   |  
|                                                 |   |            |   |   |            |   |   |                   |  
|Supplementary Cash Flow Information              |   |            |   |   |            |   |   |                   |  
|Cash paid for:                                   |   |            |   |   |            |   |   |                   |  
|Interest                                         | $ | -          |   | $ | -          |   | $ | -                 |  
|Income taxes                                     | $ | -          |   | $ | -          |   | $ | -                 |  

The accompanying notes are an integral part of these financial
statements

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|DRIFTWOOD VENTURES, INC.         
|---------------------------------
|(An Exploration Stage Company)   
|                                 
|NOTES TO THE FINANCIAL STATEMENTS
|JUNE 30, 2007                    
|(Unaudited)                      

NOTE 1 - BASIS OF PRESENTATION

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, 2006 included in the Companys Form
10-KSB filed with the Securities and Exchange Commission. The unaudited interim
financial statements should be read in conjunction with those financial
statements included in the Form 10-KSB. 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, 2007 are not necessarily indicative of the results that
may be expected for the year ending December 31, 2007.

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 $87,485 and working capital deficiency of $36,985 at June
30, 2007 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 as a going concern.

NOTE 2 - RELATED PARTY TRANSACTIONS

At June 30, 2007, the Company owed a director $30,567 (December
31, 2006-$30,166) for expenses incurred on behalf of the Company. This amount is
unsecured, non-interest bearing and is repayable on demand.

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 months ended
June 30, 2007 donated services of $1,500 (2006-$1,500) and donated rent expense
of $600 (2006-$600) were charged to operations.

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**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 Hope 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.

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 Hope 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.
However, we will require additional funds to cover all of the anticipated
administrative and planned phase two exploration expenses.

We will require additional funding in order to cover our
administrative costs and to proceed with additional planned phase two
exploration expenses. 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. To date our President, Mr. Steve Chan, loaned us $30,567 to
finance expenses. 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 Hope 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.

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

Results of Operations for the Period Ended June 30, 2007

We did not earn any revenues during the six-month period ended
June 30, 2007. We do not anticipate earning revenues unless we enter into
commercial production on the Hope claim, which is doubtful.

We incurred operating expenses in the amount of $5,262 for the
three-month period ended June 30, 2007. These operating expenses were comprised
of professional fees of $2,860, donated services and rent recorded at $2,100 and
office and sundry expenses of $302.

Our net loss for the three-month period ended June 30, 2007
decreased slightly from the comparative period in fiscal 2006 (2007: $5,262;
2006: $6,940) due to a decrease in business activities.

At June 30, 2007, we had total assets of $10,000 consisting of
$10,000 in prepaid expenses. At the same date, our liabilities consisted bank
indebtedness of $7, accounts payable and accrued liabilities of $16,411 and a
loan payable to our President of $30,566.

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, 2007. This evaluation was conducted by Steven Chan,
our chief executive officer and Keith Smith, our principal accounting officer.

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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, 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

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|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.

August 13, 2007

Driftwood Ventures, Inc.

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

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