|   |                                                                    |                                                                                     |  UNITED STATES                                        |   |                                       |   |
|--------|-------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------|--------|--------------------------------------------|--------|
|   |                                                                    |  SECURITIES AND EXCHANGE COMMISSION                                                 |                                                       |   |
|   |                                                                    |                                                                                     |  Washington, D. C. 20549                              |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |  Form 10-Q                                            |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    | [X] QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |                                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     | For the quarterly period ended June 30, 2008               |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |  or                                                   |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |                                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |  For the transitionperiod from _____ to _____         |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |  Commission File Number: 000-52028                    |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |  Mistral Ventures, Inc.                                                             |                                                       |   |
|   |                                                                    |                                                                                     | (Exact name of registrant as specified in its charter)     |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |   Nevada                                                      |                                                                                     |                                                       |   | 20-2745790                                 |   |
|   |  (State or other jurisdiction of incorporation)                    |                                                                                     |                                                       |   |  (IRS Employer Identification Number) |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   | 7325 Oswego Road                                                        |                                                                                     |                                                       |   |                                       |   |
|   | Liverpool, New York                                                     |                                                                                     |                                                       |   | 13090                                      |   |
|   |    (Address of principal executive offices and Zip Code) |                                                                                     |                                                  |   | (Zip Code)                                 |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |
|   |                                                                    |                                                                                     |  (315) 451-7515                                       |   |                                       |   |
|   |                                                                    |                                                                                     |  (Registrant's telephone number, including area code) |   |                                       |   |
|   |                                                                    |                                                                                     |                                                       |   |                                       |   |

| Large Accelerated Filer                     | [  ] | Accelerated Filer                                                                          | [  ]              |
|---------------------------------------------|----------------|--------------------------------------------------------------------------------------------|-----------------------------|
| Non-accelerated Filer                       | [  ] | Smaller Reporting Company                                                                  | [X]                         |
| (Do not check if smaller reporting company) |           |             Emerging growth company |   [  ]  |

|                                                                                                                                   |  APPLICABLE ONLY TO CORPORATE ISSUERS: |   |
|----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|--------|
|                                                                                                                                   |                                        |   |
|  As of October 30, 201, there were 1,125,000,000 shares of the registrant's $0.001 par value common stock issued and outstanding. |                                        |

----

|  Mistral Ventures, Inc.               |
|--------------------------------------------|
| Form 10-Q                                  |
|                                       |
| For the Fiscal Quarter Ended June 30, 2008 |
|                                       |
| TABLE OF CONTENTS                          |
|                                       |   |   | Page |
|  Part I                          |
|                                       |   |   |   |
|  Item 1                               | Financial Statements |  3 |
|  Item 2                               | Management Discussion and Analysis of Financial Condition and Results of Operations |  12 |
|  Item 3                               | Quantitave and Qualitative Disclosures About Market Risk |  15 |
|  Item 4                               | Controls and Procedures |  15 |
|                                       |   |   |   |
| Part II                                    |
|  Item 1                               | Legal Proceedings |  16 |
|  Item 1A                              | Risk Factors |  16 |
|  Item 2                               | Unregistered Sales of Equity Securities and Use of Proceeds |  16 |
|  Item 3                               | Defaults Upon Senior Securities |  16 |
|  Item 4                               | Mine Safety Disclosures |  16 |
|  Item 5                               | Other Information |  16 |
|  Item 6                               | Exhibits |  17 |
|                                       |   |   |  |
| Signatures                                 |   |   |  18 |

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Table of Content

| PART I - FINANCIAL INFORMATION                   |
|--------------------------------------------------|
|                                             |   |   |   |
|  Item 1                                     | Financial Statements |   |
|                                             |
|   Mistral Venture, Inc.                |
|                                                  |
|                                             |
| Financial Statements                             |
|  For the Fiscal Quarter Ended June 30, 2008 |
|                                             |
| TABLE OF CONTENTS                                |
|                                             |
|                                             |   |  Page |
| Balance Sheets (unaudited)                       | F-1 |
| Statements of Operations (unaudited)             | F-2 |
| Statements of Cash Flows (unaudited)             | F-3 |
| Notes to the Financial Statements (unaudited)    | F-4 |
|                                             |   |   |   |
|                                             |   |   |   |
| F-1                               |

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Table of Content

| Mistral Ventures, Inc.                                                                  |   |        |       |   |         |   |
|-----------------------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
| Balance Sheets                                                                          |   |        |       |   |         |   |
| (Expressed in U.S. Dollars)                                                             |   |        |       |   |         |   |
| (Unaudited)                                                                             |   |        |       |   |         |   |
|                                                                                    |   |        |       |   |         |   |
|                                                                                    |   | June 30,    |       |   | December 31, |   |
|                                                                                    |   | 2008        |       |   | 2007         |   |
|                                                                                    |   | (Unaudited) |       |   |         |   |
|                                                                                    |   |        |       |   |         |   |
| ASSETS                                                                                  |   |        |       |   |         |   |
|                                                                                    |   |        |       |   |         |   |
| Current Assets                                                                          |   |        |       |   |         |   |
| Cash and cash equivalents                                                               |   | $           | -          |   |         | $      | 7,684 |   |
| Loans receivable (Note 4)                                                               |   |        | -          |   |         |   | 101,233 |   |
| Prepaid expenses                                                                        |   |        | -          |   |         |   | - |   |
|                                                                                    |   |        |       |   |         |   |   |   |
| Total assets                                                                            |   | $           | -          |   |         | $      | 108,917 |   |
|                                                                                    |   |        |       |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                    |   |        |       |   |         |   |   |   |
|                                                                                    |   |        |       |   |         |   |   |   |
| Current Liabilities                                                                     |   |        |       |   |         |   |   |   |
| Accounts payable and accrued liabilities (Note 5)                                       |   | $           | 15,221     |   |         | $      | 20,916 |   |
| Due to related party (Note 6)                                                           |   |        | 2,500      |   |         |   | 2,500 |   |
| Loans payable (Note 8)                                                                  |   |        | 158,284    |   |         |   | 101,233 |   |
| Total current liabilities                                                               |   |        | 176,005    |   |         |   | 124,649 |   |
|                                                                                    |   |        |       |   |         |   |   |   |
| Stockholders' Equity                                                                    |   |        |       |   |         |   |   |   |
| Capital stock (Note 9)                                                                  |   |        |       |   |         |   |   |   |
| Authorized                                                                              |   |        |       |   |         |   |   |   |
| 1,125,000,000 common shares, par value $0.001                                           |   |        |       |   |         |   |   |   |
| Issued and outstanding                                                                  |   |        |       |   |         |   |   |   |
| June 30, 2008 – 42,350,000 common shares, par value $0.001                        |   |        | 42,450     |   |         |   |   |   |
| December 31, 2007 – 40,350,000 common shares, par value $0.001                    |   |        |       |   |         |   | 40,350 |   |
| Additional paid-in capital                                                              |   |        | 1,088,050  |   |         |   | 38,150 |   |
| Share subscriptions received in advance (Note 9)                                   |   |        | -          |   |         |   | 1,000,000 |   |
| Accumulated deficit                                                                     |   |        | (1,306,505 | )      |         |   | (1,094,232 | ) |
| Total stockholders' equity                                                              |   |        | (176,005   | )      |         |   | (15,732 | ) |
|                                                                                    |   |        |       |   |         |   |   |   |
| Total liabilties and stockholders' equity                                               |   | $           | -          |   |         | $      | 108,917 |   |
|                                                                                    |   |        |       |   |         |   |   |   |
|                                                                                    |   |        |       |   |         |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |        |       |   |         |

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Table of Content

| Mistral Ventures, Inc.                                                                  |   |                       |       |   |                     |   |       |   |   |   |       |   |
|-----------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|------------|--------|--------|--------|------------|--------|
| Consolidated Statements of Operations                                                   |   |                       |       |   |                     |   |       |   |   |   |       |   |
| (Expressed in U.S. Dollars)                                                             |   |                       |       |   |                     |   |       |   |   |   |       |   |
| (Unaudited)                                                                             |   |                       |       |   |                     |   |       |   |   |   |       |   |
|                                                                                    |   |                       |       |   |                     |   |       |   |   |   |       |   |
|                                                                          |   | For the Three Months Ended |       |   | For the Six Months Ended |   |
|                                                                                    |   | June 30,                   |       |   | June 30,                 |   |
|                                                                                    |   | 2008                       |       |   | 2007                     |   |       | 2008   |   |   | 2007       |   |
|                                                                                    |   |                       |       |   |                     |   |       |   |   |   |       |   |
| Expenses:                                                                               |   |                       |       |   |                     |   |       |   |   |   |       |   |
| Legal and accounting                                                                    |   |                       | 8,164      |   |                     |   | 6,643      |   |   |   | 26,074     |   |   |   | 11,883 |   |
| Listing and filing fees                                                                 |   |                       | -          |   |                     |   | 1,392      |   |   |   | 340        |   |   |   | 1,804 |   |
| Management fees (Notes 7, 9 and 12)                                                     |   |                       | -          |   |                     |   | 1,700      |   |   |   | 1,700      |   |   |   | 5,900 |   |
| Office and miscellaneous                                                                |   |                       | 25,080     |   |                     |   | 950        |   |   |   | 25,080     |   |   |   | 950 |   |
|  Rent                                                                              |   |                       | -          |   |                     |   | 300        |   |   |   | 300        |   |   |   | 600 |   |
| Transfer agent fees                                                                     |   |                       | -          |   |                     |   | 815        |   |   |   | 495        |   |   |   | 815 |   |
| Total operating expenses                                                                |   |                       | 33,244     |   |                     |   | 11,800     |   |   |   | 53,989     |   |   |   | 21,952 |   |
|                                                                                    |   |                       |       |   |                     |   |       |   |   |   |       |   |   |   |   |   |
| Loss from operations                                                                    |   |                       | (33,244    | )      |                     |   | (11,800    | )      |   |   | (53,989    | )      |   |   | (21,952 | ) |
|                                                                                    |   |                       |       |   |                     |   |       |   |   |   |       |   |   |   |   |   |
| Other income (expense)                                                                  |   |                       |       |   |                     |   |       |   |   |   |       |   |   |   |   |   |
| Interest income                                                                         |   |                       | 28,125     |   |                     |   | -          |   |   |   | 55,734     |   |   |   | - |   |
| Interest expense                                                                        |   |                       | -          |   |                     |   | -          |   |   |   | (7,051     | )      |   |   | - |   |
| Provision for write-down of loans receivable                                            |   |                       |       |   |                     |   |       |   |   |   |       |   |   |
|   (Notes 4, 11 and 13)                                                        |   |                       | (182,659   | )      |                     |   | -          |   |   |   | (206,967   | )      |   |   | - |   |
| Total other income (expense)                                                            |   |                       | (154,534   | )      |                     |   | -          |   |   |   | (158,284   | )      |   |   | - |   |
|                                                                                    |   |                       |       |   |                     |   |       |   |   |   |       |   |   |   |   |   |
| Net loss                                                                                |   | $                          | (187,778   | )      |                     | $      | (11,800    | )      |   | $      | (212,273   | )      |   | $ | (21,952 | ) |
|                                                                                    |   |                       |       |   |                     |   |       |   |   |   |       |   |   |   |   |   |
| Net loss per share (basic and diluted)                                                  |   | $                          | (0.00      | )      |                     | $      | (0.00      | )      |   | $      | (0.01      | )      |   | $ | (0.00 | ) |
|                                                                                    |   |                       |       |   |                     |   |       |   |   |   |       |   |   |   |   |   |
| Weighted average shares outstanding                                                     |   |                       | 42,424,725 |   |                     |   | 16,140,000 |   |   |   | 41,387,363 |   |   |   | 17,495,470 |   |
|                                                                                    |   |                       |       |   |                     |   |       |   |   |   |       |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |                       |       |   |                     |

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Table of Content

| Mistral Ventures, Inc.                                                                  |   |                     |      |   |   |   |
|-----------------------------------------------------------------------------------------|--------|--------------------------|-----------|--------|--------|--------|
| Consolidated Statements of Cash Flows                                                   |   |                     |      |   |   |   |
| (Expressed in U.S. Dollars)                                                             |   |                     |      |   |   |   |
| (Unaudited)                                                                             |   |                     |      |   |   |   |
|                                                                                    |   |                     |      |   |   |   |
|                                                                          |   | For the Six Months Ended |      |
|                                                                                    |   | June 30,                 |      |
|                                                                                    |   | 2008                     |      |   | 2007   |   |
|                                                                                    |   |                     |      |   |   |   |
| CASH FLOWS FROM OPERATING ACTVITIES:                                                    |   |                     |      |   |   |   |
|                                                                                    |   |                     |      |   |   |   |
| Net loss                                                                                |   | $                        | (212,273  | )      |   | $      | (21,952 | ) |
| Adjustments to reconcile net loss to net                                                |   |                     |      |   |   |   |   |   |
| loss from operating activities                                                          |   |                     |      |   |   |   |   |   |
| Accrued interest receivable                                                             |   |                     | (55,734   | )      |   |   | - |   |
| Accrued interest payable                                                                |   |                     | 7,051     |   |   |   | - |   |
| Contributions to capital by related party – expenses                         |   |                     | 2,000     |   |   |   | 4,500 |   |
| Provision for write-down of loans receivable                                            |   |                     | 206,967   |   |   |   | - |   |
| Changes in operating assets and liabilities                                             |   |                     |      |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                |   |                     | (5,695    | )      |   |   | 4,124 |   |
|                                                                                    |   |                     |      |   |   |   |   |   |
| Net Cash Used in Operating Activities                                                   |   |                     | (57,684   | )      |   |   | (13,328 | ) |
|                                                                                    |   |                     |      |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTVITIES:                                                    |   |                     |      |   |   |   |   |   |
| Proceeds from loans payable                                                             |   |                     | 1,000,000 |   |   |   | (58,000 | ) |
| Share subscription received in advance                                                  |   |                     | (950,000  | )      |   |   | - |   |
| Increase in loans payable                                                               |   |                     | 50,000    |   |   |   | - |   |
| Increase in loans receivable                                                            |   |                     | (50,000   | )      |   |   | - |   |
|                                                                                    |   |                     |      |   |   |   |   |   |
| Net Cash Provided by (Used in) Financing Activities                                     |   |                     | 50,000    |   |   |   | (58,000 | ) |
|                                                                                    |   |                     |      |   |   |   |   |   |
| Increase (decrease) in cash                                                             |   |                     | (7,684    | )      |   |   | (71,328 | ) |
|                                                                                    |   |                     |      |   |   |   |   |   |
| Cash, beginning of period                                                               |   |                     | 7,684     |   |   |   | 77,624 |   |
|                                                                                    |   |                     |      |   |   |   |   |   |
| Cash, end of period                                                                     |   |                     | -         |   |   |   | 6,296 |   |
|                                                                                    |   |                     |      |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES (SEE NOTE 12)                                                  |   |                     |      |   |   |   |   |   |
|                                                                                    |   |                     |      |   |   |   |   |   |
|                                                                                    |   |                     |      |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

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Table of Content

| 1. | Nature and Continuance of Operations |
|----|--------------------------------------|

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Table of Content

| 1. | Nature and Continuance of Operations (continued) |
|----|--------------------------------------------------|

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Table of Content

| 2. | Significant Accounting Policies |
|----|---------------------------------|

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Table of Content

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

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Table of Content

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

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Table of Content

|  2. | Significant Accounting Policies (continued) |
|----------|---------------------------------------------|
| 3. | Mineral Property |
|----|------------------|

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Table of Content

| 4.       |   | Loans Receivable                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |       |
|----------|--------|------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|
|     |   |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | At June 30, 2008 |       |   | At December 31, 2007 |   |
|     |   |                                     | The loan receivable bearing interest at a rate of 10% per annum on any unpaid principle balance, secured by a general charge on the assets of the payee and was repayable in full on  December 31, 2007. The balance of $1,049,779 outstanding at June 30, 2008 (December 31, 2007 - $1,001,096) consists of principle $975,000 and unpaid accrued interest of $74,779 (December 31, 2007 – $26,096). On September 7, 2007, the Company entered into a bridge loan agreement with CypherEdge Technologies Inc. (the "borrower"). Under the terms of this loan agreement, the Company is committed to lending principal of up to $1,000,000 at the option of the borrower (Notes 11 and 13). This loan receivable has not been repaid and is presently in default. |   | $                | 1,049,779  |   |   | $ | 1,001,096 |   |
|     |   |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |       |   |   |   |   |   |
|     |   |                                     | Loan receivable bearing interest at a rate of 10% per annum on any unpaid principal balance, unsecured, and was repayable in full on or before February 1, 2009. The balance of $158,284 at June 30, 2008 (December 31, 2007 - $101,233) consists of principle of $150,000 and unpaid accrued interest of $8,284 (December 31, 2007 - $1,233). On November 16, 2007, the Company entered into a loan agreement with Trustcash Holdings Ltd., which was amended on February 1, 2008 to reflect an amended total principal balance of $150,000 and a repayable date of February 1, 2009.  This loan receivable has not been repaid and is presently in default.                                                                                                           |   |             | 158,284    |   |   |   | 101,233 |   |
|     |   |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             | 1,208,063  |   |   |   | 1,102,329 |   |
|     |   |                                     | Provision for write-down of loans receivable (Notes 11 and13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |             | (1,208,063 | ) |   |   | (1,001,096 | ) |
|     |   |                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                | -          |   |   | $ | 101,233 |   |
|  5. |   | Accounts Payable and Accrued Liabilities |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |             |       |   |
| 6. | Due to Related Party |
|----|----------------------|

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Table of Content

| 7. | Related Party Transactions |
|----|----------------------------|
| 8. | Loans Payable |
|----|---------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | At March 31, 2008 |    |   | At December 31, 2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|----------------------|--------|
| Loan payable bearing interest at a rate of 10% per annum on any unpaid principal balance, unsecured and was due and payable in full on or before February 1, 2009. The balance of $158,284 at March 31, 2008 (December 31, 2007 - $101,233) consists of principal of $150,000 and unpaid accrued interest of $8,284 (December 31, 2007 - $1,233). On November 16, 2007, the Company entered into a loan agreement with Ludwig Holdings Ltd., which was amended on February 1,  2008 to reflect an amended total principal balance of $150,000 and a repayable date of February 1, 2009. This loan payable has not been repaid and is presently in default. |   | $                 | 154,534 |   |                 | $      | 101,233 |   |
| 9.  | Capital Stock |
|----------|---------------|

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Table of Content

| 9.           | Capital Stock (continued) Issued and outstanding The total issued and outstanding capital stock is 42,450,000 common shares with a par value of $0.001 per common share.   |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | i.                                                                                                                                                                                                  | During the six month period ended June 30, 2008, an officer, director and shareholder of the Company made contributions to capital by the payment of the Company's expenses (Note 7). |
|   | ii. | On June 30,  2008, 2,000,000 shares of the Company were issued for cash proceeds of $1,000,000. The cash proceeds for this share issuance were received on September 4, 2007. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | iii. | On April 23, 2008, the Company issued 100,000 common shares of the Company for total proceeds of $50,000 ($0.50 per common share). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------|
|     |   | Exercise price |   |   | Numberof warrants |   |      | Remainingcontractual life (years) |   |
|----------|--------|----------------|--------|--------|-------------------|--------|-----------|-----------------------------------|--------|
|     |   |           |   |   |              |   |      | $                                 |   |   |
|     |   |           |   |   |              |   |      |                              |   |   |
| Warrants |   |           | 0.04   |   |              |   | 5,400,000 |                              |   |   | 0.55 |   |

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Table of Content

| 9. | Capital Stock (continued) |
|----|---------------------------|
|                                                              |   | Number of warrants |      |   | Weighted average exercise price |   |
|-------------------------------------------------------------------|--------|--------------------|-----------|--------|---------------------------------|--------|
|                                                              |   |               |      |   | $                               |   |   |
|                                                              |   |               |      |   |                            |   |   |
| Outstanding and exercisable at January 1, 2008                    |   |               | 5,400,000 |   |                            |   | 0.04 |   |
|                                                              |   |               |      |   |                            |   |   |   |
| Granted                                                           |   |               | -         |   |                            |   | - |   |
| Exercised                                                         |   |               | -         |   |                            |   | - |   |
| Expired                                                           |   |               | -         |   |                            |   | - |   |
| Rescinded                                                         |   |               | -         |   |                            |   | - |   |
|                                                              |   |               |      |   |                            |   |   |   |
| Outstanding and exercisable at June 30, 2008                      |   |               | 5,400,000 |   |                            |   | 0.04 |   |
|                                                              |   |               |      |   |                            |   |   |   |
| Weighted average fair value of warrants granted during the period |   |               |      |   |                            |   | - |   |
|               |   | For the six month period ended June 30,2008 |   |   | For the six month period ended June 30,2007 |    |
|-------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------------|---------|
|                    |   |                                        |   |   |                                        |    |
| Risk free interest rate |   |                                        | -      |   |                                        |    | 4.81 | % |
| Expected life           |   |                                        | -      |   |                                        | 2 years |   |
| Annualized volatility   |   |                                        | -      |   |                                        |    | 101 | % |
| Expected dividends      |   |                                        | -      |   |                                        |    | 0 | % |

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| 10. | Income Taxes |
|-----|--------------|
|                                                       |   | For the six month period ended June 30,2008 |    |   | For the six month period ended June 30,2007 |   |
|------------------------------------------------------------|--------|---------------------------------------------|---------|--------|---------------------------------------------|--------|
|                                                       |   | $                                           |    |   |                                        | $      |   |   |
|                                                       |   |                                        |    |   |                                        |   |   |   |
| Deferred tax asset attributable to:                        |   |                                        |    |   |                                        |   |   |   |
| Current operations                                         |   |                                        | 72,173  |   |                                        |   | 7,464 |   |
| Contributions to capital by related party – expenses |   |                                        | (680    | )      |                                        |   | (680 | ) |
| Stock based compensation                                   |   |                                        | -       |   |                                        |   | (850 | ) |
| Less: Change in valuation allowance                        |   |                                        | (71,493 | )      |                                        |   | (5,934 | ) |
|                                                       |   |                                        |    |   |                                        |   |   |   |
| Net refundable amount                                      |   |                                        | -       |   |                                        |   | - |   |
|                                        |   | June 30, 2008 |       |   | December 31, 2007 |   |
|---------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                        |   | $             |       |   |              | $      |   |   |
|                                        |   |          |       |   |              |   |   |   |
| Net income tax operating loss carry forward |   |          | (1,094,557 | )      |              |   | (1,094,232 | ) |
|                                        |   |          |       |   |              |   |   |   |
| Statutory federal income tax rate           |   |          | 34         | %      |              |   | 34 | % |
| Effective income tax rate                   |   |          | 0          | %      |              |   | 0 | % |
|                                        |   |          |       |   |              |   |   |   |
| Deferred tax assets                         |   |          | 444,212    |   |              |   | 372,039 |   |
| Less: Valuation allowance                   |   |          | (444,212   | )      |              |   | (372,039 | ) |
|                                        |   |          |       |   |              |   |   |   |
| Net deferred tax asset                      |   |          | -          |   |              |   | - |   |

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Table of Content

| 10. | Income Taxes (continued) |
|-----|--------------------------|
| 11. | Commitments |
|-----|-------------|
|   | i. | On September 7, 2007, the Company entered into a purchase agreement with CypherEdge Technologies, Inc. ("CypherEdge"), whereby the Company has the right to acquire all of the issued and outstanding common shares of CypherEdge in consideration for the issuance of 83,000,000 common shares of the Company to the stockholders of CypherEdge. Under the terms of the purchase agreement, the closing of the acquisition was to take place no later than  December 31, 2007. This transaction was not completed by December 31, 2007 (Note 11(ii)). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ii. | On September 7, 2007, the Company entered into a bridge loan agreement with CypherEdge whereby the Company is to provide a bridging loan of up to $1,000,000 to CypherEdge repayable in full by December 31, 2007. At December 31, 2007, the Company had advanced $975,000 related to this loan agreement and the required repayment of the full amount of the loan had not been completed. The Company has recorded a provision for write-down of $1,049,779 on this loan receivable (principle $975,000 and accrued interest $74,779) and is pursuing all legal remedies available to the Company to obtain repayment (Notes 4 and 13). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12. | Supplemental Disclosures with Respect to Cash Flows |
|-----|-----------------------------------------------------|
|                                       |   | For the six month period ended June 30, 2008 |   |   | For the six month period ended June 30, 2007 |   |
|--------------------------------------------|--------|----------------------------------------------|--------|--------|----------------------------------------------|--------|
|                                       |   | $                                            |   |   |                                         | $      |   |   |
|                                       |   |                                         |   |   |                                         |   |   |   |
| Cash paid during the year for interest     |   |                                         | -      |   |                                         |   | - |   |
| Cash paid during the year for income taxes |   |                                         | -      |   |                                         |   | - |   |

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| 13. | Contingency |
|-----|-------------|
| 14. | Subsequent Event |
|-----|------------------|

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Table of Content

|  ITEM 2.    | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION. |
|---------------------------------|-----------------------------------------------------------------------------------|

|                                            | June 30, |   | December 31, |   |
|-------------------------------------------------|----------|--------|--------------|--------|
|                                            | 2008     |   | 2007         |   |
|                                            |     |   |         |   |
|  Current Assets             |     | $      | -            |   |   | $ | 108,917 |   |
|  Current Liabilities                  |     |   | 176,005      |   |   |   | 124,649 |  |
|  Working Capital (Deficit)  |     |   | (176,500     | )      |   |   | (15,732 | ) |

|                                                 | Jine 30, |   | June 30, |    |
|------------------------------------------------------|----------|--------|----------|---------|
|                                                 | 2008     |   | 2007     |    |
|                                                 |     |   |     |    |
|  Cash Flows from (used in) Operating Activities |     | $      | (57,684  | )  |   | $ | (13,328 | ) |
|  Cash Flows from Investing Activities           |     |   | -        |    |   |   | - |  |
|  Cash Flows from (used in) Financing Activities |     |   | 50,000   |    |   |   | (58,000 | ) |
|  Net Increase (decrease) in Cash During Period  |     |   | (7,681   | )  |   |   | (71,328 | ) |

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|  | Operating Revenues |
|--|--------------------|

|  | Operating Expenses and Net Loss |
|--|---------------------------------|

|  | Liquidity and Capital Resources |
|--|---------------------------------|

|  | Cashflow from Operating Activities |
|--|------------------------------------|

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|  | Cashflow from Financing Activities |
|--|------------------------------------|

|  | During the six months ended June 30, 2008 the Company provided $50,000 from financing activities as compared to using ($58,000) for the six months ended June 30, 2007.  |
|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Subsequent Developments |
|--|-------------------------|

|  | Going Concern |
|--|---------------|

|  | Off-Balance Sheet Arrangements |
|--|--------------------------------|

|  | Future Financings |
|--|-------------------|

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|  ITEM 3.    | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
|---------------------------------|-------------------------------------------------------------|

|  ITEM 4.    | CONTROLS AND PROCEDURES |
|---------------------------------|-------------------------|

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|  ITEM 1.    | LEGAL PROCEEDINGS |
|---------------------------------|-------------------|

|  ITEM 1A.    | RISK FACTORS |
|----------------------------------|--------------|

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

|  ITEM 3.    | DEFAULTS UPON SENIOR SECURITIES. |
|---------------------------------|----------------------------------|

|  ITEM 4.    | MINE SAFETY DISCLOSURE. |
|---------------------------------|-------------------------|

|  ITEM 5.    | OTHER INFORMATION. |
|---------------------------------|--------------------|

|  | None |
|--|------|

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|  ITEM 6.    | EXHIBITS |
|---------------------------------|----------|

| Exhibit Number             |                                                                                                                            |  Form |  Date |  Number |  Filed Herewith |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------|------------|------------|--------------|----------------------|
|                       |                                                                                                                            |       |       |         |                 |
| 31.1                       |     Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  |       |       |         | X                    |
| 31.2                       |     Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002  |       |       |         | X                    |
| 32.1                       |     Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |       |       |         | X                    |
| 32.2                       | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                         |       |       |         | X                    |
|                       |                                                                                                                            |       |       |         |                 |
|  101.INS              |     XBRL Instance Document.                                                                                      |       |       |         |  X              |
|  101.SCH              |     XBRL Taxonomy Extension – Schema.                                                                 |       |       |         |   X        |
|  101.CAL    |     XBRL Taxonomy Extension – Calculations.                                                                |       |       |         |   X        |
|  101.LAB         |     XBRL Taxonomy Extension – Labels.                                                                      |       |       |         |   X        |
|  101.PRE         |     XBRL Taxonomy Extension – Presentation.                                                                |       |       |         |   X        |
|  101.DEF              |     XBRL Taxonomy Extension – Definition.                                                             |       |       |         |   X        |
|                       |                                                                                                                            |       |       |         |                 |
|                       |                                                                                                                            |       |       |         |                 |
|  Reports on Form 8-K: |                                                                                                                            |       |       |         |
|                       |                                                                                                                            |            |            |              |                 |
|                            |                                                                                                                                 |            |            |              |                 |
|                       |                                                                                                                            |       |       |         |                 |

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|   |  **MISTRAL VENTURES, INC.** |
|--------|----------------------------------|
|   |  (the "Registrant")         |
|   |                             |   |
|   |  BY:              |  /s/JOSEPH C. PASSALAQUA |
|   |                             |  Joseph C. Passalaqua |
|   |                             |  President, Principal Executive Officer, |
|   |                             |   |